Wednesday, 25 February 2026
NEPI Rockcastle reported record financial results for 2025, supported by recent acquisitions, improved occupancy and rental growth across its Central and Eastern European retail portfolio.
The company generated net operating income (NOI) of €618 million, up 11.2 percent year-on-year, while distributable earnings reached €441 million, representing a 6.7 percent increase (3.1 percent per share). Performance was at the upper end of the revised guidance issued in August 2025.
The group’s property portfolio increased in value to €8.2 billion, driven by valuation gains and ongoing development activity. Vacancy across the portfolio declined to a low of 1.2 percent, reflecting continued leasing demand.
The results were supported by the contribution of large Polish shopping centre acquisitions completed at the end of 2024, alongside indexation, rental uplifts and higher short-term income streams, including kiosks and parking.
Rüdiger Dany, CEO of NEPI Rockcastle, said the company had maintained discipline in executing its strategy. He noted that the business had focused on capital recycling, asset optimisation, large-scale developments and the expansion of renewable energy initiatives, while preserving balance sheet strength.
Consumer activity across the portfolio remained resilient in 2025. Tenant turnover increased by 3.6 percent on a like-for-like basis and average spend per visit continued to rise. Portfolio occupancy reached 98.8 percent.
During the year, approximately 500 new leases were signed, covering 113,000 sqm, equivalent to 4.7 percent of the group’s total gross lettable area. International brands accounted for 63 percent of the new agreements. In addition, 951 leases were renewed.
Among notable brand entries were Notino at Arena Centar in Croatia, Rituals at Mammut Shopping Centre in Hungary, TOUS at Paradise Center in Bulgaria, and BIPA and Tatuum at Mega Mall in Romania. The company also reported multiple openings and expansions by brands including Popeyes, dm drogerie markt, Adidas, Rituals and Skechers.
NEPI Rockcastle continues to advance its development pipeline, which exceeds €840 million and includes extensions, refurbishments and mixed-use projects. Key schemes under construction include the extension of Promenada Bucharest, the redevelopment of Bonarka City Center in Poland and the refurbishment of Arena Mall Budapest. The extension of Pogoria Shopping Centre in Poland opened in February 2026.
Projects currently in permitting include a new shopping centre in Plovdiv, a retail park in Galati and an extension to Karolinka Shopping Centre in Opole.
The company is also expanding its renewable energy programme. Photovoltaic installations currently supply about 6 percent of its electricity consumption. Additional on-site solar projects are under way across the portfolio, while two greenfield photovoltaic plants in Romania — at Chisineu-Cris (54 MW) and Aricestii Rahtivani (60 MW) — are scheduled to begin commercial operations in 2026.
The balance sheet remained conservative, with total liquidity exceeding €1 billion and a loan-to-value ratio of 32.8 percent, below the company’s long-term threshold of 35 percent. During the year, NEPI Rockcastle issued a €500 million green bond and increased its revolving credit facilities to €740 million.
Looking ahead, the company expects distributable earnings per share in 2026 to be approximately 3 percent higher than the 62.03 euro cents reported for 2025, while maintaining its current 90 percent dividend payout ratio.
Dany, who will step down as CEO on 1 April 2026 when Marek Noetzel assumes the role, said the results reflect the continued strength of prime shopping centres in the CEE region and the company’s established operating model.
