Killam Apartment Reit · TSX:KMP.UN
Killam Apartment Reit — Q1 2015 Earnings Presentation
24 slides from Killam Apartment Reit's earnings presentation, May 6, 2015
Slide 1: Q1-2015 Results Conference Call
Q1-2015 Results Conference Call May 6, 2015 9 am Eastern
Slide 2: Cautionary Statement
Cautionary Statement This presentation may contain forward-looking statements with respect to Killam P r o p e r t i e s I n c . a n d i t s o p e r a t i o n s , s t r a t e g y, f i n a n c i a l p e r f o r m a n c e a n d c o n d i t i o n . These statements generally can be identified by use of
Slide 3: Killam's Strategy
Killam’s Strategy 1) Maximize the earnings from our existing portfolio. 2) Expand the portfolio and diversify geographically through acquisitions. 3) Develop high-quality properties in our core markets. 3
Slide 4: Highlights from Q1-2015
Highlights from Q1-2015 • Generated FFO per share of $0.15, a 25.0% increase from $0.12 in Q1-2014. • Increased same store rental revenue by 2.4%. • Achieved same store NOI growth of 5.0%. • Completed a $27.5 million acquisition and a $22.5 million development. • Achieved interest expense savings, r
Slide 5: 2015 Targets
2015 Targets % of Acquisitions Outside Same Store Acquisitions Atlantic Canada 2014 & NOI Growth 2015 Target $75 Million +50% 0% ‐ 2% Q1 2015 Q1 Progress $28 Million 0% 5.0% 5
Slide 6: 25% FFO Per Share Growth in Q1-2015
25% FFO Per Share Growth in Q1-2015 Q1 FFO Per Share $0.15 $0.14 $0.12 Q1-2013 Q1-2014 Q1-2015 6
Slide 7: 5.0% Same Store NOI Growth
5.0% Same Store NOI Growth Same Store Results 3 months ended March 31, 2015 Revenue Expenses NOI 5.3% 5.0% 4.3% 2.4% 2.8% 1.7% 2.4% (0.5%) (0.2%) Apartments MHCs Consolidated 7
Slide 8: 5.0% Same Store NOI Growth
5.0% Same Store NOI Growth Q1 Change in Same Store NOI 5.0% 2.2% 0.0% Q1-11 Q1-12 Q1-13 Q1-14 Q1-15 (1.1%) (6.9%) 8
Slide 9: Natural Gas Savings in New Brunswick
Natural Gas Savings in New Brunswick Cost of Natural Gas in Nova Scotia & New Brunswick (Average Commodity Charge per GJ) Nova Scotia New Brunswick $20 $18 $16 $14 $ per GJ $12 $10 $8 $6 $4 $2 $0 9
Slide 10: 2.4% Revenue Growth in Q1-2015
2.4% Revenue Growth in Q1-2015 Q1 Same Store Revenue Growth 2.6% 2.7% 2.4% 1.9% 1.3% Q1-11 Q1-12 Q1-13 Q1-14 Q1-15 10
Slide 11: 2.4% Revenue Growth in Q1-2015
2.4% Revenue Growth in Q1-2015 Same Store Quarterly Revenue Growth (2013 – 2015) Growth Average 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 2.7% 1.7% 1.2% 1.5% 1.3% 2.2% 1.6% 1.6% 2.4% 0.0% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 11
Slide 12: 80 Basis Point Occupancy Improvement
80 Basis Point Occupancy Improvement Apartment Quarterly Occupancy Levels 95.6% 95.8% 95.5% 94.7% 94.9% 94.7% 94.3% 94.2% 93.6% Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 12
Slide 13: Continued Decrease in Incentives
Continued Decrease in Incentives Incentives as a Percentage of Rental Revenue Same Store Apartment Properties 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 13
Slide 14: Mortgage Maturities ($M)
Interest Expense Savings Apartment Mortgage Maturities by Year Mortgage Maturities by Year Weighted Average Interest Rate $180 8% $160 7% Mortgage Maturities ($M) $140 6% $120 5% 4.17% 4.20% $100 3.68% 3.79% 3.43% 3.30% 3.33% 4% $80 3.11% 3.16% 2.81% 3% $60 2% $40 $20 1% $0 0% Current rate for 5-yea
Slide 15: Brewery Market Acquisition, Halifax, NS
Brewery Market Acquisition, Halifax, NS $22.3 Million - Existing property $5.2 Million – 50% interest in land 240 unit development – The Alexander 40 additional units available 2014 & Q1 2015 15
Slide 16: Brewery Market Acquisition, Halifax, NS
Brewery Market Acquisition, Halifax, NS 2014 & Q1 2015 16
Slide 17: Brewery Market Acquisition, Halifax, NS
Brewery Market Acquisition, Halifax, NS 17
Slide 18: Brewery Market Acquisition, Halifax, NS
Brewery Market Acquisition, Halifax, NS 2014 & Q1 2015 View of the Brewery Market, Keith Hall and development Government House, home to Nova Scotia’s Lieutenant land from neighbouring property. Governor, is located across from the development land. Example of views that will be available from The Al
Slide 19: Chelsea Place, St. John's, NFLD
Developments Chelsea Place, St. John’s, NFLD $22.5 million 102 units Completed March 2015 2014 & 87% leased Q1 2015 19
Slide 20: Chelsea Place, St. John's, NFLD
Developments Chelsea Place, St. John’s, NFLD 2014 & Q1 2015 20
Slide 21: Saginaw Gardens, Cambridge, ON
Developments Saginaw Gardens, Cambridge, ON $25.3 million 122 units 2014 & Completion in Q2-2015 Q1 2015 39% pre-leased 21
Slide 22: Saginaw Gardens, Cambridge, ON
Developments Saginaw Gardens, Cambridge, ON 2014 & Q1 2015 22
Slide 23: Southport, Halifax, NS
Developments Southport, Halifax, NS $14.7 million 70 apartment units 2014 & Completion scheduled for Q3-2016 Q1 2015 23
Slide 24: Q1-2015 Results Conference Call
Q1-2015 Results Conference Call May 6, 2015 9 am Eastern
Killam Apartment REIT — Q1 2015 Earnings Presentation on 6ix