Discounted Cash Flow (DCF) Analysis Levered

Nexus Industrial REIT (NXR-UN.TO)

$9.71

+0.09 (+0.94%)

All numbers are in Millions, Currency in USD

Stock DCF: 21.09 | 9.71 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	37	54.10	60.01	61.39	83.56	103.52	128.25	158.89	196.85	243.87
Revenue (%)
Operating Cash Flow	11.62	19.53	23.35	24.35	25	36.44	45.14	55.92	69.28	85.84
Operating Cash Flow (%)
Capital Expenditure	-1.19	-3.37	-4.04	-5.66	-5.37	-6.59	-8.16	-10.11	-12.52	-15.52
Capital Expenditure (%)
Free Cash Flow	10.43	16.16	19.31	18.69	19.62	29.85	36.98	45.82	56.76	70.32

Weighted Average Cost Of Capital

Share price	$ 9.71
Beta	1.239
Diluted Shares Outstanding	57.30
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	2.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.327
Total Debt	679.55
Total Equity	556.41
Total Capital	1,235.95
Debt Weighting	54.98
Equity Weighting	45.02
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	37	54.10	60.01	61.39	83.56	103.52	128.25	158.89	196.85	243.87
Operating Cash Flow	11.62	19.53	23.35	24.35	25	36.44	45.14	55.92	69.28	85.84
Capital Expenditure	-1.19	-3.37	-4.04	-5.66	-5.37	-6.59	-8.16	-10.11	-12.52	-15.52
Free Cash Flow	10.43	16.16	19.31	18.69	19.62	29.85	36.98	45.82	56.76	70.32
WACC
PV LFCF						28.31	33.27	39.09	45.94	53.98
SUM PV LFCF										200.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.43
Free cash flow (t + 1)	71.73
Terminal Value	2,091.13
Present Value of Terminal Value	1,605.32

Intrinsic Value

Enterprise Value	1,805.91
Net Debt	597.27
Equity Value	1,208.65
Shares Outstanding	57.30
Equity Value Per Share	21.09