NEPI ROCKCASTLE (NRP) Q4 2025 earnings summary

Executive summary

• Achieved 3.1% growth in distributable earnings per share for 2025, exceeding guidance, driven by operational performance, acquisitions, and strategic developments including Silesia City Center and Magnolia Park integration.

• Portfolio balanced between Poland and Romania (each 35%) after major 2024 acquisitions, with 60 assets across 8 countries.

• Maintained market leadership in Central Eastern Europe, benefiting from regional economic growth, low unemployment, and high-quality retail and mixed-use properties.

• Continued expansion into renewable energy, with significant investments in PV and battery storage projects.

• Leadership transition with new CEO and management team in place, supporting succession and growth.

Financial highlights

• Net operating income (NOI) grew 11.2% overall, reaching €618m in 2025; like-for-like NOI up 4.4% year-over-year.

• Distributable earnings per share (DEPS) grew 3.1% to 62.03 € cents; H2 2025 dividend of 27.88 € cents per share with a 90% payout ratio.

• Two major acquisitions contributed €58 million additional NOI, representing 9.4% of total NOI.

• Portfolio valuation increased by €162 million, reaching €8.2 billion in assets.

• Four-year growth: NOI up 78%, property value up 41%, distributable earnings up 110% since 2021.

Outlook and guidance

• 2026 distributable earnings per share expected to grow by 3%, double the anticipated Eurozone inflation rate.

• Guidance reflects ongoing development costs, refinancing of bonds at higher rates, and delayed income from major projects.

• Medium-term growth expected at 3–5% per year, fueled by organic growth, developments, acquisitions, and energy business.

• Focus on organic NOI growth, M&A opportunities, new developments, and expanding green energy business.

• Indexation and rental uplifts for 2026 expected between 1.5%–2%.