Killam Apartment Real Estate Investment Trust

Latest Results (14.10.2025):

Killam Apartment Real Estate Investment Trust reported strong financial and operational performance for the second quarter of 2025. The company achieved significant growth in revenue, net operating income, and funds from operations, while continuing to enhance its capital structure and expand its portfolio through strategic acquisitions and sales.

Revenue and NOI Growth

Killam delivered a 6.0% increase in same property revenue and a 6.7% growth in same property net operating income (NOI) compared to Q2 2024. This growth was driven by higher apartment rental rates and increased ancillary revenues, despite a slight decline in occupancy rates.

FFO and AFFO Per Unit Increases

Funds from operations (FFO) per unit rose by 6.7% to $0.32, while adjusted funds from operations (AFFO) per unit saw an 8.0% increase to $0.27 compared to the same period last year. These gains reflect the effectiveness of Killam's capital recycling program and operational efficiencies.

Capital Recycling Program

Momentum in Killam's capital recycling program accelerated with the sale of a townhouse complex in Prince Edward Island for $9 million and the upcoming sale of a portfolio of PEI properties for $81.9 million. Total dispositions for 2025 are expected to reach $128 million, supporting ongoing acquisition activities.

Strategic Acquisitions and Developments

Killam expanded its portfolio by acquiring a 114-unit property in Fredericton, New Brunswick for $28.7 million and a 50% interest in three properties in Ottawa, Ontario for $136 million. Additionally, the company launched The Carrick in Waterloo, Ontario, a 138-suite development with sustainable features, which is currently 60% leased.

Improved Debt Metrics

The second quarter ended with Killam achieving a debt-to-total assets ratio of 39.6%, marking the sixth consecutive quarter of improvement. The debt to normalized EBITDA also decreased to 9.58x, the lowest level in Killam's operating history, enhancing the company's financial stability.