Nexus Select Trust Reports Q2 FY27 Financial Growth and Eyes Tier II and Eastern India Expansion

Nexus Select Trust has reported an 8 percent year-on-year rise in net operating income to ₹504 crore for Q2 FY27, backed by resilient urban consumption. The REIT is now looking at expansion opportunities in Tier II cities and eastern India.

Real Estate Investment Trust (REIT) Nexus Select Trust has outlined plans to expand its footprint into Tier II markets and eastern India. The strategic focus comes as the trust navigates macroeconomic conditions that have impacted rural markets more severely than urban centers.

Pratik Dantara, Chief Investor Relations Officer and Head of Strategy at Nexus Select Trust, noted that urban discretionary consumption has remained resilient despite pressures from a poor monsoon, changing weather patterns, and higher crude prices. According to Dantara, the government's decision not to pass on the full increase in crude prices to consumers helped shield urban spending. Consequently, the trust observed no negative impact on discretionary consumption within its malls during the second quarter or early third quarter.

Financially, Nexus Select Trust reported a 13 percent year-on-year growth in consumption, reaching ₹3,909 crore in Q2 FY27. Net operating income (NOI) grew by 8 percent year-on-year to ₹504 crore, supported by strong leasing momentum and steady consumption. The trust maintained a high occupancy rate of 97 percent during the first half of fiscal year 2027.

Leasing performance remained robust, with the REIT recording re-leasing spreads of 24 percent in Q2 FY27. For the first half of the year, spreads stood at 22 percent. The trust successfully completed renewals for 0.9 million square feet out of the approximately 1.5 million square feet due for renewal over the course of FY27.

In terms of returns to unitholders, the trust declared a distribution of ₹359 crore, translating to ₹2.367 per unit for the quarter. This represents an 8 percent increase compared to the same period previous year and marks the thirteenth consecutive quarter in which the trust has distributed 100 percent of its distributable cash flows to unitholders.

"The steady financial performance of Nexus Select Trust highlights the resilience of urban discretionary spending despite broader macroeconomic headwinds. Maintaining a 97 percent occupancy rate alongside consistent cash flow distributions demonstrates sound operational execution. As REITs mature in the Indian market, looking beyond Tier I cities toward Tier II markets and eastern regions presents a logical avenue for scalable growth, provided demand fundamentals align with real estate supply." — Dr. Shishir Gupta, Founder & CEO, StartupLanes