Nexus Select Trust Q2 Results: Net operating income jumps 17% YoY to Rs 390.9 crore

Nexus Select Trust has reported 17% on-year growth in net operating income of Rs 390.9 crore for the quarter ended September. The real estate investment trust (REIT) has recorded 97% leased retail occupancy and 18% on-year rise in tenant sales during the quarter.

The company’s retail leased occupancy improved by 120 basis points from a year ago. India’s first listed retail REIT has signed a non-binding term sheet to acquire three Grade-A consumption centres in southern India.

“Our performance is also a reflection of the quality and scale at which we continue to deliver strong organic growth…Continuing with our strategy of inorganic growth, we have signed a non-binding term sheet to acquire three high-quality malls in southern India,” said Dalip Sehgal, Executive Director & CEO, Nexus Select Trust.

The REIT has announced the first distribution of Rs 452.1 crore translating to Rs 2.98 per unit reflecting 100% payout for the period from its listing in May to September.

Out of the total distribution, 62% will be in the form of dividends that will be tax-free, 28% in the form of Interest, and 10% in the form of amortization of special purpose vehicle debt.

Nexus Select Trust’s portfolio comprises 17 Grade-A urban consumption centres with a gross leasable area of 9.9 million sq ft spread across 14 cities in India, two complementary hotel assets with 354 keys and three office assets with a gross leasable area of 1.3 million sq ft.

Across its portfolio, it has a tenant base of over 1,000 domestic and international brands spanning across around 3,000 stores.