Killam Properties Inc. Receives Shareholder Approval to Convert to Killam Apartment REIT

HALIFAX, NOVA SCOTIA--(Marketwired - Dec. 8, 2015) - Killam Properties Inc. (TSX:KMP) ("Killam") is pleased to announce that is has received shareholder approval of its plan of arrangement (the "Arrangement") to convert Killam from a corporation to a real estate investment trust ("REIT") to be named Killam Apartment REIT. Approval was received at a special meeting of shareholders held today in Halifax, Nova Scotia. Approximately 99.5% of the votes cast were voted in favour of the Arrangement.

Voting results for the approval of the Arrangement:

Killam will seek a final order from the Ontario Superior Court of Justice (Commercial List) approving the Arrangement at a hearing expected to be held on December 11, 2015. Subject to obtaining all required approvals and satisfying all required conditions, the REIT conversion is expected to become effective on January 1, 2016.

Corporate Profile

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.

Cautionary Statement

Certain statements in this press release may constitute forward-looking statements including the intention to complete the Arrangement and the timing thereof; which are based on our expectations, estimates, forecast and projections, which we believe are reasonable as of the current date. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect, including, but not limited to, the ability of the REIT to satisfy the conditions necessary to complete the Arrangement, including the requirements of the Toronto Stock Exchange and court approval, and the expected performance of the REIT following closing of the Arrangement. Additional, important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, local real estate conditions, including the development of properties in close proximity to Killam's properties, competition, availability and cost of additional real estate properties, changes in government regulation, dependence on tenants' financial condition, interest rates, the availability of equity and debt financing, environmental matters, tax related matters, and reliance on key personnel. There can be no assurances that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The factors identified above are not intended to represent a complete list of the factors that could affect Killam and the REIT. 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.