Nexus Industrial REIT Announces Third Quarter 2025 Financial Results

Executive Summary

• Nexus Industrial REIT reported Q3 2025 net income of C$3.4 million, a reversal from a C$(45.9) million loss in the prior year, driven primarily by fair‑value gains on Class B LP units and derivatives.
• Completed two new industrial developments (325k sf in St. Thomas, ON and 115k sf in Calgary, AB) expected to add $6.6 million of annual stabilized NOI with unlevered returns of ~9.4% on development costs.
• The REIT’s industrial occupancy rose to 96%, leasing activity added 148,586 sf at a 13% average spread, and an opportunistic property sale generated net cash proceeds of $9.1 million.

Key Details

• Financial Performance (Q3 2025 vs Q3 2024)
• Net income: C$3.4 M vs a loss of C$(45.9) M YoY.
• NOI: C$32.2 M, down 1.1% YoY (impact from disposals).
• Normalized FFO per unit: C$0.181 vs C$0.187 YoY (‑$0.006).
• Normalized AFFO per unit: C$0.146 vs C$0.157 YoY (‑$0.011).
• Year‑to‑Date Highlights
• Net income YTD: C$29.0 M vs C$41.2 M YoY.
• NOI YTD: C$96.4 M, up 2.9% YoY.
• Industrial Same Property NOI YTD: C$81.6 M, +2.9% YoY.
• Unitholders’ equity decreased to $1.1 B ($14.88 per unit).
• Development Activity
• Completed 325k sf expansion in St. Thomas, ON (development cost C$54.9 M; going‑in yield 9.0%).
• Completed 115k sf small‑bay complex in Calgary, AB (cost C$15.4 M; going‑in yield ~11%).
• Combined expected annual stabilized NOI addition: $6.6 M (unlevered 9.4% return).
• Leasing Activity
• Added 148,586 sf of leased space at an average spread of 13% over expiring/in‑place rents.
• In‑place occupancy increased to 96% (+1 ppt QoQ).
• Completed 150k sf of renewals with a 13% average lift.
• Disposition Activity
• Sold an industrial property for net cash proceeds of $9.1 M.
• Year‑to‑date sold legacy retail (15), office (1) and industrial (3) properties for total proceeds of $71.3 M as part of capital recycling program.
• Financing & Capital
• Net debt: C$1,275.6 M; Total indebtedness ratio 48.9%; Debt‑service coverage 1.70×.
• Cash balance increased to C$14.4 M.
• Outlook
• Anticipates ~3% Same Property NOI growth for full‑year 2025 (down from prior mid‑single‑digit guidance).
• Normalized AFFO payout ratios: 107.1% (three months) and 104.0% (nine months); management believes current distributions are sustainable.
• Distributions
• Cash distribution of $0.05333 per unit payable Dec 15, 2025 (annualized $0.64 per unit).
• Additional cash distribution of $0.05333 per unit payable Jan 15, 2026 (annualized $0.64 per unit).
• Investor Call
• Earnings conference call scheduled for 10:00 a.m. ET on Nov 13 2025; recording available until Dec 13 2025.

Notable Quotes

“The third quarter marked another strong operating quarter for Nexus… we completed two exciting new industrial developments, which combined will add $6.6 million of annual stabilized NOI, representing an unlevered 9.4% return on our development costs.” – Kelly Hanczyk, CEO

“I am very excited with our progress this quarter, and I am confident that our strategy will continue to be rewarding for our unitholders.” – Kelly Hanczyk, CEO