Nexus Industrial REIT Reports Strong Second Quarter Results

Strategic Insights -

Nexus Industrial REIT has achieved significant growth in the second quarter of 2025, with normalized FFO per unit increasing by 5.6% compared to a year ago. The REIT has successfully transitioned to a pure-play industrial REIT, completing the disposition of 33 legacy retail, office, and non-core industrial properties. The company is nearing completion of two developments, which will add $6.6 million of annual stabilized NOI, representing unlevered returns of 9.4% on costs. Kelly Hanczyk, CEO of Nexus Industrial REIT, expressed confidence in the company's strategy and its potential for continued growth.

Key Takeaways:

  • Nexus Industrial REIT reported a 5.6% increase in normalized FFO per unit compared to the same period last year, with industrial SPNOI growing by 2.8%.
  • The REIT has completed the disposal of 33 legacy retail, office, and non-core industrial properties, resulting in total proceeds of $62.1 million.
  • Nexus Industrial REIT has advanced construction on two developments, which will add $6.6 million of annual stabilized NOI, representing unlevered returns of 9.4% on costs.
  • The company completed 1,192,792 sf of leasing at an average spread of 82% over expiring and in-place rents.
  • Net income was $25.5 million, driven by NOI of $64.2 million and fair value gains on Class B LP units.
  • NOI increased 5.0% year over year to $64.2 million, with industrial Same Property NOI increasing by 4.3% to $54.5 million.
  • Normalized FFO per unit increased by $0.032 to $0.375, and Normalized AFFO per unit increased by $0.029 to $0.313.
  • Unitholders' equity increased by $5.6 million to $1.1 billion or $15.01 per unit.
  • NAV per unit of $13.17 decreased by $0.02 or (0.2)% compared to Q4 2024.

Statistics:

  • Average spread of 82% over expiring and in-place rents for 1,192,792 sf of leasing.
  • $6.6 million annual stabilized NOI from two developments, representing unlevered returns of 9.4% on costs.
  • $64.2 million NOI, a 5.0% increase year over year.
  • $54.5 million industrial Same Property NOI, a 4.3% increase year over year.
  • $0.032 increase in normalized FFO per unit to $0.375.
  • $0.029 increase in normalized AFFO per unit to $0.313.
  • $5.6 million increase in unitholders' equity to $1.1 billion or $15.01 per unit.

Sources:

  • Nexus Industrial REIT News Release (TSX: NXR.UN)
  • Kelly Hanczyk, CEO of Nexus Industrial REIT