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Nexus Select Trust reported a 56.16% decline in net-profit for Q2-FY25, with profit-after-tax at INR 1,102.36 million compared to INR 2,514.62 million in the same quarter last year. Net-operating-income reached INR 3,713 million, a 5% year-on-year increase, while total-income rose 3.48% to INR 5,762.79 million. Distributions of INR 3,040.61 million (INR 2.007/ unit) were declared. CEO Dalip Sehgal highlighted resilient-performance, with 18% consumption-growth in October-2024 and expected acquisitions of 1.3 million sq ft in H2-FY25. Debt-cost decreased by 10 bps, with NAV at INR 147.04 per-unit.
Nexus Select Trust reported a significant decline in its net profit for the second quarter of FY25, ending September 30, 2024. The company's net consolidated profit decreased by 56.16% year-over-year, dropping to INR 1,102.36 million from INR 2,514.62 million recorded in the same quarter last year. Despite this decline in profit, Nexus Select Trust's net consolidated total income showed growth, reaching INR 5,762.79 million in Q2 FY25, up 3.48% from INR 5,569.14 million in the corresponding quarter of FY24. Advertisement
In terms of operational performance, the company's net operating income stood at INR 3,713 million, reflecting a 5% year-over-year increase. Tenant sales reached INR 3,000 crore, and the cost of debt was recorded at 8% during the quarter. Nexus also made strides in leasing, re-leasing 0.19 million square feet at a spread of 20%, while leased occupancy saw a 40-basis-point year-over-year increase.
The company's board declared a distribution of INR 3,040.61 million (equivalent to INR 2.007 per unit) for Q2 FY25. This distribution was broken down as follows: INR 860.52 million (INR 0.568 per unit) as interest, INR 1,718.01 million (INR 1.134 per unit) as dividends, INR 10.61 million (INR 0.007 per unit) as other income, and INR 451.47 million (INR 0.298 per unit) as repayment of SPV-level debt. The board also reported a net asset value (NAV) of INR 147.04 per unit as of September 30, 2024.
Dalip Sehgal, Executive Director and CEO of Nexus Select Trust, commented on the quarter's performance, highlighting a 'resilient financial performance' in a challenging consumption environment. He noted that the trust's retail net operating income saw a 5% year-over-year increase, indicating steady growth despite market pressures. Sehgal also expressed optimism for the remainder of the fiscal year, noting that October 2024 saw an 18% rise in consumption. This strong start to Q3 FY25 underpins the company's expectation of robust performance in the second half of the fiscal year.
In its ongoing efforts to expand its portfolio, Nexus Select Trust announced plans to acquire additional commercial space, including one million square feet in South India and 0.3 million square feet in North India, by the end of FY25. The company also successfully raised INR 2,500 million at an annual interest rate of 7.6%, reducing its overall debt cost by approximately 10 basis points.
Overall, while Nexus Select Trust faced a notable decline in net profit in Q2 FY25, it managed to grow its income and operating performance modestly. The company's distribution to shareholdeINR aligns with FY25 projections, and management's focus on expansion and debt cost reduction reflects a strategic approach to navigating current market challenges. The trust's positive consumption trends and targeted acquisitions suggest an optimistic outlook for the coming quarters.
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