Killam Apartment REIT (KMP-UN) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2-2026 operating performance with 3% same property NOI growth and 4.6% growth in the apartment portfolio, driven by high occupancy (97.6%) and robust demand, especially in Atlantic Canada.

• Net income rose to $63.3 million from $33.1 million year-over-year, primarily due to $30.8 million in fair value gains on investment properties.

• Major development milestones included substantial completion of Brightwood (Waterloo, 128 units, 45% leased) and ongoing progress at Eventide (Halifax) and Nolan Hill (Calgary).

• Strategic capital recycling included $51 million in year-to-date dispositions, with a 2026 target of $150 million+.

• Repurchased and cancelled 1.7 million Trust Units at a discount to NAV, reflecting disciplined capital allocation.

Financial highlights

• Consolidated property revenue reached $99.2 million, up 3.7% year-over-year; NOI rose 4.8% to $67.2 million.

• Same property apartment revenue and NOI up 3.8% and 4.6% year-over-year; weighted average rental increase on renewals and turns was 3.6%.

• FFO grew 0.5% to $39.6 million; AFFO increased 0.4% to $33.7 million; FFO per unit and AFFO per unit remained flat at $0.32 and $0.27.

• AFFO payout ratio stable at 67% for the quarter and 69% on a rolling 12-month basis.

• In-place rents remain about 10% below market, providing mark-to-market growth potential.

Outlook and guidance

• Confident in achieving at least 3.5% same property apartment NOI growth and 2.5% for the consolidated portfolio in 2026.

• Targeting $150 million in non-core asset sales for 2026; $51 million completed YTD.

• Brightwood expected to contribute to FFO growth in 2027 as it stabilizes; Eventide development in Halifax on track for Q4-2026 completion.

• Renewable energy investments progressing, with $1.2 million invested YTD toward a $6 million minimum target.

• NOI growth may be moderated by higher utility costs, especially water and natural gas in Nova Scotia.