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31.07.2019 – 07:00

Atrium European Real Estate Limited

EANS-News: Atrium European Real Estate Limited
First Half 2019 trading update: Continuing growth of urban portfolio in capital cities

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  Corporate news transmitted by euro adhoc with the aim of a Europe-wide
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Earnings

St Helier Jersey / Channel Islands -

                         First Half 2019 trading update
             Continuing growth of urban portfolio in capital cities

Jersey, 31 July 2019, Atrium European Real Estate Limited (VSE/Euronext: ATRS),
(the "Company" and together with its subsidiaries, the "Atrium Group" or the
"Group"), a leading owner, operator and redeveloper of shopping centres and
retail real estate in Central Europe, provides an update on trading for the six
months ended 30 June 2019.

KEY FINANCIAL FIGURES FOR THE PERIOD

                                6M 2019             6M 2018               CHANGE
                                   EURm                EURm
Net rental income                  74.6                71.7                 4.0%
excl. Russia
EPRA Like-for-Like
net rental income                  40.5                39.9                 1.5%
excl. Russia
Net rental income                  92.4                91.8                 0.6%
EPRA Like-for-Like                 51.5                51.2                 0.5%
net rental income
EBITDA                             81.0                80.9                 0.2%
Company adj. EPRA
earnings per share                 15.4                15.6               (1.2%)
(in EURcents)
Cost of financing                   3.1                 3.4
(in %)
Average debt                        4.9                 4.2
maturity (in years)
Net LTV (in %)                     39.3                33.5


Highlights

* Continued progress in executing the Group's strategy to focus the portfolio
  towards prime shopping centres in Warsaw and Prague:
  - In July 2019 we completed the sale of two Polish shopping centres, Atrium
  Koszalin, in Koszalin and Atrium Felicity, in Lublin, for EUR298m or around 3%
  above book value, and signed an agreement to sell Atrium Duben in Zilina,
  Slovakia at book value (EUR37m)
  - Acquisition of Atrium's fifth Warsaw asset, King Cross shopping centre, for
  EUR43m in June 2019. A well-connected and established centre with a diverse
  tenant mix and future redevelopment opportunities
  - Monetised 13% of our land bank in January 2019 with the completion of a
  EUR28m land disposal in Gdansk, Poland at around book value
* 1.5% improvement in EPRA like-for-like net rental income ("NRI") excluding
  Russia, or 0.5% growth across the whole portfolio
* LFL NRI in Russia decreased by 2.7%, mainly as a result of specific tenants
  exiting the Russian market and subsequent re-tenanting initiatives
* Higher quality cash flow generated from acquisitions and the opening of three
  extensions in Warsaw in Q4 2018, offsetting the impact of disposals, including
  the strategic exit from Hungary and Romania
* Strong occupancy and operating margin of 95.2% and 95.8%, respectively
* EBITDA and EBITDA margin stable at EUR81m and 88%
* Company adjusted EPRA earnings per share was 15.4 EURcents, 1.2% lower than in
  the comparable period, driven by an increase in financing costs due to a
  higher debt level
* EPRA NAV per share EUR5.05, a 0.4% increase on year end 2018
* Net LTV was 39.3% as at 30 June 2019, which is expected to decrease to
  approximately 34% following the disposal of Atrium Koszalin and Atrium
  Felicity
* EUR189m of cash and EUR300m of RCF available as at 29 July 2019


Liad Barzilai, Chief Executive Officer of Atrium Group, commented:
"The first half of 2019 has been yet another successful period where we have
undertaken effective capital recycling and are seeing the true benefits of the
refurbishments, particularly in our Warsaw assets. Our management focus remains
on the continued implementation of our strategy and the delivery of positive
operational results."

Recommended cash acquisition by Gazit-Globe Ltd. ("Gazit")

* The Independent Committee of the Board of Directors of the Company and the
  Board of directors of Nb (2019) B.V. ("Bidco"), which is an indirect wholly-
  owned subsidiary of Gazit, on 23 July 2019 announced that they have reached an
  agreement on the terms and conditions of a recommended cash acquisition (the
  "Acquisition") of the entire issued and to be issued ordinary share capital of
  the Company that is not already owned directly or indirectly by Gazit or its
  affiliates (including, in particular, Gazit Gaia Limited ("Gaia") or Gazit
  Midas Limited ("Midas")). It is intended that the Acquisition will be
  implemented by means of a court-sanctioned scheme of arrangement under Article
  125 of the Jersey Companies Law. At the date of the Announcement, Gazit and
  its affiliates Gaia and Midas together owned approximately 60.1% of the
  Company's issued share capital.
* In connection with the Acquisition, the Independent Committee of the Board of
  Directors has agreed to stop dividend payments by the Company as Gazit's offer
  assumes that no further regular dividends will be paid until the completion of
  the transaction which is scheduled for 02 January 2020.
* The announcement (and other reference materials) can be found on the Company's
  website at https://www.aere.com/investors-lobby.aspx [https://www.aere.com/
  investors-lobby.aspx] and questions related to it can also be submitted in
  writing to ol-renoir-ubs@ubs.com

  Further information can be found on the Company's website www.aere.com or for
  Analysts:
  Molly Katz: mkatz@aere.com

  Press & Shareholders:
  FTI Consulting Inc.: +44 (0)20 3727 1000
  Richard Sunderland/Claire Turvey: atrium@fticonsulting.com

  About Atrium European Real Estate
  Atrium is a leading owner, operator and redeveloper of shopping centres and
  retail real estate in Central Europe. Atrium specializes in locally dominant
  food, fashion and entertainment shopping centres in the best urban locations.
  Atrium owns 32 properties with a total gross leasable area of over 870,000 sqm
  and with a total market value of approximately EUR2.7 billion. These
  properties are located in Poland, the Czech Republic, Slovakia and Russia, and
  with the exception of one, are all managed by Atrium's internal team of retail
  real estate professionals.


  The Company is established as a closed-end investment company incorporated and
  domiciled in Jersey and regulated by the Jersey Financial Services Commission
  as a certified Jersey listed fund, and is listed on both the Vienna Stock
  Exchange and the Euronext Amsterdam Stock Exchange. Appropriate professional
  advice should be sought in the case of any uncertainty as to the scope of the
  regulatory requirements that apply by reason of the above regulation and
  listings. All investments are subject to risk. Past performance is no
  guarantee of future returns. The value of investments may fluctuate. Results
  achieved in the past are no guarantee of future results.






Further inquiry note:
For further information:
FTI Consulting Inc.:
+44 (0)20 3727 1000
Richard Sunderland
Claire Turvey
Richard.sunderland@fticonsulting.com

end of announcement                         euro adhoc
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issuer:       Atrium European Real Estate Limited
              Seaton Place 11-15
              UK-JE4 0QH  St Helier Jersey / Channel Islands 
phone:        +44 (0)20 7831 3113
FAX:          
mail:      richard.sunderland@fticonsulting.com
WWW:       http://www.aere.com
ISIN:         JE00B3DCF752
indexes:      
stockmarkets: Luxembourg Stock Exchange, Wien
language:     English
 

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