Nexus Industrial acquires Montreal buildings for $40.1M

Executive Summary

• Nexus Industrial REIT acquired two Montreal industrial buildings for $40.1 million, adding 277,000 sq ft of gross leasable area.
• The properties are under long‑term leases expiring November 2032 with a going‑in cap rate of 6.6% that is expected to reset to an estimated stabilized market rate of 10.4% in 2028.
• Acquisition was financed through the REIT’s existing credit facility and is projected to be immediately accretive to AFFO and NAV per unit.

Key Details

• Purchase price: $40.1 million.
• Combined gross leasable area (GLA): 277,000 sq ft.
• Lease terms: Long‑term leases expiring November 2032.
• Going‑in capitalization rate: 6.6%; projected stabilized cap rate in 2028: 10.4%.
• Financing: Acquisition funded by drawing on the REIT’s credit facility (no additional equity raised).
• Expected impact: Immediate accretion to AFFO and NAV per unit.
• Strategic fit: Enhances Nexus’s portfolio of high‑quality industrial properties in Canada, supporting its purpose as a leading industrial building partner.

Notable Quotes

“The opportunity was too good for us to pass up… These two well‑located, high‑quality buildings will be immediately accretive to AFFO and NAV per unit.” – Kelly Hanczyk, CEO, Nexus Industrial REIT

“The buildings fit well in our portfolio, supporting our purpose as Canada’s industrial building partner…” – Kelly Hanczyk