Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
PART VI
Investment Properties 
as at December 31,
2013 2012 % change
(i) Investment properties $1,451,743 $1,296,724 12.0%
(ii) IPUC 24,373 57,941 (57.9)%
$1,476,116 $1,354,665 9.0%
Continuity of Investment Properties
The following table summarizes the changes in value of Killam’s investment properties for the years ended December 31, 2013, and 2012.
as at and for the years ended December 31,
2013 2012
Balance, beginning of the year $1,296,724 $1,246,645
Acquisition of properties 119,667 58,821
Disposition of properties (69,680) (72,889)
Transfer from IPUC 70,315 ‑
Capital expenditures 21,647 22,467
Fair value adjustments 13,070 41,680
Balance, end of year $1,451,743 $1,296,724
The key valuation assumption used to determine the fair market value, using the direct capitalization method, is the cap‑rate. A summary of 
the high, low and weighted average cap‑rates used in the valuation models as at December 31, 2013 and 2012 as provided by Killam’s External 
Valuator, are as follows:
Capitalization Rates
December 31, 2013              December 31, 2012          
 Low High
  Effective 
Weighted 
Average l ow High
Effective 
Weighted 
average
apartments    4.50%    8.00% 5.88%    4.50%    8.00%    6.02% 
mHcs    6.00%    8.25% 6.86%    6.50%    8.50%    7.04% 
As highlighted in the above chart, the effective weighted average cap‑rate used to value the apartment properties decreased by 14 bps 
year‑over‑year, generating an increased valuation for some properties. This was partially offset by a rise in cap‑rates in the Saint John market in 
late 2013 due to the softening economy. The effective weighted average cap‑rate used to value the MHCs decreased 18 bps from December 31, 
2012, reflecting increased valuations for most properties in the MHC portfolio.
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