Education
About Us
Working with TipRanks
Follow Us
Killam Apartment REIT Un (TSE:KMP.UN)
:KMP.UN
RESEARCH TOOLSreports
Top Page
Killam Apartment REIT Un
(TSX:KMP.UN)
71Outperform
Positive Factors
Earnings Growth
KMP is well-positioned to deliver 5-6% annual earnings growth in 2025 and 2026.
Valuation
Killam's well-located and high-quality portfolio is seen as attractive value, with the units trading at a 17.3% discount to the NAV estimate.
Negative Factors
Interest Expenses
Much of the benefit of raising rental rates to market has been offset by greater interest expense from refinancing debt at higher rates.
Killam Apartment REIT Un (KMP.UN) vs. S&P 500 (SPY)
Market Cap
C$1.96B
Dividend Yield4.29%
Average Volume (3M)457.46K
Price to Earnings (P/E)3.0
Beta (1Y)0.85
Revenue Growth5.04%
EPS Growth151.14%
CountryCA
Employees758
SectorReal Estate
Sector Strength72
IndustryREITs
Share Statistics
EPS (TTM)5.52
Shares Outstanding119,732,060
10 Day Avg. Volume406,986
30 Day Avg. Volume457,460
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)N/A
Price to Sales (P/S)5.37
Price to Cash Flow (P/CF)8.10
P/FCF Ratio16.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.75Price Target Upside23.95% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Killam Apartment REIT Un Business Overview & Revenue Model
Company DescriptionKillam Apartment REIT (KMP.UN) is a Canadian real estate investment trust focused on the acquisition, ownership, and management of multi-residential apartment properties and manufactured home communities in Canada. Founded in 2002, Killam is headquartered in Halifax, Nova Scotia, and operates in major urban centers across the country. The company aims to provide sustainable, quality housing and to enhance its portfolio through strategic acquisitions and development projects.
How the Company Makes MoneyKillam Apartment REIT generates revenue primarily through the leasing of residential properties. The company's key revenue streams include rental income from its portfolio of apartment buildings and manufactured home communities. This rental income is supplemented by ancillary services provided to tenants, such as parking and laundry facilities. Additionally, Killam may enhance its earnings through strategic acquisitions and property development, which can lead to increased rental income and property value appreciation. The company also focuses on maintaining high occupancy rates and tenant satisfaction to ensure stable cash flow. Partnerships with local developers and municipalities can also play a role in expanding Killam's property portfolio, further contributing to its revenue growth.
Killam Apartment REIT Un Financial Statement Overview
Summary
Killam Apartment REIT displays a strong financial profile with consistent revenue growth, a solid balance sheet, and adequate cash flow. While leverage has increased, the overall financial performance remains robust, making it well-positioned within the REIT sector.Income Statement
The company has shown consistent revenue growth over the years, with a notable increase in net income in 2024. Gross profit margins remain strong, although EBIT margin is not available for 2024 which affects overall profitability assessment. The EBITDA margin is robust, indicating efficient operations.75
Positive
Balance Sheet
The balance sheet indicates a stable equity position with an increasing stockholders' equity over the years. The debt-to-equity ratio has slightly increased, indicating a higher leverage, which could pose risk if not managed properly. The equity ratio reflects a healthy capital structure.70
Positive
Cash Flow
The company has demonstrated growth in free cash flow alongside stable operating cash flow. The free cash flow to net income ratio is satisfactory, supporting dividend sustainability. However, the operating cash flow to net income ratio suggests a need for improved operational efficiency.68
Positive
| 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 | EBIT |
| 0.00 | 206.22M | 206.91M | 135.79M | 154.45M | EBITDA |
| 465.50M | 206.22M | 193.79M | 136.36M | 155.17M | Net Income Common Stockholders |
| 667.84M | 266.32M | 122.52M | 285.51M | 146.02M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 13.21M | 14.09M | 9.15M | 435.00K | 2.56M | Total Assets |
| 5.44B | 5.09B | 4.86B | 4.58B | 3.78B | Total Debt |
| 2.21B | 2.19B | 2.21B | 2.06B | 1.69B | Net Debt |
| 2.19B | 2.17B | 2.20B | 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
Positive
16.74
Price Trends
16.58
Positive
17.31
Negative
17.88
Negative
Market Momentum
0.02
Negative
54.40
Neutral
49.04
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 16.74 is above the 20-day moving average (MA) of 16.43, above the 50-day MA of 16.58, and below the 200-day MA of 17.88, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 54.40 is Neutral, neither overbought nor oversold. The STOCH value of 49.04 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.47B | 5.37 | 13.02% | 2.30% | 10.56% | -15.69% | |
73 Outperform | C$897.76M | 9.02 | 5.29% | 4.40% | 3.79% | -40.78% | |
71 Outperform | C$1.96B | 3.02 | 23.97% | 4.29% | 5.04% | 151.14% | |
71 Outperform | C$6.65B | 23.22 | 3.20% | 3.59% | 4.45% | ― | |
69 Neutral | C$1.55B | ― | -6.27% | 3.63% | 3.85% | -266.02% | |
61 Neutral | $4.76B | 18.86 | -2.89% | 8.05% | 6.45% | -20.33% | |
59 Neutral | C$2.61B | ― | -2.29% | 6.03% | -6.92% | -310.05% |
* Real Estate Sector Average
Performance Comparison
TSE:KMP.UN
Killam Apartment REIT Un
16.74
-1.53
-8.37%
TSE:BEI.UN
Boardwalk REIT
64.88
-10.55
-13.98%
TSE:HR.UN
H&R Real Estate ate Staple
9.89
1.73
21.20%
TSE:CAR.UN
Canadian Apartment
41.40
-4.80
-10.39%
TSE:MRG.UN
Morguard NA REIT UN
16.96
1.64
10.70%
TSE:IIP.UN
InterRent REIT Un
10.22
-3.46
-25.29%
Killam Apartment REIT Un Earnings Call Summary
Earnings Call Date: Feb 12, 2025 | % Change Since: 1.52% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong financial performance, including significant NOI growth and successful corporate restructuring, though tempered by challenges such as increased operating expenses and a slight vacancy uptick.Highlights
Strong Same Property NOI Growth
Killam achieved an 8.4% same property NOI growth across the portfolio, with 8.5% in the apartment portfolio, 7.5% in the manufactured home community portfolio, and 6.3% in commercial properties.
Increase in Funds from Operations (FFO)
FFO per unit increased by 2.6% from $1.15 in 2023 to $1.18 in 2024.
Successful Corporate Restructuring
Killam completed a strategic corporate restructuring transaction, resulting in a deferred tax recovery of $279 million.
Robust Rental Rate Increases
The same property apartment portfolio achieved a weighted average rental rate increase of 7.0% for the year, with a 19.5% rent growth for new tenants in Q4.
Debt Reduction Achievement
Debt as a percentage of total assets decreased to 40.4%, the lowest in Killam's operating history.
Lowlights
Increased Operating Expenses
Same property operating expenses increased modestly by 1.7% in 2024, with property taxes rising by 5.9%. A 5-7% rise in expenses is expected in 2025.
Vacancy Uptick
There was a 40 basis point increase in vacancy, with same property apartment occupancy at 98.0%, slightly below 2023's 98.4%.
Interest Rate Pressure
Higher interest rates are anticipated on refinancing in 2025 due to the current low rate on maturing apartment mortgages.
Market Rent Softening
A softening of market rent for certain units was observed, and the mark-to-market opportunity spread decreased over the past 6 months.
Company Guidance
During the Killam Apartment REIT Q4 2024 financial results call, the company reported robust growth and financial performance. Key metrics included an 8.4% increase in same property Net Operating Income (NOI), with specific growth of 8.5% in the apartment portfolio, 7.5% in manufactured home communities, and 6.3% in commercial properties. Funds from Operations (FFO) rose to $1.18 per unit, marking a 2.6% increase from 2023. Top-line revenue grew by 4.7% across the total portfolio and 6.0% for the same property portfolio. The company achieved a 7.0% weighted average rental rate increase, despite a slight vacancy uptick. For 2025, Killam anticipates same property NOI growth between 4% and 7% and revenue growth of 5% to 6%. The company also completed $59.2 million in property dispositions and is considering further acquisitions primarily in Western Canada and Ontario.Killam Apartment REIT Un Corporate Events
DividendsBusiness Operations and Strategy
Killam Apartment REIT Declares February 2025 Distribution
Positive
Feb 18, 2025
Killam Apartment REIT has announced a monthly distribution of $0.06 per unit for February 2025, payable on March 17, 2025, to unitholders of record on February 28, 2025. The REIT also offers a distribution reinvestment plan, allowing eligible unitholders to reinvest their cash distributions in additional units with an additional 3% distribution in units. This announcement underscores Killam’s commitment to providing value to its stakeholders and enhancing its financial strategies.
Business Operations and StrategyFinancial Disclosures
Killam Apartment REIT Reports Robust 2024 Financial Performance and Strategic Developments
Positive
Feb 12, 2025
Killam Apartment REIT reported strong financial performance for Q4 2024 and the full year, highlighted by an 8.4% growth in same property net operating income and a 2.6% increase in funds from operations per unit. The company completed a strategic internal reorganization to enhance cash flow and minimize tax exposure, and it plans to continue capital recycling by increasing non-core asset sales to strengthen its balance sheet and fund future developments.
Killam Apartment REIT Announces January 2025 Distribution and DRIP Benefits
Jan 15, 2025
Killam Apartment REIT has announced a monthly distribution of $0.06 per unit for January 2025, payable on February 18, 2025, to unitholders recorded by January 31, 2025. The company also offers a distribution reinvestment plan (DRIP) that allows eligible unitholders to reinvest cash distributions into additional units, with an added 3% distribution of units, reinforcing its commitment to expanding shareholder value. This announcement underscores Killam’s ongoing strategy to augment shareholder returns and maintain its strong position within the residential real estate sector.
Killam Apartment REIT to Announce 2024 Financial Results
Jan 3, 2025
Killam Apartment REIT is set to release its 2024 financial results on February 12, 2025, following the close of the Toronto Stock Exchange, with a detailed discussion scheduled for the next day via a webcast and conference call. As one of Canada’s largest residential real estate trusts, Killam focuses on increasing earnings, expanding its property portfolio, and developing high-quality properties.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.