Nexus Real Estate Investment Trust ( (EFRTF) ) has released its Q2 earnings. Here is a breakdown of the information Nexus Real Estate Investment Trust presented to its investors.
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Nexus Industrial REIT is a Canadian real estate investment trust focused on acquiring and managing industrial properties in primary and secondary markets across Canada. The company has recently transitioned to a pure-play industrial REIT, emphasizing its commitment to the industrial real estate sector.
In its second quarter of 2025, Nexus Industrial REIT reported strong operating results, marking its first quarter as a pure-play industrial REIT. The company achieved a 5.6% increase in normalized funds from operations (FFO) per unit and a 2.8% growth in industrial same-property net operating income (SPNOI). The strategic transition involved the sale of 33 legacy retail, office, and non-core industrial properties.
Key financial highlights include the completion of 395,412 square feet of leasing at an average spread of 38% over expiring rents and a net loss of $7.6 million, primarily due to fair value losses on Class B LP units and investment properties. Despite these losses, the company reported a net operating income of $32.2 million, driven by acquisitions of high-quality industrial properties. Additionally, Nexus is advancing construction on two major projects, expected to add $6.6 million in annual stabilized NOI upon completion.
Year-to-date highlights reveal a successful transition to a pure-play industrial REIT, with the sale of legacy properties generating $62.1 million in proceeds. The company also reported a 5.0% increase in NOI and a 4.3% growth in industrial SPNOI. Nexus increased its unsecured credit facilities by $160 million, reflecting its strategic focus on growth and expansion.
Looking ahead, Nexus Industrial REIT is optimistic about delivering long-term growth and value to its unitholders. The company anticipates mid-single-digit SPNOI growth for the full year, driven by leasing vacant spaces at market rates. The completion of significant development projects in St. Thomas, ON, and Calgary, AB, is expected to further bolster its financial performance, reinforcing its position as a leading industrial REIT in Canada.