Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
Marketing and leasing initiatives have been a priority at Killam, including increasing the number of leasing agents, investment in marketing 
promotions (including a successful radio campaign) and expanding incentive offerings at specific properties.  Management was pleased with the 
improvements realized during the second half of the year.  The marketing and leasing focus will continue in 2014 and will also include programs 
targeting tenant retention. Killam’s expanded leasing process and well‑maintained, quality asset base has enabled Killam to outperform CMHC’s 
reported averages in Killam’s core markets in Atlantic Canada.  Killam’s increased investment in Ontario has also been beneficial in 2013, with 
improvement in occupancy during each quarter of the year.
Halifax, representing 45% of Killam’s apartment NOI, ended the year with 96.0% occupancy compared to 96.6% at year‑end 2012. CMHC 
reported vacancy of 3.2% in Halifax in October for its Fall 2013 Rental Market Report, compared to Killam’s vacancy of 2.7% for October. 
Competition has increased in Halifax due to new supply with rental construction levels above the ten‑year annual average of 760 units per year, 
for the last three years, including apartment starts of 1,565, 1,437 and 1,258 in 2011, 2012 and 2013, respectively (as reported by CMHC). CMHC 
expects new starts to stay above the 10‑year average into 2014 and throughout 2015 and 2016. Offsetting new supply is positive net‑migration 
leading to population growth and increasing demand for rental units from an aging population that is transitioning away from home ownership 
and into the rental market. The population of Halifax grew by 4.7% (18,000 people) from 2006 to 2011, as reported by Statistics Canada. Despite 
increased rental supply in the city, Killam continues to achieve rental rate growth, with average rents for same store properties located in Halifax 
up 1.8% over the last year.  Same store revenue was up 1.7% year‑over‑year. The improved top‑line growth in Halifax reflects the marketing and 
leasing changes and the quality and central locations of Killam’s apartment portfolio.
Looking to 2014 and beyond, population growth, fuelled in part by the $25 billion, 25‑year, Irving Shipbuilding Contract, is predicted to increase 
demand for rental product and absorb the new supply. In addition, Nova Scotia’s offshore oil industry has potential for growth with BP and Shell 
both launching seismic surveys off the province’s coast.
New Brunswick’s rental market also experienced softness over the last year. As CMHC reported in its Fall 2013 Rental Market Report, the overall 
vacancy for the province’s urban centres was 8.9% for october 2013, 200 bps higher than october 2012. cmHc reported Fredericton as the 
strongest of the larger centres in new Brunswick, with 6.2% vacancy (compared to 4.0% for october 2012), while the weakest market was saint 
John, with CMHC reporting 11.4% vacancy in Fall 2013 compared to 8.7% for 2012. CMHC reported Moncton with 9.1% vacancy for October 
2013, compared to 6.7% a year earlier, with new supply to the market contributing to the vacancy rise.
Despite the more challenging rental market in 2013, Killam achieved occupancy gains in all three n ew Brunswick markets and achieved higher 
occupancy rates than those reported by CMHC in all New Brunswick markets . Killam has successfully responded to the increased competition 
in New Brunswick by expanding marketing programs and rental incentives. These incentives include offering one‑month free rent on some 
new leases, allowing for early move‑ins or including electricity in the rental rates where this is becoming the norm (most notably in Moncton). 
Enhanced training of leasing representatives in each of the New Brunswick cities has improved the leasing process for prospective tenants and