Nexus Select Trust - Yield Play On Indian Consumption Story: ICICI Securities Initiates Coverage

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.We initiate coverage on Nexus Select Trust real estate investment trust with 'Buy' rating based on March 24E discounted cash flow-based target price of Rs 126/share. As of December 31, 2022, Nexus owns and operates 17 Grade A urban consumption centres or retail malls with total leasable area of 9.2 million square feet, two complementary hotel assets (354 keys) and three office assets (1.3 msf). We expect Nexus REIT’s net operating income compound annual growth rate at 10.4% over FY23-26E to Rs 18.8 billion based on the expected ramp-up in occupancies in existing assets, annual rental escalations and mark up of leases that are expiring. At current market price of Rs 107, we expect Nexus REIT to deliver net distributable cash flows distribution yield of 7.1% in FY24E, 7.7% in FY25E and 8.2% in FY26E. We expect ~65-70% of distribution to be in the form of dividends/principal repayments that are tax free. We believe upsides from mark-to-market opportunity, portfolio rental appreciation of 5-6% beyond FY26E and any value-accretive acquisitions may enable the REIT to deliver annual capital appreciation of 6-7% over and above the distribution yield. Key risks: Slowdown in discretionary consumption, and fall in occupancies and rentals across portfolio assets..Click on the attachment to read the full report:.Mankind Pharma - Growth Can Accelerate With Minimal Downside Risks: Systematix Initiates Coverage.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nexus Select Trust - Yield Play On Indian Consumption Story: ICICI Securities Initiates Coverage

We initiate coverage on Nexus Select Trust REIT with 'Buy' rating based on March 24E DCF-based target price of Rs 126/share.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP