Scotian WindFields & Doctor Solar help Killam Properties Double their Profits

Thursday, May 19, 2011

Wind turbines installed by Scotian WindFields and solar hot water systems installed by Doctor Solar made a major contributions to doubling the profits for Killam Properties this quarter.

Click the links to see these successful renewable energy projects:

Mountainview 50kW - Lake Echo NS

7 - 15 Parker Street

59 Glenforest Drive, Halifax, NS

21 Plateau Cres, Halifax, Nova Scotia

From the Halifax Chronicle Herald, May 12, 2011

Killam Q1 profit doubles
Halifax-based company credits strong property market, green initiatives

By BILL POWER Business Reporter
New properties and green innovations helped Killam Properties Inc. increase revenue and profit for the first quarter of 2011.

Continued growth for the company was anticipated throughout the year, despite new developments from competing property owners, Philip Fraser, president and chief executive officer, said Wednesday. 

 "In the Halifax market, the outlook is very strong, with our vacancy rate as good as it’s ever been," Fraser said in a teleconference held to discuss first-quarter results.

Some green initiatives, including solar panels and wind turbines, helped the company reduce the impact of hikes in heating-oil costs and contributed to a successful first quarter.

"We’ve experienced an eight per cent annual return on solar panels installed on four of our oldest buildings," said Fraser.

Killam plans to install another wind turbine at its Mountain View Estates manufactured home park in Lake Echo, and possibly another at a park at Antigonish.

Two turbines installed in 2010 at Mountain View Estates generate electricity for street lighting and the water supply for the community of 300 manufactured homes.

The company was also meeting with Heritage Gas to map out a strategy for the conversion of several of its apartment buildings in the Clayton Park area of Halifax from oil heat to gas, with the cost yet to be determined.

"The cost of a conversion could be as low as $20,000, and for bigger buildings could be in the range of a couple of hundred thousand dollars," Fraser said.

Killam earned $6.5 million in funds from operations in the first quarter of the year, a 12.5 per cent increase over the same period in 2010.

Net income was $15.7 million for the first three months of the year, compared with $6.5 million for the same period in 2010. Revenue was up 11.6 per cent to $29.6 million for the quarter.

"The $115 million in new properties acquired in 2010 accounted for the majority of the income growth," the company said in its financial highlights.

Killam’s board of directors announced a 3.6 per cent dividend increase to 58 cents per share, the first dividend increase since March 2007.

Fraser said the company plans to spend more than $100 million during 2011 on acquisitions in Atlantic Canada and in Ontario, and will build a 101-unit building in Fredericton, and a 72-unit building in St. John’s, N.L., on land acquired during the first quarter.

"We believe there will be strong demand for new rental product in St. John’s, a market that has seen very little new rental construction in over 30 years," Fraser said in comments distributed to shareholders.