Nexus Industrial REIT (NXR-UN) Q4 2024 earnings summary

Executive summary

• Completed strategic repositioning to a Canadian-focused pure-play industrial REIT, divesting office, retail, and non-core assets to optimize the portfolio and strengthen the balance sheet.

• Achieved strong operational execution with proactive leasing, mark-to-market rent lifts, and embedded annual rental steps, driving robust same-property NOI growth.

• Completed three development projects adding 500,000 sq ft of GLA; two more projects to finish mid-2025, expected to contribute over $13 million to NOI annually.

• Industrial portfolio NOI grew 12.4% year-over-year to $126 million, with full-year industrial SPNOI growth of 4.7%.

Financial highlights

• Q4 2024 net income was $49.7 million, up from $2.1 million in Q4 2023, mainly due to fair value gains on Class B LP units and derivatives.

• Q4 net operating income rose 10% year-over-year to $32.1 million, driven by acquisitions, organic growth, and development.

• Normalized AFFO per unit for Q4 increased to $0.161 (up $0.011); full-year Normalized AFFO per unit decreased to $0.602 (down $0.036).

• NAV per unit at December 31, 2024, was $13.19, up 2.5% year-over-year.

Outlook and guidance

• Expecting mid-single-digit industrial same-property NOI growth for 2025, supported by strong leasing activity and embedded rent escalations.

• Two major development projects to complete in Q2 2025, expected to add $6.8 million in annual stabilized NOI.

• Proceeds from retail asset sales to be used for debt reduction and funding development.