Atrium European Real Estate today gave a cautious view of the European markets despite reporting a net asset value per share uplift of 2.7% in the first half of the year.
The central and eastern European shopping centre property company reported today that NAV per share had risen from €6.02 at the end of December 2010 to €6.19 at the end of June this year.
The NAV growth came from the second quarter of 2011 when Atrium enjoyed 2.8% NAV per share growth compared to a 0.1% decline in the first quarter.
Atrium’s growth came from strong rental income improvements. The value of its like-for-like net rental income increased by 14.5% to €85.1m, compared with the first half of 2010.
The value of its income producing portfolio also increased to €1.77bn following the €171m purchase of the Promenada shopping centre in Warsaw and a €69.1m revaluation uplift.
Rachel Lavine, chief executive of Atrium European Real Estate, said: “A number of transactions have allowed us to both ensure our development pipeline is focussed on those assets which we
believe provide the best opportunity to create value and strengthen our operating portfolio, which will also be enhanced by a number of smaller asset management initiatives.
“While we continue to be encouraged by our performance, recent events have highlighted the amount of economic uncertainty that remains and reminds us of the importance of managing our assets properly, being prudent in our approach to acquisitions and developments while ensuring we remain on a stable footing.”
Borrowings at Atrium increased to €452.6m at the end of June from €393.5m at the end of March this year as a result of the Promenada purchase and Atrium’s strategy of rebuying its debt.
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