Nexus Select Trust reported an 11% year-on-year rise in net operating income to ₹510 crore for the June quarter. The retail REIT also declared a distribution of ₹2.442 per unit, marking a 10% increase compared to last year. This growth is driven by stronger consumer spending and improved leasing across its shopping mall portfolio.
Nexus Select Trust, which manages a large portfolio of retail assets across India, has reported steady financial results for the June quarter. The company announced a net operating income of ₹510 crore, reflecting an 11% increase over the same period last year. This income represents the profit generated from its properties after subtracting operating expenses. The performance was supported by a 17% jump in retail consumption within its malls, which reached ₹3,850 crore for the quarter.
Distribution and Financial Position
Alongside the operating results, the trust announced a distribution of ₹370 crore to its unitholders. This translates to a payment of ₹2.442 per unit, which is a 10% increase from the previous year and a 7% rise compared to the preceding quarter. A key financial detail for investors is the company’s balance sheet strength; the trust currently maintains a low loan-to-value ratio of 18%, indicating a conservative use of debt. Its average cost of debt stands at 7.2%, which helps keep interest expenses in check compared to many other real estate developers who often carry higher borrowing costs.
Leasing Activity and Future Growth
Management highlighted active leasing efforts as a major driver for the current results. During the quarter, the trust renewed or re-leased approximately 0.4 million square feet of space. Of this, nearly 0.2 million square feet saw lease renewals at rental rates more than 20% higher than the previous contracts, reflecting strong demand from retailers. The tenant list was also expanded with new international and premium brands such as Lego and Kurt Geiger.
Looking ahead, the trust is pursuing an expansion strategy. It has announced plans to acquire the Diamond Plaza mall in Kolkata, with the deal expected to close in the first half of the 2026-27 financial year. The company has also set a long-term goal to double its total retail portfolio size by 2030, supported by a pipeline of eight additional retail assets. For investors, the important next steps will be monitoring the completion of the Kolkata acquisition and tracking whether the current trend of double-digit re-leasing spreads can be sustained amid broader retail sector fluctuations.