Killam Apartment REIT expanded its portfolio by 415 units in 2023.

The additions resulted mainly from new developments, including Civic 66 in Kitchener, Ont., and the Governor in downtown Halifax, said the REIT in its latest quarterly report. Killam also acquired the remaining 90% of the second phase of the Nolan Hill project after initially owning 10%.

But dispositions ($168.7 million) heavily outweighed investments in developments ($94.1 million) and acquisitions ($69.3 million.)

Halifax-based Killam reported that its net income more than doubled to $266.5 million in 2023 from $122.5 million in 2022. The rise was attributed to fair-value gains on investment properties, totaling $174.2 million in 2023, which contrasted with fair value write-downs of $19.9 million in 2022.

The company’s weighted average cap rate for its apartment portfolio increased to 4.62% by the end of 2023, reflecting a 14-basis-point rise from the previous year.

In 2023, Killam diligently reduced its debt as a proportion of total assets, achieving a decrease of 240 bps to 42.9% at year-end 2023 from 45.3% at the conclusion of 2022.

The REIT decreased its variable rate debt by $150.4 million during the same period, utilizing proceeds from dispositions and mortgage refinancings to pay down the balance on Killam’s credit facility.

n Calgary, AB, following a previous 10% interest in the project.

Killam announced Friday that it finished construction on the Governor, a 12-unit luxury apartment located in downtown Halifax, during the third quarter The development includes 3,500 square feet of ground-floor commercial space.

The Governor is currently 42% leased.

Halifax-based Killam also completed the 169-unit Civic 66 development in Kitchener, Ont. The Civic is 54% leased and includes 3,000 sf of commercial space.

The two projects had a combined development cost of $94.1 million.

Killam has a 139-unit apartment project, known as the Carrick, under development in Waterloo, Ont. Construction is expected to be completed in the second half of 2025 at an expected cost of $83.5 million.

The REIT said it has a 10% stake in the second phase of the Nolan Hill development in northwest Calgary, which is slated for completion in December 2023.

“Killam has a commitment to purchase 100% of the development for $65.0 million,” said the REIT in a news release accompanying its third quarter earnings report.

In September, Killam sold a multi-residential complex in St. John, N.B., for $15 million.