Overview

* Nexus Industrial Q2 normalized FFO per unit up 5.6% yr/yr

* Industrial Same Property NOI grows 2.8% yr/yr

* Net loss of C$7.6 mln driven by fair value losses

Outlook

* Nexus expects mid-single digit Same Property NOI growth for full year

* Company anticipates C$6.6 mln annual NOI from two projects in Q3 2025

* Nexus sees benefit from lease-up of vacant space and market rent spreads

* Company believes current distributions are sustainable despite high payout ratios

Result Drivers

* PROPERTY DISPOSITIONS - Completed sale of two non-core industrial properties for C$11.2 mln, contributing to strategic transition to pure-play industrial REIT

* LEASING ACTIVITY - Completed 395,412 sq ft of leasing at an average spread of 38% over expiring and in-place rents, boosting revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$42.02

Property mln

Revenue

Q2 Net -C$7.62

Income mln

Q2 C$15.45

Adjusted mln

FFO

Q2 FFO C$18.16

mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the commercial reits peer group is "buy."

* Wall Street's median 12-month price target for Nexus Industrial REIT is C$7.75, about 0.5% below its August 11 closing price of C$7.79

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)