Killam Apartment REIT Un (TSE:KMP.UN)
TSX:KMP.UN
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Killam Apartment REIT Un
(TSX:KMP.UN)
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Rating:61Neutral
Price Target:
C$18.00
▲(9.42% Upside)
Action:DowngradedDate:02/18/26
The score is driven primarily by stable underlying operating performance but moderated by earnings volatility and meaningful leverage sensitivity. Technicals are currently weak (trading below major moving averages), and valuation is constrained by a very high P/E despite a solid dividend yield. The latest earnings call supports a constructive outlook for NOI/FFO and balance-sheet actions, but financing and leverage headwinds persist.
Positive Factors
Same-Property NOI Growth
A 6.1% same-property NOI rise reflects durable rental demand and operating leverage in the core portfolio. Sustained NOI growth supports FFO and cash available for distributions, funds capital recycling and paydowns, and underpins long-term yield generation independent of short-term price moves.
Negative Factors
High Absolute Debt Load
A large nominal debt balance (> $2.3B) and near‑10x debt/EBITDA leave the REIT sensitive to interest rates and valuation changes. High absolute leverage constrains capital allocation flexibility, raises refinancing needs over the medium term, and increases downside risk if operating momentum softens.
Read all positive and negative factors
Positive Factors
Negative Factors
Same-Property NOI Growth
A 6.1% same-property NOI rise reflects durable rental demand and operating leverage in the core portfolio. Sustained NOI growth supports FFO and cash available for distributions, funds capital recycling and paydowns, and underpins long-term yield generation independent of short-term price moves.
Read all positive factors
Killam Apartment REIT Un (KMP.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.01B
Dividend Yield4.42%
Average Volume (3M)272.56K
Price to Earnings (P/E)69.3
Beta (1Y)0.64
Revenue Growth6.19%
EPS Growth79.98%
CountryCA
Employees495
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)-1.21
Shares Outstanding122,307,816
10 Day Avg. Volume205,938
30 Day Avg. Volume272,559
Financial Highlights & Ratios
PEG Ratio-0.72
Price to Book (P/B)0.67
Price to Sales (P/S)5.32
P/FCF Ratio30.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$19.80Price Target Upside20.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.25
Revenue Forecast (FY)C$394.66M
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 enhan...
How the Company Makes Money
Killam Apartment REIT generates revenue primarily through rental income from its portfolio of residential properties. The company leases its apartment units to tenants, collecting monthly rents, which form the bulk of its income. Additionally, Kil...
Killam Apartment REIT Un Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presents a largely positive operational and strategic story: strong same-property NOI and revenue growth, solid FFO/AFFO gains, improving AFFO payout ratio, healthy commercial performance, active development pipeline contributing to near-term FFO, and steps to strengthen the debt profile and energy efficiency. Offsetting these strengths are a significant year-over-year net income decline driven by non‑cash fair value losses and the absence of a prior-year tax recovery, continued interest expense pressure (albeit easing), moderated rental growth vs 2024 peaks, and timing/cost delays on certain commercial repositionings. Overall the fundamentals and outlook are constructive while management addresses valuation and financing headwinds.Positive Updates
Strong Same-Property NOI Growth (2025)
Total same-property NOI increased 6.1% for the year, driven by same-property apartment revenue growth of 5.4%, MHC revenue growth of 7.8%, and same-property commercial revenue growth of 4.4%.
Negative Updates
Large Net Income Decline (Non‑cash Fair Value Impact)
Net income for 2025 was $29.4M, down $638M year-over-year, primarily driven by a $120.5M fair value loss on investment properties (versus $252M fair value gains in 2024) and the absence of a one-time $279M deferred tax recovery in 2024.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Same-Property NOI Growth (2025)
Total same-property NOI increased 6.1% for the year, driven by same-property apartment revenue growth of 5.4%, MHC revenue growth of 7.8%, and same-property commercial revenue growth of 4.4%.
Read all positive updates
Company Guidance
Killam guided to a constructive but modest 2026 outlook, targeting at least 3% revenue and NOI growth for the same‑property apartment portfolio (management said overall apartment revenue is likely close to 4%), driven by a roughly 9% portfolio‑wide mark‑to‑market spread (15% in Halifax, ~10% in Bridge Columbia) and positive leasing spreads; they expect renewals of ~3–3.5%, turn rent lifts of ~4–7%, incentives to moderate but add ~80–90 bps, and vacancy improvement in H2. On capital and financing, 2025 financing costs rose 5.9% YoY but interest expense pressure should begin to stabilize by 2027, debt was 41.9% of assets with debt‑to‑normalized EBITDA of 9.66x and 91% of apartment mortgage debt CMHC‑insured; development and disposals will contribute (The Carrick ≈ $800k incremental FFO in 2026; minimum $50m of asset dispositions targeted), and AFFO is expected to outpace FFO as capital is redeployed.Killam Apartment REIT Un Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
63
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 383.11M | 367.04M | 349.96M | 330.64M | 291.98M |
| Gross Profit | 252.50M | 242.87M | 225.85M | 208.71M | 184.29M |
| EBITDA | 114.88M | 223.51M | 206.22M | 193.79M | 166.44M |
| Net Income | 29.41M | 667.84M | 266.32M | 122.52M | 285.51M |
Balance Sheet | |||||
| Total Assets | 5.51B | 5.44B | 5.09B | 4.86B | 4.58B |
| Cash, Cash Equivalents and Short-Term Investments | 9.88M | 13.21M | 14.09M | 9.15M | 6.48M |
| Total Debt | 2.32B | 2.21B | 2.19B | 2.21B | 2.06B |
| Total Liabilities | 2.44B | 2.35B | 2.60B | 2.59B | 2.47B |
| Stockholders Equity | 3.06B | 3.09B | 2.48B | 2.27B | 2.11B |
Cash Flow | |||||
| Free Cash Flow | 66.33M | 66.23M | 41.35M | 31.41M | 64.05M |
| Operating Cash Flow | 145.94M | 160.14M | 139.73M | 125.33M | 140.86M |
| Investing Cash Flow | -145.67M | -124.95M | -70.05M | -277.11M | -497.22M |
| Financing Cash Flow | -3.61M | -36.84M | -64.88M | 154.38M | 354.87M |
Killam Apartment REIT Un Technical Analysis
Neutral
16.45
Price Trends
16.64
Negative
16.61
Negative
17.10
Negative
Market Momentum
-0.02
Negative
52.89
Neutral
76.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KMP.UN, the sentiment is Neutral. The current price of 16.45 is above the 20-day moving average (MA) of 16.15, below the 50-day MA of 16.64, and below the 200-day MA of 17.10, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 52.89 is Neutral, neither overbought nor oversold. The STOCH value of 76.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:KMP.UN.
Killam Apartment REIT Un Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$904.53M | 8.80 | 5.16% | 4.41% | 3.83% | 63.32% | |
66 Neutral | C$3.41B | 16.05 | 3.97% | 2.46% | 6.52% | -54.45% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | C$5.58B | 29.80 | 2.22% | 4.20% | -6.51% | -81.28% | |
61 Neutral | C$2.01B | 69.28 | 0.93% | 4.42% | 6.19% | 79.98% | |
60 Neutral | C$1.87B | 27.54 | 0.81% | 3.01% | 1.55% | -401.05% | |
57 Neutral | C$648.77M | -3.53 | 7.26% | 3.87% | -1.21% | ― |
* Real Estate Sector Average
TSE:KMP.UN
Killam Apartment REIT Un
16.45
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5.17%
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Killam Apartment REIT Un Corporate Events
Business Operations and StrategyDividends
Killam Apartment REIT Declares February 2026 Monthly Distribution and Maintains DRIP Incentive
Positive
Feb 17, 2026
Killam Apartment REIT has declared a monthly cash distribution of $0.06 per unit for February 2026, payable on March 16, 2026, to unitholders of record as of February 27, 2026. The REIT continues to offer a distribution reinvestment plan under whi...
Business Operations and StrategyFinancial Disclosures
Killam Apartment REIT Posts Strong 2025 Operating Gains Amid Capital Recycling Push
Positive
Feb 12, 2026
Killam Apartment REIT reported solid operating performance for 2025, with net operating income rising 6.0% to $254.8 million and same-property NOI up 6.1%, supported by 5.5% same-property revenue growth and a 4.8% increase in average rents. Funds ...
Business Operations and StrategyM&A Transactions
Killam Apartment REIT Buys 109-Unit Halifax Tower in $29.6 Million Deal
Positive
Jan 30, 2026
Killam Apartment REIT has expanded its Halifax presence with the $29.6 million acquisition of Forrest Green Apartments, a 13-storey, 109-unit building in the city’s Clayton Park neighbourhood. The 1973-built property consists entirely of lar...
Business Operations and StrategyM&A Transactions
Killam Apartment REIT Buys 109-Unit Halifax Tower to Bolster Core Market Growth
Positive
Jan 30, 2026
Killam Apartment REIT has acquired Forrest Green Apartments, a 13-storey, 109-suite residential building in Halifax’s Clayton Park neighbourhood, for $29.6 million, with a going-in capitalization rate of 5.0%. The 1973-built property consist...
Business Operations and StrategyDividends
Killam Apartment REIT Declares January 2026 Monthly Distribution and Maintains DRIP Incentive
Positive
Jan 16, 2026
Killam Apartment REIT has declared a monthly cash distribution of $0.06 per unit for January 2026, payable on February 17, 2026 to unitholders of record as of January 30, 2026. The REIT continues to offer a distribution reinvestment plan that allo...
Business Operations and StrategyFinancial Disclosures
Killam Apartment REIT Sets February Dates for 2025 Results and Investor Webcast
Neutral
Jan 6, 2026
Killam Apartment REIT has scheduled the release of its financial results for the year ended December 31, 2025, for February 11, 2026, after the close of trading on the Toronto Stock Exchange, followed by a webcast and conference call on February 1...
Business Operations and StrategyDividends
Killam Apartment REIT Announces December 2025 Distribution and Reinvestment Plan
Positive
Dec 15, 2025
Killam Apartment REIT has announced its December 2025 distribution of $0.06 per unit, payable on January 15, 2026, to unitholders of record as of December 31, 2025. The company offers a distribution reinvestment plan allowing eligible unitholders ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.