NEPI Rockcastle reported about a 20-percent loss in rental income in the first half of this year, amounting to €160m. The drop in revenue is related to the coronavirus pandemic and the state of emergency that kept shopping centers closed from March 23 until June 15, the company wrote in its report.
“The last six months have been the most difficult in recent history. Measures taken by governments to combat the spread of Covid-19 have led to the temporary closure of non-essential retailers in all countries where NEPI Rockcastle operates, which had a negative impact on the first half of 2020; 96 percent of total gross leasable area is now operational and sales of tenants is gradually returning to the previous year’s levels (88 percent in June). We intend to accelerate the digital transformation of our operations and move to greater integration of omnichannel sales. At the same time, we appreciate that Covid-19 could still have an impact on our region’s economies, and we will continue to manage our capital by prioritizing long-term sustainability,” said Alex Morar, CEO of NEPI Rockcastle.
