The trust says that it has more industrial-weighted deals in the pipeline
Amid strong occupancy and collections despite pandemic pressures, Nexus Real Estate Investment Trust reported across-the-board increases during the first quarter.
Net operating income in Q1 2021 grew by 8.9% quarterly and by 8.1% annually to reach approximately $10.566 million. Same property net operating income had a more modest 0.2% annual increase to reach approximately $9.502 million.
The REIT also reported that it ended the first quarter with around $52 million in cash, as well as full availability of its $5 million credit facility. Its debt-to-total assets ratio was 45.8%, versus 48.2% during Q4 2020.
Occupancy as of the end of March was at 94%, compared to 93% on December 31, 2020.
Read more: Nexus REIT announces latest commercial asset acquisitions
Among the REIT’s chief milestones was its entry on to the Toronto Stock Exchange on February 01, with a 1-for-4 consolidation of outstanding units.
“The first quarter saw the REIT graduate to the TSX as well as the successful completion of our $35 million equity raise, which will allow us to acquire a number of industrial properties,” said Kelly Hanczyk, chief executive officer of Nexus REIT. “We are putting our equity to work and have announced entering into industrial asset purchase and sale agreements totalling approximately $144.9 million. Upon closing of these transactions, our industrial weighting will have grown to over 70% of our NOI.”
Hanczyk added that the REIT has additional in-progress deals, which will push the portfolio’s weight further towards being industrial.
“On April 01, we closed on a $103.5 million acquisition in London, Ontario with $65.6 million of the purchase price being satisfied in units,” Hanczyk said. “One of the purchase and sale contracts we recently entered into is with the vendors of the London, Ontario portfolio, and we’re quite pleased to see that relationship giving us access to another unmarketed industrial acquisition opportunity. This relationship has the potential to provide a very significant pipeline of acquisition opportunities for the REIT.”
