Nexus Select Trust Q4 FY26 Earnings Analysis

- Consumption is expected to grow at about 8% leading to revenue share contributing approximately 1%–1.5% growth. - Cost-saving measures and growth from hotels and offices add another 0.5%–1% to Net Operating Income (NOI) growth. - Overall, steady-state NOI growth is projected at 8.5%–9%. - Minimum guaranteed rentals escalate at ~15% every three years, contributing around 5% annual growth. - Mark-to-market rental renewals contribute up to 2% growth annually. - Acquisitions are expected to add approximately INR 150 crores of NOI yearly starting FY26. - The portfolio is targeting expansion to 30-35 malls by 2030 from 19 currently, supported by a robust pipeline. - Footfall and consumption trends show sustained momentum with categories like jewellery and beauty sectors growing strongly. - The NOI to consumption ratio typically ranges between 10% to 12%, maintained through contract structures.

- NOI growth expected at a steady-state rate of about 8.5% to 9% annually, driven by: - 5% growth from minimum guaranteed rentals with 15% escalation every three years. - Around 2% growth from mark-to-market uplifts on 10% of expiring rentals annually. - Approximately 1% to 1.5% from revenue share if consumption grows about 8%. - Additional 0.5% to 1% from cost savings, hotel and office growth. - Rental growth broadly replicates like-for-like consumption growth of around 9%. - Retail NOI grew 15% year-on-year in Q3 FY26; sustained double-digit consumption growth supports continued profitability. - Annual addition of INR 150 crores NOI expected from acquisitions starting FY26, contributing to inorganic growth. - Strong acquisition pipeline aims to expand from 19 to 30-35 malls by 2030, supporting future earnings growth.

- A recent strategic bolt-on acquisition of 60,000 square feet of prime retail space within Nexus Elante was completed, aimed at activating high-street frontage and leasing to couture brands. - Plans to selectively replicate such acquisition-led expansion strategies across the portfolio where similar opportunities exist. - Across the top five malls, there are opportunities in at least two to three assets for expansion or consolidation, such as the 60,000 sq ft opportunity at Elante. - Discussions on potential Greenfield mall developments are ongoing, with evaluations underway and updates expected in the coming months. - The acquisition pipeline is robust, with 11 assets across India (4 under due diligence) and a target to add about INR 150 crores of annual NOI via acquisitions each year starting FY 26. - The overall goal is to double the portfolio size by FY 30, increasing mall count to 30-35 from 19 currently.

- During the quarter, Nexus Select Trust raised INR 700 crores in debt, anchored by IFC, including a 10-year sustainability-linked bond of INR 200 crores, resulting in annualized savings of INR 6 crores. - The Trust has close to USD 1 billion of debt headroom, supporting its inorganic growth strategy. - Proactive debt management has led to approximately 120 basis points reduction in debt costs since listing. - Refinancing of INR 700 crores this quarter has been done with a reduction of around 90 bps, with additional interest cost benefits expected in the coming quarters. - No specific mention of new equity fundraising in the transcript. - The acquisition pipeline is robust with 11 assets, and the Trust is well positioned to execute further acquisitions through available debt capacity.

- Nexus Select Trust currently has a robust acquisition pipeline with 11 assets across India. - Out of these, 4 assets are under due diligence and expected to close within the next four to six months (Page 6). - There are an additional 7 malls in the pipeline that are actively being pursued (Page 6). - The trust aims to add around INR 150 crores of annual NOI through inorganic growth starting FY 26, continuing for the next five years (Page 6). - The overall objective is to increase the portfolio from 19 malls today to 30-35 malls by 2030 (Page 6). - Ongoing evaluation of potential greenfield developments is also in progress, with updates expected in the coming months (Page 10).