Saturday, 16 May 2026
NEPI Rockcastle reported higher rental income, continued tenant sales growth and low vacancy levels in the first quarter of 2026, supported by stable leasing activity and progress across its development and renewable energy pipeline.
Net operating income (NOI) reached €157.7 million in Q1 2026, an increase of 3.4% compared with the same period last year. Property NOI rose by 3.2% to €155.4 million, while revenue generated from the group’s energy activities increased to €2.3 million.
Like-for-like tenant sales increased by 3.8% during the quarter, with footfall broadly stable at 0.6% growth and average basket size rising by 3.3%. Vacancy across the portfolio remained low at 1.8%, while cash collection rates reached 98% for the quarter.
Marek Noetzel, who assumed the role of Chief Executive Officer on 1 April 2026, said the results reflected the resilience of the company’s portfolio and continued rental growth supported by inflation-linked leases and active asset management.
The company said its strongest operational momentum during the quarter came from Poland and Croatia, while Romania and Slovakia recorded more moderate performance against a softer consumer environment. Entertainment, services, health and beauty categories delivered the strongest tenant sales growth, while electronics and DIY-related segments remained under pressure.
Leasing activity remained active across the portfolio. During Q1 2026, the company signed 315 leases covering more than 78,000 sqm of gross leasable area, including 108 new leases. According to the company, international retailers accounted for around half of the newly leased area.
NEPI Rockcastle also reported continued progress on its development pipeline. The extension of Promenada Bucharest remains on schedule, with the retail component expected to open in the second quarter of 2027 and approximately 85% of the mixed-use scheme already leased or under agreed terms.
In Romania, the company also obtained a building permit for the Galati Retail Park project, scheduled to open in the second half of 2027.
The group continued expanding its renewable energy platform during the quarter. The Chisineu-Criș photovoltaic project in Romania, with planned capacity of 54 MW, is expected to begin commercial operations by the end of May 2026, while the Ariceștii Rahtivani project is planned to become operational in the third quarter of the year.
As of 31 March 2026, the company reported cash and cash equivalents of €565 million and an LTV ratio of 32.4%, remaining below its long-term threshold of 35%. Investment property value stood at €8.26 billion.
During the quarter, the company secured additional green financing, including a €225 million unsecured green term facility and a renegotiated secured green loan in Romania. The company also repurchased approximately 4 million shares between March and April 2026 for a total consideration of €27.7 million.
Looking ahead, NEPI Rockcastle maintained its guidance for approximately 3% growth in distributable earnings per share in 2026, subject to trading conditions and broader macroeconomic developments.
