Notes to the Consolidated Financial Statements
Dollar amounts are in thousands of Canadian dollars (except share and per share amounts)
5. Investment Properties (continued)
The investment property segment defined as Other consists of one commercial property of which the Company has a 50% ownership. The 
property has a fair value of $2.2 million (December 31, 2012 ‑ $2.1 million).
IPUC includes land held for future development, which is recorded at a fair value of $2.8 million (December 31, 2012 ‑ $5.2 million) and 
properties under construction of $21.6 million (December 31, 2012 ‑ $52.7 million). Fair value cannot be reliably determined for properties 
under construction as the projects are in the early stages of development and therefore IPUC is recorded at cost.
Sensitivity Analysis
The significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy include 
cap‑rates, vacancy rates and management fee rates. Investment property valuations are most sensitive to changes in the cap‑rate. The 
cap‑rate assumptions for the investment properties are included in the following table:
December 31, 2013               December 31, 2012
Low High
Effective 
Weighted 
Average l ow High
Effective 
Weighted 
a verage
Apartments 5.88% 6.02%
Halifax 5.15% 7.00% 5.87% 5.30% 7.00% 5.85%
moncton 5.56% 8.00% 5.94% 6.00% 8.00% 6.30%
Fredericton 5.15% 6.25% 5.93% 5.75% 6.50% 6.30%
saint John 6.25% 6.75% 6.63% 6.00% 6.75% 6.45%
st. John’s 5.15% 6.25% 5.94% 6.25% 7.00% 6.36%
Charlottetown 5.65% 6.00% 5.88% 5.75% 6.50% 6.15%
ontario 4.50% 5.25% 5.26% 4.50% 5.25% 5.25%
Other Atlantic 6.00% 7.00% 6.76% 6.25% 7.00% 7.31%
MHCs 6.86% 7.04%
ontario 7.00% 8.00% 7.09% 7.00% 8.50% 7.34%
Nova Scotia 6.00% 7.50% 6.61% 6.50% 7.50% 6.96%
new Brunswick 8.25% 8.25% 8.25% 6.50% 8.50% 6.87%
newfoundland and labrador 7.25% 7.25% 7.25% 7.50% 7.50% 7.50%
The quantitative sensitivity analysis shown below illustrates the value increase or decrease in the Company’s portfolio of properties given 
the change in the noted input.
Class of property Capitalization rate Vacancy rate
Management fee 
rate
10 basis 
points
increase
10 basis 
points
decrease
1% increase/ 
decrease in 
vacancy
1% increase/ 
decrease in 
management fees
apartments $(22,408) $22,947 $21,055 $22,206
mHcs $(1,659) $1,708 $1,483 $1,932
80 Killam ProPerties inc | 2013