Nepi (NRP) was part of the infamous Resilient Group of property companies which was the main reason for the collapse of the real estate investment trust (REIT) sector in January and February of 2018. Nepi itself fell from R217.50 to as low as R115.37. Today it trades for around R127.
The REIT is a R74,4bn operation which operates more than 50 shopping malls in 9 central and eastern European countries, mostly in Poland (26%) and Romania (39%). Its close association with the Resilient group of REITs resulted from the merger with Rockcastle, but has now decided to distance itself by removing key directors (Spiro Noussels and Nick Matulovich).
In its results for the year to 31st December 2018, the company reported distributable earnings up 9,5% with net rental and related income up 29,6% which puts it amongst the best REITs listed on the JSE. Vacancies were just 2,8% with a collection rate of almost 100%. The total portfolio is worth 5,9bn euros – which is 20% up on the previous year. In the 3 months to 31st March 2019, the company reported total assets of 6,6bn euros with a loan-to-value ratio of 32% and a collection rate of 99,9%. The occupancy rate was 96,3%. Read More