Maritimes
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Killam Expects Atlantic Canada Markets to Outperform
Killam Apartment REIT expects its Maritimes assets to continue to outperform those in other markets.
The REIT’s New Brunswick and Nova Scotia properties led the way in occupancy, rental-rate growth and NOI growth,” Dale Noseworthy, Killam’s CFO, told analysts on a second-quarter earnings call.
“Looking ahead, we expect this trend to continue as Killam’s Atlantic Canadian portfolio benefits from a diversified portfolio, offering competitive and affordable rental alternatives,” said Noseworthy.
Although rent growth has slowed, Killam anticipates that tenant turnover will offset the decline.
CEO Philip Fraser said on the call that much of the turnover will occur in units that have a “good, healthy mark-to-market.”
(In this case, mark-to-market refers to the fair value of assets based on current market prices.)
Killam expects that its overall mark-to-market will rise to 20% by year-end 2025 from its current 13%.
Pictured: Killam’s Governor apartment complex in Halifax.
Rendering: Killam Apartment REIT
