Management’s Discussion and Analysis
Dollar amounts are in thousands of Canadian dollars (except as noted)
Environmental Risk
As an owner of real estate, Killam is subject to federal, provincial and municipal environmental regulations.  These regulations may require the 
Company to fund the costs of removal and remediation of certain hazardous substances on its properties or releases from its properties.  The 
failure to remediate such properties, if any, could adversely affect the Company’s ability to borrow using the property as collateral or to sell 
the real estate.  Killam is not aware of any material non‑compliance with environmental laws at any of its properties. The Company has made, 
and will continue to make, the necessary capital expenditures to comply with environmental laws and regulations. Environmental laws and 
regulations can change rapidly, and the Company may be subject to more stringent environmental laws and regulations in the future.  The 
Company mitigates its risk of losses associated with oil tank leaks by enforcing the requirement for appropriate insurance, performing regular oil 
tank inspections, and enforcing the removal of oil tanks when homes are sold.
General Uninsured Losses
Killam carries comprehensive general liability, fire, flood, extended coverage and rental loss insurance with policy specifications, limits and 
deductibles customarily carried for similar companies. There are, however, certain types of risks (generally of a catastrophic nature) that are 
either uninsurable or would not be economically insurable.
Rent Control Risk 
Rent control exists in some provinces in Canada, limiting the percentage of annual rental increases to existing tenants.  Killam is exposed to the 
risk of the implementation of, or amendments to, existing legislative rent controls in the markets in which it operates, which may have an adverse 
impact on the Company’s operations. In the provinces that Killam currently operates, Prince  Edward Island, and Ontario have rent controls. As 
well, Nova Scotia has rent control for MHCs.
Utility and Property Tax Risk 
Killam is exposed to volatile utility costs and increasing property taxes. Utility expenses, mainly consisting of oil, natural gas, water and electricity 
charges, have been subject to considerable price fluctuations over the past several years. Killam has the ability to raise rents on the anniversary 
date of its leases, subject to the overall rental market conditions, to offset rising energy and utility costs, however rental increases may be limited 
by market conditions.  Killam invests in energy efficiency initiatives to reduce its reliance on utility costs; however Killam remains exposed to 
price volatility. The Company has the ability to fix rates through the use of swap contracts for a portion of its oil and natural gas consumption to 
reduce the impact of fluctuations in commodity prices. To address the risk of property tax increases, Killam, along with the assistance of outside 
consultants, reviews property tax assessments and, where warranted, appeals them.
Taxes
Killam is currently not cash‑tax taxable due to its ability to reduce taxable income through unclaimed CCA, and does not expect to be cash taxable 
for at least the next three to five years. A change in circumstances that could result in the Company paying cash taxes in advance of this estimate 
may have a negative impact on Killam’s liquidity.  To mitigate against this risk, Killam is working with tax advisors to identify those issues that may 
impact a change in the Company’s tax situation.
Dividend Payments 
Dividend payments may exceed actual cash available from time to time because of items such as mortgage principal repayments, capital 
requirements, and redemption of shares, if any.  The Company may be required to use part of its debt capacity, raise additional equity, or reduce