Atrium boosts Q3 results

Atrium European Real Estate booked a pre-tax profit of EUR 120.3 mln for the nine months to end-September compared with a loss of EUR 374.5 mln in the year-earlier period. The strong improvement reflected a 54.4% increase in net cash from operating activities to EUR 70.3 mln and a revaluation of the portfolio to EUR 1.547 bn from EUR 1.475 bn at end-2009.

Earnings before interest, tax, depreciation and amortisation (EBITDA) excluding revaluation grew 18.7% to EUR 75.9 mln over the nine-month period from EUR 64.0 mln a year ago. Net rental income (NRI) rose by 12.8% to EUR 100.2 min, and by 8.8% on a like-for-like basis to EUR 89.9 mln.

The occupancy rate was flat at 94.7% compared to 94.7% at end-June, and up marginally from 93.6% in the year-earlier period. Borrowings were also stable compared to end-June at EUR 426.1 mln, but down significantly from the EUR 658.8 mln recorded at end-2009.

Commenting on the results, Rachel Lavine, CEO of Atrium European Real Estate, said: ‘The continued stabilisation of the economic and real estate markets across Central and Eastern Europe and the gains we have made in terms of Atrium’s operational efficiency are reflected in an improved third quarter performance. We have made solid progress throughout the period and are excited about the improved quality, and value creation opportunities within our asset base. In light of these results and the ongoing economic stabilisation in our chosen markets, we remain confident about Atrium’s prospects and this is reflected in our decision to increase the Company’s annual dividend.’

Atrium European Real Estate is one of the leading listed real estate companies focused on shopping centre investment, management and development in Central and Eastern Europe.