Killam Apartment REIT (KMP-UN) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 financial results, with 3.6% same-property revenue growth and 4% same-property NOI growth, driven by robust Atlantic Canada performance and 97.0% occupancy.

• Total property revenue rose 3.9% year-over-year to $96.7M, while net income was $50.3M, down from Q1-2025 due to lower fair value gains.

• Portfolio resilience is supported by strong demand, leading to raised targets for same-property revenue and NOI for 2026.

Financial highlights

• Net income reached $50.3M, including $14.9M in fair value gains, but declined year-over-year due to lower revaluation gains.

• Funds from operations (FFO) per unit was $0.28; adjusted funds from operations (AFFO) per unit grew 4.3% to $0.24.

• AFFO payout ratio improved to 68%, a 200-bps improvement from Q1-2025.

• Same-property apartment revenue increased 3.6% year-over-year; average rental increase on new leases was 5%.

• Same-property operating expenses rose 3.2%, mainly due to higher property taxes and wages, partially offset by lower utility costs.

Outlook and guidance

• Same-property revenue and NOI growth targets revised upward to above 3.5% for 2026, from a base of 3%.

• Disposition target for non-core assets increased to up to $150M, with activity expected in H2 2026 and proceeds prioritized for NCIB.

• Two development projects, Brightwood (Waterloo) and Eventide (Halifax), are on track for completion in 2026.

• Debt to normalized EBITDA expected to improve as new developments stabilize.

• Interest expense growth anticipated to stabilize by 2028, improving FFO flow-through.