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): ―
• Beta (1Y): 0.17
• 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: 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 margins

Steady revenue growth with ~74% gross margins provides structural cushion for profitability: recurring rental income and high gross margins support long-term margin sustainability and reinvestment capacity if operating costs are controlled, underpinning durable cash generation potential.

Moderate leverage & balance-sheet predictability

A moderate debt-to-equity (~1.12) and steady debt levels reduce refinancing volatility common in real estate, giving predictable interest exposure and capacity to manage maturities. That balance-sheet stability supports long-term access to capital for portfolio maintenance and selective growth.

Return to positive net income

Net income turning positive indicates improving operational outcomes or asset revaluation gains and marks a structural inflection versus multi-year losses. If sustained, this supports retained earnings accumulation and reduces absolute dependence on external funding for corporate objectives.

Negative Factors

Consistently negative operating & free cash flow

Persistent negative operating and free cash flow signals the business is not self-funding from recurring operations, forcing reliance on financing or asset transactions to cover capex and distributions. Over months this raises refinancing and liquidity risk and constrains capital allocation flexibility.

Negative operating profitability (EBIT/EBITDA)

Negative EBIT/EBITDA shows core operations still lose money, implying positive net income may be driven by non-operational items. This structural weakness limits durable operating cash generation and exposes margins to stress if revenue growth slows or costs rise.

Weak historical returns on equity

Subpar historical ROE indicates the company has struggled to convert invested capital into shareholder returns, limiting retained earnings growth. Over months this constrains organic growth funding, pressures the need for external capital, and weakens long-term shareholder value creation.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	2.03M	1.89M	1.80M	1.58M	1.28M	1.04M
Gross Profit	764.81K	1.39M	1.37M	1.26M	1.21M	995.17K
EBITDA	-4.43K	-95.61K	0.00	-392.50K	-151.15K	-905.83K
Net Income	-482.23K	327.64K	-1.19M	-166.14K	-342.08K	-924.23K
Balance Sheet
Total Assets	27.50M	27.31M	26.71M	27.24M	27.37M	24.41M
Cash, Cash Equivalents and Short-Term Investments	427.50K	174.31K	931.60K	980.85K	2.52M	66.92K
Total Debt	14.56M	14.14M	13.90M	13.27M	13.27M	12.64M
Total Liabilities	15.23M	14.66M	14.39M	13.73M	13.69M	13.09M
Stockholders Equity	12.27M	12.65M	12.32M	13.51M	13.68M	11.32M
Cash Flow
Free Cash Flow	-702.04K	-778.92K	-700.31K	-1.14M	-876.12K	-1.32M
Operating Cash Flow	-702.04K	-778.92K	-659.42K	-928.71K	-823.10K	-1.32M
Investing Cash Flow	0.00	-210.00K	-19.58K	-609.79K	-58.01K	-168.67K
Financing Cash Flow	656.89K	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: 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 below the 20-day moving average (MA) of 10.00, below the 50-day MA of 10.11, and below the 200-day MA of 10.45, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 24.06 is Positive, neither overbought nor oversold. The STOCH value of 47.62 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
AEWU	71 Outperform	£164.70M	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	£265.20M	-24.26	-11.64%	8.16%	-4.24%	-273.62%
KCR	59 Neutral	£3.96M	-2.31	2.58%	―	4.96%	―
RESI	48 Neutral	£94.00M	-11.68	-6.64%	6.96%	―	―

KCR Residential REIT PLC Corporate Events

KCR Residential REIT Lifts Rental Income and Narrows Cash Burn Despite Cost Pressures

KCR Residential REIT reported a 15% rise in half-year revenue to £1.09 million, driven by higher occupancy and rental uplifts across its portfolio, particularly at Deanery Court, where average occupancy climbed to 86%. Portfolio-wide occupancy of available flats exceeded 97%, supporting positive operating cash flow of £218,000 and a 31% reduction in net cash used in operating activities, even as higher interest rates and inflation weighed on finance and operating costs.

The company is prioritising optimisation of its existing assets and tight cost control to reach a cash-neutral position, while keeping its longer-term strategy of improving rental income, upgrading portfolio quality, and exploring development opportunities intact. Management has completed the transition of Coleherne Road to longer minimum tenancies, commenced refurbishments at Heathside, and implemented cost-saving measures expected to lower administrative expenses and cost of sales over the rest of the financial year, although higher debt costs continue to constrain large-scale acquisitions.

The most recent analyst rating on (GB:KCR) stock is a Hold with a £10.00 price target. To see the full list of analyst forecasts on KCR Residential REIT PLC stock, see the GB:KCR Stock Forecast page.