Killam Properties Inc. announces a 3.4% increase in its annual dividend and $15 million in acquisitions
HALIFAX, Dec. 23, 2013 /CNW/ - Killam Properties Inc. (TSX: KMP) ("Killam" or the "Company") is pleased to announce that today its board of directors approved a 3.4% increase to the Company's annual dividend to $0.60 per share from $0.58 per share. The dividend, paid monthly, will be $0.05 per share per month, up from $0.04833 per share per month. The increase will become effective for the January 2014 dividend, to be paid in February 2014.
Killam also has completed three recent acquisitions for a total purchase price of $14.7 million, ending 2013 with $120.8 million of acquisitions, in-line with its target for the year. The properties, located in New Brunswick, Prince Edward Island and Nova Scotia, complement Killam's existing portfolio.
On December 5, 2013, Killam purchased Cameron Arms Apartments, an 81-unit property with 4,880 square feet of commercial space. The building is centrally located in Moncton, New Brunswick, adjacent to Killam's Cambridge Place Apartments. With concrete construction, underground parking and amenity space including an indoor pool and social rooms, Cameron Arms is a unique asset in the Moncton market. The building includes 45 one-bedroom units and 36 two-bedroom units and has an average monthly rent of $983. The purchase price of $9.7 million represents a capitalization rate of 5.6% and was satisfied with cash. A mortgage is expected to be placed on the property in 2014.
Killam acquired Northgate Apartments, a 38-unit building in Summerside, Prince Edward Island, on December 6, 2013. Located in close proximity to Killam's Nevada Court Apartments, Northgate Apartments was built in 2006 and has an average monthly rent of $868. The purchase price of $3.7 million represents a capitalization rate of 6.4% and was satisfied with the assumption of a first mortgage at 2.49%, the issuance of $0.8 million of shares and the balance in cash.
In addition, on December 20, 2013, Killam completed the acquisition of a manufactured home community ("MHC") in Antigonish, Nova Scotia. The 65-site property, Shamrock Estates, was acquired for $1.3 million in cash, representing a capitalization rate of 7.0%. The acquisition complements Killam's three other MHC communities in Antigonish.
"We've completed the year with three acquisitions in our existing markets," noted Philip Fraser, Killam's President and CEO. "Each property enhances our portfolio in its respective market and allows us to benefit from our established property management infrastructure."
"The Company's portfolio has grown by $189 million in 2013 through acquisitions and developments, the financial benefit of which we expect to see in the year ahead. The board's decision to increase the dividend for 2014 reflects this growth. In addition, with cash on hand from the recently completed sale of our New Brunswick MHC portfolio, we have a healthy acquisition pipeline in Ontario. We look forward to announcing further transactions in 2014."
About Killam Properties Inc.
Killam Properties Inc., based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating and developing multi-family apartments and manufactured home communities.
Note: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain statements in this report may constitute forward-looking statements relating to our operations and the environment in which we operate, which are based on our expectations, estimates, forecast and projections, which we believe are reasonable as of the current date. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Killam to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For more exhaustive information on these risks and uncertainties, you should refer to our most recently filed annual information form which is available at www.sedar.com. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made and should not be relied upon as of any other date. Other than as required by law, Killam does not undertake to update any of such forward-looking statements.
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