Killam Apartment Reit · TSX:KMP.UN
Killam Apartment Reit — Q1 2016 Earnings Presentation
23 slides from Killam Apartment Reit's earnings presentation, May 11, 2016
Slide 1: Killam Apartment REIT Q1-2016 Results Conference Call
KILLAM APARTMENT REIT Q1Ͳ2016 Results Conference Call May11,2016 2pmEST
Slide 2: Cautionary Statement
CautionaryStatement ThispresentationmaycontainforwardͲlookingstatementswithrespecttoKillam ApartmentREITanditsoperations,strategy,financialperformanceandcondition. ThesestatementsgenerallycanbeidentifiedbyuseofforwardͲlookingwordssuchas “may”,”will”,“expect”,“estimate”,“anticipate”,“intends”,“believ
Slide 3: Highlights from Q1-2016
HighlightsfromQ1Ͳ2016 Highlights from Q4-2015 • Generated FFO per unit of $0.18, a 20.0% increase from $0.15 in Q1-2015. • AFFO payout ratio over last twelve months improved to 82%. • Increased same property rental revenue by 1.5%. • Achieved same property NOI growth of 8.0%. • Continued interest ra
Slide 4: Strong Customer Service
StrongCustomerService Highlights from 92% 90% satisfiedwiththeir satisfiedwithKillam apartment Killam’s 2015 Tenant Survey 86% wouldrecommend Killamtoafriendor familymember 4
Slide 5: 20% FFO Per Unit Growth
9.7% FFO Per Share Growth 2015 20%FFOPerUnitGrowth Q1 FFO & AFFO Per Unit FFO AFFO $0.18 $0.16 $0.15 $0.12 $0.12 $0.10 Q1-2013 Q1-2014 Q1-2015 5
Slide 6: Improving Payout Ratio
88% AFFO Payout Ratio in 2015 ImprovingPayoutRatio AFFO Payout Ratio Dividend AFFO Payout Ratio $0.61 $0.60 99% 96% 96% 98% 100% 82% 95% $0.60 $0.59 88% 90% AFFO $0.59 $0.58 82% 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% *Rolling12months 6
Slide 7: 8.0% Same Property NOI Growth
8.0%SamePropertyNOIGrowth Same Property Results 3 months ended March 31, 2016 Revenue Expenses NOI 8.4% 8.0% 4.1% 2.4% 1.4% 1.5% 0.3% Apartments MHCs Consolidated (6.1%) (5.6%) 7
Slide 8: Strongest NOI Growth Since 2010
StrongestNOIGrowthSince2010 Quarterly Change in Same Property NOI 2012-2016 10.0% Average 8.0% quarterly NOI growth of 1.7% from 2012-2016. 6.0% 4.0% 2.0% 0.0% Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 -2.0
Slide 9: Apartment Occupancy of 95.7% in Q1
ApartmentOccupancyof95.7%inQ1 Q1 Apartment Occupancy* Q1 2015 Q1 2016 97.8% 97.3% 96.9% 96.3% 95.1% 96.0% 95.7% 93.6% 93.3% 97.0% 97.0% 97.6% 98.1% 97.9% 95.2% 94.2% 95.5% 94.0% 93.4% 80.6% * Occupancy represents actual residential rental revenue net of vacancy as a percentage of gross potential res
Slide 10: Incentives Equal 0.75% of Potential Rents
IncentivesEqual0.75%ofPotentialRents Incentives as a Percentage of Rental Revenue Same Apartment Portfolio 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 10
Slide 11: Lower Natural Gas Prices in NB
Lower Natural Gas Prices in 2015 Vs. LowerNaturalGasPricesinNB 2014 Commodity Charge per GJ Nova Scotia New Brunswick $20 $18 $16 $14 $ per GJ $12 $10 $8 $6 $4 $2 $0 11
Slide 12: Interest Expense Savings on Refinancings
InterestExpenseSavingsonRefinancings Apartment Mortgage Maturities by Year MortgageMaturitiesbyYear WeightedAverageInterestRate 5yearrate 10yearrate $200 8% $180 7% Mortgage Maturities ($M) $160 6% $140 Interest Rate $120 5% 4.11% 3.64% $100 3.43% 3.16% 3.30% 3.24% 4% 3.10% $80 2.81% 2.56% 3% $60 2%
Slide 13: Southport, Halifax
Current Developments Southport,Halifax Southport, Halifax, NS Building Description: 142 units - 70 rental, 72 condo Ownership: Killam 50%, Urban Capital 50% Start Date: December 2014 Projected Completion: Q3-2016 Location: Downtown Halifax Construction Cost: $14.7 million, $210,000/door (Killam’s co
Slide 14: Southport, Halifax
Current Developments Southport,Halifax Southport, Halifax, NS 14
Slide 15: Southport, Halifax
Current Developments Southport,Halifax Southport, Halifax, NS 15
Slide 16: Southport, Halifax
Current Developments Southport,Halifax Southport, Halifax, NS 16
Slide 17: The Alexander, Halifax
TheAlexander,Halifax Building Description: 242 units 24 storeys 230 underground parking stalls 6,200 square feet of retail space Ownership: Killam 50%, Partners 50% Start Date: Q3-2015 Projected Completion: 2017 Location: Downtown Halifax across from the waterfront Construction Cost: $35 million, $2
Slide 18: The Alexander, Halifax
18 Killam 2.43 APARTMENT REIT i’ 4a ANS rur
Slide 19: Saginaw 2, Cambridge
Future Developments Saginaw2,Cambridge Saginaw 2, Cambridge, ON Building Description: 93 units, 7 storeys Start Date: Q3-2016 Projected Completion: Q1-2018 Location: Cambridge, ON 19
Slide 20: Garden Park Apartments, Halifax
GardenParkApartments,Halifax Building Description: 246 apartment units 8,195 sq. ft. commercial Location: 1472 Martello Street, Halifax 2016 Acquisition: 51.0% $23.7 million Previous Purchases of Ownership Interest: 2005 - 10.7% 2006 - 6.6% 2009 - 13.3% 2010 - 15.0% 2011 - 1.7% 2014 - 1.7% 20
Slide 21: Kanata Lakes Apartments, Ottawa
KanataLakesApartments,Ottawa Building Description: 173 units 3rd of a five-building portfolio with a shared clubhouse Location: 1047 Canadian Shield Ave, Kanata Previous Purchases: 2011 – 25% of building I 2014 – 50% of building II & additional 25% of building I 2016 – 50% of building III 21
Slide 22: Kanata Lakes Apartments, Ottawa
KanataLakesApartments,Ottawa 22
Slide 23: Killam Apartment REIT Q1-2016 Results Conference Call
KILLAM APARTMENT REIT Q1Ͳ2016 Results Conference Call May11,2016 2pmEST
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