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Highlights

  • In Q3 2024, KPM.UN reported a 4.7% year-over-year (YoY) increase in property revenue, reaching CAD 93.7 million
  • Net operating income (NOI) for Q3 grew by 6.4% YoY to CAD 64.4 million
  • Net income declined by 8.2% YoY in Q3, reaching CAD 62.7 million, impacted by increased finance costs despite
  • As of November 6, 2024, KPM reduced its debt to a historic low of 40.7% of total assets

Killam Apartment Real Estate Investment Trust (TSX:KMP.UN) specializes in the acquisition, management, and development of multi-residential apartment buildings and manufactured home communities (MHC).

In the third quarter of 2024 (3Q2024), KPM saw a 4.7% YoY increase in property revenue, reaching CAD 93.7 million, compared to CAD 89.5 million in the prior corresponding period. This rise was driven by overall portfolio performance, contributing positively to revenue growth.

Additionally, the company achieved a 6.4% YoY increase in net operating income, which reached CAD 64.4 million compared to CAD 60.5 million in pcp. This improvement was mainly due to better revenue and managed control over expenditures.

However, the company's income before income taxes declined by 4.5% YoY, totaling CAD 74.0 million, down from CAD 77.5 million in the previous year. The decrease was primarily attributed to higher finance costs. As a result, net income also decreased by 8.2%, amounting to CAD 62.7 million, compared to CAD 68.3 million in Q3 2023. This decline reflects the impact of the higher finance costs despite positive operational performance.

Recent Business Update

As of November 6, 2024, the company successfully minimised its debt, achieving a historic low of 40.7% debt as a percentage of total assets by the end of the third quarter. On January 15, 2025, the company also announced its monthly distribution for January 2025, with a distribution of CAD 0.06 per unit. This payment is scheduled to be made on February 18, 2025, to unitholders of record as of January 31, 2025.

FY24 Financial Guidance

KPM expects to achieve at least 8.0% growth in same-property NOI for FY 2024. Additionally, over 38% of its NOI will come from outside Atlantic Canada.

Top 10 Shareholders

The top 10 shareholders of KPM collectively own around 26.00% of the total shares. The largest stakes are held by BlackRock Institutional Trust Company, N.A., with approximately 4.72%, and RBC Global Asset Management Inc., holding around 4.57%.

Stock Performance

The stock has experienced a decline of approximately 0.82% over the past week and 2.10% over the past month. It is currently trading lower than the average of its 52-week high of CAD 21.72 and 52-week low of CAD 16.44. As of January 27, 2025, the stock closed at CAD 16.75.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is January 27, 2025. The reference data in this report has been partly sourced from EODHD/Others.