text: As at December 31, 2013, no mortgages or vendor debt had floating interest rates except for four demand loans totaling $3.9 million. 
  These loans have an interest rate of prime plus 1.0% ‑ 2.0% (December 31, 2012 ‑ prime plus 1.0% ‑ 1.5%). Killam also has one construction 
  loan of $14.8 million with a floating interest rate of prime plus 0.75% and consequently, Killam is exposed to short‑term interest rate risk on 
  this loan. 
  
  An annualized 100 basis point change in the interest rate on Killam’s entire mortgage and vendor debt at December 31, 2013, would affect 
  financing costs by approximately $7.1 million per year. However, only $141.4 million of Killam’s fixed mortgage and vendor debt matures in 
  the next twelve months. Assuming these mortgages are refinanced at similar terms, except at a 100 basis point increase in interest rates, 
  financing costs would increase by $1.4 million per year. 
  
  **(ii) 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 the tenant receivables as at each of the year‑ends presented in these financial 
  statements. The maximum exposure to credit risk is the carrying amount of each class of financial assets as disclosed in this note. 