Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
2014 Outlook
Economic Growth Opportunities in Atlantic Canada
Large economic projects, either proposed or underway in Atlantic Canada, are expected to drive economic and population growth. Highlights 
from the five largest projects are included below:
v Continued progress on the $25 billion Irving Shipbuilding project is expected to generate growth in Nova Scotia in 2014, 2015 and beyond. 
Presently, Irving is investing approximately $350 million modernizing the Halifax Shipyard to begin cutting steel in 2015.
v The $7.8 billion Muskrat Falls hydro project is driving strong economic growth in Newfoundland and Labrador (“NL”) and recently the 
$1.52 billion Maritime Link subsea cable designed to transport electricity from NL to Nova Scotia has been approved.
v Shell Canada has been awarded the exploration rights for eight parcels offshore Nova Scotia and has committed to spending more than 
$1 billion exploring these parcels over the next six years. 
v BP Exploration Company Ltd (“BP”) was awarded another four deep water parcels for a total exploration spending commitment of nearly 
$1.1 billion over six years.  This offshore oil activity has the potential for long‑term spending and employment opportunities in the region 
depending on the results of the exploration activity over the coming years.
v The proposed Energy East Pipeline Project is positive economic news for the Saint John, New Brunswick market. 
Killam’s Atlantic portfolio is also poised to benefit from the continued migration to urban centers, which is generating population growth in 
Killam’s core markets in Atlantic Canada.
Occupancy Gains Expected
Killam expects to see modest gains in occupancy levels in the first and second quarter of 2014 compared to 2013. These gains are expected from 
further expansion of marketing and leasing activities, including a focus on tenant retention. Killam expects to see continued positive results 
from its Ontario portfolio throughout the next year as the Company’s Ottawa properties acquired in 2012 and early 2013 have stabilized. Killam 
forecasts to operate these properties at an average vacancy rate of approximately 2%, consistent with market norms in this region.  Furthermore, 
the Company expects to continue to outperform CMHC in its core markets located in Atlantic Canada.  Trending in the first quarter of 2014 has 
shown steady occupancy gains in all New Brunswick markets as well as PEI, more than offsetting a slight decrease in occupancy in Halifax. Rental 
revenue growth is expected in the range of 1% ‑ 2% across the portfolio in 2014, given Ontario’s rental increases are capped at 0.8% for 2014 and 
market pressures from new supply in Killam’s core markets in Atlantic Canada.
Natural Gas Volatility  
The Company expects to see continued volatility in natural gas pricing in Nova Scotia and New Brunswick until additional pipeline capacity is built 
to alleviate supply constraints in Atlantic Canada and the Northeastern US, bringing pricing more in‑line with other areas of North America.  In 
the short‑term, Management will continue to manage properties to maximize energy efficiencies.  In addition, where dual‑fired heating systems 
exist, the Company will switch to oil when the economics support the change and will explore investing in increasing the base of dual‑fired 
systems.
Acquisition Activity With a Focus in Ontario and Two New Developments Underway
The Company expects to purchase a minimum of $75 million in assets in 2014. The concentration of acquisition activity is expected to take place 
in Ontario, in‑line with the Company’s long‑term strategic goal of increasing NOI generated from outside of Atlantic Canada to 50%.  Killam also 
has two new development projects underway, including a two building 101‑unit complex located in St. John’s, expected to be completed in Q3