Credit: Nepi Rockcastle
Ticker

NEPI Rockcastle gives update on the impact of Covid-19

Businesses deemed non-essential by the authorities which are located in the Group’s shopping centres in Bulgaria, Czech Republic, Croatia, Lithuania, Poland, Romania, Serbia and Slovakia are now temporarily closed.

NEPI Rockcastle provided an initial update concerning the impact of the COVID-19 related government measures on its activities in an announcement dated 17 March 2020. Since that date, the authorities in Romania, Serbia and Croatia have increased the safety measures to contain the spreading of COVID-19. New measures include temporarily limiting the operations of some of our shopping centres’ tenants.

Businesses deemed non-essential by the authorities which are located in the Group’s shopping centres in Bulgaria, Czech Republic, Croatia, Lithuania, Poland, Romania, Serbia and Slovakia are now temporarily closed, while pharmacies, groceries and other food stores remain open in all locations. In some properties, the food court tenants are operating only for deliveries or pick-ups. All shops in the Group’s Hungarian propertiesare open, except for cinemas and entertainment operators. Office properties are fully-functional, although many businesses (including NEPI Rockcastle) have implemented work-from-home policies to limit social interactions.

NEPI Rockcastle’s priority remains the health and wellbeing of its customers, partners and employees, andthe appropriate measures have been enforced in all properties. All buildings remain open and are serviced, with a continuous focus on cleaning and ensuring customer safety. NEPI Rockcastle continues to support the communities where it operates by donating to the Red Cross and working on implementing other platforms to encourage donations to and cooperation with NGOs.

The Group notes that large international and national tenants (companies with assets and/or turnover in excessof €200 million) occupy 67% of its lettable area, lowering the risk of tenant default. Also, Auchan andCarrefour, which are estimated to have higher-than-usual sales in the coming period, are two of its largest tenants. Approximately 91.2% of the Group’s gross rental income is fixed rent, and only 3.3% is overage rent(paid based on sales, on top of fixed rent). The occupancy cost ratio of its tenants was 11.9% in 2019, which is prudent by industry standards. The Group continues to have regular dialogue with its partners and encourages the use of the fiscal and monetary stimulus provided by governments.

Zagreb earthquake

The region surrounding Zagreb, Croatia, was impacted by a 5.4 magnitude earthquake in the early morning of 22 March 2020, followed by several aftershocks. NEPI Rockcastle’s local team is unharmed and no damage to its shopping centre and adjacent retail park has been identified.

NEPI Rockcastle will continue to assess the situation and provide further updates when appropriate.

Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Ticker MORE

intu: Statement on COVID-19 impact

Intu's three priorities are to look after its employees, to protect its business and to play its role in society.

Josip Kardun joins Meyer Bergman as CIO

Josip Kardun has 20 years of pan-European real estate investment and management experience. He previously served as CEO of Blackstone’s largest European operating platform where he managed over €10 billion of assets across 14 countries.

Mipim will not take place from June 2 to 5, 2020

MIPIM 2020, scheduled to take place June 2-5 in Cannes, is transforming into a two-day, Paris-based gathering of real estate and technology leaders in September and a new online experience, MIPIM Connect, available year-round.

THE ACROSS APP IS NOW AVAILABLE!

The new ACROSS App provides even faster and more comfortable access to the latest industry news. Test our new service right now! Installing the app and access to our constantly updated ticker news and featured articles is free.

European retailing: Covid-19 separates e-commerce leaders from rest

Europe’s retailing sector is reeling from the shock of lockdowns across the region to limit the spread of the Covid-19 pandemic, but the impact on the sector’s credit outlook will be uneven, says Scope Ratings.

Citycon Oyj weakens its prospects and withdraws its financial guidance due to uncertain market situation

Citycon Oyj assesses that its prospects for 2020 have weakened and withdraws its guidance for 2020 issued on 6 February 2020. At this point, the company does not specify its direct operating profit, EPRA EPS or adjusted EPRA EPS forecast for this year in more detail due to the uncertain market situation.