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

• Market Cap: C$770.35M
• Dividend Yield: 8.06%
• Average Volume (3M): 105.92K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.85
• Revenue Growth: 0.41%
• EPS Growth: 78.32%
• Country: CA
• Employees: 21
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.04
• Shares Outstanding: 71,304,000
• 10 Day Avg. Volume: 91,254
• 30 Day Avg. Volume: 105,922
• PEG Ratio: -0.18
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 4.11
• P/FCF Ratio: 29.21
• 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$8.24
• Price Target Upside: 3.82% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.56
• Revenue Forecast (FY): C$176.17M

• Rating: 67 Neutral
• Price Target: C$8.50 ▲(7.05% Upside)

The overall stock score of 67 reflects strong valuation metrics with a low P/E ratio and high dividend yield, which are attractive to investors. However, the company's financial performance is mixed, with high operational efficiency but challenges in revenue growth and profitability. Technical analysis suggests a neutral to slightly bearish trend, which tempers the overall score.

Positive Factors

Operational Efficiency

High operational efficiency, as evidenced by strong gross and EBIT margins, indicates effective cost management and a robust business model, which can sustain profitability over the long term.

Cash Flow Generation

Significant growth in free cash flow demonstrates improved cash generation capabilities, providing the company with more resources for reinvestment and debt reduction, enhancing financial stability.

Gross Profit Margin

A strong gross profit margin reflects efficient cost management and pricing power, which can support sustained profitability and competitive positioning in the market.

Negative Factors

Revenue Growth Challenges

Negative revenue growth suggests potential challenges in expanding market share or increasing sales, which could impact long-term growth prospects and investor confidence.

High Leverage

High leverage can pose financial risks by increasing interest obligations and reducing financial flexibility, potentially impacting the company's ability to invest in growth opportunities.

Profitability Decline

A decline in net profit margin indicates reduced profitability, which may affect the company's ability to generate returns for shareholders and invest in future growth.

Nexus Real Estate Investment Business Overview & Revenue Model

Company Description

Nexus Real Estate Investment (NXR.UN) is a Canadian real estate investment trust (REIT) focused on acquiring, owning, and operating a diversified portfolio of income-producing properties. The company primarily invests in commercial real estate, including office, retail, and industrial properties across key Canadian markets. NXR.UN aims to provide stable and growing income for its unitholders through strategic property acquisitions and effective asset management.

How the Company Makes Money

Nexus Real Estate Investment generates revenue primarily through rental income from its portfolio of commercial properties. The company leases space to tenants, which provides a consistent cash flow stream. Additionally, NXR.UN may benefit from property appreciation over time, allowing for potential capital gains upon the sale of assets. The company might also engage in strategic partnerships with property management firms or other real estate entities to enhance operational efficiency and maximize rental yields. Furthermore, NXR.UN's ability to leverage financing options and optimize its capital structure plays a critical role in its profitability.

Nexus Real Estate Investment Financial Statement Overview

Summary

Nexus Real Estate Investment demonstrates strong operational efficiency with high gross and EBIT margins. However, challenges in revenue growth and profitability are evident, alongside a high leverage position that could pose financial risks. Cash flow generation has improved significantly, but cash conversion efficiency remains an area for improvement.

Income Statement

The income statement shows a strong gross profit margin of 71.79% for TTM, indicating efficient cost management. However, the net profit margin has decreased to 44.92% from the previous year's 51.73%, reflecting reduced profitability. Revenue growth is slightly negative at -1.09% TTM, suggesting a potential challenge in maintaining top-line growth. Despite this, the EBIT margin remains robust at 75.73%, highlighting operational efficiency.

Balance Sheet

The balance sheet reveals a relatively high debt-to-equity ratio of 1.16 TTM, indicating significant leverage, which could pose financial risk. Return on equity has decreased to 7.56% TTM from 8.56% the previous year, suggesting reduced efficiency in generating returns for shareholders. The equity ratio stands at 41.43%, indicating a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a substantial free cash flow growth of 316.48% TTM, indicating improved cash generation capabilities. However, the operating cash flow to net income ratio is low at 0.06, suggesting limited cash conversion efficiency. The free cash flow to net income ratio is also relatively low at 0.13, indicating that a smaller portion of net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	174.74M	175.70M	157.65M	137.12M	83.56M	61.39M
Gross Profit	128.58M	125.87M	111.97M	95.81M	55.95M	39.23M
EBITDA	131.86M	145.87M	201.67M	142.37M	-14.93M	41.62M
Net Income	78.65M	90.88M	160.03M	91.75M	146.36M	14.84M
Balance Sheet
Total Assets	2.61B	2.60B	2.46B	1.97B	1.66B	710.50M
Cash, Cash Equivalents and Short-Term Investments	14.37M	11.53M	5.92M	11.53M	82.28M	13.99M
Total Debt	1.28B	1.25B	1.19B	827.11M	679.55M	342.72M
Total Liabilities	1.55B	1.54B	1.46B	1.09B	968.67M	410.92M
Stockholders Equity	1.06B	1.06B	1.00B	872.54M	689.48M	299.58M
Cash Flow
Free Cash Flow	3.91M	24.70M	32.08M	30.32M	19.62M	18.69M
Operating Cash Flow	23.52M	38.96M	51.02M	41.53M	25.00M	24.35M
Investing Cash Flow	29.10M	-78.60M	-345.99M	-315.73M	-469.25M	-45.07M
Financing Cash Flow	-46.06M	45.26M	289.36M	203.45M	512.54M	26.84M

Nexus Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NXR.UN, the sentiment is Positive. The current price of 7.94 is above the 20-day moving average (MA) of 7.63, above the 50-day MA of 7.70, and above the 200-day MA of 7.26, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 66.79 is Neutral, neither overbought nor oversold. The STOCH value of 96.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
MRG.UN	76 Outperform	C$911.04M	7.51	6.37%	4.36%	3.83%	63.32%
MI.UN	69 Neutral	C$488.69M	6.53	7.26%	3.91%	-1.21%	―
NXR.UN	67 Neutral	C$770.35M	9.52	7.32%	8.06%	0.41%	78.32%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AX.UN	63 Neutral	C$767.73M	-8.98	-4.93%	7.50%	-20.06%	19.27%
ERE.UN	47 Neutral	C$262.61M	-1.63	-40.17%	269.20%	-33.76%	-125.67%

Nexus Real Estate Investment Corporate Events

Nexus Industrial REIT Reports Strong Q3 2025 Results with Key Developments and Leasing Success

Nexus Industrial REIT reported strong third-quarter results for 2025, highlighted by the completion of two significant industrial developments and robust leasing activity. The developments are expected to add $6.6 million in annual stabilized net operating income, with a notable 9.4% return on development costs. The company also achieved a 96% occupancy rate, reflecting successful leasing efforts, including filling a large vacant space and renewing leases at favorable terms. Despite a slight decrease in net operating income due to property dispositions, Nexus continues to transition effectively to a pure-play industrial REIT, enhancing its market position and delivering value to unitholders.