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    Nexus Select

    NXST
    Realty·2 Feb 2026
    Management Summary

    Nexus Select Trust delivered a robust Q3 FY26, marked by 15% YoY Retail NOI growth and a record quarterly distribution. Consumption momentum remained strong at 16% YoY, driven by broad-based growth across categories, notably Jewellery and Fashion. The company continued its strategic inorganic growth with a key acquisition in Nexus Elante and a healthy pipeline, while also demonstrating strong financial discipline through debt cost reduction and efficient working capital management. Despite a slight, temporary moderation in like-for-like consumption due to store churn, the outlook remains positive with firm guidance for FY26.

    Highlights

    5

    • Retail NOI grew 15% year-on-year in Q3 FY26, with like-for-like NOI growth at 9%.

    • Q3 FY26 distribution of INR 359 crores (INR 2.367 per unit) is the highest ever quarterly distribution since listing.

    • Overall consumption grew 16% year-on-year in Q3 FY26, with strong performance in Jewellery (57% YoY sales growth) and Fashion.

    • Leasing demand remained robust, releasing approximately 2 lakh square feet during the quarter at 20% spreads.

    • Completed the acquisition of 60,000 square feet in Nexus Elante and maintains a robust acquisition pipeline of 11 assets, with 4 under due-diligence.

    Concerns

    1

    • Like-for-like consumption growth showed a slight moderation compared to Q2, attributed to temporary store fit-outs and tenant churn in top malls like Select Citywalk and Elante.

    Key financials

    Metrics

    10

    Periods

    2

    Headline

    8
    • Retail NOI Growth
      15%
      YoY+15%
    • Like-for-like Retail NOI Growth
      9%
      YoY+9%
    • YTD Cumulative Distribution
      ₹1,029 Cr
    • YTD Cumulative Distribution Per Unit
      ₹6.795
    • Overall Consumption Growth
      16%
      YoY+16%

    Q3

    2
    • Distribution
      ₹359 Cr
    • Distribution Per Unit
      ₹2.367

    Segment breakdown

    Fashion
    50% Share of Overall Consumption6% Sales Growth LFL
    Entertainment
    17% Share of Overall Consumption
    F&B
    12% Share of Overall Consumption
    Jewellery
    7.0% Share of Overall Consumption57.0% Sales Growth
    List

    Order Book

    high confidence

    Inflow this qtr

    2,00,000 sq ft

    Pipeline

    other

    Robust pipeline of 11 assets across India, with 4 assets under due-diligence.

    "Strong demand for leasing, with 2 lakh sq ft released at 20% spreads. Robust acquisition pipeline with 11 assets, 4 under due-diligence."

    Source:
    Prepared remarks

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Debt

    Debt disclosed

    Dividend

    ₹2.367/share (interim)

    M&A

    Nexus Elante complex

    acquisition · closed

    Liquidity

    Liquidity disclosed

    Average outstanding receivables at a historic low of approximately three days. Close to USD 1 billion of debt headroom.

    Guidance & targets

    9
    CategoryTargetPriority
    NOI
    FY26 NOI Guidance
    on track
    		High
    Distribution
    FY26 Distribution Guidance
    on track
    		High
    Inorganic Growth
    Annual NOI Addition from Acquisitions
    INR 150 crores
    		High
    Portfolio Size
    Total Malls
    30-35 malls
    		High
    Sustainability
    Lakes Restoration
    15 lakes
    		High
    NOI Growth
    Steady State NOI Growth
    8.5% to 9%
    		High
    NOI Growth
    Steady State NOI Growth (incl. cost savings, hotels/offices)
    8.5% - 9%
    		High
    NOI to Consumption
    NOI to Consumption Ratio
    10% to 12%
    		High
    Occupancy
    Increased Occupancy Impact
    100 bps increase will result in better cash flows
    		Medium

    What to watch in Q4 FY26

    4

    Closing of 4 assets under due diligence

    next 4-6 months
    Current4 assets under due diligence
    TargetClosing of these assets within 4-6 months

    Why it matters

    These acquisitions are expected to contribute INR 150 crores of annual NOI, crucial for inorganic growth targets.

    Over the next four to six months, we are looking to close the four assets which are currently under diligence. So hopefully💬 over the next few months, you will see us signing and closing some of these deals.

    Risks & concerns

    1
    RiskSeverity

    Temporary dip in like-for-like consumption growth

    Attributed to store fit-outs and tenant churn in top malls, described as a transitional phase expected to normalize. — Analyst downplayed

    low

    Q&A highlights

    6

    “retail NOI growth is about 9% like-for-like versus reported of 15% and rental growth broadly replicates these numbers. ... While fashion at 6% may appear to be a laggard, it is important to note that over the last four to five quarters, fashion growth was either flat or in low single digits. In that context, 6% represents a meaningful improvement.”

    Clarifies the difference between reported and like-for-like NOI growth and provides context on the performance of key retail categories, particularly fashion's recovery.

    asked by Mohit Agrawal

    2 min read5 chapters

    Detailed Narrative

    01

    Robust Q3 FY26 Performance and Record Distribution

    Nexus Select Trust reported a strong Q3 FY26, achieving a 15% year-on-year Retail Net Operating Income (NOI) growth. This performance enabled the company to announce its highest-ever quarterly distribution since listing, totaling INR 359 crores, which translates to INR 2.367 per unit. Cumulatively for the year, distributions reached INR 1,029 crores or INR 6.795 per unit, putting the company firmly on track to meet its full-year FY26 NOI and distribution guidance.

    02

    Strong Consumption Momentum Across Categories

    The company witnessed robust consumption momentum in Q3 FY26, with overall year-on-year growth of 16%, following 12% in Q1 and 16% in Q2. This growth was broad-based, with Fashion (50% of consumption) showing strong performance for the second consecutive quarter, and Jewellery (7% of consumption) recording a very strong 57% year-on-year sales growth. Family Entertainment Centres and Beauty also sustained healthy momentum, contributing to a diverse and resilient consumption trend that continued into January 2026.

    03

    Strategic Leasing and Asset Management

    Leasing activity remained strong, with approximately 2 lakh square feet released during the quarter at healthy 20% spreads. Over the past nine months, 3 lakh square feet of space was strategically churned ahead of expiry out of 8 lakh square feet released, demonstrating proactive asset management. Key initiatives included the opening of Foot Locker's first South India flagship store at Nexus Koramangala and the curation of a high-end jewellery zone spanning over 30,000 square feet at Nexus Elante, housing 10+ marquee brands including Forevermark's first store in that market.

    04

    Balance Sheet Strength and Inorganic Growth Strategy

    Nexus Select Trust reinforced its robust balance sheet by raising INR 700 crores through a 10-year sustainability-linked bond, expected to yield annualized savings of INR 6 crores. Proactive debt management has led to a 120 basis points reduction in debt costs since listing. The company successfully acquired 60,000 square feet of prime retail space in Nexus Elante and maintains a robust acquisition pipeline of 11 assets, with 4 under due-diligence. With low leverage and close to USD 1 billion in debt headroom, the company is well-positioned to execute its inorganic growth strategy, targeting INR 150 crores of annual NOI addition from acquisitions for the next five years.

    05

    Sustainability and Talent Development Initiatives

    The company continues to lead in sustainability, recognized as a 'Regional Sector Leader - Retail, Asia' by GRESB. Under its 'Lakes of Happyness' initiative, 10 lakes have been rejuvenated, with a target to restore 15 lakes by 2026. Nexus also launched 'Aarunya,' an education program for frontline staff in collaboration with Medhavi Skills University, India's first higher education program in mall management, underscoring its commitment to talent development and long-term vision.

    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.