CEE shopping centre specialist Atrium European Real Estate saw its losses narrow by almost a third to EUR 342 mln in the first nine months of the year from EUR 485 mln in the same period a year before.
CEE shopping centre specialist Atrium European Real Estate saw its losses narrow by almost a third to EUR 342 mln in the first nine months of the year from EUR 485 mln in the same period a year before.
Net rental income grew by 25.9% year-on-year to EUR 89 mln in the year to September 2009, from EUR 71 mln in the corresponding period in 2008. However, on a like-for-like basis, net rental income decreased by 5.54% to EUR 71 mln, from EUR 75 mln a year before.
During the first three quarters of 2009, the company succeeded in reducing its borrowings to EUR 1.07 bn, from EUR 1.51 bn at year-end 2008.
Atrium also said its board has approved the exchange of nearly EUR 428 mln of 2008 convertible bonds for 145 million shares and EUR 9.3 mln in cash with its shareholders Citi Property Investors (CPI) and Gazit. The operation, which was first announced in September, will result in Gazit's stake in Atrium rising to just over 29%, while CPI's stake would jump to almost 20%. Gazit currently has a 12.5% stake in the share capital of Vienna and Amsterdam-listed Atrium and just under 19% of the voting rights. CPI holds 3.3% of capital and almost 11% of the voting rights.
'We believe the exchange transaction to be an extremely positive step forward for Atrium, as it follows our clearly stated strategy of reducing our debt,' said CEO Rachel Lavine. 'It is also in line with our commitment to improving both the efficiency of our balance sheet and our corporate governance. We are now shifting focus onto growth and the creation of value.'
