Nexus Select Trust Q1 NOI rises 11% on strong retail demand

Mumbai: Nexus Select Trust, India’s maiden listed retail real estate investment trust (REIT), has reported an 11% year-on-year increase in net operating income (NOI) to Rs 510 crore for the quarter ended June, supported by strong retail consumption and leasing activity across its portfolio.

The REIT recorded retail consumption of Rs 3,850 crore during the quarter, up 17% from a year ago, with growth seen across categories. It has declared a distribution of Rs 370 crore, or Rs 2.442 per unit, marking a 10% increase in distribution per unit (DPU) from a year ago and a 7% sequential rise.

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The trust also reported double-digit re-leasing spreads on 0.4 million sq ft of space re-leased during the quarter, while maintaining a balance sheet with an average debt cost of 7.2%, 30 basis points lower than a year earlier, and a loan-to-value ratio of 18%.

During the quarter, Nexus renewed and re-leased 0.2 million sq ft of space ahead of lease expiries at spreads exceeding 20%, while adding brands such as Lego, Kurt Geiger and Harajuku Bakehouse to its portfolio.

“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,” said Dalip Sehgal, ED & CEO, Nexus Select Trust.

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According to him, the REIT remains focused on expanding its portfolio and has announced the acquisition of Diamond Plaza mall in Kolkata, with the transaction expected to close in the first half of 2026-27.

It has also built an acquisition pipeline comprising eight retail assets across India, with two currently under due diligence. Backed by low leverage and nearly $1 billion of available debt headroom, the REIT plans to pursue inorganic growth opportunities as it works towards doubling its portfolio by 2030, he added.

Nexus Select Trust’s portfolio comprises 19 Grade-A consumption centres with a gross leasable area of 10.7 million sq ft across 15 cities, along with three hotel assets and three office assets. The retail portfolio houses around 1,100 domestic and international brands across more than 3,200 stores.