Strong H1 Lifts NEPI Rockcastle’s Property Value and Fuels JSE: NPR Share Price Uptrend JSE: NPR
Resilient operations, strong earnings, and prudent balance sheet management reinforce investor confidence in NEPI Rockcastle, which...
Quick overview
- NEPI Rockcastle reported a record investment property portfolio value of over €8 billion in H1 2025, demonstrating strong operational performance.
- The company's share price has surged by 300% over the past five years, reflecting improved fundamentals and investor confidence.
- NEPI maintains a conservative loan-to-value ratio of 32.1%, allowing for generous dividend distributions of around 90% of earnings.
- The fund's strong performance is recognized by peers, with Fortress Real Estate valuing its investment in NEPI at approximately R15 billion.
Resilient operations, strong earnings, and prudent balance sheet management reinforce investor confidence in NEPI Rockcastle, which remains on an uptrend since 2020.
Record Portfolio Value
NEPI Rockcastle reported interim results for the first half of 2025, showcasing a strong operating performance that lifted the value of its investment property portfolio to over €8 billion — the highest level in the company’s history. This milestone underscores the Fund’s ability to deliver steady growth despite broader economic headwinds in Europe.
NRP Share Price Performance and Technical Outlook
NEPI Rockcastle’s share price has undergone a dramatic turnaround over the past decade. From 2017 until early 2020, the stock lost more than 75% of its value, with NRP shares on the JSE plunging to R50. However, the trend shifted in the years that followed. Over the past five years, the stock has surged by 300%, reaching R150 in late 2024, supported by steadily improving fundamentals.
NRPJ Chart Monthly – MAs Are Acting As Support
Technical indicators reinforced the uptrend, with moving averages flipping from resistance into support. After a pullback in Q1 2025, the stock found support at the 20 SMA (gray) on the monthly chart, before resuming its upward trajectory. The release of the H1 2025 earnings report in August has further boosted investor sentiment, accelerating the stock’s recovery momentum as it once again heads toward the R150 mark.
Dividend Policy and Balance Sheet Strength
Chief Executive Officer Rudiger Dany emphasized that NEPI’s conservative approach to leverage enables the company to reward shareholders generously. With a loan-to-value (LTV) ratio of just 32.1%, NEPI is in a position to distribute around 90% of its earnings as dividends — a significantly higher payout compared to most peers in the sector. This strategy highlights both financial discipline and management’s commitment to consistent shareholder returns.
Shareholder Value Recognition
Confidence in NEPI Rockcastle’s performance is echoed by peers in the industry. Fortress Real Estate Investment Limited, in its June 6, 2025 trading update, reported that its investment in NEPI Rockcastle is currently valued at approximately R15 billion, reflecting the strength and market recognition of the Fund’s performance.
NEPI Rockcastle Delivers Record €8bn Portfolio in H1 2025
- The fund’s interim results highlight resilient operations, strong income growth, and sustained investor confidence.
Portfolio Value
- Investment property portfolio reached €8.0bn, a new record.
Operating Performance
- Net Operating Income (NOI): €307m in H1 2025 vs €274m in H1 2024 (+12.1%).
- Like-for-like NOI growth: +4.4%, excluding acquisitions and disposals.
Revenue & Expenses
- Energy revenue: €4.9m in H1 2025, up 19.7% y/y.
- Property operating expenses: +10.4% y/y, mainly due to higher utility costs.
- Cost recovery rate: steady at 94%, with service charge income growing in line with expenses.
Occupancy & Collections
- EPRA occupancy rate: 98.2% as of 30 June 2025.
- Collection rate: >99% of revenues reported by mid-August
Earnings & Dividend
- Distributable Earnings per Share (DEPS): 31.05 Euro cents (+3.1% y/y).
- Dividend declared: 27.95 Euro cents per share.
Full-Year Outlook
- DEPS expected to rise 2.5%–3% above 2024 level (60.17 Euro cents).
Outlook: Resilience and Growth
The interim results reflect NEPI’s ongoing resilience: rising property values, increased energy-related revenues, and robust rent collection continue to support earnings. While operating expenses have grown due to higher utility costs, stable cost recovery rates have helped balance the impact. With distributable earnings and dividends both trending higher, management anticipates another year of solid shareholder returns and sustained growth momentum.
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