Killam Apartment Reit · TSX:KMP.UN
Killam Apartment Reit — Q1 2017 Earnings Presentation
36 slides from Killam Apartment Reit's earnings presentation, May 5, 2017
Slide 1: Killam Apartment REIT Q1-2017 Results Conference Call
Killam Apartment REIT Q1‐2017 Results Conference Call May 5, 2017 1pm Eastern 1
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 Q1-2017
Highlights Highlightsfrom fromQ1‐2017 Q4-2015 • Generated funds from operations (FFO) per unit of Q1 FFO & AFFO* $0.19, a 5.6% increase from $0.18 in Q1‐2016. Per Unit • Adjusted funds from operations (AFFO) of $0.14, a Q1‐2015 Q1‐2016 Q1‐2017 7.7% increase from Q1‐2016. • Increased same property re
Slide 4: Balance Sheet Highlights
Balance Sheet Highlights Highlights from Q4-2015 Interest Coverage Ratio Liquidity Debt as a Percentage of Assets 2.82 2.74 56.5% 60 53.5% 2.34 2.21 51.9% 50 50.9% 40 $ million 30 20 10 * Forecast to show the impact of redeeming $46 million of convertible debentures on April 13, 2017. 0 Acquisition
Slide 5: 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 6: Increasing Revenues to Grow NOI
Increasing Revenues Killam Apartment to Grow NOI REIT Revenue Historic Same Property 1.6% revenue growth in Revenue Growth Growth Halifax. Rents up 1.5%, with highest 2.2% + 1.9% 1.8% 1.8% 1.7% rental rate growth achieved 1.4% Expense in Ontario (2.7%), Management Fredericton (2.4%) and = Halifa
Slide 7: Managing Expenses to Grow NOI
Managing Expenses Killam Apartment to Grow NOI REIT Revenue Growth • Energy initiatives + • Water saving programs Expense • Maximizing economies of scale. Management = Increased NOI 7
Slide 8: 1.8% NOI Growth in Q1-2017
1.8% NOI Growth in Q1‐2017 2017 Same Property Performance Revenue Growth NOI Growth 8.0% 3.4% 1.9% 2.1% 2.4% 1.6% 0.2% 0.9% 0.6% (0.5%) (1.2%) (1.6%) (2.0%) (1.3%) (2.0%) (4.5%) (4.1%) (11.8%) 8
Slide 9: Population Growth in Halifax
Population Growth in Halifax Historical Population Growth and Source, Halifax Annually from July 1 ‐ June 30 10,000 8,000 6,000 4,000 2,000 0 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 2013‐14 2014‐15 2015‐16 ‐2,000 Natural Growth International Interprovincial Intraprovincial To
Slide 10: Mortgage Maturities and Interest Expense Savings
Interest Expense Savings Mortgage Maturities by Year As at March 31, 2017 Mortgage Maturities Weighted Average Interest Rate (Apartments) 5 year rate 10 year rate $225 8% 7% Mortgage Maturities ($M) $175 6% Interest Rate $125 5% 3.73% 3.72% 3.28% 4% 2.91% 3.09% 3.00% $75 2.59% 2.62% 3% 2% $25 1% ‐$2
Slide 11: 2016 Acquisitions: Spruce Park 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 12: 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 13: William's Court, Ottawa
a se) = =, che heen? & EL se 25 SE Ls © ES o< OF ou a4 s = iam’s Court W
Slide 14: William's Court, Ottawa
William’s Court Ottawa
Slide 15: William's Court, Ottawa
William’s Court Ottawa mea vl l a al Le : ul u i i un 1 oo Om
Slide 16: William's Court, Ottawa
William’s Court Ottawa 16
Slide 17: William's Court, Ottawa
William’s Court Ottawa = no _om Sm ~ on
Slide 18: Kanata Lakes Picture
William’sLakes Kanata Court Picture Ottawa
Slide 19: Kanata Lakes Picture
William’sLakes Kanata Court Picture Ottawa
Slide 20: William's Court, Ottawa
— — William’s Court ) Ottawa ae)
Slide 21: William's Court, Ottawa
. =< bs William’s Court ~ Ottawa
Slide 22: William's Court, Ottawa
» William’s Court Ottawa
Slide 23: William's Court, Ottawa
William’s Court Ottawa
Slide 24: William's Court, Ottawa
William’s Court Ottawa
Slide 25: Gloucester City Centre (Phase 1), Ottawa
Gloucester City Centre (Phase 1), Ottawa Rental Units: 222 units Ownership: Killam 50%, Partners 50% Start Date: Q2‐2017 Projected Completion: mid‐2019 Location: Ottawa’s East End, adjacent Ottawa’s Light Rail Transit (LRT) Blair Station. Cost: $36 million (Killam’s cost) ($327,000/ residential door
Slide 26: Existing SilverCity Cineplex and Parking Lot
EXISTING SILVERCITY CINEPLEX AND PARKING LOT PARK PLAYGROUND FUTURE GREENSTREET ‘TREATMENT AND ‘CYCLING TRACK PARK PERGOLA + PLAZA TO BLAIR STATION SHADE STRUCTURE FUTURE MULTI-USE FUTURE PATHWAY CONNECTION TO BLAIR LRT STATION TRANSITWAY Lane APARTMENT REIT
Slide 27: 27
27
Slide 28: 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 29: The Alexander construction photo
Slide 30: ‘i om Oo =e oo oA |
AA ‘i om Oo =e 0 oo oA | Mi He ch 3 I FARE =F |
Slide 31: Killa. CONG “ewe
rae) 2 Killa. CONG “ewe Iw
Slide 32: Construction interior photo
Slide 33: Future Developments: Saginaw Park, Cambridge
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 34: 34
34
Slide 35: wee
wee i mV SeRNS
Slide 36: Killam Apartment REIT Q1-2017 Results Conference Call
KILLAM APARTMENT REIT Q1‐2017 Results Conference Call May 5, 2017 1 pm Eastern
Killam Apartment REIT — Q1 2017 Earnings Presentation on 6ix