Nexus Select Trust records 11% growth in Q1 consumption, NOI up 12%

Nexus Select Trust, India’s maiden listed retail assets-focused Real Estate Investment Trust (REIT), has recorded 11% year-on-year growth in tenant sales to Rs 3,300 crore on the back of improvements in consumption trends across its portfolio.

Retail Net Operating Income (NOI) for the quarter stood at Rs 420 crore, a 12% increase over the previous year. The REIT declared a distribution of Rs 337.8 crore or Rs 2.23 per unit, its eighth consecutive full payout, up 12% sequentially.

The REIT’s CEO Dalip Sehgal attributed the resilient performance to stable operations despite geopolitical disruptions and early monsoon impact in North and West India. “We remain confident in meeting our 2025-26 guidance,” he said, highlighting the integration of recently acquired assets.

“With two successful acquisitions completed over the last six months and a strong pipeline ahead, we remain committed to executing on our value-accretive growth strategy. Backed by a low leverage profile and $1 billion of debt headroom, we are well-positioned to scale further while continuing to deliver long-term value to our unitholders,” Sehgal said.

Vega City mall, acquired in February, reversed previous negative trends with a 12% rise in tenant sales. MBD Complex, acquired in May, recorded its highest-ever single-day sales on June 29, aided by focused marketing and operational interventions, he said.

The REIT’S loan-to-value ratio stood at 18% and average cost of debt reduced by 40 basis points sequentially to 7.5%.

The trust also commissioned a 13 MW solar plant in Karnataka to power its Bengaluru malls, expected to generate around 19 million units annually and deliver over 20% returns on cost.