Nexus Select Trust Management Discussions

The discussion and analysis that follows is based on the Audited Consolidated Financial Statements of Nexus Select Trust and its REIT assets/SPVs (together, ‘the Group) for the year ended March 31, 2026 (FY 2025-26), prepared in accordance with Indian Accounting Standards (Ind AS) and applicable SEBI REIT Regulations. It should be read in conjunction with the Audited Consolidated Financial Statements and the accompanying notes thereto included elsewhere in this Annual Report.

Some of the information contained in the following discussion(s), including information with respect to our plans and strategies, may contain forward- looking statements based on the currently held beliefs, opinions and assumptions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, financial condition, performance, or achievements of the Nexus Select Trust or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements. In addition to statements which are forward-looking by reason of context, the words may, will, should, expect, plans, intends, anticipates, believes, estimates, predicts, potential, or continue and similar expressions identify forward-looking statements. Please refer to the disclaimer section at the end of the Annual Report for a discussion of the risks and uncertainties related to those statements. You should read this discussion in conjunction with our Audited Consolidated Financial Statements that we have included in this Annual Report and the accompanying notes to accounts.

Overview

Overview of the Trust

Nexus Select Trust (‘NXST or ‘the Trust) is Indias first publicly listed retail Real Estate Investment Trust (REIT), incorporated in August 2022 and listed in May 2023. We are registered under the Indian Trusts Act, 1882 and regulated by the Securities and Exchange Board of India (SEBI) under the SEBI (REIT) Regulations, 2014, as amended. Sponsored by Wynford Investments Limited, an affiliate of Blackstone, one of the worlds leading alternative asset managers, we focus on owning and operating high-quality, income-generating urban consumption centres across India.

Portfolio and Operating Platform

The strength of our portfolio lies in its scale, quality and geographic diversification. We have built a robust platform of 19 Crade-A Urban Consumption Centres across 15 leading Indian cities. Our portfolio comprises approximately 10.7 million square feet of gross leasable retail area, housing approximately 1,100 domestic and international brands across 3,200+ stores, making us one of Indias largest organized retail platforms.

Our assets operate as integrated lifestyle destinations that combine retail, entertainment and community experiences to create meaningful consumer engagement. During FY 2025-26, our platform welcomed over 137 million footfall, reflecting a 7% year-on-year growth in footfall, demonstrating the strength of our assets and the resilience of consumption trends across markets.

To deepen consumer engagement and enhance the consumer experience, we continue to leverage curated experiential events and technology-led solutions. Our NexusONE loyalty application, with a user base of 1 million, enables us to build stronger consumer relationships and deliver a more personalized and connected retail experience.

Complementing our retail ecosystem is a diversified portfolio of adjacent assets, including 1.3 million square feet of office space and three strategically co-located premium hotels comprising 450 keys. These complementary assets strengthen the overall ecosystem surrounding our urban consumption centres and contribute to long-term portfolio resilience and value creation.

We continue to pursue disciplined expansion through an active inorganic acquisition strategy aimed at doubling our portfolio by 2030. Recent milestones include the acquisition of Nexus MBD Neopolis, Ludhiana. A strategic partnership for a 0.7 Mn sf under-construction Grade-A mall in the Mumbai Metropolitan Region (MMR), and a strategic bolt-on acquisition of 60,000 sf of prime retail space in the Nexus Elante Complex.

Sustainability and Responsible Growth

Sustainability and responsible governance remain central to our long-term value creation philosophy. We are committed to achieving Net Zero Scope 1 and Scope 2 emissions by 2030, reinforcing our efforts to create positive outcomes for stakeholders, communities and the environment.

Our environmental strategy is supported by a strong transition towards clean energy, with 49% of our portfolio energy consumption currently powered by renewable sources, backed by over 60 MW of installed renewable energy capacity. In recognition of our efforts, we achieved a CRESB 5-Star Rating for the second consecutive year with an overall score of 93 and were named Regiona Sector Leader for Retail in Asia at the CRESB Sector Leader Awards 2025. We also continued our flagship community initiative, Lakes of Happyness, which has rejuvenated 10 lakes across Bengaluru, Hyderabad, Chennai, and Maharashtra, with a target of 15 lakes.

Alongside environmental stewardship, we remain committed to building an inclusive and empowering workplace culture. We have been recognized as a Great Place to Work for six consecutive years, reflecting our strong people-first philosophy, and received awards for ‘Best HR practices for L&D and succession planning, ‘Best HR Practices for Promoting DEI at Workplace (both awarded by CM), and Most Preferred Workplace for Women (awarded by Marksmen Daily).

Furthering our commitment to developing future retail leadership, we launched Aarunya, an educational initiative designed specifically for front-line staff. Developed in strategic collaboration with Medhavi Skills University, it holds the distinction of being Indias first-ever higher education program focused on mall management. The program operates under the inspiring motto, ‘Igniting Excellence, One Ray at ATime.

Our

We have built a resilient and future-ready portfolio anchored by a strong retail focus and supported by prudent geographic diversification. With a total Gross Asset Value (GAV) of 306 Bn, our strategy emphasizes stable, consumption-led retail assets while maintaining a balanced regional presence across key markets. This diversified approach enables us to reduce concentration risks, strengthen portfolio resilience and create long-term value for our stakeholders.

STRENGTHS

? Strong market leadership as Indias first retail-focused REIT with a diversified and high-quality portfolio

? Well-established presence across key consumption-led markets supported by premium urban destinations

? Resilient operating model driven by a diversified tenant mix and strong consumer engagement

? Robust financial position providing flexibility to pursue strategic inorganic growth opportunities

? Strong ESG performance — and an inclusive workplace culture supporting long-term value creation / )

CHALLENGES

? Exposure to broader economic conditions

? Adapting to evolving consumer expectations and consumption patterns

? Unlocking embedded value through active asset management and portfolio optimization

? Expanding the portfolio through strategic acquisitions and inorganic growth opportunities

? Increasing focus on high-growth categories and evolving consumption preferences

? Enhancing consumer engagement through experiential events, offerings and digita platforms

? Strengthening revenue diversification through innovative formats and ecosystem-led monetization

THREATS

? Macroeconomic uncertainties influencing tenant performance and overal consumer demand

? Increasing regulatory, climate, and sustainability-related compliance and expectations

? External market disruptions impacting operations, expansion plans, and stakeholder sentiment

Business Portfolio

Retail Operations

We have built a high-quality and diversified retail ecosystem anchored by strong tenant partnerships and a carefully curated brand mix. Our portfolio comprises approximately 1,100 domestic and international brands across more than 3,200 stores, creating vibrant destinations that cater to evolving consumer preferences. Across our 19 malls spanning across 10.7 million square feet of leasable area, we maintain strong occupancy levels supported by marquee brands including Apple,

Foot Locker, Gucci Beauty, Charlotte Tilbury, NARS, etc. Through our approach towards tenant curation and premiumization, we continue to strengthen the overall quality and resilience of our portfolio.

Leasing occupancy remained at 97% for consecutive 12 quarters since listing, reflecting continued tenant demand and disciplined leasing execution. The portfolio maintained occupancy levels significantly above broader organized retail market averages, supported by dominant asset positioning, premiumization initiatives and strong retailer demand across key markets.

Pro-active Lease Management

We follow a proactive and disciplined lease management strategy aimed at optimizing portfolio rentals and unlocking value. Our pro-active asset management approach has consistently enabled us to capture approximately 20% mark-to-market rental upside while strengthening the tenant mix across our portfolio. During FY 2025-26, we re-leased 0.9 million square feet, delivering an 18% re-leasing spread. During the year, we have strategically churned approximately 4 lakh sf of space ahead of expiry, achieving healthy spreads, reflecting proactive asset management.

Lease Expiry Profile

The lease expiry profile remains well staggered and provides visibility into future rental growth opportunities while limiting concentration of renewal risk in any single period. Over the next four years, we project an average annual lease expiry of approximately 12 lakh sf. This expiring space represents 45% of our portfolios gross rentals and carries an embedded 20% mark-to-market upside potential.

Rental Contribution by Trade Category

We continue to curate a balanced and diversified tenant portfolio across multiple sectors, ensuring relevance and resilience across consumption cycles. Our portfolio remains anchored by high-consumption categories such as Apparel & Accessories, Food & Beverages, Entertainment, Footwear & Fitness, Electronics, while increasing our presence in high-growth segments including Beauty & Personal Care and Jewellery. This strategic mix enables us to create integrated lifestyle destinations and deliver differentiated experiences for consumers.

Hospitality Business

Our hospitality portfolio continued to demonstrate strong performance during the year, supported by sustained recovery in travel demand and the strategic advantage of being integrated with our premium retail destinations. We currently operate a portfolio of three hotel assets comprising 450 keys, creating synergies across retail, leisure and hospitality experiences. During FY 2025-26, our hospitality assets maintained healthy operating performance, with occupancy of 73% and an Average Daily Rate (ADR) of Rs.9,606, reflecting strong pricing power and improved operational efficiencies.

Office Portfolio

Our office portfolio complements our broader mixed-use ecosystem and contributes to portfolio diversification and stable value creation. The portfolio comprises three commercial assets - Westend Icon Offices (Pune), Elante Office (Chandigarh) and Vijaya Office (Chennai), with a total gross leasable area of 1.3 million square feet. The portfolio is 94% occupied with marquee tenants like Deloitte, Kone, PubMatic, and Iffco Tokio General Insurance, among others.

Business Strategies

Scaling through a Diversified Growth Framework

Aligned with our long-term ambition and Vision 2030 objectives, we have strengthened our growth strategy through a diversified and scalable framework comprising third-party acquisitions, strategic tie-ups for under-construction malls, expansion opportunities within existing assets and sponsor-led opportunities. This multi-pillar approach broadens our acquisition pipeline while minimizing development and approval risks and preserving capital discipline.

Our inorganic growth strategy remains anchored around disciplined investment criteria including favorable demographics across Tier I and Tier II markets, strong consumption catchments, embedded value creation opportunities, DPU and NAV accretion potential and prudent leverage utilization. We continue to evaluate opportunities that can enhance portfolio quality while strengthening our position as Indias leading consumption centre platform.

Alongside acquisitions, we are adopting a cluster-led operating approach that enables faster decision-making, greater regional execution efficiencies and stronger responsiveness to local consumer trends and market dynamics.

Driving Portfolio Performance through Active Management

We continue to unlock value through proactive asset management, tenant premiumization and portfolio optimization initiatives. Through strategic leasing, premiumization and curated tenant mix, we are enhancing portfolio productivity and strengthening the long-term competitiveness of our destinations.

Our portfolio strategy remains focused on categories demonstrating sustained consumption momentum including Jewellery, Beauty and Personal Care, Watches, D2C Brands, Designer Fashion Brands, Food & Beverages and Entertainment. Simultaneously, we continue introducing premium and globally recognized brands and selectively expanding the participation of international retailers to elevate the overall quality and relevance of our tenant ecosystem.

We also continue to enhance embedded growth opportunities through store optimization initiatives and flexible space configurations designed to address evolving consumer behaviors and emerging retail formats.

Consumer-led Retail Curation and Experience Enhancement

Our approach to retail curation remains deeply informed by consumer insights and changing consumption patterns. Through active monitoring of category trends and consumer preferences, we continue to refine our tenant mix and create differentiated destinations that enhance engagement and improve tenant performance.

As shopping increasingly shifts toward experience-led consumption, we are investing in immersive activations, curated events and destination-led programming designed to increase consumer engagement and strengthen emotional connections with our assets.

As part of this strategy, we continue to enhance the physical environment across our portfolio through initiatives focused on creating future-ready retail destinations. Experiential upgrades under initiatives such as premium amenities like lounges, convenience-led services and differentiated engagement zones aim to create more inclusive and elevated consumer experiences.

Maintaining Financial Strength and Capital Flexibility

Our long-term growth ambitions continue to be supported by a disciplined financial approach and resilient balance sheet. With prudent leverage levels and continued access to diverse funding avenues, we maintain substantial flexibility to pursue future growth opportunities while preserving financial strength.

Our capital allocation strategy remains focused on optimizing returns, maintaining balance sheet resilience and ensuring sustainable long-term DPU growth for unitholders.

Embedding Sustainability into Long-term Growth

Sustainability remains integrated into our growth strategy and operating model. We continue progressing toward our Net Zero Scope 1 and Scope 2 ambition by 2030 while increasing renewable energy adoption, improving resource efficiency and strengthening sustainability-led operating practices across the portfolio.

These strategic pillars collectively support our FY 2026-27 guidance and Vision 2030 ambitions by enhancing portfolio scale, strengthening embedded growth opportunities, improving operational resilience and creating sustainable long-term DPU accretion potential.

Vision 2030

Our Vision 2030 is centered on strengthening our position as Indias leading retail-focused REIT by building a larger, more resilient and future-ready portfolio of urban consumption destinations. As we progress toward our ambition of doubling our portfolio footprint by 2030, our strategy remains anchored in disciplined expansion, active portfolio management, differentiated consumer experiences and sustainable value creation.

By 2030, We Aspire to

? Expand and strengthen our portfolio footprint across high-growth markets

? Build a larger and more connected network of urban consumption destinations

? Enhance portfolio productivity and tenant quality

? Deliver differentiated, technology-enabled consumer experiences

? Maintain strong financial discipline while supporting long-term growth

? Continue advancing our sustainability and responsible growth agenda

? Build a future-ready workforce that powers growth, strengthens leadership excellence and enables Happyness for All

This strategic roadmap will continue to guide our efforts as we create enduring value for consumers, tenants, investors and communities.

Economy

India continues to reinforce its position as one of the worlds fastest-growing major economies, demonstrating resilience amid an increasingly fragmented global landscape marked by geopolitical tensions and shifting trade dynamics. Despite global headwinds, India has maintained strong macroeconomic momentum supported by robust domestic demand and sustained policy reforms. The Economic Survey 2025-26 projects Indias real GDP growth in FY 2026-27 at 6.8%-7.2%, with nominal GDP expected to reach nearly Rs.357 lakh crores, reflecting strong medium-term growth prospects. Indias economic growth trajectory is increasingly becoming consumption-led, supported by strong domestic fundamentals and evolving consumer behavior.

Private Final Consumption Expenditure (PFCE) contributes approximately 61.5% of GDP, while investments account for nearly 30%, highlighting resilient demand alongside sustained capital formation. Rising incomes, urbanization and changing lifestyle preferences continue to drive premiumization, experiential spending and greater adoption of organized formats. This shift is reflected in strong discretionary indicators, including 17.5% growth in domestic tourist visits, 8.9% growth in international tourist arrivals and hotel occupancy levels remaining above 60%. India is also expected to account for nearly 16% of global consumption by 2050, reinforcing its position as a long-term consumption powerhouse.

Private Consumption (Share in Nominal GDP in %)

PE - Provisional Estimates; FAE- First Advance Estimates Source: Economic Survey 2025-26

Indias GDP is Consumption-led and is Set for Decadal Growth

Indias economy is strongly consumption-driven, with Private Final Consumption Expenditure (PFCE) contributing 61.5% of GDP, underscoring the strength of domestic demand. This is supported by Gross Fixed Capital Formation (30.0%), reflecting sustained investment activity, while exports contribute 21.5%, highlighting Indias growing global competitiveness. Government Final Consumption Expenditure (9.9%) further supports economic growth through public spending. Together, these drivers position India for sustained long-term growth, supported by a large and expanding consumer base.

These trends are expected to have meaningful implications for organized retail real estate. Improved connectivity, expanding urban clusters and destination-led consumption are likely to strengthen catchment development, increase consumer mobility and support higher retailer demand. Supported by strong financial sector health, low NPAs and expanding global economic integration, India remains well-positioned for structurally driven long-term growth.

Indias long-term outlook is further supported by strengthening financial fundamentals. Gross NPAs remain at multi-year lows of nearly 2.15%, while credit growth continues to remain healthy, supported by banking sector resilience and capital market deepening. Together with strategic trade agreements covering economies representing nearly 70% of global GDP, these developments are expected to support long-term capital inflows and strengthen Indias position as a key driver of global economic growth.

Looking ahead, India is entering a phase of structurally driven growth supported by formalization, digita transformation and infrastructure-led development. With strong consumption fundamentals, sustained policy support and favorable demographic trends, India remains well-positioned to attract long-term capital and continue serving as a key engine of global economic growth.

Sources:

Press Information Bureau, Republic World

Overview

Indias retail real estate sector continues to demonstrate strong structural resilience and remains supported by favorable consumption trends, evolving consumer preferences and increasing formalization of the retail ecosystem. Rising urbanization, growing disposable incomes and changing consumer lifestyles continue strengthening demand for organized retail environments. Sustained consumption growth and evolving spending patterns continue emerging as key drivers of the next phase of retail expansion.

Consumption growth is not only expanding in scale but also evolving across categories. As consumer preferences shift, spending is increasingly moving beyond essential purchases toward discretionary products and services. Rising aspirations, premiumization and experience-led consumption are reshaping demand patterns and creating new opportunities across the retail ecosystem.

Indias retail opportunity also continues expanding rapidly, creating substantial opportunities for high-quality retail infrastructure and institutional participation.

Multiple Pockets of Demand Supporting Retail Growth

? Affluent and aspirational consumers remain the backbone of retail expansion and are expected to contribute 55%+ of consumption growth.

? Tier 11—IV cities are driving the next wave of expansion and are projected to contribute 30%+ of future growth.

? Gen Z consumers are emerging as a powerful force in Indias retail story, with spending expected to reach ~TI80 Tn by 2035.

? Together, these demand drivers are expected to support the expansion of Indias retail market to ~ Rs.210-215 Tn by 2035.

Retail demand remained broad-based during 2025 and was supported by domestic retailers, international entrants and digital-first brands. D2C leasing activity was led by fashion and apparel, which accounted for approximately 64% of demand. The increasing presence of fashion-led and experience-oriented categories highlights continued brand expansion across key consumption catchments.

Others** include Bank, Insurance & Finance, Gifts, Arts & Antiques, Travel & Luggage, and Opticals, among others.

Source: CBRE Research, Q1 2026

Physical retail increasingly functions as a platform for engagement and experience creation rather than purely transactional activity. As a result, developers and landlords are increasingly adopting flexible leasing structures and curating tenant mixes to maximize consumer engagement and improve asset productivity.

Key Demand Drivers

Consumption-led Growth

Domestic consumption continues serving as the principal growth engine for the retail sector. Growth in disposable incomes, improving consumer confidence and expanding aspirational spending continue supporting demand across discretionary and lifestyle categories.

Demographic Advantage

Consumption patterns are increasingly shifting beyond essentials toward discretionary and experience-led spending. Categories including consumer electronics, apparel, accessories, jewellery and experience-led segments are expected to emerge among the fastest-growing consumption categories.

Younger consumers continue accelerating this shift. India currently has more Cen Z consumers than the entire population of the United States, and by 2035 nearly every second rupee spent in India is expected to originate from this demographic, reflecting stronger preferences toward convenience, digital engagement and premium experiences.

Formalization of Retail

Consumer preference continues shifting toward organized formats that offer integrated experiences, wider assortments and stronger engagement ecosystems. However, approximately 92% of retail spending still flows through traditional and kirana-led channels, indicating substantial headroom for future organized retail penetration and market formalization.

Omnichannel Expansion

Digital convergence continues reshaping retail ecosystems. D2C brands accounted for approximately 27% of leasing activity, while high-street formats contributed approximately 39% of total leasing activity, reflecting increasing integration between digital and physical retail environments. High-street environments continue functioning as highly visible and operationally flexible platforms while benefiting from proximity to consumer catchments and stronger engagement opportunities.

Sources:

CBRE Research (Q1 2026), Winning Codes for Retail 2035 - Boston Consulting Croup, IONIC Asset - Angel One Chart Book (March 2026), Hindustan Times

Experience-led Consumption

Consumers increasingly prioritize experiences alongside transactions. Retail environments integrating shopping, dining, entertainment and community interactions continue witnessing stronger engagement and longer dwell periods. Physical retail increasingly functions as a platform for engagement and experience creation rather than purely transactional activity.

As a result, developers and landlords are increasingly adopting flexible leasing structures and curated tenant mixes to maximize consumer engagement and improve asset productivity.

Supply Environment and Market Positioning

Despite strong demand conditions, the sector continued operating within a relatively constrained supply environment during CY 2025, supporting healthy occupancy levels and balanced market fundamentals. Future supply expansion is expected to remain calibrated, with a larger share of additions skewed toward CY 2028.

Investment-grade inventory remains central to the next phase of organized retail expansion. Organized retail has continued maintaining a strong upward trajectory and future growth remains dependent on the addition of quality inventory aligned with evolving occupier requirements.

Future supply additions remain concentrated across established consumption centres characterized by strong catchment quality, mature retail ecosystems and sustained leasing demand. Strong absorption trends are expected to support occupancy resilience and preserve healthy market conditions over the medium term. Supply and absorption trends also indicate expected moderation in vacancy levels despite future inventory additions, reinforcing confidence in the long-term resilience of organized retail assets.

Several structural trends continue shaping the future retail landscape:

? Increasing preference toward destination-led and premium retail environments

? Expansion of mixed-use and integrated developments

? Rising adoption of omnichannel and digital-first retail strategies

? Growth of convenience-led and transit-oriented retail formats

? Increasing allocation toward food, beverage and entertainment offerings as key footfall drivers

Outlook

The outlook for Indias retail real estate sector remains positive and supported by strong structural fundamentals. Sustained domestic consumption, calibrated supply growth, increasing institutional participation and evolving consumer preferences continue creating a favorable operating environment.

Strong leasing momentum, improving supply visibility and projected reductions in vacancy levels indicate a sector moving toward greater maturity and resilience. As retail environments increasingly evolve into integrated lifestyle and experience ecosystems, organized retail remains well positioned to participate in Indias long-term consumption and urbanization growth story.

Opportunity for Nexus

Against the backdrop of Indias strong consumption-led growth, increasing urbanization, premiumization trends and the continued shift toward organized retail formats. We are well positioned to benefit through our portfolio of urban consumption centres, strong tenant relationships and active asset management. The Trust remains strategically placed to capture embedded growth opportunities, strengthen tenant productivity, pursue selective acquisitions and create long-term value through scale, premiumization and differentiated consumer experiences.

Profit and Loss

Total Income

Our total income comprises revenue from operations and other income.

Revenue from Operations

Revenue from operations is derived from multiple income streams across our portfolio, reflecting the diversified nature of our business. The principal sources of operating revenue include lease rentals, maintenance services, marketing activities, parking income and hospitality income.

Maintenance Services

Maintenance service income relates to services provided to occupants across our assets, including common area maintenance and HVAC services. Revenue from this stream is generally aligned with underlying maintenance expenses and includes costs associated with refurbishment, upgrades and other asset-level maintenance activities.

Parking Income

Parking income is generated from parking facilitation services provided at relevant assets within our portfolio.

Other Income

Our other income primarily comprises income earned from financial and non-operational sources. This includes interest income on fixed deposits, security deposits, inter-corporate deposits and income tax refunds, along with interest income from other sources. Other income also includes liabilities written back, gains arising from fair valuation of financial instruments measured at fair value through profit or loss (FVTPL), gains on sale of financial assets measured at amortized cost, gains on sale of financial assets classified at FVTPL, and miscellaneous income.

Lease Rentals

Lease rental income is generated from the leasing of our assets and typically comprises a combination of minimum guaranteed rentals and turnover-based rentals, as stipulated under the respective lease agreements for the relevant period.

Marketing Activities

Marketing income primarily comprises revenue earned from signage rights, space on hire, collaborative marketing arrangements undertaken across our portfolio to enhance tenant visibility and customer engagement.

Hospitality Business

Revenue comprises sale of rooms, food and beverages and allied services at the hospitality assets within our portfolio.

Expenses

Our expenses primarily comprise costs incurred in the course for operating and maintaining our assets, employee-related expenses, finance costs, cost of material and components consumed in our hotel portfolio and other administrative expenses.

Operating and Maintenance Expenses

Operating and maintenance expenses primarily comprise costs associated with power and fuel (net of recoveries), manpower charges, business support services, management fees to operators of hospitality business and repairs and maintenance relating to plant and machinery, buildings and other assets.

Employee Benefits Expenses

Employee benefits expenses include costs relating to salaries, bonuses and allowances, contributions to provident and other funds, gratuity, compensated absences, and staff welfare expenses.

Cost of Materials and Components Consumed

This primarily comprises the cost of food and beverages sold at our hospitality business.

Other Expenses

Other expenses primarily include legal and professional fees, property taxes, insurance costs, and marketing and promotional expenses.

Finance Costs

Finance costs mainly include interest expenses on term loans/LRDs, non-convertible bonds, commercial papers, lease deposits and financial instruments. This category also includes pre-closure charges, and bank charges.

Depreciation and Amortization Expenses

These expenses comprise depreciation of property, plant and equipment, investment property, and right-of-use assets, as well as amortization of intangible assets.

Share of Net Profit/(Loss) of Investment Accounted for Using the Equity Method

Our 50% investment in ITIPL, which owns Treasure Island, is accounted for using the equity method in the consolidated financial statements. Accordingly, our consolidated results include our share of ITIPLs profit or loss and other comprehensive income, as applicable.

Tax Expense

Our tax expense comprises current tax, tax adjustments relating to earlier years, and deferred tax charge or credit, as applicable.

Earnings Before Interest, Depreciation, Amortization, Share of Net Profit/(Loss) of Investment Accounted for Using Equity Method, Exceptional Items and Tax (EBITDA)

We have elected to present EBITDA as a separate line item on the face of the Consolidated Statement of Profit and Loss. EBITDA excludes finance costs, depreciation and amortization expenses, share of net profit or loss of investments accounted for using the equity method, exceptional items and tax, and is used as a measure of operating performance.

Consolidated Financial Performance Table

Particulars	For the Year Ended March 31,2026	For the Year Ended March 31,2025	% Variance
Income
Revenue from operations	2,568.00	2,282.89	12%
Other income	87.30	116.52	25%
Total Income	2,655.30	2,399.41	11%
Expenses
Cost of material and components consumed	23.28	19.11	22%
Employee benefits expense	116.75	94.97	23%
Operating and maintenance expenses	428.43	387.06	11%
Other expenses	266.61	229.51	16%
Total Expenses	835.07	730.65	14%
Earnings before finance costs, depreciation, amortization and tax	1,820.23	1,668.76	9%
Finance costs	457.95	394.34	16%
Depreciation and amortization expenses	619.84	586.12	6%
Profit before share of net profit of investment accounted for using equity method and tax	742.44	688.30	8%
Share of net profit of investment accounted for using equity method	0.85	9.55	(91%)
Profit before tax	743.29	697.85	7%
Tax expensetd>	339.82	215.04	58%
Profit for the year	403.47	482.81	(16%)
Other comprehensive income/fexpenses)	0.41	(0.19)	(319%)
Total comprehensive income for the year	403.88	482.62	(16%)

NXST reported 12% YoY growth in Revenue from operations and 9% YoY growth in Earnings before finance costs, depreciation, amortization and tax. NXST reported profit of Rs.403.47 crore for FY 2025-26, a reduction of 16% over previous year due to the amendments to the Minimum Alternate Tax (MAT) introduced by the Finance Act, 2026 and a one-time tax expense of Rs.122.81 crore recognized in the consolidated statement of profit and loss.

Income

Revenue from Operations

NXST derives a significant portion of its revenue from lease rentals, comprising minimum guaranteed rentals and turnover-based rentals, in accordance with the respective lease agreements. Lease tenures are structured to balance stability and growth, with typical terms ranging from 3-9 years for in-line tenants, 9-25 years for anchor tenants and 3-9 years for office tenants, with rent escalations of 12-15% every 3 years. The Trusts turnover-based rentals range from 5% to 25% of tenant sales, enabling alignment between rental income and tenant performance while supporting long-term sustainability of the leasing model.

In addition to lease rentals, NXST generates revenue from maintenance services, marketing activities, parking income, hospitality operations, and other miscellaneous sources. These income streams are supported by the Trusts diversified asset portfolio, which includes retail assets as well as office and hotel assets, contributing to operating efficiency and resilience of cash flows. During FY 2025-26, NXST recorded growth across its key revenue segments, reflecting stable portfolio performance and effective asset management.

Particulars	For the Year Ended March 31,2026	For the Year Ended March 31,2025	% Variance
Revenue from lease rentals	1,713.63	1,534.80	12%
Maintenance services	461.60	420.07	10%
Marketing income	119.88	110.22	9%
Parking income	78.08	63.33	23%
Sale of renewable energy	1.52	2.13	(29%)
Hospitality business	179.47	141.60	27%
Other operating revenue	13.82	10.74	29%
Total	2,568.00	2,282.89	12%

Segment-wise Net Operating Income (NOI)

During FY 2025-26, NXST recorded growth across its key revenue segments, reflecting stable portfolio performance and effective asset management.

Revenue from Lease Rentals and Maintenance Services:

The revenue from lease rental and maintenance services increased primarily due to the contracted escalations, new acquisition (Refer page no. 49 of the Annual Report), lease up of vacant space, mark to market on renewed and churned leases.

Revenue from Hospitality Business:

The increase in the hospitality revenue is primarily due to the better occupancy and average daily rates realization from our hospitality portfolio.

Other Income

Particulars	For the Year Ended March 31,2026	For the Year Ended March 31,2025	% Variance
Gain on sale of financial assets and net gain on fair value changes	67.11	91.61	(27%)
Interest income	16.36	20.82	(21%)
Liabilities written back	2.53	2.63	(4%)
Reversal of provision for expected credit loss	0.32	0.39	(18%)
Sale of Scrap	0.62	0.62	0%
Miscellaneous income	0.36	0.45	(20%)
Total	87.30	116.52	(25%)

Cain on Sale of Financial Assets and Net Cain on Fair Value Changes

During the year, the net gain has reduced owing to reduction in funds invested and mark to market losses on the investment in our mutual fund

Interest Income

Comprises of Interest income earned on intercorporate loans, tax refund, security deposit given, bank deposits etc. Interest earned on tax refunds is lower than last year and interest on intercorporate loans has reduced owing to repayment of principal.

Expenses

The Consolidated Financial Statements include expenses as set forth in the below table: Cost of material and components consumed

Particulars	For the Year Ended March 31, 2026	For the Year Ended March 31,2025	% Variance
Cost of material and components consumed	23.28	19.11	22%
Total	23.28	19.11	22%

Cost of material and components consumed has increased in line with the increase in revenue with no change in overall margin.

Employee benefits expense

Particulars	For the Year Ended March 31,2026	For the Year Ended March 31,2025	% Variance
Salaries, bonus and allowances	90.06	75.53	19%
Contribution to provident and other funds	4.99	4.23	18%
Gratuity expense	3.79	1.73	119%
Compensated absences	4.31	2.56	68%
Staff welfare expenses	13.60	10.92	25%
Total	116.75	94.97	23%

The overall increase is attributable to yearly increments, increase in the headcount and acquisition of asset viz; MBD Neopolis mall and Radisson, Ludhiana.

Operating and maintenance expenses

Particulars	For the Year Ended March 31, 2026	For the Year Ended March 31, 2025	% Variance
Power and fuel (net off recoveries)	68.21	68.64	(1%)
Manpower charges	147.67	126.93	16%
Property management fees	117.92	104.93	12%
Repairs and maintenance	94.63	86.56	9%
Total	428.43	387.06	11%

Operating and maintenance expenses is a derivative of the revenue and inflation. The variance in the manpower, repairs and maintenance expenses was primarily due to increase in revenue and acquisition during the year. The power and fuel reduction is attributable to the commissioning of new renewable projects.

Other expenses

Particulars	For the Year Ended March 31,2026	For the Year Ended March 31,2025	% Variance
Marketing and promotional expenses	106.43	89.28	19%
Property tax	47.80	41.26	16%
Other expenses	112.38	98.97	14%
Total	266.61	229.51	16%

Marketing and advertisement expenses have increased due to increase in promotional activities and spending on newly acquired assets. Other expenses comprises of legal and professional fees, office and admin expenses, corporate social responsibility related expenses.

Segment Results

Particulars	For the Year Ended March 31,2026	For the Year Ended March 31,2025	% Variance
Mall	1,734.84	1,534.06	13%
Office	102.36	90.80	13%
Hospitality	81.78	69.28	18%
Others	10.66	16.89	(37%)
Segment Result	1,929.64	1,711.03	13%

Summary of Cash Flow Statement

As of March 31, 2026, NXST held Rs.36.03 crores in cash and cash equivalents, Tl,107.60 crores in liquid mutual fund investments, and Rs.60.03 crores in other bank balances and fixed deposits. NXST expects to meet its liquidity requirements over the next twelve months through a combination of existing cash reserves, operating cash flows, and short and long-term borrowings, and believes that it has adequate working capital to meet its obligations. A summary of changes in cash and cash equivalents during the year is set out below.

Particulars	For the Year Ended March 31, 2026	For the Year Ended March 31, 2025
Net cash generated from operating activities	1,661.99	1,532.41
Net cash generated from/(used in) Investing activities	(731.43)	(964.77)
Net cash generated from/(used in) Financing activities	(913.83)	(587.74)
Net increase/(decrease) in cash and cash Equivalents	16.73	(20.10)
Cash and cash equivalents at the beginning of the year	19.30	39.40
Cash and cash equivalents at the end of the year	36.03	19.30

Cash Flow from Operating Activities for FY 2025-26

For FY 2025-26, NXST generated net cash from operating activities of n,661.99 crores. Profit before tax for the year stood at Rs.743.29 crores, which was adjusted for the share of net profit or loss from investments accounted for using the equity method, along with non-cash items and items relating to financing and investing activities. These adjustments aggregated to Rs.983.87 crores, driven primarily by finance costs of Rs.457.95 crores, depreciation and amortization expenses of Rs.619.84 crores. Adjustments related to treasury income (including fair value gains on investments) and others amount to Rs.93.92 crores.

Changes in working capital contributed Rs.82.63 crores, largely reflecting an increase in security deposits received from tenants. Cash flows from operating activities were partially offset by tax payments (net of refunds) amounting to Tl47.80 crores.

Cash Flow from Investing Activities

Net cash used in investing activities for FY 2025-26 amounted to f731.43 crores. This was primarily attributable to acquisitions undertaken during the year, along with capital expenditure incurred for capacity expansion of renewables and infrastructure upgrades across the portfolio.

Cash Flow from Financing Activities

Net cash used in financing activities for FY 2025-26 stood at Rs.913.83 crores. This primarily reflects debt raised during the year of 1,247 crores, offset by distributions paid to unitholders amounting to Cl,332.44 crores, repayment of debentures as per expiry C700.00 crores and finance costs paid of Rs.442.26 crores.

Liquidity and Capital Resources

NXST has historically met its working capital and capital expenditure requirements through a balanced mix of internal accruals and external funding sources. NXST has primarily relied on cash flows generated from operations to support ongoing business activities and fund growth initiatives. In addition, NXST has accessed short-term and long-term borrowings from banks and other financial institutions, as required, to meet its funding requirements in a disciplined manner.

NXSTs low leverage profile and strong credit fundamentals continue to provide adequate financia flexibility and headroom to support future growth. NXST has also raised funds through the issuance of non-convertible debentures, which have been utilized to support inorganic growth initiatives, including acquisitions. As of March 31,2026, NXSTs weighted average cost of borrowing stood at 7.3%, reflecting a reduction of 60 basis points compared to the previous year. Improvement has been driven by NXSTs robust financial performance, strong portfolio occupancy levels, prudent capital management and established credit profile.

Debt Maturity Schedule

Weighted average maturity of debt profile stands at 7.5 years with 7.5% and 19% of debt due for repayment in FY 2027 and FY 2028, respectively.

Particulars	Carrying Amount	Total	0-12 Months	1-5 Years	>5 Years
As of March 31,2026
Borrowings - including current maturities and interest accrued	3,660.18	5,628.59	455.49	1,639.00	3,534.10
Non-convertible debentures	2,545.46	2,974.72	188.87	2,785.85	-
Total	6,205.64	8,603.31	644.36	4,424.85	3,534.10

Distributions (NDCF) and Tax Implications on Distribution

NXSTs Net Distributable Cash Flow (NDCF) is derived from the cash flows generated by its underlying assets and investments. NDCF received by NXST from its SPVs and/or Investment Entity comprises dividends, interest income, principal loan repayments and other income, in accordance with the applicable distribution framework.

For the financial year ended March 31, 2026, NXSTs cumulative distribution amounted to Tl ,375.77 crores, translating to Rs.9.081 per unit. The distribution was structured to include Rs.2.629 per unit as interest,

Rs.5.386 per unit as dividend, Rs.0.033 per unit as other income, and Rs.1.033 per unit towards amortization of SPV-level debt, reflecting the diversified nature of cash flows received at NXST level.

On an annualized basis and based on an issue price of nOO per unit, the distribution yield for the year stood at 9.081%.

Taxability of Income Based on Residential Status

Nature of Income

Resident Unitholders
Interest income	At applicable rates*
Rental income	At applicable rates*
Return of Capital	To be adjusted from cost of acquisitions of units
Qualified dividend income	Tax-exempt (Refer note below)
Disqualified dividend income	At applicable rates* (Refer note below)
Other income taxable in hands of REIT	Tax-exempt

Tax Rates

Non-Resident Unitholders
Interest income	5%*
Rental income	At applicable rates**
Qualified dividend income	Tax-exempt (Refer note below)
Disqualified dividend income	At applicable rates** (Refer note below)
Other income taxable in hands of REIT	Tax-exempt

*The income shall be subject to deduction of tax at source

**Non-resident unitholders may seek to avail beneficial provisions under the applicable Double Taxation Avoidance Agreement (‘DTAAj that India may have entered into with their respective country of residence ++tax rate subject to applicable surcharge and cess.

Note: Taxability of income in the nature of dividend distributed by REIT to unitholders is dependent on the taxation regime adopted by the SPV(s) which distributes the dividend to REIT. If the SPV(s) has not opted for a concessional corporate tax rate under section 115BAA of the ITA (‘Qualifying SPVj dividend received from such Qualifying SPV (‘Qualified Dividend) and distributed by REIT is exempt in the hands of the Unitholders. Any dividend other than Qualified Dividend distributed by the REIT (‘Disqualified Dividend) is taxable in the hands of the Unitholders.

Net Asset Value (NAV)

The Statement of NAV is as follows:

Particulars	As of March 31, 2026	As of March 31, 2025
	Book Value	Fair Value	Book Value	Fair Value
(A) Total Assets	20,604.40	32,240.60	20,547.95	29,324.59
(B) Total Liabilities	7,394.30	7,394.30	6,409.29	6,322.54
(C) Net Assets	13,210.10	24,846.30	14,138.66	23,002.05
(D) No. of Units (millions)	151.50	151.50	151.50	151.50
NAV (C)/(D)	87.20	164.00	93.32	151.83

Capital Expenditures

Historical Capital Expenditure

NXSTs capital expenditure represents cash outflows incurred during the year towards the acquisition and enhancement of property, plant and equipment, investment property and intangible assets. For the financial year ended March 31, 2026, NXST incurred capital expenditure of 119 crores.

These expenditures were primarily directed towards renovation and upgrade initiatives across the portfolio, including sustainability-led investments such as installation of solar energy infrastructure across retail assets. These investments reflect NXSTs continued focus on asset quality enhancement and long-term operational efficiency.

Planned Capital Expenditure

NXST intends to undertake selective asset upgrade initiatives across its portfolio and currently anticipates capital expenditure of approximately 97 over the next 12 months primarily for upgrade & renovation of newly acquired assets and lifecycle and sustainability related capital expenditure. These projects are expected to be funded through a combination of sanctioned financing arrangements and internal cash flows, consistent with NXSTs capital allocation framework.

Actual capital expenditure may differ from current estimates depending on various factors, including operating cash flows, financial performance, availability of financing, project timelines and evolving regulatory or economic conditions. Additionally, construction timelines, development-related risks, cost escalations, delays in statutory approvals and changes in the legislative environment may impact the timing and scope of planned investments.

Contingent Liabilities and Capital Commitments

Particulars	As of March 31, 2026	As of March 31, 2025
Claims against the SPVs not acknowledged as debts Contingent liabilities in respect of
GST/Input Tax credit	87.29	92.96
Service-Tax matters	32.49	31.94
Income-Tax matters	8.45	77.55
Property-Tax matter	28.63	28.63
Total Contingent liabilities	156.86	231.09

As of March 31, 2026, NXST reported total contingent liabilities of 156.86 crores, compared to 231.09 crores as of March 31, 2025. These primarily comprise unresolved claims relating to GST/Input Tax Credit of 87.29 crores, Service Tax of 32.49 crores, Income Tax of 8.45 crores, and Property Tax of 28.63 crores. These matters are currently under dispute and have not been acknowledged as debts by our Trust.

NXST also reported capital and other commitments of 13.19 crores in respect of contracts remaining to be executed on capital account (net of advances). The year-on-year movement in commitments reflects changes in the execution status of capital projects, including the completion of renewable energy and other infrastructure initiatives during the year.

Key ratios

Particulars	As at/For the Tear Ended March 31, 2026	As at/For the Year Ended March 31, 2025
NOI margin	75%	75%
Debt service coverage ratio	4.12	4.44
Loan to value (%)	18%	16%
Net Debt to EBITDA	2.97	2.67

NOI Margin

The NOI Margin remained stable at 75% in FY26, consistent with FY25, indicating sustained operational efficiency and effective cost management.

Debt Service Coverage Ratio

The DSCR decreased from 4.44x in FY25 to 4.12x in FY26. While the ratio remains at a healthy level, the decline is primarily attributable to an increase in debt on account of additional borrowings taken up for acquisitions.

Loan to value (%) and Net Debt to EBITDA

Increase attributable to debt raised to fund acquisitions and capital expenditure during the year. NXSTs loan to value ratio (net debt basis after including mutual fund investments and excluding distribution announced for the fourth quarter of fiscal 2026) is 18% as on March 31, 2026. This provides NXST with enough headroom to meet the fund required for inorganic growth.

Outlook

As we enter FY 2026-27, we remain strategically positioned to leverage both embedded growth opportunities within our existing portfolio and inorganic expansion opportunities that can strengthen our platform and create long-term value. The Trust continues to benefit from a high-quality portfolio of dominant urban consumption centres located across key Tier 1 and 2 markets, supported by sustained consumption growth and resilient tenant demand. During FY 2025-26, consumption across the portfolio remains robust, supported by healthy performance across categories such as Fashion, Beauty and Personal Care, Jewellery, Entertainment, Electronics and Food & Beverage.

Our leasing fundamentals remain robust, with strong occupancy levels, healthy re-leasing spreads and sustained demand for premium Crade-A retail spaces. We continue to focus on category optimization, premiumization initiatives and tenant curation to enhance portfolio productivity and consumer engagement.

Simultaneously, our technology-enabled initiatives, including the Nexus One platform and consumer engagement ecosystem, continue to strengthen consumer relationships and support tenant sales growth.

We also maintain a disciplined approach towards inorganic growth. We continue to evaluate acquisition opportunities selectively and remain disciplined in our investment approach, with emphasis on strategic fit, valuation discipline and long-term DPU accretion.

Alongside growth initiatives, sustainability continues to remain central to our strategy. We are progressively increasing renewable energy integration across assets, strengthening resource efficiency and embedding sustainability-led operating practices throughout the portfolio. With a strong operating platform, disciplined capital allocation and a resilient consumption outlook, we remain confident in our ability to drive sustained growth and create long-term value for all stakeholders.

Management

At Nexus Select Trust, effective risk management remains integral to our strategy and business operations. The Board of Directors of the Manager retains overall responsibility for establishing and overseeing our Trusts risk management framework and ensuring that material risks are appropriately identified, assessed and managed.

The Trust has implemented a comprehensive Enterprise Risk Management framework designed to identify strategic, operational, financial and compliance-related risks and establish suitable mitigation mechanisms. Risk management policies and systems are periodically reviewed and enhanced to reflect evolving business requirements, regulatory developments and market conditions.

The Risk Management and Audit Committee supports the Board in its oversight responsibilities and regularly reviews risk management processes and control effectiveness. Internal audit functions conduct periodic reviews of controls and risk mitigation mechanisms, with findings presented for review and corrective action taken where necessary.

The Trust continues to closely monitor external developments including changes in macroeconomic conditions, consumer demand patterns, pricing dynamics and supply-side factors that may influence business performance. Through a proactive and integrated risk management approach, we remain focused on strengthening resilience and preserving long-term value creation.

Resources

At Nexus Select Trust, our people remain central to our growth journey and long-term success. With a workforce of 4,600+ employees, we continue to foster a collaborative, inclusive and high- performance workplace culture that supports employee well-being, professional growth and continuous learning. We believe that employees across all levels play a critical role in delivering our strategic objectives and accordingly continue to invest in structured learning programs, capability development initiatives and leadership interventions aimed at enhancing skills, improving productivity and building future-ready talent across the organization.

The Trust remains committed to maintaining a workplace built on openness, accessibility and continuous feedback. Senior leadership actively engages with employees and supports a culture where concerns and grievances can be addressed effectively and transparently.

We are proud to have been recognized as a Great Place to Work for the sixth consecutive year, reinforcing our commitment to creating a workplace culture built on trust, inclusivity and employee engagement. During FY 2025-26, we also received recognition for HR excellence, including awards for learning and development, succession planning and diversity initiatives.

Diversity and inclusion continue to remain key priorities. Women represented approximately 28% of our workforce during FY 2025-26, reflecting our continued progress toward building a more diverse organization. Initiatives such as LEAD and LEAP continue to support leadership development and internal talent progression across the organization.

Employee wellbeing remains a priority area and programs focused on mental health, engagement and support continue to strengthen our employee value proposition. Safety also remains a non- negotiable priority, and we continue to maintain a strong focus on safe work practices across all operational locations.

Digital Enablement

Technology and digital capabilities continued to play an important role in strengthening operational effectiveness, enhancing consumer engagement and supporting portfolio-wide efficiencies during FY 2025-26. We continued to leverage technology- enabled platforms and data-driven insights to improve consumer experiences, support tenant engagement and enhance decision-making across our operations. The continued expansion of NexusONE strengthened our consumer ecosystem by enabling personalized engagement, loyalty initiatives and deeper consumer insights. Alongside consumer-facing technologies, we remained focused on strengthening IT infrastructure, improving system integration and enhancing digital capabilities to support business continuity, operational resilience and scalable growth. Our technology investments continue to support innovation and reinforce our long-term objective of building future-ready retail destinations.

Controls

The Trust maintains a robust internal financial control framework designed to ensure operational efficiency, integrity of financial reporting and compliance with applicable laws and regulations.

The internal control environment is supported by well-defined organizational structures, policies and standard operating procedures, enabling effective implementation and monitoring across functions. These controls are designed to safeguard assets, ensure accuracy and completeness of financial records, mitigate risks of fraud and support timely and reliable financial reporting.

The Trust adopts a risk-based internal audit approach and engages independent external firms to conduct periodic reviews of operations and control processes. The annual internal audit plan is reviewed and approved by the Audit Committee, with a focus on key business risks and critical operational areas.

The Enterprise Risk Management framework further strengthens the control environment by integrating strategic, operational and compliance risks into decision-making processes. The Audit Committee and the Board periodically reviewthe adequacy and effectiveness of internal controls and provide guidance on necessary improvements.

The statutory auditors, SRBC & Co LLP have audited the standalone and consolidated financial statements and have issued an unmodified opinion on the adequacy and operating effectiveness of internal financial controls over financial reporting for FY 2025-26.

Statement

The Management Discussion and Analysis contains statements regarding the Trusts objectives, projections, estimates and expectations which may constitute forward-looking statements, within the meaning of applicable securities laws and regulations.

These statements are based on certain assumptions, expectations and projections regarding future events and are therefore subject to various risks and uncertainties.

Actual results may differ materially from those expressed or implied due to factors including changes in economic conditions, consumer demand, market dynamics, competitive intensity, regulatory developments, taxation policies and other factors beyond the control of the Trust and the Manager.

Readers are cautioned not to place undue reliance on such forward-looking statements. Any forward-looking statements are for information only and the Manager assumes no responsibility to publicly amend, modify or revise any forward- looking statements or projections, based on any subsequent development, information or events, or otherwise.