Keystone Reit (KSTN) AI Stock Analysis

• Market Cap: 2.29B
• Dividend Yield: 4.46%
• Average Volume (3M): 128.96K
• Price to Earnings (P/E): 4.0
• Beta (1Y): 0.68
• 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: 189,941,940
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: 1,265.00 ▲(27.65% Upside)

The score is supported by very attractive valuation (low P/E and solid dividend yield) and a strong technical uptrend, but is held back by volatile profitability and weaker, declining free cash flow that reduces confidence in earnings quality and distributable cash stability.

Positive Factors

Diversified retail and industrial portfolio

A diversified mix of retail and industrial assets supports revenue stability across economic cycles. Industrial exposures benefit from structural logistics demand, while retail assets in strategic locations aid tenant retention, reducing single-sector concentration risk for long-term cash flows.

Recurring lease income with contractual escalations

Long-term leases with contractual escalations create predictable, durable rental income that supports distributable cash. This model helps revenue compound over time, smoothing short-term volatility and enabling multi-period planning for capex and tenant services, important for REIT stability.

Moderate leverage and historically rising equity

Debt-to-equity ~0.65 is moderate for a REIT and coupled with multi-year equity growth indicates a measured capital strategy. Strong trailing ROE suggests efficient asset deployment and potential to generate returns above financing costs, supporting long-term value creation if maintained.

Negative Factors

Volatile profitability and margins

Large, erratic margin swings imply earnings are influenced by non-recurring items or accounting timing rather than stable rental operations. This undermines predictability of distributable earnings and complicates forecasting of dividends and reinvestment capacity over the medium term.

Declining free cash flow and weak cash conversion

Falling FCF and inconsistent cash conversion reduce the reliability of cash available for distributions, debt servicing, and capex. For a cash-distribution business like a REIT, sustained FCF weakness raises risk to dividend sustainability and limits funding flexibility for growth.

Rising debt increases refinancing sensitivity

An upward trend in total debt heightens exposure to interest rate cycles and refinancing windows. If rates rise or credit markets tighten, refinancing costs and cash interest burden could grow, constraining free cash flow and elevating long-term liquidity risk for operations and distributions.

Keystone Reit Business Overview & Revenue Model

Company Description

Keystone REIT Ltd. operates in the asset management and custody banks industry. The company was incorporated in 2022 and is based in Israel.

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	136.46M	282.19M	863.00K	873.00K	826.00K	572.00K
Gross Profit	6.60M	282.19M	-30.20M	-14.90M	-4.45M	153.00K
EBITDA	712.84M	232.54M	601.07M	158.16M	85.14M	-2.32M
Net Income	563.67M	193.36M	443.88M	94.74M	62.50M	8.02M
Balance Sheet
Total Assets	4.37B	3.49B	3.13B	2.72B	1.51B	509.90M
Cash, Cash Equivalents and Short-Term Investments	220.76M	378.89M	80.90M	140.12M	536.75M	19.46M
Total Debt	1.61B	1.13B	1.05B	1.17B	458.90M	130.00M
Total Liabilities	1.91B	1.35B	1.27B	1.25B	494.48M	135.75M
Stockholders Equity	2.46B	2.15B	1.86B	1.47B	1.01B	374.15M
Cash Flow
Free Cash Flow	109.80M	169.63M	210.05M	127.83M	37.70M	-5.10M
Operating Cash Flow	109.80M	169.63M	210.05M	127.83M	37.73M	-5.10M
Investing Cash Flow	-614.30M	-23.31M	-80.88M	-1.57B	-367.11M	-461.80M
Financing Cash Flow	621.66M	151.66M	-188.39M	1.04B	846.66M	486.36M

Keystone Reit Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 991.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 991 is below the 20-day moving average (MA) of 1038.72, below the 50-day MA of 993.43, and above the 200-day MA of 835.53, indicating a bullish trend. The MACD of 55.49 indicates Negative momentum. The RSI at 80.51 is Negative, neither overbought nor oversold. The STOCH value of 95.75 is Negative, 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	82 Outperform	2.10B	10.60	―	5.49%	―	―
KSTN	70 Outperform	2.29B	4.00	―	4.46%	-8.03%	135.97%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
ILDC	64 Neutral	1.66B	12.58	―	3.87%	-5.51%	35.48%
ROTS	64 Neutral	1.54B	6.15	―	3.51%	1.43%	238.96%