Killam Apartment REIT (KMP-UN) Q3 2026 earnings summary

Executive summary

• Q3 same-property NOI grew 2.2%; apartment NOI rose 3.0% and MHC NOI 9.0%, while commercial NOI declined 17.6% after the Sun Life lease expiry.

• YTD apartment NOI growth of 3.8% kept the increased FY 2026 target of above 3.5% in reach; consolidated YTD NOI growth was 3.0% against a 2.5% target.

Financial highlights

• Property revenue rose 2.4% YoY to $100.8M and NOI increased 2.3% to $69.3M; net income rose 23.2% to $51.6M, mainly on a $10.0M fair value gain versus a $4.8M loss in Q3 2025.

• Q3 FFO and AFFO per diluted unit were $0.34 and $0.29, respectively, both unchanged YoY; YTD FFO and AFFO per unit were each $0.93 versus $0.79 in 2025.

• Excluding Westmount Place vacancy, Q3 FFO per unit would have increased 2.2% YoY; the vacancy reduced FFO by $840,000 in Q3 and $1.7M YTD.

Outlook and guidance

• FY 2026 same-property apartment NOI growth target is above 3.5%; consolidated NOI growth target is above 2.5%.

• Management expects 2027 blended rent growth of 3%–3.5%; renewal limits in some regions and Halifax contribute to the range.

• October leasing remained robust despite seasonal moderation; management was positive on Q4 and 2027.

• Incentives are expected near 1% of revenue, mainly in Ontario and Alberta; controlled operating costs are targeted to rise 3%–4%, with property tax and water costs pressure points.

• 2026 capital recycling target is up to $150M; renewable investment target is at least $6.0M, with $4.6M invested YTD in solar PV, automation, heat pumps and other upgrades.