Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
Investment in the Urban Centres of New Brunswick and PEI 
26% of Killam’s apartment NOI is currently generated in New Brunswick, split principally between the province’s three major urban centres, 
Fredericton, Moncton and Saint John.  Fredericton and Moncton both experienced high population growth over the last number of years, 
posting 9.3% and 8.7% growth, respectively, between the 2006 and 2011 Census periods.  Fredericton is the  provincial capital and home to 
the province’s largest university. Moncton is the largest city and a transportation and distribution hub for Atlantic Canada.  Population growth 
in Moncton in recent years has been driven by urbanization from French communities in Northern New Brunswick.  The Saint John market, 
representing 5.6% of Killam’s apartment NOI, is focused on industry and energy.  After strong energy investments in the city in the mid‑2000s, 
the city has seen a reduction in economic projects over the last three years.  Home to Irving Oil’s refinery operations, the proposed Energy East 
Pipeline project to bring oil from Western Canada to refineries in Quebec and New Brunswick, has potential for strong economic growth for the 
city and the province.
Killam also has a 19% market share in Charlottetown, the capital and economic center of Prince Edward Island.
Expanding Ownership in Ontario
Killam’s apartment portfolio includes 1,359 apartment units in Ontario, up from 225 units three years ago, and includes properties in Ottawa, 
Toronto, London and Cambridge.  In addition to apartments, 42% of Killam’s MHC sites are located in Ontario. Killam is focused on increasing its 
geographic diversification by acquiring more properties in Ontario.
A Diversified Portfolio of Apartment Properties
Killam’s apartment portfolio includes a variety of property types, including high‑rise (24% of units), mid‑rise with elevators (33%) , walk‑ups (41%) 
and a small number of townhouses (2%).  The portfolio includes rents ranging from affordable to high‑end Class A properties.  The average rent 
for Killam’s apartment units at the end of 2013 was $915.  
The average age of Killam’s apartment portfolio is 28 years.  With a focus on both developing and acquiring newer properties, 23% of Killam’s 
apartments are considered new (built after 2001), on a unit count basis.  Compared to the national average of 7%, as per CMHC’s 2010 Housing 
Observer, Killam’s portfolio is considerably newer and should result in lower capital and maintenance costs for the foreseeable future. 43% of 
Killam’s noi is generated from apartment units that are considered new, with 20% of the company’s noi generated from units built in the last 
five years.
MHCs Compliment Killam’s Apartment Portfolio
With MHCs, Killam owns the land and infrastructure supporting each community and leases the sites to the tenants, who own their own homes 
and pay Killam a monthly rent. In addition to site rent, the tenant may have a mortgage payment to a financial institution for their home. The 
average site rent in Killam’s MHC portfolio was $222 per month, which offers value and affordability to tenants. The homeowner is responsible 
for property taxes based on the assessed value of their home and Killam is responsible for the property tax on the land.
MHCs require less recurring capital investment and deliver a more predictable and stable cash flow than apartments. MHC home owners are 
responsible for the repair, maintenance and operating costs of their homes, which removes significant variable costs that are typically borne 
by Killam for apartments. The operating profit margin in Killam’s MHC business averaged 62.4% over the last two years, compared to 58.9% for 
apartments.
The most significant costs to operate MHCs are water, land property tax and general repairs and maintenance to the water and sewer