Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
Q4 Same Store NOI
For the three months ended December 31,
Total Portfolio Apartments MHCs
2013 2012
% 
change 2013   2012
% 
change 2013  2012  
% 
change
Property revenue $30,436 $29,997 1.5% $27,409 $27,111 1.1% $3,027 $2,886 4.9%
Property expenses
   Operating expenses 4,648 4,770 (2.6)% 3,912 3,954 (1.1)% 736 816 (9.8)%
   Utility and fuel expenses 4,416 3,843 14.9% 4,145 3,556 16.6% 271 287 (5.6)%
   Property taxes 3,505 3,361 4.3% 3,345 3,230 3.6% 160 131 22.1%
Total property expenses 12,569 11,974 5.0% 11,402 10,740 6.2% 1,167 1,234 (5.4)%
noi $17,867 $18,023 (0.9)% $16,007 $16,371 (2.2)% $1,860 $1,652 12.6%
Operating margin 58.7% 60.1% (2.3)% 58.4% 60.4% (3.3)% 61.4% 57.2% 7.3%
Killam’s same store apartment portfolio continued to generate quarter‑over‑quarter net revenue growth, as rental rates increased 1.3% 
from Q4 2012, offsetting higher vacancy and increasing net revenue 1.1% or $0.3 million quarter‑over‑quarter.  As shown in the same 
store summary above, higher utility and fuel costs, up 16.6%, were the main driver of the 6.2% increase in total operating expenses. 
Increased water, electricity and natural gas costs in Nova Scotia (up 23% from Q4 2012) and New Brunswick (up 85% from Q4 2012) 
drove the increase in expense. The increase in natural gas costs was approximately $0.2 million more than Q4 2012 for the Nova Scotia 
properties due to a colder fall (17% colder than Q4 2013), increasing consumption by approximately the same percentage. As well, both 
october and november natural gas pricing was higher than the same months of 2012.
The MHC same store portfolio continued to generate strong revenue growth, up 4.9% from Q4 2012, driven by increased rental rates and 
stable occupancy year‑over‑year.  As well, overall operating expenses decreased by 5.4% for the quarter due to lower costs associated 
with water and sewer repairs due to recent capital upgrades, and timing of both utility and property tax recoveries for the last quarter of 
the year.          
Q4 FFO and AFFO         
For the three months ended December 31,
2013 2012  % change
net income $(4,185) $11,670
Fair value losses (gains)  13,853  (10,087)
Non‑controlling interest (before tax and gains)  (277)  (238)
Depreciation on owner‑occupied building  36 54
Loss (gain) on disposition  1,572  (24)
Tax planning costs  223 ‑
Income tax expense    (1,410)  7,357
FF o $9,812 $8,732 12.4%
FFO/share ‑ basic $0.18 $0.17 5.9%
FFO/share ‑ diluted $0.18 $0.17 5.9%
AFFO/share ‑ basic $0.15 $0.14 7.1%
AFFO/share ‑ diluted $0.15 $0.14 7.1%
Weighted average shares ‑ basic (000’s)  54,395  51,528 5.6%
Weighted average shares ‑ diluted (000’s) (1)  54,702  51,914 5.4%
(1) The calculation of weighted average shares outstanding for diluted FFO purposes excludes the 
convertible debentures as they are anti‑dilutive.
FF o was $9.8 million in the fourth quarter, up 12.4% from $8.7 million in the fourth quarter of 2012. FF o per share was $0.18, up from $0.17 
earned in the same period in 2012. The increase was primarily attributable to acquisitions and developments, interest expense savings and 
administrative cost savings, which more than offset the 5.6% increase in shares outstanding and one month of lost MHC earnings related to the 
ten property portfolio sold on November 29, 2013. The short‑term impact of carrying a high cash balance subsequent to the MHC sale was also 
slightly dilutive in the quarter.
58 Killam ProPerties inc | 2013