Nexus Select Trust (NSE: NXST / BSE: 543913), India’s first listed Retail REIT, reported results for the fourth quarter and full year ended March 31, 2024. Nexus Select Trust is targeting the acquisition of 3 Grade-A malls in Hyderabad at an attractive basis of 10% stabilized cap rate.
NXST reported strong quarterly operating and financial performance with quarterly tenant sales of INR 28 billion (9% YoY growth) while achieving INR 120 billion sales on a full year basis which implies 13% YoY growth in FY24. During the quarter, the REIT leased 0.26M sf across 181 deals, achieving highest ever occupancy of 97.6%, an improvement by ~130 bps over March 2023.
Dalip Sehgal, Executive Director and Chief Executive Officer at Nexus Select Trust, said, “FY24 has been an excellent year for us with strong operating and financial performance. We have outperformed our projections for FY24 and ended the year with robust performance in the fourth quarter. On the back of this strong operating and financial performance, we are delighted to announce our third distribution of INR 3,168 million translating to INR 2.09 per unit outperforming our guidance.”
NXST achieved a Net Operating Income of INR 4,166 million (13% YoY growth) in Q4 FY24; similarly, NOI for FY24 was achieved in-line with the guidance provided. Backed by a strong balance sheet with low LTV of 14%, attractive debt cost at 8.1% (sequentially reduction of 10 bps), AAA / Stable rating and no near-term large debt maturity, NXST declared a distribution of INR 3,168 million or INR 2.09 per unit for Q4 FY24 outperforming the guidance; with this, distribution for FY24 (from our listing on 19th May 2023) amounts to INR 7.08 per unit / INR 0,719 million. NXST has refinanced INR 9,500 million at ~8.1% (compared to pre-refinancing average debt cost of 8.5%), resulting in annual savings of ~INR 40 million.
“We are excited to expand our footprint with the acquisition of 3 malls in Hyderabad, a market which continues to perform strongly and deliver growth. During the year, we leased 1.1 million square feet achieving our highest ever occupancy of 97.6%. Our tenant sales grew by 13% YoY ahead of the market growth. Our net operating income grew by 16% YoY. In summary, team has surpassed on the projections related to FY24 and given the strong momentum and positive macro-outlook on Grade A Indian retail, we are confident of achieving the FY25 projections”, Sehgal added.
The Board of Directors of Nexus Select Mall Management Private Limited, Manager to the Nexus Select Trust, at its Board Meeting declared that the record date for the Q4 FY24 distribution is May 17, 2024, and the distribution will be paid on or before May 24, 2024
FY25 Guidance (excluding acquisitions): 9% Net Operating Income growth and ~9-10% Distribution growth.
