Killam Apartment REIT Closes $109.3 Million Public Offering of Trust Units

Nancy Alexander


Killam Apartment REIT (TSX: KMP.UN) ("Killam") is pleased to announce that it has closed its previously announced public offering (the "Offering"), on a bought-deal basis, of trust units (the "Units") to the public at a price of $18.50 per Unit (the "Offering Price").  Killam issued 5,905,480 Units, including 770,280 Units pursuant to the exercise in full of the over-allotment option that was granted to the Underwriters (as defined below), for gross proceeds of approximately $109.3 million.

The Offering was made pursuant to an underwriting agreement with a syndicate of underwriters led by RBC Capital Markets, and including BMO Nesbitt Burns Inc., TD Securities Inc., CIBC World Markets Inc., Scotia Capital Inc., Canaccord Genuity Corp., Desjardins Securities Inc., National Bank Financial Inc., Sera Global Securities Canada LP, Echelon Wealth Partners Inc., iA Private Wealth Inc., Laurentian Bank Securities Inc. and Raymond James Ltd. (collectively, the "Underwriters").

Killam intends to use the net proceeds from the Offering to finance a portion of the $190.5 million purchase price for a four-property, 11-building portfolio totaling 785 units in Kitchener and Waterloo, ON (the “KW Portfolio”), to repay a portion of the outstanding balance on its credit facility (which is currently approximately $51 million), and the remainder, if any, to fund future acquisitions and developments and for general trust purposes.

The Units have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and state securities laws. Accordingly, the Units may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act.

About Killam Apartment REIT

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada’s largest residential landlords, owning, operating and developing a $3.9 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.


For information, please contact:

Nancy Alexander, CPA, CA
Vice President, Investor Relations & Sustainability
(902) 442-0374

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" or the negative of these terms or other comparable terminology, and by discussions of strategies that involve risks and uncertainties. Such forward-looking statements may include, among other things, statements relating to the anticipated use of the net proceeds of the Offering and the proposed acquisition of the KW Portfolio, including the terms and details 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 the effects of the evolving COVID-19 pandemic on Killam's performance; the effectiveness of measures intended to mitigate the impact of COVID-19 and any variants thereof; 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 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.