Large landlord reports biggest operating income increase for Halifax apartments in last 5 years
Killam took in $67.32 million in net operating income — revenues made after subtracting the expenses of operating a building — from its Halifax apartments last year. Net operating income is not the same as profit because it excludes expenses like mortgage payments.
"Halifax and Kitchener-Waterloo-Cambridge remain two of Killam's strongest markets," said executive vice-president Robert Richardson during the company's fourth-quarter earnings call with analysts on Feb. 13.
Killam owns 5,600 apartments in Halifax and more than 18,000 across Canada.
A key topic discussed on the earnings call was a sharp decline at the end of 2024 in Killam's estimate of how much higher market rents are compared to its average rent — a financial metric called the "mark-to-market spread."
Killam, like other landlords, tries to boost an apartment's rent to the higher market rate when new tenants move in. In Nova Scotia, the province's rent cap only applies to lease renewals.
"It's a … key part of their ability to grow revenue over time," said Neil Lovitt, a vice-president with real estate consulting company Turner Drake.
As the gap closes between Killam's rents and the market rate, there's less opportunity to raise rents.
"Killam's apartment portfolio rents have room to move [upward], likely in the 15 per cent range," Richardson said, referring to the company's apartments across Canada.
In its year-end report, the company said it partners with non-profits and governments to address the need for affordable housing.
The report points to stabilizing market rents as a reason for the decline in Killam's mark-to-market spread.
"We're getting to a point where … the growth in market rents have hit somewhat of a ceiling," said Lovitt, adding that this is a broad pattern both in Halifax and across Canada.
Rents in Nova Scotia increased by 4.8 per cent on average in December compared to the same month in 2023, according to Statistics Canada. That's down significantly from a peak rent inflation rate of 14.6 per cent in October 2023.
Still, Killam estimates that market rents in Halifax are about 25 per cent higher than its average rent — the highest differential among the regions it has apartments in, according to Killam's earnings call slide show.
Chief financial officer Dale Noseworthy said the company's success in raising rents to the market rate is also part of the reason why its opportunity to do so has decreased.
"We've achieved some really strong rents," Noseworthy said during the earnings call. "I'd say … both those markets [Halifax and Kitchener-Waterloo-Cambridge] are holding up very well."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Winnipeg Free Press
38 minutes ago
- Winnipeg Free Press
Brokenhead leadership opens referendum on possible partnership with silica mining company
Brokenhead Ojibway Nation has launched a referendum, asking members to vote on a prospective partnership with Sio Silica, an Alberta-based mining company seeking to drill thousands of wells in southeastern Manitoba to extract silica sand. The online referendum opened Friday and continues until next Friday. Members can also vote in person next Friday at Private Tom Chief Memorial Hall in the community, located about 100 kilometres northeast of Winnipeg. According to a notice sent to band members from Brokenhead's chief and council, Sio Silica has offered the First Nation five per cent of the profits from its mining operations. The share is estimated to total $20 million in annual revenue once the project is fully operational, the notice said. 'As part of our commitment to transparency and community involvement, Chief and Council are seeking direction from (Brokenhead Ojibway Nation) members on whether to continue this relationship and move forward with all related next steps,' reads the notice, obtained by the Free Press. A vote in favour of the partnership would result in the parties negotiating a final agreement and establishing a joint committee to provide oversight and enforcement over potential environmental impacts. A vote against the partnership means Brokenhead does not accept the current profit-sharing offer, the notice said. 'However, should the Province of Manitoba approve the project, (Brokenhead Ojibway Nation) will still be tasked with negotiating an impact benefit agreement, though the terms — particularly the profit sharing — may differ from the final offer,' the notice reads. 'Whichever direction the vote takes, (Brokenhead Ojibway Nation) leadership remains committed to negotiating an agreement that seeks to benefit the community as a whole.' Sio Silica has committed to supporting community members with employment, training and educational opportunities, the notice says. Brokenhead has nearly 3,000 people living on- and off- reserve, according to the federal government. The Free Press has reached out to Brokenhead Chief Gordon Bluesky for comment. Sio Silica previously proposed to drill up to 7,200 wells over 24 years in areas east and southeast of Winnipeg. It seeks to remove silica sand from about 50 metres below ground. The mineral is used to make a variety of products, including solar panels, new batteries and computer chips. Opponents of the plan have raised concerns about the projects potential impact on an underground aquifer, fearing operations could compromise its geological stability and impact water quality. Nearly 100,000 Manitobans source their drinking water from aquifers in the region. The NDP government denied Sio Silica's environmental licences in February 2024, saying the risks outweighed potential benefits. Sio Silica later announced it would take another shot at developing a silica sand mine and began meetings with Brokenhead leadership to pitch the project. A spokesperson for the province declined to comment Friday. Tyler SearleReporter Tyler Searle is a multimedia producer who writes for the Free Press's city desk. A graduate of Red River College Polytechnic's creative communications program, he wrote for the Stonewall Teulon Tribune, Selkirk Record and Express Weekly News before joining the paper in 2022. Read more about Tyler. Every piece of reporting Tyler produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press's tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Winnipeg Free Press
an hour ago
- Winnipeg Free Press
Imperial Oil reports $949M profit in second quarter
CALGARY – Imperial Oil Ltd. says its net income came in at $949 million during the second quarter, down from $1.13 billion a year earlier. Earnings per share amounted to $1.86 on a diluted basis, compared with $2.11 during the same period last year. The Calgary-based energy company reported $11.23 billion in total revenue and other income during the quarter, down from $13.38 billion during the same quarter last year. The company says upstream production reached 427,000 gross oil-equivalent barrels per day, marking the highest second quarter in over 30 years. Refinery throughput averaged 376,000 barrels per day during the quarter, compared with 387,000 barrels per day a year earlier. Imperial Oil CEO John Whelan says the company completed its heaviest planned turnaround quarter for both its upstream and downstream businesses. This report by The Canadian Press was first published Aug. 1, 2025. Companies in this story: (TSX:IMO)
Winnipeg Free Press
an hour ago
- Winnipeg Free Press
Hong Kong firm appeals for legal protection of investors as its Panama Ports contract faces lawsuits
HONG KONG (AP) — A subsidiary of a Hong Kong conglomerate entangled in U.S.-China tensions appealed on Friday for legal protection for businesses in Panama after the company's contract over its Panama Canal port assets has been faced with lawsuits in the Central American country. Respect for the rule of law is essential to assure businesses that Panama is a safe place to invest in, Panama Ports Company, under Hong Kong-based CK Hutchison Holdings, said in a statement. Panama's Comptroller General filed two lawsuits on Wednesday, seeking to declare unconstitutional a contract that granted the operation of ports at both ends of the canal to the Hong Kong subsidiary, and to nullify its renewal four years ago, saying it was 'abusive' of Panama's interests. In turn, Panama Ports Company said its operations have had a positive impact, from building world-class ports to creating more than 25,000 direct and indirect jobs and contributing billions of balboas — Panama's currency — to the country's economy. It said it wants to work with the government in Panama for a better future. 'Regarding the ongoing legal actions, we firmly believe that respect for legal protection and the rule of law are essential in order to provide businesses and investors with the certainty that Panama is a safe country to invest in,' it said. The company operates the ports of Balboa, in the Pacific, and Cristobal, in the Atlantic, under a concession contract approved in 1997 and renewed in 2021 for 25 more years. CK Hutchison is controlled by the family of Li Ka-shing, the southern Chinese city's richest man. Panama's comptroller authority in April said that an audit of Panama Ports Company found irregularities in the renewal of the concession. But the company denied allegations that it had failed to pay about $1.2 billion to the Central American country. CK Hutchison Holdings' initial plan, announced in March, to sell its port assets in dozens of countries to a group that includes the U.S. investment firm BlackRock Inc., also got caught up in tensions between Beijing and Washington. Monday Mornings The latest local business news and a lookahead to the coming week. U.S. President Donald Trump, who has alleged that China interferes with the canal, initially welcomed that plan. However, it apparently angered Beijing and drew a review by Chinese anti-monopoly authorities. After months of uncertainty, Hutchison said on Monday that it may seek a Chinese investor to join a consortium of buyers, which also includes BlackRock subsidiary Global Infrastructure Partners and Terminal Investment Limited, a subsidiary of the Mediterranean Shipping Company. The initial deal, valued at nearly $23 billion, including $5 billion in debt, would have given the consortium control over 43 ports in 23 countries, including the two at the Panama Canal. Panama Ports Company said Friday it would communicate with the Panamanian government 'at the appropriate time,' affirming that it believes engaging with the government 'is vital to discuss the way forward for' the company. Panama's government maintains it has full control over the canal and that the operation of the ports by Hutchison does not mean Chinese control of it.
