Nexus Select Trust · NSE:NXST.RR
Nexus Select Trust — Q4 FY24 Earnings Presentation
48 slides from Nexus Select Trust's earnings presentation, May 9, 2024
Slide 1: Nexus Select Trust Q4 FY24 & FY24 Earnings Update
Nexus Select Trust Q4 FY24 & FY24 Earnings Update May 09, 2024
Slide 2: Disclaimer
DISCLAIMER This presentation is issued by Nexus Select Mall Management Private Limited (the “Manager”) in its capacity as the Manager of the Nexus Select Trust, for general information purposes only, without regards to the specific objectives, financial situation or requirements of any particular pe
Slide 3: Table of Contents
TABLE OF CONTENTS I. Key Highlights 3 II. Retail Real Estate Fundamentals 8 III. Retail Update 13 III.A Leasing Update 16 III.B Marketing & Operations Update 21 IV. Hospitality & Office 26 V. Financial Update 29 VI. ESG Initiatives 34 VII. Appendix 38 2 2
Slide 4: Key Highlights
(I). KEY HIGHLIGHTS Nexus Hyderabad, Hyderabad
Slide 5: FY24 Performance and FY25 Guidance
FY24 PERFORMANCE AND FY25 GUIDANCE Achieved / Outperformed FY24 On Target For FY25 Key Metrics Projections(1) Projections(1) Net Operating Income INR 16.1 Bn Net Operating INR 17.6 Bn Net Operating Income(100% Achieved) Income(9% YoY Growth) Net Operating Net Operating Income 97.6% 98%+ Retail Occup
Slide 6: Key Highlights for Q4 FY24
KEY HIGHLIGHTS FOR Q4 FY24 CONSUMPTION GROWTH LEASING OCCUPANCY RAMP-UP Sustained consumption momentum Achieved highest ever Leased 0.26M sf in Q4 FY24 with 9% YoY growth in Q4 FY24 occupancy of 97.6% (Amount in INR M) (Amount in INR M) 27,784 0.26M sf 181 97.6% Leased Deals 96.3% 25,535 0.19M sf 16
Slide 7: Consolidated Performance (Q4 FY24)
CONSOLIDATED PERFORMANCE (Q4 FY24) Strong Q4 FY24 performance; achieved projected NOI and outperformed on distributions INR 5,347 M INR 4,166 M INR 3,943 M Revenue from Operations NOI EBITDA 13% INR 2.09 p.u. 100% YoY NOI Growth(1) Q4 FY24 Distribution NDCF Payout Notes: Above numbers (except NDCF)
Slide 8: Maiden Acquisition: Update
MAIDEN ACQUISITION: UPDATE In advanced process to acquire three Grade-A malls in CBD Hyderabad at an attractive basis; strengthening our presence in Hyderabad market Considering the low LTV (14%), the acquisition will be fully funded by debt without any equity dilution Key Metrics 1.0M sf ~INR 10 Bn
Slide 9: Retail Real Estate Fundamentals
(II). RETAIL REAL ESTATE FUNDAMENTALS Nexus Esplanade, Bhubaneswar
Slide 10: India's Retail Fundamentals
INDIA’S RETAIL FUNDAMENTALS Organized retail in India is in nascent stage of growth and continues to capture share from unorganized retail Discretionary retail expected to grew at a CAGR of 14% over next 4 years till FY28 Organized Retail Capturing Market Share Indian Consumption Basket ($ in billio
Slide 11: Embedded Organic Growth with Significant Mark-to-Market Potential
EMBEDDED ORGANIC GROWTH WITH SIGNIFICANT MARK-TO-MARKET POTENTIAL NXST highest ever retail portfolio occupancy of 97.6% (480bps above market) with 14% mark-to-market opportunity Market Rents 14% above In-place Rents Occupancy (Mar’24) Rents (INR psf/month) (%) 144 97.6% 127 92.8% (1) (2) In-place Re
Slide 12: Strong Demand from International Brands
STRONG DEMAND FROM INTERNATIONAL BRANDS International brands continue to expand their presence in India with ~25 new brands expected to enter in 2024 Global Retail Brands Entering India International Brand Expansion in India (No. of Brands) 25 29 11 1 2 Apr-23 Mar-24 Jul-23 Mar-24 11 47 34 24 2022 2
Slide 13: Omni-Channel Presence for D2C Brands
OMNI-CHANNEL PRESENCE FOR D2C BRANDS E-commerce / D2C brands continue to expand their offline presence in India Creating incubation spaces to experiment with more such formats which are successful online Brand Expansion Examples (No. of Stores) 174 2,000 95 900+ Dec-21 Dec-23 Jan-22 Mar-24 177 227 1
Slide 14: Retail Update
(III). RETAIL UPDATE Nexus Shantiniketan, Bengaluru
Slide 15: Retail Performance Summary (Q4 FY24)
RETAIL PERFORMANCE SUMMARY (Q4 FY24) (90% OF GAV) (1) Strong operating and financial performance on the back of highest ever retail occupancy of 97.6% and strong sales growth INR 4,712 M INR 3,687 M 78% Retail Revenue from Retail NOI Retail NOI Margin Operations 97.6% INR 1,500 psf pm 5.1 Years Leas
Slide 16: Consumption Growth
CONSUMPTION GROWTH Robust consumption growth of 13% YoY in FY24 achieving highest ever annual tenant sales of INR 120 billion 9% YoY tenant sales growth in Q4 FY24 Consumption Recovery and Growth (Amount in INR Bn) 120.0 106.3 27.8 25.5 Q4 FY23 Q4 FY24 FY23 FY24 Notes: Above numbers are indicative u
Slide 17: Leasing Update
(III.A). LEASING UPDATE Nexus Amritsar, Amritsar
Slide 18: Robust Leasing
ROBUST LEASING Strong leasing momentum with highest ever retail occupancy of 97.6%; 85+ new brands introduced in FY24 Q4 FY24 Updates New Brands Introduced in FY24 97.6% 95.6% Leased Occupancy Trading Occupancy Pret A Manger Ancestry 0.26M sf 181 Leased Total Deals 0.19M sf 16% Re-leased Re-leasing
Slide 19: Demonstrated Mark-to-Market Growth
DEMONSTRATED MARK-TO-MARKET GROWTH Stable lease expiry profile over the next 3 years with MTM potential of ~20% In FY24, strategically churned ~0.2M sf over and above the contractual expiry of 0.6M sf Leasing Area Expiring (M sf) (M sf) 1.7 1.0 0.8M sf Average 1.2 1.2 0.7 0.7 1.2M sf Average 1.1 0.3
Slide 20: New Stores Openings (Q4 FY24)
NEW STORES OPENINGS (Q4 FY24) 71 new stores(1) totaling 94k sf commenced trading in Q4 FY24 94k sf Store Area(1) 71 New Stores(1) NARS (Nexus Select Citywalk) Fred Perry (Nexus Elante) 16 New Tenants 55 Existing Tenants Timezone (Nexus Koramangala) (1) Include Kiosks. 19
Slide 21: Case Study: Pro-active Management
CASE STUDY: PRO-ACTIVE MANAGEMENT Pro-active lease management during contract tenure resulting in achieving significant re-leasing / renewal spread Re-leasing / Renewal at Significant Spread(1) (INR psf/month) Area Renewed: 31k sf Area Re-leased: 25k sf 120 100 75 59 Leading Indian Fashion Leading I
Slide 22: Marketing & Operations Update
(III.B). MARKETING & OPERATIONS UPDATE 21 Nexus Elante, Chandigarh
Slide 23: Print Ads and Digital Campaign
PRINT ADs AND DIGITAL CAMPAIGN ~1,000+ Print ADs and Digital Campaign with a total reach of 600M+ eye-balls in FY24 22 22
Slide 24: Category Promotion Initiatives
CATEGORY PROMOTION INITIATIVES Multiple category promotion initiatives across malls during FY24 witnessed participation by 100+ brands DENIM FEST T-FEST SNEAKER FEST GLOSS BOX (BEAUTY) TECHSTINATION LUGGAGE FEST 23 23
Slide 25: New Revenue Opportunities Within the Portfolio
NEW REVENUE OPPORTUNITIES WITHIN THE PORTFOLIO NXST organized 14 ticketed events in FY24 augmenting ~7% footfall growth; onboarded Ayushmann Khurrana as a new “Happyness Ambassador” for Nexus Select Malls Celebrity Event Live Concert Stand-up Comedy Movie Promotion Sports Event Festival Celebration
Slide 26: Technology Initiatives
TECHNOLOGY INITIATIVES Successfully expanded Nexus One mobile application to 8 malls; expected to launch in all malls in FY25 Nexus One: Customer Mobile Application App: Features and Benefits ✓ Loyalty Program ✓ Offers and Discounts ✓ Information on New Stores, Arrivals ✓ Information on Upcoming Eve
Slide 27: Hospitality & Office
(IV). HOSPITALITY & OFFICE Hyatt Regency, Chandigarh
Slide 28: Hospitality Snapshot (Q4 FY24)
HOSPITALITY SNAPSHOT (Q4 FY24) (3% of GAV) (1) Hospitality business performance for Q4 FY24 ahead of the projections Hyatt Regency, Chandigarh (211 Keys) Oakwood Residence, Bengaluru (143 Keys) 78% INR 10,826 60% INR 7,037 Occupancy ADR Occupancy ADR INR 275 M INR 124 M INR 65 M INR 27 M Revenue fro
Slide 29: Office Snapshot
OFFICE SNAPSHOT (6% of GAV) (1) 1.3M sf office portfolio is 78% occupied Westend Office Vijaya Office Elante Office Leasable Area (M sf) 1.0 0.2 0.1 Leased Occupancy (%) 73% 100% 86% WALE (Years) 3.2 5.1 4.4 In-Place Rent (INR psf) 91 56 107 Q4 FY24 NOI (INR M) 180 24 25 (1) Based on Mar’24 independ
Slide 30: Financial Update
(V). FINANCIAL UPDATE Nexus Seawoods, Navi Mumbai
Slide 31: NDCF Walkdown
NDCF WALKDOWN Outperformed projected distribution for Q4 FY24 and for the year FY24 (INR M) (1) Particulars Q4 FY24 FY24 (2) (2) Revenue from Operations 5,403 19,313 NOI Direct Operating Expenses (1,113) (4,524) Property Taxes and Insurance (124) (441) Net Operating Income 4,166 14,348 Other Income
Slide 32: Distribution Summary
DISTRIBUTION SUMMARY Q4 FY24 distribution of INR 3,168 M / INR 2.09 per unit represents 100% payout ratio of NDCF Distribution Highlights Distribution Mix (FY24) Particulars Q4 FY24 FY24 Amortization of Other Income Distribution Period 1st Jan’24 to 31st Mar’24 19th May’23 to 31st Mar’24 SPV Debt 0.
Slide 33: Active Debt Management
ACTIVE DEBT MANAGEMENT Refinanced ~INR 9.5 Bn at debt cost of 8.1% (~40 bps lower) resulting in an annual savings of ~INR 40 M Debt Maturity Profile INR 35 Bn (Amount in INR M) Net Debt(1) 241 14% 1 31 4 34 LTV(1)(2) 4 1 4 2 AAA / Stable F 2 F 2 F 2 F 2 F 2 CRISIL / ICRA Rating REIT level debt SPV l
Slide 34: Stable Debt Profile
STABLE DEBT PROFILE Stable debt of INR 43 Bn with an average debt cost of 8.1% (lower by 10bps QoQ with recent refinancing) REIT/ SPV Debt Composition Fixed/ Floating Debt Composition SPV Level Debt Fixed Debt 47% 26% Gross Debt Gross Debt INR 43 Bn INR 43 Bn REIT Level Debt Floating Debt 53% 74% 2.
Slide 35: ESG Initiatives
(VI). ESG INITIATIVES 4.4MW Solar Plant, Katol
Slide 36: Strong ESG Commitment
STRONG ESG COMMITMENT 50+ ongoing ESG initiatives to create a positive impact on people, community and the environment Actively working on a roadmap to achieve net carbon neutrality by FY30 for scope 1 and scope 2 emissions Certifications and Awards Key ESG Stats 38MW+ ~38% Renewable Renewable Energ
Slide 37: ESG Initiatives (FY24)
ESG INITIATIVES (FY24) Empowering & Supporting Underprivileged Children Blanket Distribution (Assisted 500+ children) (~13,000 Blanket Distributed) Happyness for HER Campaign (700K+ sanitary pads distributed) Developed Children’s Park 36 36
Slide 38: Chennai Wind Energy Plant
CHENNAI WIND ENERGY PLANT Installed 3.3MW wind energy plant in Chennai with potential of generating ~10M units annually at 20%+ YoC Key Stats 3.3MW ~10M Wind Energy Annual Unit Plant Generation 20%+ ~INR 70M YoC Annualized Cost Savings ~7k tonnes ~70% CO2 emissions of Nexus Vijaya’s offset consumpti
Slide 39: Appendix
(VII). APPENDIX Nexus Whitefield, Bengaluru
Slide 40: Portfolio Overview
PORTFOLIO OVERVIEW India’s first retail REIT and leading Grade-A Consumption centre platform 17 9.9M sf Consumption Centres Retail Portfolio Amritsar Across 14 Cities Chandigarh Delhi Udaipur 97.6% ~3,000 Leased Occupancy(1) Retail Stores with Ahmedabad Indore 1,000+ Brands Bhubaneswar Navi Mumbai H
Slide 41: Key Asset Summary
KEY ASSET SUMMARY Nexus Nexus Select Nexus Nexus Ahmedabad Nexus Nexus Particulars Citywalk Elante Seawoods One Hyderabad Nexus Vijaya Shantiniketan Operational Metrics Leasable Area (M sf) 0.5 1.3 1.0 0.9 0.8 0.6 0.6 Leasing Occupancy (%) 100% 99% 98% 98% 99% 100% 97% Trading Occupancy (%) 99% 98%
Slide 42: Value Breakdown
VALUE BREAKDOWN 100% completed portfolio with retail focus and geographic diversification GAV Break-up by Segment(1) GAV Break-up by Region(1) Solar 0.7% East North Hospitality 3.9% 41.0% 3.2% Commercial Offices 5.9% GAV GAV INR 254 Bn South INR 254 Bn 25.7% Retail 90.2% West 29.4% (1) Based on Mar’
Slide 43: Independent Valuation (as on March 31, 2024)
INDEPENDENT VALUATION (AS ON MARCH 31, 2024) (INR M) Gross Asset Value Asset As of Mar'24 Nexus Select Citywalk 45,586 Nexus Elante 43,978 Nexus Seawoods 24,537 Nexus Ahmedabad One 19,706 Nexus Hyderabad 18,282 Nexus Vijaya 13,540 Net Asset Value (INR per Unit) Nexus Esplanade 9,960 Nexus Koramangal
Slide 44: Unitholding Pattern (Quarter Ended March 31, 2024)
UNITHOLDING PATTERN (QUARTER ENDED MARCH 31, 2024) Unitholding Pattern Increase in Unitholders Base (% stake) Sponsor Group Select Group 43.1% 24.5% 1.5x Growth in Unitholder Base Since Q1 FY24 36k Other Pre-IPO Shareholders 32k 11.4% Public 20.9% Diversified Public Unitholding Pattern 28k (% stake)
Slide 45: Awards and Accolades
AWARDS AND ACCOLADES 2023 2023 2023 ‘Best Organisations for Women” ‘Best L&D Strategy Award” ‘Best Employer for Economic Times 4th Edition HR TECH Summit & Persons with Disabilities” Awards 2023 4th Diversity & Inclusion Excellence Awards & Conclave – 2023, ASSOCHAM 2023 2023 2023 ‘Most Innovative P
Slide 46: Corporate Structure
CORPORATE STRUCTURE Sponsor/ Unitholders Unit Ownership Distributions Holding Asset in the Trust Manager Fee Trustee Nexus Manager Trustee Fee Select Management Services Trust 100% 99.45% EDPL SIPL CPPL NHRPL NMRPL(1) CSJIPL (Nexus NMMCPL NSRPL DIPL VPPL (Nexus NWPL NMRPL NURPL SRPL (Nexus MSPL (Nex
Slide 47: Key Terms and Definitions
KEY TERMS AND DEFINITIONS Notes: 11. Gross Rentals - Rental income (the sum of Minimum Guaranteed Rentals (as defined below) and ▪ All figures in this presentation are as of March 31, 2024 unless otherwise specified Turnover Rentals (as defined below)) ▪ Some of the figures in this presentation have
Slide 48: Thank You
THANK YOU Pratik Dantara Head of Investor Relations and Strategy Website: www.nexusselecttrust.com Email: IR@nexusselecttrust.com 47 47 Phone: +91-22-6280-5000