The shopping center vacancy rate stayed at 1.6%.
“The first half of 2025 saw a consolidation of the growth generated by NEPI Rockcastle’s strategy of consistently investing in premium properties with strong fundamentals. We also continue to add value through developments, not least in the renewable energy sector, which has the potential to become an important growth segment for the Group once the current ongoing major investments therein are completed,” said Rüdiger Dany, Chief Executive Officer of NEPI Rockcastle.
Strong increase in average basket (+9.7%) and tenant sales growth:
– Footfall in H1 2025 was stable (-0.2%) compared to H1/2024, in LFL properties.
– Tenant sales were 3.9% higher in H1/2025 than H1/2024 (LFL, excluding hypermarkets), while the average basket size (including the impact of properties acquired in 2024) rose by 9.7%.
– The collection rate for H1/2025 reported revenues was over 99% by mid-August.
– European Public Real Estate Association (EPRA) occupancy rate was 98.2% on June 30, 2025.
Acquisitions and organic growth combine to deliver a solid 12.1% rise in NOI
– NOI increased by 12.1% to EUR307 million in H1/2025 (H1/2024: EUR274 million). On a like-for-like (LFL) basis, NOI was 4.4% higher in H1/2025 compared to H1/2024, excluding the impact of acquisitions (Magnolia Park and Silesia City Center) and disposals (Promenada Novi Sad) completed after June 30, 2024.
– Revenue from energy activities was €4.9 million in H1/2025, up 19.7% from the comparative period.
– Property operating expenses increased by 10.4% between H1/2024 and H1/2025, driven mostly by higher utility expenses. However, the cost recovery rate was the same as in H1 2024 (94%), as service charge income increased at a similar rate.
The Group signed new leases and lease extensions for a total of 167,000 square meters gross lettable area (GLA) in H1/2025. New leases accounted for 26% of this total, of which 18% were signed with international retailers and 8% with national and local tenants, while 74% of the signings were renewals of existing leases. Underpinned by continued strong demand for space in the Group’s shopping centers, the average rental uplift was 5.3% above indexation in H1/2025.
During H1/2025 the Group welcomed tenants to several new units including Sports Direct (Promenada Craiova), Tous (Paradise Center), Mohito (Serdika Center), Chanel (Forum Gdansk Shopping Center), Oysho (Arena Mall), House (Forum Liberec Shopping Centre).
NEPI Rockcastle invested approximately €66 million in developments, photovoltaic plants and capital expenditure (capex) in H1/2025.
Works at development projects under construction are on schedule and within budget. The extension of Promenada Bucharest is expected to open in Q1/2027. Lease terms have been agreed for 68% of the GLA. The redevelopment of Bonarka City Center is due for completion in Q2/2026, with lease terms agreed for 95% of the GLA. Refurbishment works on Arena Mall in Budapest started in April 2024 and will be completed in Q2/2028. Lease terms have been agreed for 96% of the refurbished GLA. The extension of Pogoria Shopping Centre (Dąbrowa Górnicza, Poland) started in January 2025 and is 34% complete. The additional 4,800 square meters of GLA will open in Q1/2026. Lease terms have been agreed for 97% of the new space.
Permitting for Promenada Plovdiv, a 60,500 sqms of GLA greenfield development in Bulgaria’s second largest city, is ongoing, with the last permits expected to be obtained by Q1/2026. Opening is estimated during Q3/2027. There is strong interest from retailers and lease terms for 40% of the GLA have already been agreed. The building permit for the retail component of Galati Retail Park, a mixed-use scheme, is expected to be obtained in Q3/2025. The project, which includes 41,000 sqms of retail GLA and 21,500 sqms of residential space, is scheduled to open in Q4/2026. Lease terms have been agreed for 64% of the retail scheme.
Permitting was completed for the second phase of the Company’s green energy project, which involves installing photovoltaic panels in 23 locations outside Romania, with a total planned power capacity of 15 MW. There are 16 power facilities under construction (in Poland, Bulgaria, Hungary and Croatia), while seven others are in the procurement process (in Slovakia and Czech Republic).
There was significant progress with the third phase of the green energy project, which involves developing two large greenfield photovoltaic plants in Romania. The first plant will have an installed power capacity of 54 MW and is expected to become operational by the end of 2025. The second plant, with a planned power capacity of 105 MW, shall be substantially developed during 2026. These projects will significantly expand the Group’s green energy generating capacity, increase the coverage of the electricity consumption needs of its tenants and make a positive contribution to NOI.
The total cost of projects under construction or permitting is approximately EUR795 million, of which EUR276 million has already been invested by June 30, 2025. The planned capital expenditures for 2025 are around EUR230-EUR240 million, less than anticipated at the start of the year, as permitting processes for Promenada Plovdiv and Galati Retail Park have taken longer than initially anticipated.