Killam Apartment REIT (KMP-UN) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 financial results, with same-property apartment NOI up 4% and revenue up 3.6%, led by robust Atlantic Canada performance and occupancy at or above 97%.

• Net income for Q1 2026 was CAD 50.3 million, down from the prior year due to lower fair value gains.

• Portfolio resilience is supported by robust demand, leading to raised targets for same-property revenue and NOI for the year.

• Increased capital allocation to unit repurchases, deploying over CAD 6 million under the NCIB program in Q1 2026.

• Major developments, including Brightwood (Waterloo) and Eventide (Halifax), are on track, with Brightwood completed ahead of schedule and under budget.

Financial highlights

• Property revenue rose 3.9% year-over-year to CAD 96.7 million in Q1 2026.

• Same-property apartment NOI grew 4% year-over-year, with FFO and AFFO per unit at CAD 0.28 and CAD 0.24, respectively.

• AFFO payout ratio improved to 68%, a 200-bps improvement from Q1 2025.

• Same-property operating expenses rose 3.2%, mainly due to higher property taxes and wages, partially offset by lower utility costs.

• Debt as a percentage of total assets was 42.2% at March 31, 2026; debt to normalized EBITDA was 9.71x.

Outlook and guidance

• Same-property revenue and NOI growth targets for 2026 were raised to above 3.5%.

• Disposition target for non-core assets increased to up to CAD 150 million, with activity expected in H2 2026.

• Proceeds from asset sales will prioritize further NCIB investment.

• Interest expense growth anticipated to stabilize by 2028, improving FFO flow-through.

• On track to meet development targets, with Brightwood completed and Eventide expected by year-end.