Killam Apartment REIT Announces Increase in Size to Previously Announced Public Offering of Trust Units from $50 Million to $60 Million

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HALIFAX, NS, July 21, 2020 /CNW/ - Killam Apartment REIT ("Killam") (TSX: KMP.UN) is pleased to announce that, due to strong demand, it has increased the size of its previously announced public offering of trust units (the "Units"). Killam has reached an agreement with a syndicate of underwriters led by RBC Capital Markets to issue to the public, on a bought deal basis, 3,510,000 Units for $17.10 per Unit for gross proceeds of $60,021,000 (the "Offering").

Killam has granted the Underwriters an over-allotment option for the purposes of covering the Underwriters' over-allocation position for an additional 526,500 Units, exercisable up to 30 days after closing of the Offering.

Killam intends to use the net proceeds from the Offering to repay amounts outstanding on its credit facility (current outstanding balance of approximately $40 million), to fund future acquisitions and developments and for general trust purposes.

Upon completion of the Offering and the use of proceeds, Killam expects to have access to approximately $100 million of available capital through its credit facilities. In addition, the equity component in the majority of Killam's active development projects has been substantially funded and remaining construction costs are expected to be funded through construction financing facilities.

Killam's rent collection experience since the onset of the COVID-19 pandemic has remained strong. As of the date of this press release, Killam has collected 98.0% of total rents for June, including 99.7% of apartment, 98.7% of MHC and 77.3% of commercial rents. Killam is actively following up with those accounts in arrears. July rent collection is generally in line with the average rent collected by the 20^th day of the month.

The Units issued under the Offering will be offered pursuant to the REIT's final short form base shelf prospectus dated December 2, 2019. The terms of the Offering will be described in a prospectus supplement to be filed with securities regulators in each of the provinces of Canada and may also be offered by way of private placement in the United States.  Closing of the Offering is expected to take place on or about July 29, 2020, and is subject to customary closing conditions, including the approval of the Toronto Stock Exchange.

This press release is not an offering of securities for sale in the United States. The Units being offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and state securities laws. Accordingly, the Units may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act.

About Killam Apartment REIT

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating and developing a $3.4 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, with an emphasis on newer properties, and 3) developing high-quality properties in its core markets.

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 the size and anticipated closing date of the Offering, the anticipated use of the net proceeds of the Offering, liquidity and rental collection performance, 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 detailed information on these risks and uncertainties, including the effects of the evolving COVID-19 pandemic on the performance of the REIT, you should refer to our most recently filed annual information form and first quarter 2020 management, discussion & analysis, 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.

SOURCE Killam Apartment REIT

Philip Fraser, President & CEO, [email protected], [phone] or Nancy Alexander, CPA, CA, Vice President, Investor Relations & Sustainability, [email protected], [phone]