Q3 2025 Nexus Industrial REIT Earnings Call Transcript
Key Points
- Nexus Industrial REIT (EFRTF) completed two new industrial developments, adding 440,000 square feet of GLA and generating $6.6 million of annual stabilized NOI.
- The REIT achieved a 9.4% unlevered return on development costs for the new projects.
- Strong leasing performance with nearly 150,000 square feet of renewals at an average rent lift of 13% and a 60% leasing spread year-to-date.
- The REIT successfully transitioned to a pure-play industrial REIT, with over 99% of NOI derived from industrial assets.
- Net income increased by $49.4 million compared to the previous year, driven by higher fair value adjustments on Class B LP units and derivatives.
- Net operating income decreased by 1.1% year-over-year, primarily due to property dispositions.
- Normalized AFFO per unit decreased from $0.157 to $0.146, impacted by lower NOI and increased general and administrative expenses.
- The REIT faced challenges in leasing a 150,000 square foot property in Hamilton, although progress is being made.
- A slight downward revision in guidance for 2025 same-property NOI growth due to slower lease-up in certain properties.
- The REIT's NAV per unit decreased by $0.19, primarily due to the issuance of Class B units at a lower price.
Thank you for standing by. This is the conference operator. Welcome to the Nexus Industrial REIT Third Quarter 2025 Results Conference Call. (Operator Instructions) 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 Third 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 sedar.com for cautions
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