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Killam Apartment REIT Announces Q2-2021 Operating Performance and Financial Results HALIFAX , NS , Aug. 4 , 2021 / CNW / - Killam Apartment REIT ( TSX : KMP.UN ) ( " Killam " or the " REIT " ) today reported its results for the three and six months ended June 30 , 2021 . " Our second quarter results reflect the underlying resilience of our portfolio , " noted Philip Fraser , President and CEO . " Strong rental demand across our core markets drove both revenue and net operating income growth in the quarter . As we transition to a post - pandemic environment , the strength of our portfolio is evident and we are pleased to increase our forecast for 2021 annual same property net operating income to exceed three and a half percent , up from over two percent . " " The purchase of a 785 - unit apartment portfolio in Kitchener - Waterloo highlighted an active acquisition quarter . With this acquisition , we increased our Ontario footprint to 3,342 units and have an additional 485 units currently under development in Ontario . We are excited for the opportunities this new portfolio offers and it further solidifies our presence in the KWC area . " Q2-2021 Financial & Operating Highlights Reported net income of $ 136.7 million , an increase of $ 115.2 million compared to $ 21.5 million in Q2-2020 , primarily attributable to growth through acquisitions and completed developments and increased earnings from the existing portfolio , as well as fair value gains on investment properties driven by cap - rate compression . • Generated net operating income ( " NOI " ) of $ 44.6 million , a 7.9 % increase from $ 41.3 million in Q2-2020 . ● • Earned funds from operations ( " FFO " ) per unit ( diluted ) of $ 0.27 , a 3.8 % increase from $ 0.26 in Q2-2020 . • Increased adjusted funds from operations ( " AFFO " ) per unit ( diluted ) by 4.5 % to $ 0.23 , compared to $ 0.22 in Q2-2020 , and reduced the AFFO payout ratio 400 basis points ( " bps " ) to 75 % , from 79 % in Q2-2020 . • Achieved a 4.0 % increase in revenue for the same property portfolio . • Generated same property NOI growth of 4.5 % over Q2-2020 and increased the NOI margin by 20 bps to 63.4 % . ( 000's ) Property revenue Net operating income Net income FFO ( 1 ) FFO per unit ( diluted ) ( 1 ) AFFO per unit ( diluted ) ( 1 ) AFFO payout ratio - diluted ( 1 ) AFFO payout ratio- rolling 12 months ( 1 ) Same property apartment occupancy ( 2 ) Same property revenue growth 4.0 % 4.5 % 3.1 % 3.6 % Same property net operating income grow th ( 1 ) FFO and AFFO are defined in " Non - IFRS Measures " below . A reconciliation between net income and FFO is included on page 24 of the Q2-2021 Management Discussion and Analysis . A reconciliation from FFO to AFFO is included on page 25 of the Q2-2021 Management Discussion and Analysis . ( 2 ) Occupancy represents actual residential rental revenue , net of vacancy , as a percentage of gross potential residential rent . Debt Metrics As At Debt to total assets Three months ended June 30 , Six months ended June 30 , 2021 2020 Change 2021 2020 Change $ 70,300 $ 64,899 8.3 % $ 137,674 $ 128,193 7.4 % $ 44,596 $ 41,318 7.9 % $ 84,859 $ 79,154 7.2 % $ 136,672 $ 21,509 535.4 % $ 164,094 $ 60,011 173.4 % $ 29,369 $ 26,617 10.3 % $ 54,475 $ 49,630 9.8 % $ 0.27 $ 0.26 3.8 % $ 0.50 4.2 % $ 0.23 $ 0.22 4.5 % $ 0.42 % 79 % ( 400 ) bps 80 % 80 % -bps 96.9 % 96.7 % 20 bps $ 0.48 $ 0.40 5.0 % 75 82 % 85 % ( 300 ) bps Weighted average mortgage interest rate Weighted average years to debt maturity Interest coverage ratio June 30 , 2021 44.5 % 2.61 % 4.3 3.44x December 31 , 2020 44.6 % 2.69 % 4.6 3.36x Change ( 10 ) bps ( 8 ) bps ( 0.3 ) years 2.4 % Summary of Q2-2021 Results and Operations