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Killam Apartment REIT Un (TSE:KMP.UN)
TSX:KMP.UN
Canadian Market
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Killam Apartment REIT Un (KMP.UN) AI Stock Analysis

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TSE:KMP.UN

Killam Apartment REIT Un

(TSX:KMP.UN)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
C$20.50
â–²(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 (KMP.UN) vs. iShares MSCI Canada ETF (EWC)

Killam Apartment REIT Un Business Overview & Revenue Model

Company DescriptionKillam 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 MoneyKillam 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 Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive outlook for Killam Apartment REIT, with strong financial performance, strategic acquisitions, and robust same-property NOI growth. However, challenges such as increased turnover rates, pressure in certain rental markets, and reliance on rental incentives indicate areas of concern.
Q2-2025 Updates
Positive Updates
Strong FFO Growth
Killam delivered FFO of $0.32 per unit, a 6.7% increase from $0.30 per unit in Q2 2024.
Same-Property NOI Growth
Achieved 6.7% same-property NOI growth across the portfolio, with 10.1% growth in the manufactured home community portfolio.
High Occupancy Levels
Same-property apartment occupancy at the end of Q2 was 97.5%.
Successful Dispositions
Completed the sale of several properties, including 318 units in Newfoundland for $18.5 million.
Energy Efficiency Initiatives
Continued investment in solar panels and energy management initiatives to offset inflationary pressures.
Commercial Portfolio Growth
Commercial portfolio revenue grew by 4.8% with a 50 basis point increase in commercial occupancy to 94.6%.
Notable Developments
Completed the purchase of a 50% interest in Ottawa apartment buildings; The Carrick building is 60% leased.
Negative Updates
Use of Rental Incentives
Increase in rental incentives as a percentage of total revenue, with significant incentives in Ontario and Alberta.
Interest Expense Increase
Higher interest expense compared to Q2 2024, despite a moderating impact this quarter.
Turnover Rate Increase
Turnover year-to-date is approximately 12%, anticipated to reach 20% for the year, up from 18% in 2024.
Sun Life Vacancy at Westmount Place
Sun Life will vacate Westmount Place by March 31, 2026, potentially impacting NOI.
Pressure in Rental Markets
Pressure at the top end of the rental market, especially in new builds and suburban areas.
Company Guidance
During the second quarter of 2025, Killam Apartment REIT reported strong financial and operational performance, with several key metrics highlighted. The funds from operations (FFO) per unit increased by 6.7% to $0.32 from $0.30 in the same quarter of 2024. Same-property net operating income (NOI) grew by 6.7%, with the apartment portfolio seeing a 6.6% increase, the manufactured home community portfolio up by 10.1%, and commercial properties rising by 3.4%. The occupancy rate for same-property apartments was slightly lower at 97.5% compared to 97.8% in Q2 2024. Rental incentives rose, particularly in Ontario and Alberta, with the introduction of new developments, such as those at Civic 66 and Nolan Hill Phase 2. Killam's financial strategy included a focus on strategic asset sales, resulting in the disposition of several properties in Newfoundland and Prince Edward Island, alongside acquisitions in New Brunswick and Ottawa. The REIT also made advances in sustainability efforts, such as installing solar panels to reduce energy costs. Looking ahead, Killam aims to maintain its growth trajectory, with expectations of continued revenue and NOI growth, supported by strategic capital allocation and property development initiatives.

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
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue375.83M364.65M349.96M328.85M290.92M261.69M
Gross Profit249.40M240.48M225.85M206.91M183.24M164.66M
EBITDA330.66M465.50M206.22M193.79M136.36M155.17M
Net Income561.20M667.84M266.32M122.52M285.51M146.02M
Balance Sheet
Total Assets5.55B5.44B5.09B4.86B4.58B3.78B
Cash, Cash Equivalents and Short-Term Investments10.83M13.21M14.09M9.15M435.00K2.56M
Total Debt2.21B2.21B2.19B2.21B2.06B1.69B
Total Liabilities2.35B2.35B2.60B2.59B2.47B2.01B
Stockholders Equity3.20B3.09B2.48B2.27B2.11B1.77B
Cash Flow
Free Cash Flow73.97M66.23M41.35M31.41M64.05M53.86M
Operating Cash Flow156.47M160.14M139.73M125.33M140.86M123.51M
Investing Cash Flow-107.02M-124.17M-69.92M-277.05M-497.85M-358.15M
Financing Cash Flow-48.83M-36.84M-64.88M154.38M354.87M224.40M

Killam Apartment REIT Un Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.98
Price Trends
50DMA
18.17
Negative
100DMA
18.42
Negative
200DMA
17.47
Positive
Market Momentum
MACD
-0.03
Negative
RSI
49.14
Neutral
STOCH
28.74
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
3.80B10.686.64%2.15%8.12%-50.95%
78
Outperform
C$2.18B3.8719.03%3.99%5.82%83.08%
68
Neutral
957.25M10.295.09%4.13%3.93%-29.40%
68
Neutral
506.27M7.315.67%3.74%-0.69%0.00%
61
Neutral
6.51B82.020.91%3.70%-2.56%0.00%
58
Neutral
1.86B-10.76-8.02%2.95%1.56%-9446.15%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:KMP.UN
Killam Apartment REIT Un
17.98
-2.33
-11.47%
TSE:CAR.UN
Canadian Apartment
41.04
-12.17
-22.87%
TSE:IIP.UN
InterRent REIT Un
13.35
0.96
7.75%
TSE:MRG.UN
Morguard NA REIT UN
18.33
-0.24
-1.29%
TSE:MI.UN
Minto Apartment Real Estate Investment Trust
13.74
-2.54
-15.60%
BOWFF
Boardwalk REIT
51.38
-11.76
-18.63%

Killam Apartment REIT Un Corporate Events

Dividends
Killam Apartment REIT Announces August 2025 Distribution
Positive
Aug 15, 2025

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.

Business Operations and StrategyFinancial Disclosures
Killam Apartment REIT Reports Strong Q2-2025 Financial Performance
Positive
Aug 6, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 24, 2025