Mall REIT Units Against a Rented Flat: Nexus Select Trust's 2025-26 Payout
Owners of a Bangalore flat often wonder whether mall units on the stock exchange could earn them rent with less trouble. The listed vehicle Nexus Select Trust, India's pioneer in retail REITs, is a useful case to study. Unitholders received close to Rs. 9.1 for the year to March 2026, and the quarter after that paid more.
Four of its malls are in Bangalore. What follows covers the reported results, the way shop rent becomes a payout and a plain comparison with a flat on rent.
Units Versus a Flat: The Short Comparison
The two options are easiest to judge side by side, so here is the comparison first:
| Point | REIT units | Rented flat in Bangalore |
|---|---|---|
| Money needed | Price of one unit to begin | Entire price, with stamp duty and registration on top |
| Cash received | Quarterly payout from the trust | Monthly rent after maintenance, vacant months and repairs |
| Exit | Sold on the exchange the same day | A buyer hunt that may last months |
| Valuation | Quoted every trading day | Tested only when the flat is sold |
| Control | Held by the manager, not the investor | Complete: live in it, let it, renovate or pass it on |
| Borrowing | Typically bought with savings | Home loan with tax benefits available |
A flat gives a roof, an inheritance and security for a loan. Units offer none of those, yet they ask for no upkeep and sell fast. Each route suits a different goal.
What the Trust Announced
Figures for the March quarter and the full year were released on 12 May 2026. The final quarter distributed Rs. 346.3 Crore, which is Rs. 2.286 each, and the twelve months added up to nearly Rs. 9.1, a 9% gain.
Net operating income from retail rose 11% to Rs. 440 Crore for the quarter, while sales reported by tenants climbed 19%. The malls were 97% occupied, which the trust has maintained through twelve straight quarters since listing. Loans are 18% of asset value and cost 7.3% on average, and the rating agencies give a AAA with a stable view.
The book value of a unit was Rs. 164 at the end of March 2026. The 2026-27 forecast from management is between Rs. 9.8 and Rs. 10 per unit. The board agreed on 3 August 2026 to pay Rs. 369.96 Crore, which is Rs. 2.442 each, for April to June.
Malls, Hotels and Offices in the Portfolio
Nexus runs 19 top-grade malls spread over 15 cities, together offering 10.7 million sq ft to let. Add three hotels with 450 rooms and three office blocks that total 1.3 million sq ft. Over 3,200 stores belonging to roughly 1,100 brands trade in the malls.
In Bangalore it holds Nexus Whitefield, Nexus Koramangala, Nexus Shantiniketan and Vega City, off Bannerghatta Road. The MBD Complex and Vega City were absorbed during 2025-26. It plans to buy Diamond Plaza in Kolkata and wants the portfolio to double by 2030.
Why Shop Rent Follows Spending
A REIT owns buildings that earn rent, and the bulk of the cash it collects goes to unitholders. Anyone with a demat account can buy them on the NSE or BSE. The investor owns a sliver of many assets rather than the whole of one.
Office tenants sign long leases at agreed rents. Mall tenants generally pay a floor rent and, in many leases, a percentage of what they sell. A strong season lifts the landlord's income, and a weak one lowers it.
Tenant sales grew 19% in the latest reported quarter, which helped the payout. If shoppers cut spending, or move online, the effect would reach unitholders in the same way.
Splitting the Payout for Tax
The payout for the three months to June 2026 had four parts, together Rs. 2.442. Interest came to Rs. 1.041 with tax already withheld, dividend to Rs. 0.861, loans repaid by the companies that own the malls to Rs. 0.537 and other income to Rs. 0.003.
Interest counts as the investor's income and is taxed at the applicable slab. For the dividend and repayment parts, the trust's disclosure for that payout explains the treatment. A tax adviser can confirm what remains after tax before it is set against rent.
On the 2025-26 figures, the payout was about 5.5% of net asset value. A buyer's real return depends on the price paid in the market, and no payout can be promised.
Homework Before Buying
This is an investment in the stock market, so a few checks are sensible. Start with the trust's exchange filings for past payouts and the latest results. Then set the traded price against book value to see the premium or discount.
Occupancy and tenant sales deserve a look since they drive rent, and so does the share of borrowed money, which hurts when interest rates rise. Plan on holding for years instead of trading, and put in a sum that a price fall cannot upset. Beginners in listed property should start modestly.
Who Should Pick Which
Most households want the home they live in first, and units do not replace it. They make sense for people with a home already, who want extra property income minus tenants and repairs. They also spread money over several cities and over retail, hotel and office assets.
People who want something to occupy, borrow against and pass on will still choose a flat. Tenants are plentiful near big employers, for instance in Whitefield and Koramangala. The EMI calculator shows a home's monthly cost at any price, the number to compare with likely rent.
