in the rents charged and could adversely affect Killam’s revenues and ability to meet its obligations. To mitigate against this risk Killam has a 
geographically diverse asset base. Management is expanding this diversification by increasing Killam’s investment in apartment markets outside 
Atlantic Canada.  
Credit Risk 
Credit risk arises from the possibility that tenants may experience financial difficulty and be unable to fulfill their lease term commitments.  The 
Company mitigates the risk of credit loss through the diversification of its existing portfolio and limiting its exposure to any one tenant.  Credit 
assessments are conducted with respect to all new leasing and the Company also obtains a security deposit to assist in potential recovery 
requirements. In addition, the receivable balances are monitored on an ongoing basis with the result that the Company’s exposure to bad debt is 
not significant.  The Company’s bad debt expense experience has historically been less than 0.4% of revenues.  None of Killam’s tenants account 
for more than 1% of tenant receivables. 
Development Risk
Development risk is the risk that costs of developments will exceed original estimates, unforeseen delays occur and/or units will not be leased in 
the timeframe and/or at rents anticipated. Killam minimizes its exposure to development risk my limiting the amount of development underway 
at any one time. To reduce the Company’s exposure to price increases, Killam enters into fixed‑rate contracts when possible. To reduce the 
lease‑up risk, Killam does extensive market research in advance of each development to support expected rental rates, and pre‑markets its 
properties early on in the process, to increase demand for the new developments.
Killam ProPerties inc | 2013 59