NEPI Rockcastle PLC reported distributable earnings per share of EUR 0.3214 for the first half of 2026, a 3.5% increase from the same period last year, as net operating income rose 3.8% to EUR 318 million. Like-for-like NOI growth reached 3.3%, while tenant sales outpaced indexation by 2.7%. The company maintained a collection rate of 99.2% and an EPRA vacancy rate of 1.8% at the end of June, up from 1.0% at the end of 2025.
The portfolio’s valuation increased by EUR 126 million to EUR 8.4 billion, with total assets exceeding EUR 9 billion. The loan-to-value ratio stood at 33%, supported by EUR 1.2 billion in liquidity, including EUR 740 million in revolving credit facilities and EUR 460 million in cash. Return on equity over the last twelve months reached 17%, while the gross profit margin remained robust at 87.62%.
Management raised full-year 2026 NOI guidance to a range of 3.5% to 4.0%, up from the prior forecast of 3%. The outlook reflects steady growth across core markets, including Poland, where dominant shopping centers continued to perform strongly despite regional macroeconomic challenges. Romania faced softer conditions due to higher taxes and VAT increases, while Bulgaria and Croatia contributed through asset upgrades and currency alignment.
Expansion into Spain remained a strategic priority, with acquisitions such as MegaPark and Bilbao contributing an initial yield of 6.8%. Management noted Spain’s long-term potential, citing a EUR 1 trillion economy and EUR 90 billion in incoming EU funds. The company’s development pipeline exceeds EUR 800 million, accounting for roughly 8% of new gross leasable area, with deliveries slated through 2028. Over 200 megawatts of renewable energy infrastructure is under development, including 100 megawatts already commissioned.
NEPI Rockcastle also confirmed plans to adopt REIT status effective January 1, 2027, which is expected to preserve its effective tax rate and exempt the company from the EU’s Pillar Two minimum tax framework. The company intends to refinance bond maturities due in October 2026 and July 2027 in a single transaction if market conditions permit. Shares traded 1.18% lower at $8.01, near the lower end of the 52-week range of $6.62 to $8.24.
