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

• Market Cap: C$2.33B
• Dividend Yield: 3.64%
• Average Volume (3M): 266.82K
• Price to Earnings (P/E): 3.7
• Beta (1Y): 0.89
• Revenue Growth: 5.77%
• EPS Growth: 108.23%
• Country: CA
• Employees: 495
• Sector: Real Estate
• Sector Strength: 66
• Industry: REIT - Residential
• EPS (TTM): 0.82
• Shares Outstanding: 120,802,280
• 10 Day Avg. Volume: 285,387
• 30 Day Avg. Volume: 266,824
• PEG Ratio: -0.99
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 29.99
• 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$21.25
• Price Target Upside: 9.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 81 Outperform
• Price Target: C$21.00 ▲(7.97%Upside)

Killam Apartment REIT exhibits strong financial performance and attractive valuation, with positive technical momentum. Earnings call insights reinforce the company's strategic strength, though rising costs present a challenge. The stock is appealing within the REIT sector, supported by growth and a robust dividend yield.

Positive Factors

Acquisition and Development

The disposition program stands at $166M, providing funding for the recently announced REI acquisition and continued execution on the development program.

Earnings Growth

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

Negative Factors

Interest Expenses

Greater interest expense from mortgage refinancing has partially offset strong operating performance.

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 rental income from its portfolio of residential properties. The company's core revenue streams include leases from apartment units, manufactured home community sites, and ancillary services provided to tenants. Additionally, Killam benefits from property value appreciation and strategic acquisitions that enhance its asset base. The company may also engage in property development and refurbishment, adding value to its holdings and increasing rental yields. Furthermore, Killam's partnerships with local communities and adherence to sustainable practices contribute to its operational efficiency and long-term profitability. By maintaining high occupancy rates and strategically managing its properties, Killam ensures a steady stream of income and capital growth for its investors.

Killam Apartment REIT Un Financial Statement Overview

Summary

Killam Apartment REIT shows strong financial health with solid revenue and profit growth. Effective cost management and operational efficiency are evident, with a high net profit margin. The balance sheet is stable, with moderate leverage typical for the industry. However, cash flow conversion from earnings could improve.

Income Statement

The company has demonstrated solid revenue growth, with a revenue increase of 12.8% from 2023 to TTM (Trailing-Twelve-Months). The gross profit margin stands at 66.1% for TTM, indicating strong cost management. Net profit margin is exceptionally high at 173.2% due to significant net income, but this may suggest one-time gains or unusual items. EBIT and EBITDA margins are robust at 60.1% and 90.1%, respectively, reflecting effective operational performance.

Balance Sheet

The debt-to-equity ratio is 0.70, indicating a moderate level of leverage which is typical for a REIT. Return on Equity (ROE) is high at 20.2%, showing efficient use of equity to generate profits. The equity ratio is strong at 57.3%, suggesting a stable capital structure with substantial equity backing.

Cash Flow

Operating cash flow is strong relative to net income, with a ratio of 0.25 for TTM, indicating good cash generation from operations. Free cash flow grew by 9.2%, reflecting positive cash flow management. However, the free cash flow to net income ratio is low at 0.11, suggesting that not all earnings are translating into free cash flow.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
370.96M	364.65M	349.96M	328.85M	290.92M	261.69M
	Gross Profit
245.25M	240.48M	225.85M	206.91M	183.24M	164.66M
	EBIT
222.96M	219.13M	206.22M	206.91M	135.79M	154.45M
	EBITDA
334.13M	465.50M	206.22M	193.79M	136.36M	155.17M
	Net Income Common Stockholders
642.51M	667.84M	266.32M	122.52M	285.51M	146.02M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.09M	13.21M	14.09M	9.15M	435.00K	2.56M
	Total Assets
5.09B	5.44B	5.09B	4.86B	4.58B	3.78B
	Total Debt
2.19B	2.21B	2.19B	2.21B	2.06B	1.69B
	Net Debt
2.17B	2.19B	2.17B	2.20B	2.06B	1.69B
	Total Liabilities
2.60B	2.35B	2.60B	2.59B	2.47B	2.01B
	Stockholders Equity
2.48B	3.09B	2.48B	2.27B	2.11B	1.77B
Cash Flow		Free Cash Flow
72.32M	66.23M	41.35M	31.41M	64.05M	53.86M
	Operating Cash Flow
161.44M	160.14M	139.73M	125.33M	140.86M	123.51M
	Investing Cash Flow
-112.44M	-124.17M	-69.92M	-277.05M	-497.85M	-358.15M
	Financing Cash Flow
-47.50M	-36.84M	-64.88M	154.38M	354.87M	224.40M

Killam Apartment REIT Un Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:KMP.UN, the sentiment is Positive. The current price of 19.45 is above the 20-day moving average (MA) of 18.57, above the 50-day MA of 17.59, and above the 200-day MA of 17.79, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 70.52 is Negative, neither overbought nor oversold. The STOCH value of 76.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
KMP.UN	81 Outperform	C$2.33B	3.67	22.26%	3.64%	5.77%	108.23%
CAR.UN	76 Outperform	C$7.09B	63.29	1.29%	3.36%	0.93%	―
MRG.UN	75 Outperform	C$971.30M	8.68	5.83%	4.07%	3.85%	-31.81%
MI.UN	71 Outperform	C$544.09M	5.97	9.03%	3.56%	-0.29%	―
IIP.UN	71 Outperform	C$1.91B	―	-7.00%	2.84%	2.52%	-573.45%
Sector *	61 Neutral	$2.82B	10.88	0.42%	8438.92%	5.74%	-20.95%
BOWFF		$2.73B	8.61	8.71%	2.04%	―	―

Killam Apartment REIT Un Corporate Events

Killam Apartment REIT Announces May 2025 Distribution and DRIP Benefits

Killam Apartment REIT has announced its May 2025 monthly distribution of $0.06 per unit, payable on June 16, 2025, to unitholders of record as of May 30, 2025. The company offers a distribution reinvestment plan (DRIP) allowing eligible unitholders to reinvest cash distributions into additional units, with an additional 3% distribution for participating unitholders. This announcement reflects Killam’s ongoing commitment to providing value to its investors and enhancing its financial strategies.

The most recent analyst rating on ($TSE:KMP.UN) stock is a Hold with a C$20.50 price target. To see the full list of analyst forecasts on Killam Apartment REIT Un stock, see the TSE:KMP.UN Stock Forecast page.

Killam Apartment REIT Reports 2025 Annual Meeting Results

Killam Apartment REIT announced the results of its 2025 annual meeting of unitholders, where all proposed trustees were elected, Ernst & Young LLP was reappointed as auditors, and the executive compensation advisory vote was approved. These outcomes reflect strong support for the company’s current leadership and strategic direction, potentially reinforcing investor confidence and stability in its operations.

The most recent analyst rating on ($TSE:KMP.UN) stock is a Hold with a C$20.5000 price target. To see the full list of analyst forecasts on Killam Apartment REIT Un stock, see the TSE:KMP.UN Stock Forecast page.

Killam Apartment REIT Reports Strong Q1-2025 Results with Increased FFO and NOI

Killam Apartment REIT reported a robust first quarter in 2025, with a 7.7% increase in funds from operations per unit and a 7.8% growth in net operating income from the same properties. The company maintained high occupancy rates and improved its financial metrics, including a record-low debt-to-total assets ratio, while progressing on development projects and asset sales to enhance its financial position.

Killam Apartment REIT Announces April 2025 Distribution and Reinvestment Plan

Killam Apartment REIT has announced its April 2025 monthly distribution of $0.06 per unit, payable on May 15, 2025, to unitholders of record as of April 30, 2025. The company offers a distribution reinvestment plan, allowing eligible unitholders to reinvest their cash distributions into additional units, with an added 3% distribution of units for participants. This announcement reflects Killam’s ongoing commitment to enhancing shareholder value and its strategic focus on growth and profitability.

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.