NEPI Rockcastle, the largest owner, developer and operator of shopping centers in Central and Eastern Europe reported net operating income of 135 million euros, up 12.7 percent in the first quarter of 2024
Tenant sales, excluding hypermarkets, were 10.5 percent higher in Q1 2024 compared to the same period last year. Also, the number of visitors to shopping centers owned by NEPI Rockcastle increased by 14 percent.
“We continue to see significant growth, which reflects both solid tenant results and good management of our properties in Central and Eastern Europe. Demand for retail space, particularly from international retailers, remains very strong, as evidenced by the high number of new leases signed, as well as the industry-leading occupancy rate in our centres. Operating expenses decreased compared to the first quarter of last year, while operating cost recovery improved. We continue to look for additional sources of growth, such as our renewable energy production initiative, which is already contributing positively to NEPI Rockcastle’s results,” said Rüdiger Dany, CEO of NEPI Rockcastle.
The vacancy rate of commercial premises, reported on March 31, 2024, was 2.2 percent, a similar level to that on December 31, 2023.
The value of the investment portfolio reached the threshold of 7 billion euros on March 31, 2024 (including Promenada Novi Sad in Serbia, a property held for sale), 0.2 percent more than in December 2023, thanks to investments in development made in the first quarter of 2024.
Work on development projects under construction is proceeding according to schedule and within established budget limits. In Romania, the extension of Promenada București is scheduled for inauguration in the fourth quarter (Q4) of 2026. Leasing conditions have already been agreed for 52 percent of the total leasable area, which will be available following the extension. Also, the 5,900 sqm expansion of Ploiești Shopping City is due to be completed in Q4 2024, and lease terms have been agreed for 79 percent of the additional area.
The first phase of the company’s green energy project, which involves the installation of photovoltaic panels in 27 NEPI Rockcastle properties in Romania, is almost complete. To date, the investment in this project amounts to 34 million euros, with a total installed energy capacity of 38 MW. Procurement has begun for the second stage of this project, which involves an expansion of the program to other markets where the company is active.
The value of NEPI Rockcastle’s development projects under construction or under authorization is over 650 million euros, of which a total of 206 million euros has been invested by March 31, 2024.
