=------------------------------------------------------------------------------- 
  Corporate news transmitted by euro adhoc with the aim of a Europe-wide 
  distribution. The issuer is responsible for the content of this announcement. 
=------------------------------------------------------------------------------- 
 
Annual Result 
 
St Helier Jersey / Channel Islands - 
                             2020 Financial results 
 
Jersey, 4 March 2021, Atrium European Real Estate Limited (VSE/Euronext: ATRS), 
(the "Company" and together with its subsidiaries, the "Atrium Group" or the 
"Group"), a leading owner, operator and redeveloper of shopping centres and 
retail real estate in Central Europe, reports its financial results for the year 
ended 31 December 2020 and an update on the impact of COVID-19 on the Group's 
operations. 
 
2020 business overview 
 
* Positive start to 2020, pre-Covid. From March 2020 onwards the business was 
  subject to COVID-19 operational restrictions with our centres closed for 
  approximately 30% of the remainder of the year, except for stores selling 
  essential goods and services 
 
* 86% of the Group's operating GLA is currently open, with most of the stores in 
  our shopping centres in Poland and Russia fully operational, whilst the Czech 
  Republic and Slovakia remain in lockdowns 
 
* Tenant sales and footfall rebounded when lockdowns were partially lifted, 
  reaching 93% and 79% of 2019 levels in August respectively, with the average 
  basket size also rising 
 
* Collection rate at 97% for the full year invoiced rent 
 
* Over EUR110 million of cash conservation initiatives taken throughout the year 
  in response to the pandemic, including reducing non-essential capital 
  expenditure, postponing planned redevelopments and introducing a voluntary 
  scrip dividend from the second quarter onwards 
 
* Adequate liquidity and financial flexibility to continue to manage COVID-19 
  headwinds comprising EUR178 million of cash and a EUR300 million unutilised 
  credit facility, as of today, with a net LTV ratio of 38.6% 
 
* Inaugural green bonds issued in February 2021, raising EUR300 million, 
  together with a buyback of EUR78 million of 2022 notes, thus reducing the 
  average debt cost and extending the maturity to 2.8% and 5.1 years, 
  respectively 
 
* Maintained both investment grade ratings, with Fitch reaffirming BBB stable in 
  early 2021 
 
* Valuations were adversely impacted by two key drivers: yield expansion based 
  on more conservative outlook for market sentiment in Poland and Czech as a 
  result of COVID-19 and the volatility of the Russian Ruble 
 
* Residential for rent strategy progressed with plans to develop 800 apartments 
  at Atrium Promenada in Warsaw, currently in the planning and permitting stage 
 
 
 
2020 - Key financial and operational figures 
 
 
In EURm                        12M 2020            12M 2019               CHANGE 
                                                                           %/ppt 
Net rental income 
("NRI")                           138.9               176.4               (21.3) 
 
NRI excl. impact of 
disposals                         151.4               176.4               (14.2) 
 
EPRA Like-for-Like 
NRI                                98.9               116.9               (15.4) 
 
EBITDA                            118.8               153.6               (22.6) 
 
EBITDA margin (%)                   86%                 87%                (1.0) 
 
Company adjusted 
EPRA earnings                      74.3               106.0               (29.9) 
 
Occupancy rate (%)                92.3%               97.0%                (4.7) 
 
Operating margin 
(%)                               89.9%               94.2%                (4.3) 
 
 
 
 
* Group NRI was EUR138.9 million for the year, down 21.3% or EUR37.5 million 
  from 2019 due to: 
 
  o EUR49 million cash impact of COVID-19 offset by EUR23 million straight line 
    of tenant support and government imposed reliefs 
  o EUR13 million from disposals as part of the portfolio rotation strategy 
  o Offset by EUR2 million rental growth mainly arising from indexation 
 
* Like-for-like NRI was down 15.4% driven by rent relief, vacancies and 
  provisioning for debtors 
 
* Operating margin decreased by 4.3ppt to nearly 90%, of which 3.0ppt was due to 
  the service charge relief for the lockdown periods imposed by the Polish 
  government 
 
* Atrium's occupancy rate remained solid at 92.3% 
 
* EBITDA and Company adjusted EPRA earnings decreased by 22.6% and 30% 
  respectively. The decrease in rental income was partially offset by EUR2.6 
  million reduction in administrative costs, EUR2 million decrease in finance 
  cost and EUR1 million decrease in taxes 
 
 
Valuation update 
 
* CE region's like-for-like assets devalued by 5.9%, with a weighted average of 
  c.30 bps yield expansion 
 
* Russia's like-for-like assets devalued 17.8%, mainly due to the volatility of 
  the Ruble which weakened by over 30% in 2020 
 
* As a whole, the Company recognised a like-for-like devaluation of 7.2% for its 
  income producing assets, with over 90% of the contraction caused by change in 
  yields due to market sentiment and volatility of the Russian Ruble 
 
 
Portfolio rotation 
 
* The Group continued its portfolio rotation and repositioning strategy 
  throughout 2020 with EUR78 million of disposals against a back drop of 
  pandemic headwinds, including the sales of the Atrium Duben shopping centre in 
  Slovakia in January, five assets in Poland in July and land plots in Poland 
  and Romania in August and December 
 
* Poland and the Czech Republic now comprise 85% of the total portfolio, with 
  59% of our Polish assets concentrated in Warsaw, and 80% of the Czech 
  portfolio located in Prague and, with these two capital cities representing 
  just over half of the total portfolio 
 
* Progress made in fulfilling our residential for rent diversification strategy 
  that targets 5,000 units in Poland and the Czech Republic. Plans and 
  permitting for the densification of Atrium Promenada through the phased 
  development of 800 apartments in five residential buildings as well as ground 
  floor retail units 
 
 
ESG and Green Financing framework 
 
* Launch of Green Financing Framework in February 2020, integrating the 
  Company's sustainability commitments with its financing activities. The 
  framework was endorsed by Sustainalytics 
 
* Green financing proceeds will be used for financing and re-financing eligible 
  projects such as buildings that meet the required BREEAM environmental 
  standards (very good or higher). 
 
* In 2020, the Group' achieved a 'very good' or higher BREEAM certification for 
  over half of its income producing portfolio compared to 4% in 2019 
 
* In February 2021, the Group issued its first green notes, raising EUR300 
  million, with a 2.625% coupon and maturing in September 2027. The inaugural 
  green notes attracted high interest from the market (4x oversubscribed) with a 
  very broad and diverse investor base including those investors with a specific 
  focus on ESG/sustainable investment portfolios 
 
 
Dividend 
 
* The Board decided to maintain the Group's annual dividend, payable as a 
  capital repayment at EURCents 27 per share for 2021, demonstrating its 
  continued confidence in the Group's prospects and its evolving strategy. The 
  dividend will be paid in equal quarterly instalments and will continue to be 
  subject to a quarterly review by the Board. 
 
* The Board has also resolved to offer shareholders the option to receive each 
  of the 2021 quarterly dividend distributions either in cash or in newly issued 
  shares at a 2% discount to the reference share price via a Scrip Dividend 
  Programme, subject to the renewal of the authorisation to issue Scrip shares 
  in the next Annual General Meeting. 
 
* The first quarterly dividend of 6.75 EURcents per share is due to be paid as a 
  capital repayment on 31 March 2021 to shareholders on the register as at 12 
  March 2021, with an ex-dividend date of 11 March 2021. The election date for a 
  scrip dividend will start on 15 March 2021 and end on 26 March 2021. 
 
* A circular setting out further details on the election being offered to 
  shareholders pursuant to the scrip dividend alternative including the election 
  instructions and information on the exchange ratio, will be posted to 
  shareholders before the start of the election period, and will be available on 
  the Company's website. 
 
 
Liad Barzilai, Chief Executive Officer of Atrium Group, commented: 
"The COVID-19 pandemic significantly impacted people's lives and businesses 
across the world, with shopping centres and retailers amongst the most affected 
and this is clearly reflected in the Atrium 2020 financial results. 
 
"However, we were enormously encouraged by the fact that during those periods, 
when government restrictions were eased, footfall and sales levels rapidly 
returned to near pre-COVID-19 numbers, while online sales mirrored this pattern 
in reverse. We believe this underlines the importance people place on the 
physical retail and leisure environment that high quality prime assets in strong 
urban locations and capital cities such as ours afford. As the vaccines are 
rolled out across the globe, there is cause for a renewed confidence as life 
hopefully begins to return to normal. 
 
"This year, we actioned a number of liquidity initiatives including cash 
preservation, refinancing, establishment of a new EMTN programme and an issuance 
of Atrium's first green note, which together supported Atrium strong financial 
position and allows us to execute our strategic plan. 
 
"Lastly, we have progressed the densification of our assets with residential for 
rent to drive diversified and resilient income streams in the future through the 
creation of self-sufficient and sustainable '15 minute' neighbourhoods. 
 
"I would also like to take this opportunity to thank again all our staff for 
their hard work over the year in reacting quickly and professionally to a

(MORE TO FOLLOW) Dow Jones Newswires

March 04, 2021 00:50 ET (05:50 GMT)