Nexus Select Trust delivered robust financial results for the quarter ended June 30, 2026, with consolidated net profit rising 30.89% year-on-year to ₹156.52 crore in Q1 FY27, compared to ₹119.58 crore in the previous year. According to reports from Business Standard, the Real Estate Investment Trust also achieved sales growth of 10.91% to ₹680.53 crore, up from ₹613.58 crore in Q1 FY26. The company has also declared a distribution of ₹370 crore to unit holders, equivalent to ₹2.442 per unit, for the June quarter, representing 10% growth in DPU in line with guidance. This marks the company's 12th consecutive quarter of 100% distribution payout to unitholders, demonstrating consistent performance. The company's revenue from operations stood at ₹681 crore, up about 11% YoY, while EBITDA reached ₹491 crore, up 10.18% YoY. On a quarter-on-quarter basis, NOI grew marginally by 2.28%, while EBITDA increased by 7.79% and revenue by 4.38%. The record date for the Q1 FY27 distribution is set for August 06, 2026, with payments scheduled on or before August 13, 2026.
Nexus Select Trust expects to sign definitive agreements for two mall acquisitions in eastern India over the next 60-90 days, as reported by Business Standard. Pratik Dantara, chief investor relations officer and head of strategy at Nexus Select Trust, confirmed that the two assets are currently under due diligence. The company's objective is to complete two to three acquisitions every year and add around ₹125-150 crore of stabilised annual net operating income (NOI) through these acquisitions. While declining to disclose the value or expected NOI contribution of the two proposed acquisitions due to confidentiality agreements, Dantara said the trust continued to maintain an acquisition pipeline of eight assets. The company aims to double its 10.7 million square feet portfolio, comprising 19 consumption centres, by 2030. In April, Nexus announced the acquisition of Diamond Plaza, Kolkata, for ₹347.5 crore, with the transaction expected to close in the first half of FY27.
The REIT witnessed exceptional leasing activity with quarterly consumption of ₹3,850 crore, up 17% YoY, demonstrating robust demand for retail spaces. As reported by Business Standard, Nexus leased 0.4 million square feet of retail space in Q1 FY27, compared with 0.27 msf in Q1 FY26. The company achieved an average spread of 19% on re-leasing during the quarter, reflecting strong rental growth. Notably, 0.2 million square feet was re-leased ahead of lease expiries at spreads exceeding 20%, demonstrating strong tenant demand. The portfolio achieved a leasing occupancy of 96% and trading occupancy of 95%, with the weighted average lease expiry (WALE) standing at 4.5 years. CEO Dalip Sehgal noted that the company delivered robust double-digit consumption growth despite heightened global uncertainties, stating this performance reflects the resilience of their portfolio and operational execution strength in challenging conditions. During the quarter, Nexus renewed and re-leased 0.2 million sq ft of space ahead of lease expiries at spreads exceeding 20%, while adding brands such as Lego, Kurt Geiger and Harajuku Bakehouse to its portfolio.
Alongside acquisitions, Nexus is focusing on premiumising its portfolio by increasing the presence of jewellery, beauty, watches, eyewear and premium fashion brands, a strategy it believes will make the portfolio more resilient through economic cycles. On funding future acquisitions, Dantara said the REIT was likely to rely on debt rather than equity funding. "At this stage, any fundraising is likely to be through debt. We would look at raising equity only if the size or nature of future acquisitions requires it," he said. He added that Nexus, with a loan-to-value ratio of around 18%, had sufficient headroom to fund growth. The company maintains a strong balance sheet, low leverage, and nearly USD 1 billion of available debt headroom for acquisitions, backed by a AAA/Stable credit rating and an attractive debt cost of 7.2%, which is 30 basis points lower than the previous year.
Despite concerns that geopolitical tensions in West Asia could weigh on discretionary spending, Dantara said the conflict had the opposite effect on the company's malls. "Many families cancelled their travel plans to West Asia. Domestic travel also became expensive due to high demand, while East Asia became significantly more expensive. As a result, many families chose not to travel at all and instead spent more within their own cities," he said. This translated into higher spending on shopping and dining at Nexus malls, with families dining out more frequently than they otherwise would have. The company also saw its food and beverage tenants benefit during the liquefied petroleum gas shortage, as many of its malls have piped gas infrastructure, while others continued to receive LPG supplies because they house multiple restaurants. The REIT expects net distributable cash flow to be at the upper end of its earlier guidance of ₹9.8-10 per unit and continues to guide for 7-8% NOI growth during FY27. In FY26, the REIT's NOI stood at ₹1,929.6 crore, it distributed ₹1,375.8 crore, equivalent to ₹9.081 per unit, during the year.
