Breaking Down NEPI Rockcastle S.A. Financial Health: Key Insights for Investors

NEPI Rockcastle S.A. stands at the intersection of scale and stewardship - a real estate leader born from the merger of New Europe Property Investments and Rockcastle, managing a diversified portfolio of shopping centers, offices and industrial assets across Central and Eastern Europe with a market capitalization of €5.16 billion (late 2025), pursuing a mission of high-quality, sustainable growth through strategic acquisitions and active asset management, a conservative financial stance characterized by a low loan-to-value approach, and concrete sustainability targets including a planned 30% reduction in carbon emissions relative to 2020 by 2024; the vision of expanding the portfolio to roughly €4 billion by end-2024 goes hand-in-hand with commitments to tenant satisfaction, smart-building technologies across new projects, and community investment - notably a planned allocation of €1 million for social, health and educational initiatives in 2024 - all rooted in core values of integrity, innovation, collaboration, excellence and governance that drive its long-term strategy.

NEPI Rockcastle S.A. (NRP.AS) - Intro

• Primary sectors: shopping centres, offices, logistics/industrial assets
• Geographic footprint: Romania, Poland, Czech Republic, Slovakia, Hungary, Croatia, Bulgaria, Serbia, Latvia, Lithuania, Estonia
• Portfolio approach: asset light redevelopment, dominant retail hubs, selective logistics growth

• Generate stable, inflation‑linked rental income
• Preserve capital through conservative financing and active asset management
• Create destinations that support local economies and retail ecosystems

• Lead in sustainability standards among regional REIT peers
• Transform key assets into omnichannel retail and leisure destinations
• Maintain balance between growth and financial prudence

• Integrity - transparent governance, ethical conduct and full regulatory compliance
• Stewardship - responsible management of assets and community engagement
• Excellence - operational discipline, tenant retention and customer experience
• Sustainability - energy efficiency, carbon reduction and green building practices
• Partnership - long‑term relationships with tenants, investors and local stakeholders

• Carbon reduction: progressive targets to reduce scope 1 & 2 emissions through energy efficiency retrofits and on‑site generation (solar PV) across core assets
• Green certifications: ongoing BREEAM/LEED certifications and EPC upgrades for high‑footfall centres
• Energy investments: LED lighting rollouts, HVAC optimisation, building management systems to reduce consumption per m²
• Reporting & transparency: annual sustainability reports with quantified energy, water and waste metrics

• Local partnerships: funding of health, education and cultural programmes in cities where assets operate
• Employment impact: retail and services tenancy supporting tens of thousands of jobs across Central and Eastern Europe
• Tenant support programs: marketing, digitalisation and omnichannel enablement for retail SMEs

• Conservative balance sheet: diversified creditor base, blended fixed/variable rate hedging
• Capital allocation: prioritized reinvestment into high‑yield redevelopment and selective acquisitions funded by recycling capital
• Dividend policy: commitment to stable cash distributions aligned with earnings and net debt management

• Retail resilience: repositioning centres as mixed‑use lifestyle destinations to counteract e‑commerce pressure
• Logistics selective expansion: capitalising on last‑mile and regional distribution demand
• Asset enhancement: tenant mix optimisation, experience‑led offering, and digital customer engagement

NEPI Rockcastle S.A. (NRP.AS) - Overview

• Mission Statement: Deliver superior real estate investment opportunities through high-quality assets, sustainable growth and disciplined financial management.
• Strategic focus: Prime retail and select office acquisitions in high-demand urban and regional catchments; active repositioning and tenant-mix optimisation to drive rental growth and footfall.
• Financial discipline: Conservative leverage policy with a focus on maintaining a low loan-to-value (LTV) to protect long-term stability and liquidity.
• Tenant experience: Prioritise well-maintained, accessible and attractive properties that enhance tenant satisfaction and retention.
• Sustainability commitment: Integration of energy-, carbon- and resource-efficiency measures across the portfolio targeting a 30% reduction in carbon emissions relative to 2020 levels by 2024.

• Operational priorities:
• Active asset management to drive NOI growth and value creation.
• Selective acquisitions in markets with resilient retail and office demand.
• Prudent capital management-maintain access to diversified funding sources.

• Capital structure highlights:
• Access to diversified debt facilities, mortgage loans and capital markets instruments; emphasis on staggered maturities to mitigate refinancing risk.
• Historic credit metrics target maintaining investment-grade-equivalent prudent thresholds (LTV mid-30s, strong interest coverage ratios).

• Key performance drivers
• High-quality tenant mix with strong covenants and long WAULT (weighted average unexpired lease term) supporting rental stability.
• Proactive capex and refurbishment programmes to sustain footfall and rental reversion potential.
• Sustainability investments (LED retrofits, HVAC optimisation, BMS upgrades, rooftop solar where feasible) to reduce operating costs and meet emissions targets.

NEPI Rockcastle S.A. (NRP.AS) - Mission Statement

Vision Statement

• Target portfolio scale: expand to approximately €4.0 billion by end-2024, focused on prime retail and office space in high-demand urban and regional centers.
• Environmental commitment: reduce carbon emissions by 30% relative to 2020 levels by 2024 across owned and managed assets.
• Community investment: allocate €1 million toward community development initiatives in 2024 to support local projects and social programs.
• Technology & innovation: implement smart building technologies across all new projects by 2024 to improve energy efficiency, tenant experience and asset performance.
• Geographic ambition: explore strategic partnerships to extend presence into selected Western European markets while maintaining leadership in Central & Eastern Europe.

Core Values

• Asset Quality - prioritize premium locations and best-in-class property management to preserve and grow NOI and NAV.
• Sustainability - integrate measurable environmental targets (30% carbon reduction vs 2020 by 2024) into investment and operations decisions.
• Community Stewardship - invest capital and expertise locally (€1 million allocation in 2024) to generate positive social outcomes alongside financial returns.
• Innovation - deploy smart building technologies across new developments to reduce operating costs and enhance tenant retention.
• Governance & Transparency - maintain high standards of corporate governance, risk management and investor communication.

Key Targets & Indicative Metrics (2024)

Strategic Priorities Aligned to the Mission

• Selective acquisitions and disposals to reach the €4 billion portfolio target while optimizing yield and growth potential.
• Operational efficiency programs to translate smart building tech and energy measures into lower operating expenses and stronger net operating income.
• Measured capital allocation to community projects (€1m) that enhance social license to operate and tenant/community relations.
• Rigorous ESG reporting and performance tracking to demonstrate the 30% emissions reduction and other sustainability outcomes.
• Partnerships and joint ventures that allow entry into Western European markets without diluting focus on core CEE holdings.

NEPI Rockcastle S.A. (NRP.AS) - Vision Statement

• Integrity: NEPI Rockcastle maintains rigorous ethical standards across markets, reflected in its corporate governance and transparent reporting.
• Innovation: The company invests in proptech, data analytics and tenant-facing digital platforms to optimise leasing, operations and customer experience.
• Collaboration: Partnerships with tenants, investors and municipalities underpin redevelopment projects, leisure offerings and community initiatives.
• Excellence: Operational KPIs focus on occupancy, tenant retention, and service quality to sustain asset performance.
• Sustainability: ESG integration informs capital projects, energy reduction targets and green building certifications across the portfolio.
• Governance: A structured board and risk-management framework align management incentives with long-term shareholder returns.

• Active asset management - repositioning non-core assets and rolling out value-accretive refurbishments to increase NOI and market relevance.
• Selective growth - acquisitions and developments focused on dominant trade areas with resilient catchments and strong demographics.
• Capital efficiency - leveraging a diversified funding mix to optimise cost of capital while maintaining conservative LTV (loan-to-value) targets.
• Tenant mix optimisation - strengthening omnichannel retail, F&B and leisure to boost dwell time and spending.
• Decarbonisation and resource efficiency - investing in energy management, solar, LED retrofits and certification (BREEAM/Green Building standards where applicable).

• Integrity & Governance: Regular independent valuations, adherence to IFRS and EPRA reporting metrics; transparent disclosure cycles to investors.
• Innovation: Deployment of building-management systems and analytics to reduce operating costs and improve tenant satisfaction; digital leasing platforms for faster deal cycles.
• Collaboration: Long-term lease frameworks and joint marketing initiatives with anchor tenants; community events to drive visitation.
• Excellence: KPI-driven property teams with targets for vacancy reduction, rental reversion and service score improvements.
• Sustainability: Portfolio-level targets for energy intensity reduction and carbon footprint, tracking through annual sustainability reports and investor disclosures.