Nexus Select Trust reported net operating income (NOI) of INR 504 crore for the second quarter of FY27, an 8% increase from a year earlier. Revenue from operations reached INR 670 crore and EBITDA was INR 478 crore. Leasing occupancy stood at 97% at the end of the first half of the financial year, with trading occupancy at 94%.

Tenant sales grew 13% year over year to INR 3,909 crore in Q2. For the first half of FY27, sales increased 15% to INR 7,760 crore, while NOI rose 9% to INR 1,014 crore. The trust recorded 37 million visits to its properties during the quarter, up 4% year over year, and trading density increased 14% to INR 1,986 per square foot per month.

Nexus Select re-leased 0.9 million square feet during the first half at an average spread of 22% above expiring rents. Around 0.4 million square feet was re-leased ahead of expiry at spreads exceeding 20%. The trust said roughly half of gross rentals due to expire through FY30 carry estimated mark-to-market upside of about 20%.

The trust declared a Q2 distribution of INR 2.367 per unit, equal to INR 359 crore in total. It marked the 13th consecutive quarter in which 100% of net distributable cash flow was paid out. The record date is November 6, 2026, with payment scheduled on or before November 16. Management retained its FY27 distribution guidance of INR 9.8 to INR 10 per unit.

Gross debt stood at INR 6,219 crore and net debt at INR 5,653 crore. The average cost of debt was 7.2%, net debt to EBITDA was 2.9 times, and interest coverage was 4.2 times. The trust reported an AAA/Stable credit rating and a loan-to-value ratio of 18%. Debt maturities include INR 250 crore in the second half of FY27 and INR 693 crore in FY28.

Two development projects are on track for completion in 2028: Nexus Runwal Gardens Mall in the Mumbai Metropolitan Region and the Galaxy Complex in Guwahati. The trust also has six retail assets in its acquisition pipeline, with two assets totaling 1.2 million square feet under due diligence. Management said Diamond Plaza in Kolkata is expected to close soon.

Outside retail, the office portfolio recorded 90% occupancy, with revenue up 11% to INR 36 crore and NOI up 16% to INR 29 crore. The hospitality portfolio reported 73% occupancy and revenue of INR 36 crore, a 6% annual increase; EBITDA was INR 13 crore, unchanged year over year.

Nexus Select said its portfolio covers 19 consumption centers in 15 cities, with 10.7 million square feet of retail space and more than 3,200 stores. Renewable energy capacity exceeded 67 megawatts on a DC basis, and about 55% of portfolio energy consumption for common areas and HVAC systems came from renewable sources in the first half of FY27. The trust’s target is net-zero Scope 1 and Scope 2 emissions by 2030.

Management expects Q3 consumption growth of approximately 13% to 15%, while noting that comparisons are affected by Diwali falling in November. The trust also aims to raise its rent-to-sales ratio from 11.2% to 13%–14% by FY30, supported by lease renewals, acquisitions and development completions.

Sources: Investing.com News.