Notes to the Consolidated Financial Statements Dollar amounts are in thousands of Canadian dollars (except share and per share amounts) 5.  Investment Properties (continued) Sensitivity Analysis The investment property segment defined as Other consists of one commercial property of which the Company has a 50% ownership. The  property has a fair value of $2.2 million (December 31, 2012 ‑ $2.1 million). IPUC includes land held for future development, which is recorded at a fair value of $2.8 million (December 31, 2012 ‑ $5.2 million) and  properties under construction of $21.6 million (December 31, 2012 ‑ $52.7 million). Fair value cannot be reliably determined for properties  under construction as the projects are in the early stages of development and therefore IPUC is recorded at cost. The significant unobservable inputs used in the fair value measurements categorized within Level 3 of the fair value hierarchy include  cap‑rates, vacancy rates and management fee rates. Investment property valuations are most sensitive to changes in the cap‑rate. The  cap‑rate assumptions for the investment properties are included in the following table: The quantitative sensitivity analysis shown below illustrates the value increase or decrease in the Company’s portfolio of properties given  the change in the noted input. December 31, 2013 December 31, 2012 Low High Effective  Weighted  Average low High Effective  Weighted  average Apartments 5.88% 6.02% Halifax 5.15% 7.00% 5.87% 5.30% 7.00% 5.85% moncton 5.56% 8.00% 5.94% 6.00% 8.00% 6.30% Fredericton 5.15% 6.25% 5.93% 5.75% 6.50% 6.30% saint John 6.25% 6.75% 6.63% 6.00% 6.75% 6.45% st. John’s  5.15% 6.25% 5.94% 6.25% 7.00% 6.36% Charlottetown 5.65% 6.00% 5.88% 5.75% 6.50% 6.15% ontario 4.50% 5.25% 5.26% 4.50% 5.25% 5.25% Other Atlantic 6.00% 7.00% 6.76% 6.25% 7.00% 7.31% MHCs 6.86% 7.04% ontario 7.00% 8.00% 7.09% 7.00% 8.50% 7.34% Nova Scotia 6.00% 7.50% 6.61% 6.50% 7.50% 6.96% new Brunswick 8.25% 8.25% 8.25% 6.50% 8.50% 6.87% newfoundland and labrador 7.25% 7.25% 7.25% 7.50% 7.50% 7.50% 80 Killam ProPerties inc | 2013 Class of property Capitalization rate Vacancy rate Management fee  rate 10 basis  points increase 10 basis  points decrease 1% increase/  decrease in  vacancy 1% increase/  decrease in  management fees apartments  $(22,408) $22,947 $21,055 $22,206 mHcs  $(1,659) $1,708 $1,483 $1,932