Mall REIT Units or a Second Flat? Nexus Select Trust's 2025-26 Numbers
Money parked in a second flat could instead buy units in a listed mall portfolio. Nexus Select Trust, which pioneered retail REITs in India, makes that choice easy to study. For 2025-26 its unitholders were paid roughly Rs. 9.1 on each unit, and the following quarter paid more.
The trust runs four malls in Bangalore. Below are its numbers, the logic of mall rent and the trade-offs against a flat that is let to a tenant.
Where the Trust Stands
Results for the quarter ending March 2026 came out on 12 May 2026. They show a steady business with rising rent and sales.
The last quarter's payout worked out to Rs. 2.286 on each unit, and the full year closed near Rs. 9.1, up 9%. Retail net operating income reached Rs. 440 Crore, 11% higher, while sales made by tenants grew 19%. Occupancy stayed at 97%, a level held for twelve quarters since listing.
Borrowing is light at 18% of asset value, at 7.3% interest on average, and the rating is AAA with a stable view. Each unit was backed by net assets of Rs. 164 on 31 March 2026. The target for 2026-27 is Rs. 9.8 to Rs. 10 for each unit, and the board cleared Rs. 2.442 for each unit for April to June 2026 in its meeting of 3 August.
Assets Behind the Units
Fifteen cities host the trust's 19 Grade A malls, which offer 10.7 million sq ft for lease. A hotel arm of 450 rooms in three properties and offices of 1.3 million sq ft in three buildings complete the list. About 1,100 brands run over 3,200 stores in these buildings.
The four Bangalore assets will be familiar to local investors. They are the Whitefield, Koramangala and Shantiniketan centres, and Vega City out on Bannerghatta Road. During 2025-26 it integrated Vega City and the MBD Complex. A Kolkata mall named Diamond Plaza has been announced as a purchase, and the stated aim is a portfolio twice today's size by 2030.
How Mall Rent Differs From Office Rent
A REIT gathers rent from its buildings and returns the larger part to those who hold units. Buying is done through a demat account on the NSE or the BSE, exactly as with shares. One purchase gives a small interest in many buildings.
Office landlords sign long leases with companies. A mall landlord typically fixes a minimum rent and adds a share of each shop's turnover. When shoppers spend, the rent grows with them.
The same link works in reverse. Shop sales grew by 19% in the January to March 2026 quarter, which helped. A poor festive season or a move to online shopping would reduce the payout.
Taxes Hidden in One Payout
A distribution is not a single type of income. The June 2026 payout, Rs. 2.442 for each unit, was made of Rs. 1.041 of interest, Rs. 0.861 of dividend, Rs. 0.537 from debt repaid by the mall companies and Rs. 0.003 of other income.
Interest carries tax deducted at source, then joins the investor's other earnings at the slab rate. The other parts follow the treatment shown in the trust's notice for that payout. Anyone comparing the net figure with rent should ask a tax adviser first.
A Flat and a Unit Compared
Both give property-linked income, yet they differ in almost every practical way. A unit costs no more than one share, can be sold on any trading day and is repriced daily. The investor cannot use the malls or influence how they are run.
A flat means paying the entire cost along with stamp duty and registration, although a home loan can fund much of it and brings tax benefits. Rent arrives monthly, less maintenance, empty months and repairs. Selling can take months, and the value is only tested at the sale.
Compared with the Rs. 164 book value, the 2025-26 payout is about 5.5%. Real returns depend on what the buyer pays in the market, and nothing is promised. A flat can be occupied or left to children, and it earns through rent and appreciation.
Sensible Precautions
These are market-linked investments. Read the trust's filings for results and payout history, and note how far the unit price is from book value. Watch occupancy, tenant sales and the share of debt, because each affects the rent or the risk.
Plan to hold for several years, since the units suit steady income and not short trades. Past payouts say little about future ones, so a first-time buyer should begin with a modest amount that a price fall cannot upset.
Choosing Between the Two
For most families, a place to live comes ahead of any investment. Units fit an owner who wants more property income without managing tenants or taking another loan. They also divide the money among cities and among malls, hotels and offices.
Anyone who wants an asset to use, pledge for a loan and bequeath will keep preferring a flat. Tenants cluster near big employment areas such as Whitefield and Koramangala. To see the monthly cost of a home at a chosen price, use the EMI calculator and set that against likely rent.
