Atrium European Real Estate Limited has reported a 5.7 per cent increase in gross rental income (GRI) to EUR106.9m for the first six months of 2014.
EPRA like-for-like GRI remained stable at EUR96.1m (6M 2013: EUR96.1m)
Net rental income (NRI) increased by 7.0 per cent to EUR103.1m (6M 2013: EUR96.3m), with EPRA like-for-like NRI decreasing 0.3 per cent to EUR92.6m (6M 2013: EUR92.9m).
Operating margin for the half year was 96.4 per cent (6M 2013: 95.2 per cent) above the company’s expected full year target. EPRA occupancy rates at 30 June 2014 remained high at 97.6 per cent (31 December 2013: 98.1 per cent).
EBITDA, excluding the revaluation result, disposals and impairments, increased by 11.1 per cent to EUR90.3m (6M 2013: EUR81.3m).
Profit before taxation was EUR35.5m compared to EUR61.7m for the first half of 2013, adversely affected by a EUR34.5m devaluation (compared to EUR7.5m revaluation in the first half of 2013), partially offset by a gain of EUR4.3m from foreign exchange differences (compared to a EUR4.7m loss in the first half of 2013) and EUR6.8m growth in NRI.
Company adjusted EPRA earnings per share increased by 8.5 per cent to 19.2 EURcents (6M 2013: 17.7 EURcents).
The value of the group’s 153 standing investments grew by 5.0 per cent to EUR2.5 billion, compared to 31 December 2013, and includes the group’s first major development, the Atrium Felicity shopping centre in Lublin, Poland, which opened in March 2014.
Cash position of EUR257.9m with borrowings of EUR724.2m as at 30 June 2014 (31 December 2013: EUR305.6m cash and EUR803.6m borrowings), representing a gross and net LTV of 25.2 per cent and 16.2 per cent respectively, ensuring a conservatively positioned balance sheet.
EPRA net asset value (NAV) per ordinary share declined slightly at EUR6.40 (FY 2013: EUR6.43) after a dividend of EUR0.12 per share in the first half of 2014.
A dividend payment of EUR0.06 per share was made for the second quarter of 2014, with the third quarterly payment due on 30 September 2014 to shareholders on the register at 23 September 2014 with an ex-dividend date of 19 September 2014.
Rachel Lavine, CEO of Atrium European Real Estate, says: “During the first half of 2014 we saw a continuation of the solid start to the year reported in Q1, and recorded strong year-on-year increases in gross and net rental income mainly driven by the two new prime properties added to our portfolio. On a net like-for-like basis there was a marginal decrease principally driven by the restructuring of certain properties, where we believe the medium term benefits of such activities far outweigh any disruption in the short term. Our focus on operational efficiency at an asset and Group level meant that we were still able to produce a very strong 11 per cent growth in EBITDA, excluding revaluation, disposals and impairments.
“We also made solid progress in our strategy of opportunistically divesting non-core development properties, with three sites sold for a total of EUR65m since the start of the year and including the EUR47m sale in Turkey of one of our largest land plots.”
“We continue to monitor the situation in Russia closely and cautiously. However, across the economies of our other core markets we are seeing further positive momentum, with improvements in growth forecasts, consumer sentiment and domestic demand.”