text: **Geographic Diversification is a Priority**
  
  Geographic diversification is a priority for Killam. Our asset base in Atlantic 
  Canada is the foundation of the Company; however, with Atlantic Canada 
  representing only 5% of the Canadian rental market, our growth opportunities 
  increase significantly by expanding our target markets outside of this region. 
  With its strong operating platform, Killam can support a larger and more 
  geographically diverse portfolio. We are actively growing a portfolio of 
  apartments in Ontario in three target markets: Ottawa, the Greater Toronto 
  Area, and Southwestern Ontario. An increased investment outside Atlantic 
  Canada will increase not only Killam’s growth potential, it will also expand the 
  Company’s diversification and exposure to higher growth markets. 
  
  Acquisitions in Ontario represented 45% of acquisitions in 2013. In addition 
  to 1,359 apartment units in the province, we also have 2,144 manufactured 
  home community sites, representing 29% of the MHC NOI last year. Based on 
  our current portfolio, 15% of Killam’s 2014 NOI will be generated in Ontario, 
  compared to our longer-term goal of generating 50% of NOI outside Atlantic 
  Canada. We expect to reach this goal by focusing acquisition activity in 
  Ontario, with the majority of future investment anticipated in the province over 
  the next few years. We will look for additional development opportunities in 
  Ontario and we are exploring opportunities in Western Canada, attracted by 
  the strong population growth trends in Alberta’s urban markets. 