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    Nexus Select Q4 FY26 earnings call

    NXST
    Realty·12 May 2026
    Management Summary

    Nexus Select Trust reported a strong Q4 and FY26, with Retail NOI growing 11% and 13% respectively, and DPU increasing 14% for the quarter. The company achieved its FY26 DPU guidance of INR 9.1 per unit and saw its NAV rise by 8%. Strategic leasing activities and a robust acquisition pipeline, including the ongoing Diamond Plaza deal, position the REIT for continued growth, though management maintains a cautious outlook due to global macroeconomic uncertainties.

    Highlights

    5

    • Retail NOI grew 11% year-on-year in Q4 FY26, driven by robust operating momentum.

    • Declared a distribution of INR 2.286 per unit for Q4, marking a 14% year-on-year growth and the 11th consecutive quarter of 100% distribution payout.

    • Achieved FY26 distribution guidance of INR 9.1 per unit, representing a 9% year-on-year growth.

    • NAV increased by 8% to INR 164 per unit, reflecting strong capital appreciation.

    • Re-leased approximately 9 lakh square feet during the year at 18% spreads, demonstrating proactive asset management and strong demand.

    Concerns

    2

    • Management noted global headwinds from the Middle East conflict and macroeconomic issues like inflation and higher input costs, leading to a cautious outlook for guidance.

    • The 7% NOI growth guidance is considered conservative, with an underlying model suggesting 8%-9% growth, indicating potential for under-promising.

    Key financials

    Metrics

    9

    Periods

    3

    Headline

    1
    • NAV per unit
      ₹164
      YoY+8%

    Q4 FY26

    4
    • Retail NOI Growth
      11%
      YoY+11%
    • Distribution
      ₹346 Cr
    • DPU
      ₹2.286
      YoY+14.0%
    • Consumption Growth
      19%
      YoY+19%

    FY26

    4
    • Retail NOI Growth
      13%
      YoY+13%
    • DPU
      ₹9.1
      YoY+9%
    • Consumption Growth
      10%
      YoY+10%
    • LFL NOI Growth
      7.0%
      YoY+7.0%

    Order Book

    high confidence

    Total Value

    ₹ 9 lakh sq ft

    as of 2026-03-31

    quantified

    Composition

    Space churned ahead of expiry(other)
    ₹ 4 lakh sq ft

    Pipeline

    other

    Robust acquisition pipeline of 8 assets across India, with 2 under due-diligence and Diamond Plaza deal underway. Also, 12 lakh sq ft of average lease expiries annually over next four years.

    "The company continues to witness robust demand for leasing and has a strong acquisition pipeline to drive future growth."

    Source:
    Prepared remarks

    Capital allocation

    6
    high confidence
    CategoryHeadline
    Debt

    Debt disclosed

    Cost 7.3%

    Dividend

    ₹2.286/share (interim)

    Payout ratio 100.0%

    M&A

    Subodh Runwal Group partnership

    joint venture · announced · Consideration ₹NaN (undisclosed)

    M&A

    Nexus Elante complex retail space

    acquisition · closed · Consideration ₹NaN (undisclosed)

    M&A

    Diamond Plaza, Kolkata

    acquisition · pending regulatory · Consideration ₹NaN (cash)

    Guidance & targets

    13
    CategoryTargetPriority
    Distribution Per Unit
    DPU
    INR 9.1 per unit
    		High
    Distribution Per Unit
    DPU Growth
    9%
    		High
    Distribution Per Unit
    DPU
    INR 9.8-10 per unit
    		High
    NOI Growth
    NOI Growth
    7%
    		Medium
    Consumption Growth
    Consumption Growth
    8%
    		High
    Rental Growth
    Contracted Escalation
    4-4.5%
    		High
    Rental Growth
    Mark-to-Market Growth
    2%
    		High
    Rental Growth
    Combined Rental & MTM Growth
    6.5%
    		High
    Lease Expiries
    Average Annual Lease Expiries
    12 lakh square feet
    		High
    Rental Upside
    Rental Upside Potential
    20%
    		High
    Acquisition Pace
    Assets Added Annually
    2-3 assets
    		High
    Acquisition Strategy
    Cap Rate Spread
    150 to 200 bps
    		High
    Re-leasing Spreads
    Mark-to-Market Spreads
    20%
    		High

    What to watch in Q1 FY27

    4

    Diamond Plaza Acquisition Closing

    next few months / H1 FY27
    CurrentDeal closing underway, due diligence completed
    TargetDeal closed and integrated into portfolio

    Why it matters

    This acquisition is key to expanding Nexus Select's presence in Eastern India and unlocking value from an under-managed asset.

    Diamond Plaza, Kolkata deal closing underway.

    Risks & concerns

    3
    RiskSeverity

    Macroeconomic Headwinds

    Global headwinds from Middle East conflict, inflation, and higher input costs are being monitored, leading to cautious guidance. — Management acknowledged

    medium

    Geopolitical Situation

    Current geopolitical situation makes it prudent to be cautious, influencing conservative NOI guidance despite strong consumption trends. — Management acknowledged

    medium

    Rising Interest Costs

    While interest costs have come down to 7.3%, the potential for future increases is a watch item, though current budgets are based on a 7.5% rate. — Analyst acknowledged

    low

    Q&A highlights

    6

    “At least 90% of our rentals will grow at about 4-4.5%, which is the contracted escalation. On an average 10%-11% of our rentals expires every year with mark-to-market potential of 20%, which gives you about 2% MTM growth. So, rental escalations and MTM growth combined will give 6.5% growth and balance growth will depend on the incremental revenue share from consumption growth that we can forecast.”

    Provides a detailed component-wise breakdown of how the company expects to achieve its NOI growth, including contracted rent, mark-to-market gains, and revenue share.

    asked by Mohit Agrawal

    3 min read6 chapters

    Detailed Narrative

    01

    Overall Performance and Milestones

    Nexus Select Trust completed 10 years, building a portfolio of 19 malls across 15 cities, comprising 11 million square feet of operational retail space. The portfolio generates annual consumption of over INR 14,000 crores and delivers close to INR 2,000 crores of net operating income. The company supports an ecosystem of over 25,000 people, including 5,000 employees and 20,000 tenant employees. The unit price has appreciated over 50% since IPO, and the unitholder base expanded to over 70,000.

    02

    Consumption and Category Trends

    Q4 FY26 saw robust footfall growth of 8%, translating into 19% consumption and revenue share growth. For the full year FY26, consumption grew by 10%. Fashion, accounting for 50% of consumption, grew 12% in Q4, marking its third consecutive quarter of strong performance. Jewellery sales recorded their highest-ever quarterly performance, contributing 6% to overall consumption. Family Entertainment Centres and Multiplexes sustained 18% growth, while Electronics grew 22% in Q4 FY26.

    03

    Leasing and Marketing Performance

    The company re-leased approximately 9 lakh square feet during FY26 at 18% spreads and strategically churned 4 lakh square feet ahead of expiry. Occupancy stands at 97%, 400 bps ahead of market average. Approximately 12 lakh square feet of leases are expected to expire annually over the next four years, with 45% of gross rentals having a 20% rental upside potential. The NexusOne app now has over 1 million users with 1.5 lakh monthly active users and a 56% customer repeat rate.

    04

    Acquisition Strategy and Pipeline

    Nexus Select Trust aims to double its portfolio by 2030, focusing on three strategic pillars: tie-ups with developers for under-construction malls (e.g., 7 lakh sq ft mall in MMR with Subodh Runwal Group), strategic expansion within existing malls (e.g., 60,000 sq ft bolt-on acquisition in Nexus Elante), and leveraging the sponsor pipeline (e.g., South City asset in Kolkata). The company has a robust pipeline of 8 assets, with Diamond Plaza in Kolkata (estimated INR 350 crores) nearing closure, and plans to add 2-3 assets annually.

    05

    Financial Performance and Distributions

    Retail Net Operating Income (NOI) grew 11% year-on-year in Q4 FY26 and 13% for the full year FY26. The company declared a distribution of INR 346 crores for Q4, translating to INR 2.286 per unit, a 14% year-on-year growth. Nexus Select achieved its FY26 DPU guidance of INR 9.1 per unit, representing a 9% year-on-year growth. The NAV increased by 8% to INR 164 per unit. The cost of debt is 7.3%, 60 bps lower than March 2025, and the LTV stands at 18%.

    06

    Macro Trends and Outlook

    Demand-supply dynamics remain favorable with no near-term Grade-A supply in primary catchments. While mindful of global macroeconomic headwinds🌐 like inflation and higher input costs, the company has not seen a slowdown in deal-making. Consumption trends in April and May 2026 remained healthy with strong double-digit growth. Management maintains a cautious 7% NOI growth guidance for FY27, but their underlying model suggests an 8-9% growth trajectory, with a target DPU growth of 9% for FY27 (INR 9.8-10 per unit).

    This is an AI-generated summary of a publicly available earnings call transcript.