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

• Market Cap: $741.09M
• Dividend Yield: 8.15%
• Average Volume (3M): 106.03K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 1.15
• Revenue Growth: 4.66%
• EPS Growth: -82.85%
• Country: CA
• Employees: 21
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Industrial
• EPS (TTM): -0.08
• Shares Outstanding: 71,300,590
• 10 Day Avg. Volume: 98,732
• 30 Day Avg. Volume: 106,026
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.65
• Enterprise Value/Revenue: 11.08
• Enterprise Value/Gross Profit: 15.21
• Enterprise Value/Ebitda: 23.59
• 1Y Price Target: $8.29
• Price Target Upside: 5.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: C$9.00 ▲(14.65% Upside)

Nexus Real Estate Investment's overall score is driven by strong operational efficiency and positive technical indicators. The earnings call provided a positive outlook with improvements in financial metrics, despite some challenges. The valuation is a mixed bag with a high P/E ratio but an attractive dividend yield. The company's high leverage and cash conversion efficiency remain areas of concern.

Positive Factors

Capital Structure Improvement

NXR has made significant progress in disposing of non-core legacy properties and improving its capital structure over the past 12 months.

Development Projects

$10M of annualized NOI upside potential from recent and soon-to-be-completed developments.

Leasing Performance

Leasing performance has been strong with over 90% of 2025 maturities locked down at a 26% spread.

Negative Factors

Leverage and Payout Ratio

Neutral stance reflects NXR's above-average leverage and payout ratio vs. peers, as well as lingering concerns with respect to certain legacy properties.

Valuation Concerns

The relative valuation is not compelling enough compared to large-cap Canadian industrial peers on a leverage-neutral basis.

Nexus Real Estate Investment Business Overview & Revenue Model

Company Description

Nexus is a growth oriented real estate investment trust focused on increasing unitholder value through the acquisition, ownership and management of industrial, office and retail properties located in primary and secondary markets in North America. The REIT currently owns a portfolio of 73 properties comprising approximately 4.1 million square feet of rentable area. The REIT has approximately 109,910,000 units issued and outstanding. Additionally, there are Class B LP Units of subsidiary limited partnerships of Nexus REIT issued and outstanding, which are convertible into approximately 25,667,000 REIT Units.

How the Company Makes Money

Nexus Real Estate Investment generates revenue primarily through rental income from its portfolio of properties. The company leases its spaces to a variety of tenants, including businesses in retail, industrial, and office sectors. Additionally, NXR.UN may realize income from property management services, as well as potential gains from property sales or refinancing. The REIT benefits from long-term leases with tenants, which provide predictable cash flows. Significant partnerships with real estate developers and local businesses also contribute to its revenue streams, allowing for strategic acquisitions and effective asset 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. The 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	176.97M	175.70M	157.65M	137.12M	83.56M	61.39M
Gross Profit	128.95M	125.87M	111.97M	95.81M	55.95M	39.23M
EBITDA	83.14M	145.87M	201.67M	142.37M	-14.93M	41.62M
Net Income	29.21M	90.88M	160.03M	91.75M	146.36M	14.84M
Balance Sheet
Total Assets	2.58B	2.60B	2.46B	1.97B	1.66B	710.50M
Cash, Cash Equivalents and Short-Term Investments	5.64M	11.53M	5.92M	11.53M	82.28M	13.99M
Total Debt	1.26B	1.25B	1.19B	827.11M	679.55M	342.72M
Total Liabilities	1.51B	1.54B	1.46B	1.09B	968.67M	410.92M
Stockholders Equity	1.07B	1.06B	1.00B	872.54M	689.48M	299.58M
Cash Flow
Free Cash Flow	9.60M	24.70M	32.08M	30.32M	19.62M	18.69M
Operating Cash Flow	27.54M	38.96M	51.02M	41.53M	25.00M	24.35M
Investing Cash Flow	17.83M	-78.60M	-345.99M	-315.73M	-469.25M	-45.07M
Financing Cash Flow	-47.60M	45.26M	289.36M	203.45M	512.54M	26.84M

Nexus Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.85 is above the 20-day moving average (MA) of 7.79, above the 50-day MA of 7.67, and above the 200-day MA of 7.16, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 56.97 is Neutral, neither overbought nor oversold. The STOCH value of 17.06 is Positive, 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
NXR.UN	71 Outperform	$741.09M	25.32	2.47%	8.15%	4.66%	-82.85%
MRG.UN	68 Neutral	C$991.96M	10.58	4.86%	3.99%	3.93%	-29.40%
MI.UN	64 Neutral	C$500.54M	7.18	5.89%	3.81%	-0.69%	―
Sector *	63 Neutral	$7.06B	13.54	-0.50%	6.96%	4.08%	-25.24%
ERE.UN	44 Neutral	C$564.73M	―	-43.99%	65.84%	-20.65%	-629.60%
ARESF	―	$508.94M	―	-3.37%	8.17%	―	―
MHCUF	―	$449.81M	3.90	16.19%	3.25%	―	―

Nexus Real Estate Investment Corporate Events

Nexus Industrial REIT Reports Strong Q2 2025 Results Amid Strategic Shift

Nexus Industrial REIT reported strong financial results for the second quarter of 2025, marking its first quarter as a pure-play industrial REIT. The company achieved a 5.6% growth in normalized FFO per unit and a 2.8% increase in industrial SPNOI. It completed the sale of 33 non-core properties and advanced construction projects that are expected to add significant annual NOI. Despite a net loss due to fair value adjustments, the REIT’s strategic focus on industrial properties is expected to yield positive outcomes for stakeholders.

The most recent analyst rating on ($TSE:NXR.UN) stock is a Hold with a C$6.75 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 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.