Philip Fraser President & CEO 1 Killam is Atlantic Canadas - PowerPoint PPT Presentation

Philip Fraser President & CEO 1

Killam is Atlantic Canada’s Apartment Leader with a 14% Market Share 12,900 apartment units. Atlantic Canadian urban markets and Ontario. Average age of the portfolio is 31 years. 2,300 units built in the last 10 years. 2 2

Condos Represent a Small % of Units in Atlantic Canada Halifax Construction Starts - Condo Vs Rental Condos Rental 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 3 3

Since 2010 Killam Has Completed Five Developments Charlotte Court, Charlottetown, PEI – 49 units Brighton House, Charlottetown, PEI – 47 units 4

Since 2010 Killam Has Completed Five Developments S 2, Halifax, NS 63 units The Plaza, Fredericton, NB 101 units 5

Since 2010 Killam has completed five developments Bennett House S t. John’s, NFLD 71 units 6

Why Purpose Built Rental is Attractive to Tenants • Professional management • On-site staff • S ecurity of tenure • S ense of community 7 7

Variety of Construction • Woodframe • S tructural Concrete • Precast Concrete Panels • S teel Frame with Concrete 8

Amenity Spaces Spacious Entrances 9

Amenity Spaces Common Rooms 10

Amenity Spaces Large, bright gyms 11

Unit Features 12

Cautionary statement Case Study - Cambridge 13 13

Case Study: Saginaw Gardens Cambridge, Ontario • Precast concrete panels • 7 storeys,122 units • Fitness room and large party/ amenity room • $207K/ unit total cost • Quicker construction with precast • May 2015 completion 14 14

Cautionary statement Case Study: Southport Halifax, Nova Scotia 15 15

Case Study - Southport • Condo/ rental proj ect • 6 storeys • 142 units • 70 rental units • 72 condo units • Fitness room, rooftop amenity room and retail • $210K/ unit total cost • Q4 2014 start 16 16

Development Challenges • Timing for municipal approvals • Access to skilled labour in certain markets • Quality control • Construction delays • Cost overruns • Environmental issues (contaminat ion/ noise) • Weather • Timing of lease-up 17

What We’ve Learned • Maximizing energy efficiencies • Budgeting and scheduling contingency • Design features – what matters most • Amenity space – the right features • Understand your market • Managing cost overruns • Lease-up process 18

Why We Continue to Like Developments • Attractive yields vs. buying • Ability to meet market needs • Best quality product • High quality tenant base • Targets empty nesters/ seniors • Low maintenance costs • No deferred maintenance • High operating margins 19