Highlights

• Nexus Industrial REIT declared C$0.05333 per unit for November and December, or C$0.64 on an annual basis.

• Third-quarter AFFO Payout Ratio improved to 95.3 percent from 108.3 percent a year earlier on stronger NOI.

• Industrial Lease renewals in the quarter were signed at an average spread of 29 percent over expiring rents.

• Guidance for 2026 industrial same property NOI growth was trimmed to between 3 and 4 percent.

Nexus Industrial REIT (TSX:NXR.UN) renewed Warehouse leases at rents 29% above expiring levels in the third quarter, yet it still pays out roughly 95 cents of every dollar of adjusted funds from operations. Strong leasing, in other words, has narrowed the gap rather than opened a cushion.

The monthly distribution therefore stays at C$0.05333, or C$0.64 a year, while the trust trims guidance, sells non-core sites and channels Capital into data-infrastructure projects in British Columbia.

Distribution and yield

The November payment goes to unitholders of record on 30 November and will be paid on 15 December; the December payment follows on 15 January 2027 for holders of record on 31 December. Neither marks a change in rate.

Twelve monthly payments in the year to 10 November total C$0.64, a trailing Yield of 7.84% on the C$8.16 close, the same as the indicated figure. The units had closed at C$7.55 on 4 November, and earlier screening data used C$7.25, so a rising price, not a lower payout, explains the smaller yield.

Third-quarter performance

Property Revenue increased to C$45.7 million and NOI grew 7.8% to C$34.7 million. Same property NOI rose 3.8% overall and 4.2% in industrial assets, where occupancy held at 97%. FFO was C$0.194 per unit and AFFO C$0.166, producing a 95.3% AFFO payout ratio against 108.3% a year earlier; on a normalised basis the ratio was 95.6%.

Normalised FFO per unit improved by C$0.013 and normalised AFFO by C$0.020 year on year. Third-quarter renewals covered 225,480 square feet, while year-to-date renewals of 646,573 square feet achieved an average spread of 11%.

Balance sheet and disposals

The total indebtedness ratio stood at 49.0%, and net Debt was 10.5 times adjusted EBITDA. Adjusted net debt was 10.1 times adjusted EBITDA. A Red Deer property sold for C$11.3 million in the quarter, following a Calgary sale for C$8.5 million and the disposal of an 80% interest in Hamilton development land for C$14.1 million. Excess land in Blackfalds, Alberta, fetched C$2.5 million on 1 October, and a C$20.5 million secured Facility was extended to 31 August 2027.

Data ambitions and a trimmed outlook

In Richmond, the trust plans data vaults with a combined Investment of C$60.3 million and a 9.9-megawatt target, with 2.1 megawatts currently available and conditional approval from BC Hydro for more. A profit-sharing agreement with Studio Events Ltd. is attached, and third-quarter spending there reached C$9.2 million, against C$4.3 million in Kelowna. In Kelowna, micro-industrial units costing C$47.3 million carry a minimum unlevered return target of 6.0%.

Management now expects industrial same property NOI growth of 3% to 4%, below its earlier mid-single-digit guide, and a normalised AFFO payout ratio averaging below 100% for 2026. The trust's SmallCap index status is drawn from exchange-traded fund holdings as of 25 September 2026.