NEPI Rockcastle, Europe’s third-largest listed retail real estate company by portfolio value, delivered a strong operational performance in the first half of 2026 with the Group’s net operating income, including energy activity, rising by 3.8% year-on-year to €318 million. This was driven by rental indexation, active leasing optimisation and tighter cost control – with a recovery rate of 96%. Demand remained buoyant in Central and Eastern Europe, with consumers continuing to spend more on average during each visit to NEPI Rockcastle shopping centres, with average basket spend up 3.3%. This supported like-for-like tenant sales, which were 2.7% higher than a year ago. Occupancy remained close to full at 98.2%. The strong operating performance led to a €126 million valuation uplift, taking the total portfolio value to €8.4 billion.
Distributable earnings per share (DEPS) increased by 3.5% in H1 2026 relative to H1 2025 and, on the strength of NEPI Rockcastle’s results, the Board has raised its guidance for the full year. The company now expects DEPS for 2026 to be 3.5%-4% higher than the DEPS of 62.03 cents per share in 2025.
Marek Noetzel, Chief Executive Officer, said: “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. We continue to invest in the future of the business across the portfolio, ranging from the extension of Promenada Bucharest, the largest retail development in CEE, to a renewable energy programme where our first greenfield plant in Romania is now producing power for our tenants. The strength of our balance sheet was also acknowledged by S&P Global Ratings, which upgraded the Company to BBB+ in July 2026. This enables us to keep placing capital into value-enhancing opportunities, including our first investment outside Central and Eastern European markets – in Bilbao, Spain, which we have just announced. 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.”
BUSINESS HIGHLIGHTS
- The property-related like-for-like NOI increased 3.3% to €312 million in H1 2026, underpinned by the indexation of base rents, higher short-term income and better cost recovery.
- The net result from renewable energy production was €5.7 million in H1 2026, 38% above the comparative period, as newly commissioned photovoltaic capacity came on stream.
- NEPI Rockcastle had a strong liquidity position of €1.2 billion on 30 June 2026, consisting of cash and cash equivalents of €461 million and undrawn committed credit facilities of €740 million.
- The Group signed a €250 million green facility loan with the European Bank for Reconstruction and Development (EBRD) after the period end.
- LTV was 33.1% on 30 June 2026 (31 December 2025: 32.8%) and comfortably below the 35% long-term strategic threshold.
- The Group continues to rotate capital towards higher-growth assets. In May 2026, it entered into a non-binding agreement to dispose of Ozas Shopping and Entertainment Centre in Vilnius, Lithuania, which is classified as held, with completion planned by the end of 2026. In August 2026, the Group agreed to acquire MegaPark Barakaldo in Bilbao for a consideration of €252 million, its first investment in Spain and the Western European market, with closing expected by the end of September 2026.
OPERATING PERFORMANCE
Footfall in H1 2026 was broadly flat (-0.4%) compared to H1 2025, in LFL properties. Overall, the number of visitors has been remarkably stable over the last three years, despite ongoing economic uncertainties in the region. The average basket size continued to expand (+3.3% in H1 2026 vs H1 2025) following the trend of increasing spend per visit and demonstrating the resilience of consumers in CEE.
LFL tenant sales in H1 2026 were 2.7% higher than H1 2025, improving in most retail categories. Health & Beauty (+8.4%), Services (+8.3%) and Fashion Complements (+6.9%) posted the strongest growth. Sales in the largest segment, Fashion, were 1.6% higher.
LEASING ACTIVITY
The Group signed 613 new leases and lease extensions for a total of 162,900m2 GLA (equivalent of 6.8%) in H1 2026. New leases accounted for 39% of the total by gross lettable area (GLA), of which 18% were signed with international retailers and 21% with national and local tenants – 61% of the signings were renewals of existing leases.
The 250 new leases signed in H1 2026 equated to 63,900 sqm of retail space, equivalent to 2.75% of the Group’s GLA, and 46% of this space was let to international retailers. Leading brands continued to choose the Group’s centres for flagship and concept stores, with significant signings in Promenada Bucharest, Bonarka City Center, Silesia City Center, Shopping City Timisoara, Solaris Shopping Centre and Ozas Shopping and Entertainment Centre.
New units in H1 2026 included Mango, opening its largest store in Krakow, with Medicine and Massimo Dutti debuting their latest flagship concepts in Silesia City Center and City Park Constanta respectively. Primark opened at Shopping City Sibiu in July 2026, its fifth store across the Group’s portfolio, shortly after the period end.
DEVELOPMENT & GREEN ENERGY UPDATE
The total cost of developments, extensions, refurbishments and redevelopments under construction or in permitting is over €820 million, of which €354 million had already been invested by 30 June 2026.
Works at development projects under construction are on schedule and within budget. The extension of Promenada Bucharest is expected to open in April 2027. Lease terms have been agreed or signed for 95% of the retail GLA, while negotiations for the office component are well advanced. The redevelopment of Bonarka City Center is due for completion in Q1 2027, with lease terms agreed for 97% of the GLA. Refurbishment works on Arena Mall in Budapest are 60% complete and will be finalised in Q2 2028. The extension of Pogoria Shopping Centre (Dąbrowa Górnicza, Poland) opened in Q1 2026, adding 5,100 sqm GLA. The building permit for the 8,800 sqm GLA extension of Karolinka Opole was issued in May 2026; construction is due to start in September 2026 and to be completed in Q2 2028, with lease terms signed or under advanced negotiation for the entire new space.
Permitting for Promenada Plovdiv, a 60,500 sqm GLA greenfield development in Bulgaria’s second largest city, is ongoing. The building permit for the retail component of Galati Retail Park (Romania) is expected in Q4 2026, and the 36,000 sqm GLA retail scheme is planned to open in the second half of 2027. Lease terms have been agreed or signed for 88% of the retail area.
Permitting was fully completed for the roll-out of on-site photovoltaic installations outside Romania and Lithuania, with a total planned power capacity of 12.1 MW and a total investment of €10 million.
There was meaningful progress with the greenfield energy projects, which involve developing two off-site photovoltaic plants in Romania. The first plant, in Chisineu-Cris, with an installed power capacity of 54 MW, is complete and in commercial operation, having generated €1.8 million by the end of June 2026, in line with expectations. The second plant in Aricestii Rahtivani, with a power capacity of 60 MW, is fully permitted, with physical completion and testing expected by the end of 2026. These projects significantly expand the Group’s green energy generating capacity, increase the coverage of the electricity consumption needs of its tenants and make a positive contribution to net rental and related income (NOI).
