Wrap Text
Condensed consolidated financial results for the year ended 31 December 2021
NEPI Rockcastle plc
Incorporated and registered in the Isle of Man
Registered number 014178V
Share code: NRP
ISIN: IM00BDD7WV31
("NEPI Rockcastle" or "the Company" or "the Group")
SHORT-FORM ANNOUNCEMENT: CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2021
"In 2021, the Covid-19 pandemic continued to affect businesses and livelihoods, sometimes in unexpected and novel
ways. However, the world learnt to cope better with the disruptions. Vaccinations and other medical breakthroughs
reduced the burden on health systems, which allowed governments to reopen economies and people to largely return
to a normal way of life. The impact on shopping and entertainment centres was still massive, especially in the first
half of the year, when authorities in most Central and Eastern European countries introduced trading restrictions
comparable with those of 2020. In the second half of the year, we have seen a robust recovery in trading numbers,
indicating that the appetite for traditional shopping and leisure, of the kind offered by our Group's properties,
continues to be very strong.
For the Group, 2021 was a transitional year, from the defensive mode of 2020 to repositioning for sustainable growth.
Ensuring the safe operation of our properties, offering support to tenants and preserving high levels of liquidity and
capital remained key management themes. At the same time, we made the switch to a growth supporting mindset.
Construction works have started on the extension of Promenada Mall in Bucharest and the greenfield development of
Promenada Craiova. Our team signed over 1,000 new leases and renewals, more than in 2019. We continued to invest
in our properties to make them even more attractive for customers and retailers. Occupancy and collection rates were
strong, proving the quality of our tenant mix and the strong appeal of our properties. Most encouragingly, we have
seen turnovers return to, and even exceeding, pre-pandemic levels in all the months free from trading restrictions.
On the financial side, we resumed paying dividends in line with our policy of distributing at least 90% of earnings to
shareholders. Our balance sheet is stronger than ever, with a loan-to-value ratio of 30.9% and available liquidity
(including undrawn committed credit facilities) of EUR1.1 billion. A new eight-year green bond issue in January 2022
with 2% coupon was used to restructure the debt maturity profile, and now our Company has no material debt
repayments due before 2024.
There are challenges ahead, for sure. The pandemic is not over, and the emergence of new variants is still a threat.
Some unwanted economic side effects are now becoming clear, such as higher inflation (brought about by fiscal and
monetary stimulus, among other factors) and disrupted supply chains, which may lead to a tightening purchasing
power and financial conditions in the near future. Internally, our Group has recently gone through important
personnel changes, both at executive management and Board level, and is planning a corporate relocation of its
holding company. These changes will have to be carefully managed to ensure strategic and operational continuity. I
am confident that we will be able to successfully steer through these challenges and deliver strong results for our
shareholders". Rudiger Dany, CEO
DISTRIBUTABLE EARNINGS
The Group achieved 16.78 euro cents in distributable earnings per share for the six months ended 2021, which combined
with the 17.64 euro cents in distributable earnings per share for the six months ended 30 June 2021 resulted in a total
distributable earnings per share of 34.42 euro cents, 10.4% lower than for the year ended 31 December 2020 (38.42 euro
cents). Distributable earnings per share have been impacted by the 6.13 euro cents non-recurring negative impact of the
litigation connected to the discontinued acquisition of Serenada and Krokus Shopping Centres in Poland. Excluding the
expenses of the litigation claim, the recurring DEPS was 40.55 eurocents, 5.5% higher than in 2020.
DIVIDEND DECLARATION
The Board of Directors has declared a dividend of 16.78 euro cents per share for the second half of 2021, corresponding
to 100% of the distributable earnings per share for this period. The distribution will be paid in cash during March 2022
and further detailed announcements will follow.
KEY FINANCIAL INFORMATION
%
31 December 2021 31 December 2020 Change
Net rental and related income (EUR thousand) 346,891 322,964 7.41%
Distributable earnings (EUR thousand) 209,613 232,415 (9.81%)
EPRA Earnings (EUR thousand) 210,159 240,770 (12.71%)
Distributable earnings per share (EUR cents per share) 34.42 38.42 (10.41%)
EPRA Earnings per share (EUR cents per share) 34.51 39.81 (13.31%)
Headline earnings/per share (EUR cents per share)* 33.53 18.12 85.04%
Basic/diluted earnings(loss) per share (EUR cents per share)* 38.59 (27.99) 237.87%
Net asset value (NAV) per share (EUR per share) 6.10 6.05 0.83%
EPRA Net Reinstatement Value (NRV) (EUR per share) 6.51 6.45 0.93%
EPRA Net Tangible Assets (NTA) (EUR per share) 6.48 6.42 0.93%
EPRA Net Disposal Value (NDV) (EUR per share) 5.82 5.79 0.52%
EPRA Net Initial Yield (NIY) 6.75% 6.70% 0.75%
EPRA 'topped-up' NIY 6.79% 6.75% 0.59%
EPRA vacancy rate 4.00% 4.30% (6.98%)
*Weighted average number of shares has been adjusted for December 2020 period presented in respect of the
capitalisation issue on 21 September 2020, as required by IAS 33 Earnings per Share.
EXTERNAL AUDIT
The audit report on the Group's Consolidated Financial Statements has been issued by PricewaterhouseCoopers (PwC)
Isle of Man, after having audited and obtained the necessary documentation from PwC local offices in jurisdictions
where the Group operates through subsidiaries. The local PwC offices audit the separate financial statements of the
relevant subsidiaries prepared under IFRS and issue their interoffice audit reports to PwC Isle of Man. The audit opinion
is unmodified. A copy of the audit opinion, together with the underlying audited annual financial statements is available
on the Company's website at https://nepirockcastle.com/wp-content/uploads/2022/02/Financial_Statements_2021.pdf.
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the Board of Directors of NEPI Rockcastle. This short-form
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 full announcement published on SENS and the
Company's website at:
https://nepirockcastle.com/wp-content/uploads/2022/02/Financial_Statements_2021.pdf
and on the long-form announcement (condensed consolidated financial results) available on the Company's website at:
https://nepirockcastle.com/wp-content/uploads/2022/02/Condensed_Consolidated_Financial_Results_H2_2021.pdf
and on the JSE's website at: https://senspdf.jse.co.za/documents/2022/jse/isse/NRPE/H22021.pdf
The full announcement is also available for inspection at the registered offices of the Company (2nd Floor, 30 Athol
Street Douglas, Isle of Man, IM1 1JB) and at the offices of the JSE sponsor, Java Capital (6th Floor, 1 Park Lane,
Wierda Valley, Sandton, 2196) at no charge during normal business hours from Thursday, 24 February 2022 to Friday,
4 March 2022.
For further information please contact:
NEPI Rockcastle plc
Rudiger Dany / Eliza Predoiu +44 1624 654 704
JSE sponsor
Java Capital +2711 722 3050
Euronext Listing Agent
ING Bank +31 20 563 6685
Media relations mediarelations@nepirockcastle.com
23 February 2022
Date: 23-02-2022 05:30:00
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