The company, which reported 8% Y-o-Y Retail NOI growth in quarter ended 30 June, aims to double its retail net operating income in the next five years
Mumbai: Nexus Select Trust, India’s first listed Retail REIT, is in discussions to acquire five assets and aims to double its net operating income from its retail portfolio in the next five years, Dalip Sehgal, Executive Director and Chief Executive Officer said in a statement announcing its quarterly results.
“On the inorganic growth front, our strategy remains intact. With the vision to double our retail portfolio net operating income in the next 5 years, we have signed two term sheets to acquire 2 retail assets totalling ~0.8 million square feet in the quarter,” Sehgal said.
“These will be funded by debt and are expected to close in the next few months. Excluding these, our acquisition pipeline remains robust with ongoing discussions for another 5 assets,” he added.
In addition, the company has 5 assets under acquisition including the acquisitions announced in the past.
The company achieved a retail net operating income of Rs 3,719 million (8% YoY growth) in the first quarter ended June 30, 2024, which is in line with its projections for the financial year (FY) 2025.
The company reported achieved tenant sales of about Rs 30 billion in the quarter, which witnessed sequential improvement in tenant sales and footfall growth.
“We witnessed robust retail net operating income growth of 8% YoY in market conditions where macro consumption growth was soft due to one-off reasons like uneven weather patterns and general elections,” Sehgal said.
On the back of this performance, the company announced its fourth distribution of Rs3,253 million in line with FY25 projections.
“With a clear emphasis on capital spending to generate growth and a strong focus on employment along with some of the proposed tax amendments in Budget 2024, we expect a strong recovery in consumption starting the second half of FY25,” he said.
