Nexus Select Trust Q2 FY27 results show 13% tenant sales growth and 8% NOI rise, revealing how India's retail REIT turns festive delays into resilience.
India’s organised retail spread spans roughly 186 million sq ft across 12 major markets, and Grade A mall vacancy has tightened to about 5%, from about 16% in 2021.
Quality space is scarce, with only 100-110 Grade A malls nationwide, mostly owned by developers whose core business is not running malls, leaving room for specialist operators.
Nexus Select Trust, Blackstone-backed and India’s first listed retail REIT, leads with 19 malls across 15 cities, about 11 million sq ft, and over 1,000 brands.
Developer-owned portfolios from Phoenix Mills, DLF and Prestige remain its main rivals, while new supply is rising in Delhi-NCR and Hyderabad.
In Q2 FY27, tenant sales rose 13% to INR 3,909 crore, while net operating income grew 8% to INR 504 crore and distribution reached INR 359 crore.
Leasing stayed firm too, with half a million sq ft re-leased at 25% higher rents, while occupancy held near 97% and lease expiry averages nearly five years.
This follows a record first half, 13 straight quarters of full distribution payout, and acquisitions such as Vega City in Bengaluru for INR 913 crore.
Its 2023 listing kick-started retail REITs, and it is now moving into development, partnering Runwal Enterprises on a 730,000 sq ft Dombivli mall worth over INR 900 crore.
The festive season shifted into Q3, footfalls grew 4% to 37 million, and jewellery, now 7% of sales, lifted H1 growth to 15% versus 13% without it.
Rising interest rates are the other watch point, yet management retained FY27 distribution guidance of INR 9.8 to INR 10 per unit, which can absorb another 25 basis point hike.
Trading density rose 14% to INR 1,986 per sq ft a month, showing every square foot is working harder, which is what tenants value most.
With debt headroom, a pipeline targeting 30 to 35 malls by FY30, and a festive quarter ahead, Nexus Select looks well placed to convert momentum into lasting growth.
Editor’s Note
Mall success is no longer about adding square feet; it is about earning more from each one. Nexus Select’s rent spreads and trading density show where value now sits.
Scarcity helps, but curation sustains. Brands queue for malls that deliver footfalls, and jewellery’s rise hints at categories mall operators can still unlock.
Operators who blend discipline with development, as Nexus is now doing, will shape Indian malls. The next festive quarter should be a fine proving ground.
India’s mall story is only getting started, and the best chapters belong to those who keep shoppers coming back.
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