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

• Market Cap: C$1.98B
• Dividend Yield: 4.36%
• Average Volume (3M): 272.56K
• Price to Earnings (P/E): 3.6
• Beta (1Y): 0.66
• Revenue Growth: 6.19%
• EPS Growth: 79.98%
• Country: CA
• Employees: 495
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.34
• Shares Outstanding: 121,365,270
• 10 Day Avg. Volume: 205,938
• 30 Day Avg. Volume: 272,559
• PEG Ratio: 0.02
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 5.73
• P/FCF Ratio: 31.73
• 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$21.33
• Price Target Upside: 29.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$18.00 ▲(9.09% Upside)

Killam Apartment REIT Un's strong financial performance and attractive valuation are offset by technical weaknesses and challenges highlighted in the earnings call. The stock appears undervalued, but caution is advised due to bearish technical indicators and operational challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for rental properties and effective management, supporting long-term financial stability.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility and supports future investments and debt management.

Sustainability Initiatives

Investing in sustainability projects reduces costs and aligns with environmental trends, potentially attracting eco-conscious tenants.

Negative Factors

Decline in Net Income

A decline in net income can signal underlying operational challenges, impacting profitability and investor confidence.

Increased Operating Expenses

Rising operating expenses, particularly taxes, can pressure margins and reduce overall profitability, affecting long-term growth.

Higher Interest Expenses

Increased interest expenses reduce net income and cash flow, potentially limiting future investment capacity and financial flexibility.

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 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, Killam benefits from property management fees and ancillary services related to its properties, such as parking and storage rentals. The REIT also engages in strategic acquisitions and developments, enhancing its portfolio and potentially increasing revenue. Strong occupancy rates, effective management, and market demand for rental housing are key factors that contribute to its earnings, while partnerships with local developers and community organizations may also play a role in expanding its market presence.

Killam Apartment REIT Un Financial Statement Overview

Summary

Killam Apartment REIT Un demonstrates strong profitability with high margins and consistent revenue growth. The balance sheet is healthy with manageable leverage, and cash flow analysis shows positive trends, although there is room for improvement in cash conversion efficiency.

Income Statement

Killam Apartment REIT Un demonstrates strong profitability with a high gross profit margin of 66.36% and a robust net profit margin of 149.32% in the TTM. The company has shown consistent revenue growth, albeit at a slower rate recently. EBIT and EBITDA margins are also strong, indicating efficient operations.

Balance Sheet

The balance sheet reflects a healthy financial position with a moderate debt-to-equity ratio of 0.69, suggesting manageable leverage. Return on equity is solid at 18.38%, indicating effective use of equity capital. The equity ratio is stable, reflecting a balanced asset structure.

Cash Flow

Cash flow analysis shows positive trends with a significant free cash flow growth rate of 228.4% in the TTM. The operating cash flow to net income ratio is moderate, suggesting room for improvement in cash conversion efficiency. The free cash flow to net income ratio is healthy, indicating good cash generation relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	381.31M	367.04M	349.96M	330.64M	291.98M	262.33M
Gross Profit	253.29M	242.87M	225.85M	208.71M	184.29M	164.50M
EBITDA	238.71M	223.51M	206.22M	193.79M	166.44M	150.62M
Net Income	540.33M	667.84M	266.32M	122.52M	285.51M	146.02M
Balance Sheet
Total Assets	5.65B	5.44B	5.09B	4.86B	4.58B	3.78B
Cash, Cash Equivalents and Short-Term Investments	9.94M	13.21M	14.09M	9.15M	6.48M	2.56M
Total Debt	2.30B	2.21B	2.19B	2.21B	2.06B	1.69B
Total Liabilities	2.42B	2.35B	2.60B	2.59B	2.47B	2.01B
Stockholders Equity	3.23B	3.09B	2.48B	2.27B	2.11B	1.77B
Cash Flow
Free Cash Flow	71.54M	66.23M	41.35M	31.41M	64.05M	53.86M
Operating Cash Flow	154.79M	160.14M	139.73M	125.33M	140.86M	123.51M
Investing Cash Flow	-141.52M	-124.95M	-70.05M	-277.11M	-497.22M	-357.90M
Financing Cash Flow	-16.12M	-36.84M	-64.88M	154.38M	354.87M	224.40M

Killam Apartment REIT Un Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.50
• 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 Neutral. The current price of 16.5 is above the 20-day moving average (MA) of 16.40, below the 50-day MA of 16.84, and below the 200-day MA of 17.50, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 49.83 is Neutral, neither overbought nor oversold. The STOCH value of 63.05 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRG.UN	76 Outperform	C$896.44M	7.39	6.37%	4.44%	3.83%	63.32%
BEI.UN	74 Outperform	C$3.34B	9.97	6.23%	2.45%	6.52%	-54.45%
KMP.UN	71 Outperform	C$1.98B	3.65	18.10%	4.36%	6.19%	79.98%
MI.UN	69 Neutral	C$481.36M	6.43	7.26%	3.97%	-1.21%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CAR.UN	54 Neutral	C$5.75B	93.84	0.65%	4.13%	-6.51%	-81.28%
IIP.UN	47 Neutral	C$1.85B	-18.50	-4.40%	3.01%	1.55%	-401.05%

Killam Apartment REIT Un Corporate Events

Killam Apartment REIT Declares November 2025 Distribution

Killam Apartment REIT has announced a monthly distribution of $0.06 per unit for November 2025, payable on December 15, 2025. The company offers a distribution reinvestment plan (DRIP) that allows eligible unitholders to reinvest their distributions in additional units, with a 3% bonus in units for those participating. This announcement reflects Killam’s ongoing commitment to enhancing shareholder value and maintaining its position as a leading player in the Canadian residential real estate market.

Killam Apartment REIT Reports Strong Q3 2025 Performance Amid Strategic Growth Initiatives

Killam Apartment REIT reported a solid financial performance for Q3 2025, with a 5.5% increase in same property net operating income and a 3.0% rise in funds from operations per unit compared to the previous year. The company continued its capital recycling strategy by selling properties in Prince Edward Island and New Brunswick, raising $147.6 million, and reinvesting $168.8 million in new acquisitions, including significant investments in Ottawa and Fredericton. Despite a decrease in net income due to fair value losses on investment properties, Killam remains focused on enhancing its portfolio through development, with projects in Waterloo and Halifax on track for 2026 completion.

Killam Apartment REIT Boosts ESG Performance with Improved GRESB Score

Killam Apartment REIT announced a significant improvement in its GRESB score, achieving 82 out of 100 for its ESG performance, marking a three-point increase from the previous year. This improvement reflects Killam’s commitment to sustainability through initiatives like reducing energy consumption, enhancing waste reporting, increasing building certifications, and providing ESG training to employees, which collectively enhance value for residents, investors, and communities.

Killam Apartment REIT Declares October 2025 Distribution with Reinvestment Options

Killam Apartment REIT has announced its October 2025 monthly distribution of $0.06 per unit, payable on November 17, 2025, to unitholders of record as of October 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 underscores Killam’s commitment to providing value to its stakeholders and enhancing its financial strategies through reinvestment options.

Killam Apartment REIT to Announce Q3 2025 Financial Results

Killam Apartment REIT announced the release of its Q3 2025 financial results, scheduled for November 5, 2025, after the Toronto Stock Exchange closes. A webcast and conference call will follow on November 6, 2025, to discuss the results and current business initiatives. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

Killam Apartment REIT Declares September 2025 Distribution

Killam Apartment REIT has announced a September 2025 monthly distribution of $0.06 per unit, payable on October 15, 2025, to unitholders of record as of September 29, 2025. The company offers a distribution reinvestment plan allowing eligible unitholders to reinvest their cash distributions in additional units, with an additional 3% distribution of units for those participating. This announcement reflects Killam’s ongoing strategy to enhance value and profitability through strategic financial management and stakeholder engagement.