NEPI Rockcastle, Europe’s third largest listed retail real estate company by portfolio value, recorded a 12.6% increase in net operating income (NOI) to €152 million in Q1 2025 compared to the same period in 2024.
This robust growth was primarily fueled by two major acquisitions in Poland in the latter half of 2024, alongside proactive asset management initiatives across its existing portfolio.
On a like-for-like basis, NOI saw a 5% uplift. While a slowdown in inflation led to a smaller base rental increase from indexation, this was successfully countered by strategic asset management measures such as unit rightsizing and tenant curation. Short-term income and improved cost recovery further contributed to the NOI growth.
Rüdiger Dany, NEPI Rockcastle’s CEO, said: “Driving growth in NOI through earnings accretive acquisitions has been a highlight of our strategy in recent years and the strong results in Q1 validate the positive impact of the two major investments made in Poland in 2024. At the same time, we continue to proactively manage our portfolio, regularly refreshing the tenant mix and improving the layout of our properties, to meet consumers’ evolving preferences.”
Tenant sales continued their positive trend, rising by 3.7% in Q1 2025 (like-for-like, excluding hypermarkets), with the average basket size increasing by 9.7%.
The company also highlighted a strong balance sheet with a low loan-to-value (LTV) ratio of 31.2% as of March 31, 2025, comfortably below its 35% strategic threshold.
The group said it has almost €1.2 billion in cash and available committed credit facilities. Its investment portfolio was €7.9 billion at the end of Q1, almost the same as in December 2024.
