KCR Residential REIT PLC (KCR) AI Stock Analysis

• Market Cap: £4.58M
• Dividend Yield: N/A
• Average Volume (3M): 11.96K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: 3.67%
• EPS Growth: -11000.00%
• Country: UK
• Employees: 7
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Residential
• EPS (TTM): -0.01
• Shares Outstanding: 41,669,632
• 10 Day Avg. Volume: 5,370
• 30 Day Avg. Volume: 11,961
• PEG Ratio: 0.45
• Price to Book (P/B): 0.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.47
• 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

• Rating: 35 Underperform
• Price Target: ―

KCR Residential REIT PLC faces significant financial challenges, with consistent losses and high leverage posing major risks. The stock exhibits a bearish technical outlook, compounded by negative valuation metrics. Recent corporate actions, while securing refinancing, further strain cash flow due to increased costs. These factors collectively result in a low stock score.

KCR Residential REIT PLC Business Overview & Revenue Model

Company Description

KCR Residential REIT PLC is a real estate investment trust that focuses on investing in residential property across the United Kingdom. The company specializes in acquiring and managing a diverse portfolio of residential assets, aiming to deliver long-term capital growth and income generation through strategic property management and investment.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.80M	1.58M	1.28M	1.04M	1.05M
Gross Profit	1.37M	1.26M	1.21M	995.17K	874.65K
EBITDA	0.00	-392.50K	-151.15K	-905.83K	-2.74M
Net Income	-1.19M	-166.14K	-342.08K	-924.23K	-3.56M
Balance Sheet
Total Assets	26.71M	27.24M	27.37M	24.41M	25.24M
Cash, Cash Equivalents and Short-Term Investments	931.60K	980.85K	2.52M	66.92K	1.54M
Total Debt	13.90M	13.27M	13.27M	12.64M	12.72M
Total Liabilities	14.39M	13.73M	13.69M	13.09M	13.10M
Stockholders Equity	12.32M	13.51M	13.68M	11.32M	12.14M
Cash Flow
Free Cash Flow	-700.31K	-1.14M	-876.12K	-1.32M	-2.04M
Operating Cash Flow	-659.42K	-928.71K	-823.10K	-1.32M	-2.04M
Investing Cash Flow	-19.58K	-609.79K	-58.01K	-168.67K	-1.73M
Financing Cash Flow	629.75K	0.00	3.33M	18.85K	5.27M

KCR Residential REIT PLC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:KCR, the sentiment is Positive. The current price of 12.1 is above the 20-day moving average (MA) of 11.46, above the 50-day MA of 9.39, and above the 200-day MA of 8.63, indicating a bullish trend. The MACD of 0.64 indicates Positive momentum. The RSI at 81.47 is Negative, neither overbought nor oversold. The STOCH value of 58.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
ESP	81 Outperform	£666.78M	17.61	4.48%	3.68%	4.60%	-35.59%
Sector *	65 Neutral	£989.01M	11.77	-0.08%	5.05%	10.32%	31.28%
GCP	63 Neutral		63.83	1.10%	9.54%	-8.69%	-35.71%
RESI	61 Neutral	£108.73M	―	-6.65%	7.01%	―	―
SOHO	56 Neutral	£279.75M	9.16	-8.69%	7.91%	-1.66%	-204.76%
TOWN	48 Neutral	£56.61M	―	-0.26%	1.38%	-0.20%	98.04%
KCR	35 Underperform	£4.58M	―	-3.56%	―	3.67%	-11000.00%

KCR Residential REIT PLC Corporate Events

KCR Residential REIT Secures New Refinancing Deal Amid Rising Costs

KCR Residential REIT PLC has successfully refinanced its Hodge Bank facilities by securing a new five-year, £7.85 million Sharia-compliant loan with Al Rayan Bank. This refinancing effort, while providing additional capital for ongoing activities, results in higher annual funding costs due to increased interest rates, posing continued cash constraints and challenges in achieving a cash-neutral position for the company.

Spark’s Take on GB:KCR Stock

According to Spark, TipRanks’ AI Analyst, GB:KCR is a Underperform.

KCR Residential REIT PLC is facing significant hurdles, primarily due to financial performance issues, including negative cash flows and high leverage. Technical analysis indicates a bearish trend, while valuation concerns persist with a negative P/E ratio. Despite a slight increase in rental income, overall risks outweigh positives, reflected in the stock’s low score.

To see Spark’s full report on GB:KCR stock, click here.

KCR Residential REIT Plc Reports Interim Results Amidst Challenging Economic Conditions

KCR Residential REIT Plc reported its interim results for the six months ending December 2024, highlighting a slight increase in core rental income despite a reduction in transactional income within its retirement business. The company faces challenges from high interest rates and inflationary pressures, impacting its ability to achieve cost reductions and maintain a cash-neutral position. Efforts to improve operational performance and manage lease expiries continue, with a focus on enhancing occupancy and rental revenue. The expiration of Hodge Bank facilities and subsequent refinancing at higher rates are expected to increase finance costs by £200k annually, further constraining cash flow.