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

• Market Cap: C$2.15B
• Dividend Yield: 4.01%
• Average Volume (3M): 258.40K
• Price to Earnings (P/E): 3.8
• Beta (1Y): 0.86
• Revenue Growth: 5.82%
• EPS Growth: 83.08%
• Country: CA
• Employees: 495
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Residential
• EPS (TTM): 0.27
• Shares Outstanding: 120,802,280
• 10 Day Avg. Volume: 295,474
• 30 Day Avg. Volume: 258,403
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$21.54
• Price Target Upside: 20.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 70 Outperform
• Price Target: C$20.00 ▲(12.23% Upside)

Killam Apartment REIT's strong financial performance and positive earnings call are the most significant factors contributing to the score. The company's robust revenue and profit growth, effective cost management, and strategic achievements in leasing and development are notable strengths. However, bearish technical indicators and rising operating expenses present challenges. The low P/E ratio suggests potential undervaluation, while the attractive dividend yield supports income-focused investment strategies.

Positive Factors

Financial Performance

Killam Apartment REIT reported solid results with FFO per diluted unit of $0.32, up 6.7% year-over-year, and slightly ahead of both analyst estimate and consensus.

Growth Potential

The company is actively advancing its development pipeline with several projects under construction, indicating growth potential.

Valuation

Killam currently trades at an implied cap rate of 5.5%, or a 9.0% discount to analyst's NAV estimate.

Negative Factors

Interest Expenses

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

Market Conditions

A large volume of new supply for rental housing and slower population growth have led to greater vacancy and lower market rental rates in most of Killam’s core markets.

Stock Rating

Several apartment REITs, including Killam, were downgraded to HOLD from BUY.

Killam Apartment REIT Un Business Overview & Revenue Model

Company Description

Killam Apartment REIT Un (KMP.UN) is a Canadian real estate investment trust primarily focused on the acquisition, ownership, and management of multi-residential apartment buildings. Established to provide quality housing accommodations, Killam operates across various provinces in Canada, offering a diverse portfolio that includes apartments, manufactured home communities, and commercial properties. The company is dedicated to enhancing the value of its properties through strategic acquisitions, developments, and active management.

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 demonstrates solid financial health with strong revenue and profit growth, effective cost management, and operational efficiency. The balance sheet is robust with a healthy equity base and moderate leverage typical for the industry. Cash flow management is positive, though there is room for improvement in converting earnings to free cash flow.

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

Killam Apartment REIT Un Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 17.82 is below the 20-day moving average (MA) of 18.71, below the 50-day MA of 19.07, and above the 200-day MA of 17.53, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 28.54 is Positive, neither overbought nor oversold. The STOCH value of 10.02 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
BEI.UN	79 Outperform	$3.80B	10.74	6.62%	2.13%	8.12%	-50.95%
KMP.UN	70 Outperform	C$2.15B	3.84	19.03%	4.01%	5.82%	83.08%
MRG.UN	68 Neutral	C$931.79M	9.94	4.86%	4.24%	3.93%	-29.40%
MI.UN	68 Neutral	C$507.92M	5.72	9.03%	3.75%	-0.29%	―
IIP.UN	67 Neutral	C$1.85B	―	-7.49%	2.96%	1.56%	-9446.15%
Sector *	64 Neutral	C$1.99B	4.76	-0.88%	5.24%	2.53%	-62.52%
CAR.UN	64 Neutral	C$6.73B	84.55	0.88%	3.59%	-2.56%	―

Killam Apartment REIT Un Corporate Events

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.

Killam Apartment REIT Announces July 2025 Distribution and Reinvestment Plan

Killam Apartment REIT has announced a monthly distribution of $0.06 per unit for July 2025, payable on August 15, 2025, to unitholders of record by July 31, 2025. The company also offers a distribution reinvestment plan, allowing eligible unitholders to reinvest their cash distributions into additional units, with an additional 3% distribution of units for those participating. This announcement reflects Killam’s ongoing commitment to providing value to its stakeholders and enhancing its market position by encouraging reinvestment and growth.

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 to Announce Q2 2025 Financial Results

Killam Apartment REIT announced that it will release its Q2 2025 financial results on August 6, 2025, after the Toronto Stock Exchange closes. A webcast and conference call to discuss the results and business initiatives will follow on August 7, 2025. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction.

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 Announces June 2025 Distribution and DRIP Benefits

Killam Apartment REIT has announced a monthly distribution of $0.06 per unit for June 2025, payable on July 15, 2025, to unitholders of record as of June 30, 2025. The company offers a distribution reinvestment plan (DRIP) where eligible unitholders can reinvest their distributions into additional units, receiving an extra 3% in units on the reinvested amount. This announcement underscores Killam’s commitment to providing value to its investors and enhancing its market position through strategic financial offerings.

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 Unveils 2024 ESG Achievements

Killam Apartment REIT has released its 2024 Environmental, Social, and Governance (ESG) Report, highlighting significant achievements in energy efficiency, emissions reduction, and community contributions. The report underscores Killam’s commitment to sustainability and responsible leadership, with notable recognitions such as being ranked #1 in GRESB’s North American Residential Public Disclosure Report and being named one of Canada’s Most Responsible Companies by Newsweek and Statista.

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 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.