Nexus Industrial REIT (NXR-UN) Q3 2026 earnings summary

Executive summary

• Q3 NOI rose 7.8% YoY to CAD 34.7 million; normalized FFO, normalized AFFO and LTM Adjusted EBITDA also grew, supported by leasing and completed developments.

• Strategic priorities included investment-grade financing, portfolio sales and advancing British Columbia infill projects with potential data-infrastructure use.

Financial highlights

• Property revenue was CAD 45.7 million versus CAD 43.3 million; net income was CAD 31.9 million versus CAD 3.4 million, including CAD 18.1 million of fair-value gains.

• Normalized AFFO was CAD 16.1 million versus CAD 14.2 million; normalized AFFO per basic unit was CAD 0.166 versus CAD 0.146.

• NOI growth included CAD 1.2 million higher same-property NOI, CAD 1.0 million from completed developments and CAD 0.7 million from Montreal acquisitions, partly offset by straight-line rent and dispositions.

• For 9M, NOI was CAD 102.6 million versus CAD 96.4 million, normalized AFFO was CAD 46.7 million versus CAD 43.7 million, and net income was CAD 51.2 million versus CAD 29.0 million.

Outlook and guidance

• FY2026 industrial Same Property NOI growth guidance was reduced to 3%-4% from mid-single digits, reflecting the Calgary sale and slower lease-up or leasing timing in Calgary and London.

• FY2026 normalized AFFO payout ratio is expected to average below 100%; management considers distributions sustainable. 9M payout ratio was 98.0%.

• Completed developments, rent steps, vacancy lease-up and market-rate re-leasing are expected to support results; St. Thomas expansion has CAD 4.9 million annual stabilized NOI, with expected yields of 11.0% on Calgary small-bay space and 6.6% on Quebec acquisitions.

• Glover Road’s 115,000 sq. ft. Hamilton building is expected to contribute income from Q2 2027 under a planned 10-year lease; rent ramps to market by year three. 2027 guidance will follow the budget process.