HALIFAX,
NS, Nov. 7, 2024 /CNW/ - Killam Apartment
REIT (TSX: KMP.UN) ("Killam" or the "REIT") reminds
unitholders to vote for the previously announced proposed plan of
arrangement (the "Arrangement") to simplify Killam's organizational structure by
eliminating Killam Properties Inc. ("KPI"), a wholly-owned
subsidiary of the REIT. Killam's
board of trustees (the "Board") has unanimously approved the
Arrangement and encourages its unitholders to vote in favour of the
Arrangement at the special meeting of unitholders to be held at
10:00 a.m. (Atlantic time) on
November 21, 2024 (the
"Meeting").
The Arrangement is expected to reduce or eliminate potential
corporate taxation in respect of income and capital gains allocated
to KPI, thereby increasing future cash flow for distribution to the
REIT. The Arrangement is also expected to reduce the complexity of
accounting and legal reporting and of income tax compliance
inherent in Killam's existing
structure. The REIT has received an advance income tax ruling of
the Canada Revenue Agency in connection with the Arrangement. If
approved by Killam's unitholders
at the Meeting, the Arrangement is expected to become effective on
or about November 30, 2024.
In advance of the Meeting and effective today, the Board has
approved an amended and restated Declaration of Trust, with the
goal of aligning with current corporate governance best
practices. In particular, Killam has removed the exclusive forum
provision that currently requires unitholders to bring any
litigation under the Declaration of Trust exclusively in
Ontario courts. As a result of the
amendment, unitholders have the ability to bring such claims in any
proper jurisdiction of their choosing. While this amendment is not
necessary to effect the Arrangement, the Board believes it is not
prejudicial to, and expands the rights of, its unitholders and
aligns with best practices. No other amendments to Killam's current Declaration of the Trust have
been made at this time and the Declaration of Trust, as amended
effective today, is available on SEDAR+ at sedarplus.ca.
In connection with the Arrangement, unitholders who vote in
favour of the Arrangement will also be authorizing and approving
the adoption of a further Amended and Restated Declaration of
Trust, which includes amendments to the REIT's Declaration of Trust
necessary to effect the Arrangement and other amendments of a
minor, housekeeping or clerical nature that are not prejudicial to
the Unitholders. Further details on the Arrangement, and the
related amendments to Killam's
Declaration of Trust, are set out in Killam's information circular dated
October 18, 2024 which has been
mailed to unitholders and is available on SEDAR+ at sedarplus.ca
and Killam's website at
killamreit.com/investors.
The amendments that are being made in connection with the
Arrangement remain subject to unitholder approval at the Meeting
and will only become effective when the Arrangement is
implemented.
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 $5.3 billion portfolio of apartments and
manufactured home communities. Killam's strategy to drive value and
profitability focuses on three priorities: (1) increase earnings
from the existing portfolio; (2) expand the portfolio and diversify
geographically through accretive acquisitions, targeting newer
properties and dispositions of non-core assets; and (3) develop
high-quality properties in its core markets.
For information, please contact:
Claire Hawksworth, CPA
Senior Manager, Investor Relations
chawksworth@killamREIT.com
(902)
442-5322
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," "intend," "plan," "anticipate," "believe," "continue,"
"remain," 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 regarding: the Arrangement and the
timing and benefits thereof; the Meeting and the timing thereof;
the effect of the Arrangement on Killam's unitholders; amendments to
Killam's Declaration of Trust, the
terms thereof and the impact on Killam's unitholders; and Killam's priorities.
Readers should be aware that these statements are subject to
known and unknown risks, uncertainties and other factors that could
cause actual results to differ materially from those anticipated or
implied, or those suggested by any forward-looking statements,
including: Killam's ability obtain
the necessary regulatory and third-party approvals, including,
among others, court, unitholder and Toronto Stock Exchange
approval; risks related to tax legislation and the interpretation
and application thereof; the effects and duration of local,
international and global events, any government responses thereto
and the effectiveness of measures intended to mitigate any impacts
thereof; competition; legislation and the interpretation and
enforcement thereof; litigation to which Killam may be subject; global, national and
regional economic conditions (including interest rates and
inflation); and the availability of capital to fund further
investments in Killam's business.
For more exhaustive information on these risks and uncertainties,
readers should refer to Killam's
most recently filed annual information form, Killam's most recently filed MD&A, as well
as the Circular, each of which is available on SEDAR+ at
www.sedarplus.ca. Given these uncertainties, readers are cautioned
not to place undue reliance on any forward-looking statements
contained in this press release. By their nature, forward-looking
statements involve numerous assumptions, inherent risks and
uncertainties, both general and specific, that contribute to the
possibility that the predictions, forecasts, projections and
various future events may not occur. Although management believes
that the expectations reflected in the forward-looking statements
are reasonable, there can be no assurance that future results,
levels of activity, performance or achievements will occur as
anticipated. 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. While Killam anticipates that subsequent events and
developments may cause its views to change, Killam does not intend to update or revise any
forward-looking statement, whether as a result of new information,
future events, circumstances, or such other factors that affect
this information, except as required by law.
The forward-looking statements in this press release are
provided for the limited purpose of enabling current and potential
investors to evaluate an investment in Killam. Readers are cautioned that such
statements may not be appropriate and should not be used for any
other purpose. The forward-looking statements contained in this
press release are expressly qualified by this cautionary
statement.
SOURCE Killam Apartment Real Estate Investment Trust