Investor Presentation |April 2019 Cautionary Statement This - PowerPoint PPT Presentation

Investor Presentation |April 2019

Cautionary Statement This presentation may contain forward-looking statements with respect to Killam Apartment REIT 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” or the negative thereof or similar variations. The actual results and performance of Killam Apartment REIT 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, general economic and market factors, competition, changes in government regulation and the factors described under “Risk Factors” in Killam’s annual information form and other securities regulatory filings. The cautionary statements qualify all forward-looking statements attributable to Killam Apartment REIT and persons acting on its behalf. Unless otherwise stated, all forward-looking statements speak only as of the date to which this presentation refers, and the parties have no obligation to update such statements. 2

Killam Apartment REIT Killam Apartment REIT owns, manages and develops multi-family residential properties in Atlantic Canada, Ontario and Alberta. Killam's portfolio includes $2.8 billion in real estate assets, comprised of 15,883 apartment units, 5,427 manufactured home community (MHC) sites and 0.6 million square feet of commercial space. NOI by Sector 7% 4% Apartments MHCs Commercial 89% AB (5% of NOI) Calgary | Edmonton NL (6% of NOI) St. John’s ON (22% of NOI) Ottawa | London Toronto | Cambridge PEI (5% of NOI) Kitchener| Waterloo Charlottetown Market capitalization 1 NS (42% of NOI) $1.9B Halifax Annual distribution $0.66 Yield (March 27/19) 3.4% NB (20% of NOI) Avg daily volume (10 day) 324K Moncton | Fredericton Saint John 1 Includes exchangeable units. 3

Killam Apartment REIT Apartment Portfolio Manufactured Home Community Portfolio Number of % of Total Number of % of Total Units Properties NOI (1) Sites Communities NOI (1) Nova Scotia Nova Scotia 2,749 17 3.3% Halifax 5,753 64 35.6% Ontario 2,284 17 3.6% Sydney 139 2 1.0% New Brunswick (2) 224 1 0.1% 5,892 66 36.6% Newfoundland & Labrador 170 2 0.3% New Brunswick Total MHCs 5,427 37 7.3% Fredericton 1,422 21 7.1% Moncton 1,629 31 7.5% Commercial Portfolio Saint John 1,202 14 4.7% Miramichi 96 1 0.5% Square Number of % of Total 4,349 67 19.8% Footage Properties NOI (1) Ontario Halifax, NS 254,000 5 2.2% Ottawa 1,124 10 6.4% Waterloo, ON 297,000 1 1.5% London 523 5 3.7% Total Commercial 551,000 6 3.7% Toronto 378 2 2.8% Total Portfolio 239 100.0% Cambridge 448 5 3.5% NOI By Province 2,473 22 16.4% Newfoundland & Labrador 5% 4% St. John's 915 12 5.3% Grand Falls 148 2 0.6% 6% 1,063 14 5.9% Nova Scotia New Brunswick Prince Edward Island 42% Ontario Charlottetown 1,015 19 5.1% NFLD Summerside 86 2 0.4% 22% PEI 1,101 21 5.5% Alberta Alberta Edmonton 474 3 2.7% Calgary 531 3 2.1% 20% 1,005 6 4.8% 4 Total Apartments 15,883 196 89.0% (1) % of Total NOI for the twelve months ended December 31, 2018. (2) This property is a seasonal resort, which is operational only during Q2 & Q3.

Why Invest in Killam Clearly defined strategy to grow earnings and net asset value (NAV) per unit. • One of Canada’s highest-quality and youngest apartment portfolios with 33% of NOI generated • from apartments built in the last 10 years. Experienced developer with a $850 million development pipeline to support future growth. • Growing funds from operations (FFO) & adjusted funds from operations (AFFO) per unit. • Well positioned to benefit from strong fundamentals. • Rising distributions with conservative payout ratio. • Conservative balance sheet with capital flexibility. • Unit Price Performance Killam vs. S&P/TSX Capped REIT 160% $19.11 150% KMP.UN S&P/TSX Capped REIT 140% 130% 120% 110% $12.37 100% 90% 2017/02 2017/03 2017/04 2017/05 2017/06 2017/07 2017/08 2017/09 2017/10 2017/11 2017/12 2018/01 2018/02 2018/03 2018/04 2018/05 2018/06 2018/07 2018/08 2018/09 2018/10 2018/11 2018/12 2019/01 2019/02 2019/03 5

2018 Highlights | Five Years of Strong Growth Net Operating Income FFO & Distribution Per Unit AFFO Payout Ratio 1 FFO Per Unit Distribution $140 140% $130 $0.90 120% $120 Millions $110 100% $0.80 $100 80% $0.70 $90 60% $80 $0.60 40% $70 $0.72 $0.79 $0.86 $0.90 $0.94 124% 106% $105 $115 $136 0.60 0.60 0.60 0.62 0.64 91% 86% 84% $0.50 $85 $98 20% $60 $50 $0.40 0% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Total Assets Debt as a % of Assets Liquidity 2 $3,000 60% $140 $120 $2,500 55% $100 Millions Millions $80 $2,000 50% $60 $1,775 $1,877 $1,988 $2,311 $2,824 $40 55.8% 56.4% 53.5% 48.7% 49.8% $1,500 45% $125 $33 $26 $50 $37 $20 $1,000 40% $0 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 1 AFFO payout ratio for 2017-2018 calculated using a maintenance capex reserve of $900/unit for apartments. AFFO payout ratio for 2014 – 2016 calculated using a maintenance capex reserve of $970/unit for apartments. 6 2 Pro-forma liquidity at December 31, 2017, includes pending mortgage financings that were arranged, but had not closed at December 31, 2017.

2018 | Strategic Achievements 2018 Target 2018 Performance 2019 Target Longer-term Target Grow Same Same Property NOI  4.8% Same Property NOI Same Property NOI Property NOI by Growth averaging over growth in 2018. Growth of 3% to 5% 3% to 5%. 3%. Grow the portfolio to over Acquire a $3.0 billion by the end of minimum of  Grow the portfolio to more $315 million of assets 2019, with a minimum than $3.5 billion by 2021. $225M of purchased in 2018. acquisition target of $100 assets. million Focus 75% of ~66% of completed acquisitions are More than 35% of NOI Earn at least 30% of 2019 acquisitions and at located outside Atlantic Canada (1) . generated outside Atlantic least 26% of 2018 NOI outside Atlantic  27% of 2018 NOI outside Atlantic NOI outside Atlantic Canada by 2021. Canada Canada. Canada Complete The  The Alexander and Saginaw Complete phase one of the Create a minimum of $20 Alexander, Saginaw Ottawa development, break developments were completed and million of value from and break ground leased-up in 2018. The 78-unit ground on Silver Spear II and developments completed Shorefront development in PEI broke on one additional one additional development between 2019 through 2021. ground in Q4-2018. project development Reduce debt total as a Maintain debt Maintain debt as a  49.8% debt to assets ratio at percentage of assets to to total assets percentage of assets December 31, 2018. below 45% by the end to below 52%. ratio below 49% of 2021. 7 (1) Excluding the acquisition of the remaining 50% interest in the joint Halifax-based Alexander development in December; 77% of the acquisitions were outside of Atlantic Canada.

Clearly Defined Strategy to Grow FFO & NAV Killam’s strategy to increase FFO, NAV and maximize value is focused on three priorities: Increase earnings Develop high- Expand the from existing quality properties portfolio and portfolio. diversify in core markets. geographically through accretive acquisitions, with an emphasis on newer properties. 8

Clearly Defined Strategy | Existing Portfolio Advancing Technology & Analytics Providing Maximizing Superior rents on Customer renewals Service $ Increase FFO & NAV Enhancing Driving Other Expense Revenue Mgmt Streams Practices Repositioning Units 9

Clearly Defined Strategy | Existing Portfolio Increasing earnings from existing operations through revenue growth. Strong occupancy – 2018 occupancy was Killam’s highest. • Rising rental rates – Rate increases on renewals (1.7%) and turns (5.3%) averaged 2.7% • 2018, up from 1.8% in 2017. Reduced incentives – 30 bps lower than 2017, as fewer inducements required with the • current strong market fundamentals. Apartment Same Apartment Average Same Property Revenue Property Occupancy 1 Monthly Rental Rate Growth $1,076 $1,018 95.1% 95.5% 95.8% 96.3% 97.1% 1.7% 2.2% 1.8% 2.6% 3.6% $949 $966 $973 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 1 Measured as dollar vacancy versus unit vacancy to more accurately capture impact of vacant units. 10