07:48 AM EDT, 07/18/2024 (MT Newswires) -- National Bank overnight Wednesday upgraded Nexus to Outperform from Sector Perform as the REIT is "now well progressed in its pure play industrial shift" and "appears to be emerging from some operational/capital allocation challenges with a better outlook for near-term earnings growth".

The "true positive inflection is likely in Q3" but the bank is expecting a "more stable print" in Q2.

National said in light of this "improving backdrop" and a mid-7% implied cap rate it thinks the current entry point looks attractive for investors looking to add an industrial exposure.

"Adding to performance will be the completion of expansion projects at high yields, rent commencement at the Richmond asset and still tight vacancy/fundamentals in core SW ON markets," the bank also noted.