HALIFAX, NOVA SCOTIA--(Marketwired - April 17, 2017) - Killam Apartment REIT (TSX:KMP.UN) ("Killam") is pleased to announce that it has completed the previously announced redemption of its $46.0 million of 5.45% convertible debentures. Proceeds from Killam's $77 million public offering of trust units, which closed on March 13, 2017, were used to fund the redemption.
As well, On April 5, 2017, Killam completed the sale of 1440 Mayview Avenue and 1425 Rosenthal Avenue in Ottawa, Ontario, totalling 157 units, for $17.1 million. Originally acquired in 2012 as part of a four-building portfolio, the Mayview and Rosenthal Avenue properties did not meet management's return expectations and Killam plans to invest the $9.1 million net proceeds in newer properties.
"We are pleased to have completed the redemption of the convertible debentures," noted Philip Fraser, Killam's President and CEO. "In the last year we have replaced $103.5 million of convertible debenture debt with equity, thereby reducing Killam's average cost of debt and strengthening the balance sheet."
About Killam Apartment REIT
Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating and developing multi-family apartments and manufactured home communities. Killam's current portfolio includes $2.0 billion in real estate assets. Killam's strategy to maximize its value and long-term profitability includes concentrating on three key areas of growth: 1) increasing the earnings from its existing portfolio, 2) expanding its 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. 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.