Atrium “weathering the storm”

The shopping centre operator insists, however, that out of the EUR 9.9 mln decrease in NRI, EUR 5.3 mln is attributable to the Covid-19 lockdown and the remainder is due to ‘portfolio rotation’.

Atrium’s EBIDTA, EPRA earnings per share and operating margin were also down, by 24.7, 38.5 and 4.5 pp respectively. However, the company insists that its performance was still healthy over the period and that adjusted for the effects of the pandemic and ‘portfolio rotation’ its figures are as follows: NRI – EUR 46.4 mln (+0.4 pp), EPRA like-for-like – EUR 31.1 mln (+1.9 pp) and EBIDTA – EUR 40.9 mln (no change). Also, its overall occupancy rate improved by 1.4 pp to 96.4 pct over the three months. Its net LTV ratio fell 3.1 pp to 34.5 pct and it now has liquid cash reserves of EUR 330 mln.

In its statement, Atrium has also announced an action plan involving a reduction in non-essential capital expenditure of app. EUR 11–15 mln, a EUR 3 mln reduction in operational costs and a EUR 2 mln reduction in administrative costs for 2020. The plan also includes the postponement to 2022/23 of this year’s planned investment of EUR 50 mln in redevelopments.

Liad Barzilai, the CEO of Atrium Group, has commented: “At the start of the year and pre Covid-19 the company continued to perform well, with strong like-for-like net rental income growth in Poland and the Czech Republic, where Atrium’s portfolio is now focused. This gives us further confidence in both our strategy and the ability of our portfolio to generate income growth over the longer term, particularly as we begin to diversify our asset base into residential for rent properties, as previously announced. Covid-19 has changed the global economic outlook for at least this year and this will inevitably impact our business. There is no doubt that the short-term implications of these restrictions will bring commercial and financial challenges which we will need to navigate over the remainder of the year. However, whilst it is encouraging that governments have begun to ease restrictions, the full extent of the impact is today impossible to predict. Nevertheless, I am confident in the company’s ability to weather the current situation as a result of its strong financial position and liquidity together with the quality of its portfolio and the dedication of its employees.”

Atrium owns 26 centres (and manages all but one of these) in major CEE cities with a combined gla of more than 809,000 sqm and with a total market value of app. EUR 2.6 bln – in Poland, the Czech Republic, Slovakia and Russia.