Nexus Select Trust Q2FY26 NOI rises 14% as retail consumption surges

Nexus Select Trust posted 14% YoY growth in Q2FY26 net operating income to Rs 429 crore on the back of strong consumption and tenant sales across fashion, electronics, and jewellery

Nexus Select Trust, India’s only retail real estate investment trust (Reit), posted a 14 per cent year-on-year (Y-o-Y) growth in its net operating income (NOI) to Rs 429 crore for Q2FY26 amid a 16 per cent Y-o-Y increase in consumption.

 

What drove Nexus Select Trust’s Q2 performance?

 

The Reit’s tenant sales stood at Rs 3,500 crore, up 16 per cent Y-o-Y, driven by growth across categories including fashion, jewellery, beauty and personal care, electronics, and entertainment.

 

The Reit also declared a distribution of Rs 333 crore (Rs 2.198 per unit), marking a 10 per cent Y-o-Y increase. Since its listing, Nexus Select Trust has cumulatively distributed Rs 3,010 crore, or Rs 19.85 per unit.

 

 

How much does the Reit distribute and why?

 

According to the Securities and Exchange Board of India (Sebi), Reits are required to distribute at least 90 per cent of their taxable income. Reit distributions are returns that may comprise dividends, interest, amortisation of debt received from special purpose vehicles, other income, or a combination of these components.

 

How strong was leasing and occupancy during the quarter?

 

During the quarter, the Reit re-leased 0.23 million square feet of retail space. Occupancy across its portfolio stood at 97 per cent for the tenth consecutive quarter since listing, it noted.

 

Dalip Sehgal, executive director and chief executive officer at Nexus Select Trust, said, “We delivered another quarter of strong operational and financial performance, achieving 16 per cent growth in tenant sales and 14 per cent growth in retail net operating income during Q2FY26. With a robust start to Q3FY26 — marked by double-digit consumption growth in October 2025 — we expect this momentum to sustain through the second half of the year.”

 

What are the Reit’s expansion and growth plans?

 

Sehgal added that, on the inorganic front, the Reit has built a robust pipeline of 10 assets, out of which three are currently under due diligence. “Backed by a strong balance sheet, low leverage, and nearly USD 1 billion of debt headroom, we are well positioned to capitalise on future inorganic growth opportunities,” he said.