Killam Apartment REIT : 04/24 Investor Presentation

INVESTOR PRESENTATION

April 2024

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CAUTIONARY STATEMENT

This presentation may contain forward-looking statements with respect to Killam Apartment REIT ("Killam") and its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward-looking words such as "may", "will", "expect", "estimate", "anticipate", "intends", "believe" or "continue", "maintain", "target" or the negative thereof or similar variations. The actual results and performance of Killam discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, competition; global, national and regional economic conditions including inflationary pressures; and the availability of capital to fund further investments in Killam's business and the factors described under "Risk Factors" in Killam's Annual Information Form, Killam's Management's Discussion and Analysis for the period ended December 31, 2023, and other securities regulatory filings made by Killam from time to time. The cautionary statements qualify all forward-looking statements attributable to Killam and persons acting on its behalf. All forward-looking statements in this presentation speak only as of the date to which this presentation refers, and Killam does not intend to update or revise any such statements, unless otherwise required by applicable securities laws.

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The Kay, Mississauga

PORTFOLIO STATISTICS

NOI Contribution by Market (%) as of December 31, 2023

KMP Established Regions

KMP Expansion Regions

AB | 8.5%

Calgary | Edmonton

BC | 3.7%

Victoria | Courtenay

ON | 25.3%

Ottawa | London

Toronto | KWC

NOI by Segment

	Apartments	6%
88%	MHCs	6%
Commercial

NL | 4.3%

St. John's

PEI | 5.9%

Charlottetown

NS | 31.8%

Halifax

NB | 20.5%

Moncton | Fredericton

Saint John

Best-in-classmulti-family residential owner, operator and developer

Apartment Units	MHC Sites	Commercial	Average Portfolio
Age
18,835 (3)	5,975	0.97 million SF
28 years

1. Includes exchangeable units.
2. As at February 29, 2024.
3. As at December 31, 2023.

Market Cap (1)	Unit Distribution	Yield (2)
$2.0B	$0.70	3.7%

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KEY INVESTMENT HIGHLIGHTS

Strategy for

Earnings

Growth

Disciplined and

proven approach

for growing

earnings across the

portfolio

Geographic

diversification with

>50% of revenue generated from Canada's top 13 largest cities (1)

High Quality

Portfolio

35% of NOI earned from properties developed in the last 10 years

Focused on

delivering value

through well-

maintained and environmentally sustainable properties

Proven

Results

Track record of solid operating performance with 40+ consecutive quarters of positive NOI growth

Accelerating

revenue growth

with ~30%

mark-to-market

opportunity

Capital

Flexibility

Defensive balance

sheet and

conservative debt

metrics

Successful capital recycling program with over $168M in strategic dispositions completed in 2023

Experienced

Developer

Value creation

through innovative

and high-quality developments in large urban markets

Additional intrinsic

portfolio value

from density

opportunity on

existing

investments

ESG

Leader

Purpose driven

culture and

commitment to

ESG

Market leader in renewable energy investments and efficiency projects

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(1) Source: Statistic Canada, Population estimates, July 1, 2022, by census metropolitan area

LONG-TERM GROWTH STRATEGY

Increase earnings	Expand the portfolio
from existing
portfolio	and diversify
by focusing on increasing	geographically	Develop high-quality
rental revenue and investing	through accretive	properties
in sustainable energy	acquisitions and dispositions,
efficiency investments	targeting newer properties	in Killam's core markets

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CAPITAL ALLOCATION

DEVELOPMENT

Invest in developing high-quality

energy efficient assets.

ACQUISITIONS

Acquire high-qualitymulti-residential assets.

INTENSIFICATION

Intensify existing assets with multi-residential

developments.

DISPOSITIONS

Dispose of select properties to provide capital to strengthen balance

sheet and acquire newer assets with higher earnings potential.

NOI ENHANCING CAPEX

Invest in energy-efficiency initiatives, suite renovations and building upgrades.

STRENGTHEN BALANCE SHEET

Manage debt levels to ensure capital flexibility for strategic opportunities.

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CONTINUED GEOGRAPHIC DIVERSIFICATION

4%

23%

2018

73%

ATL	10% 3%
ON
AB	21% 2023

BC

66%

5%

13%

2028 Target (1) 55%

27%

3% 5%

BRITISH COLUMBIA

ALBERTA

10% 13%

Current Allocation

Target Allocation

With a focus on developing in primary markets and divesting out of slower markets, Killam could increase the number of units outside Atlantic Canada to almost 50% of the portfolio in the next 5 years. (1)

66% 55%

ATLANTIC CANADA

(NS, NB, PEI, NL)

21% 27%

ONTARIO

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(1) Potential growth and future results may vary.

PROVEN RECORD OF STRONG GROWTH

Revenues ($M)

Net Income ($M)

$242	$262	$291	$329	$348		$284	$146	$286	$123	$266
2019	2020	2021	2022	2023		2019	2020	2021	2022	2023

Investment Properties ($B)

Investment Properties under Construction

Investment Properties

$3.3	$3.7	$4.5	$4.8	$5.0
2019	2020	2021	2022	2023

FFO & Distribution Per Unit (1)

FFO Per Unit

Distribution

$0.98	$0.66	$1.00	$0.68	$1.07	$0.69	$1.11	$0.70	$1.15	$0.70
2019	2020	2021	2022	2023

85%

80%

75%

70%

65%

60%

55%

50%

45%

40%

AFFO Payout Ratio (2)

82%	82%	76%	75%	72%
2019	2020	2021	2022	2023

(1) FFO per unit is a non-IFRS financial ratio. For a full description and reconciliation of non-IFRS measures, see slide 46 and page 31 of Killam's Management Discussion and Analysis for the period ended December 31, 2023.

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(2) AFFO per unit and AFFO payout ratio are non-IFRS ratios. For a full description and reconciliation of non-IFRS measures, see slide 46 and page 31 of Killam's Management Discussion and Analysis for the period ended December 31, 2023.

FFO & AFFO PER UNIT GROWTH

Q4 FFO & AFFO Per Unit

Q4-2023Q4-2022

Same Property Portfolio

For the three months ended Dec 31, 2023

5.4%

8.8%

$0.28	$0.27	$0.23	$0.23

FFOAFFO

Annual FFO & AFFO Per Unit

2023

2022

(0.3%)

Revenue Expense NOI

Same Property Portfolio

For the year ended Dec 31, 2023

5.5%

7.8%

$1.15	$1.11	$0.97	$0.93

FFOAFFO

Civic 66, Kitchener

1.6%

Revenue Expenses NOI

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2023 PERFORMANCE AGAINST STRATEGIC TARGETS

Target: Achieve same property NOI growth averaging 3.0% to 5.0% (increased to over 7.0% in Q3-2023)

Performance: Killam achieved same property NOI growth of 7.8%.

Target: Sell a minimum of $100 million of non-core assets.

Performance: Killam completed 14 dispositions totaling 1,122 units for a combined sale price of $168.7 million.

Target: Earn at least 36% of 2023 NOI outside of Atlantic Canada.

Performance: 37.4% of NOI was generated outside Atlantic.

Target: Complete construction of two development projects and break ground on one additional project in 2023.

Performance: Completed The Governor (12 units) in Halifax, NS, and Civic 66 (169 units) in Kitchener, ON.

Killam delayed commencing development on Eventide in Halifax, NS given high construction costs and rising interest rates during the year.

Target: Reduce debt as a percentage of total assets to below 45%.

Performance: Decreased to 42.9% at December 31, 2023 (2022 - 45.3%).

Target: Invest a minimum of $8.0 million in energy initiatives in 2023.

Performance: Killam invested $8.8 million in energy initiatives in 2023.

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