Nexus Select Trust Q1 net income rises 12% to ₹460 cr on consumption boost

India's only retail REIT posts double-digit income growth in Q1FY26 on the back of strong leasing, higher consumption, and stable occupancy across malls

Nexus Select Trust, India’s only retail real estate investment trust (REIT), posted a 12 per cent year-on-year (Y-o-Y) growth in its net operating income (NOI) for Q1FY26, aided by a 10.6 per cent Y-o-Y increase in consumption.

 

The REIT reported an NOI of Rs 460.20 crore, while consumption growth at its malls was driven by fashion, jewellery, beauty and personal care, and entertainment. The REIT’s revenue from operations during the quarter stood at Rs 613.58 crore, up 10.79 per cent Y-o-Y.

 

Dalip Sehgal, executive director and chief executive officer at Nexus Select Trust, said: “We delivered strong operational and financial performance this quarter. Tenant sales and retail NOI grew by 11 per cent and 12 per cent Y-o-Y, respectively, despite the temporary disruption in our North and West India malls due to heightened geopolitical tensions.” 

 

The REIT announced a distribution of Rs 337.80 crore (Rs 2.230 per unit) for the quarter under review. As per the Securities and Exchange Board of India, REITs are mandated to distribute at least 90 per cent of their taxable income.

 

REIT distributions are returns which can be in the form of dividends, interest, amortisation of debt received from the special purpose vehicles, other income or a combination of these aspects.

 

Further, the REIT leased 0.27 million square feet of retail space in Q1FY26. It maintained a leased occupancy of 97 per cent.

 

The REIT’s net debt as of June 30, 2025, stood at Rs 5,000 crore. “Our average cost of debt declined by 40 basis points to 7.5 per cent, benefiting from the Reserve Bank of India’s recent repo rate cut — the full impact of which we expect to see in coming quarters. Backed by a low leverage profile and USD 1 billion of debt headroom, we are well-positioned to scale further while continuing to deliver long-term value to our unitholders,” Sehgal added.