Over the last week, shopping centres within Poland, the Czech Republic and Slovakia have faced government imposed trading restrictions. In all three countries the restrictions exclude grocery stores/supermarkets, pharmacists/drugstores and other necessity services. As of yesterday, Russia also announced its first internal restrictions in some cities which include banning all outdoor events and limiting indoor gatherings to 50 people. Atrium is continuing to monitor announcements by the authorities in all areas of operation.
Since the onset of the crisis in February 2020, Atrium has been working closely with its tenants, staff and local health authorities in order to implement a number of preventative measures to contain the virus and minimise its impact on consumers. The health and safety of their customers, tenants and staff, remains our overriding priority.
At present, it is too early to ascertain the full impact these recent government orders, or the COVID-19 pandemic itself, will have on either the Company’s business and financial position, or that of its tenants. Atrium is in discussion with its tenants about a joint approach to addressing the challenges that COVID- 19 is presenting. At the same time, the Company is also actively prioritising its capex programme to defer non-essential capital expenditure, and, in parallel, reducing its operational expenses in response to these new measures.
With a strong balance sheet, a net LTV of 35% and access to credit facilities, the Company believes it has sufficient resources to manage its liquidity needs.
Atrium is carefully monitoring the situation and will provide further updates as needed.