Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
PART VIII
Risk Management
Killam faces a variety of risks, the majority of which are common to real estate entities. Real estate investments are generally subject to varying 
degrees of risk, depending on the nature of the property. These risks include (i) changes in general economic conditions, (ii) changes in local 
conditions (such as an oversupply of space or a reduction in demand for real estate in the area), (iii) changes to government regulations (such as 
new or revised residential tenant legislations), (iv) competition from others with available space, and (v) the ability of the landlord or owner to 
provide adequate maintenance economically.
Real estate is relatively illiquid. Such illiquidity will tend to limit Killam’s ability to rebalance its portfolio promptly in response to changing 
economic or investment conditions. In addition, financial difficulties of other property owners, resulting in distress sales, may depress real estate 
values in the markets in which the company operates.
Killam’s exposure to general risks associated with real estate investments is mitigated with both its geographic diversification, and investments in 
both apartments and mHcs.  
Killam is exposed to other risks, as outlined below:
Interest Rate Risk
Interest risk is the risk that the Company would experience lower returns as the result of its exposure to a higher interest rate environment. The 
Company is exposed to interest rate risk as a result of its mortgages and loans payable, however this risk is mitigated through the Company’s 
strategy to have the majority of its mortgages payable in fixed‑term arrangements. The Company also structures its financings so as to stagger 
the maturities of its debt, minimizing the Company’s exposure to interest rates in any one year.
As at December 31, 2013,  no mortgages or vendor debt had floating interest rates except for four demand loans totaling $3.9 million. These 
loans have an interest rate of prime plus 1.0% ‑ 2.0% (December 31, 2012 ‑ prime plus 1.0% ‑ 1.5%). Killam also has one construction loan of 
$14.8 million with a floating interest rate of prime plus 0.75% and consequently, Killam is exposed to short‑term interest rate risk on these loans.  
Liquidity Risk
Liquidity risk is the risk that the Company may not have access to sufficient debt and equity capital to fund its growth program and/or refinance 
its debt obligations as they mature. Senior Management manages the Company’s cash resources based on financial forecasts and anticipated 
cash flows.  The maturities of the Company’s long‑term financial liabilities are set out in Notes 12 to 15 of the consolidated financial statements. 
The Company structures its financings so as to stagger the maturities of its debt, thereby minimizing the Company’s exposure to liquidity risk in 
any one year.  In addition, the Company’s apartments qualify for CMHC insured debt, reducing the refinancing risk on mortgage maturities.  The 
Company’s MHCs do not qualify for CMHC insured debt, however, they continue to have access to mortgage debt.     
Increased Supply Risk
Increased supply risk is the risk of loss from increased competition from the addition of new rental units in Killam’s core markets. Numerous 
other residential developers and apartment owners compete for potential tenants. Although it is Killam’s strategy to own multifamily residential 
properties in premier locations in each market in which it operates, some of the apartments or MHCs of Killam’s competitors may be newer, 
better located or offer lower rents. An increase in alternative housing could have a material adverse effect on Killam’s ability to lease units and 
in the rents charged and could adversely affect Killam’s revenues and ability to meet its obligations. To mitigate against this risk Killam has a