Q: Can you comment on Killam’s recent quarterly results and how they compared with street expectations please. Also how do they compare to similar sized peers like inter rent? Is it a good buy for the multi-residential space? And what do you think of adding to this space now in the macro cycle? Thanks
5i Research Answer:
Cash flow of 25c per unit matched estimates; revenue of $50.8M did miss estimates. EBITDA was 9% ahead of forecasts. Same property Net operating income rose 6.3%. Property revenue rose 9.6%. Cash flow per unit rose 4%. Payout ratio dropped two points to 74%. Overall, it compares quite well to peers, but at 16X cash flow it is also more expensive than many. It is up marginally over one year and considering rates and inflation it has held up well. With rates soon to peak (probably, not guaranteed) we would be OK buying some for income.