KILLAM APARTMENT REIT ANNOUNCES Q1-2026 OPERATING PERFORMANCE AND FINANCIAL RESULTS

• Killam Apartment REIT reported Q1-2026 net income of $50.3 million, a decrease from $101.9 million in Q1-2025, primarily driven by lower fair value gains on investment properties rather than operational decline.
• Net Operating Income (NOI) increased 5.1% to $62.0 million compared to the prior year period.
• Same property NOI growth was 3.9%, and same property revenue growth was 3.6%.
• Funds From Operations (FFO) per unit remained consistent at $0.28, while Adjusted Funds From Operations (AFFO) per unit increased 4.3% to $0.24 from $0.23 in Q1-2025.
• The company repurchased 400,601 Trust Units under the Normal Course Issuer Bid (NCIB) at a weighted average price of $16.44 per unit, deploying over $6.0 million in capital.
• Distribution Reinvestment Plan (DRIP) was suspended effective April 24, 2026, directing future distributions to be paid in cash.
• The target for dispositions of non-core assets was increased to up to $150 million from a previous $50 million target, focusing on the Manufactured Housing Communities (MHC) portfolio.
• Development updates indicate Brightwood is leased at ~23% and below budget; The Carrick is fully leased; Eventide completion expected by end of 2026.

• Operational Performance: The core operational metrics (NOI growth, AFFO per unit) are positive and align with management's raised guidance targets (>3.5% NOI growth). This confirms the execution of the capital recycling strategy announced in March 2026.
• Capital Allocation: The suspension of DRIP and active NCIB buybacks signal a shift towards returning cash to shareholders via share reduction rather than reinvestment, suggesting management views current share prices as attractive relative to NAV.
• Net Income Volatility: The significant drop in reported Net Income ($50.3M vs $101.9M) is an accounting artifact due to fair value adjustments on investment properties and does not reflect underlying cash flow health, which AFFO measures more accurately.
• Debt Levels: Debt-to-normalized EBITDA stands at 9.71x. While manageable for now given NOI growth, this leverage level is high relative to industry standards (typically <6x) and limits financial flexibility in a rising rate environment.
• Materiality Verdict: The news validates the March 2026 strategic announcements regarding capital recycling and buybacks. It does not introduce new unexpected catalysts but confirms existing strategy execution. Therefore, it is classified as Routine - Positive rather than Material - Positive.

• Company Profile: Killam Apartment REIT is a Canadian real estate investment trust focused on residential apartment properties across Canada, with exposure to Atlantic markets, Ontario, and the Maritimes.
• Flagship Projects:
  • The Carrick (Waterloo, ON): 139-unit development fully leased and contributing to FFO growth.
  • Brightwood (Waterloo, ON): 128-unit affordable development completed ahead of schedule; currently in lease-up (~23% leased).
  • Eventide (Halifax, NS): 55-unit project expected for completion by end of 2026.
• Portfolio Strategy: Focus on core markets with a mix of existing assets and new developments, utilizing capital recycling to optimize portfolio quality.