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
SOURCE: Killam Properties Inc.
For further information:
President & CEO
Vice President, Investor Relations & Corporate Planning