Nexus Select Trust - Focus On NOI Growth, New Asset Infusion In FY25: ICICI Securities

ICICI Securities Report

Nexus Select real estate investment trust clocked 13% like-to-like consumption growth across its urban consumption centres (malls) in FY24 which resulted in FY24 consumption worth Rs 120.0 billion. This translated to FY24 net operating income of Rs 16.1 billion.

With 98% retail occupancy as of March-24 and the REIT manager guiding for 9% NOI growth in FY25, we expect Nexus to clock NOI CAGR of 10.4% over FY24- 26E on expected ramp-up in occupancies in existing assets, annual rental escalations and mark-up of leases that are expiring.

We retain our Add rating with a revised March-25E discounted cash flow-based target price of Rs 157/share (earlier Rs 146) valuing assets at 6.5% cap rate versus 7% earlier considering potential value accretion from right of first offer assets.

At current market price of Rs 147, we expect Nexus REIT to deliver NDCF distribution yield of 5.8% in FY25E and 6.1% in FY26E.

Key risks: Slowdown in consumption / fall in occupancies and rentals.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.