Ladies and gentlemen, good day, and welcome to the Earnings Conference Call of Nexus Select Trust for Q2 FY 2024. As a reminder, all participant lines will be in the listen-only mode. There will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Pratik Dantara, Head, Investor Relations and Strategy from Nexus Select Trust. Thank you, and over to you, Mr. Dantara.
Good evening, everyone, and thank you for joining this second quarter financial year 2024 earnings call of Nexus Select Trust. At this point, we would like to highlight that the management may make certain statements that may constitute forward-looking statements. Please be advised that our actual results may differ from these statements. Nexus Select Trust does not guarantee these statements or results and is not obliged to update them at any time. Specifically, any financial guidance and pro forma information that we will provide on this call are management estimates based on certain assumptions and have not been subject to any audit, review, or examination procedure. You are cautioned not to place undue reliance on such information, and there can be no assurance that we will be able to achieve the same.
Joining me today are Dalip Sehgal, Executive Director and CEO. Our CFO, Mr. Rajesh Deo. Our COO, Jayen Naik. Our Chief Leasing Officer, Mr. Nirzar Jain. We will start off with brief remarks on our business and financial performance, and then open the floor for questions. Over to you, Dalip.
Thank you, Pratik. Good evening, everyone, and thank you for joining us. It's my pleasure to welcome you to the earnings update call for Q2 FY 2024 for Nexus Select Trust, India's first retail REIT. We continue to strengthen our leadership with great execution and strong performance across all our 17 malls located in 14 cities. I want to spend a couple of minutes on the macro before we get into the quarter's performance. As you know, India's organized retail growth is in its nascent stages with a long runway for growth on the back of a young population, growing middle class, and rapid pace of urbanization. To tap this growth, India remains on top of the radar of international brands with a total of 24 new international brands that have entered India since 2021.
Some of these are UNIQLO, H&M Home, Apple flagship stores that opened in Mumbai and Delhi, Popeyes, Tim Hortons, Pret A Manger, and Paul. Lots of new brands that have come in across many cities. Coming to the Q2 performance of the Nexus Select Trust, I am happy to report that we have witnessed very strong sales growth of 18% in this quarter. Stable occupancy of 97%, and a 24% re-leasing spread on 150,000 sq ft of re-leased area. Our share price since listing in May has appreciated 27%. The NAV of our portfolio, as per independent valuers, has also increased by 8% to INR 138 per unit. Nexus has been included in key global indices like the MSCI India Domestic Small Cap, FTSE EPRA, and the National Association of REITs.
In line with our strategy of inorganic growth, we have executed a non-binding term sheet to acquire three high-quality malls in Southern India, totaling up to 1 million sq ft. These proposed acquisitions are subject, of course, to completion of ongoing due diligence, negotiations, execution of definitive agreements, and statutory approvals. We look to close this acquisition by early next calendar year. Let me take you through our performance in the quarter, which is in line with our projections, as mentioned in the IPO Offer Document. I will also touch upon our maiden distribution. Number one, we closed the second quarter with retail sales growth, the sales of INR 29.6 billion, which like I said earlier, is an 18% growth over last year. We added INR 4,511 million in terms of tenant sales is INR 450 crore.
Just to put it in the context, this is equivalent to one quarter of tenant sales at Select Citywalk or Elante. Basically, we have added one Elante or one Select City sales in a quarter. That is really what is the delta that we have achieved in terms of tenant sales. In terms of categories that have done well, entertainment, jewelry, electronics, beauty, personal care, all of them have done much better than the average growth of consumption. In Q2, footfalls have grown at 14%. This is important because whole of last year, FY 2023, while sales growth were very good, 22%, 23%, footfall growth had not happened. Now we are seeing for the first two quarters, 12% and 14% growth in footfall. That is a very good sign that people are now coming back in larger numbers.
In our key markets, our tenant sales growth have been significantly ahead of the market. To just give you a few examples, in Mumbai, Bangalore, Chennai, and Pune, which are some of the key markets where we have comparable data, we have witnessed very strong double-digit growth versus the market, which is growing in mid to high single digits. At a consolidated level, our NOI stood at INR 3.9 billion, reflecting a 17% YoY NOI growth, which is clearly on track in terms of our projections as per the IPO Offer Document. 4, we are pleased to announce our first distribution of INR 4.521 billion, translating to INR 2.98 per unit. That is INR 2.98 per unit. That is our first distribution. As per the REIT regulations, as you are aware, we have to distribute 90% of our cash flows. However, we are distributing 100% of the cash flows.
The period for which we are distributing this, please note, is from May 19, 2023, which is when the REIT got listed, to September 30, 2023, which is the end of quarter two. That is the period for which the first distribution is being made. Let me now take you through some of the reasons for our strong performance. I think the first one, of course, is a strong retailer relationship. Over the last seven years, we have built very deep relationships with close to 1,000 domestic and international brands through our key account management system. We opened 84 new stores across our malls in this quarter with brands like Pret A Manger, Ethos, Decathlon, Hugo Boss, et cetera, to name a few. We constantly assess and work towards improving our retailer experience and take various measures to align them with our business goals.
We conduct periodic retailer satisfaction surveys, this is an important one, to build stronger and more productive relationships with our partners, and have consistently scored more than 90%. In fact, in this quarter, the retailer satisfaction index, RSI, which we measure at the end of September, was upwards of 95%, which is significantly higher than even September last year. That is a very positive news for us. Number two, our strategy of leasing, repurposing, and rezoning. We spoke about this at the time of our listing as well. First, with strong demand from tenants, our leasing occupancy now stands at 97%, with 120 bps higher than last year. Today, most of our malls have a healthy wait list of brands looking for space.
We ensure timely opening of new stores and our trading occupancy, which is the stores which are now trading, is up 380 basis points and stands at 95%. So 95% of our area is now operational and rent-yielding. We have leased 200,000 sq ft during the quarter across 214 deals, out of which 1 lakh 50,000 was on account of re-leasing. Our re-leasing spread stood at 24%. If you will recall, at the time of the IPO, we had said that about 10% of our leases come up for renewal every year, and the spread that we have got over the last five, six years is around 20%, and we hope to see that in the future as well. So we have achieved 24%, which is, in fact, ahead of what we had indicated.
We have a stable lease expiry profile with about 0.7 million over the next 2.5 years with 20% re-leasing spread, which is what we spoke about earlier. The next bit is about now having achieved a stabilized occupancy at 97%. There is not too much new leasing that will happen in terms of increasing from 97% to 99%. That is typically not something that happens. Maybe it may go up to 98%. But what is important now is that with the kind of understanding we have of the demographic shopping behavior, we are actually looking to premiumize the brand mix of our malls. We are taking back area from underperforming stores, replacing them with growing categories like beauty. Beauty is growing very well. Personal care, electronics, athleisure, fitness, F&B, and entertainment. Some of these categories have grown very significantly.
In one of our Bangalore malls, just to give you an example, we repurposed a very large anchor area, we introduced categories like athleisure and kids entertainment, and this is contributing to not just higher footfalls, but also higher tenant sales and re-leasing spreads. We have also rezoned some of our stores, which enables us to achieve better spreads in our rentals. One such example would be our mall in Chennai, where an entire sports and women's zone has been rezoned in line with the anchor offering on the floor. All this has given us 28% higher rentals in that same area. Three, our marketing and activation strategy. Our size and scale, now that we have a pan-India presence, in fact, the only mall business that has a pan-India presence now. We have been able to sign Bollywood ambassadors, stars, superstars like Amitabh Bachchan as a Happyness Ambassador.
We have focused on category promotions like the Gloss box, Techbox, Denim Fest, et cetera. As a result of this, across the portfolio, we are seeing, like I said, a 14% increase in footfalls compared with last year. The other thing that is important to note is that technology is becoming very important in our business. We successfully tested what we call the Nexus One app for consumers at Nexus Elante, Chandigarh, and after a successful run, we have now started extending the app to five more malls, and we are targeting to extend the app to 10 malls by March of 2024. This will not only give us very rich consumer data, but will also help consumers in terms of both figuring out where the stores are, locations, et cetera, and we will also have a very strong loyalty program on this.
Technology, as we go forward, will be the backbone of our growth. Coming to part two of my speech, this is about the business model. As you are aware, our business model is very unique. We acquire assets that have been under-invested and/or under-managed. With our capabilities to invest in upgrading the assets, bringing in relevant brands, investing in appropriate marketing, reducing costs, we are able to significantly enhance the value of the acquired assets, as you would have seen in this quarter and in the first half of the year. I will give you just one example. Mangalore, a mall in Mangalore, which we acquired in the midst of COVID, was only 72% occupied when we acquired it. We have added 43 new brands to the mall, and today the occupancy is 87%, and the way it is going, I think we will very soon cross the 90% mark.
NOI has grown at a CAGR of 47% over the last three years. Not only has occupancy gone up, but the NOI also has grown at a CAGR of 47%. We have done this by improving the brand mix and leverage our tenant relationships to bring in marquee brands like H&M, Timezone, Forest Essentials, KFC, Domino's, and Starbucks to a market like Mangalore. In fact, in our South India portfolio comprising of eight malls that were acquired in March of 2021, occupancy has gone up from 88% at the time of acquisition to 95.4% currently, and their NOI is on track to grow by 18% in FY 2024. Tenant sales have grown at 19% YoY in Q2 FY 2024 in the South portfolio. So NOI growth of 18% in the South portfolio and 19% growth in terms of sale in the same eight malls.
Now coming to our balance sheet. We have a robust balance sheet, as you are aware, armed with a war chest of close to $1 billion for acquisitions on the back of a low LTV of 14%. Our in-place debt cost is 8.3% with dual AAA stable credit rating. We have a war chest of $1 billion for acquisitions, which is at the heart of our business model. ESG continues to be an area of prime focus. I take great pride in sharing that our GRESB score now stands at 86 out of 100. It is 10 points higher than what it was last year. Very proud of this achievement. We have commenced construction of a 3.3 MW wind power plant, which will meet 60% energy demand of a mall in Chennai. Not only would it lead to using green energy, the project would also yield 20% return on our investment.
I am also delighted to inform you about the launch, that some of you may be aware of the Indian REITs Association in September 2023, of which we are one of the founding members. The association has started working on key agenda items such as educating investors, improving liquidity of the REITs, and collaborating with regulators on enhancing the REIT governance and investor protection norms. We are confident that together with the IRA, we will continue to build understanding and awareness of the REIT product in India. Lastly, to summarize and conclude. One, we are witnessing very strong consumption demand across categories, as you saw, 18% growth. Leasing demand for our retail assets remains robust, both from international and domestic tenants. At 97%, we are now almost fully leased.
We will be making our maiden distribution of close to INR 3 per unit, and we remain on track to deliver full-year projections, which we had made at the time of the IPO. Our strategy for inorganic portfolio growth is active with healthy acquisition pipeline, and we are close to, as I had mentioned earlier, to close our first acquisition. I thank you all for your continued support and belief in our path of growth and value creation. Thank you so much. With this, we will now move to the Q&A. Please go ahead. I think I will be taking the questions from [audio distortion]
Robin, can we move to the Q&A, please? Can you hear us?
Yes. Ladies and gentlemen, we will begin the question and answer session. Anyone who wishes to ask a question may press star and one on your touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Mohit Agarwal from IIFL Securities. Please go ahead.
Yeah, thanks, and great to see another strong quarter. So congratulations to your team. My first question is, for first and second quarter, we've seen 18% growth in consumption. We understand Q3 is a big quarter. Could you give some color on how October and November so far has been in terms of consumption?
Okay, I think fair question. Must remember, Mohit, that unlike last year, where in October we had both Dussehra and Diwali, this year in October, we've only had Dussehra, and Diwali actually and the start of the wedding season is in November. So we are looking at actually October and November as one period rather than two separate months because you know how consumption peaks during Diwali and the festival season. Will it be in line with the first half? We are hoping to see that. November started off very strongly. So yes, fingers crossed. I think we should see strong growth in this quarter as well.
Okay. Understood. So expecting similar for the second half also, right?
Similar?
For the entire second half. Similar growth for the entire second half also.
Second half, I do not know. I am just saying that for quarter three.
Okay.
You asked what is it looking like currently. I think it is looking like a strong growth in the quarter. Quarter four, honestly, we will have to wait and see how we end quarter three, and then probably we can take a better call on what quarter four will look like. But we are on course to meet our projections for the year. Whatever was the projection in the Offer Document, in the IPO, those projections we will meet for sure. Right now, as you know, we are ahead of the projection.
Understood. My second question is on the acquisition pipeline. You mentioned about three malls.
Yes.
If you could share any information around the size. You have mentioned 1 million sq ft.
Yes.
Any information that you can share, that will be helpful. Also trying to understand that three malls, 1 million sq f t. What is the kind of size you are looking to target? Typically, what we were given to understand is that larger malls around 1 million sq ft are the ones which have a mix of multiplexes and F&B and fashion, everything. Just trying to understand the thought process around that, what kind of trading densities or what kind of category mix are you targeting across these three mall acquisitions here?
Let me hand this over to Pratik.
Yeah. Hi, Mohit, Pratik here. I think, Mohit, on the acquisitions piece, we will not be able to share too many details at this stage. The only thing we'd like to call out is that the acquisition is in line with our past transactions wherein we've acquired malls that are not optimally leased and turned them around successfully. We are okay underwriting the leasing risk, which we've done successfully in the past, and we anticipate to do this year as well. I think, on the acquisitions, like I said, it's still at a non-binding stage. Diligence is ongoing. We'll have approvals, et cetera, that need to be taken up before we can actually come back with something concrete around this. But we anticipate something around this to be given out early next calendar year.
I think one thing that we can obviously say is that a lot of these acquisitions that we'll do will be accretive on a stabilized basis. That's something that we are aware of and we are looking at minutely and we are actually evaluating that.
Mohit, just to add to what Pratik has said, I think the point that you make is absolutely valid. We did mention and we still believe in the fact that there is a certain size and scale of what we should acquire. Equally, if you remember, part of our acquisition strategy is also to see where we can add value. Typically, we look at assets not just for size and scale, but also our ability to be able to ramp up both leasing and add to the NOI or the profits of that business. That can happen only if the asset has been under-invested or assets have been under-invested or not so well-managed. We look at both. You are absolutely right. We looked at size and scale, but we also look at the opportunity for adding substantial value to whatever we are acquiring.
I am assuming this would be all fully leased out malls. There would be no strata sales or would you be open to looking at those malls also and then you would have to kind of-
We may look at it, yeah.
What is the plan here?
So there's a difference, Mohit. One is it fully leased or is it sold? These are two different things. Strata sold-
No. Sorry, I meant to say that if there is strata sale within the mall, even if it may not be fully-
No, we won't look at it because that is clearly not something that we would look at.
Okay. And one last question. If you could share what kind of consumption numbers has Select City done? You've given the consumption numbers. If you could share growth for second quarter and first half.
For consumption, 18% for us.
Just for the Select CityWalk mall.
Select, I think, has grown at 30%.
Upwards of 30%.
30%+ .
30%+ for the quarter?
For the first half as well, yeah.
Okay. That is all from my side. Thanks a lot, and wish you all a very happy Diwali.
Thank you, Mohit. To you too. Thanks.
Thank you. The next question is from the line of Murtuza Arsiwalla from Kotak. Please go ahead.
Yeah. Hi, sir. There is a media article which talks about the ruling about if electricity is being provided as a service and it is being clubbed with the rental, even the electricity charges would have a high GST rate of 18% applicable. Can you just clarify as to how the billing is done for the electricity and the maintenance services, and whether this would have any impact?
Sure. I will pass this on to Rajesh to take this question.
Yeah. Just to clarify, our house malls, we do the electricity reimbursement along with GST, so we recover and deposit, so there is no exposure whatsoever from any angle. For the north malls, which are our first set of malls, we have always maintained a stand that electricity is outside the ambit of GST. Hence, any enactment or circular on GST will not impact. Point number two there is, you can also go on the principal-agent relationship with the current circular mentioned. If you can demonstrate a pure agent-principal relationship, you can still be kind of exempted from GST on pure reimbursement, which is electricity.
So can't we have the same applicable in the south malls and therefore, the tenants would have that additional benefit?
Sorry, can you come again?
I am saying the same rule which is applicable for the malls in north, can't we have that applied in south as well, where you lower the GST incidence for the tenants?
No. What happens is for the south malls, because we have bought it from Prestige, and both these positions have been accepted in the court of laws, we really don't want to change our stance in south, and because our safer position is always to recover and deposit the GST with the government. So we maintain status quo on both the set of malls till a clear guidance comes from the government.
And also, Mr. Murtuza, the fact is that it is a pass-through for most of the tenants in any case. So even where GST is being charged, it is something that is passed through. So they get a GST credit.
GST credit. Sure. Okay. So it should not be a bother. Thank you.
Thank you.
Thanks.
Thank you. The next question is from the line of Sarvesh Gupta from Maximal Capital. Please go ahead.
Good evening, sir, and congratulations on a good set of numbers. Sir, on the distribution per unit, it is tracking around INR 8 currently, of which I think 70% is tax-free as of now. Going forward, given how we have structured everything, what would be the guidance for the next year, and on the overall distribution as well as the tax-free component of that?
Hey. Hi, Sarvesh. Pratik here. Sarvesh, I think we would refrain from giving guidances at this point in time, but what we've projected in our Offer Document, we have the outlook to achieve that from a NDCF perspective. The salience is going to be about, in that same risk code, 55%-60% would remain dividends, about 30%-35% would be interest, and the balance would be the amortization asset.
Understood. But if you can give us some understanding about when we talk about a very strong growth of, let's say, 18%, how does that sort of fall into our distribution per unit? One thing that I can think about is that in case you're acquiring something, then maybe you will overspend in the initial years. But say that acquisition, ideally, most of it should increase the distribution significantly. Is that the right way to think about it?
There is correlation between. So like our leasing structure, there is correlation between consumption growth and revenue share. As we cross certain thresholds, we get higher revenue share, which then results, obviously, close down and results in higher distributions. So consumption growth is an important metric that we track, which results in better NOIs for us, which therefore results in better NDCF.
Any acquisitions, like Pratik has said earlier, I think we do look at the fact that they have to be accretive, so it should actually help the NDCF.
What percentage of your rentals that you are deriving as of now?
Between 12% and 13%.
Sorry?
Between 12% and 13%.
Revenue share, no?
Yeah. Revenue share is 12% and 13% of the rentals that you are getting.
Absolutely.
Remaining is sort of a fixed sort of a rental.
Fixed rental. Correct.
Going forward, also similar sort of a ratio is being planned, or you are looking at it differently?
No, I think 15% is optimum. Anything between 12%-15%, I think is where it rests. I do not think because it also then becomes a bit of a risk if you have too much variable.
Understood. Finally, on the pipeline, I understand this issue of you looking for underperforming malls and maybe basically trying to turn it around.
Yeah.
But I guess if you also take into account some of these malls might be underperforming because of just bad locations. If you take it out, then they may not be sizable in terms of they might be very small malls also, which in general don't perform well. If you take out these two buckets, then you will have a very limited sort of growth opportunity in terms of these already being there pipeline. Then the other opportunity is to build it out, greenfield sort of a thing. How do you look at these brownfield and greenfield opportunities? Because prima facie it looks like brownfield opportunities will be very few for you guys in the next, let's say, five to seven years, and then you might have to just get into greenfield for growth.
Sarvesh, what I would say is that if the asset location doesn't make sense, that it's not infill or prime location for us, we would obviously evaluate it. Does that reduce or kind of minimize the funnel of assets that we have? The answer to that is no. There are about 100 Grade A malls in the country which are in prime infill locations. The top four or five developers own about 40, 45 of them. There's a balance 50/55 mall assets that we actually keep evaluating. So there is a healthy pipeline. Obviously, to answer your question, if it doesn't make sense from a location perspective, we wouldn't even evaluate it. Coming to the second question on greenfield, et cetera. I think we are not averse to doing greenfield projects.
At least if it kind of makes financial sense, we would definitely do it if it's in a prime infill location for us. Our strength is on the acquisition side, and that is what we are currently ramping down in terms of playing things. We've created this whole 10 million sq ft platform through acquisition. I think the machinery is pretty well oiled from our side.
Understood, sir. All the best for the coming quarters.
Thank you.
Thank you. The next question is from the line of Adhidev Chattopadhyay from ICICI Securities. Please go ahead.
Yeah. Good evening, everyone. Thanks for the opportunity. The first question is on the NDCF walk down, just a clarification on the working capital adjustment. So this figure going forward, what is the nature of this adjustment in terms of what are the items? Going forward for the second half of the year, is this run rate going to sustain or it may be higher or lower, either way on the working capital side? That's the first question. Hello. Am I audible?
Sir, you are audible. Please go ahead.
Yeah. Should I continue or wait for management, sir?
Members of the management, please confirm if you have got the question.
Yes.
Sir, you are not audible at the moment. Sir, there seems to be a problem with the line, with the connection. We are not able to hear you.
Is it better now?
Yes, we can hear you now, sir.
Okay. Adhidev, I have heard your question.
Yeah.
Okay. So I think, Adhidev, this is mainly on account of the mid-month listing that happened on May 19. I think the NDCF for the month of May was in a way impacted on account of this mid-month listing, and I will try and explain it through an example, is about 95% of our collections actually happen in the first 10 days. See that for the period 19th to 30th May is also collected in advance and in the cash.
Sir, I am very sorry to interrupt, but the line for you has gone bad again. We are not able to hear you clearly. Members of the management, we are not able to hear you.
Is this okay?
Yes, sir. Please go ahead.
Okay. Adhidev, what was the last thing that you heard?
Yeah. You were explaining that it is a mid-month listing. Some collections come in the first half of the month or something. I think you were-
Collections come into the first half of the month, which means that revenue for the period 19th to 30th May was also collected in advance. That is something that is released as part of this working capital adjustment. At the same time, there is interest payout, right? Interest is typically payable at the end of the month. Accordingly, interest for the period 1st to 19th of May also got paid post-listing. This anomaly is there and it was envisaged at the time of preparing our projections. I think we have just released this to be in line with what we had projected at that point of time.
Okay. Going forward, this number should trend lower in terms of the thing. Is that understanding correct?
Yes.
Because of this. Okay. Second question I had. You have done the 18% consumption growth, and you mentioned that footfall growth has been 14%. Are we to understand correctly that 4% has been sort of inflation which we have seen? Is there any other way to read this number on consumption?
Look, the way to look at it is that there is a footfall growth and there is a growth in spend per footfall, SPF as we call it. There may not be a direct correlation, 14 + 4 is 18, but it is a combination of footfall increase and SPF, spend per footfall increase. I mean, you could take 15 and five or you could take some ratio of 18. All of it may not be uniform. Some of it could be, for example, footfalls related to cinema, where the spend level may be a little lower at times. That is also possible. But our understanding roughly is that out of 18, we would say that about 6%-8% would be the increase in spend per footfall.
Okay. Per footfall and adjusted a bit. Okay, sir. That is on my side. Thanks. Thank you and all the best.
Thank you so much. Thanks. Hope you heard.
All is well. Yes.
Thank you. Ladies and gentlemen, if you wish to ask a question, you may please press star and one. The next question is from the line of Satinder Singh Bedi from EON Infotech Limited. Please go ahead.
Yes. Thanks for the opportunity. A couple of questions. There has been a slight increase in the valuations. Just wanted to understand, is it on account of higher revenue projections or is there any change in the cap rate or the discount rates?
The IPO document remains the same, whether it is sales growth [audio distortion] This increase basically rolling over from-
Hey, Satinder, sorry we got disconnected. The line seems to be really bad. I will let Rajesh answer the question.
Sorry, Satinder. Again, I repeat. Like you said, all our basic assumption which was there in the IPO document remains the same, which is your WACC, exit cap rate, sales growth assumption, and the market rent assumption. What has taken up is the strong performance and the rollover to 11th year, which is around INR 750 crore. There was some CapEx commitment which has got done, so there is no future commitments. That is about INR 33 crore. And about the balance is on account of incremental margin from the other streams, which is like CAM, marketing, parking, and others. So that is a valuation increase of about INR 858 crore. Hope that answers your question.
Yeah. That does. Okay. What are the key risks that the management sees so far as, let's say, our most prime asset, which is the Select CityWalk is concerned? What are the key risks that you see, [audio distortion], if any?
As of now, the only risk, and that's a macro risk, is what happens to demand over a period of time. I think right now demand is very robust and like you said earlier, Select is one of our best performing assets with more than 30% growth in terms of sales. The Apple store there is doing extremely well. New stores like adidas and Nike and all are doing very well. New F&B has got added. Overall, I think Select is in a very strong position from where we see it at a macro level. Nothing to do with Select. At a macro level, I think the risk, like in any other consumption business, could be some slowdown that could happen in the year ahead. It's possible. Not that there are any signs of it as of now.
Okay. Right. You've had a robust footfall growth of 14%, which significantly contributes to the strong top-line growth that we've seen. This 14% might moderate going forward because this might be as a result of coming out of COVID. How do you see the spends kind of panning out going forward? A low double digits seems to be par for the course?
First of all, I don't think we would speculate on future growth. All that I can say is that our first half performance is in line or in fact a little ahead of the projections, and we are pretty confident that all that we have projected for FY 2024, we are on course to meet it. That's all that I would say. I would not put a specific number on footfall increase. But as of today, from whatever we can see, I think the fact that people are coming out in larger numbers and with good set of movies coming in November, Diwali season, et cetera, I think footfall growth will still be robust.
Right, sir. One final question, sir. Regarding Elante office. Elante office seems to be sub-scale. While we understand it is part of the same complex and to that extent, it can get justified. But any plans of monetizing this or you would continue? Because it seems to be 0.1 million seems to be sub-scale occupancy-
Yes. Yeah.
not really top-class. So what are the plans on that?
Office, like we said earlier, it is not our core business. Our business is retail. 90% of our business today is retail, and Elante office would account for a couple of percentage points. So it is neither here nor there, not really of any great importance. Like you rightly said, it came as part of a much larger acquisition, which was the hotel and the mall, Nexus Elante Mall, and this came as part of that. Yeah.
Okay. Thank you. Okay. Yeah, thank you and congratulations. I think great set of results.
Thank you so much. Thanks.
Thank you. Participants who wish to ask questions may please press star and one. Ladies and gentlemen, we have no further questions. On behalf of Nexus Select Trust, that concludes this conference. Thank you for joining us. You may now disconnect your lines.