KILLAM APARTMENT REIT ANNOUNCES $85 MILLION BOUGHT DEAL PUBLIC OFFERING OF TRUST UNITS

/NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

HALIFAX, NS, Jan. 26, 2022 /CNW/ - Killam Apartment REIT ("Killam" or the "REIT") (TSX: KMP.UN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets to issue to the public, on a bought deal basis, 4,100,000 trust units (the "Units") for $20.80 per Unit for gross proceeds of $85,280,000 (the "Offering").

Killam has granted the Underwriters an over-allotment option for the purposes of covering the Underwriters' over-allocation position for an additional 615,000 Units, exercisable up to 30 days following the 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 $60 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 $190 million of available capital through its credit facilities and cash on hand.

"During 2021, we acquired approximately $400 million of properties, of which $311 million were outside of Atlantic Canada." stated Philip Fraser, President and CEO. "We are looking forward to exciting growth opportunities in 2022 through continued organic results, and active acquisition and development pipelines."

The Units issued under the Offering will be offered pursuant to the REIT's final short form base shelf prospectus dated January 6, 2022. 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 February 4, 2022, 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 $4.4 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 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", "should", "expect", "plan", "anticipate", "believe", "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 relating to the size, anticipated closing date and terms of the Offering, the anticipated use of the net proceeds of the Offering, the filing and contents of a prospectus supplement, the REIT's anticipated access to capital and liquidity, and growth opportunities. These forward-looking statements 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, including the effects of the evolving COVID-19 pandemic on the performance of the REIT; the effectiveness of measures intended to mitigate the impact of COVID-19 and any variants thereof; competition; national and regional economic conditions and the availability of capital to fund further investments in Killam's business. For more detailed information on these and other risks and uncertainties, you should refer to our most recently filed annual information form and management's discussion & analysis, each of which is available at www.sedar.com. Readers 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. 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]