Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
FFO per Share ($)
Q1 Q2 Q3 Q4
2011
2012
2013
$0.0 0
$0.0 5
$0.1 0
$0.1 5
$0.2 0
$0.2 5
Adjusted Funds From Operations (“AFFO”)
AFFO is a supplemental measure used by real estate analysts and some investors to represent FFO after taking into consideration the capital 
spend related to maintaining the earning capacity of a portfolio versus NOI enhancing capital investments.  AFFO is a non‑IFRS measure and 
Management believes that significant judgment is required to determine the annual capital expenditures that relate to maintaining earning 
capacity of an asset compared to the capital expenditures that will lead to higher rents or more efficient operations. 
In order to provide investors with information to assist in assessing the Company’s payout ratio, Management has calculated AFFO using 
the industry standard of $450 per apartment unit. the mHc industry does not have a standard amount for “maintenance” related capital 
expenditures. Management has assumed $100 per MHC site as a reasonable estimate of non‑NOI enhancing capital expenditures per MHC site. 
The weighted average number of rental units owned during the year was used to determine the capital adjustment applied to FFO to calculate 
aFFo .  
For the years ended December 31,
2013 2012 % change
Funds from operations $38,770 $36,096 7.4%
Maintenance Capital Expenditures
apartments (5,342) (4,952) 7.9%
mHcs (685) (791) (13.4)%
Adjusted funds from operations $32,743 $30,353 7.9%
AFFO/ share ‑ basic $0.60 $0.60 ‑%
AFFO/ share ‑ diluted $0.60 $0.59 1.7%
AFFO payout ratio ‑ basic(1) 96% 96% ‑%
(1) Based on Killam’s annualized dividend of $0.58.  The dividend increase to $0.60 was not effective until the January 2014 dividend and therefore did not impact the 2013 payout ratio.
46 Killam ProPerties inc | 2013