Killam Apartment Reit · TSX:KMP.UN
Killam Apartment Reit — Q3 2016 Earnings Presentation
26 slides from Killam Apartment Reit's earnings presentation, Nov 2, 2016
Slide 1: Killam Apartment REIT Q3-2016 Results Conference Call
KILLAM APARTMENT REIT Q3‐2016 Results Conference Call Nov 2, 2016 10 am EST
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 Q3-2016
Highlights fromQ4-2015 Highlights from Q3‐2016 • Generated FFO per unit of $0.24, consistent with $0.24 in Q3-2015. • Rolling 12 month AFFO payout ratio of 81%. • Increased same property rental revenue by 2.2%. • Achieved same property NOI growth of 3.0%. • Completed the development of Southport Apa
Slide 4: 9.7% FFO Per Unit Growth in Q3-2016
$0.24 FFOPer 9.7% FFO PerShare UnitGrowth in Q3‐2016 2015 Q3 FFO & AFFO YTD FFO & AFFO Per Unit Per Unit For the nine months ended Sept 30 FFO AFFO $0.24 $0.24 FFO AFFO $0.23 $0.65 $0.21 $0.21 $0.21 $0.59 $0.58 $0.54 $0.51 $0.46 Q3-2014 Q3-2015 Q3-2016 2014 2015 2016 4
Slide 5: Improving Debt Levels
Improving Debt Levels Debt as a Percentage of Interest Coverage Ratio Assets 2.81 56.5% 55.5% 2.34 2.21 53.2% 5
Slide 6: $100M of Acquisition Capacity
$100 M of Acquisition Capacity Liquidity of $50M = $100M of Acquisition Capacity Credit Facility: Following the acquisition of Garden Park Apartments without mortgage debt on June 30, 2016, a new $30M demand credit facility was finalized on July 20, 2016. This replaced Killam’s previous $2M $30.0 ac
Slide 7: Improving Payout Ratio
Improving Payout 88% AFFO Payout Ratio Ratio in 2015 AFFO Payout Ratio Dividend/Distribution AFFO Payout Ratio $0.61 $0.60 99% 96% 96% 98% 100% 81% $0.60 $0.59 88% 95% 90% AFFO $0.59 $0.58 81% 85% Payout $0.58 $0.57 $0.57 80% Ratio 75% $0.56 $0.57 $0.58 $0.58 $0.60 $0.60 $0.60 $0.56 70% * Rolling 12
Slide 8: Killam's Strategy for REIT Growth
Killam’s Strategy forREIT Killam Apartment Growth 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 9: 3.0% Same Property NOI Growth in Q3
3.0% Same Property NOI Growth in Q3 Same Property Results 3 and 9 months ended Sept 30, 2016 Revenue Expenses NOI 4.7% 3.0% 2.2% 1.8% 0.9% (2.2%) Q3 YTD 9
Slide 10: 3.0% NOI Growth in Q3-2016
3.0% NOI Growth in Q3‐2016 Q3 Same Property Performance Revenue Growth NOI Growth 4.9% 4.9% 5.1% 3.8% 3.1% 2.9% 3.0% 2.3% 1.9% 1.4% 1.3% 1.1% 0.2% (2.2%) (1.6%) (3.3%) (10.2%) (10.8%) * Killam has a 50% interest in one 307-unit asset in Calgary, acquired in December 2014. 10
Slide 11: Southport Apartments, Halifax
Southport Apartments, Halifax 11
Slide 12: Southport Apartments, Halifax
Southport Apartments, Halifax 12
Slide 13: Southport Apartments, Halifax
Southport Apartments, Halifax 13
Slide 14: Southport Apartments, Halifax
Southport Apartments, Halifax 14
Slide 15: Southport Apartments, Halifax
Southport Apartments, Halifax 15
Slide 16: The Alexander - 2017 Completion
The Alexander ‐ 2017 Completion Rental Units: 242 units, 6,500 sf of retail space Ownership: Killam 50%, Partners 50% Start Date: Q3‐2015 Projected Completion: Q4‐2017 Location: Downtown Halifax across from the waterfront Cost: $35 million (Killam’s cost) ($276,000/ residential door) Expected Yield:
Slide 17: The Alexander, Halifax
17 ape? gr? 2) me Tt i A am Ml r, Killam APARTMENT REIT The Alexande
Slide 18: The Alexander, Halifax
The Alexander, Halifax Killam . APARTMENT REIT
Slide 19: The Alexander, Halifax
The Alexander, Halifax Killam
Slide 20: The Alexander, Halifax
The Alexander, Halifax 20
Slide 21: The Alexander, Halifax
The Alexander, Halifax 21
Slide 22: Future Developments
Future Developments Saginaw Saginaw 2,Gardens Cambridge,II, ONCambridge Rental Units: 93 units Start Date: Q4‐2016 Projected Completion: 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 23: Oct 5, 2016 Property Tour
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Slide 24: Repositioning Opportunities
Repositioning Opportunities Killam Apartment REIT Garden Park Shaunslieve Spring Garden Terrace Silver Spear 24
Slide 25: Repositioning Opportunities - Shaunslieve
Repositioning Opportunities Killam Apartment REIT ‐ Shaunslieve 25
Slide 26: Killam Apartment REIT Q3-2016 Results Conference Call
KILLAM APARTMENT REIT Q3‐2016 Results Conference Call Nov 2, 2016 10 am Eastern
Killam Apartment REIT — Q3 2016 Earnings Presentation on 6ix