Mr. Dale Noseworthy reports

KILLAM APARTMENT REIT EXPANDS PORTFOLIO WITH $26.2 MILLION OF ACQUISITIONS

Killam Apartment Real Estate Investment Trust has closed two acquisitions totalling $26.2-million, consisting of 153 apartment units in London, Ont., and 66 units in Calgary, Alta. These acquisitions build on Killam's existing presence in London and Calgary, and align with Killam's strategic goals of accretive growth and geographic diversification.

On Dec. 22, 2016, Killam acquired a portfolio of five buildings in London which include 960, 970 and 980 Cheapside St., 298 Fairview Ave., and 1447 Trafalgar St. The acquisition cost was $13.4-million ($87,500 per unit). The acquisition was financed with $9.5-million in mortgage debt and cash on hand. Killam's London portfolio now totals 417 rental units and including this acquisition, Killam completed $70.0-million in acquisitions in 2016, in line with management's acquisition target to exceed $50-million for the year.

On Jan. 16, 2017, Killam acquired Spruce Grove Lane Apartments, its second apartment property in Calgary. The property, located on a three-acre site at 1802 92 Ave. SW in the Pump Hill neighbourhood, consists of 66 townhouse-style apartments. The acquisition cost was $12.8-million ($195,000 per unit). Management plans to increase the net operating income for this very-well-located asset with a combination of professional management and capital upgrades. This acquisition increases Killam's Calgary portfolio to 373 rental units.

"We are pleased to grow our rental portfolios in both London and Calgary," noted Philip Fraser, president and chief executive officer. "We have been monitoring the Calgary rental market over the last year and Spruce Grove Lane Apartments, located in a sought-after residential neighbourhood, has great upside. We have the opportunity to add value and grow net operating income at this property."

About Killam Apartment REIT

Killam Apartment REIT, based in Halifax, N.S, is one of Canada's largest residential landlords, owning, operating and developing multifamily apartments and manufactured home communities. Killam's current portfolio includes $2-billion in real estate assets. Killam's strategy to maximize its value and long-term profitability includes concentrating on three key areas of growth: 1) increasing the earnings from its existing portfolio, 2) expanding its 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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