NEPI ROCKCASTLE (NRP) Q2 2026 earnings summary

Executive summary

• Achieved record-high operational and financial performance in H1 2026, with distributable earnings per share up 3.5% to 32.14 euro cents and new CEO and COO leading the team.

• Expanded into Spain with the first acquisition (MegaPark Barakaldo), signaling growth beyond CEE and increasing the portfolio to over 60 assets across 8+ countries.

• Maintained high occupancy (98.2%) and collection rates (99%), with robust tenant sales and strong leasing activity.

• Four-pillar growth strategy continues: organic growth, developments, M&A, and new income streams, notably renewable energy.

• S&P credit rating upgraded to BBB+ in July 2026, reflecting strengthened financial position.

Financial highlights

• Net Operating Income (NOI) grew 3.8% year-over-year to €318 million, outpacing inflation; like-for-like property NOI up 3.3%.

• Distributable earnings per share rose 3.5% to 32.14 euro cents; dividend payout of 28.93 euro cents per share, maintaining a 90% payout ratio.

• Fair valuation gain of €126 million, driven by NOI growth, with portfolio value at €8.4 billion as of June 2026.

• Liquidity at €1.2 billion, including €740 million in revolving credit facilities; loan-to-value ratio at 33.1%.

• Energy business contributed €5.7 million in NOI, with 200 MW under development and €7.6 million in revenue.

Outlook and guidance

• Upgraded full-year distributable earnings guidance to 3.5%-4% growth, including Spain acquisition and finance cost changes.

• Development pipeline of over €800 million, with major retail and energy projects to be delivered by 2028.

• Continued focus on expanding in Iberia (Spain and Portugal) and potentially Italy, while remaining open to CEE opportunities.

• REIT regime to be adopted from January 2027, expected to maintain group tax rate at 8%-10%.

• Guidance excludes potential impacts from geopolitical instability or major macroeconomic disruptions.