KCR Residential REIT PLC (KCR) AI Stock Analysis

• Market Cap: £3.48M
• Dividend Yield: N/A
• Average Volume (3M): 10.42K
• Price to Earnings (P/E): 10.6
• Beta (1Y): -0.05
• 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: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 50 Neutral
• Price Target: 8.50p ▲(1.80% Upside)

The score is held back primarily by weak cash flow (negative operating and free cash flow) and continued negative EBIT/EBITDA despite a return to positive net income. Technicals also remain bearish with the price below key moving averages and a negative MACD. Valuation is a partial offset with a modest P/E, and corporate updates point to operational improvements and cost actions, but execution risk remains.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for KCR's properties and effective management strategies, supporting long-term income potential.

High Gross Profit Margin

A high gross profit margin suggests efficient cost management and the ability to maintain profitability despite operational challenges.

Strategic Refinancing

The refinancing deal provides additional capital for ongoing activities, which can support strategic investments and operational stability.

Negative Factors

High Leverage

High leverage increases financial risk, limiting flexibility and potentially impacting the company's ability to invest in growth opportunities.

Negative Cash Flows

Negative cash flows indicate challenges in sustaining operations without external financing, posing risks to long-term financial health.

Increased Funding Costs

Higher funding costs reduce cash flow and profitability, potentially hindering the company's ability to invest in future growth.

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

KCR Residential REIT PLC is in a challenging financial position. Despite a positive revenue growth of 14%, the company has consistent operating losses and negative cash flows. High leverage with a debt-to-equity ratio of 1.13 further raises financial risk concerns.

Income Statement

The company shows a consistent increase in revenue over the years, with a notable growth rate of 14% from 2023 to 2024. However, profitability metrics are concerning. The EBIT and net income have been negative consistently, indicating operational challenges. The gross profit margin is relatively high at around 76%, but the negative net profit margin highlights significant financial inefficiencies or high operating costs.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 1.13, indicating potential financial risk. However, the equity ratio of 46% shows that equity finances a substantial portion of the company's assets. The return on equity is negative, reflecting ongoing losses and suggesting inefficiencies in generating returns for shareholders.

Cash Flow

The cash flow situation is challenging with negative operating and free cash flows, suggesting that the company is not generating sufficient cash from its core operations. The free cash flow to net income ratio is negative, indicating that the company's operations are not translating into positive cash flow, which is a significant concern for sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.89M	1.89M	1.80M	1.58M	1.28M	1.04M
Gross Profit	684.66K	1.39M	1.37M	1.26M	1.21M	995.17K
EBITDA	-95.61K	-95.61K	0.00	-392.50K	-151.15K	-905.83K
Net Income	327.64K	327.64K	-1.19M	-166.14K	-342.08K	-924.23K
Balance Sheet
Total Assets	27.31M	27.31M	26.71M	27.24M	27.37M	24.41M
Cash, Cash Equivalents and Short-Term Investments	174.31K	174.31K	931.60K	980.85K	2.52M	66.92K
Total Debt	14.14M	14.14M	13.90M	13.27M	13.27M	12.64M
Total Liabilities	14.66M	14.66M	14.39M	13.73M	13.69M	13.09M
Stockholders Equity	12.65M	12.65M	12.32M	13.51M	13.68M	11.32M
Cash Flow
Free Cash Flow	-791.17K	-778.92K	-700.31K	-1.14M	-876.12K	-1.32M
Operating Cash Flow	-791.17K	-778.92K	-659.42K	-928.71K	-823.10K	-1.32M
Investing Cash Flow	-210.00K	-210.00K	-19.58K	-609.79K	-58.01K	-168.67K
Financing Cash Flow	231.64K	231.64K	629.75K	0.00	3.33M	18.85K

KCR Residential REIT PLC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Negative. The current price of 8.35 is above the 20-day moving average (MA) of 8.35, below the 50-day MA of 8.43, and below the 200-day MA of 9.92, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 34.88 is Neutral, neither overbought nor oversold. The STOCH value of 34.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
PRSR	75 Outperform	£620.65M	8.06	10.16%	3.85%	13.95%	-17.77%
AEWU	71 Outperform	£170.73M	13.38	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	£269.92M	-6.09	-10.89%	8.16%	-4.24%	-273.62%
RESI	53 Neutral	£107.25M	―	―	6.96%	―	―
KCR	50 Neutral	£3.48M	10.57	2.62%	―	4.96%	―

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.

KCR Residential REIT PLC Reports 5% Revenue Growth Amidst Challenging Market Conditions

KCR Residential REIT PLC reported a 5% increase in revenue for the financial year ending June 2025, despite challenges such as higher interest rates and cost pressures. The company has been focusing on improving operational performance and controlling costs, which has helped reduce cash burn. The introduction of the Cristal Apartments operating model has led to volatility in occupancy but improved rental income. KCR aims to achieve a cash neutral position by optimizing asset performance, reducing costs, and exploring development opportunities. The company remains optimistic about future performance improvements and market conditions.