Nexus Select Trust reported a strong start to FY27, with net operating income (NOI) rising 11% year-on-year to ₹510 crore in the quarter ended June 30, 2026. The India-first listed retail REIT declared a distribution of ₹370 crore, equivalent to ₹2.442 per unit, representing a 10% increase year-on-year and a 7% rise quarter-on-quarter. This marks the 12th consecutive quarter of 100% distribution payout to unitholders, who have collectively received over ₹4,080 crore since listing in May 2023, delivering an internal rate of return (IRR) of 25%.

The Board of Directors of Nexus Select Mall Management Private Limited, the Manager to the Trust, approved the results on August 03, 2026. The record date for the Q1 FY27 distribution is set for August 06, 2026, with payments scheduled on or before August 13, 2026. The Trust maintains a AAA/Stable credit rating and an attractive debt cost of 7.2%, which is 30 basis points lower than the previous year.

Operational Highlights

Consumption across the portfolio surged 17% year-on-year to ₹3,850 crore in Q1 FY27, reflecting broad-based growth across all retail categories. This 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 during the quarter. Ticketed attractions saw a significant boost, with sales growing 37% YoY following the introduction of over 65 curated experiences across malls.

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

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.

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 Mall Management Private Limited, acting as the Manager to Nexus Select Trust , declared a total distribution of ₹369.96 crore for the quarter ended June 30, 2026. The Board of Directors approved the unaudited standalone and consolidated financial results on August 03, 2026, signaling strong cash flow generation from its mall assets. 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.

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. 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.

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.