text: **Continued Geographic Expansion in Ontario**
  
  Killam acquired two buildings in Ontario during 2013 including a 102‑unit building located in Ottawa for $10.4 million as well as a newly 
  constructed, 8‑storey, mixed‑use complex containing 21,242 square feet of street level retail (TD Bank, Shoppers Drug Mart and Tim Hortons) and 
  179 apartment units in downtown Toronto for $40.0 million. With the completion of these two acquisitions, Killam’s future NOI generated from 
  its Ontario properties is expected to increase to 15.0% from 7.5%. 
  
  **Reduced Cap‑Rate Compression in 2013**
  
  During 2013 Killam recorded $13.1 million in fair value gains related to its portfolio compared to $37.7 million in 2012. This decrease 
  year‑over‑year was driven by a combination of reduced cap‑rate compression in 2013 and a slight uptick in cap‑rates of 25 bps in the Saint John 
  market in the fourth quarter of 2013. The net gain in real estate valuations does not impact the Company’s FFO per share, its key measure of 
  performance. 
  
  **Dividend Increase**
  
  on December 23, 2013, Killam announced an increase in its annual dividend by 3.4% to $0.60 per share from $0.58 per share. the increase 
  reflects Management’s expectation of earning’s growth to be generated in 2014. 