Nexus Select Trust Q1 Results: Net Operating Income up 7% to Rs 412.7cr

Nexus Select Trust announces distribution of Rs 325.3 crore or Rs 2,147 per unit for Q1 2024-25 | Representative Image

2 minutes of reading Last updated: July 30, 2024 | 19:18 IST

Nexus Select Trust, a listed REIT that is backed by retail real estate, on Tuesday reported a 7 per cent rise in net operating income at Rs 412.7 crore for the quarter ended June and announced plans to raise Rs 1,700 crore through the issuance of commercial paper and bonds.

In a regulatory filing, the company said it posted a net operating income (NOI) of Rs 371.9 crore during the April-June period of the current financial year, up 8 per cent over the same period last year.

Nexus Select Trust has declared a dividend of Rs 325.3 crore, or Rs 2,147 per unit, for the first quarter of 2024-25.

“Two term sheets signed to acquire 0.8 million square feet of retail assets; due diligence initiated. Total of 5 assets in acquisition pipeline, including previously announced acquisitions,” the company said.

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

Dalip Sehgal, Executive Director and Chairman, Nexus Select Trust, said, “We witnessed a solid growth in retail net operating income of 8 per cent year-on-year in a market environment where macro consumption growth was weak due to one-off factors such as uneven weather conditions and general elections.”

On inorganic growth, he said, “Our strategy remains intact. With a vision to double the net operating income from our retail portfolio over the next 5 years, we have signed two term sheets to acquire 2 retail assets totaling 0.8 million sq ft in the quarter. These will be debt financed 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 across 14 cities in India, two complementary hotel properties (354 units) and three office properties with a gross leasable area of 1.3 million square feet.

The company’s retail real estate assets include a tenant base of over 1,000 domestic and international brands operating in approximately 3,000 stores.

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First published: July 30, 2024 | 19:18 IST