Opinions Andy Nasr
Killam Properties IncKMP.UN.TOCOMMENTJul 02, 2015
Andy NasrStock price when the opinion was issued
As of Jun 10, 2026. Market Open.
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Very well managed. Company size is in the top 5. Originally focused on the Maritimes, which has seen a lot of population inflows. Expanding into other markets in Ontario such as Kitchener-Waterloo. Likes that they're experienced developers, always improving. Energy-efficient, new construction. Not facing high-rent pressures of others.
Derek WarrenNow trading at an interesting level, over 15% discount to NAV. Fallen perhaps because of announcement on immigration being curtailed. 60% of portfolio in Atlantic Canada, actively diversifying in Ontario and BC. Likes that 44% of assets are not subject to rent control. Expecting results to be good. Stay the course.
Andrew Moffs
KMP.un's second-quarter funds from operations (FFO) per unit came in at $0.30, an increase of 7.1% year-over-year. The company reported a net income of $114.5 million, against $68.7 million reported in the second quarter of 2022, beating estimates by a wide margin ($30.4 million). The jump was attributed to $96.2 million of fair value gains on investment properties in the period. KMP generated a net operating income of $56.2 million, an 8.8% increase from 2Q22. The rolling 12-month adjusted FFO payout ratio shrank by a full 2% to 73% in the recent quarter. Same-property net operating income growth came in at 7.9%, matching the management target. We think it was a decent quarter and management spoke about market rent growth in certain areas and a focus on development and disposition of assets.
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Paul Gardner, CFA
Stockchase DiscoverBilly Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The recent property acquisition was well received by the market. The $190M purchase looks good and 5i likes the expansion into Ontario to diversify the business. Occupancy rate is high at 98% and average rent is $1,200. Unlock Premium - Try 5i Free
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Michelle Wearing
Sell Killam Properties and buy Pure Multi Family REIT? He likes this at these levels. It sold off quite significantly. The largest owner of apartment properties in Atlantic Canada. Pure Multi Family is largely a portfolio of apartment buildings in Texas. These are 2 very, very different entities. In Atlantic Canada there are no rent controls, and given that there are some signs that the economy should eventually improve, especially when there is a ship building contract and more favourable supply/demand fundamentals, he feels that this should do quite well over time. Management is keenly focused on development and trying to rebalance its portfolio, so that 50% of its operating income comes from Atlantic Canada and 50% comes from Ontario and Western Canada. As it diversifies you should get a little bit more cash flow stability and dividend growth. Prefers this one out of the 2.