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Credit: Atrium

Atrium European Real Estate: First quarter 2020 trading update

Atrium European Real Estate Limited, a leading owner, operator and redeveloper of shopping centres and retail real estate in Central Europe, provides an update on trading for the three months ended 31 March 2020 and an update on trading in light of the Covid-19 pandemic.

Highlights year to date

▪       The Company performed well up to the outbreak of Covid-19 and the implementation from mid-March of various governmental restrictions to trading in our centres, which adversely impacted the strong Q1 2020 momentum

▪       A progressive reopening has been launched from 4 May in Poland and is planned from 11 May in the Czech Republic and 3 June Slovakia, although it is too early to say when the Company’s assets will return to full operation

▪       Strong liquidity and financial flexibility with €330m cash as of today and low leverage of 34.5%

Liad Barzilai, Chief Executive Officer of Atrium Group, commented: “At the start of the year and pre Covid-19 the Company continued to perform well, with strong like-for-like net rental income growth in Poland and Czech Republic, where Atrium’s portfolio is now focused. This gives us further confidence in both our strategy and the ability of our portfolio to generate income growth over the longer term, particularly as we begin to diversify our asset base into residential for rent properties, as previously announced.

“Covid-19 has changed the global economic outlook for at least this year and this will inevitably impact our business. There is no doubt that the short-term implications of these restrictions will bring commercial and financial challenges which we will need to navigate over the remainder of the year.

“However, whilst it is encouraging that governments have begun to ease restrictions, the full extent of the impact is today impossible to predict. Nevertheless, I am confident in the Company’s ability to weather the current situation as a result of its strong financial position and liquidity together with the quality of its portfolio and the dedication of its’ employees.”