Nexus Select Trust reported an 11% year-on-year rise in net operating income (NOI) to ₹510.05 crore for the quarter ended June 30, 2026 (Q1 FY27), driven by a 17% surge in portfolio consumption to ₹3,850 crore. The India-first listed retail REIT declared a distribution per unit (DPU) of ₹2.442, a 10% increase from the ₹2.230 paid in the corresponding period last year, maintaining its near-100% payout ratio of net distributable cash flows. This performance underscores strong tenant demand and operational resilience, offering unitholders a consistent yield stream supported by accelerating retail sales across its assets.

The Board of Directors of Nexus Select Mall Management Private Limited, the Manager to the Trust, approved the unaudited consolidated financial results on August 03, 2026. The statutory auditors issued an unqualified limited review report on the accounts. The results were prepared in accordance with SEBI (Real Estate Investment Trusts) Regulations, 2014, and Indian Accounting Standard (Ind AS) 34. Newspaper advertisements disclosing these results were published in the Economic Times and Business Standard on August 04, 2026.

Operational and Financial Highlights

Consumption across the trust’s portfolio surged 17% year-on-year to ₹3,850 crore in Q1 FY27, reflecting broad-based demand across retail categories. This top-line momentum translated into higher trading density, which grew 16% YoY to ₹1,931 per square foot per month. Footfall increased by 5% YoY to approximately 36 million visitors. Ticketed attractions saw a significant boost, with sales growing 37% YoY following the introduction of over 65 curated experiences.

The trust’s revenue from operations rose to ₹680.53 crore from ₹613.58 crore in Q1 FY26. Mall rentals contributed ₹596.33 crore to this total, while hospitality segment revenue grew 33% YoY to ₹47.82 crore. Other income stood at ₹22.33 crore. The profit for the quarter was ₹156.52 crore, compared to ₹119.58 crore in the prior year period.

Leasing and Portfolio Strategy

Leasing activity remained robust, with the trust re-leasing 0.4 million square feet at healthy spreads during the quarter. Notably, 0.2 million square feet was re-leased ahead of lease expiries at spreads exceeding 20%, demonstrating strong tenant demand. The portfolio achieved a leasing occupancy of 96% and trading occupancy of 95%. The weighted average lease expiry (WALE) stands at 4.5 years.

New brand additions include first-to-portfolio stores for Lego, Kurt Geiger, and Harajuku Bakehouse, enhancing the premium positioning of the assets. In a strategic move to double its portfolio by 2030, Nexus Select Trust announced the acquisition of Diamond Plaza mall in Kolkata, expected to close in the first half of FY27. The trust has built a pipeline of eight retail assets, with two currently under due diligence.

Financial Position and Distribution Composition

The trust maintains a strong balance sheet with gross debt of ₹6,181 crore and net debt of ₹5,592 crore. The loan-to-value (LTV) ratio stands at 18%, well within regulatory limits. With nearly $1 billion in available debt headroom, the trust is positioned to pursue further inorganic growth opportunities. The interest coverage ratio is 4.4x, and the net debt-to-EBITDA multiple is 2.8x.

The declared DPU of ₹2.442 comprises ₹1.041 per unit in the form of interest, ₹0.861 per unit as dividend, ₹0.003 per unit from other income, and ₹0.537 per unit from amortisation of debt. The aggregate distribution amounts to ₹369.96 crore. The record date for the Q1 FY27 distribution is set for August 06, 2026, with payments scheduled on or before August 13, 2026.

What the Numbers Show

The divergence between consumption growth (17%) and NOI growth (11%) suggests that while top-line tenant sales are accelerating rapidly, operational efficiencies or rental escalations are contributing to income growth at a slightly moderated pace. However, the ability to achieve double-digit re-leasing spreads on proactive churn indicates that future NOI growth may accelerate as new leases come into effect, supporting the sustainability of the high distribution payout ratio.

Nexus Select Trust declared a total distribution of ₹369.96 crore for the quarter ended June 30, 2026, signaling robust cash flow generation from its mall assets. The Board of Directors, acting through Manager Nexus Select Mall Management Private Limited, approved the unaudited standalone and consolidated financial results on August 03, 2026. This payout translates to ₹2.442 per unit, offering immediate returns to investors through a mix of interest, dividends, and capital return via debt repayment. Unitholders registered as of the record date will be eligible for these payouts, with payments scheduled to be made on or before August 13, 2026.

The distribution structure reflects a diversified approach to returning value to unitholders. It comprises ₹157.71 crore (₹1.041 per unit) in the form of interest, less applicable taxes; ₹130.44 crore (₹0.861 per unit) as dividend; ₹0.455 crore (₹0.003 per unit) from other income; and ₹81.35 crore (₹0.537 per unit) as repayment of Special Purpose Vehicle (SPV) level debt. The record date for determining eligibility is Thursday, August 06, 2026.

Distribution Breakdown

The Board noted the Auditor’s Limited Review Report on the financial results during the meeting held on Monday, August 03, 2026. The meeting commenced at 14:33 Hrs IST and concluded at 16:05 Hrs IST. The statutory auditors provided their limited review report, ensuring compliance with regulatory standards for the quarter’s financial disclosures.

Regulatory Compliance and Disclosures

The disclosure was made pursuant to Regulation 51(1) and (2) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 23(5) of the SEBI (Real Estate Investment Trusts) Regulations, 2014. The Trust confirmed there were no material deviations in the use of proceeds from the issue of debt securities, as required by SEBI Circular SEBI/HO/DDHS/DDHS/CIR/P/2018/71 dated April 13, 2018, read with paragraph 4.18 of SEBI Master Circular No. SEBI/HO/DDHS-PoD-2/P/CIR/2025/99 dated July 11, 2025.

Additionally, the Trust submitted a Security Cover Certificate in compliance with SEBI Circular bearing reference no. SEBI/HO/MIRSD/MIRSD_CRADT/CIR/P/2022/6 dated May 19, 2022, under Regulation 54 of the SEBI LODR Regulations, 2015. All relevant documents, including the unaudited financial results and auditor reports, have been uploaded to the Trust’s website at https://www.nexusselecttrust.com/ .

What the Numbers Show

The significant portion of the distribution allocated to SPV debt repayment (₹81.35 crore) indicates a strategic focus on deleveraging specific project-level entities while maintaining high distributable cash flows. By combining regular income streams (interest and dividends) with principal repayment, Nexus Select Trust is balancing yield generation with balance sheet optimization for its underlying assets.