Monthly Dividend Stock In Focus: Nexus Industrial REIT

Published on January 23rd, 2026 by Bob Ciura

Monthly dividend stocks have instant appeal for many income investors. Stocks that pay their dividends each month offer more frequent payouts than traditional quarterly or semi-annual dividend payers.

For this reason, we created a full list of over 100 monthly dividend stocks.

You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yields and payout ratios) by clicking on the link below:

Monthly Dividend Stock In Focus: Nexus Industrial REIT

Nexus Industrial REIT (EFRTF) is a monthly dividend stock with a high yield. This potentially makes the stock more attractive for income investors looking for more frequent dividend payouts.

This article will analyze Decisive Dividend in greater detail.

Business Overview

Nexus Industrial REIT is a Canada-focused pure-play industrial real estate investment trust that owns, operates, and develops industrial distribution, logistics, manufacturing, and light-industrial properties across primary and secondary Canadian markets.

As of September 30, 2025, the REIT owned 87 properties comprising 12.1 million square feet of gross leasable area, with over 99% of net operating income generated from industrial assets following the near-complete exit from retail and office properties.

The portfolio is geographically diversified across Ontario, Alberta, Saskatchewan, Québec, and Western Canada, with in-place and committed occupancy of 96% and a weighted average lease term of 7.0 years. The REIT generated $124 million in revenue last year.

On November 12th, 2025, Nexus Industrial REIT reported its Q3 results for the quarter ended September 30th, 2025, with revenue from real estate properties of $31.2 million, down 5% year over year, reflecting the impact of asset dispositions tied to the Trust’s transition to a pure-play industrial portfolio.

Net operating income was $23.2 million, down about 1% year over year, as industrial same-property NOI growth of 2.9% and contributions from completed developments were more than offset by lost NOI from sold assets.

Operating fundamentals remained solid, with industrial occupancy at 96% and average renewal rent spreads of 13% during the quarter.

FFO per unit fell one cent year over year to $0.13. For the full-year, we expect FFO per share of $0.46.

Growth Prospects

Nexus’ FFO per share has been mostly stable over the past decade, with some downward movement mostly attributable to the depreciation of CAD against USD.

FFO per share increased as the Trust scaled its platform through acquisitions and benefitted from operating leverage as the portfolio grew.

The period also included some year-specific normalization effects, but the underlying driver was external growth, with newly acquired properties contributing incremental NOI and supporting higher per-unit cash flow as the asset base expanded.

While acquisitions continued to add NOI and support top-line growth, this was partially offset by property dispositions and higher interest expense associated with financing that growth. As a result, per-share gains were less consistent.

From 2020 through 2024, FFO/share trended gradually lower despite improving industrial fundamentals. Rent hikes, CPI-linked increases, and lease renewals supported same-property NOI, but these positives were increasingly outweighed by higher interest expense in a rising-rate environment, increased borrowing to fund acquisitions and development, and the impact of asset sales reducing NOI.

By 2023 and 2024, financing costs and capital allocation decisions became the dominant factors, explaining why FFO per share declined even as the Trust successfully improved portfolio quality and increased its exposure to industrial assets.

Moving forward, we forecast no growth in FFO per share as higher interest expense, development carrying costs, and ongoing capital recycling are likely to offset incremental NOI gains from rent escalations and industrial leasing strength.

We also expect no growth in the dividend.

Dividend & Valuation Analysis

From a recession perspective, industrial demand is more resilient than most property types, but a prolonged economic slowdown could pressure tenant demand and delay leasing leaving Nexus better positioned operationally than financially.

In the meantime, the REIT pays out the entirety of its FFO, so we don’t blindly trust the dividend.

Nexus Industrial has materially improved its asset quality by transitioning to a near pure-play industrial portfolio with high occupancy and long lease terms, which supports stable underlying property cash flows.

Its focus on distribution, logistics, and light-industrial assets provides a structural competitive advantage, benefiting from long-term supply-chain and e-commerce demand.

However, financial safety is constrained by elevated leverage (adjusted net debt to adjusted EBITDA near 10.2×) and sensitivity to interest rates, which has weighed on per-share cash flow and limits near-term flexibility.

Final Thoughts

Nexus Industrial REIT has meaningfully upgraded its portfolio to high-quality industrial assets, but elevated leverage and ongoing capital recycling continue to constrain near-term per-unit cash flow growth despite strong fundamentals.

We forecast annualized returns of 3.6% through 2030, as returns from the hefty dividend could be notably offset by strong valuation headwinds. Because of this and the lack of dividend growth, we rate Nexus Industrial a sell.