Nexus Industrial REIT Announces Q2 2023 Results and August and September Distrib… – Press Release

TORONTO, Aug. 11, 2023 (GLOBE NEWSWIRE) — Nexus Industrial REIT (the “REIT”) NXR announced today its results for the quarter ended June 30, 2023.


“During the quarter, we continued with the high grading of our portfolio, acquiring two industrial properties in London, Ontario totaling 568,923 square feet, and a 191,878 square foot industrial property in Laval, Quebec,” commented Kelly Hanczyk, the REIT’s Chief Executive Officer. “On July 4th, we acquired a 141,534 square foot industrial property in Burlington, Ontario. The Burlington and Laval properties are brand new construction class A buildings with embedded annual rental steps averaging just over 4%. Market rents for one of the London properties acquired are 175% higher than in place rents with the lease expiring in 2025. We also completed the sale of our Victoriaville, Quebec retail property in the quarter, which will push our industrial weighting by NOI to over 90% for Q3. Our Same Property NOI increased by 4.3% or $0.9 million as compared to Q2 2022. While we will be very selective in evaluating further acquisition opportunities going forward, we are progressing well with our high-yielding development projects, having broken ground at two sites. Also in the quarter, we acquired an 18-acre parcel of land in St. Thomas, Ontario, adjacent to another property we own, and we have signed an expansion agreement with our existing tenant to construct an additional 70,000 sq. ft. of GLA. These projects are expected to deliver very attractive yields and to generate sizeable NAV, FFO and AFFO growth.”

Summary of Results

(In thousands of Canadian dollars, except per unit amounts) Three months ended
June 30,
Six months ended
June 30,
  2023 2022 2023 2022
Financial Results $ $ $ $
Property revenues 38,419 34,142 75,895 65,841
Net operating income (NOI) 27,689 23,962 53,417 45,986
Net income 77,222 79,640 80,939 97,704


Financial Highlights        
Funds from operations (FFO) (1) 16,775   15,700   33,223   30,424  
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