Keystone Reit (KSTN) AI Stock Analysis

• Market Cap: 1.83B
• Dividend Yield: 4.42%
• Average Volume (3M): 128.96K
• Price to Earnings (P/E): 4.9
• Beta (1Y): 0.66
• Revenue Growth: -8.03%
• EPS Growth: 135.97%
• Country: IL
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Specialty
• EPS (TTM): N/A
• Shares Outstanding: 187,747,040
• 10 Day Avg. Volume: 146,942
• 30 Day Avg. Volume: 128,964
• PEG Ratio: -0.09
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 3.92
• P/FCF Ratio: 6.52
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 1,050.00 ▲(7.68% Upside)

Keystone Reit's stock is supported by strong technical indicators and attractive valuation metrics, making it appealing for investors seeking value and income. However, financial performance concerns, particularly in revenue stability and rising debt levels, present risks that need to be monitored.

Positive Factors

Operational Efficiency

Strong EBIT and EBITDA margins indicate effective cost management and operational efficiency, which can sustain profitability over time.

Asset Quality

A stable equity position and manageable leverage suggest a strong asset base, supporting long-term financial health and investment capacity.

Cash Flow Generation

Consistent free cash flow generation provides financial flexibility for reinvestment, debt reduction, and shareholder returns, enhancing long-term stability.

Negative Factors

Revenue Stability

Volatile revenue patterns can undermine financial predictability and planning, posing risks to sustained growth and operational planning.

Rising Debt Levels

Rising debt levels can strain financial resources, limiting strategic flexibility and increasing vulnerability to interest rate changes.

Cost Management Issues

Negative gross profit margins suggest challenges in managing costs, which can erode profitability and competitiveness if not addressed.

Keystone Reit Business Overview & Revenue Model

Company Description

Keystone Reit (KSTN) is a real estate investment trust focused on acquiring, owning, and managing a diversified portfolio of commercial properties, primarily in the retail and industrial sectors. The company aims to generate sustainable income and long-term capital appreciation for its shareholders by leveraging strategic locations and optimizing property operations. Keystone Reit is committed to enhancing tenant experiences and maximizing property value through proactive management and investment strategies.

How the Company Makes Money

Keystone Reit generates revenue primarily through leasing space in its commercial properties to tenants, which includes retail stores, warehouses, and distribution centers. The company earns rental income from long-term leases, often structured with escalations to ensure revenue growth over time. Additionally, Keystone Reit may receive income from ancillary services related to property management and tenant improvements. Key revenue streams include base rent, percentage rent from tenants' sales, and income from property sales or refinancing. Strategic partnerships with local businesses and property management firms also contribute to its earnings by enhancing tenant retention and operational efficiency.

Keystone Reit Financial Statement Overview

Summary

Keystone Reit demonstrates operational efficiency with strong EBIT and EBITDA margins but faces challenges in revenue stability and cost management. The balance sheet is solid with a healthy equity position, though rising debt levels warrant attention. Cash flow generation is positive, but variability in cash conversion and growth rates suggests areas for improvement.

Income Statement

Keystone Reit shows a volatile revenue pattern with significant fluctuations in total revenue over the years. The TTM data indicates a sharp decline in revenue, which is concerning. Despite this, the company maintains a strong EBIT and EBITDA margin, suggesting operational efficiency. However, the negative gross profit margin highlights potential cost management issues.

Balance Sheet

The balance sheet reflects a stable equity position with a moderate debt-to-equity ratio, indicating manageable leverage. The equity ratio is healthy, showing a strong asset base relative to liabilities. However, the increasing total debt over the years could pose a risk if not managed properly.

Cash Flow

Cash flow analysis reveals consistent free cash flow generation, which is positive. However, the operating cash flow to net income ratio has shown variability, indicating potential challenges in converting income into cash. The free cash flow growth rate has been inconsistent, reflecting fluctuations in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.18M	282.19M	863.00K	873.00K	826.00K	572.00K
Gross Profit	-94.00K	282.19M	-30.20M	-14.90M	-4.45M	153.00K
EBITDA	452.82M	232.54M	601.07M	158.16M	85.14M	-2.32M
Net Income	372.99M	193.36M	443.88M	94.74M	62.50M	8.02M
Balance Sheet
Total Assets	4.04B	3.49B	3.13B	2.72B	1.51B	509.90M
Cash, Cash Equivalents and Short-Term Investments	168.99M	378.89M	80.90M	140.12M	536.75M	19.46M
Total Debt	1.48B	1.13B	1.05B	1.17B	458.90M	130.00M
Total Liabilities	1.72B	1.35B	1.27B	1.25B	494.48M	135.75M
Stockholders Equity	2.32B	2.15B	1.86B	1.47B	1.01B	374.15M
Cash Flow
Free Cash Flow	127.27M	169.63M	210.05M	127.83M	37.70M	-5.10M
Operating Cash Flow	127.27M	169.63M	210.05M	127.83M	37.73M	-5.10M
Investing Cash Flow	-585.52M	-23.31M	-80.88M	-1.57B	-367.11M	-461.80M
Financing Cash Flow	499.62M	151.66M	-188.39M	1.04B	846.66M	486.36M

Keystone Reit Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 975.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IL:KSTN, the sentiment is Positive. The current price of 975.1 is above the 20-day moving average (MA) of 956.72, above the 50-day MA of 946.83, and above the 200-day MA of 788.04, indicating a bullish trend. The MACD of 8.10 indicates Negative momentum. The RSI at 65.78 is Neutral, neither overbought nor oversold. The STOCH value of 67.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IL:KSTN.

Keystone Reit Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MNRT	80 Outperform	1.91B	11.56	―	5.43%	―	―
KSTN	67 Neutral	1.83B	4.88	―	4.42%	-8.03%	135.97%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ROTS	63 Neutral	1.58B	10.72	―	1.55%	1.43%	238.96%
ILDC	57 Neutral	1.53B	42.91	―	4.24%	-5.51%	35.48%

Keystone Reit Corporate Events

Keystone Infra Ltd. Announces Lawsuit Dismissal

Keystone Infra Ltd. announced the dismissal of a lawsuit and a request for its approval as a derivative lawsuit, following a delay due to regulatory compliance. This development could have implications for the company’s legal and operational aspects, potentially affecting its market positioning and stakeholder relations.

Keystone Reit Extends Bond Series B, Enhancing Capital Structure

Keystone Reit Ltd announced an extension of its bond series, specifically Series B, increasing the total amount from 300 million to 450 million. This change signifies a strategic move in the company’s capital structure, potentially impacting its market positioning and providing more flexibility in its financial operations.