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

• Market Cap: C$2.18B
• Dividend Yield: 3.99%
• Average Volume (3M): 328.93K
• Price to Earnings (P/E): 3.9
• Beta (1Y): 0.85
• Revenue Growth: 5.82%
• EPS Growth: 83.08%
• Country: CA
• Employees: 495
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): 0.27
• Shares Outstanding: 121,143,040
• 10 Day Avg. Volume: 368,797
• 30 Day Avg. Volume: 328,926
• PEG Ratio: 0.02
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 5.76
• 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$21.50
• Price Target Upside: 19.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 78 Outperform
• Price Target: C$20.50 ▲(14.02% Upside)

Killam Apartment REIT Un scores well due to its strong financial performance and attractive valuation. The positive earnings call supports growth prospects, though technical indicators suggest caution. The company is well-positioned within the residential REIT industry, but investors should be mindful of market pressures and operational challenges.

Positive Factors

Strong Financial Performance

Killam's strong financial performance, highlighted by high profitability margins and effective cash flow management, indicates a robust business model capable of sustaining growth and operational efficiency in the long term.

Sustainability Initiatives

Killam's investment in sustainability initiatives like solar panels demonstrates a commitment to reducing operational costs and environmental impact, enhancing long-term competitiveness and appeal to eco-conscious tenants.

Same-Property NOI Growth

The 6.7% growth in same-property NOI reflects effective property management and demand for Killam's offerings, supporting consistent revenue growth and financial stability.

Negative Factors

Increased Turnover Rates

Rising turnover rates can lead to increased vacancy and higher costs associated with tenant acquisition, potentially impacting revenue stability and operational efficiency.

Use of Rental Incentives

Reliance on rental incentives to maintain occupancy may pressure margins and indicate challenges in certain markets, affecting long-term profitability.

Interest Expense Increase

Increased interest expenses can strain financial resources, reducing cash available for growth initiatives and potentially impacting net income over time.

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 extensive portfolio of residential properties. The company collects rent from tenants residing in its apartment units and manufactured home communities, which forms the backbone of its recurring revenue stream. Additionally, Killam benefits from property appreciation, which can enhance the value of its real estate assets over time. The company may also engage in property development and redevelopment projects, adding new units or upgrading existing properties to command higher rental rates. Killam's earnings are further supplemented by strategic partnerships and joint ventures that enable expansion and diversification of its asset base. The focus on maintaining high occupancy rates and tenant satisfaction is crucial in sustaining its revenue model.

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 management is effective despite 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	375.83M	364.65M	349.96M	328.85M	290.92M	261.69M
Gross Profit	249.40M	240.48M	225.85M	206.91M	183.24M	164.66M
EBITDA	330.66M	465.50M	206.22M	193.79M	136.36M	155.17M
Net Income	561.20M	667.84M	266.32M	122.52M	285.51M	146.02M
Balance Sheet
Total Assets	5.55B	5.44B	5.09B	4.86B	4.58B	3.78B
Cash, Cash Equivalents and Short-Term Investments	10.83M	13.21M	14.09M	9.15M	435.00K	2.56M
Total Debt	2.21B	2.21B	2.19B	2.21B	2.06B	1.69B
Total Liabilities	2.35B	2.35B	2.60B	2.59B	2.47B	2.01B
Stockholders Equity	3.20B	3.09B	2.48B	2.27B	2.11B	1.77B
Cash Flow
Free Cash Flow	73.97M	66.23M	41.35M	31.41M	64.05M	53.86M
Operating Cash Flow	156.47M	160.14M	139.73M	125.33M	140.86M	123.51M
Investing Cash Flow	-107.02M	-124.17M	-69.92M	-277.05M	-497.85M	-358.15M
Financing Cash Flow	-48.83M	-36.84M	-64.88M	154.38M	354.87M	224.40M

Killam Apartment REIT Un Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 17.98 is above the 20-day moving average (MA) of 17.96, below the 50-day MA of 18.17, and above the 200-day MA of 17.47, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 49.14 is Neutral, neither overbought nor oversold. The STOCH value of 28.74 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
BEI.UN	79 Outperform	3.80B	10.68	6.64%	2.15%	8.12%	-50.95%
KMP.UN	78 Outperform	C$2.18B	3.87	19.03%	3.99%	5.82%	83.08%
MRG.UN	68 Neutral	957.25M	10.29	5.09%	4.13%	3.93%	-29.40%
MI.UN	68 Neutral	506.27M	7.31	5.67%	3.74%	-0.69%	0.00%
CAR.UN	61 Neutral	6.51B	82.02	0.91%	3.70%	-2.56%	0.00%
IIP.UN	58 Neutral	1.86B	-10.76	-8.02%	2.95%	1.56%	-9446.15%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Killam Apartment REIT Un Corporate Events

Killam Apartment REIT Announces August 2025 Distribution

Killam Apartment REIT has announced its August 2025 monthly distribution of $0.06 per unit, payable on September 15, 2025, to unitholders of record on August 29, 2025. The company offers a distribution reinvestment plan that allows eligible unitholders to reinvest their cash distributions in additional units, with a 3% bonus in units for those participating. This announcement reflects Killam’s ongoing commitment to providing value to its stakeholders and enhancing the profitability of its extensive real estate portfolio.

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 Strong Q2-2025 Financial Performance

Killam Apartment REIT announced strong financial results for Q2-2025, highlighting a 6.0% increase in same property revenue and a 6.7% growth in net operating income compared to the previous year. The company continues to benefit from its capital recycling program, using proceeds from property sales to invest in newer, more efficient buildings, which has contributed to an 8.0% increase in adjusted funds from operations per unit. Additionally, Killam’s strategic acquisitions and developments, such as the 114-unit property in Fredericton and the sustainable Carrick development in Waterloo, underscore its commitment to growth and sustainability. The company’s improved debt metrics, with a debt-to-total assets ratio of 39.6%, further strengthen its financial position.

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.