Atrium European Real Estate, an owner, operator and developer of retail real estate and shopping centres in Central and Eastern Europe, has described its results for the first six months of 2012 as “excellent”.

The company’s gross rental income (GRI) for the period increased by 13.0 per cent to EUR96.2m (H1 2011: EUR85.1m), with an increase in like-for-like GRI of 5.6 per cent to EUR80.8m (H1 2011: EUR76.5m), while net rental income (“NRI”) increased by 17.5 per cent to EUR91.7m (H1 2011: EUR78.0m), with a market leading increase in like-for-like NRI of 7.0 per cent to EUR76.3m (H1 2011: EUR71.3m).

Operating margin increased to 95.4 per cent (H1 2011: 91.7 per cent) slightly ahead of management expectations, while EBITDA, excluding revaluation, increased by 36.9 per cent or EUR20.6m to EUR76.4m (H1 2011: EUR55.8m), and EPRA occupancy rates increased to 97.7 per cent (H1 2011: 96.3 per cent)’

Profit before taxation was EUR90.9m including a EUR33.0m revaluation of the portfolio (H1 2011: Profit before taxation of EUR113.7m including a EUR58.8m revaluation of the portfolio), with adjusted EPRA earnings per share increasing by 21.4 per cent to EUR0.17 (H1 2011: EUR0.14).

EPRA net asset value per ordinary share increased by 1.9 per cent to EUR6.48 (FY 2011: EUR6.36), while net cash generated from operating activities grew 12.6 per cent to EUR67.9m (H1 2011: EUR60.3m).

The group’s income producing portfolio of 155 assets was valued at EUR2.147bn at the end June 2012 (31 March 2012: EUR2.098bn; 31 December 2011: EUR2.077bn). Atrium also reported a cash position of EUR229.4m as at 30 June 2012, with borrowings of EUR555.6m as at 30 June 2012 (FY 2011: EUR568.0m) and a gross LTV of 20.5 per cent (net LTV of 12.0 per cent) with further progress in reducing the group’s more expensive and shorter term debt achieved through:

• The early repayment of two loans totalling EUR10.6m from Eurohypo bank in April

• The successful closing of a tender offer for the group’s 2003 note programme, leaving just EUR39.3m of the EUR100.0m aggregate amount of the notes outstanding

Atrium’s quarterly dividend payment of EUR0.0425 per ordinary share is to be paid on 28 September 2012 to shareholders on the register on 21 September 2012, with an ex date of 19 September 2012.

Rachel Lavine (pictured), chief executive of Atrium European Real Estate, says:  “I am pleased to report these excellent results which demonstrate our ability to maximise value by adopting a hands-on and detailed approach to asset management. Despite the challenging and uncertain economic environment, we have been able to deliver market leading growth in like-for-like net rental income which helped us achieve an increase of almost 37 per cent in EBITDA and 21 per cent in adjusted EPRA earnings. We continue to improve Atrium’s debt position by buying back or repaying our more expensive short term debt.
 
“Although we see low levels of activity in the investment market, we continue to look for suitable acquisitions in our core markets while progressing with our development plans. I am confident about the company’s ability to continue to perform well.”