Atrium European Real Estate Limited (VSE/Euronext: ATRS), a leading owner, operator and developer of retail real estate and shopping centers in Central and Eastern Europe, announces its results for the first half and second quarter ended June 30, 2012.
Financial highlights
- Gross rental income ('GRI') for H1 2012 increased by 13.0% to 96.2 mln (H1 2011: 85.1 mln), with an increase in like-for-like GRI of 5.6% to 80.8 mln (H1 2011: 76.5 mln)
- Net rental income ('NRI') increased by 17.5% to 91.7m (H1 2011: 78.0 mln), with a market leading increase in like-for-like NRI of 7.0% to 76.3 mln (H1 2011: 71.3 mln)
- Operating margin increased to 95.4% (H1 2011: 91.7%) slightly ahead of management expectations
- EBITDA, excluding revaluation, increased by 36.9% or 20.6 mln to 76.4 mln (H1 2011: 55.8 mln)
- EPRA occupancy rates increased to 97.7% (H1 2011: 96.3%)
- Profit before taxation was 90.9 mln including a 33.0 mln revaluation of the portfolio (H1 2011: Profit before taxation of 113.7 mln including a 58.8 mln revaluation of the portfolio)
- Adjusted EPRA earnings per share increased by 21.4% to 0.17 (H1 2011: 0.14)
- EPRA Net asset value ('NAV') per ordinary share increased by 1.9% to 6.48 (FY 2011: 6.36)
- Net cash generated from operating activities grew 12.6% to 67.9 mln (H1 2011: 60.3 mln)
- The Group's income producing portfolio of 155 assets valued at 2.147 bln (March 31, 2012: 2.098 bln; December 31, 2011: 2.077 bln)
- Cash position of 229.4 mln as at June 30, 2012
- Borrowings of 555.6 mln as at June 30, 2012 (FY 2011: 568.0 mln) and a gross LTV of 20.5% (net LTV of 12.0%) with further progress in reducing the Group's more expensive and shorter term debt achieved through:
- the early repayment of two loans totalling 10.6 mln from EUROHYPO AG bank in April
- the successful closing of a tender offer for the Group's 2003 Note program, leaving just 39.3 mln of the 100.0 mln aggregate amount of the Notes outstanding
-Quarterly dividend payment of 0.0425 per ordinary share to be paid on September 28, 2012 to shareholders on the register on September 21, 2012, with an ex date of September 19, 2012.
Operational highlights
- Contracted to acquire from Russian Cinema Holdings its holdings in the Group's Volgograd, Togliatti and Yekaterinburg Russian shopping centers for a total consideration of 9.3 mln, with the acquisitions of Volgograd and Togliatti completing in June and Yekaterinburg due to complete during the remainder of the year
- Good progress made at the Group's Atrium Felicity development in Lublin, Poland with the forward sale of the 19,700 m² hypermarket premises to a major international food retailer finalized in June and the appointment of the general contractor in July. The development is 52% pre-let and construction has now started with completion of the entire 75,000 m² center expected in late 2013
- Completed the acquisition of the 38,000 m² land plot adjacent to the Atrium Copernicus shopping center in Toruñ, Poland, announced last year
- Five-year extensions to six lease contracts across 62,000 m² of GLA agreed with Spar in the Czech Republic
Commenting on the results, Rachel Lavine, CEO of Atrium European Real Estate, said: "I am pleased to report these excellent results which demonstrate our ability to maximize value by adopting a hands-on and detailed approach to asset management.
"Despite the challenging and uncertain economic environment, we have been able to deliver market leading growth in like-for-like net rental income which helped us achieve an increase of almost 37% in EBITDA and 21% in adjusted EPRA earnings. We continue to improve Atrium's debt position by buying back or repaying our more expensive short term debt.
"Although we see low levels of activity in the investment market, we continue to look for suitable acquisitions in our core markets while progressing with our development plans. I am confident about the Company's ability to continue to perform well."
This announcement is a summary of, and sho
