Mr. Philip Fraser reports

KILLAM APARTMENT REIT ANNOUNCES DISPOSITION OF NON-CORE ASSET IN SAINT JOHN

Killam Apartment Real Estate Investment Trust has completed the disposition of Parkwood Apartments in Saint John, N.B., for gross proceeds of $15-million.

Parkwood Apartments is a complex containing 20 buildings, built in 1947 and originally acquired by Killam in 2004.

"The sale of this property aligns with our strategy to optimize value from our existing portfolio. We continue to explore opportunities to increase overall efficiency of our portfolio and create value for our unitholders. Proceeds from the sale will be allocated towards the repayment of variable-rate debt, further strengthening our balance sheet," said Philip Fraser, president and chief executive officer.

About Killam Apartment Real Estate Investment Trust

Killam Apartment, based in Halifax, N.S., is one of Canada's largest residential landlords, owning, operating and developing a $5-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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