Dollar amounts are in thousands of Canadian dollars (except as noted) Management’s Discussion and Analysis Financial and Operational Highlights The following table presents a summary of Killam’s financial and operating performance for the year ended December 31, 2013 and 2012: 24 Killam ProPerties inc | 2013 Results of Operations  2013 2012 change Property revenue $141,112 $133,641 5.6% noi $83,040 $80,444 3.2% Income before fair value gains, loss on disposition and income taxes $40,064 $37,023 8.2% Fair value gains $13,070 $37,726 (65.4)% net income applicable to common shareholders $39,779 $51,727 (23.1)% earnings per share (basic) $0.74 $1.03 (28.2)% FFo $38,770 $36,096 7.4% FFo per share (basic) $0.72 $0.72 ‑% FFo per share (diluted) $0.71 $0.71 ‑% aFFo per share $0.60 $0.60 ‑% Weighted average shares outstanding (basic) 54,143 50,227 7.8% Same Store Results  2013 2012 change same store revenue $121,530 $119,390 1.8% Same store expenses (50,404) (47,994) 5.0% same store noi $71,126 $71,396 (0.4)% Balance Sheet  2013 2012 change Investment properties $1,476,116 $1,354,665 9.0% total assets $1,532,431 $1,443,128 6.2% Total liabilities $928,371 $854,692 8.6% total equity $604,060 $588,436 2.7% Ratios 2013 2012  change total debt to total assets 52.9% 51.6% 130 bps Weighted average mortgage interest rate 4.05% 4.48% (43) bps Weighted average years to debt maturity 3.9 3.4 0.5 years interest coverage 2.08x 2.00x 4.0% Debt service coverage 1.34x 1.30x 3.1%