VIENNA, May 22 (Reuters) - Atrium European Real Estate, a shopping mall developer in emerging Europe, swung to a first quarter net loss of 232 million euros ($319 million) as it revalued properties mainly in Russia and Poland.
The group, formerly known as Meinl European Land, wrote down the value of existing assets by 180 million euros and of development projects by 110 million euros, as yields continued to rise in emerging Europe, it said on Friday.
"The general market conditions have not improved during the first three months of 2009," Atrium said in a quarterly report.
"Negotiations on rental discounts with retailers and the associated decrease of consumer spending causes decrease in rental income, occupancy, as well as decrease in market values of properties," it said.
In the first quarter of 2008 the company reported a net profit of 3 million euros.
The writedowns weighed on Atrium's net asset value, which dropped 14 percent to 9.22 euros per share in the quarter -- still a multiple of its share price, which was unchanged at 3.30 euros by 0730 GMT, up 28 percent this year so far.
Net rental income increased 13 percent to 28.7 million euros in the March quarter, helped by new projects completed over the past 12 months. On a like-for-like basis, net rental income declined by 2 percent, due to depreciating currencies.
Atrium's predecessor, Meinl Land, drew investor ire in 2007 because of unauthorised share buybacks and corporate governance concerns. The chairman of affiliated Meinl Bank, Julius Meinl V, was bailed for 100 million euros in April after being arrested to face accusations of defrauding investors.
Atrium was taken over by Israeli real estate investor Gazit Globe last year and is in the process of severing all ties to Meinl Bank. It plans to move its listing to Amsterdam's Euronext exchange this year. ($1=.7254 Euro) (Reporting by Boris Groendahl; Editing by Jon Loades-Carter)