Canada · Delayed Price · Currency is CAD Nexus Industrial REIT Earnings Call Transcripts
Fiscal Year 2026
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Q2 saw strong year-over-year growth in NOI, FFO, and occupancy, with strategic asset sales and a successful CAD 500M bond issuance supporting deleveraging. Development projects in BC are advancing, targeting data infrastructure opportunities, and guidance for mid-single-digit NOI growth remains unchanged.
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Q1 saw NOI rise 5.4% year-over-year to CAD 33.8 million, with normalized AFFO payout ratio dropping below 100%. Investment-grade rating and a CAD 500 million bond issuance improved funding flexibility, while leasing and asset sales are expected to drive growth for the rest of 2026.
Fiscal Year 2025
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Delivered record NOI and EBITDA in 2025, completed transition to pure-play industrial, and executed major developments and acquisitions. Targeting investment grade by year-end 2026 with strong leasing spreads and robust industrial demand.
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Q3 saw strong leasing, two major industrial developments completed, and a shift to a pure-play industrial REIT. Net income rose sharply year-over-year, while guidance for 2025 NOI growth was slightly revised down due to leasing delays, with no impact expected for 2026.
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Net operating income rose 1.7% year-over-year despite asset sales, driven by strong leasing, rent lifts, and development completions. Maintains mid-single-digit same-property NOI growth guidance for 2025, with robust renewal activity and new projects underway.
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Completed transition to a pure-play industrial REIT, with 97% occupancy and 8.6% NOI growth year-over-year. Asset sales funded new developments and reduced debt, while robust leasing and renewals drove a 30% rent increase on expiring space.
Fiscal Year 2024
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Strategic repositioning to a pure-play industrial REIT drove strong Q4 results, with net income up sharply and nearly 100% industrial NOI. Leasing momentum remains solid, though some markets are slower and two tenants in creditor protection may impact Q2.
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Q3 saw strong NOI growth from acquisitions and developments, with normalized FFO and AFFO up year-over-year. Asset sales are on track to complete the industrial REIT transition and reduce leverage, while market softness in GTA and Montreal is offset by strong demand in Calgary and London.
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Q2 results showed strong NOI and FFO growth, driven by acquisitions, development, and organic rent lifts. Asset sales and development completions are accelerating the shift to a pure-play industrial REIT, with proceeds earmarked for debt reduction and further deleveraging.