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

• Market Cap: C$717.12M
• Dividend Yield: 8.3%
• Average Volume (3M): 141.85K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.14
• Revenue Growth: 9.21%
• EPS Growth: -61.37%
• Country: CA
• Employees: 21
• Sector: Real Estate
• Sector Strength: 60
• Industry: REIT - Industrial
• EPS (TTM): 0.35
• Shares Outstanding: 71,127,600
• 10 Day Avg. Volume: 190,077
• 30 Day Avg. Volume: 141,849
• PEG Ratio: -0.74
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 242.44
• 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$8.05
• Price Target Upside: 4.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: C$9.00 ▲(16.73%Upside)

Nexus Industrial REIT's strong financial performance and attractive valuation drive a positive stock score. The company's strategic repositioning to focus on industrial assets supports future growth, despite economic challenges and tenant risks highlighted in the earnings call. Technical indicators signal bullish momentum, although caution is warranted due to near-overbought conditions.

Positive Factors

Balance Sheet

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

Leverage and Payout Ratio

Neutral stance reflects NXR's above-average leverage and payout ratio vs. peers.

Nexus Real Estate Investment Business Overview & Revenue Model

Company Description

Nexus Real Estate Investment Trust (NXR.UN) is a Canadian real estate investment trust focused on acquiring and managing a diversified portfolio of commercial properties. The company primarily invests in industrial, office, and retail sectors across major Canadian markets, aiming to provide stable and growing cash distributions to its unitholders through strategic property acquisitions and active asset management.

How the Company Makes Money

Nexus Real Estate Investment Trust generates revenue primarily through rental income from its portfolio of commercial properties. The trust leases space to a variety of tenants, including businesses in the industrial, office, and retail sectors. Revenue is further supported by property management fees and potential capital appreciation from strategic property acquisitions and disposals. The company benefits from long-term lease agreements, which provide consistent cash flow, and actively manages its properties to enhance value and occupancy rates. Additionally, Nexus may engage in joint ventures or partnerships to expand its investment opportunities and leverage its expertise in real estate management.

Nexus Real Estate Investment Financial Statement Overview

Summary

Nexus Real Estate Investment shows strong financial performance with consistent revenue growth, solid profitability margins, and efficient cash flow management. Despite increased leverage, the company's financial health remains stable, with a focus on maintaining a strong cash position and effective capital allocation.

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
EBITDA	145.87M	201.67M	142.37M	-14.93M	41.62M
Net Income	90.88M	160.03M	91.75M	146.36M	14.84M
Balance Sheet
Total Assets	2.60B	2.46B	1.97B	1.66B	710.50M
Cash, Cash Equivalents and Short-Term Investments	11.53M	5.92M	11.53M	82.28M	13.99M
Total Debt	1.25B	1.19B	827.11M	679.55M	342.72M
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: Neutral
• Last Price: 7.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 7.71 is above the 20-day moving average (MA) of 7.67, above the 50-day MA of 7.40, and above the 200-day MA of 7.28, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 20.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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$717.12M	8.89	7.47%	8.30%	9.21%	-61.37%
MRG.UN	75 Outperform	C$958.41M	8.65	5.83%	4.14%	3.85%	-31.81%
MI.UN	71 Outperform	C$539.27M	6.08	9.03%	3.52%	-0.29%	―
ERE.UN	60 Neutral	C$597.31M	―	-37.33%	24.83%	-7.34%	-966.70%
Sector *	59 Neutral	C$1.25B	-2.56	-8.19%	4.96%	10.84%	-23.78%
AX.UN	57 Neutral	$750.94M	―	-1.80%	7.82%	-13.42%	86.55%

Nexus Real Estate Investment Corporate Events

Nexus Industrial REIT Schedules Q2 Results Release and Declares Distributions

Nexus Industrial REIT announced the release of its second-quarter financial results on August 12, 2025, along with a conference call to discuss the results. The company also declared cash distributions for July and August, maintaining a consistent payout to unitholders, reflecting its stable financial performance and commitment to investor returns.

The most recent analyst rating on ($TSE:NXR.UN) stock is a Hold with a C$7.00 price target. To see the full list of analyst forecasts on Nexus Real Estate Investment stock, see the TSE:NXR.UN Stock Forecast page.

Nexus Industrial REIT Reports Strong Q1 2025 Results Amid Strategic Shift

Nexus Industrial REIT announced a successful first quarter of 2025, highlighted by an 8.6% increase in net operating income driven by strategic acquisitions and developments. The company completed its transition to a pure-play industrial REIT, selling 15 retail and one office property to focus on industrial assets, which now account for over 99% of its NOI. This strategic shift positions Nexus to better withstand economic challenges, with a strong start to 2025 leasing activities and significant ongoing development projects expected to enhance future income. The REIT’s financial performance was bolstered by increased occupancy rates and successful lease renewals, demonstrating the strength of its tenant relationships and portfolio quality.

The most recent analyst rating on ($TSE:NXR.UN) stock is a Buy with a C$8.00 price target. To see the full list of analyst forecasts on Nexus Real Estate Investment stock, see the TSE:NXR.UN Stock Forecast page.