Nexus Select Trust — Q4 FY26

Nexus Select Trust Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=a6Z2UDZ15SM Published: 1 day ago

0:01 1 second Ladies and gentlemen, good day and welcome to earning conference call of Nexus Select Trust for Q4 and FY26. 0:09 9 seconds As a reminder, all participant lines will be the listenon mode and there will be an opportunity for you to ask questions after the presentation 0:16 16 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please 0:25 25 seconds note that this conference is being recorded. I now hand the conference over to Mr. Pratik Dantara, chief investor relations officer and head strategy from 0:34 34 seconds Nexus Select Trust. Thank you and over to you. 0:38 38 seconds Thank you. Good evening everyone and thank you for joining the earnings conference call of Nexus Select Trust for quarter 4 and year ended March 26. 0:48 48 seconds Before we proceed, I'd like to highlight that the management may make certain statements that may constitute forward-looking statements. Please be 0:57 57 seconds advised that our actual results may differ material materially from these statements. Nexus Select Trust does not guarantee these statements or results 1:05 1 minute, 5 seconds and is not obligated to update them at any point of time. Specifically, any financial guidance and perform 1:12 1 minute, 12 seconds information that we will share on this call are management estimates based on certain assumptions and have not been 1:19 1 minute, 19 seconds subjected to audit review examination procedures. You are cautioned not to place undue reliance on such information and there can be no assurance that we'll 1:28 1 minute, 28 seconds be able to achieve the same. Joining me today on the call are Dalip Seagel, executive director and CEO, Rajesh Dio, 1:37 1 minute, 37 seconds our CFO, Jan Nyak, president operations, Nizar Jen, President Leading. As always, 1:44 1 minute, 44 seconds we'll begin with brief remarks on our business and financial performance and then open the floor for questions. Over to you, D. 1:53 1 minute, 53 seconds Thank you, Pratik. Good evening, everyone. It's my pleasure to welcome you to the earnings update call for quarter 4 and full year ending 31st 2:02 2 minutes, 2 seconds March 26 for Nexus Select Trust, India's first listed REIT. 2:09 2 minutes, 9 seconds This year marks a significant milestone for us as we complete 10 years of building the Nexus platform. Over the 2:17 2 minutes, 17 seconds past decade, we have created a resilient portfolio of 19 malls across 15 cities 2:26 2 minutes, 26 seconds uh comprising nearly 11 million square ft of operational retail space that 2:32 2 minutes, 32 seconds witnesses good footfalls of around 14 crores or 140 million. Today, our 2:39 2 minutes, 39 seconds portfolio generates annual consumption of over INR 14,000 crores and delivers 2:47 2 minutes, 47 seconds close to INR 2,000 crores of net operating income. Across our malls, we host nearly 2:56 2 minutes, 56 seconds 1100 odd brands across 3,200 stores offering a healthy mix of leading 3:04 3 minutes, 4 seconds international and domestic brands. Most importantly, the Nexus portfolio today supports a large ecosystem with over 3:13 3 minutes, 13 seconds 5,000 employees working across our portfolio and more than 20,000 3:19 3 minutes, 19 seconds tenant employees serving customers every day. So, the ecosystem is more than 25,000 people, the Nexus ecosystem. 3:28 3 minutes, 28 seconds Before we delve into the quarter and the year- end performance, I wanted to spend a couple of minutes on the emerging macro trends in the retail real estate 3:37 3 minutes, 37 seconds landscape in India. Demand supply dynamics one grade demand supply dynamics continue to be extremely 3:45 3 minutes, 45 seconds favorable for us with no near-term new grade supply of any large scale in 3:51 3 minutes, 51 seconds primary nexus catchments. Two, turning to the global headwinds arising out of the Middle East conflict as all of us 3:59 3 minutes, 59 seconds know we remain mindful of the macroeconomic uh issues that may arise whether it is inflation, higher input costs etc etc. 4:09 4 minutes, 9 seconds Currently happy to note that we are not seeing any slowdown in decision making on the deal front. In fact our long-term 4:17 4 minutes, 17 seconds leases and strong balance sheet position us very well to navigate this cycle. 4:24 4 minutes, 24 seconds consumption trends in April and May have remained healthy with strong uh high double-digit growth strong high 4:32 4 minutes, 32 seconds double-digit growth in April and in the first two weeks of May. So the consumption trends are still very very 4:39 4 minutes, 39 seconds strong. March also uh was uh in in high uh double digits. So we've seen now for 4:46 4 minutes, 46 seconds almost 10 weeks uh a very very strong uh growth trend. 4:51 4 minutes, 51 seconds occupancy. Our retail occupancy stands at 97% which is 400 bits ahead of the market. 4:59 4 minutes, 59 seconds This is on the back of proactive leasing, high quality mall infrastructure, prime infield city center locations and best-in-class management team. 5:09 5 minutes, 9 seconds Now coming to our quarterly performance on the consumption front, growth momentum remained robust building on the 5:17 5 minutes, 17 seconds strong trajectory witnessed over the previous three quarters. We ended Q4 with robust footfall growth of 8% and 5:26 5 minutes, 26 seconds this translated into healthy consumption growth and revenue growth of 19%. 5:33 5 minutes, 33 seconds Backed by this strong operating momentum, we delivered another solid financial performance with retail NY 5:39 5 minutes, 39 seconds growing by 11% yearonear in quarter 4 FI26. 5:44 5 minutes, 44 seconds On the back of this performance, we are pleased to declare a distribution of INR 346 translating into INR 2.286. 5:56 5 minutes, 56 seconds I repeat, INR 2.286 per unit and a year on year growth of 14%. Importantly, this 6:05 6 minutes, 5 seconds marks our 11th consecutive quarter of 100% uh distribution payout forced listing 6:12 6 minutes, 12 seconds underscoring the stability, resilience, and predictability of a cash flow. I'm pleased to share that we have achieved 6:19 6 minutes, 19 seconds our FY 26 distribution guidance of INR 9.1 per unit implying a growth of 9% year on year over the previous year. 6:29 6 minutes, 29 seconds Since our listing in May 23, our unit holders have benefited from a combination of steady income growth and 6:38 6 minutes, 38 seconds capital appreciation translating into an over return of more than 75%. More than 6:45 6 minutes, 45 seconds 75% during the year our NAV has increased by 8% to INR 164 per unit INR 6:55 6 minutes, 55 seconds 164 per unit. Now let me walk you through some category wise trends. 7:00 7 minutes Fashion which was on a slow track the earlier year is now uh growing quite rapidly. It accounts for 50% of our uh 7:08 7 minutes, 8 seconds consumption and it grew by about 12% in this quarter driven by a sharp uptick in demand for value fashion and ethnic wear 7:18 7 minutes, 18 seconds making it the third quarter of strong performance. So fashion growth seems to be back on track. jewelry which is 7:27 7 minutes, 27 seconds uh jewelry recorded its highest ever quarterly sales since listing driven by rise in gold prices addition of new 7:34 7 minutes, 34 seconds jewelry stores across the mall our overall consumption contribution from jewelry has increased by 300 bits to 7% 7:44 7 minutes, 44 seconds uh since March 25 so March 25 to March 26 we have increas jewelry has increased by 300 bits in terms of consumption and is now 7% % of our portfolio. 7:57 7 minutes, 57 seconds Three family entertainment centers including multiplexes sustained robust momentum with 18% 8:04 8 minutes, 4 seconds growth in quarter 4 FI26 and you would have seen the results of the cinema operators also yesterday which were very 8:13 8 minutes, 13 seconds good indeed added this was aided by blockbuster titles like the 2 border 2 8:19 8 minutes, 19 seconds and and many other good Hollywood films as well electronics witnessed a 22% 8:26 8 minutes, 26 seconds growth during quarter driven by very strong demand during key promotional events such as public day and end of season sale. 8:35 8 minutes, 35 seconds Let me now walk you through our leasing and marketing performance. 8:40 8 minutes, 40 seconds On leasing, we continue to witness robust demand from international and domestic banks. Supported by this robust 8:48 8 minutes, 48 seconds demand, we released 9 lakh square ft during the year at an 18% mark tomarket 8:56 8 minutes, 56 seconds spread. During the year, we have strategically churned approximately four lakh square ft four 9:04 9 minutes, 4 seconds lakh square ft of space ahead of expiry achieving healthy strength reflecting proactive asset management. 9:13 9 minutes, 13 seconds coming up in the coming years lease expireies we expect about 12 lakh square feet on an 9:20 9 minutes, 20 seconds average lease expireies annually over the next four years. So about 12 lakh square ft of average leasing uh will 9:28 9 minutes, 28 seconds come up uh every year over the next four years. In terms of rentals, 45% of our 9:35 9 minutes, 35 seconds gross rental portfolio will be expiring over the next four years and this should uh with releasing give us a 20% mark to 9:45 9 minutes, 45 seconds market. Now from a marketing standpoint uh we curated 9:53 9 minutes, 53 seconds experiential events like bhajan jamming what which is in today music concerts theater performances etc across all our 10:02 10 minutes, 2 seconds mos during the year augmenting footfalls and generating six cr revenue. On the digital front, we have installed six 10:10 10 minutes, 10 seconds anamorphic screens across our mall and we have partnered with around 120 plus brands generating a revenue of INR3 10:18 10 minutes, 18 seconds crores. Coming to our digital engagement, uh happy to announce our Nexus One app now has over 1 million 10:28 10 minutes, 28 seconds users with one and a half lakh monthly active users and 56% customer repeat rate. Nexus One app 10:37 10 minutes, 37 seconds remains among India's top performing mall apps with a 4.4 rating on the app store. Indeed, a a great achievement. 10:45 10 minutes, 45 seconds Now, let me walk you through our acquisition strategy and perform and performance of recent acquisitions. Over the past decade, we have built a robust 10:54 10 minutes, 54 seconds portfolio through a disciplined third party asset acquisition strategy focusing on undermanaged or underleased 11:03 11 minutes, 3 seconds assets or underinvested assets and unlocking value through our operational expertise. The core strategy remains 11:10 11 minutes, 10 seconds unchanged and we will continue to see significant headroom to drive growth through our proven playbook on 11:18 11 minutes, 18 seconds acquisitions. In addition, as we look ahead, we remain firmly aligned with our vision on doubling our portfolio by 11:25 11 minutes, 25 seconds 2030. To support this vision, we have further sharpened our acquisition strategy by introducing three strategic 11:33 11 minutes, 33 seconds pillars during FI26. First, we are pursuing strategic tie-ups with reputed developers for under construction malls. 11:42 11 minutes, 42 seconds This approach enables us to enter new markets where we currently have no presence while also strengthening our 11:50 11 minutes, 50 seconds footprint in existing markets where acquisition opportunities uh may be limited. In line with this, we have 11:57 11 minutes, 57 seconds partnered with Subo Runal Group to develop a 7 lakh square mall in the MMR 12:03 12 minutes, 3 seconds region. Second, we are driving strategic expansion through within our existing existing malls as well. During the year, 12:12 12 minutes, 12 seconds we completed a bolt-on acquisition of prime 60,000 square ft of retail space within the Nexus Ilante complex in 12:20 12 minutes, 20 seconds Chandigar. This demonstrates our ability to unlock incremental value within our current portfolio and will continue to 12:27 12 minutes, 27 seconds pursue such opportunities. Third pillar in our sponsor pipeline which provides us with visibility on potential future 12:36 12 minutes, 36 seconds acquisitions. sponsor currently holds the South City asset in Kolkata acquired in 2025 which could present a compelling 12:44 12 minutes, 44 seconds opportunity over time. Now coming to our acquisition pipeline, we have built a robust pipeline of eight assets across 12:52 12 minutes, 52 seconds India with two assets under due diligence and diamond plaza Kolkata deal closing underway. We expect to continue 13:01 13 minutes, 1 second the momentum on acquisitions build over the last year and we'll look to add two to three assets every year to our 13:08 13 minutes, 8 seconds portfolio. Our LTV stands at 18% with Diamond Plaza it will still remain 18%. 13:16 13 minutes, 16 seconds Cost of debt is at 7.3% which is 60 bits lower than March of 25. 13:25 13 minutes, 25 seconds Significantly below our acquisition cap rates. This is significantly below our acquisition cap rates. Supported by a robust acquisition pipeline, strong 13:33 13 minutes, 33 seconds balance sheet, low leverage and close to US dollar 1 billion of debt headroom, we are well positioned to drive this phase 13:41 13 minutes, 41 seconds of our inorganic growth strategy. Now turning to the performance of our recently acquired assets. Both Vega City 13:50 13 minutes, 50 seconds uh in Bangalore and MBD in Ludana, Punjab witnessed robust tenant growths 13:56 13 minutes, 56 seconds growing at 15% after acquisition and uh uh with a footfall of 9% plus. So that's 14:04 14 minutes, 4 seconds really good in terms of the uh two malls that we acquired. Now coming to our HR initiatives 14:12 14 minutes, 12 seconds during the year we launched Arunia an education program for frontline staff in strategic collaboration with Mhavi 14:20 14 minutes, 20 seconds Skills University and partnered with Winker Institute of Management to launch India's first post-graduate program in 14:27 14 minutes, 27 seconds mall management reinforcing our leadership and long-term talent vision. 14:33 14 minutes, 33 seconds Lastly, turning to our unit price performance, our unit price has appreciated over 50% since our IPO in 14:40 14 minutes, 40 seconds May of 23. Our unit holder base has expanded to over 70,000 compared to 24,000 at the time of listing, 14:49 14 minutes, 49 seconds reflecting both greater breadth and depth of our investor base. Stepping back, FYI26 delivered record 14:58 14 minutes, 58 seconds performance, demonstrated resilience across cycles and validated every pillar of our growth strategy for financial 15:07 15 minutes, 7 seconds year 27. Uh for which we are now targeting a DPU growth of 9%. 15:15 15 minutes, 15 seconds Lastly, summarizing our performance. 15:18 15 minutes, 18 seconds One, consumption momentum remained robust with double-digit growth in FI26 and we expect the momentum to sustain in 15:25 15 minutes, 25 seconds the coming months. Delivered strong NI NOI growth of 13% in FI26. Sharpened our inorganic growth strategy with introduction of three new pillars. 15:36 15 minutes, 36 seconds Expected to add two to three assets every year to our portfolio. Least four lakh square ft ahead of expiry. 45% of 15:44 15 minutes, 44 seconds our growth centers expected to expire over the next four years with a 20% marktomarket potential. We achieved our 15:54 15 minutes, 54 seconds FY26 distribution guide guidance of INR 9.1 16:00 16 minutes per unit 9.1 per unit and we expect to distribute 9.8 16:07 16 minutes, 7 seconds to 10 per unit 9.8 8 rupees to 10 rupees per unit in FI27. 16:15 16 minutes, 15 seconds With that, let's now move on to the Q&A session. 16:20 16 minutes, 20 seconds Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press 16:27 16 minutes, 27 seconds star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are 16:36 16 minutes, 36 seconds requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 16:46 16 minutes, 46 seconds We'll take our first question from the line of Mohit Agraal from IIFL Capital. Please go ahead. 16:53 16 minutes, 53 seconds Yeah, good evening everyone and thanks for the opportunity. Uh my first question is on your guidance. uh when I 17:00 17 minutes look at the 7% NY growth guidance at mid midpoint level uh can you break that down into uh what is the contracted 17:10 17 minutes, 10 seconds growth assumed here what is the uh rev share marktomarket gains and the marketing initiatives you could kind of 17:17 17 minutes, 17 seconds uh give some breakdown uh and also what is the implicit consumption growth that you assume here for the 7% 17:27 17 minutes, 27 seconds okay uh Pratik you want to Yes. So Mohit on the NY uh guidance I think the way we 17:34 17 minutes, 34 seconds kind of break it down is at least 90% of because it's like 10 11% of our rentals that have that mark to market. The 17:41 17 minutes, 41 seconds balance rentals typically would grow at about four 4 and a.5% which is the the annual escalation. So annually compounded 15% every 3 years that gives 17:50 17 minutes, 50 seconds you about 4 and a.5% growth. uh we get uh typically a 20% mark tomarket on the 17:57 17 minutes, 57 seconds on an average about 10% rentals expiring uh every year. So that gives you about 2% growth. So that takes you to about 18:04 18 minutes, 4 seconds six and a half uh and then depending on on the on the uh consumption growth that we forecast we get the balance uh uh 18:13 18 minutes, 13 seconds growth uh which takes it closer or just about above seven. uh there's that answer on the NOI front. On the 18:22 18 minutes, 22 seconds consumption front, I think the the assumption is about 8% standard growth which is what we've assumed or what we've achieved in the past is what we'll kind of project for the future as well. 18:32 18 minutes, 32 seconds So 8% consumption growth is what we uh been planning in FI27. 18:38 18 minutes, 38 seconds Yeah. Uh so Pratik but uh then uh have you also considered the impact of the acquisitions because this uh the 18:46 18 minutes, 46 seconds headline 7% number seems to be a uh considering that the consumption growth has been so strong it looks to be a little bit of an are we being conservative here and do you think that 18:54 18 minutes, 54 seconds there's uh you know we could see surprises on this one on the positive side. 19:00 19 minutes Yeah. So first of all uh this is organic no acquisition wasted uh the year and um 19:06 19 minutes, 6 seconds to answer your question honestly uh yes you know this is a year where all of us have to be a little cautious I would imagine because of whatever is 19:15 19 minutes, 15 seconds happening around the world. Uh like I said April may have been very good and we do hope that this kind of a consumption trend will continue but you 19:24 19 minutes, 24 seconds were right we have uh actually been a little conservative. The original uh model is around 8 or 9%. And uh the 19:32 19 minutes, 32 seconds intent would still be to ballpark get into uh those numbers. 19:38 19 minutes, 38 seconds Okay. Okay. That explains uh the second question is on your uh the like for like uh 15% for fourth quarter and 9% for 19:47 19 minutes, 47 seconds FI26. Uh could you give that number if you exclude the non-revshare segments like jewelry or maybe some part of FC? 19:57 19 minutes, 57 seconds uh uh your sorry electronic sorry uh where would uh that number after excluding those segments 12% 20:05 20 minutes, 5 seconds 12% for fourth quarter and for 26 about uh 14% four light for light for life 20:13 20 minutes, 13 seconds light for that would be around I would imagine 8% seven or 8% 20:20 20 minutes, 20 seconds okay perfect and my last question is uh on select city mall uh over the last three four years uh the rental growth uh 20:29 20 minutes, 29 seconds is has been kind of sub 5% peranom. Uh if you could explain how to understand that has that mall achieved some sort of 20:37 20 minutes, 37 seconds a uh you know maturity or or what kind of initiatives you are taking to kind of uh uh speed up the rental growth from here on. 20:45 20 minutes, 45 seconds I'll request Ner to answer this question. 20:48 20 minutes, 48 seconds Hi Mozer. here on u the rental growth in select city we've actually uh the rentals were very high so we changed the 20:57 20 minutes, 57 seconds loading so when you uh look at the per square foot rentals they show 3 4% on the loaded area but if you actually take 21:05 21 minutes, 5 seconds it on the carpet area they have increased almost 8 9% uh in terms of uh so we are still getting very healthy 21:13 21 minutes, 13 seconds spread uh in in terms of the overall rental outflow And that's kind of contributing to the annoy growth as well. 21:23 21 minutes, 23 seconds Yeah. And I think the other thing is uh in uh uh select there are large number 21:29 21 minutes, 29 seconds of or reasonable number of uh international brands which are on revenue share. So it's not just uh you 21:37 21 minutes, 37 seconds know uh the MG the rev share also goes up as they grow. And what we're seeing now is some resurgence of uh you know 21:45 21 minutes, 45 seconds brands like Zara and H&M and so on and so forth. Um and my sense is that uh 21:52 21 minutes, 52 seconds select also will perform better in uh FI27 in terms of rental improvement overall MG plus uh revshare. 22:04 22 minutes, 4 seconds Okay, great. Uh thanks a lot. Those were our questions. Thank you. 22:09 22 minutes, 9 seconds Thank you. [clears throat] We'll take our next question from the line of Sumit Kumar from JM Financial. Please go ahead. 22:17 22 minutes, 17 seconds Hi. Uh good evening sir. U thanks for the opportunity. Uh my first question is on uh you know the followup to the last 22:24 22 minutes, 24 seconds one. Uh jewelry as a category has been doing well for the last two quarters. uh so how does that translate into rental 22:32 22 minutes, 32 seconds growth and does that uh translate into rental growth or uh I mean it's uh sort of dependent on expiry and then you know 22:41 22 minutes, 41 seconds uh a mark to market or sort of a releasing spread on that so jewelry uh now is about 7% of our 22:49 22 minutes, 49 seconds business uh in March in quarter 4 uh two questions you asked what happens to rentals uh just to give you a sense uh 22:58 22 minutes, 58 seconds typical rentals on let's say uh fashion brands is anywhere between 140 to 160 rupees a square foot. Uh whereas for 23:06 23 minutes, 6 seconds jewelry it is 280 rupees to 300 rupees a square foot. So that is the kind of uptake that you see once you uh you know 23:16 23 minutes, 16 seconds redit. Secondly unlike fashion which occupies a lot of space uh jewelry doesn't occupy much space. So even today 23:23 23 minutes, 23 seconds maybe about two 2 and a half% of our GLA would be jewelry accounting for 7%. And accounting for per square foot rentals 23:31 23 minutes, 31 seconds which are twice of uh the fashion average and probably close to three times our overall average 23:38 23 minutes, 38 seconds and and Sumit the other point is I think when we focus on some of these high value categories right uh these categories not only enhance the overall 23:47 23 minutes, 47 seconds mall sales but they also improve the quality of the footfalls. uh they strengthen the overall category mix. 23:54 23 minutes, 54 seconds They also elevate the overall look and feel of the mall. So all of this actually creates a positive rub off effect on some of the other categories 24:02 24 minutes, 2 seconds as well. Uh and kind of we witnessed some of that uh on Akshai Rita as well. 24:07 24 minutes, 7 seconds So when when kind of when we looked at when we compared Akshai Rita this year versus Axel Rita last year, we saw that 24:14 24 minutes, 14 seconds with the increase in salience of jewelry brands in our portfolio that actually had a ruboff effect on some of the other 24:22 24 minutes, 22 seconds categories and the share of growth on that day for some of the other categories was as high as 54%. So we we 24:30 24 minutes, 30 seconds were like I mean that was the thesis of increasing some of these high value categories and it just kind of got validated uh when we kind of looked at axity safe. 24:39 24 minutes, 39 seconds Yeah. So the the fact is that you know from a consumer perspective if there is no jewelry in a mall on occasions like 24:47 24 minutes, 47 seconds axitrity or if you are shopping for a wedding or for any other occasion you would probably go to the high street and buy and hence the mall would lose that 24:56 24 minutes, 56 seconds footfall. not just for jewelry but for all uh products and categories. Uh so that's what we have seen that uh even on 25:04 25 minutes, 4 seconds axity the growth uh without uh jewelry was also upwards of 45%. So what it has 25:12 25 minutes, 12 seconds done is brought in better quality footfalls. People who obviously come to buy gold but also want to then spend 25:19 25 minutes, 19 seconds time maybe buy some stuff for the kids, eat a little bit. FnB went through the roof that day and so on and so forth. So 25:26 25 minutes, 26 seconds I think there's a positive rub off. Uh the immediate ruboff like I said is the fact that you know the trading densities are 10 times of what it is for fashion. 25:37 25 minutes, 37 seconds uh rentals are at least twice if not two and a half times and the fact that you're getting exceptionally 25:45 25 minutes, 45 seconds uh high number of footfalls because if you have the full line of jewelry which we have for example now in Ilante we 25:54 25 minutes, 54 seconds have that in Seawwoods uh then the uh axis customer is very happy to come uh to the mall and and spend the day there. 26:05 26 minutes, 5 seconds Sure sir. Uh fair enough. Uh my second question will be on the Kolkata acquisition diamond plaza. Uh what was 26:12 26 minutes, 12 seconds the strategic rational of doing this acquisition because this asset is uh on the smaller side. So is it entry to the 26:20 26 minutes, 20 seconds market or anything else that you know uh you have looked at? Smaller size relatively smaller. Which one? 26:28 26 minutes, 28 seconds Diamond. Oh, diamond. Diamond. Diamond. Yeah. 26:30 26 minutes, 30 seconds Yeah. Yeah. No, fair question. I think uh if you look at east our presence has been very very limited. Uh we've had one 26:38 26 minutes, 38 seconds mall very well performing mall in Bhneshwar and otherwise our footprint in the east like most big mall operators is 26:47 26 minutes, 47 seconds has been very weak. So as you know we uh Blackstone bought the South City Mall 26:54 26 minutes, 54 seconds which is the best operating asset and uh Diamond Plaza is being uh the DD is done and hopefully that'll come into the 27:02 27 minutes, 2 seconds fold. So we've tried to build a portfolio. Sometimes what happens and this is a very well performing mall while it is small is that when you're 27:09 27 minutes, 9 seconds looking at a portfolio in a city there's only that much that you can buy and this is one of the assets that was doing 27:16 27 minutes, 16 seconds well. So we certainly did buy it and we're also looking at the other cities as well in the eastern part because 27:23 27 minutes, 23 seconds there is a lot of growth happening in the east and uh over the next three to five years if we have to double our portfolio and our business I think we 27:32 27 minutes, 32 seconds will have to be we'll have to have a strong presence in the east as well and I think sumit I think more from a from a investment highlight standpoint 27:40 27 minutes, 40 seconds right I think Kolkata uh has limited supply uh of of retail space per capita and that's lowest amongst some of the 27:49 27 minutes, 49 seconds major metropolitan uh markets that are there in India. So from a from a market standpoint there isn't good retail space. I think second is the location of 27:58 27 minutes, 58 seconds this mall. It was pretty centric in northern Kolkata and in a dense uh residential catchment area which which actually works. Now I think there is 28:07 28 minutes, 7 seconds enough uh uh upside here possible. uh it seems to be uh not a very well-managed mall and therefore there's there's 28:14 28 minutes, 14 seconds upside potential possible which is typically the nexus way of acquiring and then turning around a mall. So I think 28:22 28 minutes, 22 seconds we'll while we'll come up with more specifics once we close the transaction uh in quarter two uh I think this is what we can share at this point of time. 28:33 28 minutes, 33 seconds Sure. Thank you and all the best. Thanks. Thank you. 28:38 28 minutes, 38 seconds Thank you. Before we take the next question would like to remind participants to ask a question please press star and one on your phone. 28:46 28 minutes, 46 seconds Next question is from the line of Purve Kazi from Noama group. Please go ahead. 28:52 28 minutes, 52 seconds Uh hi good evening. Uh thanks for the great set of uh couple of questions from myself first and we've obviously 28:59 28 minutes, 59 seconds delivered strong consumption growth both in Q4 as well as in FI26. 29:05 29 minutes, 5 seconds uh you gave a category wise uh description of that uh looking at other way what would have 29:13 29 minutes, 13 seconds been let's say contribution of footfall growth versus higher trading density 29:19 29 minutes, 19 seconds which led to this kind of a convention okay so footfall growth in the quarter 29:27 29 minutes, 27 seconds uh if you see the numbers around seven odd percent and uh if you look at and I'm now looking at the overall number uh 29:35 29 minutes, 35 seconds growth has been around 14 15% in terms of consumption. Uh so two things one is 29:43 29 minutes, 43 seconds that uh yes football growth has helped especially because I think a lot of these footfalls were movie footfalls you 29:50 29 minutes, 50 seconds know and that does lead to better uh consumption of entertainment. Um on the other hand I think higher value 29:59 29 minutes, 59 seconds categories like jewelry like electronics beauty those are the categories that are helping us build build the trading 30:08 30 minutes, 8 seconds density as well. Like I said jewelry for example has anywhere between 16 to 20,000 rupees TD per square foot. Uh and 30:17 30 minutes, 17 seconds fashion would have around 2,000 rupees a square foot. So TD also gets built. Area required is low and uh yes uh the 30:25 30 minutes, 25 seconds footfall growth my sense is a lot of it actually did come from better performing uh cinemas and that obviously helps the rest of the categories as well. 30:38 30 minutes, 38 seconds Uh so you said 7% was football you gave another number of 14 15% uh I mean what 30:44 30 minutes, 44 seconds was that that was trading density or consumption condensed okay sure uh the second 30:52 30 minutes, 52 seconds question is I mean you said April may have have been strong like March was uh has there been any change in consumption patterns 31:01 31 minutes, 1 second in terms of categories in let's say April May compared to let's say anytime in F6 A April because of Axitria 31:08 31 minutes, 8 seconds obviously Jul did extremely well and that contributed to the growth but Axitria growth also as Pratiki pointed 31:18 31 minutes, 18 seconds out earlier half of the growth came from jewelry the other half came from all the other categories and all the other categories if you exclude uh jewelry the 31:27 31 minutes, 27 seconds growth was 40%. So it's across categories that there has been a growth. 31:31 31 minutes, 31 seconds Uh number two uh you know second part of your question was around uh uh 31:39 31 minutes, 39 seconds no I mean you did well in yeah so in May in May for example there is no jewelry upside in the sense that 31:46 31 minutes, 46 seconds yes we will have more stores so there will be some upside but there's no and yet in the first 15 days and as you know 31:53 31 minutes, 53 seconds through our uh you know uh daily reporting system we get sales every day I think as of yesterday we about high 32:02 32 minutes, 2 seconds double digit growth uh in May as well uh without uh jewelry actually uh contributing very significantly to that 32:11 32 minutes, 11 seconds growth. So my sense is that April certainly uh some of it was the fact 32:17 32 minutes, 17 seconds that you know we had more stores etc and of course the fact that Durunda 2 uh 32:24 32 minutes, 24 seconds did extremely well in April as well. So yeah uh in May apart from a couple of Hollywood movies I don't think anything 32:32 32 minutes, 32 seconds significant has happened in the first uh few uh weeks but yeah overall consumption still remains uh quite 32:40 32 minutes, 40 seconds strong also uh there is another point of view uh and maybe you know you'll have some sense of it from other people as 32:49 32 minutes, 49 seconds well is that you know there is a a large uh consumption uh improvement in the domestic market 32:56 32 minutes, 56 seconds prim primarily on account of what we believe and it's hypothesis maybe we're wrong is that you know there's 97,000 33:03 33 minutes, 3 seconds crores of international travel and holidays which have not happened at all 33:10 33 minutes, 10 seconds because of uh various problems and the fact that AFS was et so out of that 97,000 33:17 33 minutes, 17 seconds I would have imagined that some of it would have gone into investments but looking at the stock market again not so sure how much of that would have gone 33:26 33 minutes, 26 seconds there. So a large part of it and I don't have a firm number but I do believe that a substantial part of that uh is also 33:35 33 minutes, 35 seconds coming to consumption especially in malls. So imagine a family with young kids who had planned to go overseas on holiday but because of you know the cost 33:43 33 minutes, 43 seconds and unable to do it. So what would they do when on a weekend you would take your kids out they would not be sitting at home. Uh holidays have started so what 33:51 33 minutes, 51 seconds do you do? you take them to the mall and uh you will eat and you will spend some time and to my mind I think this is 33:59 33 minutes, 59 seconds where the share of wallet of the malls um has actually improved uh in terms of uh overall uh consumption. 34:12 34 minutes, 12 seconds Sure. Uh and last question uh I mean we all we have a very strong acquisition 34:19 34 minutes, 19 seconds pipeline uh now I believe yields in the market have already started rising uh so from a timing perspective 34:27 34 minutes, 27 seconds uh I mean what's our thought process do we wait to get maybe better cap rates at the time of acquisition or we still go 34:36 34 minutes, 36 seconds ahead I mean what's our thought process towards that uh perv the way we've also called this out in the past we typically like to 34:44 34 minutes, 44 seconds maintain at least a 150 to 200 bit spread between uh the cap rates that we trade at versus the cap rates that we acquire. Historically, whatever we've 34:53 34 minutes, 53 seconds acquired has been in that range of 9 and a half% closer to 10%. I think that's how we'll kind of also look at deals 35:01 35 minutes, 1 second going forward. Uh obviously uh with the interest cost kind of going up, we'll we'll be very prudent at what cap rates 35:08 35 minutes, 8 seconds we acquire. Uh but yeah, I think we've we've now got multiple other levers apart from just third party acquisitions that we're kind of looking at and I 35:17 35 minutes, 17 seconds think as we add add some of those levers uh into the portfolio, you'll see uh the funnel in of assets coming into the 35:24 35 minutes, 24 seconds portfolio being much much larger uh going ahead. Sure. Uh thanks and all the best. 35:32 35 minutes, 32 seconds Thanks Louis. Thank you. 35:34 35 minutes, 34 seconds We'll take our next question from the line of Goro Kandelwal from JP Morgan. Please go ahead. 35:40 35 minutes, 40 seconds Hi, thanks for taking my question. Good evening. I've got a couple of follow-ups on the Kolkata uh kata acquisitions. One 35:48 35 minutes, 48 seconds on the diamond city acquisition, what is the kind of acquisition cap rate that we are looking at? So, we've paid 350 35:55 35 minutes, 55 seconds crores but where is the you know roughly that's number one. Number two, on the same asset let's say we are able to 36:02 36 minutes, 2 seconds close it by first half of the year. How much upside would it imply to our NOI DPU for the full year? 36:11 36 minutes, 11 seconds Uh G, we haven't still closed the transaction. It's still in the process. 36:15 36 minutes, 15 seconds It will take a few more months to close it. Uh and hence we'll not be able to of get to the exact cap rates uh and upside. Uh that would be possible. It 36:24 36 minutes, 24 seconds will depend on when the asset comes in and what's the balance period that the asset remains uh with us in the year. uh but directionally what we we've spoken 36:33 36 minutes, 33 seconds about uh uh it being acquired at a purchase consideration of close to about 347.5C 36:39 36 minutes, 39 seconds cr uh and the cap rates will be similar to the range that I had indicated earlier saying it will be in those those 36:47 36 minutes, 47 seconds kind of cap rates so uh expect it to be in that range uh but the exact nuances the details around what will be the GPU 36:55 36 minutes, 55 seconds accretion etc will probably come out when we actually close the transaction we'll we'll put up a presentation on it. 37:03 37 minutes, 3 seconds Got it. And secondly, uh can I check is there an update on the South City Mall asset as well in terms of acquisition timeline? 37:11 37 minutes, 11 seconds Uh not at this point of time. Uh uh but yeah, I think it should at some point of time come into our portfolio but uh 37:20 37 minutes, 20 seconds there isn't a firm timeline to it. So I think the only update is that a lot of issues that were there um you know 37:28 37 minutes, 28 seconds including Sri Lanka property Dubai etc are getting sorted out and I think that's the good news exactly when this 37:35 37 minutes, 35 seconds will happen we just have to wait a time got it but can we do we have a sense of 37:41 37 minutes, 41 seconds that closes in FI27 itself or could it extend to FI28 no directional sense to I think another couple of months we'll be able to tell you and give you better. 37:53 37 minutes, 53 seconds Okay. All right. Thank you so much. Those are all my questions. 37:58 37 minutes, 58 seconds Thank you. Next question is from the line of Girish Chri from Aendas Spark. Please go ahead. 38:04 38 minutes, 4 seconds Yeah. Hi. Uh uh thanks for the opportunity. Um firstly on all the relays and spreads uh we have generally 38:12 38 minutes, 12 seconds seen a healthy 18 to 20%. Um so and and also uh if if I look at the expiries 38:21 38 minutes, 21 seconds coming in you're more or less guiding for that. So I just wanted uh to understand from your conversation with 38:27 38 minutes, 27 seconds with tenants uh do you think the current spreads are uh structurally sustainable or are we approaching uh affordability uh thresholds for certain categories? 38:42 38 minutes, 42 seconds Hi Nza here. uh u I think you know the stage that we are we will sustain that if you see our 38:49 38 minutes, 49 seconds track record in the past we've kind of sustained that including tough years through co uh currently we see no 38:56 38 minutes, 56 seconds pressure um you know in the conversations retailers are still upbeat in terms of offtake uh expansion of 39:04 39 minutes, 4 seconds spaces the portfolio is also very well leased at 97% plus so u you know uh that 39:11 39 minutes, 11 seconds also helps us to kind kind of uh you know manage the demand better. uh so no uh pressure there and we are confident 39:19 39 minutes, 19 seconds of maintaining similar strengths and Gish if you kind of look at slide 16 that we we kind of called out right saying that when you look at supply 39:27 39 minutes, 27 seconds there isn't uh near-term grade supply in our markets especially in the primary catchments that we are present in and a lot of the supply that's coming one it 39:36 39 minutes, 36 seconds is backended and and expected to comes only in 2028 uh and that also is like limited to about three or four cities 39:44 39 minutes, 44 seconds right so three four cities would have that not in our primary catchment but the cities are large enough to have it at the same time a lot of it is going to 39:52 39 minutes, 52 seconds come only in 2028 so I think we we kind of pretty confident that we can maintain this 20% mm market run rate uh going 40:01 40 minutes, 1 second ahead as well got that's useful um secondly on on the 40:08 40 minutes, 8 seconds strategic churn and and the portfolio optimization I I see that you've already released around4 million seat ahead of 40:16 40 minutes, 16 seconds expiry. So I just wanted to understand at the portfolio level uh how should we see uh in terms of identifying more such 40:24 40 minutes, 24 seconds opportunities and uh can can this uh become a a slightly larger part of the NY growth which is which is not baked in. 40:35 40 minutes, 35 seconds Uh right Girish uh nar here uh I think you know when we build in our AOPS we factor in uh some of this even last year 40:44 40 minutes, 44 seconds you know uh what we did uh in terms of the point4 and the overall 1 million activity our natural expireies were just 40:52 40 minutes, 52 seconds about 600,000 and we did 1 million so it's kind of built in into our plan uh based on timing uh which particular mall 41:01 41 minutes, 1 second needs attention so we kind of creating those opportunities in the coming year as well. And um you know and this year 41:09 41 minutes, 9 seconds we are aiming higher than that looking at the expiry schedules uh and in fact some very interesting uh new brands that 41:18 41 minutes, 18 seconds we are bringing to each of our respective malls in this plan and I think typically whatever is the expiry 41:25 41 minutes, 25 seconds natural expiry that comes up the area you can you can kind of safely assume that you typically do about 20 25% more 41:33 41 minutes, 33 seconds than what that natural expiry is. So uh I think on an overall basis uh we we end 41:40 41 minutes, 40 seconds up doing anywhere between 1.3 to 1.5 depending on the year. Got it. Okay. 41:48 41 minutes, 48 seconds Yeah. Um yes. So those were my questions. Thank you on the very Thank you. Next question is from Jatin from Bank of America. Please go ahead. 42:00 42 minutes Hi. Uh good evening. Uh thanks for the opportunity. uh wanted to check with you on your uh plans for uh you know your 42:07 42 minutes, 7 seconds debt mix uh for the next year. Uh last quarter we were roughly at 52% floating and that that has actually gone up to 59% 42:16 42 minutes, 16 seconds uh and with some expectations on the street that rates might go uh up. uh what's the plan on this front and how 42:24 42 minutes, 24 seconds much uh in your uh current DPU guidance of 9% how much uh increase in interest uh cost are you paying uh for FI27 42:36 42 minutes, 36 seconds so if you look at the floating has gone up because the Bajage finance loan that we taken we've taken a uh top up to kind 42:44 42 minutes, 44 seconds of repay the commercial papers that we were carrying hence the floating has gone up and uh [clears throat] if you look at The interest has come down to 42:52 42 minutes, 52 seconds around 7.3 and we are saving around 25 to 30 crores annually. So the annual budget that we have prepared is basis of 43:01 43 minutes, 1 second 7.5% uh rate of interest. 43:08 43 minutes, 8 seconds Understood. Got it. Uh very clear. And finally bookkeeping one uh for the full year how much was the uh uh LFL NI growth? Thank you. 43:18 43 minutes, 18 seconds 426 FI 26. 426. Yeah, for 7%. 43:23 43 minutes, 23 seconds Okay, sure. Thank you so much. All the best. 43:27 43 minutes, 27 seconds Thank you. Next question is from the line of Sedart S from Napa. Please go ahead. 43:34 43 minutes, 34 seconds Uh I'm sorry you're sounding muffled. Sed 43:47 43 minutes, 47 seconds No, it is still muffled. Sad. 43:51 43 minutes, 51 seconds I think your network coverage is not proper. 44:02 44 minutes, 2 seconds We can't we can't hear you. Very very muffled voice. 44:13 44 minutes, 13 seconds Uh I don't know. No sed you want to reach out to us separately because the voice is really muffled. We really can't hear you. 44:23 44 minutes, 23 seconds Yeah, that would work. Sure. Thank you. 44:31 44 minutes, 31 seconds That was the last question of our question and answer session. As there are no further questions on behalf of Nexus Selects that concludes this 44:38 44 minutes, 38 seconds conference. Thank you for joining us and man this connect your line. 44:42 44 minutes, 42 seconds Thank you. Thank you. Thank you to