OTCPK:KMMP.F

Stock Analysis Report

Killam Apartment Real Estate Investment Trust

Executive Summary

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating, managing and developing a $3.3 billion portfolio of apartments and manufactured home communities.


Snowflake Analysis

Established dividend payer and good value.

Share Price & News

How has Killam Apartment Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KMMP.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

KMMP.F

-0.07%

US REITs

-1.1%

US Market


1 Year Return

11.3%

KMMP.F

16.6%

US REITs

17.8%

US Market

Return vs Industry: KMMP.F underperformed the US REITs industry which returned 16% over the past year.

Return vs Market: KMMP.F underperformed the US Market which returned 18% over the past year.


Shareholder returns

KMMP.FIndustryMarket
7 Day0%-0.07%-1.1%
30 Day0%3.6%1.5%
90 Day2.1%6.9%6.6%
1 Year15.2%11.3%21.3%16.6%20.2%17.8%
3 Year92.9%69.5%37.4%20.2%47.5%38.1%
5 Year129.3%75.3%59.8%26.8%71.2%52.4%

Price Volatility Vs. Market

How volatile is Killam Apartment Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Killam Apartment Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

6.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KMMP.F ($15.13) is trading below our estimate of fair value ($16.26)

Significantly Below Fair Value: KMMP.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KMMP.F is good value based on its PE Ratio (7.6x) compared to the REITs industry average (37.2x).

PE vs Market: KMMP.F is good value based on its PE Ratio (7.6x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate KMMP.F's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KMMP.F is good value based on its PB Ratio (1.4x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Killam Apartment Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

9.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if KMMP.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if KMMP.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KMMP.F's revenue (9.5% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: KMMP.F's revenue (9.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KMMP.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Killam Apartment Real Estate Investment Trust performed over the past 5 years?

41.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KMMP.F has a large one-off gain of CA$248.7M impacting its December 31 2019 financial results.

Growing Profit Margin: KMMP.F's current net profit margins are higher than last year (80.7%).


Past Earnings Growth Analysis

Earnings Trend: KMMP.F's earnings have grown significantly by 41.1% per year over the past 5 years.

Accelerating Growth: KMMP.F's earnings growth over the past year (61.9%) exceeds its 5-year average (41.1% per year).

Earnings vs Industry: KMMP.F earnings growth over the past year (61.9%) exceeded the REITs industry 9.3%.


Return on Equity

High ROE: KMMP.F's Return on Equity (17.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Killam Apartment Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: KMMP.F has a high level of physical assets or inventory.

Debt Coverage by Assets: KMMP.F's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: KMMP.F's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if KMMP.F has a sufficient allowance for bad loans.

Low Risk Liabilities: KMMP.F reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if KMMP.F has an acceptable proportion of non-loan assets held.

Low Risk Deposits: KMMP.F has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if KMMP.F has an appropriate level of bad loans.


Next Steps

Dividend

What is Killam Apartment Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

3.02%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Killam Apartment Real Estate Investment Trust before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years3.0%

Current dividend yield vs market & industry

Notable Dividend: KMMP.F's dividend (3.02%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KMMP.F's dividend (3.02%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: KMMP.F's dividends per share have been stable in the past 10 years.

Growing Dividend: KMMP.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48%), KMMP.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KMMP.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.8yrs

Average management tenure


CEO

Philip Fraser (57yo)

19.8yrs

Tenure

CA$1,829,345

Compensation

Mr. Philip D. Fraser, B.Comm, MURP, MBA, has been Chief Executive Officer and Founding President at Killam Apartment Real Estate Investment Trust since May 2000 and serves as a Trustee since May 26, 2000.  ...


CEO Compensation Analysis

Compensation vs Market: Philip's total compensation ($USD1.38M) is below average for companies of similar size in the US market ($USD3.80M).

Compensation vs Earnings: Philip's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Philip Fraser
President19.8yrsCA$1.83m0.40% CA$6.9m
Dale Noseworthy
Chief Financial Officer2.8yrsCA$597.75k0.028% CA$483.1k
Robert Richardson
Executive VP & Trustee19.8yrsCA$903.38k0.11% CA$1.8m
Ruth Buckle-McIntosh
Senior Vice President of Property Management0.3yrsCA$503.17k0.041% CA$706.0k
Michael McLean
Senior Vice President of Development0yrsCA$483.52k0.030% CA$523.1k
Nancy Alexander
Vice President of Investor Relations & Sustainability0yrsno data0.0088% CA$152.7k
Jeremy Jackson
Vice President of Marketing14.3yrsno data0.023% CA$401.5k
Colleen McCarville
Vice President of Human Resources5.4yrsno data0.017% CA$291.3k
Erin Cleveland
Senior Vice President of Finance0yrsno data0.017% CA$295.1k
Ronald Barron
Corporate Secretary20.1yrsno datano data

9.8yrs

Average Tenure

Experienced Management: KMMP.F's management team is seasoned and experienced (9.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Philip Fraser
President19.8yrsCA$1.83m0.40% CA$6.9m
Robert Richardson
Executive VP & Trustee19.8yrsCA$903.38k0.11% CA$1.8m
Manfred Walt
Independent Trustee12.8yrsCA$83.50k0.063% CA$1.1m
James Lawley
Non-Executive Trustee19.8yrsCA$64.00k0.70% CA$12.2m
Timothy Banks
Non-Independent Trustee19.8yrsCA$81.00k0.21% CA$3.7m
Robert Kay
Non-Executive Chairman of the Board6.3yrsCA$102.00kno data
G. Watson
Independent Trustee19.8yrsCA$98.50k0.0059% CA$101.9k
Arthur Lloyd
Independent Trustee19.8yrsCA$80.50k0.018% CA$309.5k
Aldéa M. Landry
Independent Trustee2.3yrsCA$77.50k0.010% CA$175.1k
Karine MacIndoe
Independent Trustee5.9yrsCA$86.50k0.059% CA$1.0m

19.8yrs

Average Tenure

64yo

Average Age

Experienced Board: KMMP.F's board of directors are seasoned and experienced ( 19.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KMMP.F insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.1%.


Top Shareholders

Company Information

Killam Apartment Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Killam Apartment Real Estate Investment Trust
  • Ticker: KMMP.F
  • Exchange: OTCPK
  • Founded: 2000
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$2.298b
  • Market Cap: CA$1.668b
  • Listing Market Cap: CA$1.739b
  • Shares outstanding: 102.12m
  • Website: https://www.killamreit.com

Number of Employees


Location

  • Killam Apartment Real Estate Investment Trust
  • 3700 Kempt Road
  • Suite 100
  • Halifax
  • Nova Scotia
  • B3K 4X8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KMMP.FOTCPK (Pink Sheets LLC)YesTrust UnitsUSUSDDec 2000
KMP.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADDec 2000

Biography

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating, managing and developing a $3.3 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 03:41
End of Day Share Price2020/01/16 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.