Killam suspends distribution reinvestment plan

Executive Summary

• Killam Apartment REIT has increased its 2026 capital recycling target for non-core asset sales from $50 million to $150 million to accelerate portfolio optimization.
• The Distribution Reinvestment Plan (DRIP) has been suspended effective April 24, 2026, to maximize the effectiveness of the Normal Course Issuer Bid (NCIB), with future distributions paid in cash.
• The company announced its March 2026 monthly distribution of six cents per unit, payable on April 15, 2026, with DRIP participants receiving units for this specific distribution before the suspension takes effect.

Key Details

• Capital Recycling Target Increase: The target for non-core asset sales in 2026 has been raised from $50 million to $150 million.
• Use of Proceeds: Proceeds from property dispositions are earmarked for the repurchase and cancellation of trust units via the NCIB and for opportunistic acquisitions.
• DRIP Suspension: The Distribution Reinvestment Plan is suspended until further notice, effective April 24, 2026. Unitholders enrolled in the DRIP will receive cash distributions starting with the April 2026 distribution.
• DRIP Reinstatement Terms: Unitholders who were enrolled at the time of suspension and remain enrolled upon reinstatement will automatically resume participation.
• March 2026 Distribution:
  • Amount: Six cents ($0.06) per unit.
  • Payment Date: April 15, 2026.
  • Record Date: March 31, 2026.
  • Note: Unitholders enrolled in the DRIP as of March 31, 2026, will receive trust units for this specific distribution in accordance with DRIP terms.
• Strategic Rationale: CEO Philip Fraser cited favorable transaction pricing, a disciplined capital allocation strategy, and the opportunity to buy back units trading at a discount to net asset value (NAV).

Notable Quotes

• "The higher disposition target reflects favourable transaction pricing and a clear, disciplined capital allocation strategy. While Killam's trust units trade at a discount to its per-unit net asset value, the NCIB remains a compelling opportunity, complemented by selective acquisitions that enhance portfolio quality and long-term value," — Philip Fraser, President and Chief Executive Officer.