Nexus Select Trust’s retail net operating income climbs to ₹440 crore as fashion, jewellery drive consumption

India’s first listed retail REIT, Nexus Select Trust, reported strong operational and financial performance for the March quarter, helped by a rebound in discretionary consumption across categories such as fashion, jewellery, beauty, and electronics.

The company said tenant sales grew 19% year-on-year in the fourth quarter of FY26, while retail net operating income rose 11% to ₹440 crore. It also announced a distribution payout of ₹346.3 crore, or ₹2.286 per unit, marking its 11th consecutive quarter of 100% payout distribution. 

The REIT achieved its FY26 distribution per unit guidance of ₹9.1, reflecting 9% growth over the previous year, and has now guided for FY27 DPU in the range of ₹9.8-10 per unit, implying another 9% growth. 

Dalip Sehgal, ED & CEO, Nexus Select Trust, said the quarter reflected sustained strength in consumption trends and leasing activity. “We delivered another strong quarter of operational and financial performance, with tenant sales growing by 19% and retail net operating income rising by 11%,” Sehgal said. “With this distribution, we have cumulatively distributed approximately ₹37 billion or ₹24.5 per unit and delivered total return of above 75% to unitholders since listing.” 

The company maintained occupancy at 97% for the 12th consecutive quarter since listing and achieved healthy re-leasing spreads on 0.24 million sq. ft during the quarter. 

Nexus Select is also stepping up expansion as it looks to double its portfolio by 2030. The REIT recently announced the acquisition of the 244,000 sq. ft Diamond Plaza mall in Kolkata, strengthening its presence in East India. The acquisition is expected to close in the first half of FY27. 

Sehgal said the company has built an acquisition pipeline of eight retail assets across India, with two already under due diligence. During the year, the REIT also integrated Vega City and MBD Complex into its portfolio, with both assets posting 15% tenant sales growth and 9% footfall growth in FY26. 

The company additionally acquired around 60,000 sq. ft of retail space in Nexus Elante Complex and signed an agreement with Runwal Enterprises for the development of a 0.7 million sq. ft. Grade-A mall in the Mumbai metropolitan region. 

Nexus Select said it remains well-positioned for inorganic growth, backed by a strong balance sheet, low leverage and nearly $1 billion in debt headroom. The REIT currently has a loan-to-value ratio of 18%, debt cost of 7.3% and a AAA/Stable credit rating. 

Its portfolio currently includes 19 Grade-A urban consumption centres spread across 15 cities, along with hotel and office assets. The malls house around 1,100 domestic and international brands across more than 3,200 stores.