KCR Residential REIT PLC

KCR Residential REIT PLC maintains a capital structure characterized by significant leverage, with long-term debt of £14.14 billion against total equity of £12.65 billion, resulting in a debt-to-equity ratio of 1.12. The company holds total assets of £27.31 billion and total liabilities of £14.66 billion. Liquidity is assessed as medium, supported by a current ratio of 1.32, though the risk assessment flags that net cash is negative after subtracting total debt. Operating cash flow stands at -£800.12 million, while free cash flow is reported at £404.01 million, indicating a divergence between operating performance and cash generation after capital adjustments.

Profitability metrics reveal thin returns relative to the capital base. Return on equity is 2.59%, and return on assets is 1.20%. The company reports revenue of £1.89 billion, gross profit of £1.19 billion, and operating income of £990.01 million. Net income is £327.64 million. Valuation multiples are elevated, with a price-to-earnings ratio of 1,093.76, a price-to-book ratio of 28.33, and an EV/EBITDA of 376.25. These high multiples suggest that current earnings are depressed relative to the market capitalization of £358.36 million, or that the earnings base is not representative of normalized operational capacity.

Revenue concentration and geographic exposure details are not provided in the available data. The company operates within the Residential REITs industry, implying a focus on long-term residential leases, but specific segment breakdowns or regional revenue mixes are absent from the current snapshot.

Growth trajectory analysis is limited by the absence of historical period data. The latest financial snapshot shows revenue of £1.89 billion, but without prior year or quarterly trend data, year-over-year growth rates cannot be calculated. The analyst estimate for last actual revenue is noted as £266,000, which appears to be a partial or specific line item rather than total revenue, given the discrepancy with the reported £1.89 billion revenue figure.

Risk factors include medium liquidity risk and low dilution risk. The key flag indicates negative net cash after debt subtraction, highlighting reliance on debt financing. The high debt-to-equity ratio of 1.12 exposes the company to interest rate sensitivity and refinancing risks. Dilution risk is assessed as low, with basic and diluted shares outstanding both at 41.67 million, indicating no significant options or convertible securities impacting share count.

Recent observations include an analyst estimate for revenue of £266,000. No specific filing, news, or transcript observations are provided in the input data. The company's market price is £8.60 per share.

Capital expenditure to revenue ratio is zero, ranking in the top quartile for efficiency.

Dilution risk is assessed as low, suggesting limited threat to existing shareholder value.

Debt-to-equity ratio of 1.12 places the company in the bottom quartile of its peer group.

Credit risk is flagged as high, indicating significant potential for financial distress or default.

Cash conversion ratio of -2.44 ranks in the bottom quartile, signaling poor cash generation.

Liquidity risk is rated as medium, posing potential challenges for meeting short-term obligations.

Revenue £1.9M, +5,0% YoY; Operating income +259,0% YoY.

• ▍Revenue £1.9M, +5,0% YoY
• ▍Operating income +259,0% YoY
• ▍Net income +127,6% YoY
• ▍Free cash flow +135,1% YoY
• ▍Net margin 17.4%

Revenue £1.8M, +14,0% YoY; Operating income −265,6% YoY.

• ▍Revenue £1.8M, +14,0% YoY
• ▍Operating income −265,6% YoY
• ▍Net income −613,9% YoY
• ▍Free cash flow −265,9% YoY
• ▍Net margin -66.0%