NEPI Rockcastle posts new record high for net operating income at 556 million Euro in 2024

NEPI Rockcastle, Europe’s third largest listed retail real estate company by portfolio value, recorded a net operating income of 556 million Euro in 2024, 13.2 percent higher than in 2023. Distributable earnings (both in absolute terms and per share) were the highest in the Group’s history. The 11.8 percent increase in distributable earnings (5.6 percent on a per share basis) was in line with the upward revision to guidance communicated in August 2024.

Rüdiger Dany, CEO, NEPI Rockcastle said “Our robust financial performance reflects the operational excellence of our portfolio and the strength of consumer demand in Central and Eastern European markets. The 13.2 percent increase in NOI last year was fundamentally driven by higher tenant sales, allowing us to raise base rents and collect more turnover rent (up by 15 percent versus 2023). The occupancy cost ratio (“OCR”) has remained at the same sustainable level since 2022, which demonstrates our success in working collaboratively with our retailer partners to create and share value together. We strive through active asset management to constantly improve our properties and make them even more attractive for both retail brands and consumers. As a result, we managed to bring down vacancy to 1.7 percent across the portfolio — a remarkable achievement. At the same time, we also look to grow through financially accretive and sustainable investments. From this point of view, 2024 was a landmark year for us.”

In 2024, NEPI Rockcastle reaffirmed its commitment to achieve its sustainability objectives. Key initiatives include reducing emissions, transitioning to renewable energy, achieving zero avoidable waste, and conserving natural resources. Additional efforts focus on ESG certifying of the asset portfolio, supporting tenant-led sustainability initiatives, fostering local employment, and enhancing visitor satisfaction.

The Company completed the installation of photovoltaic panels in Romania and Lithuania, achieving a total installed capacity of 38 MW across 28 properties (30 installations). The second phase of this renewable energy programme will add another 15 MW in 23 of NEPI Rockcastle’s properties outside Romania (individual projects are under various stages of design, permitting and tendering).

The third phase aims to develop greenfield photovoltaic plants with a much larger capacity. In Q4 2024, the Group acquired two project companies holding land rights, building permits and grid connection permits for photovoltaic projects with a cumulated capacity of 159 MW. These investments, estimated at €110 million in total, are expected to generate a return on capital roughly relative to retail developments. Moreover, they will significantly expand the Group’s green energy generating capacity and the proportion of its tenants’ electricity consumption, enhancing the revenues from green energy production.