Page 1

K Killam APARTMENT REIT May 5 , 2021 Halifax , Nova Scotia KILLAM APARTMENT REIT ANNOUNCES Q1-2021 OPERATING PERFORMANCE AND FINANCIAL RESULTS Killam Apartment REIT ( TSX : KMP.UN ) ( " Killam " ) today reported its results for the three months ended March 31 , 2021 . " We are pleased to report solid operating and financial results for the first quarter of 2021 , as we continue to execute against our long - term strategy , " noted Philip Fraser , President and CEO . " Strong rental demand in the maritime provinces and Ontario , along with our quality management team , produced positive same property net operating income growth for the 28th consecutive quarter . " " Our suite repositioning program continues with the completion of 149 upgraded units in Q1-2021 . With an average return on investment of approximately 12 % , the repositioning program augments our ability to grow revenues during the COVID - 19 pandemic . We reported a 3.3 % increase in same property rents and realized a 60 basis points ( bps ) expansion in our same property operating margin . " " Our development program continues on schedule , with five developments currently underway . In addition , we are seeing strong leasing activity on the lease - up of three new developments that have recently come online , with 259 units of the 349 units ( 74 % ) leased . " Q1-2021 Financial & Operating Highlights Reported net income of $ 27.4 million , a decrease of $ 11.1 million compared to $ 38.5 million in Q1-2020 , primarily driven by fair value adjustments on exchangeable units resulting from changes in Killam's unit price . Generated net operating income ( " NOI " ) of $ 40.3 million , a 5.8 % increase from $ 38.0 million in Q1-2020 . Earned funds from operations ( " FFO " ) per unit ( diluted ) of $ 0.23 , a 4.5 % increase from $ 0.22 in Q1-2020 . Increased adjusted funds from operations ( " AFFO " ) per unit ( diluted ) by 5.6 % to $ 0.19 , compared to $ 0.18 in Q1-2020 , and reduced the AFFO payout ratio 300 bps to 89 % , from 92 % in Q1-2020 . Achieved a 2.1 % increase in revenue for the same property portfolio . Generated same property NOI growth of 3.1 % over Q1-2020 and increased the NOI margin by 60 bps to 60.0 % . ● ● 1