NEPI Rockcastle raises outlook as €8.4bn portfolio grows

• Net operating income rose 3.8% to €318m, while occupancy remained exceptionally high at 98.2% across the retail portfolio.
• Distributable earnings per share increased 3.5%, prompting NEPI Rockcastle to raise its full-year 2026 earnings guidance.
• More than €820m of developments and upgrades, alongside expansion into Spain, is positioning the group for its next growth phase.

Retail heavyweight builds momentum in 2026

‍NEPI Rockcastle has strengthened its position as one of Europe's retail property heavyweights, delivering higher earnings, resilient tenant sales and near-full occupancy while accelerating investment into new developments, acquisitions and renewable energy.

Europe's third-largest listed retail real estate company by portfolio value and the largest owner, operator and developer of shopping centres in Central and Eastern Europe (CEE) reported net operating income (NOI), including energy activity, of €318 million for the first half of 2026, up 3.8% year-on-year.

The group's portfolio is now valued at €8.4 billion, following a €126 million valuation uplift, and comprises 60 properties across eight CEE countries and Spain. Romania and Poland remain its two largest markets.

Importantly for investors, the operational growth is flowing through to earnings. Distributable earnings per share (DEPS) increased by 3.5% compared with H1 2025, leading the board to raise its full-year outlook.

NEPI Rockcastle now expects 2026 DEPS growth of between 3.5% and 4% compared with the 62.03 euro cents per share achieved in 2025.

Portfolio resilience drives growth

‍Marek Noetzel, Chief Executive Officer of NEPI Rockcastle, says the results demonstrate both the quality of the group's assets and the strength of its active asset-management strategy.

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“The strong results in the first half of 2026 demonstrate the quality and the resilience of NEPI Rockcastle’s portfolio and are a testament to our active asset management.”

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Noetzel points to continued investment across the portfolio, from the major extension of Promenada Bucharest to renewable energy projects and the group's first move outside its traditional CEE markets through the acquisition of MegaPark Barakaldo near Bilbao, Spain.

He says NEPI Rockcastle's balance sheet provides the capacity to continue investing in value-enhancing opportunities, reinforced by S&P Global Ratings upgrading the company to BBB+ in July 2026.

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“I am proud to lead a group that combines an established portfolio, a rock-solid balance sheet and a sustainable growth story, and one that is well placed to keep delivering for our shareholders in the years to come,” says Noetzel.

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The numbers investors need to know

‍Behind the headline earnings growth is a business continuing to generate strong cash flows while maintaining conservative leverage.

€318m - Net operating income
 Total NOI, including energy activity, increased 3.8% year-on-year during the first half.

€312m - Property NOI
 Property-related like-for-like NOI increased 3.3%, supported by rental indexation, increased short-term income and improved cost recovery.

€8.4bn - Portfolio value
 Strong operating performance contributed to a €126 million valuation uplift during the period.

98.2% - Occupancy
 The portfolio remains close to fully occupied, demonstrating continued retailer demand for NEPI Rockcastle's shopping centres.

+3.5% - DEPS growth
 Distributable earnings per share increased 3.5% year-on-year, with full-year guidance now raised to 3.5% - 4% growth.

€1.2bn - Liquidity
 At 30 June, the group had €461 million in cash and cash equivalents and €740 million in undrawn committed credit facilities.

33.1% - Loan-to-value
 LTV remained comfortably below NEPI Rockcastle's 35% long-term strategic threshold, despite its substantial investment programme.

The group further strengthened its funding position after the reporting period by signing a €250 million green facility with the European Bank for Reconstruction and Development.

Operating performance: shoppers are spending more

‍One of the more significant signals from the results is that NEPI Rockcastle generated sales growth without needing substantially higher footfall.

Like-for-like footfall was broadly unchanged, declining just 0.4%, and visitor numbers have remained remarkably stable over the past three years despite continued economic uncertainty.

Consumers, however, are spending more when they visit. Average basket size increased 3.3%, helping lift like-for-like tenant sales by 2.7% year-on-year. The strongest-performing retail categories were:

• Health & Beauty: +8.4%
• Services: +8.3%
• Fashion Complements: +6.9%
• Fashion: +1.6%

For property investors, that combination of stable footfall, higher spend per visit, growing tenant sales and 98.2% occupancy provides an important indicator of the underlying health of the portfolio.

Leasing activity was equally robust. NEPI Rockcastle concluded 613 new leases and lease extensions covering 162,900m² during the first six months of the year, equivalent to 6.8% of group GLA.

Of these, 250 were new leases covering 63,900m², with international retailers accounting for 46% of that space. Major international brands continue to introduce flagship and new-format stores across the portfolio.

Capital recycling opens the door to Spain

‍NEPI Rockcastle is also actively reallocating capital towards markets and assets where it sees stronger growth potential.

In May, the group entered into a non-binding agreement to dispose of Ozas Shopping and Entertainment Centre in Vilnius, Lithuania, with completion targeted before the end of 2026.

More significantly, in August it agreed to acquire MegaPark Barakaldo in Bilbao for €252 million.

The acquisition represents NEPI Rockcastle's first investment in Spain and its first move into Western Europe, marking a potentially important evolution in the group's geographic strategy. Closing is expected by the end of September.

€820m development pipeline drives the next phase

‍Organic growth remains another major component of the investment strategy.

NEPI Rockcastle currently has more than €820 million of developments, extensions, refurbishments and redevelopments either under construction or in permitting. Of this, €354 million had already been invested by the end of June.

Promenada Bucharest is among the flagship projects. Its extension is scheduled to open in April 2027, with lease terms already agreed or signed for 95% of the retail GLA.

Other projects include the redevelopment of Bonarka City Center, refurbishment of Arena Mall in Budapest, expansion of Karolinka Opole in Poland and the proposed 60,500m² Promenada Plovdiv greenfield development in Bulgaria.

The 36,000m² Galati Retail Park in Romania is meanwhile targeted to open during the second half of 2027, with lease terms already agreed or signed for 88% of its retail area.

Green energy becomes part of the property return

‍Renewable energy is increasingly becoming more than an ESG initiative for NEPI Rockcastle, it is contributing directly to earnings. The group's net result from renewable energy production increased 38% to €5.7 million in H1 2026 as new photovoltaic capacity came online.

Its first off-site photovoltaic plant at Chisineu-Cris in Romania, with 54MW of installed capacity, is now commercially operational and had generated €1.8 million by the end of June. A second 60MW plant at Aricestii Rahtivani is fully permitted and is expected to reach physical completion and testing by the end of 2026.

NEPI Rockcastle is also progressing an additional 12.1MW of on-site photovoltaic installations, representing approximately €10 million of investment. The strategy has a dual benefit: increasing renewable electricity available to tenants while generating an additional contribution to NOI.

From resilient portfolio to growth platform

‍NEPI Rockcastle's first-half numbers tell a broader story than simply higher earnings. The underlying retail portfolio remains exceptionally well occupied, tenant sales are growing, consumers are spending more per visit and the balance sheet retains substantial capacity for investment.

At the same time, management is deploying capital aggressively but selectively: more than €820 million into its development pipeline, €252 million into its first Spanish acquisition and further investment into renewable energy generation.

For investors, the key number may ultimately be the upgraded earnings outlook. Raising guidance in an uncertain European economic environment signals management's confidence that the combination of high occupancy, rental growth, active asset management, disciplined leverage and new investment can continue translating portfolio strength into shareholder returns.

With an €8.4 billion portfolio, €1.2 billion of liquidity and 33.1% LTV, NEPI Rockcastle enters the second half of 2026 from a position of considerable financial strength, while its move into Spain suggests the next chapter of growth may increasingly extend beyond its traditional CEE heartland.

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