KILLAMAPARTMENTREIT

Q1 2016ResultsConferenceCall

May 11, 20162 pm EST

Cautionary StatementThis presentation may contain forward looking statements with respect to KillamApartment REIT and its operations, strategy, financial performance and condition.These statements generally can be identified by use of forward looking words such as“may”, ”will”, “expect”, “estimate”, “anticipate”, “intends”, “believe” or “continue” orthe negative thereof or similar variations. The actual results and performance ofKillam Apartment REIT discussed herein could differ materially from those expressedor implied by such statements. Such statements are qualified in their entirety by theinherent risks and uncertainties surrounding future expectations. Important factorsthat could cause actual results to differ materially from expectations include, amongother things, general economic and market factors, competition, changes ingovernment regulation and the factors described under “Risk Factors” in Killam'annual information form and other securities regulatory filings. The cautionarystatements qualify all forward looking statements attributable to Killam ApartmentREIT and persons acting on its behalf. Unless otherwise stated, all forward lookingstatements speak only as of the date to which this presentation refers, and the partieshave no obligation to update such statements.

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• Generated FFO per unit of $0.18, a 20.0% increase from $0.15 in Q1-2015.

• AFFO payout ratio over last twelve months improved to 82%.

• Increased same property rental revenue by 1.5%.

• Achieved same property NOI growth of 8.0%.

• Continued interest rate savings on refinancing, reducing the weighted average interest rate on mortgage debt to 3.23%, from 3.27% at December 31, 2015.

Highlights from Q4-2015Highlights from Q1 2016

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Strong Customer Service

HighlightsfromKillam’s2015TenantSurvey

92%satisfied with their

apartment

90%satisfied with Killam

86%would recommendKillam to a friend or

family member

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9.7% FFO Per Share Growth 2015

$0.12

$0.15

$0.18

$0.10

$0.12

$0.16

Q1-2013 Q1-2014 Q1-2015

Q1 FFO & AFFO Per UnitFFO AFFO

20% FFO Per Unit Growth

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$0.57 $0.58 $0.58 $0.60 $0.60 $0.60

99%96% 96%

98%

88%

82%

70%

75%

80%

85%

90%

95%

100%

$0.56$0.56$0.57$0.57$0.58$0.58$0.59$0.59$0.60$0.60$0.61

AFFO Payout Ratio

Dividend AFFO Payout Ratio

88% AFFO Payout Ratio in 2015Improving Payout Ratio

82%AFFO

PayoutRatio

* Rolling 12 months

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8.0% Same Property NOI Growth

1.4%2.4%

1.5%

(6.1%)

0.3%

(5.6%)

8.4%

4.1%

8.0%

Same Property Results3 months ended March 31, 2016

Revenue Expenses NOI

Apartments MHCs Consolidated

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Strongest NOI Growth Since 2010

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-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Quarterly Change in Same Property NOI2012-2016

Averagequarterly NOI growth of 1.7% from 2012-2016.

Apartment Occupancy of 95.7% in Q1

95.2% 94.0% 94.2% 93.4%97.0% 97.0% 97.6% 98.1% 97.9%

95.5%

96.3%93.6% 95.1% 93.3%

96.0% 97.8% 97.3%

80.6%

96.9% 95.7%

Q1 Apartment Occupancy*Q1 2015 Q1 2016

(1) Killam has a 50% interest in one 307-unit asset in Calgary, acquired in December 2014.

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* Occupancy represents actual residential rental revenue net of vacancy as a percentage of gross potential residential rent fromstabilized properties.

Incentives Equal 0.75% of Potential Rents

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

Incentives as a Percentage of Rental RevenueSame Apartment Portfolio

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$0$2$4$6$8

$10$12$14$16$18$20

$ pe

r GJ

Commodity Charge per GJNova Scotia New Brunswick

Lower Natural Gas Prices in 2015 Vs. 2014Lower Natural Gas Prices in NB

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4.11%3.43% 3.64%

2.81% 2.56%3.10% 3.16% 3.30% 3.24%

0%

1%

2%

3%

4%

5%

6%

7%

8%

$0$20$40$60$80

$100$120$140$160$180$200

Inte

rest

Rat

e

Mor

tgag

e M

atur

ities

($M

)

Apartment Mortgage Maturities by YearMortgage Maturities by Year Weighted Average Interest Rate

5 year rate 10 year rate

Interest Expense Savings on Refinancings

Current rate for 5-year CMHC insured debt is approximately 1.7%.

Current rate for 10-year CMHC insured debt is approximately 2.4%. 12

Building Description: 142 units - 70 rental, 72 condoOwnership:Killam 50%, Urban Capital 50% Start Date: December 2014Projected Completion:Q3-2016Location:Downtown HalifaxConstruction Cost: $14.7 million, $210,000/door (Killam’s cost)Expected Yield: 5.5%Expected Value: 4.75% cap rate

Current Developments

Southport, Halifax, NSSouthport, Halifax

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Current Developments

Southport, Halifax, NSSouthport, Halifax

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Current Developments

Southport, Halifax, NSSouthport, Halifax

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Current Developments

Southport, Halifax, NSSouthport, Halifax

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The Alexander, HalifaxBuilding Description: 242 units24 storeys230 underground parking stalls6,200 square feet of retail spaceOwnership:Killam 50%, Partners 50% Start Date: Q3-2015Projected Completion:2017Location:Downtown Halifax across from the waterfrontConstruction Cost: $35 million, $276,000/ residential door (Killam’s cost)Expected Yield: 5.5%Expected Value: 4.75% cap rate

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The Alexander, Halifax

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Future DevelopmentsSaginaw 2, Cambridge, ON

Building Description: 93 units, 7 storeys

Start Date: Q3-2016Projected Completion:Q1-2018Location:Cambridge, ON

Saginaw 2, Cambridge

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Garden Park Apartments, HalifaxBuilding Description: 246 apartment units8,195 sq. ft. commercialLocation:1472 Martello Street, Halifax2016 Acquisition:51.0%$23.7 millionPrevious Purchases of Ownership Interest:2005 - 10.7% 2006 - 6.6% 2009 - 13.3% 2010 - 15.0% 2011 - 1.7% 2014 - 1.7%

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Kanata Lakes Apartments, OttawaBuilding Description: 173 units3rd of a five-building portfolio with a shared clubhouseLocation:1047 Canadian Shield Ave, Kanata

Previous Purchases:2011 – 25% of building I2014 – 50% of building II &additional 25% of building I2016 – 50% of building III

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Kanata Lakes Apartments, Ottawa

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KILLAMAPARTMENTREIT

Q1 2016ResultsConferenceCall

May 11, 20162 pm EST