'Buy' Nexus Select Trust Maintains ICICI Securities On Acquisition-Led Growth Strategy

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ICICI Securities Report

We attended Nexus Select Trust real estate investment trust’s recently held Analyst Meet. The company has unveiled its “Nexus 2.0: Re-imagining the Future” strategy.

This entails doubling its mall portfolio to ~30–35 malls by 2030 and gross leasable area to ~18–20 msf primarily through an acquisition led strategy. This implies net operating income growing ~2x to Rs 30 billion+ by FY30 driven by 8% LTL consumption CAGR.

We retain our Buy rating, with a revised Mar’26E DCF based target price of Rs 161/share (earlier Rs 157), incorporating MBD, Ludhiana asset in our estimates, valuing assets at 6.8% cap rate considering potential value accretion from pipeline assets.

At CMP of Rs 133, we expect Nexus REIT to deliver net distributable cash flow distribution yield of 6.9% in FY26E and 7.4% in FY27E.

Key risks: Consumption slowdown and falling occupancies.

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