Nexus Industrial REIT T.NXR.UN

Alternate Symbol(s): EFRTF

Nexus Industrial REIT is a Canada-based open-ended real estate investment trust. The Company and its subsidiaries own and operate commercial real estate properties across Canada. It has a portfolio of industrial, office and retail properties in Canada, with a focus on acquiring and owning industrial properties. The Company owns a portfolio of 115 properties (including two properties held for development, in which the Company has an 80% interest) comprising approximately 12.1 million square feet of gross leasable area. Its industrial properties include 11250 - 189 STREET, 3501 GIFFEN ROAD NORTH, 10774 - 42 STREET SE, 261185 WAGON WHEEL WAY, 502-25 AVENUE and others. Its office properties include 127-145 RUE SAINT-PIERRE, 360 RUE NOTRE-DAME WEST, 329 RUE DE LA COMMUNE WEST, 353 RUE SAINT NICOLAS, 410 RUE SAINT NICOLAS and others. Its retail properties include 2000 BOULEVARD LOUIS-FRECHETTE, 250 BOULEVARD FISET AND 240 RUE VICTORIA, 340 RUE BELVEDERE SOUTH and others.

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Nexus Industrial REIT > National Bank Upgrade

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Comment by Joe455on Apr 29, 2022 1:21pm

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Post# 34642919

RE:RE:National Bank Upgrade

SusanBolland wrote:

retiredcf wrote:
Heading into first-quarter earnings season in the Canadian real estate sector, National Bank Financial analysts Matt Kornack and Tal Woolley continue to see the highest average total returns in their industrial, seniors/healthcare and multifamily coverage universes, pointing to total returns of 24 per cent, 22 per cent and 21 per cent, respectively.

“Our expectations are stronger for the names that are better positioned to capture inflation through rental uplifts,” they said. “We see average total returns of 14 per cent for Retail coverage and 10 per cent for Office, which still have to resolve questions around growth/occupancy as COVID wears on. Our Special Situations coverage also offers some interesting opportunities in selfstorage, single-family housing and manufactured housing (again, all quasi-residential and quasi-industrial asset classes).”

The analyst see Industrial sector, bringing the highest average total return, as “one of the best inflation hedges across the real estate landscape as rental rates continue to rise with essentially no market vacancy” and see it “particularly pronounced” in the largest urban areas.

“Lease term remains an impediment to a full pass-through of MTM [mark-to-market] opportunities but needless to say, the widening spreads provide years of outsized growth prospects as increasingly annual rent escalators are moving higher,” they said. “Landlords are also capable of pushing down costs and capex items that in less frothy markets the tenant would likely try to skirt. In this context, we held target prices flat despite rising bond yields but acknowledge that multiple expansion from here is going to be challenging (absent a pullback in bond yields, which is entirely possible as the threat of a 2023 recession looms).”

They made these changes:

Canadian Apartment Properties REIT (,“outperform”) to $62.25 from $70.50. Average: $67.

European Residential REIT ( “outperform”) to $5.50 from $5.60. Average: $5.73.

InterRent REIT ( “outperform”) to $17 from $19. Average: $19.58.

Nexus Industrial REIT ( “outperform”) to $15 from $14.25. Average: $14.86.

great info, thanks