Nexus Industrial REIT (NXR-UN) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $32.2 million, down $1.0 million year-over-year, mainly due to lower fair value adjustments and higher expenses, partially offset by higher NOI and derivative gains.

• NOI grew 5.4% year-over-year to $33.8 million, driven by completed developments and acquisitions, despite property dispositions.

• Normalized AFFO payout ratio improved to 96.6%, a 7.5% decrease from the prior year, moving closer to the target of below 100% for 2026.

• Achieved investment grade credit rating and completed a $500 million bond issuance in April, enhancing financial flexibility.

Financial highlights

• Property revenues increased to $46.0 million from $44.8 million year-over-year.

• NOI rose to $33.8 million from $32.1 million, and Adjusted EBITDA (LTM) was $121.3 million, nearly flat year-over-year.

• Normalized FFO per unit was $0.182 (down $0.005), and Normalized AFFO per unit was $0.162 (up $0.008) year-over-year.

• NAV per unit increased to $13.29 from $13.22 at year-end 2025.

• Unitholders' equity rose by $21.2 million to $1.1 billion.

Outlook and guidance

• Expects mid-single digit Same Property NOI growth in 2026, driven by lease-up of vacant space and positive rent spreads.

• Anticipates normalized AFFO payout ratio to average below 100% for the full year, supporting sustainable distributions.

• Benefits expected from recent developments and acquisitions, including major projects in St. Thomas, Calgary, and Montreal/Longueuil.