Nexus Industrial REIT T.NXR.UN

Nexus improving industrial target

[hawk35]

Nexus had a 2021 target that 75% of income would come from industrial properties.  They exceeded this goal this week and are currently sitting at 80%.  They have now set a new short term target of achieving 90% of income coming from industrial.

How will they achieve this in the short term?  Desjardins hinted at the plan that is in place.  They plan to sell / dispose of 6 ord 7 office/retail properties for about $100 million.  These properties have desirable tenants like Cdn Tire, Shoppers Drugmart, IGA, Metro, Rona, Government of Canada, Sunlife).  The reit is also selling surplus land attached to a retail property for about $25 million dollars.  (The purchaser already has plans to build residential housing on this land.)  They expect this to happen late this year or early next year.

At the same time, they are looking at using the proceeds from the disposition of the retail / office properties to acquire additional industrial properties from the same London vendor they have a relationship with that is worth between $170 and $270 million.

This is what I really like about management.  They set targets and goals for themselves and back it up with a clear plan to achieve the goal.  They also protect their balance sheet that ensures the market and rating agencies continue to view the company favourably.