Killam Apartment Reit · TSX:KMP.UN
Killam Apartment Reit — Q3 2014 Earnings Presentation
19 slides from Killam Apartment Reit's earnings presentation, Nov 5, 2014
Slide 1: Q3 2014 Results Conference Call
Q3 2014 Results Conference Call November 5, 2014 12 pm 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 Q3 2014
Highlights from Q3 2014 • Generated funds from operations per share of $0.24 compared to $0.22 during Q3 2013. • Increased same store revenue by 1.6%. • Increased same store NOI by 1.2%. • Completed $24.9 million in acquisitions. • Reduced the weighted average interest rates on mortgage debt to 3.76
Slide 4: Same Store NOI
Same Store NOI Same Store Results 3 months ended Sept 30, 2014 Revenue Expenses NOI 4.1% 2.9% 2.5% 2.5% 1.5% 0.7% 1.6% 1.2% (0.5%) Apartments MHCs Consolidated 4
Slide 5: Same Store NOI
Same Store NOI Same Store Results 9 months ended Sept 30, 2014 Revenue Expenses NOI 6.4% 5.8% 4.1% 2.8% 1.5% 1.7% 0.6% (1.2%) (1.9%) Apartments MHCs Consolidated 5
Slide 6: 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% 6
Slide 7: Occupancy of 96.6% at September 30, 2014
Occupancy of 96.6% at September 30, 2014 Killam's Apartment Occupancy Levels at Quarter-end 2011 - 2014 100% 98% 96% 94% 92% 90% 88% 86% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 7
Slide 8: Occupancy by Market
Occupancy by Market Quarter-Over-Quarter Occupancy Sep-13 Sep-14 100% 98% 96% 94% 92% 90% 88% 86% 84% 82% 80% 8
Slide 9: Increased Incentive Offerings
Increased 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% 9
Slide 10: Same Store NOI Growth
Same Store NOI Growth 2010 - 2014 Same Store Quarterly NOI Growth 12.0% Extreme quarterly high and low NOI growth 10.0% has been attributable to energy costs. The 8.0% average quarterly NOI growth since 2010 has 6.0% been 1.3%. 4.0% 2.0% 0.0% (2.0%) (4.0%) (6.0%) (8.0%) 10
Slide 11: Increased Natural Gas Costs
Increased Natural Gas Costs 11
Slide 12: Interest Expense Savings: Apartment Mortgage Maturities by Year
Interest Expense Savings Apartment Mortgage Maturities by Year $180 10% $160 9% 8% Balance of Mortgage Debt ($ millions) $140 7% $120 6% 5.42% Interest Rate $100 4.46% 5% $80 4.18% 4.09% 3.72% 3.79% 3.46% 4% Current rate for 3.16% 3.13% 10-year CMHC $60 2.91% insured debt is 3% approximately 3.1%. $
Slide 13: Kanata Lakes II Acquisition
Kanata Lakes II Acquisition 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: Phase 1 (63 units) – Q4 2014 Phase 2 (39 units) - Q1 2015 Location: Adjacent Killam’s recently completed Bennett House, St. John
Slide 15: Chelsea Place Development
Chelsea Place Development 15
Slide 16: Saginaw Gardens Development
Saginaw Gardens Development 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 Building Features: Open concept with condo quali
Slide 17: Saginaw Gardens, Cambridge
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: Q3 2014 Results Conference Call
Q3 2014 Results Conference Call November 5, 2014 12 pm Eastern
Killam Apartment REIT — Q3 2014 Earnings Presentation on 6ix