Wrap Text
Business Update
NEPI ROCKCASTLE N.V.
Incorporated and registered in the Netherlands
Registration number: 87488329
Share code: NRP
ISIN: NL0015000RT3
("NEPI Rockcastle" or "the Company" or "the Group")
BUSINESS UPDATE
RESILIENT OPERATIONAL PERFORMANCE WITH HIGHER TENANT SALES, STABLE OCCUPANCY AND ROBUST COLLECTIONS
Strong operational resilience across the portfolio supported continued growth through the third quarter (Q3) of
2025. For the first nine months (9M) of 2025, net operating income (NOI) rose 12.3% year-on-year to EUR461.3
million (9M 2024: EUR410.6 million). Like-for-like (LFL), NOI increased by 4.4% year-on-year, supported by
indexation, rental uplifts, higher short-term income and disciplined control of costs. Performance was further
underpinned by revenue from the renewable energy business of EUR9 million (+23% increase from EUR7.3 million
for 9M 2024).
Tenant turnover increased by 3.5% LFL for the period, while footfall was slightly lower (-0.6%). Average spend per
visitor rose 9% overall - supported by the higher basket size in 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% during first half (H1) 2025)
and the EPRA retail vacancy rate remained low at 1.6% at quarter-end. Collection rates were strong at 99% for the
period.
Rudiger 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 we continued to focus on enhancing the
experience of customers visiting our properties. The successful EUR500 million green bond issue in September,
which was heavily oversubscribed, also further strengthened the balance sheet and positions us well to manage our
debt maturity profile. Our late-2024 acquisitions of Magnolia Park and Silesia City Center in Poland have proved
excellent additions to the portfolio and are clear drivers of our growth story. Our investment in the energy business
is already delivering double-digit returns, with significant growth and expansion potential over the coming years.
Looking ahead, our development pipeline, strong retailer demand and disciplined capital allocation will support
continued earnings growth and sustainable value creation, and we remain confident that the Group will reach its
full-year guidance."
SOLID FINANCIAL POSITION WITH STRONG LIQUIDITY, 31.4% LTV AND EUR500 MILLION GREEN BOND EXTENDING MATURITIES
In September 2025, the Group completed a EUR500 million unsecured eight-year green bond at a 3.875% coupon
and an issue price of 99.353%. Demand exceeded EUR4 billion from more than 200 investors. Net proceeds were
used to proactively manage the upcoming maturities in October 2026 and July 2027, with EUR250 million of each
tranche refinanced. The allocations of the proceeds were aligned to the Group's Green Finance Framework. The
transaction achieved broad institutional distribution across the UK, France, Benelux and DACH regions.
As at 30 September 2025, the Group maintained a strong liquidity position, with over EUR421 million in cash and
EUR690 million in undrawn committed revolving facilities.
The Group's loan-to-value ratio (LTV) was 31.4% as of 30 September 2025, comfortably below the Company's 35%
strategic threshold (estimated LTV of 33.9% following the payment of distribution for the first half of 2025).
The value of the investment portfolio was EUR8.1 billion as at 30 September 2025, similar to June 2025, as the
property portfolio was not revalued post 30 June. In line with the Company's policy, independent valuations are
carried out twice a year and are included in the half-year and year-end financial reports.
EPRA Net reinstatement value at 30 September 2025 was EUR7.74 per share, 4.81% higher than EUR7.38 per share
as at 31 December 2024.
OPERATING PERFORMANCE
Trading update
LFL tenant sales increased by 3.5% year-on-year in 9M 2025 and footfall decreased by 0.6%. On a quarterly basis,
tenant sales rose 2.9% in Q3 year-on-year, while footfall was down 1.5% following a strong start to the year that
moderated to normal levels in the second quarter (Q2) and then declined slightly in the third quarter. Average
basket size increased by 4.6% year-on-year on a like-for-like basis for 9M 2025, evidencing resilient consumer
spend per visit despite lower footfall.
Relative to inflation, portfolio-weighted tenant sales growth was broadly in line with the average CPI of
approximately 4.3% across the Group's core markets, while average basket growth was above CPI. In Romania, the
increase in VAT rates across all sectors and categories introduced in Q3 2025 as part of the new government's
fiscal measures had a dampening effect on consumer spending and discretionary categories, which tempered
tenant sales.
Segment trends were broadly positive across most categories in the first three quarters, with Fashion
Complements (+10%), Health & Beauty (+9%) and Entertainment (+8%) outperforming, while Electronics (-3%) and
Sporting Goods (-3%) were softer due to specific tenant dynamics. Fashion, the largest category, remained broadly
stable (+1%) on a like-for-like basis. These trends are consistent with the Group's strategic focus on tenant mix
optimisation and asset-level initiatives to preserve trade densities and rental sustainability.
Leasing activity
Leasing momentum remained healthy. Year to date, 1,098 leases covering approximately 243,900m2 were signed
(including renewals), with 353 new leases on over 75,000m2, representing about 3.25% of Group's gross lettable
area (GLA). International tenants represented approximately 65% of GLA for new leases and the blended base rent
uplift on renewals was around 5.2% above indexation. Demand for space remained robust across CEE, with
flagship openings and pipeline agreements concentrated in the Sport, Fashion and Health & Beauty categories.
Significant new leases signed in Q3 2025 include Primark (Shopping City Sibiu, Romania), Just Gym (Pogoria
Shopping Centre, Poland), Sports Direct (Shopping City Targu Mures, Romania), Nike (Arena Centar, Croatia),
Medicine (Galeria Warminska, Poland) and BIPA (Mega Mall, Romania).
New units opened in Q3 2025 include Half Price (Magnolia Park, Poland), Zara (Arena Centar, Croatia and Arena
Mall, Hungary), Rituals (Mammut Shopping Centre, Hungary), Notino (Arena Centar, Croatia) and Adidas (Bonarka
City Center, Poland).
DEVELOPMENT UPDATE
Construction and permitting progressed in line with plans across key projects. At the Promenada Bucharest
extension, approximately 68.5% of the total mixed-use GLA is signed or agreed and superstructure works continue
to plan, with completion targeted for Q1 2027. Works at Bonarka City Center in Krakow are approximately 85%
advanced across nine phases, with completion scheduled for Q1 2027. The refurbishment of Arena Mall Budapest
progressed as planned, with completion targeted for Q2 2028. In Poland, the extension of Pogoria Shopping Centre
advanced with 97% of the additional GLA signed and completion expected in Q1 2026. In Bulgaria, Promenada
Plovdiv obtained the preliminary regulatory permissions and the building permit for the concept stage and is
advancing with technical design permitting, with final permits expected by Q1 2026 and targeted completion in Q3
2027. At Galati Retail Park in Romania, permitting is ongoing and terms for 81% of the GLA were agreed.
NEPI Rockcastle has completed its first greenfield photovoltaic (PV) project in Chisineu -Cris, Romania (54 MW),
which is currently under testing, with commercial operations expected to commence during Q1 2026. The other
two Romanian greenfield projects in Aricetii Rahtivani (105 MW) are progressing as planned, with phased
commercial operations partially starting in 2026 and 2027. The Group is investigating the prospect of acquiring
energy storage capacities which could enhance the returns of the PV plants. The rollout of PV panels at assets
outside Romania and Lithuania is also continuing.
NEPI Rockcastle's development pipeline under construction or permitting totals over EUR870 million (including
extensions and redevelopments of existing assets together with the green energy investments), of which EUR318
million had been spent by the end of Q3 2025.
CASH MANAGEMENT AND DEBT
As of 30 September 2025, NEPI Rockcastle had a very strong liquidity profile, with EUR421 million in cash and
EUR690 million in undrawn committed credit facilities. The Group's gearing ratio (interest bearing debt less cash,
divided by investment property plus cost incurred for photovoltaic plants) was 31.4%, comfortably below the 35%
strategic threshold (estimated LTV at 33.9% after the payment of distribution for the first half of the year).
As of 30 September 2025, the ratios for unsecured loans and bonds showed ample headroom compared to
covenants, as follows:
- Solvency Ratio: 0.37 actual compared to maximum 0.60 requirement
- Consolidated Interest Coverage Ratio: 4.9 actual compared to minimum 2.0 requirement
- Unencumbered consolidated total assets/unsecured consolidated total debt: 270% actual compared to
minimum 150% requirement
The 9M 2025 average cost of debt was 3.1%. As of September 2025, the balance exposed to variable interest rate
corresponds to the IFC loan and represents 15% of the total outstanding debt.
CORPORATE EVENTS
On 6 November 2025, the Board concluded the CEO succession process and appointed Mr. Marek Noetzel as Chief
Executive Officer, effective 1 April 2026. Mr. Noetzel has served as COO since 2022, with responsibility for
operations across 60 properties in eight CEE countries. He has been instrumental in directing a disciplined
occupancy strategy, as well as asset management and leasing operations, underpinning the Company's tenant-led
growth, as well as supporting key acquisitions in Poland.
He succeeds Mr. Rudiger Dany, whose mandate concludes on 31 March 2026.
The Board commends Mr. Dany's leadership during which the Group acquired several flagship assets, while
distributable earnings per share increased significantly, underpinned by robust operational performance and
balance sheet strength. The appointment ensures continuity and supports the next phase of the Group's growth.
OUTLOOK
The Board reaffirms its guidance updated in August 2025 that distributable earnings per share for the year will be
2.5% to 3% higher than 2024 distributable earnings per share, with no change in the Company's current 90%
dividend pay-out ratio.
This guidance does not consider the impact of greater political instability in the region or major macroeconomic
disruption and assumes that current trading trends continue. This guidance can be modified, or withdrawn, in the
future if material changes occur. This guidance has not been reviewed or reported on by NEPI Rockcastle's auditors
and is the responsibility of the Board of Directors.
By order of the Board of Directors
Rudiger Dany
Chief Executive Officer (CEO)
Eliza Predoiu
Chief Financial Officer (CFO)
19 November 2025
For further information please contact:
NEPI Rockcastle N.V.
Rudiger Dany/Eliza Predoiu +31 202 37 47 70
JSE sponsor
Java Capital +27 (0) 60 572 2299
Euronext Listing Agent
ING Bank +31 20 563 6685
Media Relations mediarelations@nepirockcastle.com
Date: 19-11-2025 09:00:00
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