Nexus Select Trust (NXST) Q3 24/25 earnings summary

Executive summary

• Net operating income (NOI) grew 6% year-over-year for Q3 FY 2025, with NOI margin at 74% and consumption growth showing early signs of recovery after a soft first half.

• Distribution per unit (DPU) for the quarter was INR 2.196, up 10% year-over-year, with total returns since listing exceeding 50%.

• Leasing occupancy reached 97.6%, with robust demand from both international and domestic brands and 0.31M sf re-leased at 20%+ spreads.

• Operational performance was strong across jewelry, watches, beauty, personal care, family entertainment, and hospitality segments.

• Unaudited financial results for the quarter and nine months ended December 31, 2024, were approved, with no material misstatements or non-compliance noted.

Financial highlights

• Q3 FY25 revenue from operations was INR 5,944 million, with NOI at INR 4,416 million and EBITDA at INR 4,420 million.

• NOI and consumption grew 6% year-over-year in Q3 FY25; DPU increased 10% year-over-year to INR 2.196.

• Cumulative distribution for nine months ended December 31, 2024, was INR 9,620.26 million (INR 6.350 per unit).

• Rental collections improved, with collection timelines reduced from 12 days to 5 days.

• Operating costs increased by only 3% in an inflationary environment of 5%-6%.

Outlook and guidance

• Management expects continued improvement in consumption, supported by government tax relief measures and a healthy tenant pipeline.

• FY 2025 organic distribution projected at INR 8.4 per unit, in line with NOI growth.

• Pipeline for acquisitions remains strong, with several deals expected to close in FY 2026, including Vega City.

• Expectation to launch 4-5 more anamorphic screens in FY26 to enhance in-mall advertising.