Nepi-Rockcastle (NRP) is a R124bn real estate investment trust (REIT) that operates more than 56 shopping malls across nine Central and Eastern European countries, with significant operations in Poland (24%), Romania (35%), Slovakia (9%), Bulgaria (8%), Croatia (5%), and Hungary (11%). The share experienced a significant drop alongside the rest of the Resilient group following the release of the 360ne report in January 2018, falling from a high of R217 in December 2017 to as low as R99 in November 2018. The COVID-19 pandemic further impacted the share price, driving it down to under R55 in March 2020. Since then, it has recovered to around R103,06.
The company's total portfolio is valued at 6,3 billion euros (R124bn), making it the largest property share on the JSE. On 1st February 2022, Nepi-Rockcastle announced it had to pay 30 million euros following a civil judgment by the Arbitral Tribunal in Poland.
In its results for the six months ending 30th June 2024, the company reported net income up 13,5% and headline earnings per share (HEPS) up 3,56%. The vacancy rate was low at 2,7%, and the loan-to-value (LTV) ratio was 32,2%. The company noted that property operating expenses decreased by 3,3% between H1 2023 and H1 2024, driven by lower energy costs and operational efficiencies. The recovery rate improved from 93% to 94%. Additionally, the group maintained a strong liquidity position of almost €1.3 billion as of 30th June 2024, consisting of cash and cash equivalents of €672 million and undrawn available credit facilities of €620 million.
Technically, the share has shown a convincing recovery from the pandemic and has been in a strong upward trend since 1st November 2023. We still regard it as good value at current levels and expect the upward trend to continue.
The company's total portfolio is valued at 6,3 billion euros (R124bn), making it the largest property share on the JSE. On 1st February 2022, Nepi-Rockcastle announced it had to pay 30 million euros following a civil judgment by the Arbitral Tribunal in Poland.
In its results for the six months ending 30th June 2024, the company reported net income up 13,5% and headline earnings per share (HEPS) up 3,56%. The vacancy rate was low at 2,7%, and the loan-to-value (LTV) ratio was 32,2%. The company noted that property operating expenses decreased by 3,3% between H1 2023 and H1 2024, driven by lower energy costs and operational efficiencies. The recovery rate improved from 93% to 94%. Additionally, the group maintained a strong liquidity position of almost €1.3 billion as of 30th June 2024, consisting of cash and cash equivalents of €672 million and undrawn available credit facilities of €620 million.
Technically, the share has shown a convincing recovery from the pandemic and has been in a strong upward trend since 1st November 2023. We still regard it as good value at current levels and expect the upward trend to continue.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.