HALIFAX, NS, Nov. 17, 2023 /CNW/ – Killam Apartment REIT (“Killam” or the “REIT”) (TSX: KMP.UN) is pleased to announce that it has sold five non-core properties in Prince Edward Island for $27.0 million. Killam’s proceeds from the sale are $11.9 million, net of the mortgages associated with the properties. The transaction, encompassing 227 residential units across 11 buildings, reflects the sale of Country Place, 27 Longworth Avenue, 280 Shakespeare Drive, and the Ducks Landing apartment buildings.
“In total, we have completed $157.4 million of dispositions this year at a premium to IFRS net asset values and increased our overall portfolio quality. The proceeds from these strategic transactions have been used to reduce variable rate debt, fund ongoing developments, and, ultimately, strengthen our balance sheet. We expect to complete one additional transaction before year-end, which will conclude our capital recycling program for 2023,” said Philip Fraser, President & CEO.
Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada’s largest residential real estate investment trusts, owning, operating, and developing a $5.0 billion portfolio of apartments and manufactured home communities. Killam’s strategy to enhance value and profitability focuses on three priorities: 1) increasing earnings from existing operations, 2) expanding the portfolio and diversifying geographically through accretive acquisitions and dispositions, with an emphasis on newer properties, and 3) developing high-quality properties in its core markets.
Note: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain statements in this press release may constitute forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “continue”, “opportunity” or the negative of these terms or other comparable terminology, and by discussions of strategies that involve risks and uncertainties. Such forward-looking statements include statements regarding the effects of the disposition on Killam’s net asset value, funds from operation per unit, and capital flexibility; the allocation of the proceeds from the disposition to repay debt and for general corporate purposes; and future dispositions, including the number, timing, and effects thereof. These forward-looking statements are based on our expectations, estimates, forecasts, and projections, which we believe are reasonable as of the current date. Such forward-looking statements involve risks, uncertainties, and other factors, that may cause actual results, performance, or achievements of Killam to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements, including, among other things, competition, national and regional economic conditions, and the availability of capital to fund further investments in Killam’s business. For more detailed information on these and other risks and uncertainties, you should refer to our most recently filed annual information form and management’s discussion & analysis, each of which is available at www.sedar.com. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made and should not be relied upon as of any other date. Other than as required by law, Killam does not undertake to update any of such forward-looking statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
SOURCE Killam Apartment Real Estate Investment Trust
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