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credit: NEPI Rockcastle; Bellier Financial
credit: NEPI Rockcastle; Bellier Financial

NEPI Rockcastle Delivers Record Financial Results for 2023 with Net Operating Income Jumping to €491 million and recurring DEPS up 17.1% on 2022

NEPI Rockcastle generated the highest distributable earnings per share in its history in 2023, exceeding the previous record set in 2019. This marks not only a complete recovery from the effects of the Covid-19 pandemic, but also a sustainable step-up in performance determined by continuing investments in its portfolio. Throughout the year, the Company updated its earnings guidance to the upside as management took note of the strong results coming in. Even so, the 17.1% increase in recurring DEPS achieved (9.3% on a nominal basis) exceeded its latest update.

“NEPI Rockcastle has delivered remarkable results in 2023. The markets that we operate in are forecast to have some of the strongest GDP growth in Europe in 2024, which bodes well not only for consumer confidence and the performance of our tenants, but also for NEPI Rockcastle’s continued growth,” says Rüdiger Dany, CEO, NEPI Rockcastle.

The bedrock of the results is the operational performance of the property portfolio. Several factors explain the jump in NOI by 21% year-on-year to €491 million. The acquisitions made in late-2022 contributed significantly to performance as did a 13% increase in like-for-like NOI. Inflation protection through the indexation clauses embedded in lease agreements has served NEPI Rockcastle well during the high inflationary environment in CEE over the past two years. Active asset management achieved rental uplifts averaging 8% above indexation on new lettings and renewals. The growth in turnover rents and short-term income outpaced that of base rents in 2023. The recovery of operating expenses through tenant contributions improved, leading to lower unrecovered costs than in 2022.

NEPI Rockcastle’s robust results were underpinned by strong sales from tenants and a confident CEE consumer. The Company saw a significant improvement in all key trading data, with tenant sales up 12.6% and consumer spend per basket rising 7.8%, while footfall was 4.6% higher. The strong trading performance has helped to maintain balance between the Company’s and its tenants’ results, reflected in a stable occupancy cost ratio of 12.2%. The drop in vacancy to 2.2% further proves the appeal of the Company’s properties for retailers.

NEPI Rockcastle continued to strengthen its balance sheet to protect against macroeconomic risks and ensure the resources for future growth. To this end, shareholders were offered the option for scrip dividends, which increased liquidity and reduced the Company’s loan to value ratio to 32.2%, well below the upper threshold of 35%. NEPI Rockcastle also contracted a €387 million unsecured green loan from the International Finance Corporation to enable the redemption of bonds maturing in November 2024 irrespective of the conditions in the capital markets. The strong operating performance of our properties led to a valuation uplift of €165 million, overcoming a negative shift in market yields.

Sustainable growth remains a key focus for NEPI Rockcastle. In 2023 the Company delivered Promenada Craiova in southern Romania, the largest new retail scheme to open in CEE in 2023, and completed the Group’s first residential project, both on time and on budget. Sustainability lies at the core of operations and developments and significant progress is being made to reduce emissions and increase the energy efficiency of our assets, as part of a comprehensive sustainability strategy launched in 2022. The shining example of NEPI Rockcastle’s progress in this area is the fact that it is now producing solar energy at 27 of our Romanian properties.


  • Net rental and related income (referred to as ‘Net Operating Income’ or ‘NOI’) was up 21% from 2022 at €491 million. Like-for-like (LFL) NOI growth was 13% excluding the impact from the three acquisitions made in 2022.
  • Gross rental income increased by 21%, from €422 million in 2022 to €510 million in 2023. Base rent was up 18%, driven by indexation, rental uplifts and higher occupancy. Strong tenant sales led to a 29% increase in overage and turnover rent, while short-term income grew by 26%.
  • The collection rate was 98% of 2023 reported revenues as of 31 December 2023, increasing to over 99% by the end of January 2024.
  • Investment property as of 31 December 2023 was valued at €6.8 billion, compared to €6.6 billion at the end of 2022. The increase is due to investments in developments, as well as positive fair value adjustments of €165 million. Investment property held for sale were €152 million on 31 December 2023 (up from €19 million at the end of 2022), bringing the total value of the Group’s portfolio to €6.9 billion.
  • The Group’s liquidity position as of 31 December 2023 was €909 million, including €339 million in cash and €570 million in undrawn committed credit facilities.
  • Loan-to-value (LTV) was 32.2% as of 31 December 2023, comfortably below the strategic upper threshold of 35%.

To read NEPI Rockcastle´s full results announcement click here and the short form regulatory announcement can be read here.


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