KILLAM APARTMENT REIT ANNOUNCES Q3-2025 OPERATING PERFORMANCE AND FINANCIAL RESULTS

Executive Summary

• Killam Apartment REIT reported Q3‑2025 net income of $41.9 M (down 33% YoY) but delivered a 5.5% same‑property NOI increase and a 3.0% rise in FFO per unit to $0.34.
• Capital recycling activity: dispositions totaling $147.6 M and acquisitions of $168.8 M, including $140.1 M in Ottawa and $28.7 M in Fredericton.
• Development progress: 139‑unit Carrick project reached 80% lease rate; two additional projects in Waterloo and Halifax remain on schedule for 2026 completion.

Key Details

• Financial Highlights (Q3‑2025 vs Q3‑2024)
• Net income: $41.9 M vs $62.7 M (‑33%).
• Fair value loss on investment properties: $4.8 M (vs $51.3 M gain prior year).
• NOI: $67.8 M, up 5.2% YoY.
• Same‑property revenue: $98.5 M, +5.0%.
• FFO per unit: $0.34, +3.0%; AFFO per unit: $0.29, +3.6%.
• AFFO payout ratio (rolling 12 mo): 69% vs 72% YoY (‑300 bps).

• Debt to total assets: 40.5% (up 10 bps); debt/EBITDA: 9.68× (down 0.1 %).

• Capital Recycling

• Dispositions: 12 PEI properties for $90.9 M + Saint John property for $17.0 M = $107.9 M gross; total 2025 dispositions $147.6 M.

• Acquisitions: $168.8 M of new assets – $140.1 M in Ottawa (50% JV interest in three buildings, 302 units) and $28.7 M in Fredericton.

• Development Activity

• The Carrick (139‑unit, Waterloo, ON) reached substantial completion July 2025; 80% leased, full occupancy expected early 2026.

• Ongoing projects: Brightwood (128 units, Waterloo) and Eventide (55 units, Halifax), both slated for 2026 completion.

• Operational Metrics

• Same‑property apartment occupancy: 97.2% (down 0.5 pp).
• Weighted average mortgage rate: 3.56% (up 11 bps).

• Interest coverage ratio: 2.96× (up 0.7%).

• ESG & Employee Engagement

• GRESB score 2025: 82/100, +3 pts YoY.

• Employee satisfaction survey: 81% overall (target ≥ 80%).

• Conference Call

• Date/Time: Thursday, 6 Nov 2025, 9:00 AM ET.
• Dial‑in: North America toll‑free 1‑888‑699‑1199; Toronto 1‑416‑945‑7677.

Notable Quotes

• “We are pleased with our financial and operating performance for the third quarter of 2025… The growth in AFFO per unit highlights the success of Killam's capital recycling strategy.” – Philip Fraser, President & CEO.