Killam Apartment Reit · TSX:KMP.UN
Killam Apartment Reit — Killam Apartment Real Estate Investment Trust — Q4 2024 Earnings Presentation
21 slides from Killam Apartment Reit's earnings presentation, Feb 13, 2025
Slide 1: 2024 Results Conference Call
2024 Results Conference Call February 13, 2025 | 9:00am EDT 1
Slide 2: Cautionary Statement
Cautionary Statement This presentation may contain forward-looking statements with respect to Killam Apartment REIT ("Killam") and its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward-looking words such as "may", "will", "expec
Slide 3: 2024 Total Portfolio Results
2024 | Total Portfolio Results NOI Contribution by Market (%) as at December 31, 2024 . Apt 3.0% 2024 Same Property Comm 1.6% PEI 4.6% NOI Growth . Apartment Apt 4.1% 8.5% MHC 0.2% NL 4.3% MHC 7.5% Commercial . Apt 28.0% 6.3% Apt 3.6% MHC 2.4% . BC 3.6% Comm 1.5% NS 31.9% Apt 20.8% Apt 19.7% . . MHC
Slide 4: Successful Performance Against Strategic Targets
2024 | Successful Performance Against Strategic Targets 2024: Grow same property NOI by minimum 8% TARGET MET 2025: Grow same property NOI by 4%-7% Killam achieved same property NOI growth of 8.4% in 2024. TARGET MET 2024: Sell a minimum of $50 million of non-core assets Killam completed 10 disposit
Slide 5: Financial Highlights
2024 | Financial Highlights $364.6M $1.18 8.4% 71% 40.4% Property Revenue FFO per Unit (1) Same Property AFFO payout Total Debt as a % NOI Growth(2) ratio(3)(4) of Total Assets (5) 4.7% increase from 2.6% increase from $1.15 includes a 6.0% increase A 100-basis point A 250-basis point $348.2 million
Slide 6: FFO Growth
2024 | FFO Growth Q4 FFO & AFFO Per Unit Annual FFO & AFFO Per Unit Q4-2024 Q4-2023 2024 2023 $0.29 $0.28 $0.25 $0.23 $1.18 $1.15 $0.99 $0.97 FFO AFFO FFO AFFO COMPLETE LEASE UP INITIAL
Slide 7: Continued Top Line Growth
2024 | Continued Top Line Growth Apartments Same Property Rental Rate Growth by Quarter Upon Lease Renewal For tenants with lease renewals in For new tenants moved in during Upon Unit Turn Q4, rents increased by 4.4%. Q4, rents increased 19.5%. 25% Combined Average Increase % 20% 15% 8.2% 7.9% 7.7%
Slide 8: Effective Cost Containment
2024 | Effective Cost Containment Same property operating expenses increased by 1.7% in 2024 Lower gas prices in the first half of the year contributed to a 5.0% reduction in utility and fuel expenses. The uptick in property taxes was due to higher assessments and mill rates across the portfolio
Slide 9: Debt Ladder
2024 | Debt Ladder Apartment Mortgage Maturities by Year As at December 31, 2024 Mortgage Maturities ($) 5 year estimated CMHC-insured rate 10 year estimated CMHC-insured rate Weighted average interest rate (apartments) $450 5% $400 Weighted Avg Apartment 3.45% 4% Mortgage Interest Rate $350 $300 3.
Slide 10: Conservative Debt Metrics for Enhanced Flexibility
2024 | Conservative Debt Metrics for Enhanced Flexibility Total Debt as a % of Assets(3) 55% 45% 40.4% 35% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Debt to Normalized EBITDA(2) 10.78 11.33 11.21 10.29 9.69 2020 2021 2022 2023 2024 Latitude – Ottawa, ON 1) 2) Debt to normalized EBITDA i
Slide 11: Mark-to-Market Against Turnover by Region
2024 | Mark-to-Market Against Turnover by Region Estimated Total Mark-to-Market Opportunity 50% 40% 28% 28% 28% 30% 25% 25% 25% 22% 17% 18% 20% 15% 10% 0% Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Estimated Mark-to-Market Spread by Region 3% 25% 22% 16% 15% 15%
Slide 12: Tenure Length of Turned Units
2024 | Tenure Length of Turned Units In 2024, approximately 50% of units that turned were tenants who had been in their unit for only 1 year. 0-1 year 1-2 years 2-4 years 4-6 years Over 6 years 100% 75% 50% 25% 0% 2019 2020 2021 2022 2023 2024 12
Slide 13: Rental Supply Landscape
2024 | Rental Supply Landscape Apartment Completions (1) as a Percentage of Existing Rental Inventory (2) 2023 2024 10 yr Average 12% 10% 8% 6% 4% 2% 0% Halifax Moncton Fredericton Saint John London KWC Toronto Ottawa Calgary Edmonton St. John's Victoria Killam’s Portfolio Distribution by Monthly Re
Slide 14: Capital Investments for Competitive Advantage
2024 | Capital Investments for Competitive Advantage Before & After – Spring Garden Terrace 2024 Resident Survey Results 78% of residents are pleased with the value for their money. 87% 89% are happy with are likely to the physical recommend condition of Killam to a their friend or family apartment.
Slide 15: Capital Recycling: Key Part of the Strategy
2024 | Capital Recycling: Key Part of the Strategy Recycling capital amd divesting of slow growth assets while focusing on Killam’s development program and strengthening its balance sheet are key components of Killam’s strategy. 2024 Dispositions Sale Price Property Location Disposition Date Units (
Slide 16: Geographic Repositioning through Dispositions
2024 | Geographic Repositioning through Dispositions Total Sales Value and Units Sold by Region 1% ($ 000’s) NS PEI ON NB AB Nova Scotia PEI 21% $200,000 Dispositions Ontario $150,000 based on $228M (1) New Brunswick $100,000 Alberta $50,000 $0 2023 2024 2025F (1) Total dispositions completed in 202
Slide 17: Development Underway: The Carrick – Waterloo, ON
2024 | Development Underway: The Carrick – Waterloo, ON The Carrick – Model suite Progress Shot – Jan 2025 Number of units 139 Start date Q2-2022 Est. completion date June 2025 Project budget $89.1M Cost per unit $641,000 Expected yield(1) 4.00%-4.25% Avg rent $2.75-$3.00 per SF Avg unit size 800 SF
Slide 18: Development Underway: Eventide – Halifax, NS
2024 | Development Underway: Eventide – Halifax, NS Project Rendering Number of units 55 Start date Q1-2024 Est. completion date 2026 Project budget $34.7M Cost per unit $631,000 Expected yield 4.50%-5.00% Avg rent $3.50-$3.75 per SF Avg unit size 765 SF Development Site –Jan 2025 18
Slide 19: Development Underway: Wissler – Waterloo, ON
2024 | Development Underway: Wissler – Waterloo, ON Construction Progress – January 2025 Number of units 128 Start date Q4-2024 Est. completion date 2026 Project budget $57.0M Cost per unit $445,000 Expected yield 5.00%-5.50% Avg rent $3.20-$3.30 per SF Avg unit size 744 SF Project Rendering 19
Slide 20: Non-IFRS Measures
Non-IFRS Measures Management believes the following non-IFRS financial measures, ratios and supplementary information are relevant measures of the ability of Killam to earn revenue and to evaluate Killam's financial performance. Non-IFRS measures should not be construed as alternatives to net income
Slide 21: 2024 Results Conference Call
2024 Results Conference Call 21
Killam Apartment Real Estate Investment Trust — Q4 2024 Earnings Presentation on 6ix