Killam Properties: 2025 Canadian Highlights

Killam Apartment REIT continues to strengthen its position as a leading multi-residential property owner across Canada, with particularly impressive growth in its home province of Nova Scotia. The company's strategic approach to acquisitions, dispositions, and development has positioned it well for continued success in 2025 and beyond.

National Growth Through Strategic Transactions

Killam has maintained an aggressive expansion strategy throughout 2025, completing 10 property transactions across Atlantic Canada while successfully opening new developments. The crown jewel of these developments is The Carrick in Waterloo, Ontario – a modern 169-unit, all-electric property that's now fully leased and generating revenue for investors.

The company's disposition strategy has been equally impressive, with 695 residential units changing hands and total dispositions reaching $127.9 million – comfortably within their strategic target range of $100-150 million. Notable sales occurred in Prince Edward Island and Newfoundland, demonstrating Killam's ability to optimize its portfolio across multiple provinces.

Strategic Reinvestment and Portfolio Expansion

Proceeds from these strategic sales haven't sat idle. Killam has been actively reinvesting in high-quality acquisitions, including:

• A substantial 114-unit property in Fredericton, New Brunswick
• Acquisition of the remaining 50% interest in three Ottawa assets (previously held through joint venture)
• Continued expansion into energy-efficient, modern buildings like The Carrick

This strategic capital recycling has helped grow Killam's overall apartment portfolio to an impressive 18,293 units as of June 2025, spanning Atlantic Canada, Ontario, Alberta, and British Columbia. Remarkably, about 40% of the company's net operating income (NOI) now comes from outside Atlantic Canada, showcasing successful geographic diversification.

Nova Scotia: The Growth Engine

While Killam has expanded nationally, Nova Scotia remains the cornerstone of its operations and a key driver of financial performance. The province's strong fundamentals continue to support robust returns for the REIT.

Market Leadership and Financial Contribution

As Atlantic Canada's largest owner of multi-residential apartments, Killam's Nova Scotia operations contributed 31.9% of total NOI in 2024 – the largest single provincial contribution to the company's revenue stream. This dominance reflects both the strength of the local market and Killam's strategic positioning within it.

Strong Rental Growth Despite Controls

Even with temporary rent controls limiting increases to 5% annually, Nova Scotia delivered impressive rental growth for Killam in 2025. Same-property rental rates increased by 5%, and with rent controls expected to extend through 2027, the company has adapted its strategy to maintain strong returns within this regulatory framework.

The Halifax rental market demonstrates exceptional strength, with average monthly rent reaching $1,530 and occupancy rates across Atlantic Canada staying above 98% throughout 2025. These metrics underscore the persistent housing shortage and strong rental demand in the region.

Development Pipeline and Recent Halifax Activity

Killam's commitment to Nova Scotia extends beyond existing properties to exciting new developments that will add significant value to the portfolio.

Major Development Projects

The company is advancing construction on two significant Halifax projects:

• Eventide: A 55-unit development scheduled for completion in 2026
• Victoria Gardens Phase 1: A planned 95-unit development that will further expand Killam's Halifax footprint

Recent Halifax Transactions

Killam has been active in optimizing its Halifax portfolio through strategic transactions in 2025:

• Plaza 54 (land sale)
• 5231 Kent Street (27 units)
• 9 Bruce Street (60 units)
• 9 Sybyl Court (22 units)
• 2 Linden Lea & 83-87 Pleasant Street (28 units)

These transactions demonstrate the company's disciplined approach to portfolio management, divesting older properties while investing in newer, more efficient assets.

Strong Financial Performance

Killam's operational excellence translates directly to impressive financial results that should interest both current and prospective investors.

Key Financial Metrics

• Funds from Operations (FFO) per unit increased 6.7% (Q2 2025 vs Q2 2024)
• Adjusted FFO (AFFO) per unit up 8.0%
• Same property NOI growth forecast to exceed 6% for 2025
• Debt-to-assets ratio improved to 39.6%
• Weighted average mortgage rate of 3.53% secured through strategic refinancing

These metrics reflect a company that's not only growing but doing so while maintaining financial discipline and a strong balance sheet.

Sustainability Investment

Killam continues its commitment to environmental stewardship with a $6 million annual sustainability target. Investments include solar installations, upgraded boilers, heat pumps, and insulation improvements – all of which reduce operating costs while improving tenant satisfaction and property values.

ESG Leadership and Resident Satisfaction

Beyond financial performance, Killam demonstrates leadership in environmental, social, and governance practices. The company maintains over 950 units with long-term affordability commitments and has installed 401 electric vehicle chargers across its portfolio.

Renewable energy projects include solar arrays and planned virtual net metering initiatives in Halifax, positioning Killam at the forefront of sustainable residential property management.

Perhaps most importantly, 87% of residents would recommend Killam to others – a testament to the company's focus on tenant satisfaction and property management excellence.

Why Nova Scotia Remains Strategic

Several factors make Nova Scotia particularly attractive for Killam's continued investment:

Demographic Advantages

Nova Scotia experiences the highest population and economic growth rates in Atlantic Canada, driven by both international immigration and interprovincial migration. This demographic tailwind creates sustained rental demand that benefits property owners.

Market Fundamentals

• Persistently low vacancy rates
• Substantial mark-to-market rent opportunities (Halifax shows 22% embedded rent growth potential)
• Strong rental demand from population growth
• Limited new supply relative to demand

Portfolio Positioning

Killam's diversified Halifax portfolio is well-positioned to absorb new housing supply while continuing to meet robust rental demand. The company's scale and operational expertise provide competitive advantages in this growing market.

Looking Ahead

Killam's focus on geographic and asset quality diversification, combined with a strong balance sheet and disciplined portfolio management, supports its continued leadership in Nova Scotia and broader Canadian apartment markets. The company's strategic approach to capital recycling – selling older, capital-intensive assets while investing in modern, efficient properties – positions it well for sustained growth.

For investors interested in Canadian real estate, Killam Properties represents a compelling opportunity to participate in the growth of both Nova Scotia's dynamic rental market and Canada's broader multi-residential sector. The company's proven track record, strong financial performance, and strategic positioning make it a standout choice in the REIT space.

This analysis is based on publicly available information and should not be considered investment advice. Prospective investors should conduct their own research and consult with financial advisors before making investment decisions.