Q4 2025 Nexus Industrial REIT Earnings Call Transcript
Key Points
- Nexus Industrial REIT (EFRTF) reported a record net operating income of $129 million for 2025, marking a 2.8% increase from the previous year.
- The company successfully transitioned to a pure-play industrial REIT by selling its retail portfolio, raising $47 million and focusing 99% of its net operating income on industrial assets.
- Two transformative developments were completed, including a 325,000 square foot addition in St. Thomas and 115,000 square feet of small bay industrial units in Calgary, both yielding strong returns.
- Nexus Industrial REIT acquired two high-quality industrial buildings in Montreal at an attractive price, resulting in a significant mark-to-market lift of approximately $23 million.
- The company achieved a strong leasing performance, completing nearly 117,000 square feet of renewals with an average rent lift of 2% and maintaining a 96% industrial occupancy rate.
- Net income for the quarter decreased by $19.1 million compared to the previous year, primarily due to fair value adjustments on Class B units and joint ventures.
- The leasing progress at the Calgary development slowed due to an unexpected tenant retirement, delaying full occupancy.
- Debt to EBITDA remains elevated near 11 times, with a target to reduce it to mid-9s by the end of 2026 to achieve an investment-grade rating.
- The sale of a new build property in Hamilton fell through at the last minute, impacting the company's ability to reduce debt and improve AFFO per unit.
- The company faces challenges in the Hamilton market, with a new state-of-the-art property still unsold, affecting cash flow and debt reduction plans.
Thank you for standing by. This is the conference operator. Welcome to the Nexus Industrial REIT fourth quarter 2025 results conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. (Operator Instructions)
I would now like to turn the conference over to Kelly Hanczyk, Chief Executive Officer. Please go ahead.
I'd like to welcome everyone to the 2025 fourth-quarter results conference call for Nexus Industrial REIT. Joining me today is Mike Rawle, Chief Financial Officer of the REIT.
Before we begin, I'd like to caution with regard to forward-looking statements and non-GAAP measures. Certain statements made during the conference call may constitute forward-looking statements, which reflect the REIT's current expectations and projections about future results.
Also during this call, we'll be discussing non-GAAP measures. Please refer to our MD&A and the REIT's other securities filings, which can be found on
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