Nexus Industrial REIT Q1 Earnings Call Highlights

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Sat, May 16, 2026 astatine 11:06 AM CDT 8 min read

Key Points

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Q1 operating show improved, with nett operating income up 5.4% to CAD 33.8 cardinal and normalized AFFO payout ratio falling to 96.6%, the archetypal sub-100% 4th successful 10 quarters. Management said it remains connected way to support the payout ratio beneath 100% for the afloat year.
Leasing enactment helped offset impermanent vacancies, including 41,000 quadrate feet of caller leases signed astatine a 32% mean rent lift. Nexus expects to re-lease vacant abstraction implicit the coming quarters astatine higher marketplace rents, portion maintaining its 2026 outlook for mid-single-digit same-property NOI growth.
The REIT deed 2 financing milestones: an investment-grade BBB low standing from DBRS and its inaugural CAD 500 cardinal enslaved issuance. Management said the bonds should little borrowing costs versus the recognition installation and enactment aboriginal maturation and indebtedness reduction.

Nexus Industrial REIT (TSE:NXR.UN) reported higher first-quarter operating income and said it remains connected way to support its normalized AFFO payout ratio beneath 100% for the afloat year, portion besides highlighting an investment-grade recognition standing and its archetypal enslaved issuance arsenic cardinal milestones.

On the REIT’s first-quarter league call, Chief Executive Officer Kelly Hanczyk said nett operating income roseate to CAD 33.8 million, up CAD 1.7 million, oregon 5.4%, from a twelvemonth earlier. Normalized funds from operations accrued to CAD 17.7 million, and adjusted EBITDA for the past 12 months roseate to CAD 121.3 million.

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Hanczyk said the 4th marked the archetypal clip successful 10 quarters that Nexus posted a payout ratio beneath 100%, with a normalized AFFO payout ratio of 96.6%. Normalized AFFO per portion was CAD 0.162. Net plus worth accrued CAD 0.07 from year-end to CAD 13.29 per unit.

Leasing Activity Offsets Temporary Vacancies

Hanczyk said Nexus completed astir 41,000 quadrate feet of caller leases during the 4th astatine an mean rent assistance of 32% implicit expiring and in-place rents. He said the REIT’s mean dispersed betwixt marketplace and in-place rents was 15.8% arsenic of March 31.

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Occupancy declined to 95% during the quarter, which absorption attributed to 2 unplanned vacancies. Hanczyk said 1 vacancy came from a 62,000-square-foot spot astatine 4590 Portland Boulevard successful Sherbrooke, Quebec, wherever Nexus terminated a tenant aboriginal for non-payment. The termination resulted successful astir CAD 1.2 cardinal of further income, which the REIT expects to cod done a warrant from the tenant’s genitor company.

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