India’s organised retail story continues to gather pace, and Nexus Select Trust is emerging as one of its strongest beneficiaries. The country’s first listed retail REIT has reported its highest-ever quarterly distribution since listing, underpinned by robust tenant sales growth, steady occupancies and a strengthened balance sheet.
For the quarter ended December 31, 2025, Nexus Select Trust delivered a solid operational and financial performance, reflecting the sustained recovery in discretionary consumption and the growing relevance of destination malls in urban India.
Consumption Rebounds, Tenant Sales Hit New High
At the heart of the strong quarter was a sharp rise in consumer spending. Tenant sales across Nexus Select Trust’s portfolio touched nearly Rs 41 billion, the highest recorded in a single quarter, marking a 16% year-on-year increase.
The growth was broad-based. Categories such as beauty and personal care, fashion, jewellery and entertainment all reported healthy momentum. This mix, combining everyday discretionary spends with experiential retail, helped malls maintain strong footfalls and longer customer dwell times.
The performance also signals a structural shift in consumer behaviour, with organised retail continuing to gain share over unorganised formats, particularly in large urban centres.
Net Operating Income Climbs 15%
Higher tenant sales translated into stronger operating metrics. Retail net operating income rose 15% year-on-year to Rs 4.5 billion during the quarter.
This growth was achieved without compromising occupancy levels. Nexus Select Trust maintained portfolio occupancy at 97% for the 11th consecutive quarter since listing, highlighting the stickiness of its assets and the quality of tenant relationships.
Stable occupancies, coupled with periodic rental escalations, continue to provide predictable cash flows, a critical factor for REIT investors.
Highest Quarterly Distribution Since Listing
Reflecting the strong operating performance, the Trust declared a distribution of Rs 3,586 million, or Rs 2.367 per unit. This marks the highest quarterly distribution since Nexus Select Trust listed on the exchanges.
Management indicated that the Trust remains on track to meet its full-year FY26 guidance on net operating income and distributions, providing visibility to unitholders on income stability.
In a market environment where income certainty is highly valued, this consistency has become a defining feature of Nexus Select Trust’s investment proposition.
Balance Sheet Strength a Key Differentiator
One of the standout aspects of the quarter was proactive balance sheet management. Nexus Select Trust became the first in the industry to raise a 10-year sustainability-linked bond of Rs. 7 billion, including a Rs. 2 billion floating-rate tranche.
The bond issuance was anchored by the International Finance Corporation, a member of the World Bank Group, underscoring institutional confidence in the Trust’s governance and sustainability framework.
The transaction is expected to generate annual interest savings of around Rs 60 million and has reduced the Trust’s overall cost of debt by approximately 30 basis points to 7.2%.
With loan-to-value at a conservative 18% and a AAA stable credit rating, Nexus Select Trust continues to operate with one of the strongest balance sheets in the Indian REIT space.
Strategic Asset Expansion at Elante
Beyond organic growth, the Trust also took selective steps to enhance asset quality. During the quarter, it completed the acquisition of approximately 60,000 square feet of prime retail space within the Nexus Elante complex.
The newly acquired space, located across the ground and first floors, allows the mall to accommodate high-value categories such as luxury fashion. It also enables the activation of a prominent high-street frontage by monetising an underutilised courtyard area.
According to management, the acquisition improves customer circulation and increases dwell time, two critical drivers of retail productivity. Similar micro-expansion opportunities may be pursued across other assets where value accretion is visible.
New Assets Gain Traction
Recently acquired malls, Nexus Vega City and Nexus MBD Neopolis, continued to deliver encouraging results during the quarter. Both assets recorded around 15% growth in tenant sales, alongside positive footfall trends.
The performance of these newer additions validates the Trust’s acquisition strategy, which focuses on well-located, dominant retail assets with scope for operational improvement and tenant remixing.
As integration stabilises, these assets are expected to contribute more meaningfully to overall cash flows.
A Clear Acquisition Pipeline
Looking ahead, Nexus Select Trust remains firmly focused on inorganic growth. The management has outlined a pipeline of 11 potential acquisitions across India, with four assets currently under due diligence.
The stated ambition is to double the portfolio by 2030, a target supported by strong internal cash generation and significant debt headroom of close to $1 billion.
Given the fragmented nature of India’s retail real estate market, the Trust believes there is ample opportunity to scale while maintaining asset quality and financial discipline.
Sustainability and Governance in Focus
Sustainability remains an important pillar of Nexus Select Trust’s strategy. During the quarter, the Trust was recognised as a “Regional Sector Leader – Retail Asia” by GRESB, a global benchmark for ESG performance in real assets.
The sustainability-linked bond issuance further reinforces this positioning, aligning financing costs with environmental and social performance metrics.
For global and domestic institutional investors, such initiatives strengthen the Trust’s appeal beyond pure financial returns.
The Road Ahead
The December quarter performance highlights how Nexus Select Trust is benefiting from a combination of favourable consumption trends, operational discipline and prudent capital allocation.
As organised retail continues to expand and consumer preferences evolve towards experience-led shopping destinations, well-managed mall portfolios are likely to remain in demand.
For Nexus Select Trust, the challenge now lies in executing its acquisition pipeline while preserving balance sheet strength and income visibility. If the recent quarter is any indication, the platform appears well positioned for the next phase of growth.
