NEPI Rockcastle delivered a robust start to 2026, with resilient operating trends in the first quarter (Q1) of 2026. Net rental and related income (NOI) in Q1 was €157.7 million, up 3.4% (Q1 2025: €152.5 million). Property NOI increased by 3.2% to €155.4 million (Q1 2025: €150.6 million). Net revenue from energy activities increased to €2.3 million (Q1 2025: €1.9 million), reflecting the ongoing scaling of the Group’s renewable energy platform. Cost recoveries remained strong, with service charge income covering 96% of property operating expenses. The Group continues to benefit from inflation-linked rental agreements and proactive asset management across the portfolio.
Like-for-like tenant sales increased by 3.8% in Q1 2026, with growth outpacing inflation. Footfall remained broadly stable (+0.6%), while average basket size increased by 3.3%, supporting overall sales growth. EPRA vacancy remained very low at 1.8%. Cash collection stayed strong, with a collection rate of 98% for Q1 2026 and 99.9% for 2025 revenues, as of May 2026.
Marek Noetzel, NEPI Rockcastle’s CEO, said, “The first quarter of 2026 confirms the underlying quality of our portfolio. We continue to capture rental growth through indexation and active asset management, while maintaining very high occupancy and strong collection rates. Momentum in markets such as Poland and Croatia remains encouraging, and our flagship assets continue to demonstrate pricing power and resilience. We are advancing our real estate development pipeline in line with our plan, with key projects such as the Promenada Bucharest extension progressing as scheduled. In parallel, we are accelerating the roll-out of photovoltaic (PV) capacity across the portfolio and progressing greenfield PV projects in Romania, reinforcing the long-term potential of our energy platform as a complementary growth driver for the Group. These priorities, combined with prudent balance sheet management, position us well to deliver on our 2026 objectives despite a more challenging macroeconomic backdrop in certain markets. Our portfolio quality, strong tenant base and disciplined capital allocation continue to support resilient, sustainable growth.”
The Group maintained a strong balance sheet and liquidity profile as at 31 March 2026. Cash and cash equivalents increased to €565 million (31 December 2025: €314 million), primarily driven by financing inflows during the period. In parallel, the Company continues to actively manage its debt maturity profile and interest-rate exposure.
The Group’s loan-to-value ratio (LTV) was 32.4% at 31 March 2026, below the Company’s 35% long-term upper threshold.
Investment property (including investment property in use and under development) amounted to €8.26 billion as at 31 March 2026 (31 December 2025: €8.23 billion). No property valuations were performed during Q1 2026. In line with the Company’s policy, independent valuations are carried out twice a year and are included in the half-year and year-end financial reports.
Like-for-like tenant sales (excluding hypermarkets) increased by 3.8% in Q1 2026, with performance strongest in January before moderating in February and March due mainly to a strong comparative base in the prior year.
The tenant sales growth reflects the continued relevance of the Group’s dominant assets and the benefits of targeted customer-experience upgrades. Performance across countries varied, with the strongest momentum in Poland and Croatia, steady progress in Bulgaria and Hungary, and more moderate trends in Romania and Slovakia against a softer consumer backdrop.
At the segment level, Q1 2026 performance remained broad-based. Entertainment and Services recorded double-digit growth, while Health & Beauty and Fashion Complements also outperformed. Fashion, the largest category, grew by 2.6%, while the only segments in negative territory were Electronics and Furnishings & DIY. The strength of the best-performing segments validates the Group’s deliberate tenant mix positioning, providing a buffer against cyclical slowdowns in Electronics and Furnishings & DIY.
Leasing activity remained strong. During Q1 2026, 315 leases were signed across 78,382 sqm of gross lettable area (GLA), of which 108, representing 43% by GLA, related to new leases accounting for 1.4% of the Group’s GLA. The remaining 207 leases were renewals. New leasing activity continued to be anchored by international retailers, representing around half of new-lease GLA. The blended base rent uplift was 2.2% above indexation.
Construction and permitting advanced in line with plans across key projects. The Promenada Bucharest extension remains on schedule, with 85% of the overall mixed-use scheme GLA signed or with terms agreed. The retail element is planned to open in Q2 2027. In Bulgaria, Promenada Plovdiv continued progressing through the permitting process, with final permits expected in Q2 2026. In Romania, a building permit was obtained for Galati Retail Park, with the opening expected in H2 2027 and the majority of GLA already secured through leases signed or agreed.
NEPI Rockcastle’s development pipeline exceeds €800 million over the next three years, including developments, extensions, refurbishments and the green energy programme, of which €338 million had been spent by the end of Q1 2026.
