NEPI ROCKCASTLE PLC - COVID-19 update: NEPI Rockcastle expects its operating gross leasable area to increase to 90% in the next two weeks

COVID-19 update: NEPI Rockcastle expects its operating gross leasable area to increase to 90% in the next two weeks

NEPI Rockcastle plc
Incorporated and registered in the Isle of Man
Registered number 014178V
Share code: NRP
ISIN: IM00BDD7WV31
(“NEPI Rockcastle”)


COVID-19 UPDATE: NEPI ROCKCASTLE EXPECTS ITS OPERATING GROSS LEASABLE AREA TO INCREASE TO 90% IN THE NEXT TWO WEEKS


Shareholders are advised that as of today, tenants occupying approximately 70% of the Group’s GLA are
welcoming their visitors, in the best sanitary conditions. The proportion of the GLA hosting open stores is
expected to increase to approximately 90% by mid-June and approximately 94% by the end of June; this
estimate is based on the expected further easement of trading restrictions for stores located in large shopping
centres in Romania around mid-June (although the final decision has not yet been announced by the
authorities) and progressive reopening of entertainment facilities in most countries.

Indoor and outdoor restaurants, food courts and gyms have opened in all countries, except for Romania.
Entertainment facilities will be reopened in Poland starting 6 June, while in Romania the reopening date will
be communicated at a later stage. Although allowed to trade in some locations, most cinemas have not yet
opened, due to industry supply issues.

Romania commenced the easing of lockdown restrictions on 15 May, reopening shops with direct street access
and retail parks with a built area below 15,000 m2; outdoor terraces, bars, restaurants and coffee shops
reopened on 1 June, with social distancing measures in place. Further easing of restrictions is expected to be
announced during the following week, potentially lifting trading bans for stores in large shopping centres in
mid-June, except for entertainment facilities.

Since the gradual ending of trading restrictions during April and May in most of the CEE countries, the
shopping centres’ footfall has been continuously increasing, despite the restrictions on entertainment areas,
and reached levels above the ones anticipated by the Group. Most of the Group’s shopping centres in Poland,
Czech Republic, Serbia and Croatia, where trading restrictions ended in early May, show footfall already
exceeding 70% of the levels recorded in the same period of 2019.

While the formal May sales reporting is still in progress, tenants have generally seen higher conversion rates
and larger basket sizes than expected, as a result of customers focusing on efficient shopping.

Though many retailers placed most new investments temporarily on hold, there is still demand for letting,
some also coming from new brands looking to enter the CEE market. Lease renewals continue mainly within
previously agreed long-term conditions.

Overall collection of rent and other charges due by 30 April increased to 89%; for April and May a 60-day
rent deferral has been granted to most tenants affected by the lockdowns. Discussions related to tenant
discounts are ongoing, with long-term rent largely unaffected.

“The post-lockdown performance of our shopping centres is very encouraging, and the higher-than-expected
footfall is notable especially considering that many dining and entertainment areas are just opening. Our top
priority remains maintaining the health and safety of our customers, tenants and staff, and we have
implemented all necessary measures for safe visits to our properties. The coming period will require significant
collaboration between stakeholders in our industry to ensure the speedy recovery of the retail environment.”
Alex Morar, CEO - NEPI Rockcastle

For further information please contact:

NEPI Rockcastle plc
Mirela Covasa                             +40 21 232 1398

JSE sponsor
Java Capital                              +27 11 722 3050

Euronext Listing Agent
ING Bank                                  +31 20 563 6685

Media Relations                           mediarelations@nepirockcastle.com

5 June 2020

Date: 05-06-2020 10:15:00
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