Killam Apartment Reit · TSX:KMP.UN
Killam Apartment Reit — Q4 2014 Earnings Presentation
20 slides from Killam Apartment Reit's earnings presentation, Feb 18, 2015
Slide 1: Q4 2014 Results Conference Call
Q4 2014 Results Conference Call Feb 18, 2015 11 am Eastern
Slide 2: Cautionary Statement
Cautionary Statement This presentation may contain forward-looking statements with respect to Killam Properties Inc. 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”, “estim
Slide 3: Highlights from Q4 2014
Highlights from Q4 2014 • Generated funds from operations ("FFO") per share (diluted) of $0.18, consistent with $0.18 earned during Q4 2013. • Increased same store revenue by 1.7%. • Increased same store NOI by 0.9%. • Completed $97.1 million in acquisitions. 3
Slide 4: Highlights from 2014
Highlights from 2014 • Generated FFO per share (diluted) of $0.72, a 1.4% increase from $0.71 in 2013. • Increased same store revenue by 1.7%. • Same store NOI declined by 0.9% due to a 5.3% increase in expenses. • Completed $160.2 million in acquisitions. • Increased geographic diversification with
Slide 5: Increasing Geographic Diversification
Increasing Geographic Diversification Target is for 50% of NOI to come from outside Atlantic Canada. Expected NOI by Ontario & Alberta Markets: Province Based on Portfolio as at Dec 31, 2014 Alberta 3% Toronto Ottawa Ontario 19% Nova Scotia PEI 41% 6% NFLD New 9% Cambridge London Brunswick 22% Calga
Slide 6: Same Store NOI
Same Store NOI Same Store Results 3 months ended Dec 31, 2014 Revenue Expenses NOI 4.8% 3.2% 2.9% 2.7% 1.7% 1.8% 0.4% 0.9% (0.2%) Apartments MHCs Consolidated 6
Slide 7: Same Store NOI
Same Store NOI Same Store Results Year ended Dec 31, 2014 Revenue Expenses NOI 5.8% 5.3% 4.3% 2.8% 1.6% 1.7% 0.4% (0.9%) (1.5%) Apartments MHCs Consolidated 7
Slide 8: Same Store Revenue Growth
Same Store Revenue Growth Same Store Quarterly Revenue Growth 5% 4% The average increase 2012 – 2014 is 1.8% 3% 2% 1% 0% 8
Slide 9: Occupancy of 96.4% at December 31, 2014
Occupancy of 96.4% at December 31, 2014 Killam's Apartment Occupancy Levels at Quarter-end 2012 - 2014 98% 96% 94% 92% 90% 88% 86% 9
Slide 10: Decrease in Incentive Offerings
Decease in Incentive Offerings 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% 10
Slide 11: Volatile Natural Gas Costs
Volatile Natural Gas Costs 11
Slide 12: Interest Expense Savings: Apartment Mortgage Maturities by Year
Interest Expense Savings Apartment Mortgage Maturities by Year Mortgage Balance at Dec 31, 2014 Weighted Average Interest Rate $200 10% Balance of Mortgage Debt ($ millions) $180 9% $160 8% $140 7% Interest Rate $120 6% $100 5% $80 4.46% 4% 4.18% 3.68% 3.79% $60 3.43% 3.40% 3.57% 3% 3.16% 3.30% $40
Slide 13: Q4 Acquisitions
Q4 Acquisitions Silver Spear, Mississauga Grid 5, Calgary 180 Mill Street, London 1175 Maritime Way, Kanata 13
Slide 14: Chelsea Place Development
Chelsea Place Development Building Description: 102 units, two buildings, wood frame construction with concrete floor toping Start Date: October 2013 Projected Completion: Building 1 - Dec 2014, Building 2 – March 2015 Location: Adjacent Killam’s recently completed Bennett House, St. John’s, Newfoun
Slide 15: Chelsea Place Development
Chelsea Place Development 15
Slide 16: Saginaw Gardens Development
Saginaw New Gardensunderway developments Development in 2014 Building Description: 122 units, 7 storeys, concrete construction Start Date: December 2013 Projected Completion: Spring 2015 Location: 650 Saginaw Parkway, Cambridge, Ontario Construction Cost: $25.3 million, $207,000/door, budgeted cap r
Slide 17: Saginaw Gardens Development
Saginaw Gardens Development Saginaw Gardens, Cambridge 17
Slide 18: Southport Development
Southport Development Building Description: 142 units, 70 rental units, 72 condo units Ownership: Killam 50% (100% of rental units), Urban Capital 50% (100% of condo units) Start Date: Q4 2014 Projected Completion: 2016 Location: 1057 Barrington Street, Halifax Construction Cost: $14.7 million, $210
Slide 19: Southport Development
1 y a 2 r 4 NX h illam PROPERTIES INC 19
Slide 20: Q4 2014 Results Conference Call
Q4 2014 Results Conference Call February 18, 2015 11 am Eastern
Killam Apartment REIT — Q4 2014 Earnings Presentation on 6ix