NEPI Rockcastle, the third biggest retail real estate company in Europe, saw its net operating income soar 21% to a record €491 million in 2023 compared to the previous year over strong sales of its tenants across the region.
The group said its tenant sales were up 12.6% and consumer spend per basket rose by 7.8%, while footfall was 4.6% higher.
Gross rental income increased by 21% year-on-year to €510 million in 2023. Base rent was up 18%, driven by indexation, rental uplifts and higher occupancy. Strong tenant sales led to a 29% increase in overage and turnover rent, while short-term income grew by 26%.
“The markets that we operate in are forecast to have some of the strongest GDP growth in Europe in 2024, which bodes well not only for consumer confidence and the performance of our tenants, but also for NEPI Rockcastle’s continued growth,” said Rudiger Dany, CEO of NEPI Rockcastle.
At the end of 2023, the group’s investment property was valued at €6.8 billion, compared to €6.6 billion at the end of 2022. Meanwhile, its liquidity position amounted to €909 million, including €339 million in cash and €570 million in undrawn committed credit facilities.
NEPI Rockcastle had distributable earnings per share of 56.98 euro cents for 2023, which was 9.3% higher than in 2022 and the highest level in the company’s history.
