Killam Apartment REIT (KMP-UN) Q3 2025 earnings summary

Executive summary

• Achieved 5.5% same property NOI growth and 3.0% FFO per unit increase year-over-year for Q3-2025, with property revenue up 5.0% to $98.5M and AFFO per unit up 3.6%.

• Net income for Q3-2025 was $41.9 million, down from $62.7 million in Q3-2024, mainly due to a fair value loss on investment properties.

• Year-to-date same property NOI growth was 6.6%, with a full-year 2025 target of approximately 6.0%.

• Asset dispositions totaled $147.6 million year-to-date, meeting the upper end of the $100–$150 million capital recycling target.

• Development projects remain on track, with The Carrick reaching 80% leasing and two additional projects scheduled for 2026 completion.

Financial highlights

• FFO per unit (diluted) was $0.34, up 3.0% from Q3-2024; AFFO per unit (diluted) was $0.29, up 3.6%.

• Same property NOI growth by segment: Apartment 5.5%, MHC 7.5%, Commercial 3.2% for Q3-2025.

• Combined weighted average rental increase was 4.7%, with a 9.2% lift on turned units and 3.4% on renewals.

• AFFO payout ratio improved to 69% (down from 72% in Q3-2024).

• Debt as a percentage of total assets was 40.5% at September 30, 2025.

Outlook and guidance

• NOI growth for 2025 projected at approximately 6%, with similar steady growth expected into 2026.

• Management anticipates continued FFO per unit growth from new developments and acquisitions.

• Expects to break ground on at least one new development in Q4-2025.

• Leasing spreads expected to remain stable or trend slightly lower, with incentives rising seasonally but remaining targeted.

• Turnover rate expected to end 2025 at 22%, up from 18% in 2024, and may continue to rise next year.