Nexus Industrial REIT Announces the Sale of Legacy Retail and Office Buildings and Leasing Update

/EIN News/ -- OAKVILLE, Ontario, April 08, 2025 (GLOBE NEWSWIRE) -- Nexus Industrial REIT (“Nexus” or the "REIT") (TSX: NXR.UN) is pleased to announce the sale of its 50% ownership interest in 15 retail buildings located in Quebec for $47 million and one office building also located in Quebec for $4 million, representing cap rates on in-place rents of 6.8% and 9.5% respectively (together, the “Properties”). The REIT intends to use the net proceeds from the dispositions to repay existing indebtedness on its credit facility and to fund development projects.

“These sales mark the substantial completion of our transition to a pure-play, Canada-focused industrial REIT” said Kelly Hanczyk, CEO of Nexus Industrial REIT. “Over the past five years we have successfully re-focused and grown Nexus to be a scale pure-play industrial REIT, with a portfolio of high-quality industrial properties tenanted by first-class lessees and geographically diversified within Canada. We will use the sale proceeds to reduce debt and to complete our two ongoing development projects that will add $6.8 million of annual stabilized NOI after completion in the second quarter, representing an unlevered 9.7% return on development costs.

“We have also had an excellent start to our 2025 leasing,” continued Mr. Hanczyk. “We have already renewed over 80% of our expiring GLA, including two value-add renewals that will contribute another $2.3 million to NOI this year and increasing thereafter. These renewals demonstrate the quality of our portfolio and the strength of our tenant relationships.

“I am very excited with the progress that we have made, and I am confident that our strategy will continue to be rewarding for our unitholders,” concluded Mr. Hanczyk.

Details of the Properties are as follows:

Property Address	Building Type	GLA (sq. ft.) at Nexus’ ownership interest
1094-1100 boul. Des Chutes, Beauport	Retail	16,203
1700 rue Sherbrooke, Magog	Retail	66,916
1971 rue Bilodeau, Plessisville	Retail	49,848
14000 boul. Henri-Bourassa, Québec City	Retail	22,310
6700 rue St-Georges, Lévis	Retail	21,509
10516 boul. Sainte-Anne, Ste-Anne-de-Beaupré	Retail	44,476
9550 boul. L’Ormière, Québec City	Retail	57,598
333 Côte Joyeuse, St-Raymond	Retail	32,256
161 Route 230 Ouest, La Pocatière	Retail	102,475
25 Route 138, Forestville	Retail	28,157
2000 boul. Louis-Fréchette, Nicolet	Retail	44,192
3856 boul. Taschereau, Greenfield Park	Retail	106,991
250 boul. Fiset, Sorel	Retail	58,174
8245 boul. Taschereau, Brossard	Retail	21,617
340 rue Belvédère Sud, Sherbrooke	Retail	86,492
1600 rue Montgolfier, Laval	Office	27,097

Leasing Update

The REIT is pleased to share that it has completed an early renewal of its 265,000 sq ft industrial building located at 15745 Robin’s Hill Rd, London, ON. The REIT has completed an early “blend an extend” with the existing tenant for a 3-year lease, resulting in a rent increase from $4.35psf to $12.50psf, back-dated to January 1, 2025, with 7% annual rent escalation thereafter.

At its 293,000 sq ft building located at 650 Riverview Dr., Chatham, ON, the REIT completed a lease expansion and 5-year renewal with the existing primary tenant. The primary tenant has increased their occupancy to 269,000 sq. ft. at $9.60psf effective June 1, 2025, with annual rent steps thereafter, and absorbed 31,000 sq. ft. from another tenant who is vacating March 31, 2025. The vacating tenant was paying rent of $4.50psf.

About Nexus Industrial REIT

Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 90 properties comprising approximately 11.7 million square feet of gross leasable area.

For further information please contact:

Kelly C. Hanczyk, CEO at (416) 906-2379; or
Mike Rawle, CFO at (647) 823-1381.