Nexus Real Estate Investment (NXR.UN) AI Stock Analysis

• Market Cap: C$633.15M
• Dividend Yield: 10.07%
• Average Volume (3M): 224.61K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.18
• Revenue Growth: 9.64%
• EPS Growth: -45.71%
• Country: CA
• Employees: 19
• Sector: Real Estate
• Sector Strength: 68
• Industry: REIT - Industrial
• EPS (TTM): 0.97
• Shares Outstanding: 71,102,000
• 10 Day Avg. Volume: 185,100
• 30 Day Avg. Volume: 224,611
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.80
• Price to Cash Flow (P/CF): 13.90
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$8.30
• Price Target Upside: 28.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Nexus Industrial REIT demonstrates strong financial performance with consistent revenue growth and a robust dividend yield, making it attractive for income-focused investors. However, technical indicators suggest potential bearish trends, and challenges such as tenant credit risks and market slowdowns present risks. The company’s strategic focus on the industrial sector is a positive long-term catalyst, balancing the risks and supporting a strong overall stock score.

Positive Factors

Balance Sheet Improvement

Dispositions are favourably impacting the balance sheet and portfolio composition.

Development Projects

Lease-up/completion of several development projects is also a source of potential upside.

Negative Factors

Financial Concerns

NXR's above-average leverage and payout ratio compared to peers reflect some financial concerns.

Legacy Properties

Lingering concerns exist with respect to certain legacy properties within the portfolio.

Nexus Real Estate Investment Business Overview & Revenue Model

Company Description

Nexus Real Estate Investment (NXR.UN) is a Canadian real estate investment trust (REIT) that focuses on acquiring, owning, and managing a diversified portfolio of commercial properties. The company operates primarily in the industrial, office, and retail sectors, providing investors with opportunities to gain exposure to the real estate market through its income-generating properties. Nexus REIT aims to deliver stable and growing cash distributions to its unitholders by strategically expanding its property portfolio and optimizing property management.

How the Company Makes Money

Nexus Real Estate Investment makes money primarily through the acquisition, ownership, and management of commercial properties that generate rental income. The company's revenue model is centered around leasing its industrial, office, and retail properties to a variety of tenants, which provides a steady stream of rental income. This income is further enhanced by strategic property acquisitions that increase the portfolio's value and potential rent yields. Additionally, Nexus REIT may engage in property development and repositioning, adding value to its holdings over time. The company's earnings are influenced by factors such as occupancy rates, lease terms, property locations, and market demand. Significant partnerships with property management firms and real estate brokers also contribute to optimizing property performance and maximizing revenue.

Nexus Real Estate Investment Financial Statement Overview

Summary

Nexus Real Estate Investment shows strong financial performance with consistent revenue growth from $60 million in 2019 to $175.7 million in 2024, solid profitability margins, and efficient cash flow management. The company's leverage has increased, indicated by a Debt-to-Equity Ratio of 1.18 in 2024, but remains manageable within industry norms. Fluctuations in net income and ROE suggest potential areas for improved financial stability.

Income Statement

Nexus Real Estate Investment has demonstrated robust revenue growth from 2019 to 2024, with a notable increase in total revenue from $60 million in 2019 to $175.7 million in 2024. The Gross Profit Margin improved significantly from 63.2% in 2019 to 71.6% in 2024. However, the Net Profit Margin fluctuated, peaking in 2021 due to a substantial net income but declining in subsequent years. EBITDA Margin remains strong, reflecting efficient operational performance.

Balance Sheet

The company's Debt-to-Equity Ratio increased from 1.14 in 2019 to 1.18 in 2024, indicating higher leverage but manageable within the industry norms. Return on Equity (ROE) showed volatility, with a high of 21.7% in 2021, reflecting exceptional net income, followed by a decrease in subsequent years. The Equity Ratio declined slightly over the years, suggesting an increase in liabilities relative to total assets.

Cash Flow

Operating Cash Flow remains strong, although it decreased from $51 million in 2023 to $38.96 million in 2024. Free Cash Flow was positive and stable, despite a slight decline from the previous year. The Free Cash Flow to Net Income Ratio was robust, highlighting the company's ability to convert net income into free cash flow effectively.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
175.70M	157.65M	137.12M	83.56M	61.39M
	Gross Profit
125.87M	111.97M	95.81M	55.95M	39.23M
	EBIT
0.00	103.32M	142.28M	-25.88M	41.53M
	EBITDA
145.87M	201.67M	142.37M	-14.93M	41.62M
	Net Income Common Stockholders
90.88M	160.03M	91.75M	146.36M	14.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.53M	5.92M	11.53M	82.28M	13.99M
	Total Assets
2.60B	2.46B	1.97B	1.66B	710.50M
	Total Debt
1.25B	1.19B	827.11M	679.55M	342.72M
	Net Debt
1.24B	1.18B	815.57M	597.27M	328.72M
	Total Liabilities
1.54B	1.46B	1.09B	968.67M	410.92M
	Stockholders Equity
1.06B	1.00B	872.54M	689.48M	299.58M
Cash Flow		Free Cash Flow
24.70M	32.08M	30.32M	19.62M	18.69M
	Operating Cash Flow
38.96M	51.02M	41.53M	25.00M	24.35M
	Investing Cash Flow
-78.60M	-345.99M	-315.73M	-469.25M	-45.07M
	Financing Cash Flow
45.26M	289.36M	203.45M	512.54M	26.84M

Nexus Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.47
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NXR.UN, the sentiment is Negative. The current price of 6.47 is below the 20-day moving average (MA) of 6.87, below the 50-day MA of 7.07, and below the 200-day MA of 7.50, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.95 is Neutral, neither overbought nor oversold. The STOCH value of 20.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:NXR.UN.

Nexus Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXR.UN	77 Outperform	C$633.15M	6.93	8.82%	10.07%	9.64%	-45.71%
SRU.UN	76 Outperform	C$4.20B	18.55	4.50%	7.64%	9.46%	-42.77%
CAR.UN	72 Outperform	C$6.52B	23.12	3.20%	3.80%	4.45%	―
REI.UN	68 Neutral	$4.94B	10.54	6.34%	6.97%	11.62%	1120.60%
HR.UN	63 Neutral	C$2.55B	―	-2.29%	6.37%	-6.92%	-296.31%
Sector *	61 Neutral	$4.26B	15.61	-3.60%	11.29%	6.17%	-21.11%
AP.UN	58 Neutral	C$2.07B	―	-5.79%	12.29%	4.98%	19.54%

Nexus Real Estate Investment Corporate Events

Nexus Industrial REIT Completes Strategic Asset Sale and Reports Leasing Success

Nexus Industrial REIT has announced the sale of its 50% ownership in 15 retail buildings and one office building in Quebec for a total of $51 million. The proceeds will be used to repay debt and fund development projects, marking the company’s transition to a pure-play industrial REIT in Canada. The company has also reported a strong start to its 2025 leasing activities, renewing over 80% of its expiring gross leasable area and securing significant rent increases, which will enhance its net operating income.

Spark’s Take on TSE:NXR.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:NXR.UN is a Outperform.

Nexus Real Estate Investment demonstrates strong financial performance with consistent revenue growth and a robust dividend yield, making it attractive for income-focused investors. However, technical indicators suggest potential bearish trends, and challenges such as tenant credit risks and market slowdowns present risks. The company’s strategic focus on the industrial sector is a positive long-term catalyst, balancing the risks and supporting a strong overall stock score.

To see Spark’s full report on TSE:NXR.UN stock, click here.

Nexus Industrial REIT to Release Q1 2025 Financial Results

Nexus Industrial REIT announced its plan to release the financial results for the first quarter of 2025 on May 15, 2025, before the opening of the TSX. The announcement includes a scheduled conference call to discuss the results and operations, highlighting the company’s ongoing commitment to transparency and stakeholder engagement.

Nexus Industrial REIT Achieves Record Growth in 2024

Nexus Industrial REIT reported a significant growth in net operating income for the fourth quarter and full year 2024, driven by strategic acquisitions and development projects. The company has advanced its transition to a pure-play industrial REIT by selling non-core assets and completing new developments, contributing to a record net income and increased unitholders’ equity, positioning itself strongly in the industrial real estate market.

Nexus Industrial REIT Sells Non-Core Assets to Focus on Industrial Portfolio

Nexus Industrial REIT announced the sale of four non-core industrial buildings in Saskatchewan and two legacy office buildings in Quebec and New Brunswick. This strategic move is aimed at concentrating its portfolio on high-quality industrial properties, which now constitute 96% of its Net Operating Income. The proceeds from the sale will be used to reduce existing debt, further solidifying Nexus’s positioning as a pure-play industrial REIT in Canada.

Nexus Industrial REIT Announces Q4 2024 Results Date and Declares Distributions

Nexus Industrial REIT has announced the release date for its fourth-quarter and year-end 2024 financial results, set for March 10, 2025, with a subsequent conference call to discuss the results. Additionally, the REIT declared cash distributions of $0.05333 per unit for January and February 2025, amounting to $0.64 per unit on an annualized basis, reinforcing its commitment to providing steady returns to its unitholders.