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Nexus Industrial REIT (NXR-UN) investor relations material
Nexus Industrial REIT Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Transitioned to a pure-play Canadian industrial REIT, completing the sale of 33 office, retail, and noncore industrial properties over the past year.
Net operating income (NOI) increased 1.7% year-over-year to $32.2 million, despite asset sales.
Normalized FFO per unit rose 5.6% year-over-year in Q2, and industrial Same Property NOI grew 2.8% in Q2 and 4.3% YTD.
Completed 395,412 sq. ft. of leasing in Q2 at a 38% average spread over expiring rents; 1.19 million sq. ft. leased YTD at an 82% spread.
Advanced two major development projects expected to add $6.6 million in annual stabilized NOI, with completion planned for Q3 2025.
Financial highlights
Q2 2025 NOI increased 1.7% year-over-year to $32.2 million; six-month NOI up 5.0% to $64.2 million.
Q2 net loss of $7.6 million, mainly due to lower fair value adjustments and fair value losses on Class B LP units and investment properties.
Normalized FFO per unit rose to $0.188 in Q2 and $0.375 YTD; normalized AFFO per unit increased to $0.160 in Q2 and $0.313 YTD.
NAV per unit at June 30 was $13.17, down 0.2% from Q4 2024.
AFFO payout ratio improved to 97.6% in Q2 from 108.7% a year ago; normalized AFFO payout ratio at 100.3% in Q2.
Outlook and guidance
Mid-single digit same property NOI growth guidance for 2025 remains unchanged, with strong confidence in renewal activity and rent lifts.
Anticipates $6.6 million in annual stabilized NOI from two development projects completing in Q3 2025, with going-in yields of 9.0% and 11%.
Early progress on 2026 lease renewals, with about 40% already completed and expectations for continued rent growth.
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