Dear Unitholders,
It is with great joy that I present to you our first annual report as a publicly traded
entity marking the beginning of a promising era for NXST. Occupying 10 million square feet
of Grade A retail space nationwide, we have unified our properties under the ‘Nexus
Select Trust' brand to enhance tenant engagement, strengthen stakeholder relationships,
and elevate brand recognition.
ALIGNED WITH INDIA'S EVOLVING RETAIL LANDSCAPE
As e-commerce and D2C brands continue to expand their offline presence in
India,brick-and-mortar retail has seen impressive demand recovery and increased footfalls.
Stable economic conditions have seen an increase in leasing activity from domestic and
international brands, with India becoming an attractive market for premium foreign brands.
Driven by excellence, innovation, and customer- centricity, we are optimistic about our
parallel growth trajectory.
The demand for Entertainment and Food and Beverage (F&B) in India has increased in
recent years. We have repurposed space to enhance the F&B experience across our
properties, including Fine Dining and Quick Service Restaurants
(QSRs). To cater to the growing demand for dining out and leisure experiences, NXST
plans to allocate more space to restaurants and entertainment zones over the next three
years.
The expanding middle class has driven consumption growth, propelling the Indian economy
over the past decade. Our portfolio is well positioned to benefit from this. With a robust
business model and diversified asset base serving as a natural hedge against inflation, we
are agile to adapt to market dynamics and seize new opportunities.
CAPITALISING ON MULTIPLE GROWTH LEVERS
As India's first publicly listed retail REIT, NXST is part of one of the world's
fastest-growing, consumption-led economies. We are India's leading consumption centre
platform, with 17 malls across 14 cities, 10 million square feet.
In terms of size and scale, we have -3,000 stores, 1,000+ brands, recording 130 million
footfalls in FY24.
We have demonstrated a remarkable ability in revitalizing under-performing properties,
supported by a renowned sponsor. By being attuned to the evolving needs of our customers
and retailers, leveraging our access to capital, and our strategic approach, we have built
a distinctive portfolio of property assets. Our diversified tenant base, featuring top
domestic and international brands, is a key driver of our robust cash flow and growth.
With strategic presence in prime infill locations, we enjoy consistent foot traffic and
retail activity, providing a solid foundation for our operations. Our experienced team
leverages industry-leading technology to optimize our operations, drive efficiency, and
deliver exceptional results.
STRATEGY FOR PROGRESS
Our growth strategy emphasizes effective lease management, regulatory compliance,
strategic acquisitions, and competitive market navigation. We have structured lease
agreements that allow revenue growth through rent escalations and turnover rentals. We
strictly adhere to India's real estate regulations, ensuring sustainable operations. With
a strategic focus on acquiring high- quality assets, we position ourselves for robust
growth, as evidenced by our upcoming acquisition of three malls in Hyderabad.
Despite potential price and supply volatility, we keep up with factors like location,
rental rates, property quality, and maintenance services, surpassing our competitors.
SUSTAINABLE BY DESIGN
Sustainability and wellness are integral to our business strategy, and we seek
partnerships with like-minded organizations to drive positive change and create value for
all our stakeholders. We are committed to achieving net-zero emissions for our operational
assets by 2030, in alignment with the Science Based Target Initiative (SBTi) and the
Taskforce on Climate-Related Financial Disclosure (TCFD). The green clauses in leases
encourage our tenants to be actively involved in environmental restoration.
Our sustainability strategy is built on the ethos of ‘Responsible Choices.
Sustainable Outcomes'. Aligned with global frameworks like the United Nations Global
Compact, we prioritize human and labor rights.
At NXST, we deliver positive experiences to our employees, tenants, and communities,
supported by strong corporate governance that ensures compliance and ethical practices
while fostering sustainable business growth.
A BRIGHT FUTURE
NXST's culture of ‘Happyness for Everyone' is built on the bedrock of strong,
meaningful relationships with our stakeholders, and this commitment will continue to be an
essential part of our Company. We aim to establish our malls as an integral part of
community life, where people come together to celebrate life. To further augment our
position as a leading retail real estate platform in India, we plan to expand and optimize
our existing assets, thereby enhancing the overall value of our portfolio.
I am indebted to our Board of Directors for their wisdom and guidance, and our
Unitholders for their confidence. I extend my sincere appreciation to our dedicated
employees for their contributions to our shared success.
The trust placed in NXST is deeply valued and I sincerely thank all our stakeholders
for their commitment and ongoing support.
Regards,
TUHIN PARIKH
Chairman and Non-Executive
Non-Independent Director