Nexus Select Trust · NSE:NXST.RR
Nexus Select Trust — Q3 FY24 Earnings Presentation
39 slides from Nexus Select Trust's earnings presentation, Feb 6, 2024
Slide 1: Nexus Select Trust Q3 FY24 Earnings Update
Nexus Select Trust Q3 FY24 Earnings Update February 06, 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 Update 7 II.A Leasing Update 11 II.B Marketing & Operations Update 16 III. Hospitality & Office 19 IV. Financial Update 22 V. ESG Initiatives 27 VI. Appendix 30 2 2
Slide 4: Key Highlights
(I). KEY HIGHLIGHTS Nexus Seawoods, Navi Mumbai
Slide 5: 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 97.3% ~3,000 Leased Occupancy(1) Retail Stores with Ahmedabad Indore 1,000+ Brands Bhubaneswar Navi Mumbai H
Slide 6: Key Highlights for Q3 FY24
KEY HIGHLIGHTS FOR Q3 FY24 OCCUPANCY RAMP-UP LEASING CONSUMPTION GROWTH Achieved all time high Re-leased 0.21M sf at 26% spread Highest ever quarterly tenant sales occupancy of 97.3% during the quarter (Amount in INR M) 97.3% 0.25M sf 152 Leased Deals 33,297 96.2% 30,815 0.21M sf 26% Re-leased Re-le
Slide 7: Consolidated Performance (Q3 FY24)
CONSOLIDATED PERFORMANCE (Q3 FY24) Continue to deliver strong overall performance and on track to achieve projected FY24 NOI and distribution INR 5,661 M INR 4,185 M INR 4,038 M Revenue from Operations NOI EBITDA 14% INR 2.00 100% Distribution per unit for YoY NOI Growth(1) NDCF Payout Q3 FY24 Notes
Slide 8: Retail Update
(II). RETAIL UPDATE Nexus Elante, Chandigarh
Slide 9: Emerging Macro Trends
EMERGING MACRO TRENDS Retail real estate fundamentals continue to be robust due to favorable demand-supply dynamics 2024 Retail Overview Rising Luxury Demand Other Trends Top 30 Cities in India Mix of Luxury in Total Tenant Demand (Area in M sf) 9.0% 10 Digital First brands 2x pivoting towards omni-
Slide 10: Retail Performance Summary
RETAIL PERFORMANCE SUMMARY (90% OF GAV) (1) Strong operating and financial performance on the back of highest ever retail occupancy of 97.3% INR 5,027 M INR 3,739 M 74% Retail Revenue from Retail NOI Retail NOI Margin Operations 97.3% INR 1,801 psf pm 5.3 Years Leased Occupancy Trading Density(2) WA
Slide 11: Consumption Growth
CONSUMPTION GROWTH Consumption growth of 8% YoY in Q3 FY24 achieving highest ever quarterly tenant sales of INR 33 billion 14% YoY tenant sales growth in 9M FY24 Consumption Recovery and Growth (Amount in INR M) 33,297 92,216 30,815 80,822 24,448 Q3 FY20 Q3 FY23 Q3 FY24 9M FY23 9M FY24 Notes: Above
Slide 12: Leasing Update
(II. A). LEASING UPDATE Nexus Amritsar, Amritsar
Slide 13: Robust Leasing and Strong Embedded MTM Growth
ROBUST LEASING AND STRONG EMBEDDED MTM GROWTH Strong leasing momentum with 97.3% occupancy for retail portfolio; stable lease expiry profile with ~20% MTM potential Q3 FY24 Updates Area Expiring (M sf) 97.3% 96.1% Leased Occupancy Trading Occupancy 1.0 0.8M sf Average 0.7 0.6 0.25M sf 152 Leased Tot
Slide 14: New Stores Openings
NEW STORES OPENINGS 88 new stores totaling 227k sf commenced trading in Q3 FY24 227k sf Store Area 88 New Stores Simon Carter (Nexus Vijaya) Shaya (Nexus Shantiniketan) 25 New Tenants 63 Existing Tenants Levi’s (Treasure Island) 13
Slide 15: Turn Around Case Study: South Portfolio
TURN AROUND CASE STUDY: SOUTH PORTFOLIO (1) Post acquisition, ramped-up occupancy by 860 bps with growth in tenant sales / NOI by 50%/ 33% respectively Occupancy (%) South Portfolio(1) 8 4.2M sf 96.6% Assets Leasable Area 88.0% Strategic initiatives undertaken ✓ Comprehensive asset upgrade program A
Slide 16: Turn Around Case Study: Fiza by Nexus (Mangaluru)
TURN AROUND CASE STUDY: FIZA BY NEXUS (MANGALURU) Turned around Fiza by Nexus by ramping up occupancy by ~1,630 bps with 40 marquee brands introduced Occupancy Ramp-up Enhanced Brand Offerings 88.3% 72.0% At Acquisition Dec'23 40 New Brands added, introduced 10+ International brands to the city 15
Slide 17: Marketing & Operations Update
(II. B). MARKETING & OPERATIONS UPDATE 16 Nexus Vijaya, Chennai
Slide 18: Customer Engagement Initiatives
CUSTOMER ENGAGEMENT INITIATIVES Multiple marketing initiatives in Q3 FY24 augmenting shopper traffic Sonu Nigam Concert (Nexus Elante) Experiential Setup (Nexus Celebrations) Christmas Decor (Nexus Elante) City Badminton League (Nexus Vijaya) Experiential Setup (Nexus Westend) Christmas Decor (Nexus
Slide 19: Technology Initiatives
TECHNOLOGY INITIATIVES Good initial traction on the Nexus One mobile application with 180k+ downloads Nexus One: Customer Mobile Application 6 Malls App Launched 180k+ Downloads 120k+ Loyalty Program Registrations App: Features and Benefits ✓ Loyalty Program ✓ Offers and Discounts 10 Malls ✓ Informa
Slide 20: Hospitality & Office
(III). HOSPITALITY & OFFICE Hyatt Regency, Chandigarh
Slide 21: Hospitality Snapshot
HOSPITALITY SNAPSHOT (3% of GAV) (1) Hospitality business performance for Q3 FY24 in-line with projections Hyatt Regency, Chandigarh (211 Keys) Oakwood Residence, Bengaluru (143 Keys) 75% INR 11,351 62% INR 7,363 Occupancy ADR Occupancy ADR INR 286 M INR 125 M INR 68 M INR 32 M Revenue from Operatio
Slide 22: Office Snapshot
OFFICE SNAPSHOT (6% of GAV) (1) Office portfolio of 1.3M sf is 78% occupied Westend Office Vijaya Office Elante Office Leasable Area (M sf) 1.0 0.2 0.1 Leased Occupancy (%) 73% 100% 78% WALE (Years) 3.4 5.3 4.6 In-Place Rent (INR psf) 89 56 109 Q3 FY24 NOI (INR M) 164 22 31 (1) Based on Sep’23 indep
Slide 23: Financial Update
(IV). FINANCIAL UPDATE Nexus Celebration, Udaipur
Slide 24: NDCF Walkdown
NDCF WALKDOWN Delivered distribution of INR 3,030 M for Q3 FY24; in-line with projections (INR M) Particulars Q3 FY24 Revenue from Operations 5,705 ⁽¹⁾ NOI Direct Operating Expenses (1,343) Property Taxes and Insurance (177) Net Operating Income 4,185 Other Income 200 Indirect Operating Expenses (38
Slide 25: Distribution Summary
DISTRIBUTION SUMMARY Q3 FY24 distribution of INR 3,030 M / INR 2.00 per unit represents 100% payout ratio of NDCF; on track to distribute FY24 projected NDCF Distribution Highlights Distribution Mix Other Income Distribution Period 1st Oct’23 to 31st Dec’23 Amortization of 1.3% SPV Debt 11.1% Distri
Slide 26: Active Debt Management
ACTIVE DEBT MANAGEMENT Refinanced ~INR 9.5 Bn at debt cost of 8.1% (~120 bps lower) resulting in an annual savings of ~INR 115 M Debt Maturity Profile INR 35 Bn (Amount in INR M) Net Debt(1) 2 14% LTV(1)(2) 2 2 (3) 2 2 2 2 AAA / Stable REIT level debt SPV level debt CRISIL / ICRA Rating Debt Refinan
Slide 27: Balanced Debt Profile
BALANCED DEBT PROFILE Robust balance sheet with diversified debt portfolio; average debt cost at 8.2% (lower by 10bps QoQ with recent refinancing) REIT/ SPV Debt Composition Fixed/ Floating Debt Composition SPV Level Debt Fixed Debt 48% 24% Gross Debt Gross Debt INR 41 Bn INR 41 Bn REIT Level Debt F
Slide 28: ESG Initiatives
(V). ESG INITIATIVES 4.4MW Solar Plant, Katol
Slide 29: 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 ESG Certifications and Awards Key ESG Stats 35MW+ ~30% Renewable Renewable E
Slide 30: ESG Initiatives
ESG INITIATIVES 500KW Rooftop Solar, Chennai RUN FOR HAPPYNESS ~INR 60M Estimated EBITDA / ~20%+ Yield on Cost Happyness for HER Campaign (150K+ sanitary pads distributed till Dec’23) U/C 3.3MW Wind Energy Plant, Chennai 29 29
Slide 31: Appendix
(VI). APPENDIX Nexus Shantiniketan, Bengaluru
Slide 32: Consolidated Performance (YTD FY24)
CONSOLIDATED PERFORMANCE (YTD FY24) Continue to deliver strong overall performance and on track to achieve projected FY24 NOI and distribution INR 16,236 M INR 11,966 M INR 11,477 M Revenue from Operations NOI EBITDA(1) 17% INR 4.98 100% YoY NOI Growth(2) Distribution per unit(3) NDCF Payout Notes:
Slide 33: 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% 99% Trading Occupancy (%) 100% 99%
Slide 34: 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 0.9% East North Hospitality 3.7% 40.9% 2.9% Commercial Offices 6.1% GAV GAV INR 244 Bn South INR 244 Bn 25.4% Retail 90.0% West 29.9% (1) Based on Sep’
Slide 35: Independent Valuation (as on September 30, 2023)
INDEPENDENT VALUATION (AS ON SEPTEMBER 30, 2023) Asset Amount (INR M) Gross Asset Value Nexus Select Citywalk 45,583 (INR Bn) Nexus Elante 41,148 Nexus Seawoods 23,186 244 +4% Nexus Ahmedabad One 19,908 Nexus Hyderabad 17,672 235 Nexus Vijaya 12,916 Nexus Esplanade 9,045 Nexus Westend 8,787 Nexus Ko
Slide 36: Unitholding Pattern
UNITHOLDING PATTERN (QUARTER ENDED DECEMBER 31, 2023) Unitholding Pattern Diversified Public Unitholding Pattern (% stake) (% stake) Other Pre-IPO Others(2) Shareholders 9.4% 11.4% Select Group 24.5% Mutual Funds 35.0% Retail Individuals 10.7% Public 20.9% Other Institutional Investors(1) 6.5% Forei
Slide 37: Corporate Structure
CORPORATE STRUCTURE Nexus Select Trust 100% 99.45% EDPL SIPL CPPL NHRPL NMRPL(1) CSJIPL (Nexus NMMCPL NSRPL DIPL VPPL (Nexus NWPL NMRPL NURPL SRPL (Nexus MSPL (Nexus (Mangalore) (Nexus Amritsar and (Nexus (Nexus (Westend (Nexus Select (Nexus (Mysore) (Nexus (Nexus Westend and (Karnataka Koramangala
Slide 38: Key Terms and Definitions
KEY TERMS AND DEFINITIONS Notes: 12. Initial Portfolio Acquisition Transaction – The transaction pursuant to which the Nexus Select Trust ▪ All figures in this presentation are as of December 31, 2023 unless otherwise specified acquired the portfolio (SPVs) prior to listing. ▪ Some of the figures in
Slide 39: Thank You
THANK YOU Pratik Dantara Head of Investor Relations and Strategy Website: www.nexusselecttrust.com Email: IR@nexusselectrust.com 38 38 Phone: +91-22-6280-5000