Nexus Industrial REIT (TSE:NXR.UN) Posts Quarterly Earnings Results

Nexus Industrial REIT (TSE:NXR.UN) posted its quarterly earnings data on Friday. The company reported C$0.33 EPS for the quarter, reports. The business had revenue of C$45.74 million during the quarter. Nexus Industrial REIT had a net margin of 99.45% and a return on equity of 16.47%.

Here are the key takeaways from Nexus Industrial REIT’s conference call:

• Nexus reported 7.8% year-over-year NOI growth to CAD 34.7 million, 97% occupancy and 4.2% industrial same-property NOI growth. Renewals achieved an average 29% rent lift, while normalized AFFO per unit rose to CAD 0.166.
• Management now expects full-year industrial same-property NOI growth of 3%–4%, citing the Calgary property sale and slower lease-up in Calgary and London. It still expects the full-year normalized AFFO payout ratio to remain below 100%.
• A CAD 300 million bond offering at a 4.563% coupon left Nexus’s CAD 585 million credit facility virtually undrawn and extended its debt maturity profile. Management expects lower borrowing costs and greater financing flexibility.
• Nexus is pursuing data-infrastructure opportunities, starting with a Richmond project requiring an estimated CAD 60.3 million investment and targeting up to 9.9 MW of capacity. Leasing discussions are active but no tenant deal was announced; power approvals remain a dependency, and management says the units could instead serve micro-industrial or storage uses.
• Nexus signed a 10-year lease for its 115,000-square-foot Hamilton development, expected to begin contributing income in Q2 2027, and leased eight of nine units at its Calgary development. The company also advanced property sales as part of its capital-recycling program.

Nexus Industrial REIT Stock Up 5.7%

Shares of Nexus Industrial REIT stock traded up C$0.43 on Friday, reaching C$7.97. 592,042 shares of the company were exchanged, compared to its average volume of 193,271. Nexus Industrial REIT has a 1-year low of C$7.01 and a 1-year high of C$8.46. The company has a market cap of C$773.89 million, a P/E ratio of 14.70 and a beta of 1.13. The company has a debt-to-equity ratio of 129.95, a current ratio of 0.44 and a quick ratio of 0.12. The stock’s 50 day moving average price is C$7.32 and its 200-day moving average price is C$7.78.

Nexus Industrial REIT Announces Dividend

The business also recently disclosed a monthly dividend, which will be paid on Friday, November 13th. Stockholders of record on Friday, November 13th will be paid a $0.0533 dividend. This represents a $0.64 annualized dividend and a dividend yield of 8.0%. The ex-dividend date is Friday, October 30th. Nexus Industrial REIT’s dividend payout ratio (DPR) is presently 118.00%.

About Nexus Industrial REIT

Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada, and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 87 properties comprising approximately 12.3 million square feet of gross leasable area. The REIT has approximately 97,097,000 voting units issued and outstanding, including approximately 73,490,000 REIT Units and approximately 23,607,000 Class B LP Units of subsidiary limited partnerships of Nexus, which are convertible to REIT Units on a one-to-one basis.