Nepi Rockcastle N.v · JSE:NRP
Nepi Rockcastle — H2 2023 Earnings Presentation
31 slides from Nepi Rockcastle's earnings presentation, December 2023
Slide 1: Results Presentation December 2023
RESULTS PRESENTATION December 2023
Slide 2: Agenda
Overview page 3 Operational results page 7 Finance page 18 ESG page 25 Developments page 27 Way forward page 29 EXCELLENCE. INNOVATION. EXPERIENCE. 2
Slide 3: Overview
Overview 3
Slide 4: Retail real estate market leader in the fast growth CEE region
Retail real estate market leader in the fast growth CEE region Lithuania 2% Poland Oriented towards financial stability 26% and long-term growth Czech Republic 3% Slovakia 8% Hungary 9% Romania Croatia 38% 4% Consistent growth of CEE countries, outpacing Western European Serbia 2% Bulgaria 8% CEE* R
Slide 5: Highest DEPS in the Group's history
Highest DEPS in the Group's history €369m 56.98 Distributable earnings +17% compared to 2022 € cents Distributable earnings per share +9.3% compared to 2022 97.8% EPRA Occupancy +0.5pp compared to 2022 99% Collection rate* Unchanged compared to 2022 €2,912 Turnover/m2** +10.5% compared to 2022 * Col
Slide 6: Strong balance sheet
Strong balance sheet €6.8bn 32.2% Investment property^ +3% compared to 2022 Loan-to-value -3.5pp compared to 2022 84% Unencumbered assets^^ -7pp compared to 2022 €6.98 EPRA NRV per share +2% compared to 2022 3.6 years Average debt maturity -1 year compared to 2022 ^ Excluding investment property hel
Slide 7: Operational results
Operational results 7
Slide 8: Main pillars of performance
Main pillars of performance Existing portfolio Asset management Acquisitions Developments 8
Slide 9: Robust rental income growth
Robust rental income growth Like-for-like net operating income ('NOI') growth (by country) Romania +16% Poland +14% 21% Hungary +7% Slovakia +10% Bulgaria +13% total growth in NOI (€491m) Croatia +9% compared to 2022 Czech Republic +9% Lithuania +22% Serbia +10% TOTAL +13% 13% 18% 12.2% stable and s
Slide 10: Growth across all retail segments
Growth across all retail segments 12.6% tenant sales* increase in 2023 Tenant turnover growth* (%) Weight in 2023 turnover (%) by segments by segments Fashion 8.4% 42% Health & Beauty 24.4% 12% Food Service 18.3% 11% Electronics 9.7% 10% Other Retail 11.5% 9% Fashion Complements 11.6% 5% Services 23
Slide 11: Continuing increasing footfall and revenue per visit
Continuing increasing footfall and revenue per visit Quarterly footfall* change (million visits) 100 80 +1.9% +15.7% +3.3% +1.1% 60 40 20 0 Q1 Q2 Q3 Q4 2022 2023 YTD footfall* variation (million visits) 300 +4.6% 250 200 150 100 50 0 2022 2023 15 YTD Basket size variation (€/visitor) +7.8% 10 5 0 20
Slide 12: Strong demand led to record low vacancy and high rental uplifts
Strong demand led to record low vacancy and high rental uplifts Retail EPRA vacancy evolution (%) 3 2.5% 2.5% 2.1% 2 1 0 Dec 2022 Jun 2023 Dec 2023 17+83 Split of signed leases 2023 2023 leasing activity 65+35 by GLA by GRI 17.3% +14.05% 1,307 signed leases on 35% 288,700m2 GLA, out of which 35% of
Slide 13: Continuous long-term partnering with distinctive retailers
Continuous long-term partnering with distinctive retailers New stores opened Karolinka Shopping Centre, Poland Paradise Center, Bulgaria Ploiesti Shopping City, Romania Promenada Craiova, Romania Promenada Craiova, Romania Serdika Center, Bulgaria 13
Slide 14: Continuous long-term partnering with distinctive retailers (continued)
Continuous long-term partnering with distinctive retailers » continued Strong tenant base by rent * 5.1% ** 4.1% 3.5% 2.6% 2.4% 1.9% 1.8% 1.4% 1.3% 25.2% of total annual rent 1.1% * Cropp Town, House, Mohito, Reserved, Sinsay ** Bershka, Massimo Dutti, Oysho, Pull and Bear, Stradivarius and Zara ^ F
Slide 15: Asset management - boosting customer experience and attractiveness
Asset management - boosting customer experience and attractiveness of the centres Food-court extension Extension of GLA (new building) Shopping City Timisoara, Timisoara, RO Shopping City Ramnicu Valcea, Ramnicu Valcea, RO • Boost customer experience - 6 new food • Extension with Decathlon court uni
Slide 16: Above average performance of the 2022 acquisitions
Above average performance of the 2022 acquisitions FORUM GDANSK SHOPPING COPERNICUS SHOPPING CENTRE, PLOIESTI SHOPPING CITY CENTER, POLAND POLAND (50% STAKE), ROMANIA +23% Turnover +21%Turnover +15%Turnover Average portfolio turnover growth 12.6% 16
Slide 17: Successful opening of 63,700m2 GLA Promenada Craiova
Succesful opening of 63,700m2 GLA Promenada Craiova 17
Slide 18: Finance
Finance 18
Slide 19: Finance: Distributable earnings, Funding, Valuation
Finance Distributable Funding Valuation earnings 19
Slide 20: Key drivers of 2023 DEPS vs 2022
Key drivers of 2023 DEPS vs 2022 amounts in € cents Distributable earnings positively impacted by strong operational performance and acquisitions done in 2022 +9.2% 4.80 +9.2% +9.3% -0.75 - 0.49 56.98 4.78 -1.4% -0.9% - 3.51 52.15 -6.7% Operational performance Funding, taxes and corporate expenses 2
Slide 21: Cashflow from operating activities vs 2023 distributable earnings
Cashflow from operating activities vs 2023 distributable earnings amounts in € thousand Distributable earnings supported by cash flow from operating activities 8,111 366,896 4,397 369,444 -9,960 Distributable earnings higher than cash flow from operating activities due to: • working capital adjustme
Slide 22: H2 2023 dividend
H2 2023 dividend Dividend pay-out 90% cash: 25.61 euro cents NEPI Rockcastle 65% - 70% Average of European peers • Settlement timing: April 2024 Dividend settlement options Tax treatment in the Distribution Tax treatment in South Africa Netherlands Return of capital (reducing Repayment of capital th
Slide 23: Funding strategy
Funding strategy Actions implemented in 2023 and early 2024 Debt maturity profile as of December 2023 (€m) 600 €387 million unsecured green loan from IFC 500 €265 million scrip dividend 400 €116 million extension of secured loans maturing in 2024 300 €346 million* extension of RCFs maturing in 2024
Slide 24: Valuation uplift driven by portfolio performance
Valuation uplift driven by portfolio performance -2.3% +5.0%^ Valuation Property yield performance +2.7%^ investment property valuation increase on a like-for-like basis €165* million fair value gain on property valuation mainly driven by property performance Share of total Valuer Countries covered
Slide 25: ESG
ESG 25
Slide 26: ESG commitments
ESG commitments Externally recognised Green energy Governance & standards Photovoltaics in 27 properties Science Based Targets in Romania committment 25% of the needs covered Sustainability-Linked Financing with solar energy Framework implemented Reducing carbon footprint Alignment to the relevant E
Slide 27: Developments
Developments 27
Slide 28: Development Projects
Development Projects €652m investments under permitting and construction • Developing in phased manner, with high pre-leasing targets • Main anchors secured early in the process • Construction costs committed on a gradual manner Poland Target GLA Total Total Spent Country Type Category opening date
Slide 29: Way forward
Way forward 29
Slide 30: Looking ahead
Looking ahead Strategy Maintain dominant CEE position Optimise portfolio through developments, 4.0% acquisitions and assets rotation expected growth in Generate value from distribution per share existing properties in 2024 Prudent financial profile Continue ESG Focus 30
Slide 31: NEPI Rockcastle
NEPI © ROCKCASTLE