Canada's Nexus Industrial REIT Q4 NOI up on industrial property growth

Overview

• Canada-focused industrial REIT's Q4 2025 NOI rose 2.7% yr/yr, attributable to growth in industrial property and completed developments, despite legacy property sales

• Normalized FFO per unit for Q4 2025 decreased slightly yr/yr

• Company completed transition to pure-play industrial REIT, selling legacy properties

Outlook

• Nexus Industrial REIT anticipates mid-single-digit Same Property NOI growth in 2026

• Company expects normalized AFFO payout ratio to average below 100% in 2026

• Nexus expects C$4.9 mln annual NOI from St. Thomas expansion in 2026

Result Drivers

• ACQUISITIONS - Co acquired two industrial properties in Montreal, contributing positively to NOI

• DEVELOPMENTS - Completed expansion projects in St. Thomas and Calgary expected to add annual stabilized NOI of C$6.6 mln

• LEASING ACTIVITY - Achieved industrial SPNOI growth of 2.6% despite tenant vacancies

Company press release: ID:nGNX2JfkMn

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for Nexus Industrial REIT is C$8.25, about 5.9% above its March 5 closing price of C$7.79

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

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