Nexus Select Trust reported an 8 per cent rise in net operating income in the June quarter at ₹412.7 crore, while it leased 2.3 lakh square feet over 192 deals of which 1.8 lakh square feet was re-leased with a spread of 18 per cent.
Revenue from operations rose 6 per cent on year to ₹553.8 crore, driven by minimum guaranteed rental escalations and increase in trading occupancy in the retail portfolio.
Occupancy at its malls rose 70 basis points to 97.4 per cent. Consumption growth was a modest 3 per cent with demand in April and May being hit by heatwave conditions across the country as well as general elections.
Tenant sales at its malls were at ₹3000 crore, with growth and footfalls being seen in June. Retail NOI was ₹372 crore.
The REIT said it has signed term sheets for two more acquisitions of retail assets with a total area of 8 lakh square feet. It is already in the process of acquiring three assets in Hyderabad.
It announced a total payout of ₹325.3 crore in the quarter at ₹2.147 per unit in line with the projections made for the current fiscal year.
“With clear emphasis on capital spending to generate growth and a strong focus on employment along with some of the proposed tax amendments in Budget 2024, we expect strong recovery in consumption starting second half of FY25,” said Dalip Sehgal, Executive Director, and CEO.
On growth through acquisitions Sehgal said the REIT would be doubling its retail portfolio in the next five years. The acquisitions, for which term sheets have been signed, would be funded by debt, and would close in the next few months.
He added that it was in discussions to acquire five more assets. The board approved raising up to ₹1700 crore through debt securities.
It ended the quarter with a low loan-to-value ratio of 14 per cent that provided it headroom of $1 billion for future acquisitions. Its stated intent is to acquire 15 lakh square feet or 2-3 malls every year. With this strategy it aims to double its retail NOI by FY29.
Nexus Select Trust owns and operates 17 malls across the country with a total leasable area of 10 million square feet. It also has two hotel assets and three office assets.