Killam Apartment REIT Un (KMP.UN) AI Stock Analysis

• Market Cap: C$2.15B
• Dividend Yield: 4.04%
• Average Volume (3M): 311.15K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.86
• Revenue Growth: 5.82%
• EPS Growth: 83.08%
• Country: CA
• Employees: 495
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.27
• Shares Outstanding: 121,143,040
• 10 Day Avg. Volume: 399,061
• 30 Day Avg. Volume: 311,153
• PEG Ratio: 0.02
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 5.76
• P/FCF Ratio: 31.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$21.50
• Price Target Upside: 21.06% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: C$20.00 ▲(12.61% Upside)

Killam Apartment REIT Un's strong financial performance and attractive valuation are the primary drivers of its overall score. While technical indicators suggest bearish momentum, the company's strategic initiatives and positive earnings outlook provide a balanced perspective. The stock's low P/E ratio and high dividend yield enhance its appeal, despite some operational challenges highlighted in the earnings call.

Positive Factors

Strong Financial Performance

The company's strong profitability and effective cash flow management indicate a robust financial position, supporting sustainable operations and potential for future growth.

Same-Property NOI Growth

Consistent NOI growth across properties highlights operational efficiency and effective management, contributing to long-term revenue stability and asset value enhancement.

Energy Efficiency Initiatives

Investments in energy efficiency reduce operational costs and enhance sustainability, aligning with long-term environmental goals and potentially increasing property appeal.

Negative Factors

Increased Turnover Rates

Rising turnover rates can lead to higher vacancy and re-leasing costs, impacting revenue stability and operational efficiency over the medium term.

Use of Rental Incentives

Reliance on rental incentives to maintain occupancy can pressure margins and signal challenges in demand, potentially affecting long-term profitability.

Interest Expense Increase

Rising interest expenses can strain cash flow and reduce financial flexibility, impacting the company's ability to invest in growth initiatives.

Killam Apartment REIT Un Business Overview & Revenue Model

Company Description

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating, managing and developing a $3.6 billion portfolio of apartments and manufactured home communities. Killam's strategy to enhance value and profitability focuses on three priorities: 1) increasing earnings from existing operations, 2) expanding the portfolio and diversifying geographically through accretive acquisitions, with an emphasis on newer properties, and 3) developing high-quality properties in its core markets.

How the Company Makes Money

Killam Apartment REIT generates revenue primarily through rental income from its extensive portfolio of residential properties. The company collects rent from tenants residing in its apartment units and manufactured home communities, which forms the backbone of its recurring revenue stream. Additionally, Killam benefits from property appreciation, which can enhance the value of its real estate assets over time. The company may also engage in property development and redevelopment projects, adding new units or upgrading existing properties to command higher rental rates. Killam's earnings are further supplemented by strategic partnerships and joint ventures that enable expansion and diversification of its asset base. The focus on maintaining high occupancy rates and tenant satisfaction is crucial in sustaining its revenue model.

Killam Apartment REIT Un Financial Statement Overview

Summary

Killam Apartment REIT Un demonstrates strong financial performance with high profitability margins and effective cash flow management. The balance sheet is healthy with manageable leverage, and the company shows solid returns on equity. However, revenue growth has slowed, which slightly tempers the overall financial outlook.

Income Statement

Killam Apartment REIT Un demonstrates strong profitability with a high gross profit margin of 66.36% and a robust net profit margin of 149.32% in the TTM. The company has shown consistent revenue growth, albeit at a slower rate recently. EBIT and EBITDA margins are also strong, indicating efficient operations.

Balance Sheet

The balance sheet reflects a healthy financial position with a moderate debt-to-equity ratio of 0.69, suggesting manageable leverage. Return on equity is solid at 18.38%, indicating effective use of equity capital. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Cash flow analysis shows positive trends with a significant free cash flow growth rate of 228.4% in the TTM. The operating cash flow to net income ratio is moderate, suggesting room for improvement in cash conversion efficiency. The free cash flow to net income ratio is healthy, indicating good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	377.68M	367.04M	349.96M	330.64M	291.98M	262.33M
Gross Profit	251.24M	242.87M	225.85M	208.71M	184.29M	164.50M
EBITDA	229.55M	223.51M	206.22M	193.79M	166.44M	150.62M
Net Income	561.20M	667.84M	266.32M	122.52M	285.51M	146.02M
Balance Sheet
Total Assets	5.55B	5.44B	5.09B	4.86B	4.58B	3.78B
Cash, Cash Equivalents and Short-Term Investments	10.83M	13.21M	14.09M	9.15M	6.48M	2.56M
Total Debt	2.21B	2.21B	2.19B	2.21B	2.06B	1.69B
Total Liabilities	2.35B	2.35B	2.60B	2.59B	2.47B	2.01B
Stockholders Equity	3.20B	3.09B	2.48B	2.27B	2.11B	1.77B
Cash Flow
Free Cash Flow	73.97M	66.23M	41.35M	31.41M	64.05M	53.86M
Operating Cash Flow	156.47M	160.14M	139.73M	125.33M	140.86M	123.51M
Investing Cash Flow	-107.21M	-124.95M	-70.05M	-277.11M	-497.22M	-357.90M
Financing Cash Flow	-48.83M	-36.84M	-64.88M	154.38M	354.87M	224.40M

Killam Apartment REIT Un Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KMP.UN, the sentiment is Negative. The current price of 17.76 is below the 20-day moving average (MA) of 17.98, below the 50-day MA of 18.07, and above the 200-day MA of 17.47, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 17.31 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:KMP.UN.

Killam Apartment REIT Un Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMP.UN	76 Outperform	C$2.15B	3.80	19.03%	4.04%	5.82%	83.08%
BEI.UN	76 Outperform	3.65B	10.30	6.64%	2.24%	8.12%	-50.95%
MRG.UN	68 Neutral	953.07M	10.19	5.09%	4.15%	3.93%	-29.40%
MI.UN	68 Neutral	494.18M	7.11	5.67%	3.84%	-0.69%	―
CAR.UN	61 Neutral	6.38B	79.98	0.91%	3.78%	-2.56%	―
IIP.UN	58 Neutral	1.86B	-10.75	-8.02%	2.95%	1.56%	-9446.15%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Killam Apartment REIT Un Corporate Events

Killam Apartment REIT Announces August 2025 Distribution

Killam Apartment REIT has announced its August 2025 monthly distribution of $0.06 per unit, payable on September 15, 2025, to unitholders of record on August 29, 2025. The company offers a distribution reinvestment plan that allows eligible unitholders to reinvest their cash distributions in additional units, with a 3% bonus in units for those participating. This announcement reflects Killam’s ongoing commitment to providing value to its stakeholders and enhancing the profitability of its extensive real estate portfolio.

The most recent analyst rating on ($TSE:KMP.UN) stock is a Hold with a C$20.50 price target. To see the full list of analyst forecasts on Killam Apartment REIT Un stock, see the TSE:KMP.UN Stock Forecast page.

Killam Apartment REIT Reports Strong Q2-2025 Financial Performance

Killam Apartment REIT announced strong financial results for Q2-2025, highlighting a 6.0% increase in same property revenue and a 6.7% growth in net operating income compared to the previous year. The company continues to benefit from its capital recycling program, using proceeds from property sales to invest in newer, more efficient buildings, which has contributed to an 8.0% increase in adjusted funds from operations per unit. Additionally, Killam’s strategic acquisitions and developments, such as the 114-unit property in Fredericton and the sustainable Carrick development in Waterloo, underscore its commitment to growth and sustainability. The company’s improved debt metrics, with a debt-to-total assets ratio of 39.6%, further strengthen its financial position.

The most recent analyst rating on ($TSE:KMP.UN) stock is a Hold with a C$20.50 price target. To see the full list of analyst forecasts on Killam Apartment REIT Un stock, see the TSE:KMP.UN Stock Forecast page.