Killam Apartment REIT (TSE:KMP.UN) Releases Earnings Results

Killam Apartment REIT (TSE:KMP.UN) issued its earnings results on Thursday. The company reported C$0.41 earnings per share (EPS) for the quarter, FiscalAI reports. Killam Apartment REIT had a return on equity of 12.07% and a net margin of 86.91%.The business had revenue of C$96.68 million during the quarter.

Here are the key takeaways from Killam Apartment REIT’s conference call:

• Killam reported strong Q1 results with net income of CAD 50.3M (including CAD 14.9M fair-value gains), same‑property apartment NOI +4%, same‑property revenue +3.6%, and AFFO +3.8% (AFFO/unit +4.3%), prompting management to raise the full‑year same‑property revenue target to above 3.5%.
• Spring leasing momentum is building: April trends point to a ~60 bps occupancy improvement, portfolio mark‑to‑market rose to 10% (Halifax 18%), and management sees continued demand in Atlantic Canada driven by defence, energy and infrastructure investment.
• Leverage and interest carry remain elevated—total debt is ~42.2% of assets and debt-to-normalized-EBITDA is 9.71x—and higher interest expense and refinancing headwinds (expected to ease by 2028) may constrain near‑term FFO flow‑through.
• Capital allocation is active: Killam repurchased >CAD 6M under its NCIB (DRIP suspended), raised its disposition target to CAD 150M (up to CAD 200M/yr), and completed Brightwood under budget (leasing ramp underway), signaling a shift to recycle non‑core assets into higher‑quality apartments and buybacks.

Killam Apartment REIT Stock Up 5.5%

Shares of KMP.UN traded up C$0.95 during trading on Thursday, reaching C$18.23. The company’s stock had a trading volume of 1,196,229 shares, compared to its average volume of 408,453. The company has a fifty day moving average of C$16.61 and a two-hundred day moving average of C$16.84. Killam Apartment REIT has a twelve month low of C$15.65 and a twelve month high of C$19.80. The company has a market cap of C$2.23 billion, a price-to-earnings ratio of 75.28 and a beta of 0.60. The company has a quick ratio of 0.03, a current ratio of 0.10 and a debt-to-equity ratio of 82.05.

Killam Apartment REIT Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 15th will be given a $0.06 dividend. This represents a c) dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date of this dividend is Thursday, April 30th. Killam Apartment REIT’s dividend payout ratio is presently 297.33%.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on KMP.UN. Royal Bank Of Canada decreased their price target on Killam Apartment REIT from C$22.00 to C$21.00 and set an “outperform” rating for the company in a report on Friday, February 13th. ATB Cormark Capital Markets decreased their price target on Killam Apartment REIT from C$21.00 to C$20.00 and set an “outperform” rating for the company in a report on Friday, February 13th. Raymond James Financial decreased their price target on Killam Apartment REIT from C$20.25 to C$20.00 and set an “outperform” rating for the company in a report on Friday, February 13th. Finally, TD Securities decreased their price target on Killam Apartment REIT from C$21.00 to C$20.00 and set a “buy” rating for the company in a report on Friday, February 13th. Five analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, Killam Apartment REIT presently has a consensus rating of “Moderate Buy” and a consensus price target of C$20.00.

About Killam Apartment REIT

Killam Apartment Real Estate Investment Trust is an open-ended mutual fund trust. The company specializes in the acquisition, management, and development of multi-residential apartment buildings and manufactured home communities (MHC). It has three main operating segments, Apartment segment, MHC segment, and Commercial segments. Apartment segment acquires, operates, manages and develops multi-family residential properties across Canada. MHC segment acquires and operates MHC communities in Ontario and Eastern Canada, and Commercial segment includes more than seven commercial properties.