KCR Residential REIT PLC (KCR) AI Stock Analysis

• Market Cap: £3.96M
• Dividend Yield: N/A
• Average Volume (3M): 10.42K
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.18
• Revenue Growth: 4.96%
• EPS Growth: N/A
• Country: UK
• Employees: 7
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): N/A
• 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: 10.00 p ▲(19.76% 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

Revenue Growth & High Gross Margin

Steady revenue growth combined with very strong gross margins provides a durable earnings base and structural buffer versus cost inflation. High gross margins suggest attractive unit economics or low direct operating costs, supporting the pathway to sustained operating leverage as scale improves.

Moderate, Stable Leverage

Balance sheet shows moderate leverage and steady debt levels, which increases financial predictability for a residential REIT. Predictable debt servicing and limited leverage volatility support access to refinancing and reduce structural liquidity strain during normal market cycles.

Return to Net Profitability

Recovering to positive net income marks a structural improvement in overall profitability and enhances credibility with lenders and investors. Sustained net profitability can improve funding options and retainable earnings, aiding reinvestment or deleveraging if converted into recurring cash flow.

Negative Factors

Persistent Negative Cash Flow

Consistent negative operating and free cash flow indicates the business is not self-funding and relies on external financing or asset transactions. Over the medium term this increases liquidity and refinancing risk and constrains reinvestment, dividend capacity, and the ability to absorb shocks.

Weak Operating Profitability

Negative EBIT/EBITDA show the core operations are not yet consistently profitable; net income likely reflects non-operating or one-off items. Until operating profitability is achieved, earnings quality is weak and sustained value creation from operations is uncertain.

Low Returns on Equity

Persistently low or negative ROE implies the capital base has not generated meaningful shareholder returns. For a REIT, this reduces the scope to raise equity, undermines reinvestment returns, and signals structural challenges in translating assets into profitable, value-accretive income.

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

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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: Negative
• Last Price: 8.35
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 below the 20-day moving average (MA) of 10.28, below the 50-day MA of 10.01, and below the 200-day MA of 10.47, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 24.06 is Positive, neither overbought nor oversold. The STOCH value of 18.89 is Positive, 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
AEWU	71 Outperform	£166.93M	9.16	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	£281.72M	-24.26	-11.64%	8.16%	-4.24%	-273.62%
KCR	59 Neutral	£3.96M	14.63	2.58%	―	4.96%	―
RESI	48 Neutral	£96.96M	-9.88	-6.64%	6.96%	―	―