{"success":true,"data":{"pressRelease":{"id":"30679","rtpr_id":"nGNX96ypc9","ticker":"NXR_U","exchange":"TSX","all_tickers":["NXR_U"],"title":"Nexus Industrial REIT Announces First Quarter 2026 Financial Results","author":"Globe Newswire","published_at":"2026-05-11T23:10:39.284Z","article_body":"Net Income of $32.2 million; NOI((1)) growth of 5.4% to $33.8 million;\nNormalized AFFO payout ratio((1)) of 96.6%\n\nTORONTO, May 11, 2026 (GLOBE NEWSWIRE) -- Nexus Industrial REIT (the\n“REIT”) (TSX: NXR.UN) announced today its results for the first quarter\nended March 31, 2026.\n\n“In the first quarter we advanced our journey as Canada’s industrial\nbuilding partner, delivering Normalized AFFO payout ratio((1)) of 96.6%, a\nmeaningful improvement over recent quarters and a significant step toward our\n2026 guidance of delivering a ratio below 100% for the full year,” said\nKelly Hanczyk, CEO of Nexus Industrial REIT.\n\n“We also demonstrated the strength of our balance sheet, achieving an\ninvestment grade credit rating and completing an inaugural $500 million bond\nissuance in April, adding financial flexibility, and reducing our cost of\ncapital. This accomplishment marks a new stage in our evolution and is one\nthat I am particularly proud of” concluded Mr. Hanczyk.\n\nFirst Quarter 2026 Highlights:\n* Sold an industrial property located in Calgary, AB for a price of $8.5\nmillion.\n* In-place and committed industrial occupancy rate of 95%, representing a 100\nbasis point decrease compared to December 31, 2025.\n* Completed 41,177 sq. ft. of leasing at an average spread of 32% over\nexpiring and in-place rents.\n* Net income was $32.2 million driven by NOI((1)) of $33.8 million and fair\nvalue adjustments (gains) of $18.9 million, partially offset by finance\nexpense, general and administrative expenses and loss on disposal of\ninvestment properties.\n* NOI((1)) increased by 5.4% versus a year ago to $33.8 million primarily\nattributed to NOI((1)) generated from completed developments and newly\nacquired industrial properties, despite selling 19 legacy retail, office, and\nindustrial properties in 2025 and one industrial property in the first quarter\nof 2026.\n* Industrial Same Property NOI((1)) increased 1.0% versus a year ago to $29.8\nmillion.\n* Normalized FFO((1)) per unit decreased $0.005 versus a year ago to $0.182\nand Normalized AFFO((1)) per unit increased $0.008 versus a year ago to\n$0.162.\n* Normalized AFFO payout ratio((1)) improved by 7.5% to 96.6% as compared to\nthe same period in the prior year.\n* Unitholders' equity increased by $21.2 million to $1.1 billion or $15.38 per\nunit. NAV per unit((1)) of $13.29 increased $0.07 or 0.5% versus December 31,\n2025.\n((1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\nSubsequent events:\n* On April 14, 2026, the REIT issued $300.0 million principal amount of 4.236%\nSeries A senior unsecured debentures maturing on April 14, 2029 and $200.0\nmillion principal amount of 4.641% Series B senior unsecured debentures\nmaturing on April 14, 2031. Interest on the debentures is payable\nsemi-annually in arrears, on April 14 and October 14 of each year, commencing\non October 14, 2026. Net of financing fees, the REIT received $498.5 million\nand used the net proceeds to pay down existing indebtedness. \n\n\n* On April 17, 2026, the REIT paid off and retired the unsecured term loan\nfacility of $200.0 million (US$145.4 million) and partially paid down the\nunsecured revolving facility by $292.0 million (US$212.4 million). The REIT\nunwound the related cross-currency swaps with a notional value of $492.0\nmillion and closed interest rates swaps with a notional value of $317.0\nmillion.\nSummary of Results\n\n (In thousands of Canadian dollars, except per unit amounts) Three months ended March 31, \n 2026 2025 \n $ $ \n FINANCIAL INFORMATION \n Operating Results \n Property revenues 46,019 44,754 \n NOI ((1)) 33,807 32,090 \n Net income and comprehensive income 32,176 33,151 \n Adjusted EBITDA (LTM) ((1)) 121,276 121,151 \n \n FFO ((1)) 17,325 17,043 \n Normalized FFO ((1) ) 17,714 17,580 \n AFFO ((1)) 15,302 14,397 \n Normalized AFFO ((1) ) 15,691 14,478 \n Distributions declared ((2)) 15,160 15,073 \n Same Property NOI ((1)) 30,097 30,016 \n Industrial Same Property NOI ((1)) 29,783 29,484 \n \n Weighted average units outstanding (000s): \n Basic ((3)) 97,069 94,203 \n Diluted ((3)) 97,421 94,477 \n \n Per unit amounts: \n Distributions per unit – basic ((2) (3)) 0.160 0.160 \n Distributions per unit – diluted ( (2) (3)) 0.160 0.160 \n \n Normalized FFO per unit – basic ((1) (3)) 0.182 0.187 \n Normalized FFO per unit – diluted ( (1) (3)) 0.182 0.186 \n \n Normalized AFFO per unit – basic ((1) (3)) 0.162 0.154 \n Normalized AFFO per unit – diluted ((1) (3)) 0.161 0.153 \n \n AFFO payout ratio ((1) (2)) 99.1 % 104.7 % \n Normalized AFFO payout ratio – basic ((1) (2)) 96.6 % 104.1 % \n Normalized AFFO payout ratio – diluted ((1) (2)) 96.9 % 104.6 % \n \n Same Property NOI Growth % ((1)) 0.3 % 5.9 % \n Industrial Same Property NOI Growth % ((1)) 1.0 % 6.6 % \n\n((1)   This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\n((2)   Includes distributions payable to holders of Class B LP Units which\nare accounted for as finance expense in the consolidated financial\nstatements.)\n\n((3)   Weighted average number of units includes Class B LP Units.)\n\n \n March 31, December 31, \n 2026 2025 \n (In thousands of Canadian dollars, unless stated otherwise) $ $ \n PORTFOLIO INFORMATION \n Total Portfolio \n Number of investment properties ((2)) 88 89 \n Investment properties fair value (excludes assets held for sale) 2,520,712 2,506,423 \n Gross leasable area (“GLA”) (in millions of sq. ft.) (at the REIT's ownership interest) 12.3 12.4 \n Industrial occupancy rate – in-place and committed (year-end) ((3)) 95 % 96 % \n Weighted average lease term (“WALT”) (years) 6.9 6.9 \n Industrial WALT (years) 6.9 6.9 \n Estimated spread between industrial portfolio market and in-place rents 15.8 % 18.7 % \n \n FINANCING AND CAPITAL INFORMATION \n Financing \n Net debt ((1)) 1,328,891 1,307,119 \n Total Indebtedness Ratio ((1)) 49.5 % 49.3 % \n Net Debt to Adjusted EBITDA ((1)) 11.0 10.9 \n Adjusted Net Debt to Adjusted EBITDA ((1)) 10.5 10.5 \n Debt service coverage ratio (times) 1.72 1.70 \n Secured Indebtedness Ratio 21.4 % 22.4 % \n Unencumbered investment properties as a percentage of investment properties 50.3 % 49.7 % \n Total assets 2,687,057 2,650,360 \n Cash 17,876 6,111 \n Capital \n Total equity (per consolidated financial statements) 1,104,484 1,083,289 \n Total equity (including Class B LP Units) 1,290,727 1,282,925 \n Total number of Units (in thousands) ((4)) 97,086 97,022 \n NAV per unit ((1)) 13.29 13.22 \n\n((1)   This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails. )\n((2)   Includes three properties (four properties - December 31, 2025)\nclassified as assets held for sale, and one property held for development in\nwhich the REIT has an 80% interest.)\n((3)   Includes committed new leases for future occupancy.)\n((4)   Includes Class B LP Units.)\n\n\nNet income\n\nNet income for the three months ended March 31, 2026 was $32.2 million or $1.0\nmillion lower as compared to the same period in 2025, primarily due to an\ndecrease in fair value adjustments of investment properties of $6.8 million, a\ndecrease in Class B LP Units fair value adjustments of $5.6 million, higher\nfinance expenses by $0.7 million, lower foreign exchange expenses by $0.7\nmillion, a higher loss on disposal of investment properties of $0.2 million,\nand a higher general and administrative expense of $0.2 million, partially\noffset by an increase in fair value adjustments of derivative financial\ninstruments of $11.3 million, a higher NOI of $1.7 million, and a higher\nIncentive units fair value adjustment of $0.2 million.\n\nNet operating income\n\nNOI for the three months ended March 31, 2026 was $33.8 million or $1.7\nmillion higher as compared to the same period in 2025, which was primarily due\nto $1.3 million relating to completed developments and expansions, $0.7\nmillion from acquisitions of industrial income producing properties that\nclosed subsequent to March 31, 2025, $0.6 million increase from non-recurring\nlease terminations and tenant reimbursed capital improvements, and $0.4\nmillion relating to amortization of tenant improvements and leasing costs that\nwas ceased during the three months ended March 31, 2026 as a result of change\nin application of accounting methodology, partially offset by a lower NOI of\n$0.6 million relating to straight-line rent adjustments attributed to changes\nin current lease arrangements, and $0.6 million relating to dispositions\ncompleted since Q1 2025.\n\nFair value adjustment of investment properties\n\nThe fair value adjustment (gain) on investment properties for the three months\nended March 31, 2026 totaled $2.1 million. The REIT engaged external\nappraisers to value properties totaling $141.1 million during the quarter.\nOverall, the fair value gain recorded for the REIT’s portfolio primarily\nconsists of a $29.8 million increase resulting from changes in stabilized NOI,\npartially offset by a $27.4 million decrease due to adjustments to\ncapitalization rates, and a $0.3 million decrease resulting from a fair value\nadjustment on a disposal during the period.\n\nOutlook\n\nThe REIT is focused on delivering total unitholder return through profitable\nlong-term growth, and by pursuing its strategy as a Canada-focused pure-play\nindustrial REIT.\n\nFor 2026, the REIT anticipates mid-single digit Same Property NOI((1)) growth\nin its industrial portfolio. The expected Same Property NOI((1)) growth is\nprimarily attributed to the lease-up of vacant space, and releasing space at\nmarket rents that exceed expiring rents, thereby continuing to benefit from\npositive spreads between market rental rates and the REIT's in-place rental\nrates.\n\nIn 2026, the REIT expects to benefit from:\n* the 325,000 sq. ft. expansion project at St. Thomas, ON for an existing\ntenant that was completed in Q3 2025, which is contributing $4.9 million in\nannual stabilized NOI((1)), representing a contractual going-in yield of 9.0%\non total development costs of $55.1 million,\n* the 115,000 sq. ft. small-bay industrial building that was constructed in Q3\n2025 adjacent to an existing building that the REIT owns in Calgary, AB,\nwhich, once stabilized, is expected to earn a yield of 11.0% on total\ndevelopment costs of $14.8 million, and\n* the acquisition of two industrial properties in Montreal and Longueuil, QC\nin November 2025 totalling 282,721 sq. ft., that are expected to contribute\n$2.6 million in annual stabilized NOI((1)), representing a going-in yield of\n6.6% on the purchase price of $40.1 million.\nThe normalized AFFO payout ratio((1)) for the three months ended March 31,\n2026 was 96.6%. The REIT believes that the current distributions are\nsustainable, and anticipates the normalized AFFO payout ratio((1)) to average\nbelow 100% for the full fiscal year in 2026.\n\n((1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\nEarnings Call\n\nManagement of the REIT will host a conference call at 10:00 AM Eastern\nStandard Time on Tuesday May 12, 2026, to review the financial results and\noperations.\n\nTo participate in the conference call, please dial 1-647-846-8414 or\n1-833-752-3601 (toll free in Canada and the US) at least five minutes prior to\nthe start time and ask to join the Nexus Industrial REIT conference call.\n\nA recording of the conference call will be available until June 12, 2026. To\naccess the recording, please dial 1-412-317-0088 or 1-855-669-9658 (toll free\nin Canada and the US) and enter access code 9157568.\n\nMay and June Distributions\n\nThe REIT will make a cash distribution in the amount of $0.05333 per unit,\nrepresenting $0.64 per unit on an annualized basis, payable June 15, 2026, to\nunitholders of record as of May 29, 2026.\n\nThe REIT will also make a cash distribution in the amount of $0.05333 per\nunit, representing $0.64 per unit on an annualized basis, payable July 15,\n2026, to unitholders of record as of June 30, 2026.\n\nAnnual Meeting Voting Results\n\nEach of the matters set out in the REIT’s management information circular\ndated March 30, 2026 (the “Circular”) for the annual meeting of\nunitholders held on May 11, 2026 (the “Meeting”) was approved by the\nrequisite majority of unitholders, and each of the trustee nominees listed in\nthe Circular was elected as a trustee of the REIT. Voting results for the\nindividual trustees are as follows:\n\n Nominee Number of Votes For Percentage of Votes For Number of Votes Withheld Percentage of Votes Withheld \n Floriana Cipollone 39,117,151 99.605% 155,068 0.395% \n Bradley Cutsey 39,094,541 99.548% 177,678 0.452% \n Kelly C. Hanczyk 39,159,055 99.712% 113,164 0.288% \n Daniel M. Oberste 37,957,629 96.653% 1,314,590 3.347% \n Ben Rodney 32,784,443 83.480% 6,487,776 16.520% \n Mary Vitug 32,199,652 81.991% 7,072,567 18.009% \n\nFinal results on all matters considered at the Meeting are reported in the\nReport of Voting Results as filed on SEDAR (www.sedarplus.ca).\n\nAbout Nexus Industrial REIT\n\nNexus is a growth-oriented real estate investment trust focused on increasing\nunitholder value through the acquisition of industrial properties located in\nprimary and secondary markets in Canada, and the ownership and management of\nits portfolio of properties. The REIT currently owns a portfolio of 88\nproperties (including one property held for development in which the REIT has\nan 80% interest) comprising approximately 12.3 million square feet of gross\nleasable area. The REIT has approximately 97,089,000 voting units issued and\noutstanding, including approximately 72,169,000 REIT Units and approximately\n24,920,000 Class B LP Units of subsidiary limited partnerships of Nexus, which\nare convertible to REIT Units on a one-to-one basis.\n\nNon-IFRS Measures\n\nInformation in this news release is a select summary of results. This news\nrelease should be read in conjunction with the MD&A and the Trust's\nconsolidated financial statements and the accompanying notes for the three\nmonths ended March 31, 2026 (the “Financial Statements”). The Financial\nStatements are prepared in accordance with IFRS accounting standards as issued\nby the IASB, however, included in the tables above and elsewhere in this news\nrelease are non-IFRS financial measures or non-IFRS ratios which do not have a\nstandardized meaning prescribed under generally accepted accounting principles\n(“GAAP”) in accordance with IFRS and that should not be construed as an\nalternative to net income / loss or other measures of financial performance\ncalculated in accordance with IFRS and may not be comparable to similar\nmeasures as reported by other issuers. A definition of each non-IFRS financial\nmeasure or ratio used herein and an explanation of management's reasons as to\nwhy it believes the measure is useful to investors are incorporated by\nreference and can be found on page 1 in the REIT’s Management’s Discussion\nand Analysis for the three months ended March 31, 2026, available on SEDAR+ at\nwww.sedarplus.ca and on the REIT’s website under Investor Relations. See\nAppendix A of this earnings release for a reconciliation of the non-IFRS\nfinancial measures to the primary financial statement measures.\n\nForward Looking Statements\n\nCertain statements contained in this news release constitute forward-looking\nstatements which reflect the REIT’s current expectations and projections\nabout future results, including statements under the heading \"Outlook\" and\nregarding the REIT's expectations relating to growth in NOI, benefits from\ndevelopments and the sustainability of its distributions. Often, but not\nalways, forward-looking statements can be identified by the use of words such\nas “plans”, “expects” or “does not expect”, “is expected”,\n“estimates”, “intends”, “anticipates” or “does not\nanticipate”, or “believes”, or variations of such words and phrases or\nstate that certain actions, events or results “may”, “could”,\n“would”, “might” or “will” be taken, occur or be achieved.\nForward-looking statements involve known and unknown risks, uncertainties and\nother factors which may cause the actual results, performance or achievements\nof the REIT to be materially different from any future results, performance or\nachievements expressed or implied by the forward-looking statements. Actual\nresults and developments are likely to differ, and may differ materially, from\nthose expressed or implied by the forward-looking statements contained in this\nnews release. Such forward-looking statements are based on a number of\nassumptions that may prove to be incorrect.\n\nWhile the REIT anticipates that subsequent events and developments may cause\nits views to change, the REIT specifically disclaims any obligation to update\nthese forward-looking statements except as required by applicable law. These\nforward-looking statements should not be relied upon as representing the\nREIT’s views as of any date subsequent to the date of this news release.\nThere can be no assurance that forward-looking statements will prove to be\naccurate, as actual results and future events could differ materially from\nthose anticipated in such statements. Accordingly, readers should not place\nundue reliance on forward-looking statements. The factors identified above are\nnot intended to represent a complete list of the factors that could affect the\nREIT.\n\nFor further information please contact:\n\nKelly C. Hanczyk, CEO at (416) 906-2379 or\nMike Rawle, CFO at (647) 823-1381\n\nAPPENDIX A – NON-IFRS FINANCIAL MEASURES\n\n (In thousands of Canadian dollars, except per unit amounts) Three months ended March 31, \n 2026 2025 Change \n FFO ((6)) $ $ $ \n \n Net income and comprehensive income 32,176 33,151 (975 ) \n Adjustments: \n Loss on disposal of investment properties 309 85 224 \n Fair value adjustments (18,855 ) (19,727 ) 872 \n Adjustments for equity accounted joint venture ((1)) 76 76 — \n Distributions on Class B LP Units expensed 3,672 3,713 (41 ) \n Amortization of tenant improvements and leasing costs — 366 (366 ) \n Lease principal payments (27 ) (26 ) (1 ) \n Amortization of right-of-use assets 31 30 1 \n Net effect of unrealized foreign exchange on USD debt and related hedges (57 ) (625 ) 568 \n Funds from operations (FFO) ((6)) 17,325 17,043 282 \n Weighted average units outstanding (000s) - basic ((3)) 97,069 94,203 2,866 \n FFO per unit – basic ((6)) 0.178 0.181 (0.003 ) \n \n FFO ((6)) 17,325 17,043 282 \n Add: Non-recurring personnel transition costs 220 107 113 \n Add: Non-recurring adjustments from asset dispositions ((4)) 43 472 (429 ) \n Add: Other one-time adjustments ((5)) 126 (42 ) 168 \n Normalized FFO ((6)) 17,714 17,580 134 \n Weighted average units outstanding (000s) - basic ((3)) 97,069 94,203 2,866 \n Normalized FFO per unit – basic ((6)) 0.182 0.187 (0.005 ) \n \n \n (In thousands of Canadian dollars, except per unit amounts) Three months ended March 31, \n 2026 2025 Change \n AFFO ((6)) $ $ $ \n \n FFO ((6)) 17,325 17,043 282 \n Adjustments: \n Straight-line adjustments, ground lease and rent (423 ) (1,046 ) 623 \n Capital reserve ((2)) (1,600 ) (1,600 ) — \n Adjusted funds from operations (AFFO) ((6)) 15,302 14,397 905 \n Weighted average units outstanding (000s) Basic ((3)) 97,069 94,203 2,866 \n AFFO per unit – basic ((6)) 0.158 0.153 0.005 \n Distributions declared 15,160 15,073 87 \n AFFO payout ratio - basic ((6)) 99.1 % 104.7 % (5.6 )% \n \n \n AFFO ((6)) 15,302 14,397 905 \n Add: Non-recurring personnel transition costs 220 107 113 \n Add: Non-recurring adjustments from asset dispositions ((4)) 43 16 27 \n Add: Other one-time adjustments ((5)) 126 (42 ) 168 \n Normalized AFFO ((6)) 15,691 14,478 1,213 \n Weighted average units outstanding (000s) Basic ((3)) 97,069 94,203 2,866 \n Normalized AFFO per unit – basic ((6)) 0.162 0.154 0.008 \n Distributions declared 15,160 15,073 87 \n Normalized AFFO payout ratio - basic ((6)) 96.6 % 104.1 % (7.5 )% \n\n\n\n ((1)) (Adjustment for equity accounted joint venture relates to a fair value adjustment of swaps in place at the joint venture to swap floating rate bankers’ acceptance rates to a fixed rate and a fair value adjustment of the joint venture investment property.) \n ((2)) (Capital reserve includes maintenance capital expenditures, tenant improvements and leasing costs. Reserve amounts are established with reference to building condition reports, appraisals, and internal estimates of tenant renewal, tenant improvements and leasing costs. The REIT believes that a reserve is more appropriate given the fluctuating nature of capital expenditures.) \n ((3)) (Weighted average number of units includes the Class B LP Units.) \n ((4)) (These adjustments represent one-time balance sheet write-offs, early mortgage repayment charges, and other costs associated with the disposals made during the period.) \n ((5)) (The adjustments are primarily related to unrealized foreign exchange losses (gains) on transactions relating to deferred purchase consideration and other one-time adjustments.) \n ((6)) (This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.) \n\n\n\nSAME PROPERTY RESULTS\n\n (In thousands of Canadian dollars) \n Three months ended March 31, \n 2026 2025 Change \n $ $ $ \n \n Property revenues 46,019 44,754 1,265 \n Property expenses (12,212 ) (12,664 ) 452 \n NOI ((1)) 33,807 32,090 1,717 \n Add/(Deduct): \n Amortization of tenant improvements and leasing costs — 360 (360 ) \n Straight-line adjustments of rent (422 ) (1,045 ) 623 \n Development and expansion (1,287 ) — (1,287 ) \n Acquisitions (665 ) — (665 ) \n Disposals (74 ) (718 ) 644 \n Termination fees and tenant reimbursed capital improvements (1,262 ) (671 ) (591 ) \n Same Property NOI ((1)) 30,097 30,016 81 \n \n Industrial Same Property NOI ((1)) 29,783 29,484 299 \n\n\n\n ((1)) (This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.) \n\n \n\nADJUSTED EBITDA\n\n (In thousands of Canadian dollars) Trailing twelve months ended March 31, \n 2026 2025 Change \n $ $ $ \n \n Net income 58,573 80,362 (21,789 ) \n Add (deduct): \n Net interest expense 53,866 55,049 (1,183 ) \n Distributions on Class B LP Units 14,809 15,053 (244 ) \n Fair value adjustments ((1)) (5,124 ) (30,593 ) 25,469 \n Amortization expense ((1)(2)) (3,608 ) (3,151 ) (457 ) \n Loss on disposal of investment properties 921 1,540 (619 ) \n Unrealized foreign exchange (gain) loss (34 ) 123 (157 ) \n Income from development property 1,605 2,374 (769 ) \n Non-recurring personnel transition costs 220 191 29 \n Non-recurring costs related to asset dispositions 48 203 (155 ) \n Adjusted EBITDA ((3)) 121,276 121,151 125 \n\n\n\n ((1)) (Includes equity accounted investments adjustments.) \n ((2)) (Includes amortization of straight line rent, tenant improvements, and leasing commissions.) \n ((3)) (This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.) \n\nNAV per unit\n\n (In thousands of Canadian dollars, except per unit amounts) March 31, December 31, \n 2026 2025 \n NAV per unit ((1)) $ $ \n \n Total assets 2,687,057 2,650,360 \n Less: Total liabilities (1,582,573 ) (1,567,071 ) \n Total unitholders equity 1,104,484 1,083,289 \n Add: Class B LP Units 186,243 199,636 \n NAV ((1)) 1,290,727 1,282,925 \n \n Units outstanding (000s) – basic: \n REIT Units 71,816 71,752 \n Class B LP Units 25,270 25,270 \n 97,086 97,022 \n NAV per unit – basic ((1)) 13.29 13.22 \n \n\n((1)   This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\nTOTAL INDEBTEDNESS RATIO\n\n (In thousands of Canadian dollars) March 31, December 31, \n 2026 2025 \n Total Indebtedness Ratio ((1)) $ $ \n Current and non-current: \n Mortgages payable 544,227 563,231 \n Credit facilities 772,569 731,019 \n Lease liabilities 10,586 10,613 \n Liabilities associated with assets held for sale 19,385 8,367 \n Total indebtedness ( (1)) 1,346,767 1,313,230 \n less: unrestricted cash (17,876 ) (6,111 ) \n Net debt 1,328,891 1,307,119 \n Total assets 2,687,057 2,650,360 \n Total Indebtedness Ratio ( (1)) 49.5 % 49.3 % \n \n\n((1)   This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\nADJUSTED NET DEBT\n\n (In thousands of Canadian dollars) March 31, December 31, \n 2026 2025 \n $ $ \n Current and non-current: \n Mortgages payable 544,227 563,231 \n Credit facilities 772,569 731,019 \n Lease liabilities 10,586 10,613 \n Liabilities associated with assets held for sale 19,385 8,367 \n Total indebtedness ((1)) 1,346,767 1,313,230 \n Less: Unrestricted cash (17,876 ) (6,111 ) \n Less: Additions to properties under development (50,801 ) (44,943 ) \n Adjusted net debt ((1)) 1,278,090 1,262,176 \n \n\n((1)   This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/37a42313-4564-47c3-beef-d79b14aa8a03)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX96ypc9","title":"Nexus Industrial REIT Announces First Quarter 2026 Financial Results","author":"Globe Newswire","ticker":"NXR_U","created":"2026-05-11T23:10:39.284Z","tickers":["NXR_U"],"exchange":"TSX","article_body":"Net Income of $32.2 million; NOI((1)) growth of 5.4% to $33.8 million;\nNormalized AFFO payout ratio((1)) of 96.6%\n\nTORONTO, May 11, 2026 (GLOBE NEWSWIRE) -- Nexus Industrial REIT (the\n“REIT”) (TSX: NXR.UN) announced today its results for the first quarter\nended March 31, 2026.\n\n“In the first quarter we advanced our journey as Canada’s industrial\nbuilding partner, delivering Normalized AFFO payout ratio((1)) of 96.6%, a\nmeaningful improvement over recent quarters and a significant step toward our\n2026 guidance of delivering a ratio below 100% for the full year,” said\nKelly Hanczyk, CEO of Nexus Industrial REIT.\n\n“We also demonstrated the strength of our balance sheet, achieving an\ninvestment grade credit rating and completing an inaugural $500 million bond\nissuance in April, adding financial flexibility, and reducing our cost of\ncapital. This accomplishment marks a new stage in our evolution and is one\nthat I am particularly proud of” concluded Mr. Hanczyk.\n\nFirst Quarter 2026 Highlights:\n* Sold an industrial property located in Calgary, AB for a price of $8.5\nmillion.\n* In-place and committed industrial occupancy rate of 95%, representing a 100\nbasis point decrease compared to December 31, 2025.\n* Completed 41,177 sq. ft. of leasing at an average spread of 32% over\nexpiring and in-place rents.\n* Net income was $32.2 million driven by NOI((1)) of $33.8 million and fair\nvalue adjustments (gains) of $18.9 million, partially offset by finance\nexpense, general and administrative expenses and loss on disposal of\ninvestment properties.\n* NOI((1)) increased by 5.4% versus a year ago to $33.8 million primarily\nattributed to NOI((1)) generated from completed developments and newly\nacquired industrial properties, despite selling 19 legacy retail, office, and\nindustrial properties in 2025 and one industrial property in the first quarter\nof 2026.\n* Industrial Same Property NOI((1)) increased 1.0% versus a year ago to $29.8\nmillion.\n* Normalized FFO((1)) per unit decreased $0.005 versus a year ago to $0.182\nand Normalized AFFO((1)) per unit increased $0.008 versus a year ago to\n$0.162.\n* Normalized AFFO payout ratio((1)) improved by 7.5% to 96.6% as compared to\nthe same period in the prior year.\n* Unitholders' equity increased by $21.2 million to $1.1 billion or $15.38 per\nunit. NAV per unit((1)) of $13.29 increased $0.07 or 0.5% versus December 31,\n2025.\n((1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\nSubsequent events:\n* On April 14, 2026, the REIT issued $300.0 million principal amount of 4.236%\nSeries A senior unsecured debentures maturing on April 14, 2029 and $200.0\nmillion principal amount of 4.641% Series B senior unsecured debentures\nmaturing on April 14, 2031. Interest on the debentures is payable\nsemi-annually in arrears, on April 14 and October 14 of each year, commencing\non October 14, 2026. Net of financing fees, the REIT received $498.5 million\nand used the net proceeds to pay down existing indebtedness. \n\n\n* On April 17, 2026, the REIT paid off and retired the unsecured term loan\nfacility of $200.0 million (US$145.4 million) and partially paid down the\nunsecured revolving facility by $292.0 million (US$212.4 million). The REIT\nunwound the related cross-currency swaps with a notional value of $492.0\nmillion and closed interest rates swaps with a notional value of $317.0\nmillion.\nSummary of Results\n\n (In thousands of Canadian dollars, except per unit amounts) Three months ended March 31, \n 2026 2025 \n $ $ \n FINANCIAL INFORMATION \n Operating Results \n Property revenues 46,019 44,754 \n NOI ((1)) 33,807 32,090 \n Net income and comprehensive income 32,176 33,151 \n Adjusted EBITDA (LTM) ((1)) 121,276 121,151 \n \n FFO ((1)) 17,325 17,043 \n Normalized FFO ((1) ) 17,714 17,580 \n AFFO ((1)) 15,302 14,397 \n Normalized AFFO ((1) ) 15,691 14,478 \n Distributions declared ((2)) 15,160 15,073 \n Same Property NOI ((1)) 30,097 30,016 \n Industrial Same Property NOI ((1)) 29,783 29,484 \n \n Weighted average units outstanding (000s): \n Basic ((3)) 97,069 94,203 \n Diluted ((3)) 97,421 94,477 \n \n Per unit amounts: \n Distributions per unit – basic ((2) (3)) 0.160 0.160 \n Distributions per unit – diluted ( (2) (3)) 0.160 0.160 \n \n Normalized FFO per unit – basic ((1) (3)) 0.182 0.187 \n Normalized FFO per unit – diluted ( (1) (3)) 0.182 0.186 \n \n Normalized AFFO per unit – basic ((1) (3)) 0.162 0.154 \n Normalized AFFO per unit – diluted ((1) (3)) 0.161 0.153 \n \n AFFO payout ratio ((1) (2)) 99.1 % 104.7 % \n Normalized AFFO payout ratio – basic ((1) (2)) 96.6 % 104.1 % \n Normalized AFFO payout ratio – diluted ((1) (2)) 96.9 % 104.6 % \n \n Same Property NOI Growth % ((1)) 0.3 % 5.9 % \n Industrial Same Property NOI Growth % ((1)) 1.0 % 6.6 % \n\n((1)   This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\n((2)   Includes distributions payable to holders of Class B LP Units which\nare accounted for as finance expense in the consolidated financial\nstatements.)\n\n((3)   Weighted average number of units includes Class B LP Units.)\n\n \n March 31, December 31, \n 2026 2025 \n (In thousands of Canadian dollars, unless stated otherwise) $ $ \n PORTFOLIO INFORMATION \n Total Portfolio \n Number of investment properties ((2)) 88 89 \n Investment properties fair value (excludes assets held for sale) 2,520,712 2,506,423 \n Gross leasable area (“GLA”) (in millions of sq. ft.) (at the REIT's ownership interest) 12.3 12.4 \n Industrial occupancy rate – in-place and committed (year-end) ((3)) 95 % 96 % \n Weighted average lease term (“WALT”) (years) 6.9 6.9 \n Industrial WALT (years) 6.9 6.9 \n Estimated spread between industrial portfolio market and in-place rents 15.8 % 18.7 % \n \n FINANCING AND CAPITAL INFORMATION \n Financing \n Net debt ((1)) 1,328,891 1,307,119 \n Total Indebtedness Ratio ((1)) 49.5 % 49.3 % \n Net Debt to Adjusted EBITDA ((1)) 11.0 10.9 \n Adjusted Net Debt to Adjusted EBITDA ((1)) 10.5 10.5 \n Debt service coverage ratio (times) 1.72 1.70 \n Secured Indebtedness Ratio 21.4 % 22.4 % \n Unencumbered investment properties as a percentage of investment properties 50.3 % 49.7 % \n Total assets 2,687,057 2,650,360 \n Cash 17,876 6,111 \n Capital \n Total equity (per consolidated financial statements) 1,104,484 1,083,289 \n Total equity (including Class B LP Units) 1,290,727 1,282,925 \n Total number of Units (in thousands) ((4)) 97,086 97,022 \n NAV per unit ((1)) 13.29 13.22 \n\n((1)   This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails. )\n((2)   Includes three properties (four properties - December 31, 2025)\nclassified as assets held for sale, and one property held for development in\nwhich the REIT has an 80% interest.)\n((3)   Includes committed new leases for future occupancy.)\n((4)   Includes Class B LP Units.)\n\n\nNet income\n\nNet income for the three months ended March 31, 2026 was $32.2 million or $1.0\nmillion lower as compared to the same period in 2025, primarily due to an\ndecrease in fair value adjustments of investment properties of $6.8 million, a\ndecrease in Class B LP Units fair value adjustments of $5.6 million, higher\nfinance expenses by $0.7 million, lower foreign exchange expenses by $0.7\nmillion, a higher loss on disposal of investment properties of $0.2 million,\nand a higher general and administrative expense of $0.2 million, partially\noffset by an increase in fair value adjustments of derivative financial\ninstruments of $11.3 million, a higher NOI of $1.7 million, and a higher\nIncentive units fair value adjustment of $0.2 million.\n\nNet operating income\n\nNOI for the three months ended March 31, 2026 was $33.8 million or $1.7\nmillion higher as compared to the same period in 2025, which was primarily due\nto $1.3 million relating to completed developments and expansions, $0.7\nmillion from acquisitions of industrial income producing properties that\nclosed subsequent to March 31, 2025, $0.6 million increase from non-recurring\nlease terminations and tenant reimbursed capital improvements, and $0.4\nmillion relating to amortization of tenant improvements and leasing costs that\nwas ceased during the three months ended March 31, 2026 as a result of change\nin application of accounting methodology, partially offset by a lower NOI of\n$0.6 million relating to straight-line rent adjustments attributed to changes\nin current lease arrangements, and $0.6 million relating to dispositions\ncompleted since Q1 2025.\n\nFair value adjustment of investment properties\n\nThe fair value adjustment (gain) on investment properties for the three months\nended March 31, 2026 totaled $2.1 million. The REIT engaged external\nappraisers to value properties totaling $141.1 million during the quarter.\nOverall, the fair value gain recorded for the REIT’s portfolio primarily\nconsists of a $29.8 million increase resulting from changes in stabilized NOI,\npartially offset by a $27.4 million decrease due to adjustments to\ncapitalization rates, and a $0.3 million decrease resulting from a fair value\nadjustment on a disposal during the period.\n\nOutlook\n\nThe REIT is focused on delivering total unitholder return through profitable\nlong-term growth, and by pursuing its strategy as a Canada-focused pure-play\nindustrial REIT.\n\nFor 2026, the REIT anticipates mid-single digit Same Property NOI((1)) growth\nin its industrial portfolio. The expected Same Property NOI((1)) growth is\nprimarily attributed to the lease-up of vacant space, and releasing space at\nmarket rents that exceed expiring rents, thereby continuing to benefit from\npositive spreads between market rental rates and the REIT's in-place rental\nrates.\n\nIn 2026, the REIT expects to benefit from:\n* the 325,000 sq. ft. expansion project at St. Thomas, ON for an existing\ntenant that was completed in Q3 2025, which is contributing $4.9 million in\nannual stabilized NOI((1)), representing a contractual going-in yield of 9.0%\non total development costs of $55.1 million,\n* the 115,000 sq. ft. small-bay industrial building that was constructed in Q3\n2025 adjacent to an existing building that the REIT owns in Calgary, AB,\nwhich, once stabilized, is expected to earn a yield of 11.0% on total\ndevelopment costs of $14.8 million, and\n* the acquisition of two industrial properties in Montreal and Longueuil, QC\nin November 2025 totalling 282,721 sq. ft., that are expected to contribute\n$2.6 million in annual stabilized NOI((1)), representing a going-in yield of\n6.6% on the purchase price of $40.1 million.\nThe normalized AFFO payout ratio((1)) for the three months ended March 31,\n2026 was 96.6%. The REIT believes that the current distributions are\nsustainable, and anticipates the normalized AFFO payout ratio((1)) to average\nbelow 100% for the full fiscal year in 2026.\n\n((1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\nEarnings Call\n\nManagement of the REIT will host a conference call at 10:00 AM Eastern\nStandard Time on Tuesday May 12, 2026, to review the financial results and\noperations.\n\nTo participate in the conference call, please dial 1-647-846-8414 or\n1-833-752-3601 (toll free in Canada and the US) at least five minutes prior to\nthe start time and ask to join the Nexus Industrial REIT conference call.\n\nA recording of the conference call will be available until June 12, 2026. To\naccess the recording, please dial 1-412-317-0088 or 1-855-669-9658 (toll free\nin Canada and the US) and enter access code 9157568.\n\nMay and June Distributions\n\nThe REIT will make a cash distribution in the amount of $0.05333 per unit,\nrepresenting $0.64 per unit on an annualized basis, payable June 15, 2026, to\nunitholders of record as of May 29, 2026.\n\nThe REIT will also make a cash distribution in the amount of $0.05333 per\nunit, representing $0.64 per unit on an annualized basis, payable July 15,\n2026, to unitholders of record as of June 30, 2026.\n\nAnnual Meeting Voting Results\n\nEach of the matters set out in the REIT’s management information circular\ndated March 30, 2026 (the “Circular”) for the annual meeting of\nunitholders held on May 11, 2026 (the “Meeting”) was approved by the\nrequisite majority of unitholders, and each of the trustee nominees listed in\nthe Circular was elected as a trustee of the REIT. Voting results for the\nindividual trustees are as follows:\n\n Nominee Number of Votes For Percentage of Votes For Number of Votes Withheld Percentage of Votes Withheld \n Floriana Cipollone 39,117,151 99.605% 155,068 0.395% \n Bradley Cutsey 39,094,541 99.548% 177,678 0.452% \n Kelly C. Hanczyk 39,159,055 99.712% 113,164 0.288% \n Daniel M. Oberste 37,957,629 96.653% 1,314,590 3.347% \n Ben Rodney 32,784,443 83.480% 6,487,776 16.520% \n Mary Vitug 32,199,652 81.991% 7,072,567 18.009% \n\nFinal results on all matters considered at the Meeting are reported in the\nReport of Voting Results as filed on SEDAR (www.sedarplus.ca).\n\nAbout Nexus Industrial REIT\n\nNexus is a growth-oriented real estate investment trust focused on increasing\nunitholder value through the acquisition of industrial properties located in\nprimary and secondary markets in Canada, and the ownership and management of\nits portfolio of properties. The REIT currently owns a portfolio of 88\nproperties (including one property held for development in which the REIT has\nan 80% interest) comprising approximately 12.3 million square feet of gross\nleasable area. The REIT has approximately 97,089,000 voting units issued and\noutstanding, including approximately 72,169,000 REIT Units and approximately\n24,920,000 Class B LP Units of subsidiary limited partnerships of Nexus, which\nare convertible to REIT Units on a one-to-one basis.\n\nNon-IFRS Measures\n\nInformation in this news release is a select summary of results. This news\nrelease should be read in conjunction with the MD&A and the Trust's\nconsolidated financial statements and the accompanying notes for the three\nmonths ended March 31, 2026 (the “Financial Statements”). The Financial\nStatements are prepared in accordance with IFRS accounting standards as issued\nby the IASB, however, included in the tables above and elsewhere in this news\nrelease are non-IFRS financial measures or non-IFRS ratios which do not have a\nstandardized meaning prescribed under generally accepted accounting principles\n(“GAAP”) in accordance with IFRS and that should not be construed as an\nalternative to net income / loss or other measures of financial performance\ncalculated in accordance with IFRS and may not be comparable to similar\nmeasures as reported by other issuers. A definition of each non-IFRS financial\nmeasure or ratio used herein and an explanation of management's reasons as to\nwhy it believes the measure is useful to investors are incorporated by\nreference and can be found on page 1 in the REIT’s Management’s Discussion\nand Analysis for the three months ended March 31, 2026, available on SEDAR+ at\nwww.sedarplus.ca and on the REIT’s website under Investor Relations. See\nAppendix A of this earnings release for a reconciliation of the non-IFRS\nfinancial measures to the primary financial statement measures.\n\nForward Looking Statements\n\nCertain statements contained in this news release constitute forward-looking\nstatements which reflect the REIT’s current expectations and projections\nabout future results, including statements under the heading \"Outlook\" and\nregarding the REIT's expectations relating to growth in NOI, benefits from\ndevelopments and the sustainability of its distributions. Often, but not\nalways, forward-looking statements can be identified by the use of words such\nas “plans”, “expects” or “does not expect”, “is expected”,\n“estimates”, “intends”, “anticipates” or “does not\nanticipate”, or “believes”, or variations of such words and phrases or\nstate that certain actions, events or results “may”, “could”,\n“would”, “might” or “will” be taken, occur or be achieved.\nForward-looking statements involve known and unknown risks, uncertainties and\nother factors which may cause the actual results, performance or achievements\nof the REIT to be materially different from any future results, performance or\nachievements expressed or implied by the forward-looking statements. Actual\nresults and developments are likely to differ, and may differ materially, from\nthose expressed or implied by the forward-looking statements contained in this\nnews release. Such forward-looking statements are based on a number of\nassumptions that may prove to be incorrect.\n\nWhile the REIT anticipates that subsequent events and developments may cause\nits views to change, the REIT specifically disclaims any obligation to update\nthese forward-looking statements except as required by applicable law. These\nforward-looking statements should not be relied upon as representing the\nREIT’s views as of any date subsequent to the date of this news release.\nThere can be no assurance that forward-looking statements will prove to be\naccurate, as actual results and future events could differ materially from\nthose anticipated in such statements. Accordingly, readers should not place\nundue reliance on forward-looking statements. The factors identified above are\nnot intended to represent a complete list of the factors that could affect the\nREIT.\n\nFor further information please contact:\n\nKelly C. Hanczyk, CEO at (416) 906-2379 or\nMike Rawle, CFO at (647) 823-1381\n\nAPPENDIX A – NON-IFRS FINANCIAL MEASURES\n\n (In thousands of Canadian dollars, except per unit amounts) Three months ended March 31, \n 2026 2025 Change \n FFO ((6)) $ $ $ \n \n Net income and comprehensive income 32,176 33,151 (975 ) \n Adjustments: \n Loss on disposal of investment properties 309 85 224 \n Fair value adjustments (18,855 ) (19,727 ) 872 \n Adjustments for equity accounted joint venture ((1)) 76 76 — \n Distributions on Class B LP Units expensed 3,672 3,713 (41 ) \n Amortization of tenant improvements and leasing costs — 366 (366 ) \n Lease principal payments (27 ) (26 ) (1 ) \n Amortization of right-of-use assets 31 30 1 \n Net effect of unrealized foreign exchange on USD debt and related hedges (57 ) (625 ) 568 \n Funds from operations (FFO) ((6)) 17,325 17,043 282 \n Weighted average units outstanding (000s) - basic ((3)) 97,069 94,203 2,866 \n FFO per unit – basic ((6)) 0.178 0.181 (0.003 ) \n \n FFO ((6)) 17,325 17,043 282 \n Add: Non-recurring personnel transition costs 220 107 113 \n Add: Non-recurring adjustments from asset dispositions ((4)) 43 472 (429 ) \n Add: Other one-time adjustments ((5)) 126 (42 ) 168 \n Normalized FFO ((6)) 17,714 17,580 134 \n Weighted average units outstanding (000s) - basic ((3)) 97,069 94,203 2,866 \n Normalized FFO per unit – basic ((6)) 0.182 0.187 (0.005 ) \n \n \n (In thousands of Canadian dollars, except per unit amounts) Three months ended March 31, \n 2026 2025 Change \n AFFO ((6)) $ $ $ \n \n FFO ((6)) 17,325 17,043 282 \n Adjustments: \n Straight-line adjustments, ground lease and rent (423 ) (1,046 ) 623 \n Capital reserve ((2)) (1,600 ) (1,600 ) — \n Adjusted funds from operations (AFFO) ((6)) 15,302 14,397 905 \n Weighted average units outstanding (000s) Basic ((3)) 97,069 94,203 2,866 \n AFFO per unit – basic ((6)) 0.158 0.153 0.005 \n Distributions declared 15,160 15,073 87 \n AFFO payout ratio - basic ((6)) 99.1 % 104.7 % (5.6 )% \n \n \n AFFO ((6)) 15,302 14,397 905 \n Add: Non-recurring personnel transition costs 220 107 113 \n Add: Non-recurring adjustments from asset dispositions ((4)) 43 16 27 \n Add: Other one-time adjustments ((5)) 126 (42 ) 168 \n Normalized AFFO ((6)) 15,691 14,478 1,213 \n Weighted average units outstanding (000s) Basic ((3)) 97,069 94,203 2,866 \n Normalized AFFO per unit – basic ((6)) 0.162 0.154 0.008 \n Distributions declared 15,160 15,073 87 \n Normalized AFFO payout ratio - basic ((6)) 96.6 % 104.1 % (7.5 )% \n\n\n\n ((1)) (Adjustment for equity accounted joint venture relates to a fair value adjustment of swaps in place at the joint venture to swap floating rate bankers’ acceptance rates to a fixed rate and a fair value adjustment of the joint venture investment property.) \n ((2)) (Capital reserve includes maintenance capital expenditures, tenant improvements and leasing costs. Reserve amounts are established with reference to building condition reports, appraisals, and internal estimates of tenant renewal, tenant improvements and leasing costs. The REIT believes that a reserve is more appropriate given the fluctuating nature of capital expenditures.) \n ((3)) (Weighted average number of units includes the Class B LP Units.) \n ((4)) (These adjustments represent one-time balance sheet write-offs, early mortgage repayment charges, and other costs associated with the disposals made during the period.) \n ((5)) (The adjustments are primarily related to unrealized foreign exchange losses (gains) on transactions relating to deferred purchase consideration and other one-time adjustments.) \n ((6)) (This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.) \n\n\n\nSAME PROPERTY RESULTS\n\n (In thousands of Canadian dollars) \n Three months ended March 31, \n 2026 2025 Change \n $ $ $ \n \n Property revenues 46,019 44,754 1,265 \n Property expenses (12,212 ) (12,664 ) 452 \n NOI ((1)) 33,807 32,090 1,717 \n Add/(Deduct): \n Amortization of tenant improvements and leasing costs — 360 (360 ) \n Straight-line adjustments of rent (422 ) (1,045 ) 623 \n Development and expansion (1,287 ) — (1,287 ) \n Acquisitions (665 ) — (665 ) \n Disposals (74 ) (718 ) 644 \n Termination fees and tenant reimbursed capital improvements (1,262 ) (671 ) (591 ) \n Same Property NOI ((1)) 30,097 30,016 81 \n \n Industrial Same Property NOI ((1)) 29,783 29,484 299 \n\n\n\n ((1)) (This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.) \n\n \n\nADJUSTED EBITDA\n\n (In thousands of Canadian dollars) Trailing twelve months ended March 31, \n 2026 2025 Change \n $ $ $ \n \n Net income 58,573 80,362 (21,789 ) \n Add (deduct): \n Net interest expense 53,866 55,049 (1,183 ) \n Distributions on Class B LP Units 14,809 15,053 (244 ) \n Fair value adjustments ((1)) (5,124 ) (30,593 ) 25,469 \n Amortization expense ((1)(2)) (3,608 ) (3,151 ) (457 ) \n Loss on disposal of investment properties 921 1,540 (619 ) \n Unrealized foreign exchange (gain) loss (34 ) 123 (157 ) \n Income from development property 1,605 2,374 (769 ) \n Non-recurring personnel transition costs 220 191 29 \n Non-recurring costs related to asset dispositions 48 203 (155 ) \n Adjusted EBITDA ((3)) 121,276 121,151 125 \n\n\n\n ((1)) (Includes equity accounted investments adjustments.) \n ((2)) (Includes amortization of straight line rent, tenant improvements, and leasing commissions.) \n ((3)) (This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.) \n\nNAV per unit\n\n (In thousands of Canadian dollars, except per unit amounts) March 31, December 31, \n 2026 2025 \n NAV per unit ((1)) $ $ \n \n Total assets 2,687,057 2,650,360 \n Less: Total liabilities (1,582,573 ) (1,567,071 ) \n Total unitholders equity 1,104,484 1,083,289 \n Add: Class B LP Units 186,243 199,636 \n NAV ((1)) 1,290,727 1,282,925 \n \n Units outstanding (000s) – basic: \n REIT Units 71,816 71,752 \n Class B LP Units 25,270 25,270 \n 97,086 97,022 \n NAV per unit – basic ((1)) 13.29 13.22 \n \n\n((1)   This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\nTOTAL INDEBTEDNESS RATIO\n\n (In thousands of Canadian dollars) March 31, December 31, \n 2026 2025 \n Total Indebtedness Ratio ((1)) $ $ \n Current and non-current: \n Mortgages payable 544,227 563,231 \n Credit facilities 772,569 731,019 \n Lease liabilities 10,586 10,613 \n Liabilities associated with assets held for sale 19,385 8,367 \n Total indebtedness ( (1)) 1,346,767 1,313,230 \n less: unrestricted cash (17,876 ) (6,111 ) \n Net debt 1,328,891 1,307,119 \n Total assets 2,687,057 2,650,360 \n Total Indebtedness Ratio ( (1)) 49.5 % 49.3 % \n \n\n((1)   This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\nADJUSTED NET DEBT\n\n (In thousands of Canadian dollars) March 31, December 31, \n 2026 2025 \n $ $ \n Current and non-current: \n Mortgages payable 544,227 563,231 \n Credit facilities 772,569 731,019 \n Lease liabilities 10,586 10,613 \n Liabilities associated with assets held for sale 19,385 8,367 \n Total indebtedness ((1)) 1,346,767 1,313,230 \n Less: Unrestricted cash (17,876 ) (6,111 ) \n Less: Additions to properties under development (50,801 ) (44,943 ) \n Adjusted net debt ((1)) 1,278,090 1,262,176 \n \n\n((1)   This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for\ndetails.)\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/37a42313-4564-47c3-beef-d79b14aa8a03)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-05-11T23:10:39.338166298Z","server_sent_at_ms":1778541039338},"received_at":"2026-05-11T23:10:39.496Z","source_url":"https://www.globenewswire.com/news-release/2026/05/11/3292434/0/en/Nexus-Industrial-REIT-Announces-First-Quarter-2026-Financial-Results.html"},"analysis":{"id":"22735","press_release_id":"30679","analysis_json":{"industry":{"label":"Real Estate Management & Development","sector":"Real Estate"},"redFlags":[],"eventType":"earnings","narrative":"Nexus Industrial REIT reported a net income of $32.2 million for Q1 2026, a decrease of $1.0 million from the same period in 2025.\n\nNet operating income (NOI) increased by 5.4% to $33.8 million, primarily due to NOI generated from completed developments and newly acquired industrial properties.\n\nThe normalized AFFO payout ratio improved by 7.5% to 96.6%, signaling a step toward the company's 2026 guidance of delivering a ratio below 100% for the full year.\n\nIn April, the REIT issued $500 million in senior unsecured debentures, achieving an investment-grade credit rating and adding financial flexibility.","sentiment":"neutral","agentHooks":{"shouldPost":true,"suggestedAngle":"Nexus Industrial REIT reports mixed Q1 results with improved AFFO payout ratio and significant bond issuance."},"keyFigures":{"eps":0,"epsBeat":0,"revenue":46019000,"guidance":"mid-single digit Same Property NOI growth in industrial portfolio for 2026","revenueYoy":"2.8%","customDimensions":{"ffo":17325000,"noi":33807000,"affo":15302000,"noiYoy":"5.4%","net_debt":1328891000,"net_income":32176000,"nav_per_unit":13.29,"total_assets":2687057000,"total_equity":1104484000,"normalized_ffo":17714000,"normalized_affo":15691000,"adjusted_net_debt":1278090000,"net_income_change":"-3.0%","nav_per_unit_change":"0.5%","total_assets_change":"36.7 million","total_equity_change":"21.2 million","distributions_per_unit":0.16,"total_indebtedness_ratio":"49.5%","industrial_same_property_noi":29783000,"normalized_affo_payout_ratio":"96.6%","industrial_same_property_noi_growth":"1.0%","adjusted_net_debt_to_adjusted_ebitda":"10.5","normalized_affo_payout_ratio_improvement":"7.5%"}},"quotedText":"Today's approval marks the most important milestone in our company's history","namedEntities":{"people":[{"name":"Kelly Hanczyk","role":"CEO"},{"name":"Mike Rawle","role":"CFO"}],"products":[],"companies":[{"name":"Nexus Industrial REIT","ticker":"NXR_U"},{"name":"Cantor Fitzgerald","relationship":"underwriter"}],"dollarAmounts":[{"amount":"$32.2 million","context":"net income for Q1 2026"},{"amount":"$33.8 million","context":"NOI for Q1 2026"},{"amount":"$15.302 million","context":"AFFO for Q1 2026"},{"amount":"$15.691 million","context":"Normalized AFFO for Q1 2026"},{"amount":"$13.29","context":"NAV per unit as of March 31, 2026"},{"amount":"$1.1 billion","context":"total equity as of March 31, 2026"},{"amount":"$2.687 billion","context":"total assets as of March 31, 2026"},{"amount":"$1.328891 billion","context":"net debt as of March 31, 2026"},{"amount":"$1.278090 billion","context":"adjusted net debt as of March 31, 2026"},{"amount":"$500 million","context":"bond issuance in April 2026"},{"amount":"$200 million","context":"unsecured term loan facility paid off in April 2026"},{"amount":"$292 million","context":"unsecured revolving facility partially paid down in April 2026"},{"amount":"$492 million","context":"notional value of cross-currency swaps unwound in April 2026"},{"amount":"$317 million","context":"notional value of interest rate swaps closed in April 2026"},{"amount":"$4.9 million","context":"annual stabilized NOI from St. Thomas, ON expansion project"},{"amount":"$14.8 million","context":"total development costs for St. Thomas, ON expansion project"},{"amount":"$2.6 million","context":"annual stabilized NOI from Montreal and Longueuil acquisitions"},{"amount":"$40.1 million","context":"purchase price for Montreal and Longueuil acquisitions"}]},"materialImpact":{"score":3,"reasoning":"The REIT reported mixed financial results with a decrease in net income but an increase in NOI. 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