In a recent operational update, Killam Apartment REIT reported net earlings of $46.6 million, marking an exceptional third quarter for the Halifax-based group. Killam attributes this robust growth to acquisitions and completed new developments, increased earnings from its existing portfolio, and fair value gains on investment properties driven by revenue growth and cap-rate compression.
“Killam’s third quarter earnings growth momentum and operating performance were very strong,” noted Philip Fraser, President and CEO. “The same property net operating income (“NOI”) growth of 7.4 per cent in Q3-2021 is a reflection of the resilient demand for apartments, the rebound of our seasonal manufactured home communities and strong leasing in our commercial segment. Given these trends, Killam expects same property NOI growth to exceed 4.0 per cent for 2021.”
Subsequent to the quarter’s end, Killam Apartment REIT invested $118.3 million in four new properties located in Charlottetown, Moncton and Edmonton.” These are new, high-quality assets that complement our existing portfolio,” Fraser said. “We have had robust growth year-to-date and have added 1,601 apartment units from our acquisitions and development programs.”
The reported net income of $46.6 million for Q3-2021 is an increase of $9.1 million over Q3-2020, while the generated NOI of $50.5 million is a 16.8 per cent increase from $43.2 million for the same period a year ago.
Development pipeline
Killam continues to advance its development pipeline with five active developments underway, totalling 685 units for an expected total development cost of $328.1 million ($236.5 million for Killam’s ownership interest). Year-to-date, Killam has invested $51.8 million in active development projects, the majority of which was funded through construction loans.
Killam’s three recently completed developments include Nolan Hill, Shorefront, and 10 Harley, which contributed $0.7 million in FFO growth during Q3-2021. These developments are fully leased and are expected to contribute $3.0 million in FFO on an annualized basis.
Killam began expanding into new markets in earnest in 2019.
For the full update, click here.
