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

• Market Cap: C$1.92B
• Dividend Yield: 4.42%
• Average Volume (3M): 272.56K
• Price to Earnings (P/E): 69.3
• Beta (1Y): 0.63
• Revenue Growth: 6.19%
• EPS Growth: 79.98%
• Country: CA
• Employees: 495
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): -1.21
• Shares Outstanding: 122,307,816
• 10 Day Avg. Volume: 205,938
• 30 Day Avg. Volume: 272,559
• PEG Ratio: -0.72
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 5.32
• P/FCF Ratio: 30.72
• 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$19.80
• Price Target Upside: 25.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.25
• Revenue Forecast (FY): C$394.66M

• Rating: 61 Neutral
• Price Target: C$18.00 ▲(14.50% Upside)
• Action: Downgraded Date: 02/18/26
• Date: Action: Downgraded 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.

High Occupancy & Rent Upside

Near‑full occupancy (97.3%), ~4.8% rental rate growth and a ~9% mark‑to‑market spread indicate continued organic upside from renewals and turn rents. Coupled with a leasing pipeline (new assets like The Carrick at 95% leased), this supports predictable revenue growth and incremental FFO over multiple quarters.

Improving Balance Sheet & Cash Generation

Higher share of CMHC‑insured mortgages and a lower debt/assets ratio (41.9%) reduce refinance risk versus unsecured exposure. Stable operating cash flow historically ($123M–$160M) supports dividends, targeted dispositions and reinvestment, providing resilient financial flexibility through cycles.

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.

Net Income Volatility (Fair-Value)

Large fair‑value swings produced massive year‑over‑year net income volatility, masking underlying operating cash performance. This reduces predictability of reported profits, complicates forecasting for stakeholders and may pressure covenants or capital plans if fair‑value volatility persists.

Financing & Execution Risk

Rising financing costs and expected stabilization only by 2027 increase near‑term interest expense and refinancing strain. Planned $50M+ asset recycling and repositionings face timing and execution risk; delays or weaker disposal pricing would limit deleveraging and reinvestment options.

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

Operating fundamentals appear solid (steady multi-year revenue growth and strong operating margins), but overall quality is tempered by volatile net income (fair-value and other non-operating impacts) and a meaningful absolute debt load that keeps refinancing/valuation sensitivity elevated. Operating cash flow and free cash flow are positive but show some year-to-year variability.

Income Statement

Revenue has grown steadily from 2020–2025, with a particularly strong jump in 2025 (growth rate ~55%). Profitability at the operating level has been consistently high (gross and operating margins were strong in the years provided), supporting resilient core earnings power. However, net income is very volatile—2024 shows an unusually large net profit margin versus other years, and 2025 net income is much lower—suggesting results are influenced by non-operating or one-time items, reducing predictability of bottom-line performance.

Balance Sheet

The balance sheet is sizable and has grown over time, with equity remaining substantial. Leverage is meaningful but has improved versus earlier years: debt-to-equity moved down from ~1.0 (2020–2022) to ~0.71 in 2024, indicating better capitalization. The key weakness is the absolute debt load (over $2.3B in 2025), which can limit flexibility in higher-rate environments and makes the company more sensitive to refinancing and property valuation shifts.

Cash Flow

Operating cash flow is solid and relatively stable (roughly $123M–$160M annually), supporting the underlying rental cash-generation profile. Free cash flow is consistently positive, but growth is uneven—down in 2022, improved in 2023–2024, and slightly down again in 2025. Cash conversion versus accounting earnings is not consistently strong (where provided), and 2025 shows lower operating cash flow than 2024, pointing to some variability in cash generation despite stable revenue.

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

• Technical Analysis Sentiment: Negative
• Last Price: 15.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 15.72 is below the 20-day moving average (MA) of 16.52, below the 50-day MA of 17.02, and below the 200-day MA of 17.36, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 29.11 is Positive, neither overbought nor oversold. The STOCH value of 18.46 is Positive, 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	70 Outperform	C$855.95M	8.80	6.37%	4.41%	3.83%	63.32%
BEI.UN	66 Neutral	C$3.30B	16.05	3.97%	2.46%	6.52%	-54.45%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
CAR.UN	62 Neutral	C$5.47B	29.80	0.65%	4.20%	-6.51%	-81.28%
KMP.UN	61 Neutral	C$1.92B	69.28	0.93%	4.42%	6.19%	79.98%
IIP.UN	60 Neutral	C$1.86B	27.54	0.81%	3.01%	1.55%	-401.05%
MI.UN	60 Neutral	C$637.78M	-3.53	7.26%	3.87%	-1.21%	―

Killam Apartment REIT Un Corporate Events

Killam Apartment REIT Declares February 2026 Monthly Distribution and Maintains DRIP Incentive

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 which eligible investors can reinvest their distributions into additional units and receive a 3% bonus in units, reinforcing long-term capital growth options for unitholders and supporting its ongoing portfolio expansion strategy.

The most recent analyst rating on ($TSE:KMP.UN) stock is a Buy with a C$19.50 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 Posts Strong 2025 Operating Gains Amid Capital Recycling Push

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 from operations per unit grew 4.2% to $1.23 and AFFO per unit rose 5.1%, while same-property apartment occupancy reached 96.9%, underscoring resilient demand in its rental portfolio.

The trust’s capital recycling strategy saw $148.3 million of non-core asset sales redeployed into $168.8 million of acquisitions in Ottawa and New Brunswick and funding of developments in Waterloo and Halifax, including projects scheduled for completion in 2026. Despite a swing to a 2025 net income of $29.4 million from $667.8 million in 2024 due to fair value losses and prior-year tax recoveries, Killam maintained a conservative balance sheet with debt at 41.9% of assets and highlighted the contribution of newly completed properties such as The Carrick, positioning it for continued growth.

The most recent analyst rating on ($TSE:KMP.UN) stock is a Buy with a C$19.00 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 Buys 109-Unit Halifax Tower in $29.6 Million Deal

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 large two- and three-bedroom suites with average monthly rents of $1,860, providing Killam with both a stable income stream and meaningful mark-to-market upside as units turn over. Management said the building’s strong location, well-maintained condition and potential for operating cost reductions through energy-efficiency upgrades should enhance the asset’s performance within the REIT’s portfolio, furthering its strategy of growing in core markets and meeting strong demand for larger, relatively affordable rental units in Halifax.

The most recent analyst rating on ($TSE:KMP.UN) stock is a Hold with a C$17.00 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 Buys 109-Unit Halifax Tower to Bolster Core Market Growth

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 consists entirely of large two- and three-bedroom units with average in-place monthly rents of $1,860, offering mark-to-market upside as suites turn over. Management views the well-maintained, well-located asset as a strategic addition that supports its growth plans in core markets and sees further potential to enhance performance through energy-efficiency upgrades and expected operating cost reductions, reinforcing Killam’s positioning in the competitive multifamily housing market in Atlantic Canada.

The most recent analyst rating on ($TSE:KMP.UN) stock is a Hold with a C$17.00 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 Declares January 2026 Monthly Distribution and Maintains DRIP Incentive

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 allows eligible investors to reinvest their cash distributions into additional units and receive an extra 3% in units on the reinvested amount, reinforcing its income-focused appeal for unitholders and supporting ongoing capital formation for future growth initiatives.

The most recent analyst rating on ($TSE:KMP.UN) stock is a Buy with a C$19.00 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 Sets February Dates for 2025 Results and Investor Webcast

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 12 to review the results and discuss current business initiatives. The extended availability of the webcast replay is aimed at providing broad access to management’s commentary for investors and analysts, underscoring Killam’s ongoing investor-relations focus as it continues to execute its growth and development strategy in the Canadian residential real estate market.

The most recent analyst rating on ($TSE:KMP.UN) stock is a Buy with a C$18.00 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 Announces December 2025 Distribution and Reinvestment Plan

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 to reinvest their distributions in additional units, with a 3% bonus in units for those participating. This announcement reflects Killam’s ongoing strategy to enhance value for its stakeholders by providing consistent returns and opportunities for reinvestment.

The most recent analyst rating on ($TSE:KMP.UN) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Killam Apartment REIT Un stock, see the TSE:KMP.UN Stock Forecast page.