NEPI Rockcastle has issued its business update following the recent announcement of its incoming CEO, Marek Noetzel. The Group reported a 12.3% year-on-year increase in net operating income (NOI) during the first nine months of 2025 to €461.3 million with like-for-like NOI having increased by 4.4% year-on-year, supported by indexation, rental uplifts and higher short-term income.

NEPI’s performance was further underpinned by revenue from its renewable energy business of €9 million – a 23% increase from €7.3 million during 2024’s comparable period.

“The Group’s performance over the first nine months of 2025 underscores the strength of our platform and the quality of our assets across Central and Eastern Europe,” comments outgoing CEO, Rudiger Dany. “We delivered healthy rental growth, maintained very low vacancy, and we continued to focus on enhancing the experience of customers visiting our properties.”

NEPI’s like-for-like tenant sales increased by 3.5% year-on-year with footfall decreasing by 0.6%. On a quarterly basis, tenant sales rose 2.3% in Q3 year-on-year, while footfall across its assets decreased by 1.5%. Its shoppers’ average basket size increased by 4.6% year-on-year on a like-for-like basis for the nine months.

Relative to inflation, NEPI’s portfolio-weighted tenant sales growth was broadly in line with the average CPI of approximately 4.3% across its core markets.

Year-to-date, the Group signed 1 098 leases (including renewals) covering approximately 243 900m² with 353 new leases of over 75 000m², representing about 3.25% of its GLA. Its international tenants represented approximately 65% of its GLA for new leases and the blended base rent uplift on renewals was around 5.2% above indexation.

In September 2025, the Group completed a €500 million unsecured eight-year green bond at a 3.875% coupon and an issue price of 99.353%. Demand exceeded €4 billion from more than 200 investors with the net proceeds used to manage its upcoming maturities in October 2026 and July 2027 – with €250 million of each tranche refinanced. The allocations of the proceeds were aligned to the Group’s Green Finance Framework with the transaction having achieved broad institutional distribution across the UK, France, Benelux and DACH regions.

NEPI also completed its first greenfield photovoltaic (PV) project in Chisineu -Cris, Romania (54 MW), which is currently under testing with commercial operations expected to commence during Q1 2026. The other two Romanian greenfield projects in Aricetii Rahtivani (105 MW) are progressing as planned with phased commercial operations partially starting in 2026 and 2027. The Group says it is investigating the prospect of acquiring energy storage capacities which could enhance the returns of the PV plants. The rollout of PV panels at assets outside Romania and Lithuania is also continuing.

“The successful €500 million green bond issue in September 2025, which was heavily oversubscribed, also further strengthened the balance sheet and positions us well to manage our debt maturity profile. Our late-2024 acquisitions of Magnolia Park and Silesia City Center in Poland have proved excellent additions to the portfolio and are clear drivers of our growth story. Our investment in the energy business is already delivering double-digit returns, with significant growth and expansion potential over the coming years,” says Dany.

NEPI Rockcastle’s development pipeline under construction (or permitting construction) totals over €870 million including extensions and redevelopments of existing assets together with the green energy investments, of which €318 million had been spent by the end of Q3 2025.

“Looking ahead, our development pipeline, strong retailer demand and disciplined capital allocation will support continued earnings growth and sustainable value creation, and we remain confident that the Group will reach its full-year guidance.”

The value of its investment portfolio was €8.1 billion as at 30^th of September 2025.

The Group’s LTV was 31.4% as of the 30^th of September 2025 with an estimated LTV of 33.9% following its payment distribution for H1 2025. As of the 30^th of September 2025, NEPI has €421 million in cash and €690 million in undrawn credit facilities. The Group’s gearing ratio (interest bearing debt less cash, divided by investment property plus cost incurred for photovoltaic plants) was 31.4%.

Its Board has reaffirmed its guidance updated in August 2025 that distributable earnings per share for the year will be 2.5% to 3% higher than its 2024 distributable earnings per share, maintaining a 90% dividend pay-out ratio.

Fortress Real Estate Investments Limited currently holds a 15.2% stake in NEPI Rockcastle (as at 1st September 2025).