Nexus Select Trust posts 11% NOI growth on strong leasing, consumption

Blackstone-backed retail Reit reports double-digit growth in consumption, leasing and distributions, while building an acquisition pipeline to expand its portfolio by 2030

Blackstone-backed Nexus Select Trust, a Mumbai-listed retail real estate investment trust (Reit), reported an 11 per cent year-on-year (YoY) growth in its net operating income (NOI) to ₹510 crore for the first quarter of FY27, driven by growth in consumption and leasing.

 

The Reit witnessed quarterly consumption of ₹3,850 crore, up 17 per cent YoY. It leased 0.4 million square feet (msf) of retail space in Q1 FY27, compared with 0.27 msf in Q1 FY26. Nexus reported an average spread of 19 per cent on re-leasing during the quarter. Leasing spread refers to the increase in rent achieved over the previous rent for the same space.

   

Dalip Sehgal, executive director and chief executive officer of Nexus Select Trust, said, “We have delivered robust double-digit consumption growth during the quarter despite heightened global uncertainties. This performance reflects the resilience of our portfolio and the strength of our operational execution in a challenging environment.”

 

Nexus Select Trust declared a distribution of ₹370 crore (₹2.442 per unit), up 10 per cent YoY and 7 per cent quarter-on-quarter (QoQ).

 

According to the Securities and Exchange Board of India (Sebi), Reits are mandated to distribute at least 90 per cent of their net distributable cash flows (NDCF). NDCF is the standard financial metric defined by Sebi to calculate the actual surplus cash available for distribution to Reit investors. Reit distributions may be in the form of dividends, interest, amortisation of debt received from special purpose vehicles, other income, or a combination of these.

 

Cumulatively, since its listing in May 2023, Nexus has distributed over ₹4,080 crore and delivered an internal rate of return (IRR) of 25 per cent, the Reit said.

 

Further, Nexus’ revenue from operations for the quarter under review stood at ₹681 crore, up about 11 per cent YoY. Its earnings before interest, tax, depreciation and amortisation (Ebitda) stood at ₹491 crore, up 10.18 per cent YoY.

 

On a QoQ basis, Nexus’ NOI grew marginally by about 2.28 per cent. Meanwhile, its Ebitda increased by 7.79 per cent and revenue by 4.38 per cent.

 

Additionally, Nexus aims to double its 10.7 msf portfolio with 19 consumption centres by 2030. In April, Nexus announced the acquisition of Diamond Plaza, Kolkata, for ₹347.5 crore, with the transaction expected to close in the first half of FY27.

 

“We have also built a robust acquisition pipeline comprising eight retail assets across India, with two assets currently under due diligence. Backed by a strong balance sheet, low leverage, and nearly $1 billion of available debt headroom, we are well positioned to capitalise on attractive inorganic growth opportunities and continue scaling our platform,” Sehgal said.

 

Nexus’ net debt as of June 2026 stood at ₹5,592 crore, while its net debt-to-Ebitda ratio was 2.8 times and its loan-to-value (LTV) ratio stood at 18 per cent.