1. At a Glance
India’s first listed retail REIT, Nexus Select Trust (NST), is where your shopping bills turn into investor dividends. With a fat 5.6% yield, 68% OPM, and a Blackstone pedigree, this isn’t your average “mall stock”. But is it all branded profits or just window dressing?
2. Introduction with Hook
Imagine walking into a mall where every purchase indirectly pays you. That’s Nexus Select Trust — the shopping centre REIT that has monetised your dosa, Zara splurge, and popcorn refill.
- Market Cap: ₹22,748 Cr
- Dividend Yield: 5.57%
- FY25 Net Profit: ₹483 Cr
- Occupancy: ~95% across portfolio
But behind that sparkling floor polish lies a real estate war with Embassy, Mindspace, and Brookfield. Let’s see if Nexus is just retail therapy or a real investment story.
3. Business Model (WTF Do They Even Do?)
Nexus Select Trust owns and operates high-end retail real estate — a.k.a. malls.
- Portfolio: 17 consumption centres across 14 cities
- GFA: ~9.9 million sq. ft.
- Anchor Brands: H&M, ZARA, Apple Resellers, Starbucks
- Tenants: Over 1,000+ across retail, F&B, entertainment
- Sponsor: Blackstone-backed Wynford Investments
Revenue is primarily from leasing, CAM (common area maintenance), and profit-linked rentals. It’s a “Netflix of footfalls” — monthly recurring cash from leases.
4. Financials Overview
Profit & Loss (Consolidated, ₹ Cr)
| Metric | FY23 (8M) | FY24 | FY25 |
|---|---|---|---|
| Sales | 0 | 1,916 | 2,283 |
| Operating Profit | -3 | 1,284 | 1,552 |
| OPM % | — | 67% | 68% |
| Net Profit | -3 | 599 | 483 |
| EPS (₹) | — | 3.95 | 3.19 |
| Dividend Payout % | — | 178% | 199% |
Key Points:
- OPM at a luxury-like 68%
- Profit dipped in FY25 due to tax normalisation
- Dividend payout exceeds profit. Must be a REIT thing.
5. Valuation
Let’s REIT-ify some logic:
- FY25 EPS: ₹3.19
- P/E: 54.2x → Expensive? Yes, but typical for REITs
- Yield (FY25): 5.57% → Better than FD, eh?
Fair Value Range (EduInvesting Blend):
| Method | Value (₹) |
|---|---|
| Dividend Yield (6% base) | 133 – 145 |
| DCF (8% cost, 4% growth) | 145 – 165 |
| Market Multiple (Median REIT PE ~53x) | 140 – 155 |
FV Range: ₹140 – ₹160
Beyond ₹160? You’re just buying footfalls on hope.
6. What’s Cooking – News, Triggers, Drama
- New Acquisitions: Planning to add new malls via inorganic growth
- Occupancy Rising: Occupancy hitting 95%, strong tenant churn control
- Mall Traffic: Crossed 120 million footfalls in FY25
- Fitch + ICRA + CRISIL: Credit rating updates in July indicate stability
Upcoming Events:
- AGM on July 29, 2025
- E-auctions + asset consolidation in play
7. Balance Sheet
Balance Sheet (₹ Cr)
| Item | Mar 2023 | Mar 2024 | Mar 2025 |
|---|---|---|---|
| Equity Capital | 0.00 | 15,095 | 15,095 |
| Reserves | -3 | -160 | -956 |
| Borrowings | 0 | 4,271 | 5,336 |
| Fixed Assets | 0 | 17,915 | 18,323 |
| Investments | 0 | 1,185 | 1,328 |
| Total Liabilities | 45 | 20,100 | 20,520 |
Key Points:
- Equity heavy structure typical of REIT
- Debt increasing, but manageable with rent escalations
- Networth dipped due to payout excesses
8. Cash Flow – Sab Number Game Hai
Cash Flow Statement (₹ Cr)
| Cash Flow Type | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 0 | 1,217 | 1,532 |
| Investing | 0 | -398 | -965 |
| Financing | 0 | -780 | -588 |
| Net Cash | 0 | +39 | -20 |
Key Points:
- Operating cash = strong and steady
- Investment outflow → asset acquisition
- Financing = dividend outgo + debt repayment
9. Ratios – Sexy or Stressy?
| Metric | FY24 | FY25 |
|---|---|---|
| ROCE | 8% | 5% |
| ROE | 3% | 2.89% |
| Net Debt/Equity | 0.28x | 0.35x |
| Dividend Yield | 5.6% | 5.57% |
| OPM % | 67% | 68% |
Verdict: Not sexy. Not stressy. Just… stable.
10. P&L Breakdown – Show Me the Money
| Quarter | Sales (₹ Cr) | OPM % | Net Profit (₹ Cr) |
|---|---|---|---|
| Q1 FY25 | 558 | 68% | 140 |
| Q2 FY25 | 557 | 68% | 110 |
| Q3 FY25 | 601 | 69% | 119 |
| Q4 FY25 | 587 | 69% | 114 |
Trend: Consistent profitability. Only thing volatile is Zara’s discount shelf.
11. Peer Comparison
| Company | P/E | Yield % | ROCE | FY25 PAT (Cr) |
|---|---|---|---|---|
| Embassy Office REIT | 23.3 | 0.19 | 3.64 | -243 |
| Mindspace REIT | 53.4 | 7.22 | 6.53 | 96 |
| Nexus Select Trust | 54.2 | 5.57 | 5.17 | 483 |
| Brookfield India REIT | 117.9 | 6.19 | 5.38 | 160 |
NST is:
✔ Highest PAT
✔ Mid-pack ROCE
✔ Expensive on P/E
✔ Strong on yield
12. Miscellaneous – Shareholding, Promoters
- Sponsor: Wynford Investments Ltd (Blackstone affiliate)
- Listed: May 2023
- Unitholding (as of Jun 2025):
- Institutional: ~84%
- Public/others: ~16%
- Dividend Payout >100% of profit: because REITs are required to distribute 90%+
13. EduInvesting Verdict™
Nexus Select Trust is the Gucci bag of real estate investing — shiny, steady, and a bit pricey. It doesn’t promise explosive returns, but offers:
- Inflation-beating yield (~5.5%)
- Exposure to India’s rising consumption theme
- Safety net of high-quality assets + Blackstone support
But tread with mall shoes — it’s not a small-cap multibagger. It’s a yield play for the slightly bougie investor.
Metadata
– Written by EduInvesting Team | 21 July 2025
– Tags: Nexus Select Trust, REITs, Blackstone, Dividend Stocks, Real Estate Investing
