KMP.UN Killam Apartment REIT

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Killam Apartment REIT ("Killam") (TSX:KMP.UN) is pleased to announce that it has reached an agreement with a syndicate of underwriters led by RBC Capital Markets to issue to the public, subject to regulatory approval, on a bought deal basis, 3,345,000 trust units (the "Units") for $14.95 per Unit for gross proceeds of $50,007,750 (the "Offering").

Killam has granted the Underwriters an over-allotment option for the purposes of covering the Underwriters' over-allocation position for an additional 501,750 Units, exercisable up to 30 days after closing of the Offering.

Killam intends to use the net proceeds from the Offering to fully repay its credit facility (current outstanding balance of approximately $30 million), to fund future acquisitions and developments and for general trust purposes.

Killam will, within the next few days, file with the securities commissions and other similar regulatory authorities in each of the provinces of Canada, excluding Quebec, a preliminary short form prospectus relating to the issuance of the Units. Closing of the Offering is expected to take place on or about June 26, 2018, and is subject to customary closing conditions, including the approval of the Toronto Stock Exchange.

This press release is not an offering of securities for sale in the United States. The Units being offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and state securities laws. Accordingly, the Units may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act.

About Killam Apartment REIT

Killam Apartment REIT, based in Halifax, Nova Scotia, is one of Canada's largest residential landlords, owning, operating, managing and developing a $2.5 billion portfolio of apartments and manufactured home communities. Killam’s strategy to enhance value and profitability focuses on three priorities: 1) increasing earnings from existing operations, 2) expanding the portfolio and diversifying geographically through accretive acquisitions, with an emphasis on newer properties, and 3) developing high-quality properties in its core markets.

For information, please contact:

Philip FraserPresident & CEOpfraser@killamreit.com(902) 453-4536

or

Nancy Alexander, CPA, CA Senior Director, Investor Relations & Performance Analyticsnalexander@killamREIT.com(902) 442-0374

Note: The Toronto Stock Exchange has neither approved nor disapproved of the information contained herein. Certain statements in this report may constitute forward-looking statements relating to the size and anticipated closing date of the Offering and the anticipated use of the net proceeds of the Offering, which are based on our expectations, estimates, forecast and projections, which we believe are reasonable as of the current date. Such forward-looking statements involve risks, uncertainties and other factors which may cause actual results, performance or achievements of Killam to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For more exhaustive information on these risks and uncertainties, you should refer to our most recently filed annual information form which is available at www.sedar.com. Readers, therefore, should not place undue reliance on any such forward-looking statements. 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. Other than as required by law, Killam does not undertake to update any of such forward-looking statements.