Property group NEPI Rockcastle has posted a 12.3% growth in net operating income to €411 million in the first nine months of 2024 versus the same period of 2023 over higher rents and short-term income.
Tenant sales increased by 9.0% versus the same period a year ago, in line with the trend at half year. Footfall was up by 1.4%, while the average basket size increased by 8.3% despite inflation de-accelerating significantly since 2023.
“NEPI Rockcastle’s management has embarked on a major strategic plan to take advantage of current market opportunities and position the Group for long-run sustainable growth. Over a period of a few weeks spanning September and October, the Company successfully completed a €300 million equity raise (the first since 2017); a €500 million green bond issue; the largest single asset acquisition of a retail property in CEE in recent years and the disposal of its last remaining property in Serbia. More is yet to come, as we are looking at a very promising acquisition and development pipeline – including green energy production - while capital markets are growing ever more supportive of our strategy,” says Rüdiger Dany, NEPI Rockcastle’s CEO.
In Q3 2024, the Group signed 345 new leases and lease renewals, for more than 71,200 sqm, of which 34% are new leases (1% of total leasable area). International tenants accounted for 61% of newly leased spaces.
Close to €800 million in projects under development
The group’s development pipeline under construction or permitting totals €788 million, of which €226 million had been spent by the end of Q3 2024.
Development projects under construction (the extension of Promenada Bucharest, the redevelopment of Bonarka City Center and the refurbishment of Arena Mall Budapest) are on schedule and within budget.
Permitting is ongoing for the 60,500 sqm retail project Promenada Plovdiv. At the same time, the permitting process started for the development of Galați Retail Park, a mixed-use scheme in Galați, Romania, which includes 40,900 sqm of retail and 21,500 sqm of residential units. The expected date for obtaining the building permit is Q3 2025, and the anticipated opening date is Q4 2026.
NEPI Rockcastle will continue to invest in photovoltaic plans on the roofs of its shopping malls. The concept design was completed for 24 locations identified as suitable for development, adding up to a total installed capacity of 15 MW. In the meantime, the group has completed the installation of photovoltaic panels across 27 locations in Romania with a total installed power capacity of 38 MW, for an investment value of €34 million.
On the financial front, NEPI Rockcastle had €815 million in cash and €670 million in undrawn committed credit facilities at the end of Q3 2024.
