02:59 PM EDT, 03/14/2024 (MT Newswires) -- Nexus Industrial REIT reported Q4 2023 results. FFO/u was $0.18 vs $0.20 in Q4/22, largely in line with NBF at $0.18 but a bit below consensus at $0.19.

Key Takeaways:

This quarter was light vs. expectations on NOI and operationally as industrial leasing spreads were impacted by geographic composition with the REIT's non-core office portfolio curtailing organic growth on occupancy declines, writes National Bank analyst Matt Kornak.

He notes that Nexus management expects these stats to get worse before they get better but full-year guidance of mid-to-high single digits on SPNOI is incrementally positive. Kornak has trimmed earnings expectations for 2024 but a consistent outlook for 2025. "Execution on leasing will be in focus."

NXR continues to benefit from favourable lending relationships with post-quarter credit expansion adding to available capital. The $200 million of expected dispositions will help normalize elevated leverage levels on both an income and percent of assets basis.

Maintain Sector Perform. Trimming target to $8.50 (from $8.75.)

Price: 7.70, Change: -0.09, Percent Change: -1.16