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Nepi Rockcastle hits record net operating income in FY 2022 results

Post-Covid consumers flock back to Nepis shopping centers.

NEPI Rockcastle reported record net operating income of 405 million Euro in its 2022 full-year results, up 17% from 2021, driven by strong tenant turnover and base rental growth. This performance was even more remarkable as it was achieved against a challenging economic background, marked by high inflation, rising interest rates and the energy crisis triggered by the war in Ukraine.

“The resilience of CEE consumers and their willingness to spend, on average, greater amounts per visit coming out of the pandemic, underpinned the performance of NEPI Rockcastle’s shopping centers resulting in a surge in the company’s operating income last year. The business recovered completely after two years of Covid-19, which shows the resilience of physical retail in CEE, the quality of the Group’s properties, and the great work of our team”, said NEPI Rockcastle’s CEO Rüdiger Dany.  

“Despite the opaque economic outlook, we do not anticipate the momentum of NEPI Rockcastle’s growth slowing this year. The major investments we made in 2022, particularly in the high-performing, dominant Forum Gdansk and Copernicus shopping centers in the Polish market, will significantly contribute to operating income in the months ahead. Tenant demand for the Group’s retail space is very strong. Many international retailers entered new markets or expanded their presence in CEE countries by opening new stores in NEPI Rockcastle’s shopping centers. Our lease agreements have built-in inflation protection through indexation and property operating expenses are tightly under control, particularly for energy, where our renewable solar power output is ramping up. We also have a solid liquidity position, with a safe level of debt. NEPI Rockcastle’s loan-to-value (LTV) ratio stands at 35.7%, after the significant investments made in 2022. Excellent operating performance translated into a valuation uplift of the Group’s property portfolio, which outweighed the rise in yields.”


  • Distributable earnings per share (DEPS) for the second half (H2) of 2022 were 29.32 euro cents, which, combined with the interim DEPS of 22.83 euro cents, produces an annual DEPS of 52.15 euro cents, 51.5% higher than in 2021 (34.42 euro cents).
  • Net rental and related income (net operating income) was up 17% from 2021 at approximately €405 million (excluding the share from joint venture shown separately in the financial statements for the first eight months).
  • Gross rental income increased by 14.3%, from €369 million in 2021 to €422 million in 2022 driven by rental uplifts, higher occupancy and significantly higher tenant sales.
  • The average rental uplift in 2022 was 8.7%, supported by asset management initiatives (e.g. re-sizing, merging of units etc.). The base rental uplift on renewals and reletting on a LFL basis was 5.7%.
  • Tenant turnover increased by 31.4% (excluding hypermarkets) compared to 2021 and was 11.7% higher than in the benchmark year of 2019, on a like-for-like (LFL) basis.
  • There were more than 295 million visits in 2022, a 20.8% increase compared to 2021. On a LFL basis, footfall increased by 19.5% vs 2021 and was lower by 11.8% vs 2019.
  • The higher turnover compared with footfall reflects an increase in the average basket size by 27% compared to 2019.
  • Investment property as of 31 December 2022 was valued at €6.6 billion, compared to €5.8 billion at the end of 2021. The increase is due to the acquisitions made during the year; the investments in developments and capital expenditures as well as to the uplift in the value of properties by €142 million for 2022. The revaluation reflects the significant improvement in trading conditions.
  • Liquidity position as of 31 December 2022 was €671 million, including €251 million in cash and €420 million in undrawn committed credit facilities.