Wednesday, 19 November 2025
NEPI Rockcastle NV (“NEPI Rockcastle, Europe’s third-largest listed retail real estate company by portfolio value, reported stable operational results across the portfolio, supporting continued growth during the third quarter (Q3) of 2025. For the first nine months (9M) of 2025, net operating income (NOI) increased by 12.3% year-on-year to €461.3 million (9M 2024: €410.6 million). On a like-for-like (LFL) basis, NOI rose by 4.4% year-on-year, supported by indexation, rental uplifts, higher short-term income, and disciplined cost control. Performance also benefited from €9 million in revenue from the renewable energy business (+23% compared to €7.3 million in 9M 2024).
Tenant turnover increased by 3.5% LFL for the period, while footfall declined slightly (-0.6%). Average spend per visitor increased by 9% overall—supported by higher basket sizes at the two large properties acquired in Poland last year—and by 4.6% LFL. The occupancy cost ratio was 12.7% for 9M 2025 (down from 13.1% in the first half (H1) of 2025). The EPRA retail vacancy rate remained low at 1.6% at quarter-end. Collection rates were strong at 99% for the period.
Rüdiger Dany, NEPI Rockcastle’s CEO, said: “The Group’s performance over the first nine months of 2025 underscores the strength of our platform and the quality of our assets across Central and Eastern Europe. We delivered healthy rental growth, maintained very low vacancy, and continued to enhance the customer experience across our properties. The successful €500 million green bond issuance in September, which was heavily oversubscribed, further strengthened the balance sheet and supports our debt maturity strategy. Our late-2024 acquisitions of Magnolia Park and Silesia City Center in Poland have been strong contributors to growth. Our investment in the energy business is already delivering double-digit returns, with significant expansion potential in the coming years.
Looking ahead, our development pipeline, strong retailer demand, and disciplined capital allocation will support continued earnings growth and long-term value creation. We remain confident that the Group will achieve its full-year guidance.”
In September 2025, the Group completed a €500 million unsecured eight-year green bond with a 3.875% coupon and an issue price of 99.353%. Demand exceeded €4 billion from more than 200 investors. Net proceeds were used to proactively manage upcoming maturities in October 2026 and July 2027, refinancing €250 million of each tranche. Proceeds were allocated in line with the Group’s Green Finance Framework. The issue attracted broad institutional demand across the UK, France, Benelux and the DACH region.
As at 30 September 2025, the Group held €421 million in cash and €690 million in undrawn committed revolving facilities.
The Group’s loan-to-value ratio (LTV) was 31.4% as of 30 September 2025, remaining below the Company’s 35% strategic threshold (estimated LTV of 33.9% after payment of the H1 2025 distribution).
The investment portfolio was valued at €8.1 billion as at 30 September 2025, in line with June 2025, as properties are independently valued only at half-year and year-end.
EPRA Net Reinstatement Value was €7.74 per share at 30 September 2025, 4.81% higher than €7.38 per share at 31 December 2024.
Trading update
LFL tenant sales increased by 3.5% year-on-year in 9M 2025, while footfall decreased by 0.6%. In Q3, tenant sales grew 2.9% year-on-year, while footfall declined by 1.5%, following a strong start to the year that moderated in Q2 and edged lower in Q3. Average basket size increased by 4.6% year-on-year on a LFL basis in 9M 2025, showing resilient spending per visit despite lower footfall.
Relative to inflation, tenant sales growth was broadly in line with the Group-weighted average CPI of approximately 4.3%, while basket growth exceeded CPI. In Romania, the VAT increases introduced in Q3 2025 under new government fiscal measures tempered spending, particularly in discretionary categories.
Category performance varied: Fashion Complements (+10%), Health & Beauty (+9%) and Entertainment (+8%) showed the strongest results. Electronics (-3%) and Sporting Goods (-3%) were affected by tenant-specific factors. Fashion, the largest segment, remained broadly stable (+1% LFL). These results reflect the Group’s continued focus on tenant mix and initiatives aimed at maintaining trade densities and rental sustainability.
Leasing activity
Leasing remained active. Year to date, 1,098 leases covering approximately 243,900 m² were signed (including renewals). Of these, 353 were new leases totalling over 75,000 m², representing roughly 3.25% of the Group’s GLA. International tenants accounted for approximately 65% of GLA for new leases. The blended rent uplift on renewals was around 5.2% above indexation. Demand for retail space remained steady across CEE, with new agreements concentrated in Sport, Fashion and Health & Beauty.
Notable Q3 leases included Primark (Shopping City Sibiu, Romania), Just Gym (Pogoria Shopping Centre, Poland), Sports Direct (Shopping City Târgu Mureș, Romania), Nike (Arena Centar, Croatia), Medicine (Galeria Warmińska, Poland), and BIPA (Mega Mall, Romania).
Recent openings included Half Price (Magnolia Park, Poland), Zara (Arena Centar, Croatia; Arena Mall, Hungary), Rituals (Mammut Shopping Centre, Hungary), Notino (Arena Centar, Croatia), and Adidas (Bonarka City Center, Poland).
Construction and permitting progressed as planned across several major projects.
At the Promenada Bucharest extension, 68.5% of the GLA is signed or agreed; superstructure works are underway, with completion targeted for Q1 2027. At Bonarka City Center in Kraków, works are about 85% complete across nine phases, with completion scheduled for Q1 2027. Refurbishment of Arena Mall Budapest remains on schedule, with completion expected in Q2 2028.
In Poland, the Pogoria Shopping Centre extension is advancing, with 97% of the added GLA pre-let; completion is expected in Q1 2026. In Bulgaria, Promenada Plovdiv has obtained initial permissions and a concept-stage building permit; final permits are expected by Q1 2026, with completion planned for Q3 2027. At Galati Retail Park in Romania, permitting continues, and lease terms have been agreed for 81% of the GLA.
NEPI Rockcastle completed its first greenfield photovoltaic (PV) plant in Chișineu-Criș, Romania (54 MW), now in the testing phase, with commercial operations expected in Q1 2026. Two further Romanian PV projects in Ariceștii Rahtivani (105 MW) are progressing and are expected to begin phased operations in 2026 and 2027. The Group is evaluating potential energy-storage acquisitions to enhance PV returns. The rollout of PV installations across assets outside Romania and Lithuania is also ongoing.
The Group’s development pipeline under construction or permitting totals over €870 million, including retail extensions and green-energy investments, of which €318 million had been spent by the end of Q3 2025.
As of 30 September 2025, the Group had €421 million in cash and €690 million in undrawn committed credit facilities. The gearing ratio was 31.4%, below the strategic threshold of 35% (estimated 33.9% after the H1 2025 distribution).
Covenant headroom remained strong:
Solvency Ratio: 0.37 (maximum permitted 0.60)
Consolidated Interest Coverage Ratio: 4.9 (minimum required 2.0)
Unencumbered assets to unsecured debt: 270% (minimum required 150%)
The average cost of debt for 9M 2025 was 3.1%. The portion of debt exposed to variable rates was 15%, consisting of the IFC loan.
On 6 November 2025, the Board completed its CEO succession process and appointed Marek Noetzel as Chief Executive Officer, effective 1 April 2026. Mr. Noetzel has been COO since 2022, overseeing operations across 60 properties in eight CEE countries. His leadership in leasing, occupancy strategy, asset management and Poland acquisitions were noted as key factors in his appointment.
He will succeed Rüdiger Dany, whose mandate ends on 31 March 2026. The Board acknowledged Mr. Dany’s contributions, including major portfolio acquisitions and strong earnings growth.
The Board reaffirms its August 2025 guidance that distributable earnings per share for the full year are expected to be 2.5% to 3% higher than in 2024, maintaining the 90% dividend payout ratio.
This guidance assumes stable trading conditions and does not factor in potential political or macroeconomic shocks. It may be revised if material changes occur. The guidance has not been reviewed by NEPI Rockcastle’s auditors and remains the responsibility of the Board.
