At a Glance
Nexus Select Trust (NST) – India’s first listed retail REIT – just flexed with 11% tenant sales growth, 12% NOI jump, and a ₹3,378M distribution (₹2.23/unit). With 5.65% yield and a portfolio of malls that mint cash every weekend, this Blackstone-backed entity screams “shopping is serious business”.
Introduction
Imagine owning a slice of India’s busiest malls without managing parking chaos. That’s Nexus Select Trust. Sponsored by Blackstone, it owns premium consumption centers across metros. While the stock sulks at ₹148, it keeps paying investors to stay loyal – like a clingy yet rewarding ex.
Business Model (WTF Do They Even Do?)
- Assets: 17 retail consumption centers (India’s swankiest malls).
- Revenue Streams: Rentals, lease escalations, revenue share from retailers, and some side hustle from office & hotel assets.
- Why it works: Retail footfall + high occupancy (>90%) + rent escalations.
- Roast: They literally profit from your Zara shopping addiction.
Financials Overview
Q1 FY26
- Revenue: ₹614 Cr (+6% YoY)
- NOI: +12%
- Net Profit: ₹120 Cr
- EPS: ₹0.79
- Distribution: ₹2.23/unit
FY25 Recap
- Revenue: ₹2,283 Cr
- PAT: ₹483 Cr
- ROE: 2.9%
- Dividend Payout: 199% (REIT life).
Comment: Earnings low, but distributions keep unitholders smiling.
Valuation
- Yield Method
- DPU TTM: ₹9
- Required Yield: 6%
- Value ≈ ₹150
- NAV Method
- NAV/unit: ₹93
- Premium: 1.6x
- Value ≈ ₹150
- P/E Method
- EPS ₹3.05, P/E 50x → ₹150
🎯 Fair Value Range: ₹145 – ₹155
CMP ₹148 → fairly priced.
What’s Cooking – News, Triggers, Drama
- Distribution growth remains steady.
- New acquisitions and tenant mix upgrades coming up.
- Trigger: Rising retail consumption in India.
- Risk: Online shopping boom + higher interest rates.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Assets | 20,520 |
| Liabilities | 1,046 |
| Net Worth | 15,095 |
| Borrowings | 5,336 |
Remark: Heavy assets, REIT-style leverage – nothing unusual.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | – | 1,217 | 1,532 |
| Investing | – | -398 | -965 |
| Financing | – | -780 | -588 |
Remark: Strong ops cash, reinvests in malls, pays fat distributions.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 2.9% |
| ROCE | 5.2% |
| P/E | 48x |
| PAT Margin | 20%+ |
| D/E | 0.35 |
Remark: Low ROE (typical REIT), but cash yield is where the juice is.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1,916 | 2,283 | 2,353 |
| NOI | 1,284 | 1,552 | 1,610 |
| PAT | 599 | 483 | 463 |
Remark: NOI strong, PAT low due to depreciation & interest.
Peer Comparison
| REIT | Revenue (₹ Cr) | PAT (₹ Cr) | Yield % |
|---|---|---|---|
| Embassy REIT | 4,126 | -243 | 0.19% |
| Mindspace REIT | 2,660 | 96 | 7.3% |
| Nexus Select Trust | 2,353 | 463 | 5.65% |
| Brookfield India | 2,386 | 79 | 6.0% |
Remark: Best retail REIT, strong yield.
Miscellaneous – Shareholding, Promoters
- Sponsor (Blackstone affiliate): Majority
- Public float: High, since it’s a REIT
- Institutional: Mutual funds & pension funds love it.
Observation: Institutional darling, retail investors tag along.
EduInvesting Verdict™
Nexus Select Trust is a cash-yield play, not a growth rocket. It’s the first retail REIT, backed by Blackstone, with malls that thrive on India’s rising consumption. However, PAT is low, and high P/E may scare value hunters.
SWOT Quickie
- Strengths: Strong sponsor, premium malls, steady distributions.
- Weaknesses: Low ROE, high depreciation hit.
- Opportunities: Expanding retail market, acquisitions.
- Threats: E-commerce, interest rate hikes.
Final Word: For yield-seekers, NST is the mall that keeps giving. For growth hunters, maybe shop elsewhere.
Written by EduInvesting Team | 30 July 2025
SEO Tags: Nexus Select Trust Q1 FY26 Results, REIT Analysis India, Nexus Select Dividend Yield
