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Nexus Select Trust, India's retail-focused Real Estate Investment Trust (REIT), reported an 11% year-on-year increase in net operating income (NOI) to INR 510 crore for the quarter ended June. The trust also declared a distribution of INR 370 crore to unitholders, equivalent to INR 2.442 per unit, representing a 10% increase in distribution per unit. Alongside its quarterly performance, Nexus Select Trust outlined its expansion strategy, including the acquisition of Diamond Plaza mall in Kolkata and the identification of eight shopping malls across India for potential acquisitions. The trust currently owns 19 shopping malls, three hotels and three office assets across 15 cities and aims to double its portfolio by 2030.
Nexus Select Trust reported an 11% year-on-year increase in net operating income (NOI) to INR 510 crore for the quarter ended June, driven by higher consumption and leasing activity across its retail portfolio. The retail-focused Real Estate Investment Trust (REIT) also announced a distribution of INR 370 crore to its unitholders and outlined plans to expand its portfolio through acquisitions, including the proposed purchase of Diamond Plaza mall in Kolkata.
According to the trust's regulatory filing, the quarterly growth in NOI was supported by continued leasing momentum and strong consumer spending across its shopping mall assets. The trust declared a distribution of INR 370 crore for the June quarter, equivalent to INR 2.442 per unit, marking a 10% increase in distribution per unit in line with its stated guidance.
Nexus Select Trust currently owns 19 shopping malls with a combined gross leasable area of 10.7 million sq ft spread across 15 cities in India. Its portfolio also includes three hotels comprising 450 keys and three office assets with a gross leasable area of 1.25 million sq ft, making it one of the country's largest retail-backed REIT platforms.
Executive Director and Chief Executive Officer Dalip Sehgal said the trust had delivered robust double-digit consumption growth during the quarter despite heightened global uncertainties. He added that, since listing, the REIT had distributed more than INR 4,080 crore to unitholders while delivering an internal rate of return (IRR) of 25%, reflecting its focus on providing consistent returns.
The trust is pursuing an expansion strategy aimed at doubling its portfolio by 2030. As part of this plan, it is acquiring Diamond Plaza mall in Kolkata, with the transaction expected to be completed during the first half of FY27.
In addition to the Kolkata acquisition, Nexus Select Trust has identified eight shopping malls across India as potential acquisition opportunities. Sehgal said the trust had developed a robust acquisition pipeline, with two assets currently undergoing due diligence.
He further stated that the REIT's financial position would support its expansion plans. According to the company, a strong balance sheet, low leverage and nearly USD 1 billion of available debt headroom provide sufficient financial flexibility to pursue inorganic growth opportunities while continuing to scale the platform.
The latest quarterly results underline the trust's continued focus on expanding its retail real estate portfolio through acquisitions while maintaining income growth and regular distributions to unitholders. The proposed acquisitions and ongoing due diligence reflect its strategy of strengthening its presence in India's organised retail real estate market.
Source - PTI
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