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Bullboard - Stock Discussion Forum 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. The Company is focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada, and the ownership and management of its portfolio of properties... see more

TSX:NXR.UN - Post Discussion

Nexus Industrial REIT > Cap Rate to High
View:
Post by DanielDarden on Aug 15, 2023 12:07pm

Cap Rate to High

valuation is looking more interesting – NXR’s implied cap rate of 6.8% is 100bps wider to DIR.U (vs. 30 bps wider in early 2023), not unlike several other small cap REITs. (RBC)

My Take: RBC uses a cap rate of 6% in its’ report. Clearly they do not see rising cap rates in the industrial space which bodes well for future market prices. Most will see the value here eventually.
Comment by Defiance2050 on Aug 15, 2023 10:46pm
DIR is a tough comparable with as NXR is Canada and DIR has more of a Europe focused. DIR also has a larger portion of debt as fixed or hedged.  Interest rates being elevated don't help REITs performance, however as NXR has lower than market rent on several leases that unless demand for industrial craters, that rent will be higher in the future.  Hopefully management hedges and ...more  
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