Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
Business Strategy
Maximize NOI from Existing Portfolio
Management is focused on increasing the value of its real estate portfolio by maximizing revenue and operating efficiencies. To achieve NOI 
growth, Killam must address three critical factors; occupancy, rental rates, and operating costs. The Company focuses on customer service, 
investing in its properties, leasing and marketing initiatives, and training its employees to maximize these outcomes.
Management is able to directly control approximately 40% of operating expenses, including labour costs, repairs and maintenance and property 
general and administrative expenses. The remaining operating costs, including utilities and property taxes, are less controllable. Killam’s 
apartments are currently heated with a combination of natural gas, electricity and oil. Volatile oil and natural gas prices have an impact on 
Killam’s operating costs. To mitigate this volatility, the Company is active in energy conservation initiatives and regularly monitors its energy 
usage.
Growth through Acquisitions
Killam is expanding its portfolio by acquiring newer, centrally located buildings and is focused on Ontario. During 2013 Killam completed $121.1 
million in acquisitions, including properties in Toronto, Ottawa, Moncton and Prince Edward Island.
Growth through Development
Killam enhances its portfolio growth opportunities by developing properties. Killam started apartment developments in 2010 and has completed 
five properties to‑date, including four in 2013. Building new properties directly allows Killam to control the quality and features of the buildings, 
maximizes the use of excess land and eliminates the seller’s profit, generating higher returns than through acquisitions. Management expects to 
limit development projects to approximately 5% of the balance sheet on an annual basis. 
Investment in New Properties
In addition to developing new properties, Killam also acquires newly constructed assets. Management believes that increasing Killam’s ownership 
in new, high‑quality buildings will result in above‑market and long‑term demand for the Company’s assets from an aging population, reduce 
annual capital requirements for deferred maintenance, and transform Killam’s portfolio, over time, into one of the highest quality portfolios in 
canada. 
Demand by renters for newly constructed rental apartments is strong, with high occupancy rates and above‑average rents. CMHC’s Fall 2013 
Halifax Rental Market Report reported 97.3% occupancy for properties built in 2000 or later, compared to 96.8% for all rental markets in the city. 
The average rent for a two‑bedroom unit in these newer buildings was $1,320 per month, compared to a market average two‑bedroom rent of 
$976. 
The new properties added to Killam’s portfolio are condo quality, providing tenants with features and amenities traditionally associated with 
ownership. The Company believes that demand for this type of rental accommodation will grow given an increasing number of homeowners 
reaching retirement age and looking for alternatives to home ownership. Killam is also attracted to the low capital spend requirements from new 
assets compared to older buildings, which often include significant capital investment to address deferred maintenance. Generally, the amount 
of annual capital to maintain a property increases as the building ages.  In addition, with energy efficient features, the NOI margins are generally 
higher in newer buildings.
With strong demand for the acquisition of apartments over the last three years, cap‑rates have declined and the pricing differential between 
older and newer buildings has reduced. This enables Killam to increase the amount of newer apartments in its portfolio without paying a 
significant premium for quality assets. 
Geographic Diversification