Killam Apartment REIT Streamlines Operations: Arrangement Completed

Killam Apartment REIT (TSX: KMP.UN) has successfully concluded its previously announced plan of arrangement, simplifying its organizational structure and paving the way for operational efficiency gains. The Arrangement, which became effective on November 30, 2024, eliminates Killam Properties Inc. (KPI), a wholly-owned subsidiary of the REIT, from the REIT's structure. This move is expected to bring about significant benefits, including reduced corporate taxation, streamlined reporting, and enhanced operational efficiency.

The completion of the Arrangement does not alter Killam's strategy, portfolio, or operations. Unitholders continue to hold the same number, type, and percentage of outstanding units as they did prior to the Arrangement. The total number of units outstanding remains unchanged, and the REIT's trust units continue to be listed on the TSX with the same CUSIP number.

The Arrangement is anticipated to reduce or eliminate potential corporate taxation on income and capital gains allocated to KPI, thereby increasing future cash flow for distribution to unitholders. Additionally, the simplification of Killam's structure is expected to reduce the complexity of accounting and legal reporting, as well as income tax compliance. By managing its portfolio directly, Killam can now focus more resources on its core business, leading to operational efficiency gains and cost savings.

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential real estate investment trusts, owning, operating, and developing a $5.3 billion portfolio of apartments and manufactured home communities. The REIT's strategy to drive value and profitability focuses on three strategic priorities: increasing earnings from the existing portfolio, expanding the portfolio through accretive acquisitions, and developing high-quality properties in its core markets.