Killam Apartment Reit · TSX:KMP.UN
Killam Apartment Reit — Q2 2014 Earnings Presentation
17 slides from Killam Apartment Reit's earnings presentation, Aug 7, 2014
Slide 1: Q2 2014 Results Conference Call
Q2 2014 Results Conference Call August 7, 2014 10 am Eastern
Slide 2: Cautionary Statement
Cautionary Statement This presentation may contain forward-looking statements with respect to Killam Properties Inc. and its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward-looking words such as “may”, ”will”, “expect”, “estim
Slide 3: Highlights from Q2 2014
Highlights from Q2 2014 • Generated funds from operations per share of $0.19 compared to $0.18 during Q2 2013. • Increased same store revenue by 2.2%. • Increased same store NOI by 1.3%. • Completed an $18.6 million acquisition. • Reduced the weighted average interest rates on mortgage debt to 3.85%
Slide 4: Same Store NOI
Same Store NOI Same Store Results 3 months ended June 30, 2014 Revenue Expenses NOI 6.6% 3.7% 4.0% 3.3% 1.9% 2.2% 1.3% 0.7% 0.0% Apartments MHCs Consolidated 4
Slide 5: Same Store NOI
Same Store NOI Same Store Results 6 months ended June 30, 2014 Revenue Expenses NOI 7.9% 7.3% 4.6% 3.3% 1.6% 1.4% 1.7% (2.6%) (3.4%) Apartments MHCs Consolidated 5
Slide 6: Cost of Natural Gas in Nova Scotia & New Brunswick
$10 $15 $20 $25 $5 $- Jan-12 $6 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 $12 Jan-13 Nova Scotia Feb-13 $10 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Increased Natural Gas Costs Aug-13 Sep-13 New Brunswick Oct-13 (Commodity Charge per GJ) Nov-13 Dec-13 Jan-14 $23 Feb-14 $
Slide 7: Same Store Revenue Growth
Same Store Revenue Growth Same Store Quarterly Revenue Growth 5% 4% 3% 2% 1% 0% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q1 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 7
Slide 8: Occupancy of 95.4% at June 30, 2014
Occupancy of 95.4% at June 30, 2014 Killam's Apartment Occupancy Levels at Quarter-end 2011 - 2014 100% 98% 96% 94% 92% 90% 88% 86% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 8
Slide 9: Increased Incentive Offerings
Increased Incentive Offerings Incentives as a Percentage of Rental Revenue 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 9
Slide 10: Occupancy by Market
Occupancy by Market Quarter-Over-Quarter Occupancy Jun-13 Jun-14 98% 96% 94% 92% 90% 88% 86% 10
Slide 11: Interest Expense Savings
Interest Expense Savings Current rate for 10-year CMHC insured debt is approximately 3.2%. Current rate for 5- year CMHC insured debt is approximately 2.6%. 11
Slide 12: Chelsea Place Development
Chelsea Place Development Building Description: 102 units, two buildings, wood frame construction with concrete floor toping Start Date: October 2013 Projected Completion: Summer 2014 Location: Adjacent Killam’s recently completed Bennett House, St. John’s, Newfoundland Construction Cost: $21.4 mill
Slide 13: Chelsea Place Development
Chelsea Place Development 13
Slide 14: Saginaw Gardens Development
Saginaw Gardens Development Building Description: 122 units, 7 storeys, concrete construction Start Date: December 2013 Projected Completion: Spring 2015 Location: 650 Saginaw Parkway, Cambridge, Ontario Construction Cost: $25.3 million, $207,000/door Building Features: Open concept with condo quali
Slide 15: Saginaw Gardens, Cambridge
Saginaw Gardens Development Saginaw Gardens, Cambridge 15
Slide 16: Land for Future Developments
Land for Future Developments Development Size Potential in Property Location (sqare feet) Units Developments Opportunities - 2015 1057 Barrington Street Halifax, NS 32,310 71 Block 4 St. John's, NL 108,900 80 Saginaw Phase II Cambridge, ON 226,076 122 Spring Garden Terrace Land Halifax, NS 19,602 98
Slide 17: Q2 2014 Results Conference Call
Q2 2014 Results Conference Call August 7, 2014 10 am Eastern
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