Nexus Select Trust Reports 11% Surge in Net Operating Income, Reaching Rs 510 Crore.

Nexus Select Trust has demonstrated a solid performance for the quarter ending June, with an 11% year-on-year increase in net operating income (NOI), reaching Rs 510 crore. This growth was attributed to strong consumer demand and effective leasing activities, indicating a resilient retail environment despite prevailing global uncertainties. The company has also committed to distributing Rs 370 crore to unit holders for the quarter, reflecting a distribution per unit (DPU) of INR 2.442, which marks a 10% increase and aligns with the stated guidance.

Furthermore, the ongoing strategic expansion is noteworthy, as the REIT is in the process of acquiring the Diamond Plaza mall in Kolkata, with the finalization expected in the first half of FY27. This acquisition is part of a broader strategy to double the portfolio size by 2030, emphasizing a proactive approach to growth. The identification of eight additional shopping malls for potential acquisition illustrates an active pipeline aimed at enhancing asset diversification and geographical reach within India’s retail sector.

The trust’s financial health appears robust, underpinned by a strong balance sheet and a low leverage ratio. With nearly USD 1 billion in available debt capacity, Nexus Select Trust is well-positioned to pursue attractive inorganic growth opportunities. Since its listing, the cumulative distributions have exceeded Rs 4,080 crore, yielding an impressive internal rate of return (IRR) of 25% for unitholders. This track record reinforces the management’s commitment to delivering consistent returns, positioning the REIT as a compelling investment in the current market landscape.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)