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    Nexus Select

    NXSTGood
    Realty·4 Nov 2025
    Management Summary

    Nexus Select Trust delivered a strong Q2 FY26 performance characterized by robust double-digit growth in tenant sales and NOI. The management confirmed they are on track to meet full-year distribution guidance, supported by a recovery in consumption and strategic premiumization. Despite weather-related disruptions in North India, the trust maintained high occupancy and healthy re-leasing spreads while aggressively pursuing an inorganic growth pipeline of 10 assets.

    Highlights

    7

    • Tenant sales grew 16% YoY, with like-for-like consumption growth doubling compared to Q1.

    • Retail Net Operating Income (NOI) increased by 14% YoY in Q2 FY26.

    • Announced a distribution of ₹333 crores, translating to ₹2.198 per unit for the quarter.

    • Portfolio occupancy remains strong at 97% with a re-leasing spread of 20%.

    • Net Asset Value (NAV) rose 8% YoY to ₹159 per unit.

    • Acquisition pipeline remains robust with 10 assets, including 3 under due diligence expected to close in 5-6 months.

    • Average cost of debt stands at 7.5%, with 51% of gross debt in floating instruments.

    What Changed3

    vs Q3 FY26

    Guidance items9 → 4 (-5)Risks discussed1 → 3 (+2)Q&A highlights6 → 3 (-3)

    Key financials

    Single quarter

    06 metrics
    1. 01Retail NOI Growth14%+14.0%YoY
    2. 02Tenant Sales Growth16%+16%YoY
    3. 03Quarterly Distribution₹333 Cr
    4. 04Distribution Per Unit₹2.198
    5. 05Net Asset Value (NAV)₹159+8%YoY

    Segment breakdown

    Retail Categories
    50% Fashion (Sales Mix)2 x previous quarter Fashion Growth10% Entertainment Growth
    Specific Assets
    20% Nexus Vega City Sales Growth-3% Nexus Elante Consumption Impact (Churn)
    List

    Guidance & targets

    4
    CategoryTargetPriority
    Dividend
    Full Year Distribution Guidance
    ₹9.1 to 9.2 per unit
    		High
    Profitability
    NOI Addition Target
    ₹150 crores
    		High
    Margin
    Re-leasing Spreads
    20%
    		High
    Other
    Acquisition Closure
    3 assets
    		Medium

    Risks & concerns

    4
    RiskSeverity

    Severe Weather and Rains

    Heavy monsoons in North India (Chandigarh, Delhi, Amritsar) significantly disrupted footfalls and sales in Q2. — Management acknowledged

    medium

    Interest Rate Sensitivity

    51% of gross debt is in floating instruments, making the Trust sensitive to interest rate fluctuations, though they expect to benefit from potential cuts. — Management acknowledged

    medium

    Tenant Churn and Fit-outs

    Strategic churn (e.g., creating a Jewellery zone at Elante) temporarily impacted consumption by ~3% due to 60,000 sq ft being under fit-out. — Management acknowledged

    low

    Areas of Evasion(1)

    • Specific details (location/size) of the 3 assets under due diligence were withheld for confidentiality.

    Q&A highlights

    3

    “In Seawoods, we have maintained a strong strategic focus on premium brands... In Ahmedabad, we have witnessed a notable resurgence in both sales growth and footfall... opened multiple new stores across the mall in line with our premiumization strategy.”

    Confirms that the 'premiumization' strategy is yielding tangible results in trading density and footfall.

    asked by Adhidev Chattopadhyay, ICICI Securities

    2 min read5 chapters

    Detailed Narrative

    01

    Consumption Recovery and Festive Momentum

    Nexus Select witnessed a significant uptick in consumption, with 16% YoY tenant sales growth in Q2 FY26. Like-for-like consumption growth was over twice that of the first quarter, signaling a positive demand trend. Management highlighted that October saw even stronger double-digit growth, fueled by the festive season and GST rate reductions. Categories like Fashion, Jewellery, and Electronics continue to lead the recovery.

    02

    Inorganic Growth Strategy and Acquisition Pipeline

    The Trust is aggressively pursuing inorganic growth with a pipeline of 10 assets. Three of these assets are currently under due diligence and are expected to close within the next five to six months. Management emphasized their strong balance sheet and low leverage, which provides nearly $1 billion in debt headroom to fund these opportunities. They are targeting Grade-A assets, including both under-leased and optimally leased malls.

    03

    Operational Efficiency and Premiumization

    A key driver of performance has been the 'premiumization' strategy, particularly in malls like Seawoods and Ahmedabad, where trading densities have seen double-digit growth. The Trust maintained a high portfolio occupancy of 97% and achieved a 20% re-leasing spread. Management is proactively allocating more space to high-performing categories like Beauty and Personal Care to optimize the tenant mix.

    04

    Financial Health and NAV Appreciation

    NAV rose 8% YoY to ₹159 per unit, reflecting stable and growing cash flows. The average cost of debt is well-managed at 7.5%, with 51% of debt being floating, positioning the Trust to benefit from future interest rate cuts. The Trust declared its ninth consecutive 100% payout distribution, totaling ₹333 crores for the quarter, and remains on track for its full-year guidance.

    05

    Sustainability and ESG Leadership

    Nexus Select continues to lead the retail sector in sustainability, being the only mall platform in India to achieve a five-star GRESB rating for two consecutive years with a score of 93. Their 'Lakes of Happyness' initiative has rejuvenated 10 lakes to date, with the latest projects completed in Chennai and Hyderabad. This focus on ESG remains a core part of their long-term value creation strategy.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.