Wrap Text
Reviewed interim condensed consolidated financial statements for the six months ended 30 June 2023
NEPI Rockcastle N.V.
(formerly NEPI Rockcastle S.A.)
Incorporated and registered in the Netherlands
Registration number 87488329
Share code: NRP
ISIN: NL0015000RT3
("NEPI Rockcastle" or "the Group" or "the Company")
REVIEWED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2023
"NEPI Rockcastle delivered operational excellence against a backdrop of resilient growth in CEE economies
underpinned by higher consumer spending and retail sales in our markets. We have achieved a very strong increase in
net operating income driven by solid rental growth, lower vacancy rates and disciplined cost control, together with the
positive contribution of the acquisitions completed in the second half of 2022.
Economic growth is predicted for the majority of the markets that we operate in, and inflationary pressures seem to be
receding, although the macroeconomic environment remains challenging. We continue to see growing interest from
international retailers seeking to establish or expand their presence across the CEE in our shopping centres attracted by
the solid underlying market fundamentals.
We continue to maintain high levels of liquidity and a conservative loan to value ratio, while also rewarding our
shareholders. The scrip dividend for the H2 2022 distribution, which had an 85% take-up rate, contributed to bringing
down the loan to value ratio to below our 35% threshold. An upward revaluation of the Group's property portfolio
reflected the increasing operational performance of our shopping centres and further reduced the LTV. Distributable
earnings per share increased by 25% in H1 2023 year-on-year and we are on track to deliver the estimated growth for
the entire year."
Rudiger Dany, Chief Executive Officer (CEO)
DISTRIBUTABLE EARNINGS
Distributable earnings per share ('DEPS') were 28.52 eurocents for the six months to 30 June 2023, 24.9% higher than in
H1 2022.
DIVIDEND DECLARATION
The Board has declared a dividend of 25.67 euro cents per share for H1 2023, corresponding to a 90% dividend pay-out
ratio, to be settled as capital repayment (default option). Shareholders can also elect for the settlement of the same
dividend amount as ordinary cash distribution out of distributable profits.
Alternatively, shareholders may elect to receive an amount of 27.10 euro cents per share, corresponding to a 95% pay-out
ratio, as a return of capital by way of an issue of new shares, each credited as fully paid up ('scrip issue'), based on the ratio
that 27.10 euro cents per share bears to the scrip reference price. The scrip reference price will be calculated based on a 3% discount
to the five-day volume-weighted average traded of NEPI Rockcastle's share price on JSE, less dividend declared of 25.67 euro
cents per share.
In line with Dutch legislation, the capital repayment will be paid to shareholders unless they elect to receive either the
scrip issue or the ordinary cash distribution options described above.
A circular containing full details of the election being offered to shareholders, accompanied by announcements on the
Stock Exchange News Service (SENS) of the JSE, A2X and Euronext Amsterdam will be issued in due course.
KEY FINANCIAL INFORMATION
%
30 June 2023 30 June 2022 Change
Net rental and related income (EUR thousand) 241,178 196,303 23%
Distributable earnings (EUR thousand) 181,360 139,058 30.42%
Distributable earnings per share (EUR cents) 28.52 22.83 24.9%
Distribution declared (EUR thousand) 163,224 139,058 17.38%
Distribution declared per share (EUR cents) 25.67 22.83 18.44%
Basic earnings per share (EUR cents) 41.89 28.08 49.18%
Diluted earnings per share (EUR cents) 41.82 28.08 48.93%
Headline earnings per share (EUR cents) 27.51 19.54 40.79%
Diluted headline earnings per share (EUR cents) 27.46 19.54 40.53%
EPRA Earnings (EUR thousand) 177,599 139,335 27.46%
EPRA Earnings per share (EUR cents per share) 27.93 22.88 22.07%
EPRA Net Initial Yield ('NIY')* 7.00% 6.70% 4.48%
EPRA topped-up NIY* 7.08% 6.75% 4.89%
EPRA vacancy rate 2.80% 3.40% (17.65%)
EPRA Net Reinstatement Value ('NRV') (EUR per share) 6.92 6.64 4.22%
EPRA Net Tangible Assets ('NTA') (EUR per share) 6.89 6.61 4.24%
EPRA Net Disposal Value ('NDV') (EUR per share) 6.59 6.38 3.29%
EPRA Cost ratio (including direct vacancy cost) 9.58% 12.50% (23.36%)
EPRA Cost ratio (excluding direct vacancy cost) 9.44% 12.30% (23.25%)
* Does not include investment property held for sale
BUSINESS HIGHLIGHTS
- Net operating income ('NOI') increased 23% to EUR241 million in H1 2023 (H1 2022: EUR196 million). On a like for like
('LFL') basis NOI was 15% higher in H1 2023 compared to H1 2022, excluding the contribution of the acquisitions
completed in 2022 (Forum Gdansk Shopping Centre, Copernicus Shopping Centre in December and 50% of Shopping
City Ploiesti in September).
- The operational costs recovery increased by 2% between H1 2022 and H1 2023, from 91% to 93%, despite a 30.5%
increase in property operating expenses.
- The collection rate for H1 2023 reported revenues reached 97% by mid-August.
- On 30 June 2023, the property portfolio was independently valued by external appraisers, resulting in a fair value gain
in relation to investment property of EUR103.7 million (+1.6% compared to 31 December 2022). The valuation result is
once again confirmation of portfolio quality and improving operational performance of our shopping centres.
- LTV was 33.4% on 30 June 2023, below the 35% strategic threshold.
- The Group had a strong liquidity position of EUR967 million on 30 June 2023, consisting of cash and cash equivalents of
EUR347 million and undrawn available credit facilities of EUR620 million.
INDEPENDENT AUDITOR'S REVIEW REPORT
The review report on the Group's interim condensed consolidated financial statements has been issued by Ernst & Young
Inc. (EY South Africa), a JSE accredited auditor, who expressed an unmodified review report thereon.
A copy of the review report, together with the underlying interim condensed consolidated financial statements is available
on the Company's website at:
https://nepirockcastle.com/wp-content/uploads/2023/08/Interim-Financial-Report-H1-2023.pdf
This results announcement is the responsibility of the Board of Directors of NEPI Rockcastle. This results announcement
is only a summary of the information in the full announcement and does not contain complete details. Any investment
decision should be based on consideration of the interim condensed consolidated financial statements published on the
Company's website at:
https://nepirockcastle.com/wp-content/uploads/2023/08/Interim-Financial-Report-H1-2023.pdf
and on the reviewed interim condensed consolidated financial statements available on the Company's website at:
https://nepirockcastle.com/wp-content/uploads/2023/08/Interim-Condensed-Consolidated-Financial-Statements-H1-2023.pdf
and on the JSE's website at: https://senspdf.jse.co.za/documents/2023/JSE/isse/NRPE/H12023.pdf
Stakeholders may follow the results presentation via webcast or conference call commencing at 10:00 Central European time/
10:00 South Africa time on Wednesday, 23 August 2023. Webcast registration link and dial in details are available on the
home page of the Company’s website at: https://nepi-rockcastle-august23.open-exchange.net/registration
For further information please contact:
NEPI Rockcastle N.V.
Rudiger Dany/Eliza Predoiu +31 20 237 4770
JSE sponsor
Java Capital +27 11 722 3050
Euronext Listing Agent
ING Bank +31 20 563 6685
Media Relations mediarelations@nepirockcastle.com
22 August 2023
Date: 22-08-2023 05:45:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
