text: **Investment in New Properties**
  
  In addition to developing new properties, Killam also acquires newly constructed assets. Management believes that increasing Killam’s ownership 
  in new, high‑quality buildings will result in above‑market and long‑term demand for the Company’s assets from an aging population, reduce 
  annual capital requirements for deferred maintenance, and transform Killam’s portfolio, over time, into one of the highest quality portfolios in 
  canada. 
  
  Demand by renters for newly constructed rental apartments is strong, with high occupancy rates and above‑average rents. CMHC’s Fall 2013 
  Halifax Rental Market Report reported 97.3% occupancy for properties built in 2000 or later, compared to 96.8% for all rental markets in the city. 
  The average rent for a two‑bedroom unit in these newer buildings was $1,320 per month, compared to a market average two‑bedroom rent of 
  $976. 
  
  The new properties added to Killam’s portfolio are condo quality, providing tenants with features and amenities traditionally associated with 
  ownership. The Company believes that demand for this type of rental accommodation will grow given an increasing number of homeowners 
  reaching retirement age and looking for alternatives to home ownership. Killam is also attracted to the low capital spend requirements from new 
  assets compared to older buildings, which often include significant capital investment to address deferred maintenance. Generally, the amount 
  of annual capital to maintain a property increases as the building ages. In addition, with energy efficient features, the NOI margins are generally 
  higher in newer buildings. 