Real estate group NEPI Rockcastle has recorded a net operating income of €365 million in the first nine months of 2023, up by 23% compared to the same period of last year. The result was boosted by improved tenant sales and the contribution of the acquisitions completed during 2022.
Last year, the group took over - Forum Gdansk and Copernicus shopping centres in Poland, as well as 50% of Ploiești Shopping City project in Romania. These had a contribution of €28 million on the net income by September 2023.
Tenant sales were 14% higher in the first nine months of 2023 versus the same period a year ago, fuelled almost equally by an increase in footfall and a rise in average spend per visit. Over the first nine months of 2023, the turnover increased across all retail segments, by an average of 13.6%.
“We see robust growth continuing across our region as household income and consumer spend are holding up well, despite macroeconomic challenges. The acquisitions made in 2022 are showing their worth in delivering strong value, while organic growth is supported by an increased number of visitors and very strong tenant sales. Developments are also starting to deliver value,” said Rüdiger Dany, NEPI Rockcastle’s CEO.
The group’s property portfolio’s value stood at €6.84 billion, which is 0.9% higher compared to June 2023 due to investments in developments made during third Q3 2023.
During Q3 2023, the group signed 348 new leases and lease renewals, for more than 64,600 sqm, of which 37% accounted for new leases. At the same time, international tenants accounted for 49% of the newly leased area.
NEPI Rockcastle’s development pipeline under construction, or under permitting, amounts to around €600 million (excluding the completed Promenada Craiova development), of which €196 million was already spent by the end of September 2023. Meanwhile, its liquidity totals €981 million in cash and undrawn committed credit facilities.
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