Killam Apartment REIT T.KMP.UN

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National Bank’s Matt Kornack moved his target for units of Killam Apartment REIT to $21.75 from $21.50 with an “outperform” rating. Other changes include: Raymond James’ Brad Sturges to $21.50 from $22.25 with a “strong buy” rating and Desjardins Securities’ Kyle Stanley to $21 from $22 with a “buy” rating. The average is $21.88.

“KMP’s Q4 print saw sustained operating performance, notwithstanding some noise from temporary vacancies and lease-up,” said Mr. Kornack. “While leasing spread figures decelerated slightly, they are still significantly ahead of historical averages, and we expect this may be the best print in the apartment space again on this metric as Atlantic Canada continues to hold up well. To that end, KMP’s 2025 target for SPNOI of 4-7-per-cent growth (5-6 per cent on revenues vs. 6 per cent in 2024) speaks to visibility into reasonably strong market performance in the face of moderating fundamentals. On capital recycling, KMP is targeting $100-150-million in 2025 dispositions, which should high-grade the portfolio, with proceeds likely to be used for purchases under the NCIB.”