Killam Apartment Reit · TSX:KMP.UN
Killam Apartment Reit — Killam Apartment Real Estate Investment Trust — Q1 2025 Earnings Presentation
21 slides from Killam Apartment Reit's earnings presentation, May 8, 2025
Slide 1: Q1-2025 Results Conference Call
Q1-2025 Results Conference Call May 8, 2025 | 9am ET The Killick Halifax, NS
Slide 2: Performance Summary
Q1-2025 | Performance Summary Same Property NOI Growth FFO & AFFO Per Unit Growth by Segment For the three months ended Mar 31, 2025 For the three months ended Mar 31, 2025 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 8.0% 7.5% 4.2% 7.7% 9.5% 0% 0% Apartment MHC Commercial FFO AFFO 1) Same property NOI growth is
Slide 3: Performance Against Strategic Targets
Q1-2025 | Performance Against Strategic Targets Grow same property NOI In Q1, Killam achieved same property NOI growth of 7.8%. Based on the results achieved to date in 2025, Killam expects same by minimum 4.0% - 7.0% property NOI growth to be in the middle to upper end of the range. In Q1, Killam c
Slide 4: Financial Highlights
Q1-2025 | Financial Highlights $101.9M 7.7% Q1-2025 Same Property Results FFO per Unit For the three months ended Mar 31, 2025 Net Income Growth (1) 8% 7% Includes $59.0 million of FFO per unit increased 7.7% net operating income, up 6% to $0.28, compared to 7.2% from Q1-2024. 5% $0.26 per unit in Q
Slide 5: Continued Top Line Growth
Q1-2025 | Continued Top Line Growth Apartment Same Property Occupancy(1) 100% 99% 97.5% 98% 97% 96% 95% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2021 2022 2023 2024 2025 (1) Occupancy levels within the graph reflect occupancy reported for the same property portfolio of the noted period and
Slide 6: Embedded Top Line Growth
Q1-2025 | Embedded Top Line Growth Estimated Total Mark-to-Market Opportunity 28% 28% 28% 25% 25% 25% 22% 17% 18% 15% 15% 12% Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Estimated Mark-to-Market Spread by Region At March 31, 2025 25% 25% 17% 17% 18
Slide 7: Effective Cost Containment
Q1-2025 | Effective Cost Containment Apartment Same Property Operating Margin 64.1% 66% 64% 62% 60% 58% 56% 54% Q1-2019 Q1-2020 Q1-2021 Q1-2022 Q1-2023 Q1-2024 Q1-2025 Same property operating Q1-2025 Expense by Category expenses increased by Same Property 4.6% in Q1-2025 Category Expense Growth (%)
Slide 8: Conservative Debt Metrics for Enhanced Flexibility
Q1-2025 | Conservative Debt Metrics for Enhanced Flexibility Interest Coverage Ratio(1) Q1-2025 2.96 2024 2.94 2023 3.10 2022 3.31 2021 3.53 Debt to Normalized EBITDA(2) 11.33 11.21 10.29 9.69 9.66 2021 2022 2023 2024 Q1-2025 Total Debt as a % of Assets(3) 55% 45% 39.9% 35% Luma: Amenity Room – Otta
Slide 9: Debt Ladder
Q1-2025 | Debt Ladder Apartment Mortgage Maturities by Year As at March 31, 2025 Mortgage Maturities ($) 5 year estimated CMHC-insured rate 10 year estimated CMHC-insured rate Weighted average interest rate (apartments) $500 5% Weighted Avg Apartment $450 3.48% Mortgage Interest Rate $400 4% $350 3.
Slide 10: Defensive Portfolio
Q1-2025 | Defensive Portfolio Killam’s Portfolio Distribution by Monthly Rent Buckets # Units % of Portfolio 4,000 25% 21% 21% 20% 3,000 17% 16% above $2,000 15% 2,000 13% 11% 10% 8% 1,000 5% 4% 3% 1% 1% 0 0% 10
Slide 11: Atlantic Canada Outperforms
Q1-2025 | Atlantic Canada Outperforms Same Property Apartment Portfolio For the three months ended March 31, 2025 NOI Growth by Region Occupancy 100% 12% 10% 98% 8% NOI Growth Occupancy 96% 6% 4% 94% 2% 10.0% 9.8% 9.0% 7.3% 5.6% 2.7% 1.0% 92% 0% St. John's Halifax New Brunswick Ontario Alberta PEI B
Slide 12: A Closer Look at the Turnover Data
Q1-2025 | A Closer Look at the Turnover Data YTD Average Length of Tenure by Region From Units Turned Between January-April 2025 0-1 year 1-2 years 2-4 years 4-6 years Over 6 years 100% 75% 50% 25% 0% Alberta BC New Brunswick St. John's Halifax Ontario YTD Total Average 12
Slide 13: Turnover Trends by Market
Q1-2025 | Turnover Trends by Market Turnover by Region For the three months ended March 31 Q1 2024 Q1 2025 8% 6% 4% 2% 0% 13
Slide 14: Average Increase on Turn by Tenure Length
Q1-2025 | Average Increase on Turn by Tenure Length Year-to-date results trail slightly behind the record-breaking increases achieved in 2024 yet remain in line with, or slightly above, the 5-year average across all tenure terms. Average Rental Increase on Turnover by Tenure Length of Prior Tenant 0
Slide 15: Capital Recycling Activity
Q1-2025 | Capital Recycling Activity Three properties in PEI under firm agreement for $15.7M expected to close by the end of May 2025 In Q1-2025, completed the sale of a 50% interest in land for development in Calgary 2025 Target: $2.6M $18.5M $15.7M $129M $100M - $150M Properties located in NB and
Slide 16: Investment in Solar
Q1-2025 | Investment in Solar Killam is targeting 10% of operationally controlled energy to be generated by renewable sources by the end of 2025 Killam invested $530,000 in photovoltaic solar initiatives in Q1-2025 and expects to spend an additional $3M by year-end. Killam is planning 11 new sol
Slide 17: Development: The Carrick – Waterloo, ON
Q1-2025 | Development: The Carrick – Waterloo, ON Killam’s first All-Electric Heating and Cooling System Building o Pre-heated domestic hot water using air-to-water heat pumps o Natural gas will not be required for day-to-day operations o Insulated envelope o Electric vehicle charging o Low VOC fini
Slide 18: Development: Eventide – Halifax, NS
Q1-2025 | Development: Eventide – Halifax, NS Progress Shot – May 2025 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 Project Rendering: Eventide – Halifax, NS 18
Slide 19: Development: Brightwood (150 Wissler) – Waterloo, ON
Q1-2025 | Development: Brightwood (150 Wissler) – Waterloo, ON Project Rendering Construction Progress – May 2025 Number of units 128 Start date Q4-2024 Est. completion date 2026 Project budget $57.0M Northfield Gardens Cost per unit $459,000 Expected yield 5.00%-5.50% Avg rent $3.20-$3.30 per SF Av
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: Forward-looking statements
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", "expect", "estimate", "anti
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