Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
MHCs ‑ Capital Spend
A summary of the capital spend on the MHC segment is included below:
For the years ended December 31,
2013 2012 % change
Water & sewer upgrades $2,212 $1,812 22.1%
r oads and paving 255 421 (39.4)%
e quipment 21 36 (41.7)%
other 465 527 (11.8)%
Site expansion and land improvements 552 549 0.5%
Total capital spend ‑ MHCs $3,505 $3,345 4.8%
average number of units outstanding 7,207 8,251 (12.7)%
capital spend per unit $486 $405 20.0%
Management expects to spend between $300 and $400 in capital per MHC site on an annual basis. As with the apartment portfolio, a portion of 
the MHC capital is considered maintenance capital and a portion is value enhancing. Management estimates that $100 per unit is maintenance 
capital, including costs to support the existing infrastructure, and the remaining amount increases the value of the properties, with improved 
roadways, ability to accommodate future expansion, and community enhancements, such as the addition of playgrounds.  The cost of most 
capital projects will be recovered through above guideline increases in the provinces with rent control, leading to increased NOI for the 
investment. 
For the year ended December 31, 2013, Killam spent $2.2 million on water and sewer upgrades, an increase of 22.1% over 2012 due to the 
installation of several new water systems and upgrades to existing water and sewer infrastructure. This capital work fluctuates from year‑to‑year 
with only $1.8 million invested in 2012 but $3.1 million in 2011. the high water upgrade costs in 2013 resulted in the per unit mHc spend being 
above Killam’s expectation of $300 ‑ $400 per year.
As with the apartment portfolio, the timing of capital spending changes based on requirements at each community. Killam expects to invest $1 
million to $2 million during 2014 on capital improvements across the MHC portfolio.
Liquidity and Capital Resources
The Company’s sources of capital are cash generated from operating activities, credit facilities, mortgage financing and refinancing, and equity 
and debt issuances. The Company’s primary use of capital includes property acquisitions and developments, major property improvements, 
recurring property maintenance, debt principal and interest payments, and payment of dividends. The Company anticipates meeting all current 
and future obligations with current cash and cash equivalents, cash flow generated from operations and conventional mortgage refinancing and 
that the Company will be able to obtain financing on reasonable terms.
Killam’s ability to grow through acquisitions and development will be dependent on the ability to access mortgage debt, construction financing 
and to raise equity in the capital markets. Killam had cash on hand of $27.7 million at December 31, 2013, primarily as a result of the net 
proceeds of $42.6 million related to the sale of the ten MHC properties in the fourth quarter of 2013. Killam utilized part of the sale proceeds 
to retire a $10 million vendor take‑back (“VTB”) loan and acquire additional properties, and expects to redeploy the remaining funds during the 
first quarter of 2014. Based on 60% debt on acquisitions, the Company expects to complete an additional $60 million in accretive apartment 
acquisitions. The Company also has $139.3 million in debt maturing during 2014 and expects to generate approximately $50 million in surplus 
cash to be used for its 2014 capital program and to fund additional acquisitions throughout the year.
52 Killam ProPerties inc | 2013