HALIFAX,
NS, Nov. 21, 2024 /CNW/ - Killam Apartment
REIT (TSX: KMP.UN) ("Killam" or the "REIT") is pleased
to announce that the previously announced proposed plan of
arrangement (the "Arrangement") was approved today by
approximately 98.41% of votes cast by the REIT's trust unitholders
and special voting unitholders, voting together as a single class.
The Arrangement will simplify Killam's organizational structure by
eliminating Killam Properties Inc. ("KPI"), a wholly-owned
subsidiary of the REIT. 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.
Killam will seek a final order
from the Ontario Superior Court of Justice (Commercial List)
approving the Arrangement at a hearing expected to be held on
November 26, 2024. Subject to
obtaining the approval of the Court, Killam expects the Arrangement will become
effective on November 30, 2024.
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; obtaining the necessary Court approval
and the timing thereof; 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 approvals; risks related to tax
legislation and the interpretation and application 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 Killam's management information circular dated
October 18, 2024, 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 contained in this press release are expressly qualified
by this cautionary statement.
SOURCE Killam Apartment Real Estate Investment Trust