Notes to the Consolidated Financial Statements
Dollar amounts are in thousands of Canadian dollars (except share and per share amounts)
14. Convertible Debentures (continued)
Killam’s $46.0 million convertible subordinated debentures are redeemable at the option of Killam after June 30, 2014, and on or 
before June 30, 2016 (provided that the current market price of the common shares of the company on the date on which the 
notice of redemption is given is not less than 125% of the conversion price).  After June 30, 2016, the debentures are redeemable 
at face value.  Upon maturity or redemption, Killam may elect to repay all or any portion of the debentures outstanding by issuing 
the number of common shares obtained by dividing the aggregate of the principal amount of the debentures that have matured or 
are being redeemed by 95% of the weighted average market price of the common shares for the preceding 20 days (ending 5 days 
preceding the fixed date for redemption or maturing). At the time of issuance, the fair value of Killam’s obligation to make principal 
and interest payments was $43.9 million and the fair value of the holders’ conversion option was $2.1 million (which is reflected in 
“Other paid‑in capital”).  The effective rate of interest on the liability component, which is paid semiannually, is calculated at 6.3%.
15.  Subordinated Debentures
The Company’s $10.0 million of unsecured subordinated debentures expired, and were repaid, on January 4, 2013 and consisted 
of three tranches of $2.5 million, $2.5 million and $5.0 million, bearing interest at 5.92%, 6.06% and 6.33%, respectively. Related 
warrants associated with the subordinated debentures also expired on January 4, 2013.
Face interest 
rate %
Effective Interest 
rate % Face amount
December 31,  
2013
December 31, 
2012
5.92%         6.46% $2,500 $ ‑    $2,500
6.06%         6.62% 2,500 ‑    2,500
6.33%         7.10%   5,000 ‑    4,998
$ ‑    $9,998
16. Capital Stock and Contributed Surplus
Capital Stock
Authorized:
 Unlimited number of common shares, with no par value
 Unlimited number of preferred shares, issuable in series, with no par value
Issued:
The following table summarizes the changes in issued common shares of the Company:
For the years ended December 31,           2013           2012
Number of 
Shares Value
number of 
shares Value
Balance, beginning of year 53,801,809 $391,120 49,290,751 $339,178
issued for cash (i) ‑ ‑ 2,875,000 32,877
Dividend reinvestment plan (ii) 296,004 3,346 347,473 4,367
Stock options exercised 144,349 1,036 471,593 4,195
Warrants exercised ‑ ‑ 816,992 10,000
Stock issued for acquisitions 194,774 2,390 ‑ ‑
r estricted share units redeemed 21,838 289 ‑ ‑
Tax benefit of issuance costs ‑ ‑ ‑ 503
Balance, end of year 54,458,774 $398,181 53,801,809 $391,120
(i) Net of issue costs of $Nil (2012 ‑ $1,616)
(ii) Net of issue costs of $31 (2012 ‑ $29)
Dividends
Killam paid monthly dividends as declared by the Board of Directors on or about the 15th day of each month. an annualized dividend of 
$0.58 was paid in 2013. the dividend increased to $0.60 on an annualized basis for the January 2014 dividend payable on February 17, 
2014.
Killam ProPerties inc | 2013 85