text: With strong demand for the acquisition of apartments over the last three years, cap‑rates have declined and the pricing differential between 
  older and newer buildings has reduced. This enables Killam to increase the amount of newer apartments in its portfolio without paying a 
  significant premium for quality assets. 
  
  **Geographic Diversification**
  
  Geographic diversification in the apartment segment is a priority for Killam. With a 14.2% market share in its core markets in Atlantic Canada, 
  Killam is the region’s largest residential landlord. The maximum market share Management foresees Killam reaching in Atlantic Canada is 
  between 15%‑18%. With Atlantic Canada representing only 4.9% of the Canadian rental market, Killam’s growth opportunities increase 
  significantly when considering assets outside Atlantic Canada. 
  
  With its strong operating platform, Killam can support a larger and more geographically diverse portfolio. The Company is actively building 
  a portfolio in targeted Ontario markets, including Ottawa, the Greater Toronto Area, and Southwestern Ontario. An increased investment in 
  Ontario, and potentially Western Canada, will increase the Company’s diversification and exposure in high growth centres in Canada. Based on 
  the Company’s portfolio at year‑end, 15% of Killam’s 2014 NOI will be generated in Ontario. Management has set a long‑term target of growing 
  the amount of NOI generated outside of Atlantic Canada to 50%. 