KCR Residential REIT (LSE:KCR) Beneish M-Score: 0.76 (As of Jul. 25, 2026)

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What is KCR Residential REIT Beneish M-Score?

KCR Residential REIT LSE:KCR Beneish M-Score is 0.76 as of Jul. 25, 2026. The stock has 2 warning signs investors should review. Among 754 REITs companies, KCR Residential REIT ranks worse than 95.36% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 0.76 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for KCR Residential REIT's Beneish M-Score or its related term are showing as below:

LSE:KCR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.65   Med: -1.69   Max: 3.62
Current: 0.76

During the past 12 years, the highest Beneish M-Score of KCR Residential REIT was 3.62. The lowest was -3.65. And the median was -1.69.

KCR Residential REIT Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of KCR Residential REIT for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 1.003+0.892 * 4.3051+0.115 * 0.6844
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.2473+4.679 * 0.041302-0.327 * 0.9944
=0.76

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun25) TTM:Last Year (Jun24) TTM:
Total Receivables was £0.00 Mil.
Revenue was £2.39 Mil.
Gross Profit was £2.39 Mil.
Total Current Assets was £0.00 Mil.
Total Assets was £27.31 Mil.
Property, Plant and Equipment(Net PPE) was £0.09 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.08 Mil.
Selling, General, & Admin. Expense(SGA) was £1.78 Mil.
Total Current Liabilities was £0.00 Mil.
Long-Term Debt & Capital Lease Obligation was £14.14 Mil.
Net Income was £0.33 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-0.80 Mil.
 Total Receivables was £0.00 Mil.
Revenue was £0.55 Mil.
Gross Profit was £0.55 Mil.
Total Current Assets was £0.00 Mil.
Total Assets was £26.71 Mil.
Property, Plant and Equipment(Net PPE) was £0.17 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.08 Mil.
Selling, General, & Admin. Expense(SGA) was £1.67 Mil.
Total Current Liabilities was £0.00 Mil.
Long-Term Debt & Capital Lease Obligation was £13.90 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 2.385) / (0 / 0.554)
=0 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(0.554 / 0.554) / (2.385 / 2.385)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 0.091) / 27.311) / (1 - (0 + 0.168) / 26.711)
=0.996668 / 0.99371
=1.003

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=2.385 / 0.554
=4.3051

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0.076 / (0.076 + 0.168)) / (0.076 / (0.076 + 0.091))
=0.311475 / 0.45509
=0.6844

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1.78 / 2.385) / (1.672 / 0.554)
=0.746331 / 3.018051
=0.2473

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((14.136 + 0) / 27.311) / ((13.904 + 0) / 26.711)
=0.517594 / 0.520535
=0.9944

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(0.328 - 0 - -0.8) / 27.311
=0.041302

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

KCR Residential REIT has a M-score of 0.76 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of 0.76 mean?
KCR Residential REIT (LSE:KCR) has a Beneish M-Score of 0.76 as of Jul. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on KCR Residential REIT and its competitors. According to the industry distribution chart, KCR Residential REIT ranks #719 out of 754 companies in the REITs industry, placing it in the top 95.4%.
Is KCR Residential REIT's Beneish M-Score too high?
KCR Residential REIT's current Beneish M-Score is 0.76. Based on the distribution chart, KCR Residential REIT ranks #719 out of 754 companies in the REITs industry, which is in the bottom quartile relative to peers.
How does KCR Residential REIT's Beneish M-Score compare to AVB and EQR?
According to the REITs industry distribution chart, KCR Residential REIT ranks #719 out of 754 companies for Beneish M-Score. This places KCR Residential REIT in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a REITs company?
A good Beneish M-Score depends on the REITs industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on KCR Residential REIT and its competitors. KCR Residential REIT's current Beneish M-Score is 0.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KCR Residential REIT stock overvalued right now?
Based on GuruFocus' analysis, KCR Residential REIT (LSE:KCR) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.10, compared to a current price of £0.09 — trading 14% below its estimated fair value. The current Beneish M-Score is 0.76. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For KCR Residential REIT (LSE:KCR), the current Beneish M-Score is 0.76 as of Jul. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

KCR Residential REIT Business Description

Industry Real EstateREITs
Address c/o Gladstone House, 77-79 High Street, Egham, Surrey, GBR, TW20 9HY
KCR Residential REIT PLC is a real estate investment trust focused on the business of acquiring, developing and managing residential property predominantly for letting to third parties on long and short leases. The company's objective is to acquire and manage a substantial rented residential property portfolio in the UK that generates both income flow and capital appreciation for shareholders. The company holds various residential portfolios including the Cristal Apartments and a freehold portfolio of retirement homes called the Osprey portfolio. It generates the majority of its revenue from rental income.