Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Nexus Select Trust (BSE: 543913) Q4 2026 Earnings Call dated May. 12, 2026
Corporate Participants:
Prateek Gantara — Chief Investor Relations Officer and Head Strategy
Dalip Sehgal — Executive Director and Chief Executive Officer
Rajesh Dio — Chief Financial Officer
Analysts:
Jatin — Analyst
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to earning conference call of Nexis select trust for Q4 and FYC. As a reminder, all participant lines will be the 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 phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prateek Gantara, Chief Investor Relations Officer and Head Strategy from Nexis Select Trust.
Thank you. Ann, over to you.
Prateek Gantara — Chief Investor Relations Officer and Head Strategy
Thank you. Good evening everyone and thank you for joining the earnings conference call of Nexus Select Trust for quarter four and year ended March 26th. Before we proceed, 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 Select Trust does not guarantee these statements or results and is not obligated to update them at any point of time.
Specifically, any financial guidance and pro forma information that we will share on this call are management estimates based on certain assumptions and have not been 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 will be able to achieve the same. Joining me today on the call are Dalip Sehgal, Executive Director and CEO Rajesh Dio, our cfo, Jain Naik, President Operations, Nirzar Jain, President Leasing.
As always, we’ll begin with brief remarks on our business and financial performance and then open the floor for questions. Over to you, Dal.
Dalip Sehgal — Executive Director and Chief Executive Officer
Thank you, Pratik. Good evening everyone. It’s my pleasure to welcome you to the earnings update call for quarter four and full year ending 31 March 26 for Nexus Select Trust, India’s first listed REIT. This year marks a significant milestone for us as we complete 10 years of building the Nexus platform. Over the past decade we have created a resilient portfolio of 19 malls across 15 cities comprising nearly 11 million square feet of operational retail space that witnesses good footfalls of around 14 crores or 140 million.
Today our portfolio generates annual consumption of over INR 14,000 crores and delivers close to INR 2000 crores of net operating income. Across our malls we host nearly 1100 odd brands across 3200 stores offering a healthy mix of leading international and domestic brands. Most importantly, the Nexus portfolio today supports a large ecosystem with over 5,000 employees working across our portfolio and more than 20,000 tenant employees serving customers every day. So the ecosystem is more than 25,000 people the Nexus Ecosystem 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 landscape in India.
Demand supply dynamics 1. Graded demand supply dynamics continue to be extremely favorable for us with no near term new graded supply of any large scale in primary nexus catchpoints. 2. Turning to the global headwinds arising out of the Middle east conflict as all of us know, we remain mindful of the macroeconomic issues that may arise, whether it is inflation, higher input costs, etc. Etc. Currently happy to note that we are not seeing any slowdown in decision making on the deal front. In fact, our long term leases and strong balance sheet position us very well to navigate this cycle.
Consumption trends in April and May have remained healthy with strong high double digit growth, strong high double digit growth in April and in the first two weeks of May. So the consumption trends are still very very strong. March also was in high double digits, so we’ve seen now for almost 10 weeks a very very strong growth trend. Occupancy Our retail Occupancy stands at 97% which is 400bps ahead of the market. This is on the back of proactive leasing, high quality mall infrastructure, prime infill city center locations and best in class management team.
Now coming to our quarterly performance on the consumption front, growth momentum remained robust. Building on the strong trajectory witnessed over the previous three quarters. We ended Q4 with robust footfall growth of 8% and this translated into healthy consumption growth and revenue growth of 19%. Backed by the strong operating momentum. We delivered another solid financial performance with retail NOI growing by 11% year on year in quarter four FY26 on the back of this performance we are pleased to declare a distribution of INR346 translating into INR 2.286.
I repeat, INR 2.286 per unit and a year on year growth of 14%. Importantly, this marks our 11th consecutive quarter of 100% distribution payout post listing underscoring the stability, resilience and predictability of our cash flows. I’m pleased to share that we have achieved our FY26 distribution guidance of INR 9.1 per unit implying a growth of 9% year on year over the previous year. Since our listing in May, our unitholders have benefited from a combination of steady income growth and capital appreciation translating into an overall return of more than 75%.
More than 75% during the year our NAV has increased by 8% to INR1.6.4 per unit INR164 per unit. Now let me walk you through some category wise trends. Fashion, which was on a slow track the earlier year, is now growing quite rapidly. It accounts for 50% of our consumption and it grew by about 12% in this quarter driven by a sharp uptick in demand for value, fashion and ethnic wear, making it a third quarter of strong performance. So fashion growth seems to be back on track. Jewelry, which is jewelry recorded highest ever quarterly sales since listing driven by rising gold prices.
Addition of new jewelry stores across the hall. Our overall consumption contribution from Jewelry has increased by 300bps to 7% since March 25. So March 25 to March 26 we have increased. Jewelry has increased by 300 in terms of consumption and is now 7% of our portfolio. Three family entertainment centers including multiplexes sustained robust momentum with 18% growth in quarter four FY26 and you would have seen the results of the cinema operators also yesterday which were very good indeed. Added this was aided by Blockbuster titles like Veranda 2, Border 2 and many other good Hollywood films as well.
Electronics witnessed a 22% growth during the quarter driven by very strong demand during key promotional events such as public date and end of season sale. Let me now walk you through our leasing and marketing performance. On leasing we came to witness robust demand from international and domestic brands. Supported by this robust demand, we released 9 lakh square feet during the year at an 18% mark to market spread during the year we have strategically churned approximately 4 lakh square feet. 4 lakh square feet of space ahead of expiry Achieving healthy strengths reflecting proactive asset management coming up in the coming years.
Lease expiries we expect about 12 lakh square feet on an average lease expiry annually over the next four years. So about 12 lakh square feet of average re leasing will come up every year over the next four years. In terms of rentals, 45% of our gross rental portfolio will be expiring over the next four years and this should with releasing give us a 20% mark to market. Now from a marketing standpoint, we curated experiential events like Bhajan Jamming which is in today, music, concert, theater performances etc.
Across all our malls during the year, augmenting footfalls and generating 6 crore revenue. On the digital front, we have installed six anamorphic screens across our mall and we have partnered with around 120 plus brands generating a revenue of INR 3 crores. Coming to our digital engagement. Happy to announce our Nexus One app now has over 1 million users. With 1.5 lakh monthly active users and 56% customer repeat rate, Nexus One app remains among India’s top performing mall apps with a 4.4 rating on the App Store.
Indeed a great achievement. Now let me walk you through our acquisition strategy and performance of recent acquisitions. Over the past decade we have built a robust portfolio through a disciplined third party asset acquisition strategy focusing on under managed or under leased assets or under invested assets and unlocking value through our operational expertise. The core strategy remains unchanged and we will continue to see significant headroom to drive growth through our proven playbook on acquisitions.
In addition, as we look ahead, we remain firmly aligned with our vision on doubling our portfolio by 2030. To support this vision, we have further sharpened our acquisition strategy by introducing three strategic pillars during FY26. First, we are pursuing strategic tie ups with reputed developers for under construction malls. This approach enables us to enter new markets where we currently have no presence while also strengthening our footprint in existing markets where acquisition opportunities may be limited.
In line with this, we have partnered with Subodh Ranwal Group to develop a 7 lakh square feet mall in the MMR region. Second, we are driving strategic expansion through within our existing malls as well. During the year we completed a bolt on acquisition of prime 60,000 square feet of retail space within the Nexus Elante Complex in Chandigarh. This demonstrates our ability to unlock incremental value within our current portfolio and will continue to pursue such opportunities. Third pillar in our sponsor pipeline which provides us with visibility on potential future acquisitions.
Our sponsor currently holds the South City assets in Kolkata acquired in 2025 which could present a compelling opportunity over time. Now coming to our acquisition pipeline, we have built a robust pipeline of eight assets across India with two assets under due diligence and Diamond Plaza Kolkata deal closing underway. We expect to continue the momentum on acquisitions built over the last year and we look to add two to three assets every year to our portfolio. Our LTV stands at 18% with Diamond Plaza it will still remain 18%.
Cost of debt is at 7.3% which is 60bps lower than March of 25 significantly below our acquisition cap rates. This is significantly below our acquisition cap rates supported by robust acquisition pipeline, strong balance sheet, low leverage and close to $1 billion of debt headroom. We are well positioned to drive this phase of our inorganic growth strategy. Now turning to the performance of our recently acquired assets, both Vega City in Bangalore and MBD in Ludhiana, Punjab witnessed robust tenant growth, growing at 15% after acquisition and with a footfall of 9% plus.
So that’s really good in terms of the two malls that we acquired. Now coming to our HR initiatives during the year we launched Arunya, an education program for frontline staff in strategic collaboration with Mehavi Skills University and partnered with Velikar Institute of Management to launch India’s first postgraduate program in mall management, reinforcing our leadership and long term talent vision. Lastly, turning to our unit price performance, our unit price has appreciated over 50% since our IPO in May of 23.
Our unitholder base has expanded to over 70,000 compared to 24,000 at the time of listing, reflecting both greater breadth and depth of our investor base. Stepping back, FY26 delivered record performance, demonstrated resilience across cycles and validated every pillar of our growth strategy for financial year 27 for which we are now targeting a DPU growth of 9%. Lastly, summarizing our performance 1. Consumption momentum remained robust with double digit growth in FY26 and we expect the momentum to sustain in the coming months.
Delivered strong NOI growth of 13% in FY26. Sharpened our inorganic growth strategy with introduction of three new pillars. Expected to add two to three assets every year to our portfolio. Leased 4 lakh square feet ahead of expiry 45% of our gross rentals expected to expire over the next four years. With a 20% mark to market potential, we achieved our FY26 distribution guidance of INR 9.1 per unit, 9.1 per unit and we expect to distribute 9.8 to 10 per unit, 9.8 rupees to 10 rupees per unit in FI.
With that, let’s now move on to the Q and A session.
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 touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We’ll take our first question from the line of Mohit Agrawal from IIFL Capital. Please go ahead.
Prateek Gantara
Yeah, Good evening everyone and thanks for the opportunity. My first question is on your guidance. When I look at the 7% NOI growth guidance at midpoint level. Can you break that down into what is the contracted growth assumed here? What is the rev share mark to market gains and the marketing initiatives? You could kind of give some breakdown. And also what is the implicit consumption growth that you assume here for the 7%?
Dalip Sehgal
Okay, Pratik, you want to answer? Yes.
Prateek Gantara
So Mohit, on the NOI guidance, I think the way we 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 balance rentals typically would grow at about 4, 4.5% which is the annual escalation annually compounded 15% every three years. That gives you about 4 and a half percent growth. We get typically a 20% mark to market on the on an average about 10% rentals expiring every year. So that gives you about 2% growth. That takes it to about 6 and a half.
And then depending on the consumption growth that we forecast, we get the balance growth which takes it closer or just about above 7 there does that answer on the NOI front, on the consumption front, I think the assumption is about 8% standard growth, which is what we’ve assumed, what we’ve achieved in the past is what we’ll kind of project for the future as well. So 8% consumption growth is what we planning in FY27.
Rajesh Dio
So Pratik, but then have you also considered the impact of the acquisitions?
Prateek Gantara
Because this, the headline 7% number seems to be 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 there’s, you know, we could see surprises on this one on the positive side?
Dalip Sehgal
Yeah. So first of all, this is organic, no acquisition built in. And to answer your question honestly, yes, you know, this is a year where all of us have to be a little cautious, I would imagine because of whatever is happening around the world. Like I said, April may have been very good and we do hope that this kind of a consumption trend will continue. But you were right. We have actually been a little conservative. The original model is around 8 or 9% and the intent would still be to ballpark get into those numbers.
Prateek Gantara
Okay. Okay, that explains the second question is on your the like for like 15% for fourth quarter and 9% for FY26. Could you give that number if you exclude the non rev share segments like jewelry or maybe some part of fec. Sorry, electronic. Sorry, where would that number after excluding those segments 12% for fourth quarter and for 26
Dalip Sehgal
About 14. That would be around I would imagine 8%,
Prateek Gantara
7
Dalip Sehgal
Or 8%.
Prateek Gantara
Okay, perfect. And my last question is on Select City Mall over the last three, four years the rental growth is, has been kind of sub 5% per annum. If you could explain how to understand that, has that mall achieved some sort of a, you know, maturity or what kind of initiatives you are taking to kind of speed up the rental growth from here
Dalip Sehgal
I request Nirza to answer this question.
Prateek Gantara
Hi Mohan, Nirza here on the rental growth and Select City we’ve actually the rentals were very high so we changed the loading. So when you look at the per square foot rentals they show 3, 4% on the loaded area but if you actually take it on the carpet area they have increased almost 8, 9% in terms of. So we are still getting very healthy spread in terms of the overall rental outflow and that’s kind of contributing to the NOI growth as well.
Dalip Sehgal
Yeah, and I think the other thing is in select there are large number of or reasonable number of international brands which are on revenue share. So it’s not just the mg. The rev share also goes up as they grow and what you’re seeing now is some resurgence of brands like Zara and H and M and so on and so forth. And my sense is that select also will perform better in FY27 in terms of rental improvement overall. MG plus rev share.
Prateek Gantara
Okay, great, thanks a lot. Those are my questions. Thank
Dalip Sehgal
You.
Prateek Gantara
Thank
Operator
You. We’ll take our next question from the line of Sumit Kumar from JM Financial. Please go ahead.
Prateek Gantara
Hi, good evening sir. Thanks for the opportunity. My first question is on, you know, the follow up to the last one. Jewelry as a category has been doing well for the last two quarters. So how does that translate into rental growth and does that translate into rental growth or I mean it’s sort of dependent on expiry and then you know a mark to market or sort of a releasing spread on that.
Dalip Sehgal
So jewelry now is about 7% of our business in March in quarter four two questions you asked. What happens to rentals? Just to give you a sense, typical rentals on let’s say fashion brands is anywhere between 140 to 160 rupees a square foot whereas for jewelry it is 280 rupees to 300 rupees a square foot. So that is the kind of uptake that you see once you redesign. Secondly, unlike fashion which occupies a lot of space, jewelry doesn’t occupy much space. So even Today maybe about 2, 2.5% of our GLA would be jewelry, accounting for 7% and accounting for per square foot rentals, which are twice of the fashion average and probably close to three times our overall average.
Prateek Gantara
And sumit, the other point is, I think when we focus on some of these high value categories, these categories not only enhance the overall mall sales but they also improve the quality of the footfalls, they strengthen the overall category mix, 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 as well. And we witnessed some of that on Akshaya as well. So when we compared Akshay Trithia this year vs Akshay Trithia last year, we saw that with the increase in salience of jewellery brands in our portfolio, that actually had a rub off effect on some of the other categories.
And the share of growth on that day, some of the other categories was as high as 54%. So we were like, I mean that was the thesis of increasing some of these high value categories. And it just kind of got validated when we kind of looked at Akshay Tripi ourselves.
Dalip Sehgal
Yeah, so the fact is that, you know, from a consumer perspective, if there is no jewelry in a mall, on occasions like Akshatritya, or if you were 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 footfall not just for jewelry, but for all products and categories. So that’s what we have seen, that even on Akshaya, the growth without jewelry was also upwards of 45%. So what, what it has done is brought in better quality footfalls.
People who obviously come to buy gold but also want to then spend 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 I think there is a positive rub off. The immediate rub off, like I said, is the fact that the trading densities are 10 times of what it is for fashion rentals are at least twice, if not two and a half times. And the fact that you’re getting exceptionally high number of footfalls because if you have the full line of jewelry, which we have, for example now in Ilante, we have that in Seawoods, then the Akshaya customer is very happy to come to the mall and spend the day there.
Prateek Gantara
Sure, sir, fair enough. My second question will be on the Kolkata acquisition, Diamond Plaza. What was the strategic rationale of doing this acquisition because this asset is on the smaller side. So is it entry to the market or anything else that you know you have looked at
Dalip Sehgal
Smaller size,
Prateek Gantara
Relatively smaller. Which
Dalip Sehgal
One?
Prateek Gantara
Diamond. Oh
Dalip Sehgal
Diamond. Diamond. Diamond, yeah. Yeah. No fair question. I think if you look at east our presence has been very, very limited. We’ve had one mall, very well performing mall in Bhubaneswar and otherwise our footprint in the east like most big mall operators has been very weak. So as you know Blackstone bought the South City mall which is the best operating asset and Diamond Plaza is being the DD is done and hopefully they will come into the fold. So we 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 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 well.
So we certainly did buy it. And we’re also looking at the other cities as well in the eastern part because there is a lot of growth happening in the east and over the next three to five years if we have to double our portfolio and our business I think we will have to be. We’ll have to have a strong presence in the east as well.
Prateek Gantara
And I think Sumit, I think more from an investment highlight standpoint I think Kolkata has limited supply of retail space per capita and that’s lowest amongst some of the major metropolitan markets that are there in India. So from a market standpoint there isn’t good retail space. I think second is the location of this mall. It was pretty centric in northern Calcutta and in a dense residential catchment area which actually worked. I think there is enough upside here possible. It seems to be not a very well managed mall and therefore there’s upside potential possible which is typically the nexus way of acquiring and then turning around a mod.
So I think I will come up with more specifics once we close the transaction in quarter two. I think this is what we can share at this point of time.
Dalip Sehgal
Sure. Thank you and all the best.
Prateek Gantara
Thank you.
Operator
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. Next question is from the line of Parve Skazi from Nuvama Group. Please go ahead.
Prateek Gantara
Hi, good evening. Thanks for a great set of couple of questions for myself first and we’ve obviously delivered strong consumption growth both in Q4 as well as in FY26. You gave the category wise description of that. Looking at other way, what would have been, let’s say contribution of footfall growth versus higher trading density which led to this kind of a convention.
Dalip Sehgal
Okay, so footfall growth in the quarter, if you see the numbers around 7 odd percent and if you look at, and I’m now looking at the overall number, growth has been around 14, 15% in terms of consumption. So two things. One is that yes, football growth has helped especially because I think a lot of these footfalls were movie footfalls and that does lead to better consumption of entertainment. On the other hand, I think higher value categories like jewelry, like electronics, beauty, those are the categories that are helping us build the trading density as well.
Like I said, jewelry for example has anywhere between 16 to 20,000 rupees TD per square foot and fashion would have around 2000 a square foot. So TD also gets built area required is low. And yes, the footfall growth, my sense is a lot of it actually did come from better performing cinemas and that obviously helps the rest of the categories.
Prateek Gantara
So you said 7% was football, you gave another number of 14, 15%. And what was that? That was trading density or consumption. Okay, sure. The second question is, I mean you said April may have been strong like March was. Has there been any change in consumption patterns in terms of categories in let’s say April May compared to let’s say anytime in FY 2016
Dalip Sehgal
April because of Akshay Trithi obviously jewelry did extremely well and that contributed to the growth. But Akshay Tritya growth also, as Satik pointed 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 jewelry, the growth is 40%. So it’s across categories that there has been a growth number two second part of your question was around
Prateek Gantara
Which packaging did well in. So
Dalip Sehgal
In May, for example, there is no jewelry upside in the sense that yes, we will have more stores so there will be some upset, but there’s no. And yet in the first 15 days and as you know through our daily reporting system we get sales every day. I think as of yesterday we heard about high double digit growth in May as well without jewelry actually contributing very significantly to that growth. So my sense is that April certainly some of it was the fact that we had more stores, etc. And of course the fact that Durunder 2 did extremely well in April as well.
So yeah, in May, but from a couple of Hollywood movies I don’t think anything significant has happened in the first few weeks. But yeah, overall consumption still remains quite strong. Also there is another point of view, and maybe you will have some sense of it from other people as well, is that there is a large consumption improvement in the domestic market primarily on account of what we believe and its hypothesis, maybe we are wrong, is that there are 97,000 crores of international travel and holidays which have not happened at all because of various problems.
And the fact that AFS was so out of that 97,000, 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 there. So a large part of it and I don’t have a firm number, but I do believe that substantial part of that is also coming to consumption, especially in malls. So imagine a family with young kids who had planned to go overseas on holiday but because of the cost accident, unable to do it. So what would they do on a weekend you would take your kids out, they would not be sitting at home.
Holidays have started. So what do you do? You take them to the mall and you will eat and you will spend some time. And to my mind, I think this is where the share of wallet of the malls has actually improved in terms of overall consumption.
Prateek Gantara
Sure. And last question. I mean we all, we have a very strong acquisition pipeline now. I believe yields in the market have already started rising. So from a timing perspective, I mean what’s our thought process? Do we wait to
Rajesh Dio
Get maybe better cap rates at the time of acquisition or we still go ahead? I mean, what’s our thought process towards that
Prateek Gantara
Parvet? I think the way we’ve also called this out in the past, we typically like to maintain at least 150 to 200 bid spread between the cap rates that we trade at versus the cap rates that we acquire. Historically, whatever we’ve acquired has been in that range of 9, 9.5% closer to 10%. I think that’s how we kind of also look at deals going forward. Obviously with the interest cost kind of going up, we’ll be very prudent at what cap rates we acquire. But yeah, I think we’ve now got multiple other levers apart from just third party acquisitions that we’re kind of looking at.
And I think as we add some of those levers into the portfolio, you’ll see the funnel of assets coming into the portfolio being much, much larger going ahead.
Rajesh Dio
Sure. Thanks. And all the best. Thanks Suavesh. Thank you.
Operator
We’ll take our next question from the line of Gaurav Khandelwal from JP Morgan. Please go ahead.
Prateek Gantara
Hi. Thanks for Taking my question. Good evening. I’ve got a couple of follow ups on the Calcutta acquisitions. One, on the Diamond City acquisition. What is the kind of acquisition cap rate that we are looking at? So we paid 350 crores. But where is the NOI roughly? That’s number one. Number two on the same asset, let’s say we are able to close it by first
Rajesh Dio
Half of the year. How much upside would it imply to our NOI DPU for the full year?
Prateek Gantara
Gaurav, we haven’t still closed the transaction. It’s still in the process. It will take a few more months to close it and hence we’ll not be able to get to the exact cap rates and upside that would be possible. It will depend on when the asset comes in and what the balance period that the asset remains with us in the year. But directionally, what we’ve spoken about it being acquired at the purchase consideration of close to about 347.5 cr. And the cap rates will be similar to the range that I had indicated earlier.
It will be in those kind of cap rates. So expect it to be in that range. But the exact nuances, the details around what will be the DPU, accretion, etc. Will probably come out when we actually close the transaction. We’ll put up a presentation on it.
Rajesh Dio
Got it. And secondly, can I check is there an update on the South City Mall asset as well in terms of acquisition timeline?
Prateek Gantara
Not at this point of time. But yeah, I think it should at some point of time come into our portfolio. But there isn’t a firm timeline.
Dalip Sehgal
I think the only update is that a lot of issues that were there, you know, including Sri Lanka property, Dubai etc are getting sorted out. And I think that’s the good news. Exactly when this will happen. Just have to wait.
Prateek Gantara
Got it. But can we. Do we have a sense of that closes in FY27 itself or could it extend to FY28? No directional sense. I think another couple
Dalip Sehgal
Of months we’ll be able to tell you and give you a better fit.
Prateek Gantara
Okay. All right. Thank you so much. Those are all my questions.
Operator
Thank you. Next question is from the line of Girish Chaudhary from Aventus Park. Please go ahead.
Prateek Gantara
Hi. Thanks for the opportunity. Firstly, on all the releasing spreads we have generally seen a healthy 18 to 20%. So Anand, also if I look at the expiry coming in, you’re more or less guiding for that. So I just wanted to understand from your conversation with tenants, do you think the current spreads are Structurally sustainable or
Jatin
Are we approaching affordability thresholds for certain categories?
Prateek Gantara
Hi, Nezha here. Girish, I think you know the spreads that we are, we will sustain that. If you see our track record in the past, we’ve kind of sustained that, including tough years through. Currently we see no pressure in the conversations. Retailers are still upbeat in terms of offtake expansion of spaces. The portfolio is also very well leased at 97% plus. So you know that also helps us to kind of manage
Dalip Sehgal
The demand better. So no pressure there and we are confident of maintaining similar.
Prateek Gantara
And Girish, if you kind of look at slide 16 that we kind of called out, right, Saying that when you look at supply, there isn’t near term grade A 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 is back ended and expected to come only in 2028. And that also is like limited to about three or four cities, 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 come only in 2028. So I think we kind of pretty confident that we can maintain this 20% mark to market run rate going ahead as well.
Jatin
Got it, got it. That’s useful. Secondly, on the strategic churn and the portfolio optimization, I see that you’ve already released around 0.4 million square feet ahead of expiry. So I just wanted to understand at the portfolio level how should we see in terms of identifying more such opportunities and can this become a slightly larger part of the NOI growth which is not baked in?
Prateek Gantara
Girish Nazarian I think you know, when we build in our aops we factor in some of this. Even last year, you know, what we did in terms of the point 4 and the overall 1 million activity, natural expiries are just about 600,000 and we did 1 million. So it’s kind of built in into our plan based on timing, which particular mall needs attention. So we kind of creating those opportunities in the coming year as well. And you know, and this year we are aiming higher than that, lower. Looking at the expiry schedules and in fact some very interesting new brands that we are bringing to each of our respective malls in this plan.
And I think typically whatever is the expiry, natural expiry that comes up the area, you can kind of safely assume that you typically do about 20, 25% more than what that natural expiry is. So I think on an overall basis we end up doing anywhere between 1.3 to 1.5 depending on the year. Yeah, so those were my questions. Thank you. And all the. Very well. Thanks. Thank
Operator
You. Next question is from Jatin from Bank of America. Please go ahead.
Jatin
Hi, good evening. Thanks for the opportunity. I wanted to check with you on your plans for your debt mix for the next year. Last quarter we were roughly at 52% floating. That has actually gone up to 59%. And with some expectations on the street that rates might go up. What’s the plan on this front and how much in your current DPU guidance of 9%, how much increase in interest cost are you making for FY27?
Prateek Gantara
So if you look at the floating has gone up because the Bajaj finance loan that we’re taking, we’ve taken a top up to kind of repay the commercial papers that we were carrying. Hence the floating has gone up. And if you look at the interest rates that have come down to around 7.3 and we are saving around 25 to 30 crores annually. So the annual budget that we have prepared is basis a 7.5% rate of interest.
Jatin
Understood. Got it. Very clear. And finally a bookkeeping one for the full year. How much was the LFL NOI growth? Thank you.
Prateek Gantara
For 26. FY 26. For
Jatin
26? Yeah.
Prateek Gantara
For 7%.
Jatin
Okay, sure. Thank you so much. All the best.
Operator
Thank you. Next question is from the line of Siddharth S from Nafa. Please go ahead.
Rajesh Dio
I’m
Operator
Sorry, you’re sounding muffled, Siddharth. No.
Rajesh Dio
Yeah. So thanks for the opportunity. No,
Operator
It is still muffled. Siddhartha, I think your network coverage is not proper. We
Prateek Gantara
Can’t hear you. Very, very muffled. V. No, Siddhartha, you want to reach out to us separately because the voice is really muffled. We really can’t hear you.
Operator
Thank you. That was the last question of our question and answer session. As there are no further questions. On behalf of Nexus Selectras. That concludes this conference. Thank you for joining us and you may now disconnect your line.