Distributable earnings per share were 30.12 eurocents for the six months to 30 June 2024, 5.6% higher than in H1 2023. The Board has declared a dividend of 27.11 eurocents per share for H1 2024, corresponding to a 90% dividend pay-out ratio.
The Group delivered a strong performance across all key metrics. Tenant sales were 8.7% higher against the same period in 2023 and the average basket size increased by 8.2%. It signed 73% of new leases with international retailers, attracted by the higher growth potential its CEE markets offer. The Company’s rents grew above the rate of inflation which helped drive a valuation gain of 134 million Euro, up 2% on portfolio value at 31st December 2023, and its loan to value ratio remained stable at 32.2%. NEPI Rockcastle maintains a strong liquidity position. Available cash, together with a 387 million Euro syndicated loan with the IFC, means it has sufficient funds to repay a 500 million Euro bond maturing in November 2024 – the only significant debt maturity until October 2026.
Rüdiger Dany, NEPI Rockcastle’s CEO said: “We continue to perform strongly amid clear signs that the economic outlook for our core Central and Eastern European markets is stabilising and consumer confidence is improving. Tenant sales increased across all retail categories in our shopping centres, underlining the attractiveness of our locations and the resilience of the CEE consumer. Base rents and turnover rents are going up while recoveries of operating costs and the occupancy cost ratio remain at sustainable levels.
Strong underlying rental growth resulted in higher NOI forecasts and, in turn, higher valuations. NEPI Rockcastle’s portfolio was valued at 7 billion Euro, contributing to a conservative loan-to-value ratio well below our strategic 35% threshold. We continue to be very prudent in our liability management and secured the resources to repay the bond maturing in November 2024 almost a year in advance. This sound financial position enables the Company to continue distributing 90% of earnings as dividends and the better-than-expected results led us to upgrade our guidance for this year’s growth in distributable earnings per share from 4% to 5.5%.”
