Killam Apartment REIT Announces Disposition of Non-Core Property in Ottawa

Killam Apartment REIT (“Killam” or the “REIT”) (TSX: KMP.UN) is pleased to announce that it has completed the disposition of 266 Bronson Avenue, a 43-unit apartment building in Ottawa, for gross proceeds of $9.8 million. Killam’s proceeds from the sale are $7.0 million, net of the previous mortgage associated with the property. 

“We have transacted at a premium to our IFRS fair value, and this disposition is accretive to both net asset value and funds from operation per unit, and enhances capital flexibility. The net cash proceeds of this sale will be allocated to debt repayment or general corporate purposes,” said Philip Fraser, President and CEO.

“This transaction is the first of a number of proposed accretive, strategic dispositions that are expected to maximize value for our Unitholders and strengthen our balance sheet. We currently have an additional $125 million of dispositions under contract at various stages of due diligence, however, no assurance can be given that such transactions will be completed.”

About Killam Apartment REIT

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada’s largest residential real estate investment trusts, owning, operating and developing a $4.8 billion portfolio of apartments and manufactured home communities. Killam’s strategy to enhance value and profitability focuses on three priorities: 1) increasing earnings from existing operations, 2) expanding the portfolio and diversifying geographically through accretive acquisitions, with an emphasis on newer properties, and 3) developing high-quality properties in its core markets.

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Note: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain statements in this press release may constitute forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", “continue”, “opportunity” or the negative of these terms or other comparable terminology, and by discussions of strategies that involve risks and uncertainties. Such forward-looking statements include statements regarding: the effects of the disposition on Killam's net asset value, funds from operation per unit, and capital flexibility; the allocation of the proceeds from the disposition to repay debt and for general corporate purposes; and future dispositions, including the number, timing and effects thereof. These forward-looking statements are based on our expectations, estimates, forecast and projections, which we believe are reasonable as of the current date. Such forward-looking statements involve risks, uncertainties, and other factors, which may cause actual results, performance, or achievements of Killam to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, among other things, competition, national and regional economic conditions, and the availability of capital to fund further investments in Killam's business. For more detailed information on these and other risks and uncertainties, you should refer to our most recently filed annual information form and management's discussion & analysis, each of which is available at www.sedar.com. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made and should not be relied upon as of any other date. Other than as required by law, Killam does not undertake to update any of such forward-looking statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.