Nexus Select Trust (BSE: 543913) Q3 2025 Earnings Call dated Feb. 04, 2025
Corporate Participants:
Pratik Dantara — Head, Investor Relations and Strategy
Dalip Sehgal — Chief Executive Officer
Rajesh Deo — Chief Financial Officer
Analysts:
Murtuza Arsiwalla — Analyst
Parvez Qazi — Analyst
Pritesh Sheth — Analyst
Mohit Agrawal — Analyst
Arya Mehta — Analyst
Unidentified Participant
Jatin — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Earnings conference Call of Nexus Electrust for Q3 FY ’25.
As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone form. Please note that this conference is being recorded.
I now hand the conference over to Mr Pratik Dantara, Head, Investor Relations and Strategy from Nexus SelectTrust. Thank you, and over to you, sir.
Pratik Dantara — Head, Investor Relations and Strategy
Thank you. Good evening, everyone, and thank you for joining the earnings conference call of Nexus SelectTrust for the quarter ended December ’24.
Before we proceed further, I’d like to highlight that the management may make certain statements that may constitute forward-looking statements. Please be advised that our actual results may differ materially from these statements. Nexus SelectTrust does not guarantee these statements or results and is not obliged to update them at any point of time. Specifically, any financial guidance and pro-forma information that we will provide on this call are management estimates based on certain assumptions and have not been subjected to any audit review examination procedures. You are cautioned not to place undue reliance on such information and there can be no assurance that we will be able to achieve the same.Joining me today on the call are our Executive Director and CEO, Dalib; our CFO, Rajesh; our CEO, Jain; and our Chief Leasing Officer, Jain. We will start-off with a brief remarks on our business and financial performance and then open the floor for questions.
Over to Dalip. Thank you, Pratik. Good evening, everyone. It’s my pleasure to welcome you to the earnings update call for the 3rd-quarter FY ’25 for Nexus SelectTrust, India’s first listed REIT.
Dalip Sehgal — Chief Executive Officer
Thank you, Pratik. Good evening, everyone. It’s my pleasure to welcome you to the earnings update call for the 3rd-quarter FY ’25 for Nexus SelectTrust, India’s first listed REIT.
Before we delve into our quarterly performance, I thought there are two key points that I want to touch upon. The first one that I think everybody has been talking about in the last few days is what the Finance Minister said in a recent budget speech as she has proposed substantial tax relief, particularly exempting in terms of to INR12 lakhs, which we believe is a welcome move for consumers and the retail industry. The government expects to provide an additional INR1 lakh crores in the hand of consumers through these measures, providing a notable boost to disposable income in the hands of the middle-income consumer, encouraging discretionary spending. So very, very positive for consumer consumption story as we go into this year.
The second one is that if you look at our performance and I’ll talk about quarter three, if you look at our performance over the last nine months, we have remained quite resilient despite a challenging backdrop in consumption growth, and I’ll talk about this later. I’m sure you’ve seen some of the other results in the similar area from different companies and brands.
Coming to our Q3 FY ’25 performance. First, we witnessed a strong financial performance in Q3 FY ’25, where net operating income grew by 6% year-on-year basis in an environment where consumption growth witnessed some green shoots after a soft first-half. While these are early signs, we remain optimistic about improvement in consumption and the impetus provided by the government in the union budget. On the back of this performance, we are delighted to announce our sixth distribution of INR32.7 crores translating to 2.196 per unit, up 10% year-on year. And with this, we have delivered, if you see from the — from the data of listing, we have distributed almost INR20.3 billion and per unit the distribution has been 13, 13.4 to 5 and the delivered total return is upwards of 50% to our unitholders since listing. In the current financial year, we have declared distribution of 6.35 per unit. For FY ’25, we expect the full-year organic distributions. It does not take into account any acquisitions, etc., that we may have. Organic distribution of the current portfolio to be approximately around 8.4 per unit. This is what we see as of now.
Now coming to the operational performance in the quarter, we witnessed a consumption of INR35 billion, which was a growth of 6% year-on-year. This — we observed a quarter-on-quarter improvement in consumption and expect that this momentum will continue. Our Q3 FY ’25 consumption growth is approximately 2.3 times of the growth we reported for the first-half of the year. So first-half of the year, if you recorrect, we had less than 3% and now the growth in consumption is around 6% odd percent, so more than 2%, 2 times higher-growth.
Let me share some category-wise consumptions as well with you. Categories like jewelry, watches, beauty and personal care and family entertainment centers witnessed very strong growth in the quarter and continue to do well. So the jewelry, watches, beauty, personal care and family entertainment centers. Over a period of time, as we have said strategically, we are allocating additional spaces to these categories and we’ll continue to do so as we go-ahead.
We have in the past indicated that we would focus on increasing the contribution of food and beverage, F&B within our portfolio. I’m happy to report that in-line with our objective, we have revamped one of our largest food ports, which is in Chandigarh, Nexus and Nexus in Bangalore. And as a result of whatever we have done in terms of enhancing the experience, the rentals have gone up 2x in both these food. So I think the point that we had made earlier strategically is that a, F&B would become and continue to be important and will become larger as we go-forward. And also with better offering, we would be able to realize better rentals.
Fashion category, which was almost saw no-growth at all-in the first-half of the year, at least in-quarter three, did see low single-digit growth with some of the brands obviously performing better than the others. The value segment overall seems to be still doing is reasonably well.
Finally, as most of you know, cinemas came back this quarter because of a couple of blockbusters that got released in the quarter.
Let me now walk you through our leasing and marketing performance. Leasing performance first. With strong demand from tenants, our leasing occupancy now stands at 97.6%. We have re-leased 0.31 million square feet, which is about 3 lakh square feet at a healthy spread re-leasing spread on the back of robust demand of above 20-odd percent. So this is again something that we had mentioned at the time of the IPO, which is that about 10% of our rentals come up for renewal and we get a mark-to-market spread of about 20%. That continues to be true this quarter as well and in the nine-month period. Our lease expiry over the next three years is around 1 million square feet per annum, which cumulatively represents 40% of our total rentals on which we are confident of achieving 20% spread.
Let me just explain this. Over three years, 3 million square feet will come up for renewal, that’s 30% in terms of area and 40% in terms of rental. And on that 40% of rentals, we hope, of course, you know, to do at least what we’ve done, which is 20% mark-to-market. The demand from both international and domestic players is strong. As far as international brands are concerned, we got the first Foot Locker store into a select City. We’ve got Beauty, we’ve got NAS, Nestro, we opened the Apple store, as you know in Saket,, Tim Hotten and large number of other brands as well, which are waiting in the wings to enter the market. So I think the overall scenario in terms of demand for e-grade space is pretty strong.
In terms of our marketing performance, we continue to invest in technology and customer experience to drive better footfalls in sales growth. Happy to note that after a long-time, we’ve seen a positive footfall growth in-quarter three. Our Nexus One app continues to be one of the best shopping mall apps in the country with a lifetime uploading of bills totaling to upwards of INR1,000 crores, right? And we’ve also got very good traction on the app with 5 lakh million consumer base who have contributed approximately 10% plus of consumption in these malls during April to December. So I think basically two points. One, we now have a base of 5 lakh consumers who are on our loyalty program and the fact is that they’ve uploaded upwards of INR1,000 crores in terms of this. So it is something that is now sizable. And while we are still in 12 malls, we hope to now go to the other five as well as we go-forward.
In this quarter, our marketing team has curated and implemented 17 experience — experiential events like the Toy Factory Clown, Town, Jungle Tails, Winter, Wonderland, Polar Express, etc., etc. So the whole idea has really been to provide experiences which are very different and unique and build footfalls as a result of this. So this is really what has helped us in terms of getting new footfalls as well because families with kids have come in. Our size and scale allows us to plan for pan-India promotions. In this quarter, we published more than 300 print ads and launched multiple digital campaigns reaching 0.5 billion eyeballs. As you also know, we now have Ayushman Kurana as our brand ambassador and he has been part of this entire campaign both over Diwali as well as Christmas and New Year.
In the previous quarter, we had installed India’s first twin stacked anamorphic cubic screens in Hyderabad. I’m pleased to tell you that we have now installed two more of these screens during the quarter in our malls with one in Seawoods, Navi Mumbai and the other in Vijaya. In the coming months, we are planning to install four or five NMO fixed screens across other mall. So again, these are screens that provide a very unique and different experience to the customer and this is the first time that’s being done in any mall in India. This — these cleans have revolutionized the in-mall advertising. And as we speak today, more than 15 brands have tied us with us for advertising. This opens up a new income stream for us.
Balance sheet, now coming to the balance sheet. On debt, I’m delighted to tell you that we have reduced our debt cost by 30 bps year-on-year with annualized saving of INR120 million. On the cost front, we are continuously rationalizing our operating cost. At the like-for-like level, the operating costs have increased by only 3% in an inflationary environment of 5% to 6%. We — the costs have gone up by half of that. And that’s a testimony to the control we have in terms of maintaining our costs under control. On the rental collections, I’m pleased to report that we now are able to reduce the timelines for collection from 12 days from the billing date to five days, which is the lowest in the industry. And in some of the malls, we’ve managed to reach a zero day outstanding. So really is remarkable.
On ESG, which has been an important factor for us over the last couple of years. On the sustainability side, we continue to lead the market with our ESG goals across our portfolio. Approximately 43% of the energy requirement is being now met by renewable resources during the nine months of the year. Year and this is up 1,300 bps compared to last year. We’re also proud to announce that we’ve been recognized as a Great Place to Work for the fifth consecutive year, which is very, which further solidifies our position as a market-leader delivering outstanding value to all stakeholders, including employees.
Let us now share some updates on the proposed acquisitions. I’m sure this is a question that’s been at the top of your mind as well that look, we have announced a set of acquisitions and we are a view on that. I think one of the acquisitions we had announced was City in Bangalore. I think because of issues in the registration and administration, it has got delayed. So I think we are very confident that it will happen quite soon now. On the North India acquisition, we are in the last phase of documentation again and expect to close the transactions.
So just to summarize, we witnessed green shoots in consumption growth in the quarter at 6% growth compared to 3% in the first-half, coupled with the proposed amendments of the union budget where a lot more money will come into the hands of the consumer, we do believe that consumption will pick-up in FY ’26. Leasing demand for our assets continues to remain robust with favorable demand-supply dynamics. We have over nine months seen new brands coming into. Our year-on-year NOI growth was 6% with steady operating cash flows. We have announced a sixth distribution of INR2.196, as I said earlier, up 10% year-on-year. And this since listing is 13.425, giving a return of 50% since. We are expecting to close the acquisition of Vega City soon and in the North as well.
So that’s really a quick snapshot of quarter three and where we are on various strategic issues. So thank you so much for listening to this. And now we can move to the Q&A.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.The first question is from the line of Azizwala from Kotak Securities. Please go-ahead.
Murtuza Arsiwalla
Hi, sir. Just wanted to check, our understanding is that October was a bit more favorable month-in terms of consumption, in terms of the pace and the way the various festival days were.
Dalip Sehgal
Could you your voice is a bit muffled. We can’t hear you very well.
Murtuza Arsiwalla
Is it better now? Slightly better.
Dalip Sehgal
Go on.
Murtuza Arsiwalla
Okay. No, I just wanted to check, October was a little more favorable month if I understand from consumption. So can you help us the 6% obviously is an improvement from first-half. Can you give us like a monthly breakup of how the consumption trends were October, November, December? And if possible how January is trending?
Dalip Sehgal
Yeah. So first of all, as far as the quarter is concerned, please understand that quarter three is typically the festival period. And to give you a breakup, honestly will make no sense because depending on when Diwali and the Serra happened last year and this year, which were in two very different ones. You have to look at October plus November together and then you look at December. So if you look at October plus November, it’s around percent and December also was a similar number. But if I give you October, November separately, makes no sense because the market in very different months.
Murtuza Arsiwalla
Any sense on how any sense we can get on how January is trending?
Dalip Sehgal
Too early to say anything, but let’s wait-and-see because I think the budget announcements also just happen by the time people see the money coming in, maybe the overall mode, etc., will change. So very early days to say anything. Again, I’m not in the favor of looking at a monthly kind of a number. I think it’s always better in a country like India, which is so vast, the festivals happen in different areas. Yeah. So it’s better to look at a quarter, but yeah.
Murtuza Arsiwalla
Thank you so much.
Operator
Thank you. The next question is from the line of Parvesh Kazi from Nuvama Group. Please go-ahead.
Parvez Qazi
Hi, good afternoon. Thanks for taking my question and congratulations a good set of numbers.
Operator
Sorry to interrupt, Mr Parvesh. I would request you to please use your handset.
Parvez Qazi
Hello. Am I audible now?
Operator
Yes, much better.
Parvez Qazi
So wanted to get some update about the proposed acquisitions that we had in Hyderabad. So what is happening there?
Dalip Sehgal
Hi,. Again. So on the Hyderabad piece, we very recently received comment on the draft document that we have submitted to the government because again this government angle there. We had to take comments on the documents from that. Our teams at this point of time are looking into those comments and we’ll be able to share an update on the same once we’ve gone through it. So at this point of time, the comments have come in from them very recently and our teams — legal teams and commercial teams are looking at it.
Parvez Qazi
Sure. Thanks and all the best.
Dalip Sehgal
Thank you.
Operator
The next question is from the line of Pritesh Sheet from Axis Capital. Please go-ahead.
Pritesh Sheth
Hi, thanks. And just couple of questions. So first on consumption, see, not trying to compare, but just wanted to understand difference. One of our peers reported 10% like-for-like growth, ours was 6%. Anything different in terms of how the mix of tenant is in our portfolio — our portfolio versus theirs? And second question is on consumption growth versus NOI growth. Generally, we have been a tad higher. Obviously, I don’t want to look at it on every quarter basis, but you know, this time it was in-line, consumption growth and NOI growth. So what’s the difference versus our past couple of quarters performance on that front versus this quarter?
Pratik Dantara
Okay, let me answer. I think there are two separate questions. The first one is in terms of the of numbers reported by RPR and if you look at it carefully because there’s lot of new malls in that, so even the like-for-like is actually not completely like-for-like. Our understanding and judgment, this is whatever number we have seen is probably between 6% and 7% is the like-for-like comparison. It’s not very different from where we are. Also, in the key cities where both of us are present, I think it is in Bangalore. Bangalore, they have grown at 3%, we’ve grown at 8%. Mumbai, including some additional area that has come into palladium 2,50,000, they’ve grown at 5%. Without that, it’s about 2%. We have grown at 6%. Chennai, they’ve grown at about 3%, we have grown at 8%. Pune, they have grown at 11%. We have grown at — we are flat or marginally negative. And that is the impact of the new mall that has come up in Pune, which is close to the Western Mall. So that’s really the situation where like-for-like, whichever city you talk about, I think we have in effect done better both in the quarter as well as nine months. If you take the nine-month period, Mumbai is 2% for them, 5% for us. Bangalore is negative 1%, we are up 5%. Pune, they are up 7%. We are down 5% because of Akar and Shennai, they are at 3, we are at six, that’s the nine-month position. So don’t want to get into too much of detail, but the fact is that I think the like-for-like growth in cities where, you know both of us have also some period of time, I think we may be achieved better. But having said all that, I think the good news is that overall, both of us have grown at 6% plus 1 like-for-like, maybe in their case, it may be a little bit better. I don’t have obviously access to all the data. But having said all of that, yeah, having said all of that, having said all of that, I do believe that I think it’s the sustainability of whatever growth has happened in-quarter three, which is going to be key as we go-forward. And I think the pillar that will support this growth is the INR1 lakh crores that is coming into the hands of the consumer over the period of a year, but at least in terms of sentiment, it should start pretty soon. That’s my understanding. That was part one of your question.
Part two was that look at this time it’s 6 and 6 earlier, it used to be — we have six, I think NOI growth in nine months. So that’s no different. Yes, we were 2.5% on-top line. I think you — we have explained that in the past as well that if the top-line growth is a little lower, we tend to have lower revenue-share. It doesn’t make too much of a difference, but can make 0.5% difference. So — and that in a sense got covered in the earlier quarters by what we explained to you, which is other sources of income, etc., etc. So like-for-like, I think we have been trending at around 6% growth right from quarter one onwards. Obviously, the top-line of 6% will mean a better revenue-share as we go-forward, yeah.
Pritesh Sheth
Got it. That’s really helpful and thanks for a very detailed answer on the first one. That’s it from my side and all the best.
Pratik Dantara
Thank you. Thank you. Thank you.
Operator
Thank you. The next question is from the line of Mohitta Agrawal from IIFL Capital. Please go-ahead.
Mohit Agrawal
Yeah. Thanks for the opportunity. My first question is if you could — so for the 3rd-quarter, what has been the footfall growth like?
Dalip Sehgal
1%.
Mohit Agrawal
1%?
Dalip Sehgal
A negative in the first-half.
Mohit Agrawal
In the first-half. Okay. My second question is on — you’ve highlighted the marketing initiatives that you’re taking in your portfolio and I see some of them are ticketed. You mentioned some revenues as well. So is the objective to increase footfalls and thereby consumption growth or do you plan to separately monetize these events in a meaningful way? And if yes, what can we expect as a share of the non-rental marketing events as a percentage of your total NOI or revenues, if you could give some color around that.
Dalip Sehgal
Okay. So without getting into too many details because this has just started, I think the whole attempt is to bring in better-quality footfalls and more footfalls. So any, let’s say, event that you do, there’s a cost to it. So let’s assume last year, we were eventing at about INR100 per event. This year, we are saying we will spend more, we will have better engagement and we’ll spend 150. Where will that 50 come from, part of it will come from ticketing. And believe me, meaning some of these experiences are so, so different that our kids and parents, etc., very more than willing to do it. How large will all of this become? We’ll have to see as we go along. I think it’s still early days, but the fact is that there are three, four streams of income that is based on higher. So there’s a lot of stuff that we do for brands both within the mall and on the facade of the mall that’s called Space on higher. So that is an income stream. Some of these ticketed events will become larger income streams, etc., etc. But in my view, this business, a large part of it, maybe about 90%-odd percent plus will still be lease rentals. But the balance 10%, we would obviously attempt to grow as we go-forward.
Mohit Agrawal
Understood. And my last question is on your acquisition strategy. So how is the — so beyond the Vega City and the other the Hyderabad and the other North assets. How is the pipeline currently looking like? And just trying to get an update that we had — we had a target of adding about two to three malls every year. So how do you see the pipeline shaping up in terms of availability of your assets and the valuations. If you could update on that as well.
Dalip Sehgal
Hi,. The pipeline is looking pretty strong at the moment. We need to close What’s-ON hand at the moment. So focus is on that. At the same time, there are about three, four more assets that we are engaging with and hopefully that should kind of consummate the pipeline for the next year. So I think pretty much on-track, a little delayed to start-off with, but once that starts, I think the flow should be more linear.
Mohit Agrawal
So the two, three malls that you’re looking at beyond this would be hopefully closed in ’26 FY ’26, right?
Dalip Sehgal
Yeah.
Mohit Agrawal
Okay. Understood. Thanks a lot. Those were my questions. All the best.
Dalip Sehgal
Thanks.
Operator
Thank you. The next question is from the line of Arya Mehta from Maximal Capital. Please go-ahead.
Arya Mehta
Yeah, good evening, sir. So on the pipeline question, so apart from these three malls totaling 1.3 million. I mean, are there any confirmed entrances to this pipeline or because this has been this way for the past few quarters, I guess. So are there other possible acquisitions that have gone into the slightly more advanced state that you can throw some color on.
Pratik Dantara
So Aya, Pratik here again. This — these announced acquisitions in the sense Vega City, the Hyderabad mall and the North India acquisitions in total about 1.8 million square feet. Apart from that, like I spoke about earlier, there are few more acquisitions that are in the pipeline. I wouldn’t want to give out too many details at this point of time because these are bilagual conversations. So at this point of time, let’s just keep it at 1.8 million that we’ve announced. I mean looking to kind of close both those.
Dalip Sehgal
And that meets the target that we’ve set for ourselves, which is to over a four five-year period to double the portfolio.
Arya Mehta
Okay. So you seem well on-track on doing that. So there is no changes to that.
Dalip Sehgal
Yeah.
Pratik Dantara
So it can be lumpy at times depending on how the administrative part, how it all closes. Some of this is very, very unexpected, but I guess at a state-level these things can happen but suffice it to say that we are on-top of it.
Arya Mehta
Bit of bring us any sort of advantage to sort of accelerating this towards potential mall acquisitions and all?
Pratik Dantara
Hi, sorry, I couldn’t follow that question, if you can please repeat.
Arya Mehta
So this little bit of slowdown that we have seen in the consumption space, is it sort of a little bit of positive for us to sort of go and talk to the potential sellers? Are they more willing now because of this?
Pratik Dantara
Not really since somewhere it does matter, but ultimately, it’s all about — I mean from our standpoint, it’s more about long-term, whether we see that asset, we can turn-around that asset, what value-add can we do from that asset. From a seller standpoint, I think frankly, it all boils down to what valuations we give them, right. So while there may be temporary blips and people understand consumption slowdown, maybe a good time to start conversation, but some of these narratives change pretty, pretty quickly. So it’s not necessarily the only point on their mind.
Arya Mehta
Okay. And on your nine M numbers, the NOI growth has been 6% for the entire nine months?
Pratik Dantara
Yes.
Dalip Sehgal
Yes.
Arya Mehta
So then how should we pencil this thing because say for 9M, we have got 6%, but then the DPU growth is tracking only 4% adjusted for the 10.5 months for last year, right? And in this quarter, again, we have done 6%, but we have got 10% DPU growth. So how do we sort of model the NOI growth versus the DPU growth? Because these two numbers are not sort of matching.
Pratik Dantara
So I would suggest you just look at the number, that’s probably directionally where it should be. Obviously, within a quarter, it could be a little different, but I think directionally NOI growth and DPU growth should kind of track.
Dalip Sehgal
Yeah. And at 8.4%, which is what we think will end-up is around 6% growth over last year annualized, which is in-line with the NOI growth.
Pratik Dantara
And just the whole piece around NOI growth, you need to kind of also factor-in that we kind of at this point of time have some bit of negative carry-on the mega fund that we’ve raised. So the deal should get done very, very soon now, but it’s just that, that piece is having a negative carry today.
Arya Mehta
Okay. And actually part of it has also increased to 75% odd. I think last quarter it was 72% if I’m not wrong. So I mean going-forward, should this be the new normal or how should we sort of model that in?
Pratik Dantara
Around that, around that number.
Dalip Sehgal
Yeah,
Rajesh Deo
INR72 75 depending on that particular margin for around INR74.
Arya Mehta
Understood. Thank you and all the best.
Pratik Dantara
Thank you. Thank you so much.
Operator
Thank you. Ladies and gentlemen, you may press star and 1 to ask a question. A reminder to all the participants that you may press star and one to ask a question. Next question is from the line of Dev from Antique Stock Broking. Please go-ahead.
Unidentified Participant
Good evening, everyone. So my first question is, looking at all the narrative and macro scenario so-far. How do you see this 5%, 6% consumption growth year-on-year? So should we be on the — you know like the — should we see this as a good consumption growth looking at the current scenario or how do I see the consumption? That’s what I’m trying to say. Is it good, bad or ugly? How do I see that consumption?
Dalip Sehgal
So I think you have to put it in perspective of what has happened in the first-half of the year where I said that the growth was less than 3%, we are now at 6%. If you take a period of five years pre-COVID and see the average consumption growth is around 7 odd percent. So if you see what is the long-term trend, it’s around 7 odd percent depending of course, year-on-year what the inflation rates, etc., have been. Yeah, was there a issue in terms of consumption? I think that’s clearly there. And the fact that the government and the finance minister recognized it, it’s not every day that she will put INR1 lakh crores in the hands of consumers, yeah, because they are also aware of the fact that there has been a slowdown in consumption. So to answer your question, is fix good bank ugly, I think it depends entirely on what is the context. I think once the money starts coming into the hand of the consumers, then we’ll have to see is fix good enough, should it be better, etc., and how long will it take for that to actually fructify in terms of improved consumption.
Unidentified Participant
Okay. So something like 8%, 9%, say, next few quarters, you report 8%, 9% or 10% or something like that, more than 7%, then we should consider that as a, I think the good consumption growth.
Dalip Sehgal
No, 8%, 9%, 10% has never happened in the past post COVID when obviously, two years there was nothing. So I’m saying the long-term trend is 7%, 7.5%. We are currently at 6% and I would not speculate, but I presume that if all this money comes into circulation and we should see an improvement how much and when I think time will tell. But I would not Hazard a guess to say, will it be 10%, 12% that we don’t know.
Unidentified Participant
Okay, fair enough. That’s helpful. Sir, just one more question. Regarding Hyderabad mall, I believe you mentioned some comments from government. I forgot. How government is involved in that acquisition of Hyderabad mall?
Pratik Dantara
The government kind of has that asset and the malls next to the metro that the government and LNT have kind of jointly developed. So the government angle that…
Unidentified Participant
Okay. So government has some stake into the mall. Is that the…
Pratik Dantara
They haven’t given NOC on that.
Unidentified Participant
Okay. Okay. Okay, okay. Thanks. Thanks, sir. That’s all.
Dalip Sehgal
Thank you.
Operator
Thank you. The next question is from the line of Jatin from Bank of America. Please go-ahead.
Jatin
Hi, thanks for the opportunity. Most of my questions have been answered. But just a quick one, would you be able to break-down the nine months NOI growth into the usual components, rental escalations, MTM and revenue-share.
Pratik Dantara
Sorry so like mentioned, around 4% — 4.5% comes from escalation. And this year in particular, there was 8 lakh square feet, which has — which was supposed to come on re-leasing. We have like we said, we have made a pre-leasing spread of 20%. So that’s around 1.5%. So that’s 5.56% and the revenue-share is flat, there’s no-growth. So that’s the 6% number on NOI growth.
Jatin
Okay, great. That’s very helpful. Thanks.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I now hand the conference over to Mr Pratik Dantara for closing comments.
Pratik Dantara
Thank you everyone for joining the call. If you have any further questions, do reach-out to us and the IR team. Thank you.
Operator
On behalf of Nexus Selectrust, that concludes this conference. Thank you for joining us and you may now disconnect your lines.