| Tue 23 Aug 2022, 17:10 | | NEPI ROCKCASTLE S.A. - Reviewed interim condensed consolidated financial statements for the six months ended 30 June 2022 |
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Reviewed interim condensed consolidated financial statements for the six months ended 30 June 2022
NEPI Rockcastle S.A.
(formerly NEPI Rockcastle PLC)
Societe Anonyme
7B, rue de Bonnevoie, L-1260 Luxembourg
Grand Duchy of Luxembourg
Registered number B267528
Share code: NRP
ISIN: IM00BDD7WV31
("NEPI Rockcastle" or "the Company" or "the Group")
SHORT-FORM ANNOUNCEMENT: REVIEWED INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2022
"NEPI Rockcastle had a very good first half of year 2022. With Covid-19 restrictions lifted, trading quickly picked up
and tenant sales exceeded 2019 levels. The costumers reverting to pre-pandemic habits are the primary reason for this increase,
although high inflation partly contributed to it. Net Operating Income (NOI) was higher than in H1 2019 on a like-for-like
(LFL) basis, while vacancies dropped below 4%, highlighting the quality of the Group's properties and asset
management. These positive results were reflected also in a higher fair value of the investment property portfolio.
A notable strategic action in the period was the EUR500 million green bond issue in January; this significantly increased the
average maturity of the Company's debt and lowered the average cost of funding, a remarkable achievement in the context of
rising interest rates and more restrictive funding market. Other notable milestone include relocation of the parent company
to the Netherlands, which will enhance the Group's standing and benefit shareholders in the long run. The balance sheet is
exceptionally strong, with a 31.3% loan-to-value (LTV) ratio and more than EUR1 billion in liquidity.
The overall economic climate continues to be challenging. Inflation is at multi-decade highs, interest rates are increasing
and the war in our region's neighbourhood shows no sign of abating. Even in this context, I am confident that NEPI
Rockcastle will continue to grow, both organically and through its significant development pipeline."
Rudiger Dany, Chief Executive Officer (CEO)
DISTRIBUTABLE EARNINGS
The Group achieved 22.83 euro cents in distributable earnings per share for the six months ended 30 June 2022, 29.4%
higher than for the six months ended 30 June 2021. Retail-only Net Operating Income was 27% higher in H1 2022 as
compared to H1 2021.
DIVIDEND DECLARATION
The Board of Directors noted the distributable earnings per share for the period of 22.83 euro cents. NEPI Rockcastle's
strong liquidity position supports a pay-out ratio of 100% of distributable earnings and the Board of Directors will
consider the declaration of a dividend for H1 2022, following completion of the relocation to the Netherlands
(estimated to occur on, or around, 6 September 2022). A further announcement in respect of any dividend declaration
will be released in due course.
KEY FINANCIAL INFORMATION
%
30 June 2022 30 June 2021 Change
Net rental and related income (EUR thousand) 196,303 154,919 26.71%
Distributable earnings (EUR thousand) 139,058 107,409 29.47%
EPRA Earnings (EUR thousand) 139,335 107,187 29.99%
Distributable earnings per share (EUR cents) 22.83 17.64 29.4%
EPRA Earnings per share (EUR cents) 22.88 17.60 30.00%
Headline earnings per share (EUR cents) 19.54 16.43 18.93%
Basic/diluted earnings per share (EUR cents) 28.08 19.96 40.68%
Net asset value (NAV) per share (EUR) 6.21 6.08 2.14%
EPRA Net Reinstatement Value (NRV) (EUR) 6.64 6.50 2.15%
EPRA Net Tangible Assets (NTA) (EUR) 6.61 6.47 2.16%
EPRA Net Disposal Value (NDV) (EUR) 6.38 5.78 10.38%
EPRA Net Initial Yield (NIY) 6.70% 6.75% (0.74%)
EPRA 'topped-up' NIY 6.75% 6.78% (0.44%)
EPRA vacancy rate 3.40% 4.40% (22.73%)
EPRA loan-to-value (LTV) 31.70% - -
EXTERNAL AUDITOR'S REVIEW REPORT
The review report on the Group's interim condensed consolidated financial statements has been issued by EY Luxembourg,
a non-JSE accredited auditor, who expressed an unmodified review report thereon.
The JSE granted the Company dispensation from the requirement to appoint an audit firm accredited with the JSE upon
migration to Luxembourg, for a limited period of up to four months.
As such, EY Luxembourg has prepared a limited review report for the Company's interim condensed consolidated financial
statements for the six months ending 30 June 2022 which does not extend to a review of the specific measures required
by JSE relating to the inclusion of headline earnings per share calculated in accordance with the Headline Earnings
Circular 1/2019 issued by SAICA and auditor confirmation that the interim results have been prepared in accordance with
the JSE Listings Requirements and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee
and Financial Pronouncements as issued by Financial Reporting Standards Council. This information has been published as
as supplementary information and is excluded from the limited review report prepared by the EY Luxembourg.
A copy of the auditors review report, together with the reviewed interim condensed consolidated
financial statements is available on the Company's website at
https://nepirockcastle.com/wp-content/uploads/2022/08/Interim-Financial-Report-H1-2022.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 interim condensed consolidated financial statements
published on the Company's website at:
https://nepirockcastle.com/wp-content/uploads/2022/08/Interim-Financial-Report-H1-2022.pdf and on the long-form
announcement (reviewed interim condensed consolidated financial results) available on the Company's website at:
https://nepirockcastle.com/wp-content/uploads/2022/08/Interim-Condensed-Consolidated-Financial-Results-H1-2022.pdf
and on the JSE's website at: https://senspdf.jse.co.za/documents/2022/jse/isse/NRPE/H12022.pdf
The full announcement is also available for inspection at the registered offices of the Company (7B, rue de Bonnevoie,
L-1260 Luxembourg) 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 Tuesday, 23 August 2022 to Wednesday, 31 August 2022.
For further information please contact:
NEPI Rockcastle S.A.
Rudiger Dany / Eliza Predoiu +352 22 72 36 701/+40 21 232 13 98
JSE sponsor
Java Capital +2711 722 3050
Euronext Listing Agent
ING Bank +31 20 563 6685
Media relations mediarelations@nepirockcastle.com
23 August 2022
Date: 23-08-2022 05:10:00
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