text: **Increased Supply Risk**
  Increased supply risk is the risk of loss from increased competition from the addition of new rental units in Killam’s core markets. Numerous 
  other residential developers and apartment owners compete for potential tenants. Although it is Killam’s strategy to own multifamily residential 
  properties in premier locations in each market in which it operates, some of the apartments or MHCs of Killam’s competitors may be newer, 
  better located or offer lower rents. An increase in alternative housing could have a material adverse effect on Killam’s ability to lease units and 
  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. 