Killam Apartment REIT Announces Increase to 2026 Capital Recycling Target, Suspension of DRIP and Planned Increase of NCIB Activity

HALIFAX, NS, March 24, 2026 /CNW/ - Killam Apartment REIT (TSX: KMP.UN) today announced plans to accelerate its portfolio optimization by increasing its 2026 capital recycling target. The existing non-core asset sales target has been increased from $50 million to $100-$150 million for the year. Proceeds from property dispositions are expected to be used for the repurchase and cancellation of Trust units through Killam's Normal Course Issuer Bid ("NCIB") program and on opportunistic acquisitions.

In order to maximize the effectiveness of the NCIB, Killam has suspended its Distribution Reinvestment Plan ("DRIP") effective April 24, 2026, until further notice. Unitholders enrolled in the DRIP will receive future distributions in cash, commencing with any distribution declared in April 2026. If Killam elects to reinstate the DRIP in the future, unitholders who were enrolled in the DRIP at the time of its suspension and remain enrolled at the time of its reinstatement will automatically resume participation in the DRIP.

"The higher disposition target reflects favourable transaction pricing and a clear, disciplined capital allocation strategy. While Killam's Trust units trade at a discount to its per unit net asset value, the NCIB remains a compelling opportunity, complemented by selective acquisitions that enhance portfolio quality and long‑term value," noted Philip Fraser, President and CEO.

Additionally, Killam is pleased to announce its March 2026 monthly distribution. The distribution of $0.06 per unit will be paid on April 15, 2026, to unitholders of record on March 31, 2026. Unitholders enrolled in the DRIP as of March 31, 2026 will receive Trust units in respect of the March 2026 distribution in accordance with the terms of the DRIP.

About Killam Apartment REIT

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential real estate investment trusts, owning, operating, managing and developing a $5.4 billion portfolio of apartments and manufactured home communities. Killam's strategy to enhance value and profitability focuses on three priorities: 1) increasing earnings from existing operations, 2) expanding the portfolio and diversifying geographically through accretive acquisitions which target newer properties and through the disposition of non-core assets, and 3) developing high-quality properties in its core markets.

For information, please contact:

Claire Hawksworth, CPA
Senior Manager, Investor Relations
[e-mail]
[phone]

Note: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain statements in this press release may constitute forward-looking statements. In some cases, forward-looking statements can be identified by the use of words such as "may", "will", "expect", "plan", "intend", or the negative of these terms or other comparable terminology, and by discussions of strategies that involve risks and uncertainties. Such forward-looking statements may include, among other things, statements regarding: Killam's capital targets, the use of proceeds from future dispositions, Killam's NCIB and the purchases thereunder, the effect of Killam's NCIB and capital recycling on Killam's portfolio and long-term value, the suspension of the DRIP and treatment of participants thereunder, Killam's future distributions, and Killam's priorities.

Readers should be aware that these statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated or implied, or those suggested by any forward-looking statements, including: competition; international and local economic conditions and the availability of capital to fund further investments in Killam's business. For more exhaustive information on these risks and uncertainties, readers should refer to Killam's most recently filed annual information form, as well as Killam's most recently filed management's discussion and analysis, each of which is available at www.sedarplus.ca. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements contained in this press release.

By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events may not occur. Although Management believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that future results, levels of activity, performance or achievements will occur as anticipated. Further, forward-looking statements speak only as of the date on which such statements are made and should not be relied upon as of any other date. While Killam anticipates that subsequent events and developments may cause Killam's views to change, Killam does not intend to update or revise any forward-looking statement, whether as a result of new information, future events, circumstances, or such other factors that affect this information, except as required by law. The forward-looking statements in this press release are provided for the limited purpose of enabling current and potential investors to evaluate an investment in Killam. Readers are cautioned that such statements may not be appropriate and should not be used for any other purpose. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

SOURCE Killam Apartment Real Estate Investment Trust