Killam Apartment REIT Closes $98.1 Million Public Offering of Trust Units

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HALIFAX, NS, Feb. 4, 2022 /CNW/ - Killam Apartment REIT (TSX: KMP.UN) ("Killam") is pleased to announce that it has closed its previously announced public offering (the "Offering"), on a bought-deal basis, of trust units (the "Units") to the public at a price of $20.80 per Unit (the "Offering Price").  Killam issued 4,715,000 Units, including 615,000 Units pursuant to the exercise in full of the over-allotment option that was granted to the Underwriters (as defined below), for gross proceeds of approximately $98.1 million.

The Offering was made pursuant to an underwriting agreement with a syndicate of underwriters led by RBC Capital Markets, and including BMO Nesbitt Burns Inc., TD Securities Inc., CIBC World Markets Inc., Scotia Capital Inc., Desjardins Securities Inc., Canaccord Genuity Corp., National Bank Financial Inc., Sera Global Securities Canada LP, Echelon Wealth Partners Inc., iA Private Wealth Inc., Laurentian Bank Securities Inc. and Raymond James Ltd. (collectively, the "Underwriters").

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 will have access to more than $200 million of available capital through its credit facilities and cash on hand.

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 real estate investment trusts, 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 anticipated use of the net proceeds of the Offering, 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 Real Estate Investment Trust

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