Nexus Select Trust reports Q2 FY 24 profit decline, focuses on strategic expansion

Nexus Select Trust faced a 27.18% decline in its net consolidated profit for Q2 FY 24, reporting Rs 251.46 crore compared to Rs 345.34 crore in the corresponding quarter of the previous fiscal year. The total income also witnessed a dip of 34.38%, reaching Rs 557.32 crore in Q2 FY 24 from Rs 849.30 crore in the same period last year. Despite the profit decline, the trust declared distributions of Rs 452.07 crore for the quarter ended September 30, 2023. Dalip Sehgal, executive director and CEO of Nexus Select Trust, emphasized the continuation of a strong start in Q1 FY 24, attributing it to robust consumption growth of 18% YoY. Despite the profit decline, the net operating income for Q2 FY 24 demonstrated resilience with a 17% YoY growth, aligning with projections. Sehgal announced the signing of a non-binding term sheet for the acquisition of three high-quality malls in southern India, indicating the trust's strategic expansion amid market challenges. The board of directors of Nexus Select Mall Management, the manager of Nexus Select Trust, declared distributions amounting to Rs 452.07 crore for the quarter ended September 30, 2023. This distribution included Rs 278.38 crore in the form of dividends (Rs 1.84 per unit), Rs 129.04 crore as interest (Rs 0.85 per unit), and Rs 44.65 crore for loan repayment (Rs 0.29 per unit). The net asset value for the trust as of September 30, 2023, was declared at Rs 137.92 per unit. Operating performance indicators for Q2 FY 24 included a 97% leased occupancy in the retail segment and an impressive 18% YoY growth in tenant sales. Retail leased occupancy saw a noteworthy improvement of 120 basis points compared to September 2022. The trust maintained a robust balance sheet, characterized by a low loan-to-value ratio of 14%, a debt cost at 8.3%, AAA rating, and no near-term debt maturity, according to the media release. In conclusion, while Nexus Select Trust faced a decline in net profit and total income for Q2 FY 24, the trust demonstrated resilience through positive operating performance indicators and consistent distributions. The CEO's announcement of plans to acquire three malls in southern India reflects the trust's strategic vision for expansion despite the challenging economic landscape. A strong balance sheet and prudent financial management further position Nexus Select Trust to navigate uncertainties in the market effectively.

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Nexus Select Trust reports Q2 FY 24 profit decline, focuses on strategic expansion

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