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Highlights

  • KPM’s Q2 2024 property revenue grew 4.5% to CAD 90.7 million year-over-year.
  • Net operating income increased 6.6% to CAD 59.9 million, reflecting a good portfolio performance.
  • KPM expects over 6% NOI growth in FY 2024, with significant income from outside Atlantic Canada.

Killam Apartment Real Estate Investment Trust (TSX:KMP.UN) focuses on the acquisition, management, and development of multi-residential apartments and manufactured home communities. KPM is an open-ended mutual fund trust with a market cap of CAD 2.34bn. Its three main segments are Apartment, MHC, and Commercial properties across Canada.

In Q2 2024, KPM’s property revenue reached CAD 90.7 million, up 4.5% from CAD 86.8 million in Q2 2023 (pcp). This increase was due to healthy performance across the company’s portfolio.

Net operating income rose by 6.6% to CAD 59.9 million, driven by increased revenue and controlled spending. However, income before income taxes decreased slightly to CAD 127.1 million from CAD 128.5 million in pcp. This was mainly because of higher finance costs, despite some support from fair value adjustments on investment properties. Net income for Q2 2024 also fell slightly to CAD 114.4 million from CAD 114.5 million in pcp.

Recent Business Update

KPM is set to unveil its financial results for 3Q 2024 on Nov 6, 2024. The results pertain to the financial period of six months ending September 30, 2024.

On September 16, 2024, the company declared its monthly dividend distribution. Unitholders will receive CAD 0.05833 per unit. This payment is slated to be made on October 15, 2024, to those on record as of September 27, 2024.

Company Outlook

For FY 2024, the REIT expects to maintain a healthy financial flexibility as it works toward its growth objectives. It anticipates achieving a minimum same-property net operating income (NOI) growth of over 6.0% for the year. Additionally, more than 38% of its NOI is expected to come from regions outside Atlantic Canada.

Top 10 Shareholders:

The top 10 shareholders of KPM hold about 26.09% of the total shares. RBC Global Asset Management Inc. has the largest stake at approximately 5.21%. BlackRock Institutional Trust Company, N.A. follows with around 4.16%.

Price Information

KPM's stock price has dropped by about 7.88% in the past month. However, it has surged by around 9.59% in the last three months. The stock is currently trading above the average of its 52-week high of CAD 21.72 and its low of CAD 15.36. The stock’s closing price is CAD 19.99 as of 15 Oct 2024.

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 October 15, 2024. The reference data in this report has been partly sourced from EODHD/Others.