KCR Residential REIT PLC (KCR) AI Stock Analysis

• Market Cap: £4.27M
• Dividend Yield: N/A
• Average Volume (3M): 10.42K
• Price to Earnings (P/E): 13.0
• Beta (1Y): -0.15
• Revenue Growth: 4.96%
• EPS Growth: N/A
• Country: UK
• Employees: 7
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): >-0.01
• Shares Outstanding: 41,669,632
• 10 Day Avg. Volume: 16,844
• 30 Day Avg. Volume: 10,418
• PEG Ratio: -0.11
• Price to Book (P/B): 0.38
• Price to Sales (P/S): 2.54
• P/FCF Ratio: -6.15
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: 11.50p ▲(37.72% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is held back primarily by weak financial quality—ongoing negative operating and free cash flow and negative EBIT/EBITDA despite a return to positive net income. Technicals are a key positive with a strong uptrend, though overbought signals add pullback risk. Valuation appears reasonable on P/E, but lacks dividend-yield support in the provided data.

Positive Factors

Steady revenue growth & high gross margins

Revenue growth has been steady and gross margins remain very high (~74% in 2025), supporting durable unit economics in the residential portfolio. Strong margins provide structural cushion versus cost shocks and underpin the business’s ability to invest in operations and retain cash as leasing normalizes.

Reasonable balance sheet leverage

Moderate leverage and a predictable debt profile give the REIT financial stability relative to peers. Steady debt levels reduce refinancing volatility risk and support capacity to pursue asset-level fixes or selective financing, helping to manage downside in a structurally cyclical residential market.

Management actions to reduce cash burn

Explicit cost-control initiatives and a stated objective to reach cash-neutral operations improve the odds of structural cash flow repair. If executed, these measures can sustainably lower operating burn, reduce external financing needs and improve the resilience of the business model over the medium term.

Negative Factors

Persistent negative operating cash flow

Negative operating and free cash flow across multiple years signals the company does not self-fund core operations. This creates ongoing reliance on financing, asset sales, or equity infusions, raising execution and liquidity risk and weakening the sustainability of reported accounting profits.

Operating profitability still negative

Negative EBIT/EBITDA indicate core operations are not yet consistently profitable and that net income improvements may reflect one-offs, financing or accounting items. Without durable operating profitability, long-term margin recovery and free cash generation remain uncertain.

Weak returns on equity historically

Persistently weak ROE suggests the asset base has struggled to generate acceptable shareholder returns. Low historical returns limit reinvestment returns and increase sensitivity to capital allocation mistakes, constraining the company’s ability to compound value over time.

KCR Residential REIT PLC Business Overview & Revenue Model

Company Description

K&C REIT PLC is a publicly owned real estate investment trust. It invests in the real estate markets of Central London. The firm invests mainly in residential properties. K&C REIT PLC is based in United Kingdom.

How the Company Makes Money

KCR Residential REIT PLC generates revenue primarily through rental income derived from its portfolio of residential properties. The company invests in and manages various residential properties, which are rented out to tenants, providing a steady stream of rental income. Additionally, KCR may engage in property appreciation, where it benefits from the increase in value of its properties over time. This appreciation can be realized through the strategic sale of properties at a higher price than the purchase cost. The company's earnings are also influenced by factors such as occupancy rates, rental yields, and cost management. While specific partnerships are not detailed, the company may collaborate with property management firms, real estate agents, and financial institutions to optimize its operations and revenue.

KCR Residential REIT PLC Financial Statement Overview

Summary

Revenue growth and very strong gross margins support improving fundamentals, and net income turned positive in 2025. Offsetting this, EBIT/EBITDA remain negative and operating/free cash flow are persistently negative, creating earnings-quality and self-funding risk.

Income Statement

Revenue has grown steadily over the last several years (2025 annual: ~4.7% growth), and gross margins remain very strong (~74% in 2025). Profitability has improved meaningfully versus prior years, with net income turning positive in 2025 after losses in 2021–2024. However, operating profitability is still a key weakness: EBIT and EBITDA remain negative in 2025, indicating the core cost structure is not yet consistently profitable despite the return to positive net income.

Balance Sheet

The balance sheet looks reasonably stable with equity of ~£12.7m against total assets of ~£27.3m in 2025, and leverage is moderate for a residential REIT (debt-to-equity around ~1.12). Debt levels have been fairly steady over time, which supports balance sheet predictability. The main concern is that returns on equity have been weak/negative in most years (only ~2.6% positive in 2025), suggesting the capital base has not been producing strong, consistent shareholder returns.

Cash Flow

Cash generation is the biggest pressure point: operating cash flow and free cash flow are negative across all presented years, including 2025 (operating cash flow about -£0.78m; free cash flow about -£0.78m). While free cash flow shows improvement in 2025 versus 2024 (positive growth rate), the business is still not self-funding from operations. The 2025 shift to positive net income without positive operating cash flow also raises earnings quality risk and indicates ongoing reliance on financing/asset actions to fund cash needs.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.89M	1.80M	1.58M	1.28M	1.04M
Gross Profit	1.39M	1.37M	1.26M	1.21M	995.17K
EBITDA	-95.61K	0.00	-392.50K	-151.15K	-905.83K
Net Income	327.64K	-1.19M	-166.14K	-342.08K	-924.23K
Balance Sheet
Total Assets	27.31M	26.71M	27.24M	27.37M	24.41M
Cash, Cash Equivalents and Short-Term Investments	174.31K	931.60K	980.85K	2.52M	66.92K
Total Debt	14.14M	13.90M	13.27M	13.27M	12.64M
Total Liabilities	14.66M	14.39M	13.73M	13.69M	13.09M
Stockholders Equity	12.65M	12.32M	13.51M	13.68M	11.32M
Cash Flow
Free Cash Flow	-778.92K	-700.31K	-1.14M	-876.12K	-1.32M
Operating Cash Flow	-778.92K	-659.42K	-928.71K	-823.10K	-1.32M
Investing Cash Flow	-210.00K	-19.58K	-609.79K	-58.01K	-168.67K
Financing Cash Flow	231.64K	629.75K	0.00	3.33M	18.85K

KCR Residential REIT PLC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KCR, the sentiment is Neutral. The current price of 8.35 is below the 20-day moving average (MA) of 10.80, below the 50-day MA of 9.74, and below the 200-day MA of 10.37, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 40.88 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:KCR.

KCR Residential REIT PLC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AEWU	71 Outperform	£169.15M	13.26	7.37%	7.43%	-10.95%	-30.09%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
SOHO	61 Neutral	£290.77M	-6.54	-10.89%	8.16%	-4.24%	-273.62%
KCR	59 Neutral	£4.27M	12.99	2.62%	―	4.96%	―
RESI	48 Neutral	£100.22M	-11.01	―	6.96%	―	―

KCR Residential REIT PLC Corporate Events

KCR Residential REIT PLC AGM Results: Key Resolutions Passed

At the recent annual general meeting, KCR Residential REIT PLC announced that only Resolutions 1 and 2 were passed, which included receiving the annual report and reappointing Grant Thornton Limited as auditors. Resolution 3, which would have authorized the directors to allot ordinary shares, was not passed, rendering Resolution 4 ineffective despite its approval. This outcome reflects a significant decision-making moment for the company, potentially impacting its future capital-raising strategies and operational plans.

KCR Residential REIT PLC Announces AGM Details

KCR Residential REIT PLC has announced the distribution of notices for its upcoming annual general meeting (AGM) scheduled for December 4, 2025. This meeting will be held at Blake Morgan’s offices in London, and the company has made the notice and proxy forms available on its website, indicating its commitment to transparency and shareholder engagement.