Killam Apartment REIT has sold a 60-unit apartment building in Halifax for $8.2 million.

The buyer was not disclosed. The transaction yielded net cash proceeds of $4.5 million, supporting the REIT’s ongoing disposition strategy, the REIT said.

The deal closed shortly after the the third quarter ended. During the quarter, Killam completed the sale of three properties, totalling 144 units, for gross proceeds of $17.9 million.

Killam’s total dispositions for the year reached $39.5 million. The REIT’s is deploying a capital recycling program focused on divesting non-core or slower-growth assets, especially those with higher capital or carbon demands.

Most of the year-to-date dispositions have occurred in Atlantic Canada, aligning with Killam’s strategy of geographic diversification.

Currently, 39% of Killam’s net operating income (NOI) originates from outside Atlantic Canada, surpassing its 2024 target of 38%. Killam plans to reach a minimum of $50 million in dispositions by year-end, with proceeds directed toward reducing its credit facility’s balance, funding future developments, supporting strategic acquisitions, and potentially repurchasing trust units through its normal-course issuer bid (NCIB) program.

“We remain committed to strengthening our balance sheet and are pleased with the progress achieved this year,” said Philip Fraser, Killam’s president and CEO.

Meanwhile, during the third quarter, Killam invested $2 million in energy initiatives, including the installation of photovoltaic (PV) solar panels, new boilers and heat pumps, and roofing upgrades across the portfolio. This brings Killam’s total investment in energy initiatives to $4.4 million year-to-date, the REIT said.

At the end of the quarter, Killam had 22 PV solar arrays producing power, with an expected 2,100 megawatts of of annual energy production. Also during the quarter, Killam achieved certification for Civic 66 in Kitchener, Ont., through the Certified Rental Building program and successfully certified 100 and 200 Eagle Street in Kitchener, as well as Saginaw Park and Saginaw Gardens in Cambridge, Ont., (a total of 611 units.)

Pictured: Killam’s Governor apartment complex in Halifax.

Rendering: Killam Apartment REIT