On December 22, 2016, Killam acquired a portfolio of five buildings in London which include 960, 970 & 980 Cheapside Street, 298 Fairview Avenue and 1447 Trafalgar Street. The acquisition cost was $13.4 million ($87,500 per unit). The acquisition was funded with $9.5 million in mortgage debt and cash-on-hand. Killam's London portfolio now totals 417 rental units and including this acquisition, Killam completed $70.0 million in acquisitions in 2016, in-line with Management's acquisition target to exceed $50 million for the year.

On January 16, 2017, Killam acquired Spruce Grove Lane Apartments, its second apartment property in Calgary. The property, located on a 3-acre site at 1802-92 Avenue SW in the Pump Hill neighbourhood, consists of 66 townhouse-style apartments. The acquisition cost was $12.8 million ($195,000 per unit). Management plans to increase the net operating income for this very well located asset with a combination of professional management and capital upgrades. This acquisition increases Killam's Calgary portfolio to 373 rental units.

"We are pleased to grow our rental portfolios in both London and Calgary," noted Philip Fraser, President and CEO. "We have been monitoring the Calgary rental market over the last year and Spruce Grove Lane Apartments, located in a sought-after residential neighbourhood, has great upside. We have the opportunity to add value and grow net operating income at this property."

About Killam Apartment REIT

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating and developing multi-family apartments and manufactured home communities. Killam's current portfolio includes $2 billion in real estate assets. Killam's strategy to maximize its value and long-term profitability includes concentrating on three key areas of growth: 1) increasing the earnings from its existing portfolio, 2) expanding its 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. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Killam Apartment REIT to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. 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 Apartment REIT does not undertake to update any of such forward-looking statements.