Nexus Industrial REIT Reveals Financial Outcomes for the Second Quarter of 2025
Nexus Industrial REIT Announces Progress on Major Construction Projects
Nexus Industrial REIT, a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties, is making significant strides in its construction projects.
The REIT is currently constructing two substantial projects, both of which are expected to be completed in the third quarter of 2025. These projects include a 325,000 sq. ft. expansion in St. Thomas, ON, and a 115,000 sq. ft. new industrial small-bay complex in Calgary, AB.
In St. Thomas, ON, the 325,000 sq ft Dennis Rd. expansion project is underway for an existing tenant. The total development costs for this project are estimated at $54.9 million, and it is expected to earn a contractual going-in yield of 9.0% upon completion.
Meanwhile, in Calgary, AB, a 115,000 sq. ft. industrial building adjacent to an existing REIT property is being constructed. The total development costs for this project are $15.4 million, and it is projected to earn an going-in yield of approximately 11% upon completion.
These projects are progressing well and are expected to contribute positively to Nexus Industrial REIT’s financial performance.
The REIT has also reported other key financial details. Industrial Same Property NOI increased 2.8% year over year to $28.5 million, and over the past 12 months, NOI grew by 1.7%. The REIT increased the Unsecured Credit Facilities by $160 million and amended the maturity date, extending the term loan facility and the revolving facility.
The REIT also completed 395,412 sf of leasing at an average spread of 38% over expiring and in-place rents. NOI for the six months ended June 30, 2025 was $64.2 million or $3.1 million higher than the prior year. Normalized FFO per unit grew 5.6% compared to a year ago to $0.188.
However, the REIT reported a net loss of $7.6 million driven by fair value losses on Class B LP units and on investment properties. Two non-core industrial properties were sold for a total proceeds of $11.2 million.
The REIT anticipates mid-single digit Same Property NOI growth in its industrial portfolio for the full year. The REIT will make a cash distribution in the amount of $0.05333 per unit, representing $0.64 per unit on an annualized basis, payable October 15, 2025.
Management of the REIT will host a conference call at 10:00 AM Eastern Standard Time on Tuesday August 12, 2025 to review the financial results and operations. The REIT will also make a cash distribution in the amount of $0.05333 per unit, representing $0.64 per unit on an annualized basis, payable November 14, 2025.
[1] Source: Nexus Industrial REIT's Q2 2025 earnings release.
- The ongoing construction projects by Nexus Industrial REIT in St. Thomas, ON, and Calgary, AB, are significant developments within the real-estate industry in Canada.
- The Nexus Industrial REIT's two major construction projects, one in Toronto and the other in Calgary, are estimated to contribute to the REIT's financial performance upon completion.
- In addition to construction, Nexus Industrial REIT reported positive growth in its financial performance, including an increase in industrial Same Property NOI and Normalized FFO per unit.
- Despite a reported net loss for the Q2 2025, Nexus Industrial REIT anticipates mid-single digit Same Property NOI growth in its industrial portfolio for the full year, and remains committed to making cash distributions to its unitholders.
