Killam Apartment REIT Un (KMP.UN) AI Stock Analysis

• Market Cap: C$1.92B
• Dividend Yield: 4.42%
• Average Volume (3M): 423.75K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.83
• Revenue Growth: 5.04%
• EPS Growth: 151.14%
• Country: CA
• Employees: 495
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Residential
• EPS (TTM): 5.52
• Shares Outstanding: 120,008,100
• 10 Day Avg. Volume: 401,575
• 30 Day Avg. Volume: 423,748
• PEG Ratio: 0.02
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.77
• Price to Cash Flow (P/CF): 8.70
• P/FCF Ratio: 17.70
• 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: C$20.75
• Price Target Upside: 28.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

Killam Apartment REIT exhibits a strong financial profile with steady growth in revenue and profits, supported by solid fundamentals and attractive valuation. Technical indicators suggest upward momentum, although caution is advised due to potential overbought conditions. Positive earnings call sentiment further supports the stock's outlook, despite some operational challenges.

Positive Factors

Earnings Growth

KMP is well-positioned to deliver 5-6% annual earnings growth in 2025 and 2026.

Leasing Performance

Killam continues to capture robust leasing spreads on turnover, with a gap between in-place and market rent remaining wide at 15%.

Valuation

Killam's well-located and high-quality portfolio is seen as attractive value, with the units trading at a 17.3% discount to the NAV estimate.

Negative Factors

Interest Expense

Much of the benefit of raising rental rates to market has been offset by greater interest expense from refinancing debt at higher rates.

Turnover Rates

A slower pace of turnover has limited organic growth as Killam largely operates in rent-controlled markets.

Utility and Fuel Expenses

Utility and fuel expense growth will likely accelerate due to colder weather and higher natural gas pricing in Ontario.

Killam Apartment REIT Un Business Overview & Revenue Model

Company Description

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating, managing and developing a $3.6 billion portfolio of apartments and manufactured home communities. Killam's strategy to enhance value and profitability focuses on three priorities: 1) increasing earnings from existing operations, 2) expanding the portfolio and diversifying geographically through accretive acquisitions, with an emphasis on newer properties, and 3) developing high-quality properties in its core markets.

How the Company Makes Money

Killam Apartment REIT generates revenue primarily through the leasing of residential properties. The company's key revenue streams include rental income from its portfolio of apartment buildings and manufactured home communities. This rental income is supplemented by ancillary services provided to tenants, such as parking and laundry facilities. Additionally, Killam may enhance its earnings through strategic acquisitions and property development, which can lead to increased rental income and property value appreciation. The company also focuses on maintaining high occupancy rates and tenant satisfaction to ensure stable cash flow. Partnerships with local developers and municipalities can also play a role in expanding Killam's property portfolio, further contributing to its revenue growth.

Killam Apartment REIT Un Financial Statement Overview

Summary

Killam Apartment REIT displays a strong financial profile with consistent revenue growth, a solid balance sheet, and adequate cash flow. While leverage has increased, the overall financial performance remains robust, making it well-positioned within the REIT sector.

Income Statement

The company has shown consistent revenue growth over the years, with a notable increase in net income in 2024. Gross profit margins remain strong, although EBIT margin is not available for 2024 which affects overall profitability assessment. The EBITDA margin is robust, indicating efficient operations.

Balance Sheet

The balance sheet indicates a stable equity position with an increasing stockholders' equity over the years. The debt-to-equity ratio has slightly increased, indicating a higher leverage, which could pose risk if not managed properly. The equity ratio reflects a healthy capital structure.

Cash Flow

The company has demonstrated growth in free cash flow alongside stable operating cash flow. The free cash flow to net income ratio is satisfactory, supporting dividend sustainability. However, the operating cash flow to net income ratio suggests a need for improved operational efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
364.65M	349.96M	328.85M	290.92M	261.69M
	Gross Profit
240.48M	225.85M	206.91M	183.24M	164.66M
	EBIT
0.00	206.22M	206.91M	135.79M	154.45M
	EBITDA
465.50M	206.22M	193.79M	136.36M	155.17M
	Net Income Common Stockholders
667.84M	266.32M	122.52M	285.51M	146.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.21M	14.09M	9.15M	435.00K	2.56M
	Total Assets
5.44B	5.09B	4.86B	4.58B	3.78B
	Total Debt
2.21B	2.19B	2.21B	2.06B	1.69B
	Net Debt
2.19B	2.17B	2.20B	2.06B	1.69B
	Total Liabilities
2.35B	2.60B	2.59B	2.47B	2.01B
	Stockholders Equity
3.09B	2.48B	2.27B	2.11B	1.77B
Cash Flow		Free Cash Flow
66.23M	41.35M	31.41M	64.05M	53.86M
	Operating Cash Flow
160.14M	139.73M	125.33M	140.86M	123.51M
	Investing Cash Flow
-124.17M	-69.92M	-277.05M	-497.85M	-358.15M
	Financing Cash Flow
-36.84M	-64.88M	154.38M	354.87M	224.40M

Killam Apartment REIT Un Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KMP.UN, the sentiment is Negative. The current price of 16.09 is below the 20-day moving average (MA) of 17.02, below the 50-day MA of 16.66, and below the 200-day MA of 17.86, indicating a bearish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 61.05 is Neutral, neither overbought nor oversold. The STOCH value of 42.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:KMP.UN.

Killam Apartment REIT Un Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRG.UN	75 Outperform	C$851.80M	8.51	5.29%	4.69%	3.79%	-40.78%
KMP.UN	72 Outperform	C$1.92B	2.95	23.97%	4.42%	5.04%	151.14%
CAR.UN	72 Outperform	C$6.35B	22.59	3.20%	3.80%	4.45%	―
IIP.UN	70 Outperform	C$1.47B	―	-6.27%	3.88%	3.85%	-266.02%
HR.UN	63 Neutral	C$2.43B	―	-2.29%	6.49%	-6.92%	-296.31%
Sector *	61 Neutral	$4.21B	15.62	-3.65%	12.27%	6.29%	-21.37%

Killam Apartment REIT Un Corporate Events

Killam Apartment REIT to Announce Q1 2025 Financial Results

Killam Apartment REIT announced it will release its Q1 2025 financial results on May 7, 2025, after the Toronto Stock Exchange closes. A webcast and conference call to discuss these results and current business initiatives will follow on May 8, 2025. This announcement is part of Killam’s ongoing efforts to enhance transparency and engage with stakeholders, reflecting its strategic focus on growth and profitability.

Killam Apartment REIT Announces March 2025 Distribution

Killam Apartment REIT announced a monthly distribution of $0.06 per unit for March 2025, payable on April 15, 2025, to unitholders of record by March 31, 2025. The company offers a distribution reinvestment plan allowing eligible unitholders to reinvest their distributions into additional units, with a 3% bonus in units for reinvested amounts. This announcement reflects Killam’s ongoing commitment to providing value to its investors and enhancing its market position through strategic financial offerings.

Killam Apartment REIT Declares February 2025 Distribution

Killam Apartment REIT has announced a monthly distribution of $0.06 per unit for February 2025, payable on March 17, 2025, to unitholders of record on February 28, 2025. The REIT also offers a distribution reinvestment plan, allowing eligible unitholders to reinvest their cash distributions in additional units with an additional 3% distribution in units. This announcement underscores Killam’s commitment to providing value to its stakeholders and enhancing its financial strategies.

Killam Apartment REIT Reports Robust 2024 Financial Performance and Strategic Developments

Killam Apartment REIT reported strong financial performance for Q4 2024 and the full year, highlighted by an 8.4% growth in same property net operating income and a 2.6% increase in funds from operations per unit. The company completed a strategic internal reorganization to enhance cash flow and minimize tax exposure, and it plans to continue capital recycling by increasing non-core asset sales to strengthen its balance sheet and fund future developments.

Killam Apartment REIT Announces January 2025 Distribution and DRIP Benefits

Killam Apartment REIT has announced a monthly distribution of $0.06 per unit for January 2025, payable on February 18, 2025, to unitholders recorded by January 31, 2025. The company also offers a distribution reinvestment plan (DRIP) that allows eligible unitholders to reinvest cash distributions into additional units, with an added 3% distribution of units, reinforcing its commitment to expanding shareholder value. This announcement underscores Killam’s ongoing strategy to augment shareholder returns and maintain its strong position within the residential real estate sector.