NEPI ROCKCASTLE (NRP) H2 2024 earnings summary

Executive summary

• Achieved record operational results in 2024, with distributable earnings up 11.8% to €413 million and distributable earnings per share rising 5.6%, driven by strong NOI growth, strategic acquisitions, and robust CEE market performance.

• Expanded portfolio to 60 assets across 8 countries, with Poland and Romania as the largest markets; exited Serbia at an 18% premium to book value.

• Integrated 19 assets into in-house management, enhancing operational control and digitalization.

• Maintained a strong balance sheet with a loan-to-value ratio of 32.1% and liquidity of €1.1 billion, despite major acquisitions and ongoing development investments.

• Advanced green energy initiatives, with 84% renewable electricity and plans to reach 48% self-produced PV by 2026.

Financial highlights

• Net operating income (NOI) grew 13.2% year-over-year to €556 million, with like-for-like NOI up 9.2%.

• Distributable earnings per share reached 60.17 euro cents, up 5.6%; total distributable earnings rose 11.8%.

• Portfolio value increased to €7.9 billion, a 16% year-over-year rise.

• Total shareholder return was 22%, with share price up 22.6% year-over-year.

• EPRA vacancy rate at a historic low of 1.7% overall, 1.4% in retail.

Outlook and guidance

• Distributable earnings expected to grow 5% in 2025, with per-share growth of 1.5% due to higher share count and funding costs.

• Dividend payout ratio maintained at 90%, with H2 2024 dividend at 27.05 euro cents per share.

• Energy revenue expected to remain flat at €9–10 million in 2025, with significant CapEx and ramp-up from 2026.

• Net cost of debt projected to rise from 2.7% to 3.1–3.2% in 2025.

• Guidance assumes stable trading trends, excluding major macroeconomic disruptions.