HALIFAX, NS, May 7, 2024 /CNW/ - Killam Apartment REIT (TSX:KMP) ("Killam") today reported its results for the three months ended March 31, 2024. "We are pleased to begin the year with another quarter of strong operating and financial results. We delivered double-digit same property NOI [net operating income] growth, driven by robust top-line growth and effective cost containment," noted Philip Fraser, President and CEO. "We have made progress toward our strategic targets for the year. Following Q1 same property NOI growth of 10.3%, we have increased our same property NOI growth target for 2024 to exceed 8%. Developments are an important strategic priority, and they are advancing smoothly.  Lease up of the three developments completed in 2023 are on target for full occupancy by early Q3 and are expected to augment FFO [funds from operations] per unit growth in the second half of 2024 and the first half of 2025.  In addition, Killam broke ground this quarter on Eventide, a 55-unit building in Halifax, and our 139-unit development in Waterloo, The Carrick, is expected to be completed in the summer of 2025. "Killam is also pleased to report continued strengthening of its balance sheet.  We ended the first quarter with debt as a percentage of total assets of 42.1%, representing the lowest level in our history.  Debt to normalized EBITDA [earnings before interest, tax, depreciation and amortization] also improved to 10.16x compared to 11.08x on March 31, 2023.1" Q1-2024 Financial & Operating Highlights Reported net income of $127.2 million, an increase of $43.8 million compared to $83.5 million in Q1-2023. The growth in net income is primarily attributable to $116.3 million of fair value gains on investment properties this quarter, driven by strong NOI growth. Generated NOI of $55.0 million, an 8.3% increase from $50.8 million in Q1-2023. Earned FFO per unit of $0.26, a 4.0% increase from $0.25 in Q1-2023.2 Adjusted funds from operations (AFFO) per unit of $0.21, compared to $0.20 in Q1-20233, and reduced the rolling 12-month AFFO payout ratio by 200 basis points (bps) to 72%, from 74% in Q1-2023.2 Achieved a 5.9% increase in revenue for the same property portfolio compared to Q1-2023. Generated 10.3% same property NOI growth.4 ______________________________ 1  Net debt to normalized adjusted EBITDA is a non-IFRS ratio. An explanation of the composition of this measure can be found under the heading "Non-IFRS Ratios." 2   FFO, AFFO, FFO per unit, AFFO per unit and AFFO payout ratio are non-International Financial Reporting Standards (IFRS) measures that do not have a standardized meaning according to IFRS and, therefore, may not be comparable to similar measures presented by other issuers. For information regarding non-IFRS measures, including reconciliations to the most comparable IFRS measure, see "Non-IFRS Measures." 3 The maintenance capital expenditures used to calculate AFFO and AFFO per unit (diluted) for Q1-2023 were updated to reflect the maintenance capex reserve of $1,025 per apartment unit, $300 per manufactured home community (MHC) site and $1.00 per square foot (SF) for commercial properties that were used in the calculation for the 12 months ended December 31, 2023. 4 Same property NOI and same property revenue are supplementary financial measures. An explanation of the composition of these measures can be found under the heading "Supplementary Financial Measures." Three months ended March 31, (000s) 2024 2023 Change Property revenue $87,505 $84,895 3.1 % Net operating income $55,020 $50,815 8.3 % Net income $127,240 $83,460 52.5 % FFO (1) $31,380 $30,283 3.6 % FFO per unit (diluted) (1) $0.26 $0.25 4.0 % AFFO per unit (diluted) (1)(3) $0.21 $0.20 5.0 % AFFO payout ratio – diluted (1)(3) 83 % 85 % (200) bps AFFO payout ratio – rolling 12 months(1)(3) 72 % 74 % (200) bps Same property apartment occupancy (2) 98.2 % 98.3 % (10) bps Same property revenue growth (2) 5.9 % 5.4 % 50 bps Same property NOI growth 10.3 % 6.3 % 400 bps (1) FFO, FFO per unit, AFFO and AFFO per unit are non-IFRS financial measures. A reconciliation from net income to FFO and a reconciliation from FFO to AFFO can be found under the heading "Non-IFRS Reconciliation." (2) Same property apartment occupancy and same property revenue are supplementary financial measures. An explanation of the composition of these measures can be found under the heading "Supplementary Financial Measures." (3) The maintenance capital expenditures used to calculate AFFO, AFFO per unit (diluted) and AFFO payout ratio for Q1-2023 were updated to reflect the maintenance capex reserve of $1,025 per apartment unit, $300 per MHC site and $1.00 per SF for commercial properties that were used in the  calculation for the 12 months ended December 31, 2023. Debt Metrics as at March 31, 2024 December 31, 2023 Change Debt to total assets 42.1 % 42.9 % (80) bps Weighted average mortgage interest rate 3.23 % 3.22 % 1 bps Weighted average years to debt maturity 3.7 3.9 (0.2) years Interest coverage ratio(1) 3.06x 3.10x (1.3) % (1) Interest coverage ratio is a non-IFRS ratio. An explanation of the composition of this measure can be found under the heading "Non-IFRS Ratios." Summary of Q1-2024 Results and Operations Same Property NOI Growth of 10.3% Drives Margin ExpansionKillam achieved same property NOI growth of 10.3% and an operating margin increase of 250 bps ...