Nexus Select Trust targets 9% DPU growth in FY27 on strong demand
Management conservatively guided 9% DPU growth but sees upside from consumption and leasing spreads.
What management said
- FY27 DPU guidance of INR 9.8-10 per unit, up 9% YoY
- 97% occupancy, 400bps ahead of the market
- 45% of gross rentals expiring over 4 years with 20% mark-to-market
- Eight-asset acquisition pipeline; Diamond Plaza Kolkata closing
- April-May consumption high double digit; management 'cautious' but confident
The brief
Management reported Q4 FY26 retail NOI growth of 11% YoY and achieved its FY26 distribution guidance of INR 9.1 per unit, a 9% YoY increase. Occupancy stands at 97%, 400bps ahead of the market. Management guided FY27 DPU of INR 9.8-10 per unit, implying 9% growth, driven by contractual escalations, 20% mark-to-market on expiring leases (45% of gross rentals over four years), and 8% consumption growth assumption. The company has a pipeline of eight assets under evaluation, including Diamond Plaza Kolkata closing. LTV is 18% with cost of debt at 7.3%. Despite global headwinds, consumption trends remained high double-digit in April and May. Management struck a cautious but confident tone, noting the guidance is conservative.
In their words
“We expect to distribute 9.8 to 10 rupees per unit in FY27.”— Dalip Sehgal — Executive Director and CEO
“We have actually been a little conservative. The original model is around 8 or 9% and the intent would still be to ballpark get into those numbers.”— Dalip Sehgal — Executive Director and CEO
“Consumption trends in April and May have remained healthy with strong high double digit growth.”— Dalip Sehgal — Executive Director and CEO
Summarised from the Nexus Select Trust Q4 2026 earnings-call transcript. View transcript.