Business
Nexus Industrial REIT Announces First Quarter 2026 Financial Results
Net Income of $32.2 million; NOI (1) growth of 5.4% to $33.8 million; Normalized AFFO payout rat...
About this update from Nexus Industrial Reit
[{"type":"text","content":"Nexus Industrial REIT Announces First Quarter 2026 Financial Results\nNet Income of $32.2 million; NOI(1) growth of 5.4% to $33.8 million; Normalized AFFO payout ratio(1) of 96.6% TORONTO, May 11, 2026 (GLOBE NEWSWIRE) -- Nexus Industrial REIT (the “REIT”) (TSX: NXR.UN) announced today its results for the first quarter ended March 31, 2026. “In the first quarter we advanced our journey as Canada’s industrial building partner, delivering Normalized AFFO payout ratio(1) of 96.6%, a meaningful improvement over recent quarters and a significant step toward our 2026 guidance of delivering a ratio below 100% for the full year,” said Kelly Hanczyk, CEO of Nexus Industrial REIT. “We also demonstrated the strength of our balance sheet, achieving an investment grade credit rating and completing an inaugural $500 million bond issuance in April, adding financial flexibility, and reducing our cost of capital. This accomplishment marks a new stage in our evolution and is one that I am particularly proud of” concluded Mr. Hanczyk. First Quarter 2026 Highlights: Sold an industrial property located in Calgary, AB for a price of $8.5 million.In-place and committed industrial occupancy rate of 95%, representing a 100 basis point decrease compared to December 31, 2025.Completed 41,177 sq. ft. of leasing at an average spread of 32% over expiring and in-place rents.Net income was $32.2 million driven by NOI(1) of $33.8 million and fair value adjustments (gains) of $18.9 million, partially offset by finance expense, general and administrative expenses and loss on disposal of investment properties.NOI(1) increased by 5.4% versus a year ago to $33.8 million primarily attributed to NOI(1) generated from completed developments and newly acquired industrial properties, despite selling 19 legacy retail, office, and industrial properties in 2025 and one industrial property in the first quarter of 2026.Industrial Same Property NOI(1) increased 1.0% versus a year ago to $29.8 million.Normalized FFO(1) per unit decreased $0.005 versus a year ago to $0.182 and Normalized AFFO(1) per unit increased $0.008 versus a year ago to $0.162.Normalized AFFO payout ratio(1) improved by 7.5% to 96.6% as compared to the same period in the prior year.Unitholders' equity increased by $21.2 million to $1.1 billion or $15.38 per u...