Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
PART V
Funds from Operations (“FFO”) 
FFO is recognized as an industry‑wide standard measure for real estate entities’ operating performance, and Management considers FFO per 
share to be a key measure of operating performance. The calculation of FFO includes adjustments specific to the real estate industry applied 
against net income to calculate a supplementary measure of performance that can be compared with other real estate companies and real 
estate investment trusts. REALpac, Canada’s senior national industry association for owners and managers of investment real estate, has 
recommended guidelines for a standard industry calculation of FFO based on IFRS.  FFO does not have a standardized meaning under IFRS and 
therefore may not be comparable to similarly titled measures presented by other public companies. Killam calculates FFO in accordance with the 
REALpac definition as follows:
For the years ended December 31,
2013 2012 % change
net income $40,932 $54,229 (24.5)%
Fair value gains (13,070) (37,726) (65.4)%
Fair value gains included in equity income (664) (30) 2,113.3%
Non‑controlling interest (before tax and gains) (998) (951) 4.9%
Income tax expense 10,801 19,234 (44)%
Loss on disposition 1,401 1,286 8.9%
Depreciation on owner‑occupied building 145 54 168.5%
Tax planning costs 223 ‑ ‑
FF o $38,770 $36,096 7.4%
FFO/share ‑ basic $0.72 $0.72 ‑%
FFO/share ‑ diluted $0.71 $0.71 ‑%
Weighted average shares‑ basic (000’s) 54,143 50,227 7.8%
Weighted average shares ‑ diluted (000’s) (1)  54,502 50,797 7.3%
(1) The calculation of weighted average shares outstanding for diluted FFO and AFFO purposes excludes the convertible debentures as they are anti‑dilutive.
Killam earned FF o of $38.8 million, or $0.72 per share, during 2013 compared to $36.1 million, or $0.72 per share, during 2012. Killam was 
able to increase FFO by 7.4% during 2013 due to new acquisitions and developments, interest expenses savings on refinancings, reduced 
administrative costs and interest savings from the repayment of the Company’s $10 million subordinated debentures in January 2013. 
These positives were offset by a 0.4% decrease in same store net operating income due to higher natural gas prices, the sale of two MHC 
portfolios over the last two years and a 7.8% increase in the shares outstanding following a $34.5 million equity raise in December 2012. Timing 
differences between the funds generated from the 2012 equity raise and MHC property sales and the deployment of funds for acquisitions had a 
short‑term dilutive impact on FFO per share results. Timing of the lease‑up of developments has also had a short‑term dilutive impact in 2013.
FFO has been adjusted for tax planning costs incurred in 2013. As a corporation, Killam has engaged a third party to help evaluate the Company’s 
tax planning options to ensure the most efficient tax structure for shareholders in the long‑term. These costs are unique to Killam’s current 
structure and have therefore been removed for FFo purposes.
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