- Date : 23/06/2023
- Read: 3 mins
Nexus Select Trust REIT's successful debut on the stock market and attractive commercial property portfolio have investors considering their options for potential returns.
- Nexus Select Trust REIT has made a successful debut on the stock market, generating interest among investors.
- The REIT owns a portfolio of commercial properties, including office buildings, retail spaces, and industrial properties, with a strong presence in major cities.
- The REIT received a warm response from investors during its IPO, with a subscription rate of 5.45 times and trading at a premium on local bourses.
- Analysts recommend holding onto allocated shares, anticipating steady returns and suggesting a short-term target price for potential growth.
Nexus Select Trust REIT has recently made its debut on the stock market, and investors are wondering what to do with their shares. The REIT, which specialises in commercial real estate, had a warm listing, with its shares trading at a premium to the IPO price.
So, what should investors do now?
What is REIT?
A REIT, or Real Estate Investment Trust, owns and operates income-generating real estate holdings. You can invest in a REIT by purchasing shares, following which you will receive a stake in the underlying properties and a share of the rental revenue generated by those properties.
Also Read: All your questions about REITs answered
What is Nexus Select Trust REIT?
Nexus Select Trust REIT owns a portfolio of commercial properties, including office buildings, retail spaces, and industrial properties. They are amongst the leading mall platforms in India, consisting of 17 top-notch properties strategically positioned in 14 major cities.
Their portfolio includes 17 high-quality urban shopping centres with a combined leasable area of 9.2 million square feet. Additionally, it features two complementary hotels with 354 rooms and three office buildings spanning 1.3 million square feet as of December 2022.
In the past three fiscal years, Nexus Select Trust has successfully leased 4.2 million square feet of space, attracted 408 new brands as tenants, and achieved a commendable average rental growth.
Highlights of Nexus Select Trust REIT's positive listing
- Nexus Select Trust REIT received a warm response from investors, trading at a premium of 3% on local bourses.
- The public issue raised Rs. 3,200 crore, with Rs. 1,400 crore utilized for debt repayment and stake acquisition.
- Analysts predict robust demand for the REIT, advising investors to hold on to their shares and consider accumulating more.
- A short-term target of Rs. 115 per share is predicted, with steady returns anticipated and a recommended stop loss of Rs. 97.
Also Read: Discover how the latest tax proposal impacts REITs and InvITs
Parting thoughts
Nexus Select Trust REIT's positive listing and its warm reception among investors highlight its promising future. With a strong portfolio of commercial properties and positive market performance, the REIT has garnered substantial interest and is currently trading at a premium.
Analysts predict continued demand and advise investors to hold on to their shares, anticipating steady returns and suggesting a short-term target price. As investors consider their options, adopting a patient approach can lead to potential benefits from the promising performance of Nexus Select Trust REIT in the future.
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