Killam Apartment REIT (KMP-UN) Q1 2025 earnings summary

Executive summary

• Achieved Q1-2025 net income of CAD 102 million, with FFO per unit up 7.7% to CAD 0.28 and AFFO per unit up 9.5% to CAD 0.23, driven by 7.8% same property NOI growth and high occupancy at 97.5%.

• Maintained strong capital recycling, with over CAD 21.1 million in asset sales completed or under agreement in Q1 and CAD 129 million in conditional agreements expected to close by August 2025.

• Continued investment in ESG and energy initiatives, including all-electric and solar projects, with CAD 0.8 million invested in Q1 and further installations planned.

• Strategic progress on development pipeline, with The Carrick (Waterloo) opening June 1 and other projects advancing.

Financial highlights

• FFO per unit rose to CAD 0.28, AFFO per unit to CAD 0.23, and net operating income increased 7.2% to CAD 59 million.

• Same property NOI growth: 8% in apartments, 7.5% in manufactured home communities, 4.2% in commercial properties.

• Net income reached CAD 102 million, including CAD 70 million in fair value gains.

• AFFO payout ratio improved to 78%, and rolling 12-month payout ratio to 70%.

• Expense growth was 4.6%, with property taxes up 4.8% and utilities up 7.9%.

Outlook and guidance

• Positioned to end 2025 at the middle to upper end of the 4%-7% same property NOI growth target.

• Revenue growth target reaffirmed at 5%-6% for 2025.

• On track to sell CAD 100-150 million of non-core assets in 2025.

• Development projects progressing on schedule, with at least one new project to break ground in H2 2025.

• Targeting 10% of operationally controlled energy from renewables by year-end 2025.