text: **MHCs Compliment Killam’s Apartment Portfolio**
  
  With MHCs, Killam owns the land and infrastructure supporting each community and leases the sites to the tenants, who own their own homes 
  and pay Killam a monthly rent. In addition to site rent, the tenant may have a mortgage payment to a financial institution for their home. The 
  average site rent in Killam’s MHC portfolio was $222 per month, which offers value and affordability to tenants. The homeowner is responsible 
  for property taxes based on the assessed value of their home and Killam is responsible for the property tax on the land. 
  
  MHCs require less recurring capital investment and deliver a more predictable and stable cash flow than apartments. MHC home owners are 
  responsible for the repair, maintenance and operating costs of their homes, which removes significant variable costs that are typically borne 
  by Killam for apartments. The operating profit margin in Killam’s MHC business averaged 62.4% over the last two years, compared to 58.9% for 
  apartments. 
  
  The most significant costs to operate MHCs are water, land property tax and general repairs and maintenance to the water and sewer 
  infrastructure. Killam’s experience with MHCs has shown that the largest variable expenses are costs related to the water and sewer 
  infrastructure. The majority of other costs have little variability. Killam’s MHCs enjoy a stable tenant base, with consistently strong occupancy of 
  approximately 98%. Should a tenant choose to leave a community, they sell their home, with the home typically remaining on the site and rent 
  collection continuing uninterrupted from the new homeowner, who Killam approves as part of the sale process. 