NEPI ROCKCASTLE (NRP) Q3 2024 earnings summary

Executive summary

• Net operating income (NOI) grew 12.3% to €411 million in 9M 2024 versus 9M 2023, with like-for-like NOI up 8.4%.

• Tenant sales rose 9% year-over-year (LFL, excluding hypermarkets), with footfall up 1.4% and average basket size up 8.3%.

• EPRA vacancy rate dropped to 2.3% at Q3 2024 end, supported by strong leasing activity and 99% rent collection.

• Major strategic initiatives included a €300 million equity raise, €500 million green bond issue, and significant property transactions.

Financial highlights

• Investment portfolio valued at €7.1 billion as of 30 September 2024, rising to €7.4 billion post-October transactions.

• Loan-to-value (LTV) ratio at 30.7% as of 30 September 2024, improving to 29.2% by end-October.

• Cash position of €815 million and €670 million in undrawn committed credit facilities at 30 September 2024.

• Average cost of debt for 9M 2024 was 3.0% (2.6% adjusted for finance income from excess liquidity).

Outlook and guidance

• Distributable earnings per share for 2024 expected to be approximately 5.5% higher than 2023, with a 90% dividend payout ratio.

• Guidance assumes current trading trends continue and excludes major geopolitical or macroeconomic disruptions.