Q2 2025 Killam Apartment REIT Earnings Call Transcript
Key Points
- Killam Apartment Real Estate Investment Trust (KMMPF) reported a 6.7% increase in FFO per unit to $0.32, compared to $0.30 in Q2 2024.
- The company achieved a 6.7% same property NOI growth across its portfolio, indicating strong operational performance.
- Killam's Atlantic markets, particularly New Brunswick and Nova Scotia, continue to outperform in terms of occupancy and rental rate growth.
- The company successfully refinanced $94.6 million of maturing mortgages with $119.2 million of new debt at a favorable weighted average interest rate of 3.52%.
- Killam is actively investing in solar panels and energy management initiatives to maximize operating margins and offset inflationary pressures, which is expected to yield significant utility cost savings.
- The company experienced an increase in turnover, with year-to-date turnover at approximately 12%, and anticipates it to reach 20% for the year, up from 18% in 2024.
- Killam reported an uptick in rental incentives, particularly in Ontario and Alberta, which could impact revenue growth.
- Same property operating expenses increased by 4.5% in Q2, with property taxes rising by 5% due to higher assessed values and regional mill rates.
- The company anticipates NOI growth to moderate to closer to 5% in the second half of the year as rent growth gradually slows.
- Killam's commercial portfolio faces challenges with the upcoming vacancy of SunLife at Westmount Place, which will require significant leasing efforts to replace the lost NOI.
One Good morning ladies and gentlemen. Welcome to the Killam Apartment Real Estate Investment Trust second quarter 2025 financial results conference call. (Operator Instructions)
This call is being recorded on August 7, 2025. I would now like to turn the conference over to Mr. Philip Fraser, President and CEO. Please go ahead.
Good morning and thank you for joining Killam Apartments 2nd quarter 2025 conference call.
I'm here today with Robert Richardson, executive Vice President, Dale Noseworthy, Chief Financial Officer, and Aaron Cleveland, senior Vice President of finance.
Flies to companies today's call are available on the investor relations section of our website under events and presentations. I will now ask Erin to read our cautionary statement.
Thank you, Philip. This presentation may contain forward-looking
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