Nexus Select Trust (NXST) Q2 24/25 earnings summary

Executive summary

• Achieved 5% year-on-year retail NOI growth in Q2 FY25, with NOI reaching INR 3,713M and revenue from operations at INR 5,544M.

• Declared distribution of INR 3,041M (INR 2.007 per unit) for the quarter, representing a 100% payout of NDCF.

• Tenant sales reached INR 30 billion, up 2% year-on-year, with a two-year CAGR of 9%-10% and strong October performance with 18% sales growth.

• Occupancy stands at 97.4%, up 40 bps year-over-year, with most malls near full occupancy and a healthy tenant pipeline.

• Received a 5-star GRESB rating, ranking second in Asia among listed retail peers, and reinforced ESG leadership.

Financial highlights

• Retail NOI grew 5% year-on-year in Q2 FY25; EBITDA for Q2 was INR 3,972M.

• Distribution per unit at INR 2.007, with 72% of NDCF tax-free at distribution.

• Consolidated revenue from operations for the half year was ₹11,081.69 million, with EBITDA of ₹7,958.62 million.

• Net debt at INR 36Bn, with a low 14% LTV and AAA/Stable credit rating.

• Average debt cost reduced to 8.0% post-refinancing.

Outlook and guidance

• Confident in meeting full-year NOI and NDCF guidance, expecting stronger performance in H2.

• Guidance is based on organic, like-for-like growth; Vega City Mall acquisition will be incremental.

• Long-term organic growth rate expected at 9%-10% annually.

• Festive and wedding season in H2 expected to drive continued momentum.

• Distribution policy remains to pay at least 90% of NDCF semi-annually.