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Nexus Select Trust reported strong Q1 FY26 performance with net operating income rising 11.65% to INR 460.2 crore and total income up 12% to INR 647.9 crore. Retail tenant sales touched INR 3,300 crore amid steady 97% occupancy. Despite a 14% drop in net profit, the REIT maintained its eighth consecutive full payout of INR 2.23 per unit. Key acquisitions-Vega City, Bengaluru and MBD Ludhiana-showed positive traction. Debt cost dropped to 7.5%, with ample headroom for growth. Operating across 19 Grade-A retail centres in 15 cities, the REIT expects 15% NOI and 10% distribution growth in FY26.
Nexus Select Trust delivered robust financial and operational performance in the quarter under review, with net operating income climbing by about 11.65%, taking it to INR 460.2 crore, compared to INR 412.2 crore a year earlier. Total income advanced nearly 12% to INR 647.9 crore, while net profit declined around 14% to INR 119.6 crore. Advertisement
Consumption at its malls rose close to 11%, pushing tenant sales to approximately INR 3,300 crore and ensuring retail NOI growth of about 12%, despite geopolitical tensions and an early monsoon affecting operations in North and West India. Occupancy remained firm at 97%, and around 0.27 million square feet was re-leased during the period.
The REIT announced a distribution totalling INR 3,378.45 million (INR 2.23 per unit), marking its eighth straight full payout. That figure includes interest, dividends, other income, and SPV debt repayment.
Management highlighted a reduction in average debt cost by roughly 40 basis points, bringing interest expense to around 7.5%. Supported by a low leverage ratio and approximately USD 1 billion in unutilised debt capacity, the REIT emphasized its readiness to pursue further growth initiatives.
Previously completed acquisitions Vega City Mall in Bengaluru and MBD Complex in Ludhiana are already yielding positive results: Vega City saw a turnaround with tenant sales up 12%, and MBD delivered its best single day sales to date through focused marketing efforts.
Operationally, the portfolio remained stable at around 19 Grade A consumption centres with over 10.6 million sq ft across 15 cities, sustaining around 97% retail occupancy. FY25 metrics included roughly INR 124 billion in tenant sales, about 130 million annual footfalls, and a portfolio NOI of INR 275.3 billion.
FY26 guidance remains intact, with the REIT targeting roughly 15% NOI growth and about 10% distribution growth, thanks to operational momentum and value accretive acquisitions.
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