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St Helier Jersey / Channel Islands – Trading Update for the first nine months of 2020
Jersey, November 6, 2020, 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 developer of shopping centers and Retail Real Estate in Central Europe, announces results for the first nine months ending September 30, 2020 and an updated overview of the impact of Covid-19 on the Group’s operations.
Update on the COVID-19 situation
The encouraging upswing that began in the third quarter is losing momentum due to the second wave of restrictions
Our centers saw a solid rebound over the summer, trending towards pre-Covid-19 levels when restrictions were lifted starting in May. NOur tenant visitor numbers and sales showed an encouraging recovery in August, reaching 77 % and 93% of the 2019 level, respectively. In September, when the number of infections increased in Poland, the Czech Republic and Slovakia, the number of visitors and sales decreased slightly to 76% and 86% respectively and this downward trend has continued since Governments reintroduced restrictions in response to the increasing Covid-19 cases. nThe collection of rent claims in the first nine months of 2020 improved significantly to 94%, with negotiations with tenants almost complete. nAfter the new lockdowns in the Czech Republic and Slovakia, 90% of the Group’s gross rental space is currently open, compared to 98% at the beginning October. nPoland announced a second package of measures on November 4th, in which all non-essential transactions are to be closed from November 7th to 29th. nSolid financial position to cover our liquidity needs
Sufficient liquidity and financial flexibility to manage the challenges of the Covid-19 pandemic, with EUR 264 million in uncommitted funds, consisting of EUR 50 million in cash and an unused credit facility of EUR 214 million as of today, and a net LTV of 37.5%. nThe most important measures that have been taken to maintain and improve liquidity include: no Extending the average maturity of the Group’s liabilities to 4.8 years (2.9% of the average cost of debt) by the successful completion of a bond buyback of EUR 218 million and the increase in bonds due in 2025 by EUR 200 million in June. An additional buyback of the bonds due in 2022 in the amount of EUR 8 million was carried out in October. o The voluntary scrip dividend alternative implemented for the 2nd, 3rd and 4th quarters of 2020 has so far led to a saving of EUR 21 million in liquid funds, after around 40% of the shareholders used their option in the 2nd and 3rd quarter of 2020 Have made use of it. o Implementation of a Euro Medium Term Note program together with a Green Financing Framework, with potential suitability for the Corporate Sector Purchase Program (CSSP) of the ECB.
Key financial figures for the reporting period
In millions of EUR 9M 2020 9M 2019 Change% / ppt Net rental income (“NRI”) 106.5 133.4 (20.1) Net rental income excluding effects of 117.9 133.4 (11.6) sales Net rental income on a comparable basis after 75 , 9 87.4 (13.1) EPRA receipt rate (%) 92.9% 97.0% [#_ftn1] (4.1) Operating return on sales (%) 90.0% 94.6% (4.6) EBITDA 91.9 116.8 (21.3) Adjusted earnings according to EPRA of 56.3 80.5 (30.0 ) Society
* The Group’s net rental income for the first nine months of 2020 was EUR 107 million, a decrease of -20% or EUR 26 million compared to 2019 due to the following circumstances:
o EUR 35 million due to Covid-19 effects which were offset by EUR 18 million in direct support services for tenants [#_ftn2]
o EUR 11 million due to sales as part of the portfolio rotation strategy o Compensated by rent increases of EUR 2 million, which result mainly from indexation
On a comparable basis, the net rental income fell by 13%. NProactive discussion with our tenants ensures a stable occupancy rate of around 93% as of the end of September. NOperating return on sales fell by 4.6ppt to 90%, of which 4.4ppt was due to the exemption of Operating costs for the period of government lockdown in Poland. NEBITDA and Adjusted Revenue according to EPRA decreased by 21% and 30%, respectively. The decline in rental income due to the Covid 19 pandemic (EUR 17 million net) and disposals (EUR 11 million) was partially offset by a EUR 1.5 million reduction in administrative costs and a EUR 0.9 million decrease in financial expenses. nDivests
* The group continued its portfolio rotation and repositioning strategy in 2020 with transactions totaling EUR 75 million. These included the sale of the Atrium Duben shopping center in Slovakia in January and five assets in Poland in July and a plot of land in Lublin in August.
The dividend for the fourth quarter of 2020 will be paid out (as a capital repayment) on December 30, 2020 to the shareholders entered in the register on December 8, 2020, with the ex-dividend date on December 7, 2020. The period for claiming the scrip dividend begins on December 9, 2020 and ends on December 21, 2020. nA circular with further details on shareholders’ options under the scrip dividend alternative, including the exercise modalities and the exchange ratio, will be made available to shareholders before the beginning of the exercise period and will be sent to The company’s website. n2021 Dividend Policy: Since the beginning of the pandemic, Atrium has focused increasingly on strengthening its balance sheet and improving liquidity by implementing a liquidity preservation program. The latest legally implemented trade restrictions and lockdowns have added further uncertainty regarding short-term trading conditions. As a result, the Board has decided to postpone a decision on dividend policy for 2021 until the 2020 results are announced in February 2021. nLiad Barzilai, Chief Executive Officer of the Atrium Group: “With the phasing out of the Covid-19-related measures for Protecting Health In early May, we saw positive momentum in visitor numbers and retail sales throughout the summer, bringing the third quarter closer to historic levels of 2019. The recent rise in the number of Covid-19 cases, however, has resulted in further government restrictions and we are starting to see this momentum slowing in Q3. While the future impact of Covid-19 remains uncertain, I am given the strong performance and pace of society’s recovery during the summer as well as ours We are confident of high incoming payments from rental income s our solid financial and liquidity positions to address any short-term challenges that we may face. ”
For more information, please visit the company’s website at www.aere.com or, for analysts, Molly Katz: firstname.lastname@example.org
Press & Shareholders: FTI Consulting Inc .: +44 (0) 20 3727 1000 Richard Sunderland / Claire Turvey / Andrew Davis: email@example.com
About Atrium European Real Estate Atrium is a leading owner, manager and redeveloper of shopping centers and retail properties in Central Europe. Atrium specializes in locally dominant grocery, fashion and entertainment malls in prime urban locations. Atrium owns 26 properties with a gross rental area of 808,100 m2 and a total market value of around EUR 2.5 billion. These properties are located in Poland, the Czech Republic, Slovakia and Russia and are all but one managed by Atrium’s in-house team of retail property professionals.
In January 2020, Atrium announced a strategy to diversify its portfolio by investing in and managing residential real estate, with a focus on Warsaw.
The Company is incorporated as a closed-end investment company, registered in and domiciled in Jersey, and is regulated as a certified fund authorized in Jersey by the Jersey Financial Services Commission, and is admitted to trading on both the Vienna Stock Exchange and the Euronext Amsterdam Stock Exchange. Appropriate professional advice should be sought in the event of uncertainty regarding the scope of the regulatory requirements due to the above supervision or authorization. All investments are subject to risk. Past performance is no guarantee of future returns. The value of investments can fluctuate. Results obtained in the past are not a guarantee of future results.
Details about the EMTN program can be found at: https://aere.com/emtn.aspx https://aere.com/emtn.aspx
You can find this press release at: https: //www.aere.com/Files/PressRelease/20201106_3Q … https: //www.aere.com/Files/PressRelease/20201106_3Q …
You can find the presentation at: https://www.aere.com/Files/Presentation/ 20201106_3Q20_trading_update_presentation.pdf [https://www.aere.com/Files/
 [#_ftnref1] As of December 31, 2019
 [#_ftnref2] The EUR 18 million is estimated over a period of approx. 3 years, which corresponds to the remaining term of the corresponding rents.
Issuer: Atrium European Real Estate Limited Seaton Place 11-15 UK-JE4 0QH St Helier Jersey / Channel Islands Telephone: +44 (0) 20 7831 3113 FAX: Email: firstname.lastname@example.org WWW: http: // www .aere.com ISIN: JE00B3DCF752 Indices: Exchanges: Vienna, Luxembourg Stock Exchange Language: German
Current indication: 2.18 / 2.27
Change to the last SK: 0.00%
Last SK: 2.23 ( 1.37%)
1. Real estate shares since the beginning of the year in percent, as of the end of November: CA Immo, Immofinanz, S Immo, Atrium, conwert (c) derAuer graphic book web >> Open at photaq.com
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