Atrium benefiting from prime portfolio in capital cities
Atrium European Real Estate Limited announced its results for the six months ended 30 June 2019. Highlights from Atrium’s Polish portfolio are included below.
A 1.5 percent improvement in the Group’s EPRA like-for-like net rental income (“NRI”) excluding Russia, or 0.5 percent growth across the whole portfolio.
The market value of Atrium’s 20 income producing properties in Poland is €1.7 billion, now representing 64 percent of its total €2.7 billion income producing portfolio of 32 assets in CEE.
€1 billion of the Group’s portfolio is located in Warsaw, representing 36 percent of total market value and delivering 23 percent of the Group’s €92.4 million Net Rental Income in the period.
A 15.7 percent increase in GRI from the Polish portfolio to €57.4 million (H1 2018: €49.6 million) and 16.1 percent increase in NRI to €55.1 million (H1 2018: €47.5 million).
EPRA Occupancy across the Polish portfolio remained strong at 95.7 percent.
Progress continues in executing the Group’s strategy to focus the portfolio on prime shopping centres in capital cities:
- In July 2019 the Group completed the sale of two Polish shopping centres, Atrium Koszalin, in Koszalin and Atrium Felicity, in Lublin, with a total lettable area of approximately 111,100 sqm, for €298 million or around 3 percent above book value.
- Acquisition of Atrium’s fifth Warsaw asset, King Cross shopping centre, for €43 million in June 2019. A well-connected and established centre with a diverse tenant mix and future redevelopment opportunities.
- Monetised 13 percent of the Group's land bank in January 2019 with the completion of a €28 million land disposal in Gdansk, Poland at around book value.
Liad Barzilai, Chief Executive Officer of the Group, commented: “The first half of 2019 has been yet another successful period where we have undertaken effective capital recycling and are seeing the true benefits of the refurbishments, particularly in our Warsaw assets. Our management focus remains on the continued implementation of our strategy and the delivery of positive operational results.”