Overview

* Nexus Industrial REIT's Q3 net income improves, driven by fair value adjustments

* Q3 NOI decreases 1.1% yr/yr due to property dispositions, offset by industrial Same Property NOI growth

* Company completed two development projects, expected to add C$6.6 mln annual stabilized NOI

Outlook

* Nexus anticipates 3% Same Property NOI growth for full-year 2025 vs mid-single-digit growth previously expected

* Company expects $6.6 mln annual stabilized NOI from new developments

Result Drivers

* INDUSTRIAL PORTFOLIO STRENGTH - Industrial Same Property NOI grew 2.9% to C$29.5 mln, partially offseting negative impact of asset sales on total NOI

* LEASING SUCCESS - Filled vacant 223,000 sq ft building in London and completed 150,000 sq ft of renewals, improving occupancy to 96%

* PROPERTY DISPOSITIONS - NOI decreased due to sale of retail, office, and industrial properties as part of capital recycling program

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 C$43.30

Property mln

Revenue

Q3 Net C$3.45

Income mln

Q3 FFO C$17.31

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$8.13, about 3.8% above its November 12 closing price of C$7.82

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

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(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.)