ACROSS | The European Retail Real Estate Magazine



Liad Barzilai, Chief Executive Officer of the Group. Image: Atrium

Atrium European Real Estate Limited has announced its results for the first half of 2018.

Highlights from Atrium’s Polish portfolio:

  • The market value of Atrium’s 21 income producing properties in Poland was €1.5bn, now representing 61.6% of its total €2.5bn income producing portfolio of 34 assets in CEE.
  • The Group delivered a 3.0% rise in EPRA like-for-like net rental income (NRI) to €64.5m, with growth in all markets1 and a 2.4% increase excluding Russia.
  • EPRA like-for-like Gross Rental Income from the Polish assets rose to €26.1m (H1 2017: €25.9m) and EPRA like-for-like Net Rental Income increased to €25.7m (H1 2017: €25.4m), despite the impact of temporary disruption and vacancies arising from the upgrade and extension works at the three flagship shopping centres in Warsaw, which will in the long term deliver value and income improvements.
  • 15% of the Group’s total income is currently produced by assets located in Warsaw.
  • EPRA Occupancy across the 21 assets remained strong at 96.7% (31 December 2017: 96.4%).
  • Altogether, three major projects underway in Warsaw will create around 60,000 sq m of GLA to the Group’s Polish portfolio and make a significant contribution to Atrium’s future growth and sustainability.
    • Atrium Promenada: Stage two of the redevelopment is on track to complete in the fourth quarter of 2018, following the first phase delivery of 7,600 sq m of GLA in 2016. 13,200 sq m of additional GLA will be added and the common areas will be upgraded to provide double shop fronts on the first floor, with a new food court and a two-level car park also being added. The full redevelopment, comprising a 47,600 sq m extension and major remodelling of the centre, is expected to complete in 2021.
    • Atrium Targowek: The refurbishment and 8,600 sq m GLA extension is ongoing and the main part of the works will also be finished by the end of this year. Tenant demand is very strong and pre-leasing is progressing well.
    • Atrium Reduta: Work on the redevelopment and refurbishment, which will add 5,700 sq m of new GLA by the end of 2019, has progressed. 2,700 sq m Warsaw’s first CINEMA3D and a modern 1,500 sq m fitness centre, which form part of the project are expected to open by the end of 2018.

Liad Barzilai, Chief Executive Officer of the Group, commented:

“Since the end of 2017 we have further progressed with our strategy of portfolio repositioning into dominant urban centres in prime locations and continued our programme of non-core asset sales, having now exited operational activities in both Hungary and Romania. As a result, over 80% of our portfolio by value is now located in the Czech Republic and Poland, with our portfolio also due to benefit from our redevelopment and extension programme which will create 60,000 sq m of GLA in total, including 26,000 sq m which will become income generating in 2018.”

“Today we have once again reported robust like-for-like net rental income growth, lowered our administrative cost base and improved our EBITDA. I believe that this strong set of results shows that our portfolio repositioning strategy and cost efficiency programme are delivering shareholder value and that the Company is well placed for further growth.”

1 Excluding the four residual assets in Hungary for which sale agreements were signed in July 2018

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