NEPI Rockcastle, Europe's third-largest listed retail real estate company by portfolio value, reported net operating income of €318 million for the first half of 2026, a 3.8% year-on-year increase. The result was driven by rental indexation, active leasing and tighter cost control, with a recovery rate of 96%. Like-for-like tenant sales rose 2.7%, supported by a 3.3% increase in average spend per visit. Occupancy stood at 98.2%, and a €126 million valuation uplift brought the total portfolio value to €8.4 billion.
Distributable earnings per share rose 3.5% in H1 2026 relative to H1 2025, prompting the board to raise its full-year guidance. The company now expects distributable earnings per share for 2026 to be 3.5% to 4% higher than the 62.03 cents per share recorded in 2025.
"The strong results in the first half of 2026 demonstrate the quality and the resilience of NEPI Rockcastle's portfolio and are a testament to our active asset management," said Marek Noetzel, Chief Executive Officer. "The strength of our balance sheet was also acknowledged by S&P Global Ratings, which upgraded the Company to BBB+ in July 2026. This enables us to keep placing capital into value-enhancing opportunities, including our first investment outside Central and Eastern European markets, in Bilbao, Spain, that we have just announced."
On the development front, the total cost of projects under construction or in permitting exceeds €820 million, of which €354 million had been invested by 30 June 2026. The extension of Promenada Bucharest is expected to open in April 2027, with lease terms agreed or signed for 95% of the retail gross lettable area. The redevelopment of Bonarka City Center in Kraków is due for completion in Q1 2027, with 97% of space leased. Refurbishment of Arena Mall in Budapest is 60% complete, targeting Q2 2028, while the Pogoria Shopping Centre extension in Dąbrowa Górnicza opened in Q1 2026, adding 5,100 sqm.
The group also progressed its renewable energy programme. Its first greenfield photovoltaic plant, located in Chisineu-Cris, Romania, with an installed capacity of 54 MW, is now in commercial operation and generated €1.8 million by end of June 2026. A second plant in Aricestii Rahtivani, with a capacity of 60 MW, is fully permitted, with completion expected by end of 2026. On the capital rotation side, the group agreed to acquire MegaPark Barakaldo in Bilbao for €252 million, its first investment in Spain, with closing expected by end of September 2026, and entered a non-binding agreement to dispose of Ozas Shopping and Entertainment Centre in Vilnius, Lithuania.
