Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
Property Acquisitions
When investment properties are acquired, Management considers whether the acquisition represents the acquisition of an asset or a business. 
The Company accounts for an acquisition as a business combination where an integrated set of activities is acquired in addition to the property. 
More specifically, consideration is made of the extent to which significant processes are acquired and, in particular, the extent of ancillary 
services provided by the subsidiary (e.g., maintenance, cleaning, security, bookkeeping, leasing operations, etc.).
Management believes that the majority of the Company’s acquisitions will be classified as asset acquisitions. During the acquisition of most 
properties, Killam buys the asset itself and any short‑term leases that are in place.  Generally, Killam does not purchase any business systems or 
processes with a property.  Management would consider an acquisition to be a business combination if all the following criteria were met:
•  The acquisition includes a property portfolio (multiple buildings),
•  A significant staff complement is included, including a maintenance team, leasing representatives and property management personnel, and
•  Systems are acquired and continue to be incorporated into operations.
Investment Properties
The Company’s accounting policies relating to investment properties are described in Note 2(F). In applying this policy, judgment is applied in 
determining whether certain costs are additions to the carrying amount of the property and, for properties under construction, identifying 
the point at which substantial completion of the property occurs and identifying the directly attributable borrowing costs to be included in the 
carrying value of the development property. Judgment is also applied in determining the extent and frequency of independent appraisals.
Leases
The Company has entered into residential property leases on its investment property portfolio. The Company has determined, based on an 
evaluation of the terms and conditions of the arrangements, that it has not transferred all the significant risks and rewards of ownership of these 
properties and accounts for the contracts with tenants as operating leases.
Financial Instruments
The Company’s accounting policies relating to financial instruments are described in Note 2(K). The critical judgments inherent in these policies 
relate to applying the criteria set out in IAS 39 to designate financial instruments as fair value through profit and loss “FVTPL”, and determining 
whether the Company has significant influence over investees with which it has contractual relationships in addition to the financial instrument it 
holds.
Taxes
The Company is subject to income and capital gains taxes in numerous jurisdictions. Significant judgment is required to determine the total 
provision for current and deferred taxes.  There are many transactions and calculations for which the ultimate tax determination and timing of 
payment is uncertain. The Company recognizes liabilities for current taxes based on estimates of whether additional taxes will be due. Where 
the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income and 
deferred tax provisions in the period in which the determination is made. Deferred tax assets and liabilities are recognized on a net basis to the 
extent they are relating to the same fiscal entity and fall due in approximately the same period.
Consolidation and joint arrangements
The Company has determined that it controls and consolidates the subsidiaries where it owns a majority of the shares. The Company is part 
owner of one property in which it has a 47% interest. the company has determined that it does control this property as it operates and manages