NEPI Rockcastle has recorded a 13.5% gain in net operating income to €274 million during H1 2024 versus the same period of last year, while on a like-for-like basis it saw a 10% gain.
Sales of tenants in the group’s projects were 8.7% higher against the same period in 2023 and the average basket size increased by 8.2%. At the same time, its rents grew above the rate of inflation which helped drive a valuation gain of €134 million, up 2% compared to the end of 2023, and its loan to value ratio remained stable at 32.2%.
On the financial side, NEPI Rockcastle said it has enough funds to repay a €500m bond maturing in November 2024.
At the end of H1 2024, the group’s distributable earnings per share were 30.12 eurocents, up 5.6% compared to H1 2023.
“Tenant sales increased across all retail categories in our shopping centres, underlining the attractiveness of our locations and the resilience of the CEE consumer. Base rents and turnover rents are going up while recoveries of operating costs and the occupancy cost ratio remain at sustainable levels,” says Rüdiger Dany, NEPI Rockcastle’s CEO.
On the development front, NEPI Rockcastle aims to complete the expansion of Promenada Bucharest by Q4 2026 and to receive the building permit for a new greenfield development with a leasable area of 60,500 sqm in Plovdiv, Bulgaria later this year.
At the same time, the company aims to start new residential developments in two Romanian cities – Brașov and Craiova.
Elsewhere, NEPI Rockcastle is looking to invest approximately €100 million in greenfield, ready-to-build photovoltaic projects in several new locations in Romania, to expand its green energy generating capacity and increase the coverage of electricity consumption needs of its tenants. The first solar systems are expected to become operational at the end of 2026.
In Serbia, NEPI Rockcastle has an ongoing deal to sell its only retail project Promenada Novi Sad for €177 million.
At the end of H1 2024, the group’s portfolio was valued at €7 billion. It comprises 2.2 million sqm across nine CEE countries.
