NEPI Rockcastle Company Profile

Background

NEPI Rockcastle is Europe's third-largest listed retail real estate company by investment portfolio value and the leading owner, operator, and developer of shopping centers in Central and Eastern Europe (CEE). With a portfolio exceeding €7 billion, the company operates across eight CEE countries, including Romania, Poland, Bulgaria, Hungary, Slovakia, Croatia, the Czech Republic, and Lithuania. NEPI Rockcastle's mission is to create long-term value through exceptional real estate investments, focusing on sustainability, community engagement, and enhancing the quality of life in the regions they serve.

Key Strategic Focus

The company's strategic focus centers on:

Core Objectives: Delivering stable income through high-quality retail properties and achieving sustainable growth.

Specialization: Dominant shopping centers in CEE markets.

Key Technologies: Implementation of renewable energy solutions, including photovoltaic installations.

Primary Markets: Romania and Poland, with significant presence in other CEE countries.

Financials and Funding

NEPI Rockcastle has demonstrated robust financial performance:

2024 Financial Highlights:

Investment Property Value: €7.9 billion, up from €6.8 billion in 2023.

Net Debt/EBITDA: 6.4x in 2022, projected to decrease to 5.4x in 2023.

EPRA Net Reinstatement Value (NRV) per Share: €7.38 as of December 31, 2024, a 5.7% increase from €6.98 in 2023.

Funding Initiatives:

Green Bond Issuance: In September 2024, issued a €500 million Green Bond maturing in January 2032 with a 4.25% annual fixed coupon.

Equity Raise: In October 2024, completed a €300 million equity raise through an accelerated bookbuild to support portfolio expansion.

Pipeline Development

NEPI Rockcastle's development pipeline includes:

Promenada Bucharest Extension: Adding approximately 58,000 sqm of new space with a total capex of €220 million.

Promenada Craiova: Opened in October 2023, featuring a 54,000 sqm shopping center and a 10,000 sqm retail park, with a total capex of €136 million.

Technological Platform and Innovation

The company emphasizes sustainability and innovation:

Renewable Energy: Installed 38 MW of photovoltaic capacity across 28 properties, supplying 6% of total electricity consumption. Plans to expand capacity to 212 MW by 2026, covering 48% of electricity needs.

Sustainability Certifications: 100% of the eligible portfolio is BREEAM certified, affirming commitment to sustainable building practices.

Leadership Team

Rüdiger Dany: Chief Executive Officer

Eliza Predoiu: Chief Financial Officer

Leadership Changes

CEO Appointment: Rüdiger Dany appointed as CEO in 2023, bringing extensive experience in retail real estate management.

Competitor Profile

Market Insights and Dynamics

The CEE retail real estate market is characterized by:

Market Size: Significant growth potential with increasing consumer spending.

Industry Trends: Emphasis on sustainability, digital integration, and experiential retail.

Competitor Analysis

Key competitors include:

EPP N.V.: Focuses on retail properties in Poland.

Atrium European Real Estate: Operates shopping centers across CEE.

GTC S.A.: Develops and manages commercial properties in the region.

Strategic Collaborations and Partnerships

NEPI Rockcastle has established significant partnerships:

Retailers: Collaborates with major international and regional retailers, including Inditex brands and Carrefour.

Sustainability Organizations: Member of the European Council of Shopping Places (ECSP), U.S. Green Building Council (USGBC), and European Public Real Estate Association (EPRA).