Nepi Rockcastle, Europe’s third-largest listed retail real estate company by portfolio value, reported a 12.1% year-on-year increase in net operating income (NOI) in the first half of 2025, reaching €307 million. The company’s investment property portfolio exceeded €8 billion for the first time in its history, supported by acquisitions completed in 2024 and active asset management. Vacancy remained low at 1.6%.
“The first half of 2025 consolidated the growth generated by our strategy of investing in premium properties with strong fundamentals. We are also adding value through developments, particularly in renewable energy, which has the potential to become an important growth segment once our major investments are completed,” said Rüdiger Dany, CEO of Nepi Rockcastle.
Distributable earnings per share rose by 3.1% to 31.05 euro cents. The Board declared a dividend of 27.95 euro cents per share for H1 2025, representing a 90% pay-out ratio.
On a like-for-like basis, NOI increased by 4.4%, excluding the impact of 2024 acquisitions such as Magnolia Park and Silesia City Center and the disposal of Promenada Novi Sad. Revenue from energy activities rose 19.7% year-on-year to €4.9 million.
Tenant sales in like-for-like properties grew by 3.9% in H1 2025, while the average basket size increased by 9.7%. Footfall was stable. The occupancy rate stood at 98.2% at the end of June. Leasing activity covered 167,000 sqm of GLA, with an average rental uplift of 5.3% above indexation.
The company invested around €66 million in developments, photovoltaic plants and capex in the first half of the year. Ongoing projects include the extension of Promenada Bucharest (opening in Q1 2027), the redevelopment of Bonarka City Center (Q2 2026), the refurbishment of Arena Mall Budapest (Q2 2028), and the extension of Pogoria Shopping Centre in Poland (Q1 2026). Permitting is underway for Promenada Plovdiv in Bulgaria and Galati Retail Park in Romania.
The renewable energy programme is advancing, with 16 photovoltaic facilities under construction across Poland, Bulgaria, Hungary and Croatia, and two large greenfield plants in Romania with a planned combined capacity of 159 MW. The first is expected to become operational by the end of 2025.
At 30 June 2025, the loan-to-value ratio stood at 32.1%, well below the 35% strategic threshold. Liquidity reached almost €1.1 billion, including €386 million in cash and €690 million in undrawn credit facilities. Fitch rates the company BBB+ (stable outlook), while S&P recently revised its BBB rating to positive.
Looking ahead, the Board revised its guidance and now expects distributable earnings per share for 2025 to be 2.5–3% higher than the 60.17 euro cents per share recorded in 2024.
