Tuesday, 14 October 2025
Fitch Ratings has reaffirmed the long-term credit rating of NEPI Rockcastle N.V. at ‘BBB+’, maintaining a Stable Outlook. The same rating was applied to the group’s senior unsecured bonds, including those issued by NE Property B.V., which are guaranteed by NEPI.
The rating reflects the company’s solid operating performance and strong balance sheet, underpinned by a high-quality retail portfolio across Central and Eastern Europe. Fitch highlighted stable occupancy levels, healthy tenant sales, and consistent cash generation, supported by prudent financial management despite rising interest rates.
NEPI maintains a low leverage profile, with net debt to EBITDA expected to stay below 5.1x through 2028 and a loan-to-value ratio of 33% at mid-2025, comfortably below the company’s internal ceiling of 35%. Net interest coverage remains healthy, although Fitch anticipates some reduction over the coming years as older, low-interest debt is refinanced at higher rates.
In September 2025, NEPI issued a new €500 million bond with an eight-year maturity and a 3.875% coupon, using the proceeds to refinance half of its 2026 and 2027 bond maturities. The company retains strong liquidity, with €373 million in cash and €690 million in undrawn revolving credit facilities, ensuring ample capacity to manage its €250 million October 2026 bond repayment.
Fitch noted that NEPI’s development pipeline remains an important driver of future income growth. Ongoing projects include Promenada Mall in Bucharest, with 55,400 sqm of new space scheduled for completion in early 2027, already around 70% pre-let. Additional developments in Plovdiv and Galați are expected to launch between 2026 and 2027, both in advanced permitting stages.
Recent acquisitions have strengthened the company’s regional footprint. NEPI’s purchase of Magnolia Park in Wrocław and Silesia City Centre in Katowice for nearly €760 million expanded its Polish portfolio, generating annual rental income of roughly €55 million combined. The company continues to focus on leading, high-traffic shopping destinations across its markets, which attract major international tenants such as LPP, Inditex, Carrefour, and Auchan.
Fitch also pointed to NEPI’s investment in renewable energy, with €110 million earmarked for solar projects in 2025–2026. Once completed, these installations will deliver 212 MW of capacity, covering nearly half of the company’s energy needs and generating up to €30 million annually.
Operationally, NEPI’s performance remains robust. Net rental income grew 11.9% year-on-year in the first half of 2025, while like-for-like income rose 4.2%. Tenant sales increased 3.9%, supported by higher basket values, though footfall remained stable. Vacancy rates continued to decline, standing at 1.6% by mid-2025.
When compared with peers such as Globalworth Real Estate Investments and Globe Trade Centre, Fitch considers NEPI’s financial metrics stronger, particularly its moderate leverage and resilient rental income. The agency expects the company to maintain stable performance and sufficient liquidity over the medium term.
Fitch concluded that an upgrade is unlikely in the near term, given NEPI’s retail sector focus and geographic concentration in Central and Eastern Europe. However, the current rating reflects the company’s consistent profitability, conservative funding structure, and well-managed asset base, which together support its ‘BBB+’ rating with a Stable Outlook.
Source Fitch Ratings
