Q1/26: Guidance Reiterated Despite Slip in Occupancy and Modest SPNOI Growth

Research evidence excerpt

Q1/26: Guidance Reiterated Despite Slip in Occupancy and Modest SPNOI Growth

Real Estate/REITs

Nexus Industrial REIT

TD SECURITIES INC. - CANADA QUICK TAKE: EARNINGS UPDATE

May 11, 2026

Price: C$8.06 (05/11/2026) Q1/26: Guidance Reiterated Despite Slip in

Price Target: C$8.00 Occupancy and Modest SPNOI Growth

HOLD (2)

ESG SCORE: 65/100

Sam Damiani, CFA^ THE TD COWEN INSIGHT

416 983 9640

Q1 NFFO was in line, though with the help of some lease termination fee income. Industrial

sam.damiani@tdsecurities.com

occupancy fell 90bps q/q to 94.8% (new vacancies in Sherbrooke and London) and SPNOI

Linda Wang^ growth slowed to +1.0%. FY2026 MSD SPNOI growth guidance was reiterated, so the

416 983 9259 remainder of the year will require some catch-up. NXR units starting to reflect better relative

linda.wang@tdsecurities.com

value at 12.7x P/AFFO (16% discount vs peers).

Golden Nguyen-Halfyard^

416 308 3842 Impact: NEUTRAL (2026 guidance unchanged despite slower SPNOI growth and occupancy

golden.nguyenhalfyard@tdsecurities.com dip in Q1)

Key Data Q1/26 Results. Reported NFFO/unit (f.d) of $0.182 (-2% y/y) was largely in line with our est/

Symbol TSX: NXR.UN-T

cons of $0.184/$0.189. The y/y decline was mostly owing to a higher unit count as a result of

Market Cap C$782.0MM the 2.8mm Class B units issued as part of the Richmond expansion. Industrial SPNOI growth

General: BV/Share reflects IFRS fair value/unit. Market Cap slowed to +1.0% (Q4/25: +2.8%).on basic units

2026 industrial portfolio SPNOI growth outlook reiterated at MSD but will require some

catch-up after the 1% print in Q1. FY growth will partially rely on NOI contributions from:

■The 325ksf expansion at 70 Dennis Rd in St. Thomas, ON which was completed in Q3/25

($4.9mm in annualized NOI expected);