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Highlights

  • Nexus Industrial REIT’s FY24 property revenues rose 11.4% YoY to CAD 175.7 million, driven by portfolio growth and GLA utilization
  • Adjusted EBITDA climbed 13.0% YoY to CAD 118.8 million, highlighting financial discipline and operating leverage
  • The 325,000 sq ft St. Thomas expansion is on track for Q2 2025, targeting a 9.0% yield on CAD 54.9 million
  • In 2025, the REIT expects mid-single-digit Same Property NOI growth, supported by new development completions

Nexus Industrial REIT (TSX:NXR.UN) is a growth-driven real estate investment trust dedicated to enhancing unitholder value by acquiring, owning, and managing a diversified portfolio of industrial, office, and retail properties.

In the financial year 2024 (FY24), the company reported 11.4% year-over-year increase in property revenues to CAD 175.7 million, driven by portfolio expansion and improved utilization of gross leasable area (GLA). Net Operating Income (NOI) also saw a solid 12.4% YoY increase to CAD 125.9 million, reflecting the company's operational execution and enhanced rent-generating capacity, supporting its strategy of profitable growth through acquisitions and development.

Adjusted EBITDA rose by 13.0% YoY to CAD 118.8 million in FY24, underscoring the firm’s operating leverage and financial discipline. This growth has improved the company’s ability to manage debt, sustain distributions, and reinvest in future expansion. Distributions declared increased 4.3% to CAD 60.0 million.

Recent Business Update

The 325,000 sq ft Dennis Rd. expansion project in St. Thomas, ON is on track for completion in Q2 2025, with the company earning a 7.8% return during construction and expecting a 9.0% contractual yield on CAD 54.9 million in development costs. Additionally, the recent sale of non-core industrial and legacy office assets sharpens the portfolio’s focus on high-quality industrial properties.

Company Outlook

The company remains committed to its strategy as a Canada-focused pure-play industrial REIT, aiming to achieve long-term growth and deliver good total returns to unitholders. In 2025, it anticipates mid-single digit growth in Same Property NOI, supported by two new developments projected to generate a combined stabilized NOI of CAD 6.8 million.

Top 10 Shareholders

The top 10 shareholders of NXR.UN collectively hold approximately 44.24% of the total shares. Ontario Inc has the largest stake at around 25.61%, followed by PGGM Vermogensbeheer B.V. with about 8.57% stake.

Stock Information

The stock has experienced an increase of approximately 8.19% over the past month, while seeing a decline of around 5.40% over the last three months. As of May 7, 2025, it closed at CAD 7.00, above the average of its 52-week high of CAD 9.15 and its 52-week low of CAD 5.98.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is May 07, 2025. The reference data in this report has been partly sourced from EODHD/Others.

 Technical Indicators Defined

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Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.