Q2 2026 Nexus Industrial REIT Earnings Call Transcript
Key Points
- Occupancy improved significantly to 97%, driven by leasing up vacant properties in Alberta at favorable rates.
- Completed 380,000 square feet of renewals with an average 6% rent lift, showcasing strong leasing momentum.
- Achieved investment-grade credit rating and completed a $500 million bond offering, enhancing financial flexibility.
- Advanced capital recycling with successful land sales and a property sale under contract, reducing debt.
- Development projects in BC offer potential for high returns, especially with data infrastructure opportunities.
- Net loss widened to $12.8 million due to lower fair value adjustments and higher interest expenses.
- Normalized AFFO per unit declined to $0.154 from $0.16 a year ago, impacted by higher unit count and interest costs.
- Payout ratio remains high at 99.3% year-to-date, though expected to improve.
- Leasing spreads were weak in Alberta, with some renewals at lower rents, though offset by land sales.
- Uncertainty around data center opportunities, with no confirmed tenants yet and potential for higher development costs.
Thank you for standing by. This is the conference operator. Welcome to the Nexus Industrial REIT Second Quarter 2026 Results Conference Call. (Operator Instructions)
I would now like to turn the conference over to Kelly Hanczyk, Chief Executive Officer. Please go ahead.
Thank you. I'd like to welcome everyone to the 2026 second 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 this 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 our website and at cedar.com for cautions regarding forward-looking information and further
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