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Introduction to Atlas Estates
Atlas Estates Limited (“Atlas” or “the Company”) is a Guernsey incorporated closed-ended investment company investing in real estate in Central and Eastern European countries (“CEE”). Atlas currently operates in the Polish, Hungarian, Bulgarian and Romanian real estate markets, investing in yielding assets and development projects.
Atlas shares were admitted to trading on the AIM, a market operated by the London Stock Exchange plc (AIM) on 1 March 2006 and on 12 February 2008 the Company was admitted to the Warsaw Stock Exchange (WSE). The Company trades under the symbols ATLS and ATL respectively.
Atlas’ objectives are:
- Investment in real estate assets in Central and Eastern European countries,
- Structuring a solid portfolio of yielding assets and development projects, and
- Providing investors with an attractive return through a combination of dividend yield and capital growth.
The Company is targeting an overall return of 20 per cent. on an annualised basis once it has substantially invested the net proceeds of its IPO on AIM. This was completed on 1 March 2006 and raised a net €165 million.
The Company employs leverage to enhance its returns although the extent of such leverage varies on a property by property basis.
The Company will continue to invest in countries which have attractive investment fundamentals, which include political and economic stability, strong GDP growth and low inflation and those countries which attract increasing foreign direct investment from being part of, or from being expected to join, the EU. The Company does not intend to invest in the Former USSR Countries.
Atlas’ asset portfolio is managed by Atlas Management Company Limited.
Investing Policy
The Company actively invests in a portfolio of real estate assets across a range of property types throughout Central and Eastern Europe (CEE).
The Company targets countries within the CEE which possess attractive investment fundamentals including political and economic stability, strong GDP growth and low inflation. The Company may also make investments in countries which attract increasing foreign direct investment from being part of, or from being expected to join, the EU. The Company shall not invest in states of the former USSR.
The Company makes investments both on its own and, where appropriate, with joint venture partners in residential, industrial, retail, office and leisure properties in order to create an appropriately balanced portfolio of income-generating properties and development projects. There are no set restrictions on either sector or geographical spread of investments within the Company’s stated investment region.
The Company may employ leverage to enhance returns on equity although the extent of such leverage will vary on a property by property basis. Wherever possible, the Directors intend to seek financing on a non-recourse, asset by asset basis. The Company has no set limit on its overall level of gearing, however it is anticipated that the Company shall employ a gearing ratio of up to 75 per cent. of the total value of its interest in income-generating properties within its property portfolio.
The Company seeks to provide Shareholders with an attractive overall return through a combination of income and long term appreciation of the Company’s assets.”
The Board recognises that the current state of the credit markets and general downturn in the CEE economies in which the Company invests have had a negative effect on the overall value of the Group’s portfolio, causing a decline in the Company’s net asset value per share. In order for the Company to achieve its long term investing policy, the Board’s short term investment strategy for 2009 and 2010 is cash focussed with new development activity in relation to parts of its portfolio being selectively deferred but with current active projects displaying good sales being progressed on time and on budget and being brought to a conclusion to achieve intended returns. No dividends are expected to be paid in the short term.
Atlas’ Board of Directors
The Board comprises of three non-executive directors:
Mark Chasey – Chairman of Audit Committee
Andrew Fox - Chairman
Guy Indig - Director
Guy Indig is not independent director.
The Board provides strategic management and acts as the final Investment Committee for all investment/divestment decisions. Further information on corporate governance of the Company is included in the Investor Relations section of this website.