Nexus Industrial REIT Announces Fourth Quarter and Year End 2025 Financial Results

Executive Summary

• Nexus Industrial REIT reported Q4 2025 net income of C$30.6 M and full‑year 2025 net income of C$59.5 M, both down year‑over‑year due to fair‑value adjustments, but offset by higher NOI and development gains.
• The REIT completed its transition to a pure‑play industrial focus, acquiring two Montreal properties for $40.1 M, selling legacy assets for $79.8 M, and adding 440,000 sq ft of GLA with an unlevered return of 9.4% on development costs.
• Distributions of $0.05333 per unit (annualized $0.64) will be paid in April and May 2026; the normalized AFFO payout ratio is expected to fall below 100% for FY‑2026.

Key Details

• Financial Performance
• Q4 2025 net income: C$30.6 M (down C$19.1 M YoY); NOI: C$33.0 M, up 2.7%.
• FY 2025 net income: C$59.5 M (down C$31.3 M YoY); NOI: C$129.4 M, up 2.8%.
• Fair‑value gains on investment properties: Q4 C$20.3 M; FY C$8.9 M.
• Normalized FFO per unit FY 2025: $0.186 (down $0.006 YoY); Normalized AFFO per unit FY 2025: $0.151 (down $0.002 YoY).
• Portfolio Activity
• Acquired two industrial properties in Montreal for C$40.1 M; expected annual stabilized NOI contribution of C$2.6 M (yield 6.6%).
• Sold legacy retail, office and industrial assets totaling C$79.8 M.
• Completed 325,000 sq ft expansion in St. Thomas (expected NOI $4.9 M, yield 9.0%) and 115,000 sq ft small‑bay project in Calgary (expected NOI $1.7 M, yield 11.0%).
• Operational Metrics
• Total portfolio: 89 properties; GLA 12.4 million sq ft.
• Industrial occupancy (in‑place & committed) year‑end 2025: 96%.
• Weighted average lease term: 6.9 years (industrial 7.0 years).
• Estimated spread between market and in‑place rents: 18.7% (down from 25.3% YoY).
• Capital Structure
• Net debt: C$1,307 M; Total indebtedness ratio: 49.3%.
• Debt service coverage ratio: 1.70×.
• Cash on hand: C$6.1 M.
• Outlook & Guidance
• Anticipates mid‑single‑digit Same Property NOI growth in 2026, driven by lease‑up of vacant space and market‑rent re‑leases.
• Expected contribution from recent developments to FY‑2026 NOI: $4.9 M (St. Thomas) + $1.7 M (Calgary) + $2.6 M (Montreal) = $9.2 M.
• Normalized AFFO payout ratio projected to average below 100% for full FY‑2026.
• Distributions
• Cash distribution of $0.05333 per unit (annualized $0.64) payable April 15, 2026 (record date March 31) and May 15, 2026 (record date April 30).
• Earnings Call
• Conference call scheduled for Friday, March 6, 2026 at 10:00 AM EST; recording available until April 6, 2026.

Notable Quotes

“2025 was a transformative year for Nexus, and I am very pleased with the results.” – Kelly Hanczyk, CEO
“I am very excited with the progress that we have made, and I am confident that our strategy will continue to be rewarding for our stakeholders.” – Kelly Hanczyk, CEO

Materiality: Material – Positive (quarterly/annual earnings release with significant operational and financial updates).