Nexus Select Trust , through its manager Nexus Select Mall Management Private Limited, has made a significant move in the debt market by allotting commercial papers worth INR 1,500 million. This financial maneuver, approved by the Borrowings Committee, marks an important development in the trust's short-term funding strategy.

Key Details of the Commercial Paper Issuance

Issuance Context and Implications

This allotment is part of a broader financial strategy previously approved by Nexus Select Trust. The trust had earlier received approval for issuing commercial papers up to an aggregate principal amount of INR 1,000 million and INR 5,000 million. The current issuance falls within this approved limit, indicating a structured approach to short-term borrowing.

The commercial papers have been issued in dematerialized form on a private placement basis, which is a common practice for such short-term debt instruments. This method of issuance allows for easier trading and transfer of securities while potentially attracting institutional investors.

Market Impact and Investor Relations

Coinciding with this new issuance, Nexus Select Trust also redeemed a previous commercial paper worth INR 150 crore on November 10, 2025. This redemption at maturity demonstrates the trust's commitment to meeting its financial obligations promptly.

Furthermore, the trust's management team conducted a physical meeting with an institutional investor on November 7, 2025. While the specifics of the meeting were not disclosed, such engagements are crucial for maintaining investor relations and potentially discussing financial strategies, including debt issuances like the current commercial paper allotment.

The issuance of these commercial papers, coupled with the timely redemption of previous debt and proactive investor engagement, suggests that Nexus Select Trust is actively managing its short-term liquidity needs while maintaining transparency with its stakeholders.

As the commercial papers are proposed to be listed on the BSE Limited's wholesale debt market segment, it may provide liquidity to the instrument and allow for price discovery in the secondary market. This listing could potentially attract a wider range of institutional investors interested in short-term, high-quality debt instruments.

The placement of these commercial papers at a discount rate of 6.18% per annum may indicate investor interest in Nexus Select Trust's short-term debt offerings.

Nexus Select Trust , India's first listed retail REIT, has announced robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Strong Consumption and NOI Growth

The trust reported a 16% year-on-year increase in tenant sales, reaching INR 35.00 billion for Q2 FY26. This growth was driven by strong performance across various categories, including Fashion, Jewellery, Beauty & Personal Care, Electronics, and Entertainment. The like-for-like consumption growth stood at 10% year-on-year.

Retail Net Operating Income (NOI) saw a substantial increase of 14% year-on-year, amounting to INR 4.20 billion. On a like-for-like basis, NOI growth was 8% year-on-year.

Distribution and Occupancy

Nexus Select Trust declared a distribution of INR 3,330.00 million (INR 2.20 per unit) for Q2 FY26, marking a 10% year-on-year increase. This represents the ninth consecutive quarter of 100% distribution payouts since the trust's listing.

The trust maintained a strong occupancy rate of 97% for the tenth consecutive quarter since listing. During Q2 FY26, Nexus Select Trust re-leased 0.23 million sq. ft. at 20% spreads.

Financial Stability

The trust's balance sheet remains robust, with a Loan-to-Value (LTV) ratio of 18%. Nexus Select Trust also maintains a AAA/Stable credit rating, further underscoring its financial strength.

Sustainability Recognition

Nexus Select Trust earned a GRESB 5-Star rating for the second consecutive year, ranking 2nd in Asia among listed retail peers with an overall score of 93. This achievement highlights the trust's commitment to environmental, social, and governance (ESG) practices.

Operational Highlights

The trust reported strong leasing activity, with 0.31 million sq. ft. leased through 217 deals during the quarter. The trading density for Q2 FY26 reached INR 1,742.00 per sq. ft. per month, while the retail portfolio's Weighted Average Lease Expiry (WALE) stood at 4.7 years.

Management Commentary

Dalip Sehgal, Executive Director and Chief Executive Officer of Nexus Select Trust, commented on the results: "We delivered another quarter of strong operational and financial performance, achieving 16% growth in tenant sales and 14% growth in retail net operating income during Q2 FY26. With a robust start to Q3 FY26 — marked by double-digit consumption growth in October 2025 — we expect this momentum to sustain through the second half of the year."

Sehgal also highlighted the trust's distribution performance: "We have cumulatively distributed INR 30.10 billion / INR 19.85 per unit and delivered total returns exceeding 80% to our unitholders since listing."

Acquisition Pipeline

The trust reported a robust pipeline of 10 assets for inorganic growth, with three assets currently under due diligence. Sehgal noted, "Backed by a strong balance sheet, low leverage, and nearly $1 billion of debt headroom, we are well positioned to capitalize on future inorganic growth opportunities."

Board Changes

Nexus Select Trust announced changes to its board composition. Mr. Tuhin Parikh has stepped down as Chairman and Non-Executive Non-Independent Director, effective November 4, 2025. Mr. Asheesh Mohta has been appointed as the new Chairman of the Board, while Mr. Siddharth Nawal from Blackstone has joined as an Additional Director (Non-Executive Non-Independent Director).

In conclusion, Nexus Select Trust's Q2 FY26 results demonstrate strong growth across key metrics, maintaining high occupancy rates, and delivering consistent distributions to unitholders. The trust's focus on sustainability and its robust acquisition pipeline position it well for continued growth in the Indian retail real estate market.