Dear Shareholders,
I am pleased to review Killam’s 2013 performance with you, and outline our strategy and plans for the 
future.  We are progressing nicely with our priorities to increase the quality of our portfolio and expand 
geographically.  In addition, we are focused on three key areas of growth for the Company: increase the 
value of our existing portfolio, acquire accretively and develop profitably.  
During the past year we expanded communication of our corporate strategy to reach the broader Killam 
community with the introduction of Killam’s Core Values.  These values have been inherent in the Company 
since our first acquisition in 2002, but had not been broadly promoted until this past year.  Our Core Values 
(Curb Appeal, Build Community, Strong Customer Relationships, Do the Right Thing and Creative Solutions) 
are represented in the colourful squares you will see throughout this year’s 
report.  Killam employees across the Company demonstrate these values in their 
daily work, distinguishing Killam as a high-quality landlord.  The introduction of a 
quarterly awards program, which recognizes employees who exemplify Killam’s 
Core Values, enables us to celebrate these values.  I have been impressed by both the number and quality 
of nominations.  We truly have a remarkable group of employees who go above and beyond in providing 
exceptional service to our tenants.  
A Look Back at 2013
I would summarize 2013 as a mixed year for Killam.  We were successful in achieving many of the objectives 
and targets we had set for ourselves, as summarized in the adjacent chart, but faced challenges that 
impacted our financial performance.  We added $191 million in new assets to our portfolio through 
acquisitions and the completion of four new developments.  We also enhanced our leasing and marketing 
programs, which allowed us to realize gains in occupancy in the second half of the year and improve our 
position for 2014.  We further benefited from both interest and administrative cost savings in the year.  These 
improvements were mitigated somewhat by large increases in natural gas costs in Atlantic Canada and a 
more competitive rental market in the Maritimes, which resulted in increased year-over-year vacancy. The 
challenges we faced in 2013 resulted in funds from operations (FFO) per share of $0.72, the same as Killam’s 
2012 FFO per share.  
Growing the Cash Flow from our Properties
We expect to generate, on average, between 2% and 4% in net operating income (NOI) growth through our 
same store portfolio on an annual basis.  Our same store portfolio represents properties we have owned for 
equivalent periods year-over-year.  Due to commodity price volatility, we experienced an unexpected spike 
in natural gas prices in Nova Scotia and New Brunswick throughout the 2013 heating season that increased 
same store utility and fuel expenses by 14%.  We were able to partially offset this unprecedented increase 
by managing controllable expenses to a modest 0.3% increase in the year; however, overall same store 
operating costs grew by 5.0%.  These higher expenses more than offset a 1.8% growth in revenue, resulting 
in a disappointing 0.4% decline in same store NOI for the year.
We are targeting positive same store growth in 2014 of up to 2%.  Year-over-year occupancy improvements 
and increased rental rates are expected to generate revenue growth.  Increasing our leasing staff and 
refining our marketing and leasing process is proving effective, resulting in improved occupancy levels in 
many of our core markets, especially in Ontario and New Brunswick.  A colder than normal winter this year 
(2014) is translating into increased energy consumption and continued volatility in natural gas prices in 
Atlantic Canada, expected to result in higher than normal heating costs.  We continue to invest in energy 
and operational efficiencies which we expect will keep our controllable costs down throughout the year and