Killam Apartment REIT (KMP-UN) Q2 2025 earnings summary

Executive summary

• Delivered FFO of $0.32 per unit in Q2 2025, up 6.7% year-over-year, with strong same property NOI growth and 6.0% same property revenue growth.

• AFFO per unit rose 8.0% to $0.27, with improved payout ratios and robust capital recycling funding acquisitions.

• Net income declined to $33.1 million from $114.5 million in Q2-2024, mainly due to lower fair value gains.

• Atlantic Canada, especially Nova Scotia and New Brunswick, led in occupancy, revenue, and NOI growth.

• Strategic targets remain on track, including $127.9M in non-core asset dispositions and debt/assets at 39.6%.

Financial highlights

• Same property NOI grew 6.7% overall, with 6.6% in apartments, 10.1% in manufactured home communities, and 3.4% in commercial properties.

• Same property revenue increased 6.0% year-over-year, with a 6.1% weighted average rental increase (13.0% on turnovers, 3.7% on renewals).

• AFFO payout ratio improved to 67%, a 300-bps improvement from Q2-2024.

• Apartment same property operating margin increased to 67.1%.

• Net operating income increased 6.9% to $64.1 million compared to Q2-2024.

Outlook and guidance

• Full-year 2025 same property NOI growth expected above 6%.

• Revenue growth target of 5–6% for 2025 reaffirmed.

• NOI growth expected to moderate to around 5% in the second half of 2025.

• Committed to investing a minimum of $6M in energy initiatives for 2025.

• Medium-term rent growth expected to stabilize at 3–4%, with 2026 likely above that range.