JSE-listed NEPI Rockcastle interim distributable earnings increased 3.5% to R6.04, driven by the property company’s large footprint across Europe and growth in its energy segment, as it eyes continued roll-out across its shopping centre assets.
NEPI Rockcastle is important on the JSE because it connects South African investors to one of the largest retail property portfolios in Central and Eastern Europe (CEE), while also strengthening the JSE’s profile as a hub for global property investment.
Marius Barbu, COO for NEPI Rockcastle, said during a briefing of the company’s interim financials to the end of June, that the large portfolio and property footprint helps it to “capture the momentum in any of our countries of operations, and protects us from any single market slowdowns” that may occur.
“The second contributor to our net operating income is the energy growth. It's on the back of the extension of the rooftop PV plants… now shopping centres will be done,” he said.
The higher distributable earnings for the half year enabled NEPI Rockcastle to declare an interim dividend of R5.44 per share. After this, the board of NEPI Rockcastle has revised its full-year guidance released in February 2026, as it now expects total distributed earnings to be 3.5-4% higher than the R11.66 achieved for the 2025 full year.
For the half year under review, tenant sales climbed up 2.7% higher while the average basket size rose by 3.3%.
Net results from the company’s renewable energy production firmed up 38% to €5.7 million as newly commissioned photovoltaic capacity came on stream. NEPI Rockcastle’s collection rate for the 2026 first half reported revenues was 99% by the end of July.
It closed off the period with a liquidity position of €1.2 billion, consisting of cash and cash equivalents of €461m and undrawn committed credit facilities of €740m. Subsequent to the period end, NEPI Rockcastle signed a €250m green facility with the European Bank for Reconstruction and Development (EBRD).
Marek Noetzel, CEO for NEPI Rockcastle, said the company views Spain as an alluring investment opportunity, as other European markets have fewer growth opportunities and complex regulatory hurdles.
“We said why don't we zoom in on Spain? Maybe Italy will follow, but what I wanted to say out of all those detailed proposals is that Southern Europe seems to be most competitive. But at the same time, when you zoom in on Spain, this presents a solid case, as growth is driven by various factors, making Spain very efficient,” explained Noetzel.
During the half-year period, demand “remained buoyant in Central and Eastern Europe with consumers continuing to spend more on average during each visit to NEPI Rockcastle shopping centres.”
This supported like-for-like tenant sales, which were 2.7% higher than a year ago. Occupancy levels remained close to full at 98.2%. This strong operating performance led to a €126m valuation uplift, taking NEPI Rockcastle’s total portfolio value to €8.4bn.
However, footfalls during the interim period flattened out compared to the same period last year, although overall, the number of visitors has been remarkably stable over the last three years, despite ongoing economic uncertainties in the region, explained the company.
NEPI Rockcastle nonetheless continues to rotate capital towards higher-growth assets. In May 2026, it entered into a non-binding agreement to dispose of Ozas Shopping and Entertainment Centre in Vilnius, Lithuania. The company expects to complete the disposal of this asset by the end of the year.
This month, NEPI Rockcastle entered into an agreement to acquire MegaPark Barakaldo in Bilbao for a consideration of €252m, its first investment in Spain and the Western European market. The deal is expected to reach closure by the end of next month.
THE NATIONAL