text: During 2013, Killam completed four development projects in the first half of the year; adding a total of 282 units to the Company’s apartment 
  portfolio in key operating markets in Atlantic Canada. Total development costs were $69.6 million and the properties generated $0.9 million 
  in NOI during the year. Brighton House, located in Charlottetown, was completed in February 2013 and was fully leased by the end of the first 
  quarter. Bennett House, located in St. John’s, was completed in May 2013 and was fully leased within three months of opening. S2 located 
  in Halifax and The Plaza located in Fredericton were both completed in May 2013 and are currently 62% and 61% leased. Management has 
  developed specific advertising and marketing strategies for these two buildings and expects the buildings to be substantially leased by mid‑2014. 
  Management is anticipating a year‑one stabilized all‑cash yield of approximately 5% on these developments, and minimal capital requirements 
  for the next 10 to 15 years. 
  
  Management believes that building and buying new apartments has the opportunity to generate more stable cash flows and improved returns 
  on investments over time compared to buying older buildings. Management acknowledges that there was a dilutive impact on FFO per share 
  growth during the period of construction but believes the short‑term impact is more than offset by the 10‑15 years of nominal maintenance 
  costs provided by a newly built project. Older buildings typically require a much higher capital spend per year, estimated at least $1,200 per 
  unit per year, versus an estimated $300 per unit for new construction. Assuming similar NOI growth between an old and new building, the 
  lower capital spend on the new build is expected to result in a higher return on the total investment in the property in the first 10 – 15 years of 
  ownership. Management expects to provide disclosure regarding capital spend associated with its new development projects over the next few 
  years to provide support for this theory and show the Company’s ability to grow the return on investments of the new developments over time. 