Monday, 25 August 2025
NEPI Rockcastle N.V., Europe’s third-largest listed retail real estate company by portfolio value, reported strong results for the first half of 2025. The company’s net operating income rose by 12.1% year-on-year to €307 million, supported by acquisitions completed in 2024 and active asset management across its portfolio. This performance lifted the value of the group’s investment property portfolio to more than €8 billion for the first time in its history, with vacancy at just 1.6%.
Chief Executive Officer Rüdiger Dany said the first half of 2025 consolidated growth achieved through consistent investment in premium properties. “We also continue to add value through developments, not least in the renewable energy sector, which has the potential to become an important growth segment for the Group once the current ongoing major investments therein are completed,” he noted. He added that distributable earnings per share increased by 3.1% compared to the first half of 2024, while the company maintained a conservative loan-to-value ratio of 32.1%. According to Dany, this balance allows NEPI Rockcastle to distribute 90% of its earnings as dividends, a rate higher than most peers.
The Board declared a dividend of 27.95 euro cents per share for the first half of 2025, corresponding to a 90% payout ratio. Shareholders may elect to receive the payment as a capital repayment in cash or as a dividend out of distributable profits.
Operational metrics showed resilience in consumer spending. While footfall was largely stable, tenant sales rose 3.9% on a like-for-like basis, excluding hypermarkets, with the average basket size increasing by 9.7%. Categories such as entertainment and health and beauty recorded double-digit growth, while fashion sales edged up by 0.7%. By mid-August, the company had collected more than 99% of reported revenues for the first half of the year. The European Public Real Estate Association (EPRA) occupancy rate stood at 98.2% as of 30 June 2025.
Leasing activity remained strong, with 167,000 square metres of space signed in new leases or extensions during the period. New leases accounted for just over a quarter of this figure, including agreements with international retailers such as Chanel, Sports Direct, and Tous. Rental uplifts averaged 5.3% above indexation.
The group continued to advance development projects and renewable energy investments. About €66 million was invested in developments, photovoltaic plants, and capital expenditure in the first half of 2025. Major ongoing projects include the extension of Promenada Bucharest, scheduled to open in early 2027, and the redevelopment of Bonarka City Center in Krakow, set for completion in 2026. Refurbishment at Arena Mall in Budapest is due in 2028, while expansions are underway at Pogoria Shopping Centre in Poland. In addition, the company is progressing with large-scale photovoltaic projects in Romania, including a 54 MW plant expected to be operational by year-end and a 105 MW facility targeted for 2026.
NEPI Rockcastle maintained a solid financial position with liquidity of €1.1 billion, including €386 million in cash and €690 million in undrawn committed credit facilities. The company reported no significant debt maturities until October 2026 and secured a portfolio fair value gain of €108 million compared to year-end 2024. Fitch Ratings affirmed its investment grade at BBB+ with a stable outlook, while S&P upgraded its outlook to positive, reflecting improved credit strength.
Looking ahead, the Board revised its guidance upward, now expecting distributable earnings per share for 2025 to be 2.5–3% higher than the 60.17 euro cents reported in 2024. This outlook assumes stable trading conditions and does not account for potential disruptions from geopolitical or macroeconomic instability.
