Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
PART IV
Other Income
Home Sales
For the years ended December 31,
2013 2012 % change
Home sale revenue $2,598 $2,241 15.9%
cost of home sales (2,226) (1,789) 24.4%
new home placement fees 17 98 (82.7)%
Operating expenses (66) (81) (18.5)%
Income from home sales $323 $469 (31.1)%
Killam completed 27 home sales and 1 home sale placement during 2013, compared to 18 home sales and 8 home sale placements in 2012.
Although the number of home sales were higher in 2013, the margins were lower due to two contributing factors; a softening of the market in 
the Birchlee development required lowering margins to close sales of existing stock homes and the decision to sell two long‑standing, inventoried 
stock homes at below cost in two Ontario MHCs.  This allowed for recovery of over $100,000 in inventory costs, and the elimination of utility 
costs for these stock homes during the winter months. The Company currently has four stock homes and does not anticipate selling any other 
homes below cost. However local market conditions and age of inventoried stock homes will always play a factor in the pricing, and thus margin, 
of Killam’s home sales.    
The Company projects 15‑20 home sales for 2014 which will include a mix of new development sites and sales on current vacant lots throughout 
the remaining MHC portfolio.
Equity Income
For the years ended December 31,
2013 2012 % change
e quity income $1,296 $758 71.0%
Equity income represents Killam’s 25% interest in the net income of the joint ventures that own 180 Mill Street, Kanata Lakes and Silver Spear 
apartments, all of which are located in ontario. 
Equity income increased year‑over‑year by 71.0% due to fair value gains recorded on the Kanata Lakes property in Q2 2013. Excluding this 
non‑cash increase in fair value due to cap‑rate compression in the Ottawa market, the equity income for the year was $0.7 million, a 13.9% 
decline over 2012. This decrease was due to higher interest expense in 2013 as mortgages were placed on all three properties in late 2012 and 
early 2013, resulting in a higher leveraged yield.  
Killam ProPerties inc | 2013 41