Nexus Select Trust Q1 results: Net operating income up 7% at Rs 412.7 cr

Nexus Select Trust, a listed REIT backed by retail real estate, on Tuesday reported 7 per cent increase in net operating income to Rs 412.7 crore for June quarter and announced plans to raise up to Rs 1,700 crore through issue of commercial papers and debentures.

In a regulatory filing, the company said it achieved retail Net Operating Income (NOI) of Rs 371.9 crore in April-June period of this fiscal, up 8 per cent from the year-ago period.

Nexus Select Trust declared distribution of Rs 325.3 crore or Rs 2.147 per unit for the first quarter of 2024-25.

"Signed two term sheets for acquisition of 0.8 million square feet retail assets; commenced due diligence. Overall, 5 assets under acquisition including the acquisitions announced in the past," the company said.

Nexus Select Trust said the board has also approved raising of funds by issuing listed, rated, redeemable, commercial papers, for an aggregate principal amount of up to Rs 500 crore and also non-convertible debentures up to an aggregate principal amount of Rs 1,200 crore in one or more transactions, series or tranches.

Dalip Sehgal, Executive Director and Chief Executive Officer at Nexus Select Trust, said, We witnessed robust retail net operating income growth of 8 per cent YoY in market conditions where macro consumption growth was soft due to one off reasons like uneven weather patterns and general elections."

On the inorganic growth front, he said, "Our strategy remains intact. With the vision to double our retail portfolio net operating income in the next 5 years, we have signed two term sheets to acquire 2 retail assets totalling 0.8 million square feet in the quarter. These will be funded by debt and are expected to close in the next few months."

Nexus Select Trust's portfolio comprises 17 shopping malls with a Gross Leasable Area of 9.9 million square feet spread across 14 cities in India, two complementary hotel assets (354 keys) and three office assets with a Gross Leasable Area of 1.3 million square feet.

Its retail real estate assets have a tenant base of 1,000+ domestic and international brands spanning across around 3,000 stores.