Slide 1: Killam Apartment REIT Q4-2016 Results Conference Call
KILLAM APARTMENT REIT Q4‐2016 Results Conference Call Feb 15, 2017 10 am Eastern
Slide 2: Cautionary Statement
Cautionary Statement This presentation may contain forward‐looking statements with respect to Killam Apartment REIT 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”, “estima
Slide 3: Highlights from Q4-2016
Highlights Highlightsfrom fromQ4‐2016 Q4-2015 • Generated funds from operations (FFO) per unit of Q4 FFO & AFFO $0.21, a 5.0% increase from $0.20 in Q4‐2015. Per Unit • Adjusted funds from operations (AFFO) of $0.19, an Q4‐2014 Q4‐2015 Q4‐2016 11.8% increase from Q4‐2015. $0.21 • Increased same prop
Slide 4: Highlights from 2016
Highlights Highlightsfrom from2016 Q4-2015 • Generated FFO per Unit of $0.86, 8.9% higher than FFO per Unit For the years ended Dec 31 $0.79 in 2015. $0.86 • Increased same property rental revenue by 1.8%. • Achieved same property NOI growth of 4.0%. $0.79 $0.71 $0.71 $0.72 Same Property Portfolio P
Slide 5: Highlights from 2016
Highlights Highlightsfrom from2016 Q4-2015 • Improved the AFFO payout ratio to 78%, from 88% in 2015. AFFO and AFFO Payout Ratio • Invested $24 million in developments in 2016 and completed Southport Apartments, Killam’s 8th $0.85 110% development. $0.80 98% 97% 98% $0.77 100% • Completed $72 millio
Slide 6: Highlights from 2016
Highlights Highlightsfrom from2016 Q4-2015 • Strengthened balance sheet with reduced debt levels and increased capital flexibility with expanded line of credit. Liquidity Acquisition As at Dec 31 capacity of over Debt as a % of Total Interest Coverage Ratio $110 million at Assets For the year ended
Slide 7: Killam's Strategy for Growth
Killam’s Killam Strategy for Apartment REITGrowth Killam’s strategy is to maximize its value and long‐term profitability by concentrating on three key areas of growth: #1 #2 #3 Increasing earnings from its Expanding the portfolio and Developing high‐quality existing portfolio diversifying geographic
Slide 8: Increasing Revenues to Grow NOI
Increasing Revenues Killam Apartment to Grow NOI REIT Historic Same Property Revenue Growth Revenue Improved occupancy Growth 2.2% Growing rental rates 1.9% 1.8% 1.8% 1.7% + Capital upgrades Expense Quality product & service Management 90% tenant satisfaction = rating Increased NOI Apartme
Slide 9: Managing Expenses to Grow NOI
Managing Expenses Killam Apartment to Grow NOI REIT Same Property NOI Growth 2012-2016 Revenue • Energy initiatives Average Growth of 1.8% Growth • Water saving programs 4.2% + • Maximizing economies of 4.0% Expense scale 2.0% Management • Employee training • Investment in technology (0.9%) (0.4%) =
Slide 10: 4.0% NOI Growth in 2016
4.0% NOI Growth in 2016 2016 Same Property Performance Revenue Growth NOI Growth 6.9% 5.6% 5.1% 3.9% 3.3% 3.0% 2.5% 2.7% 2.2% 2.0% 2.3% 1.5% 0.7% (1.3%) 0.8% (1.3%) (12.9%) (18.0%) 10
Slide 11: Population Growth Drivers in Halifax
Population Growth Drivers in Halifax Source: Stats Canada 11
Slide 12: 2016 Acquisitions
2016 Acquisitions 5‐building Garden ParkLondon OntarioHalifax Apartments, Portfolio Description: 153 units 113 units at the 3‐building property Bellwood Terrace 23 units at Fairview Place 17 unit at Trafalgar Place Average rent: $731 Location: Bellwood Terrace – 960,970 & 980 Cheapside Street Fairvi
Slide 13: The Alexander, Halifax
The Alexander, Halifax Rental Units: 240 units, 6,500 sf of retail space Ownership: Killam 50%, Partners 50% Start Date: Q3‐2015 Projected Completion: Q1‐2018 Location: Downtown Halifax across from the waterfront Cost: $35 million (Killam’s cost) ($278,000/ residential door) Expected Yield: 5.5% Exp
Slide 14: The Alexander, Halifax
The Alexander, Halifax 14
Slide 15: The Alexander, Halifax
The Alexander, Halifax 15
Slide 16: The Alexander, Halifax
The Alexander, Halifax 16
Slide 17: Future Developments: Saginaw Park, Cambridge, ON
Future Developments Saginaw Saginaw 2,Park, Cambridge Cambridge, ON Rental Units: 93 units Start Date: Q3‐2016 Projected Completion: Q2‐2018 Location: Adjacent Saginaw Gardens, Saginaw Parkway, Cambridge Cost: $25.1 million ($269,000/door) Expected Yield: 5.5% Expected Value: 4.75% cap rate Average
Slide 18: Future Developments: Saginaw Park, Cambridge, ON
Future Developments Saginaw Saginaw 2,Park, Cambridge Cambridge, ON 18
Slide 19: 2016 Acquisitions: Spruce Grove Apartments, Calgary
2016 Acquisitions Spruce GardenGrove Apartments,Halifax Park Apartments, Calgary Description: 66 townhouse‐style apartments on 3‐acre lot All 2‐bedroom, 1,150 sf units 44 two‐storey units 22 one‐storey units Average rent = $1,110 (CMHC reports average 2‐bedroom rent of $1,270 in the neighbourhood in
Slide 20: Kanata Lakes Apartments, Ottawa
Kanata Lakes Apartments, Ottawa Description: 268 units over two buildings 4th and 5th of a five‐building portfolio with a shared clubhouse, completed in 2015 and 2016. Average rent = $2,160 Current occupancy = 96% leased Location: 1203 Maritime Way 985 Great Lakes Avenue Acquisition Details: $49.3 m
Slide 21: Kanata Lakes Apartments, Ottawa
Kanata Lakes Apartments, Ottawa 21
Slide 22: Killam Apartment REIT
KILLAM APARTMENT REIT Q4‐2016 Results Conference Call Feb 15, 2017 10 am Eastern