Nexus Real Estate Investment (NXR.UN) AI Stock Analysis

• Market Cap: $666.23M
• Dividend Yield: 8.9%
• Average Volume (3M): 149.00K
• Price to Earnings (P/E): 8.3
• Beta (1Y): 1.18
• Revenue Growth: 9.21%
• EPS Growth: -61.37%
• Country: CA
• Employees: 19
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Industrial
• EPS (TTM): 0.35
• Shares Outstanding: 71,128,000
• 10 Day Avg. Volume: 168,669
• 30 Day Avg. Volume: 149,002
• PEG Ratio: 0.07
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.09
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $8.13
• Price Target Upside: 11.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 78 Outperform
• Price Target: C$8.00 ▲(10.04%Upside)

Nexus Industrial REIT demonstrates robust financial performance and strategic positioning within the industrial REIT sector. Strong revenue growth, an attractive valuation, and effective strategic repositioning are significant strengths. However, technical indicators suggest caution, and challenges such as tenant credit risks and market slowdowns present risks. Overall, the stock remains a solid investment with positive long-term prospects.

Positive Factors

Balance Sheet

Dispositions are favourably impacting the balance sheet and portfolio composition.

Development Projects

Lease-up/completion of several development projects is also a source of potential upside.

Financial Performance

$10M of annualized NOI upside potential from recent and soon-to-be-completed developments.

Negative Factors

Leverage

Neutral stance reflects NXR's above-average leverage and payout ratio vs. peers, as well as lingering concerns with respect to certain legacy properties.

Nexus Real Estate Investment Business Overview & Revenue Model

Company Description

Nexus Real Estate Investment Trust (NXR.UN) is a Canadian real estate investment trust focused on acquiring and managing a diversified portfolio of commercial properties. The company primarily invests in industrial, office, and retail sectors across major Canadian markets, aiming to provide stable and growing cash distributions to its unitholders through strategic property acquisitions and active asset management.

How the Company Makes Money

Nexus Real Estate Investment Trust generates revenue primarily through rental income from its portfolio of commercial properties. The trust leases space to a variety of tenants, including businesses in the industrial, office, and retail sectors. Revenue is further supported by property management fees and potential capital appreciation from strategic property acquisitions and disposals. The company benefits from long-term lease agreements, which provide consistent cash flow, and actively manages its properties to enhance value and occupancy rates. Additionally, Nexus may engage in joint ventures or partnerships to expand its investment opportunities and leverage its expertise in real estate management.

Nexus Real Estate Investment Financial Statement Overview

Summary

Nexus Real Estate Investment shows strong financial performance with consistent revenue growth, solid profitability margins, and efficient cash flow management. Despite increased leverage, the company's financial health remains stable, with a focus on maintaining a strong cash position and effective capital allocation. The fluctuations in net income and ROE suggest potential areas for improved financial stability.

Income Statement

Nexus Real Estate Investment has demonstrated robust revenue growth from 2019 to 2024, with a notable increase in total revenue from $60 million in 2019 to $175.7 million in 2024. The Gross Profit Margin improved significantly from 63.2% in 2019 to 71.6% in 2024. However, the Net Profit Margin fluctuated, peaking in 2021 due to a substantial net income but declining in subsequent years. EBITDA Margin remains strong, reflecting efficient operational performance.

Balance Sheet

The company's Debt-to-Equity Ratio increased from 1.14 in 2019 to 1.18 in 2024, indicating higher leverage but manageable within the industry norms. Return on Equity (ROE) showed volatility, with a high of 21.7% in 2021, reflecting exceptional net income, followed by a decrease in subsequent years. The Equity Ratio declined slightly over the years, suggesting an increase in liabilities relative to total assets.

Cash Flow

Operating Cash Flow remains strong, although it decreased from $51 million in 2023 to $38.96 million in 2024. Free Cash Flow was positive and stable, despite a slight decline from the previous year. The Free Cash Flow to Net Income Ratio was robust, highlighting the company's ability to convert net income into free cash flow effectively.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
175.70M	157.65M	137.12M	83.56M	61.39M
	Gross Profit
125.87M	111.97M	95.81M	55.95M	39.23M
	EBIT
118.05M	103.32M	142.28M	-25.88M	41.53M
	EBITDA
145.87M	201.67M	142.37M	-14.93M	41.62M
	Net Income Common Stockholders
90.88M	160.03M	91.75M	146.36M	14.84M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.53M	5.92M	11.53M	82.28M	13.99M
	Total Assets
2.60B	2.46B	1.97B	1.66B	710.50M
	Total Debt
1.25B	1.19B	827.11M	679.55M	342.72M
	Net Debt
1.24B	1.18B	815.57M	597.27M	328.72M
	Total Liabilities
1.54B	1.46B	1.09B	968.67M	410.92M
	Stockholders Equity
1.06B	1.00B	872.54M	689.48M	299.58M
Cash Flow		Free Cash Flow
24.70M	32.08M	30.32M	19.62M	18.69M
	Operating Cash Flow
38.96M	51.02M	41.53M	25.00M	24.35M
	Investing Cash Flow
-78.60M	-345.99M	-315.73M	-469.25M	-45.07M
	Financing Cash Flow
45.26M	289.36M	203.45M	512.54M	26.84M

Nexus Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NXR.UN, the sentiment is Neutral. The current price of 7.27 is above the 20-day moving average (MA) of 6.99, above the 50-day MA of 6.82, and below the 200-day MA of 7.44, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 53.88 is Neutral, neither overbought nor oversold. The STOCH value of 37.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:NXR.UN.

Nexus Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXR.UN	78 Outperform	$666.23M	8.26	7.47%	8.90%	9.21%	-61.37%
MRG.UN	75 Outperform	C$905.00M	8.12	5.83%	4.25%	3.85%	-31.81%
MI.UN	67 Neutral	C$478.16M	5.25	9.03%	4.05%	-0.29%	―
Sector *	60 Neutral	$2.76B	10.59	0.51%	8507.90%	5.51%	-19.44%
AX.UN	58 Neutral	C$712.53M	―	-1.80%	8.34%	-13.42%	86.55%
ERE.UN	57 Neutral	C$571.74M	―	-37.33%	6.35%	-7.34%	-966.70%

Nexus Real Estate Investment Corporate Events

Nexus Industrial REIT Reports Strong Q1 2025 Results Amid Strategic Shift

Nexus Industrial REIT announced a successful first quarter of 2025, highlighted by an 8.6% increase in net operating income driven by strategic acquisitions and developments. The company completed its transition to a pure-play industrial REIT, selling 15 retail and one office property to focus on industrial assets, which now account for over 99% of its NOI. This strategic shift positions Nexus to better withstand economic challenges, with a strong start to 2025 leasing activities and significant ongoing development projects expected to enhance future income. The REIT’s financial performance was bolstered by increased occupancy rates and successful lease renewals, demonstrating the strength of its tenant relationships and portfolio quality.

The most recent analyst rating on ($TSE:NXR.UN) stock is a Buy with a C$8.00 price target. To see the full list of analyst forecasts on Nexus Real Estate Investment stock, see the TSE:NXR.UN Stock Forecast page.

Nexus Industrial REIT Completes Strategic Asset Sale and Reports Leasing Success

Nexus Industrial REIT has announced the sale of its 50% ownership in 15 retail buildings and one office building in Quebec for a total of $51 million. The proceeds will be used to repay debt and fund development projects, marking the company’s transition to a pure-play industrial REIT in Canada. The company has also reported a strong start to its 2025 leasing activities, renewing over 80% of its expiring gross leasable area and securing significant rent increases, which will enhance its net operating income.

Nexus Industrial REIT to Release Q1 2025 Financial Results

Nexus Industrial REIT announced its plan to release the financial results for the first quarter of 2025 on May 15, 2025, before the opening of the TSX. The announcement includes a scheduled conference call to discuss the results and operations, highlighting the company’s ongoing commitment to transparency and stakeholder engagement.

Nexus Industrial REIT Achieves Record Growth in 2024

Nexus Industrial REIT reported a significant growth in net operating income for the fourth quarter and full year 2024, driven by strategic acquisitions and development projects. The company has advanced its transition to a pure-play industrial REIT by selling non-core assets and completing new developments, contributing to a record net income and increased unitholders’ equity, positioning itself strongly in the industrial real estate market.