Killam Properties Inc. (TSX:KMP) continues to execute its strategy of consolidating the rental apartment and manufactured home community markets in Eastern Canada and is pleased to announce seven acquisitions totaling 677 units which will increase Killam's portfolio to 11,366 units. Killam has closed all of its previously announced acquisitions (Press Release October 28, 2005) except for a portion of a 465 residential apartment unit portfolio. The 178 units located in Moncton, New Brunswick and a 35 unit building in Charlottetown, Prince Edward Island, are now scheduled to close during the first quarter 2006. In addition to the previously announced acquisitions, Killam has acquired the following rental apartment properties:   - Dillman Place, a 60 unit building located adjacent to Killam's
Jamieson Place in Dartmouth, Nova Scotia. The building contains six
bachelor units, 30 one-bedroom units and 24 two-bedroom units, with
an average two-bedroom rent of $646/month. The purchase price of
$3.04 million ($50,666/unit) was satisfied by arranging a new first
mortgage of $2.325 million at a rate of 5.16% for ten years, with the
balance in cash.   - 511-523 Queen Street, a 48 unit building located adjacent to Killam's
Belvedere Place in Charlottetown, Prince Edward Island. The building
contains 16 one-bedroom units and 32 two-bedroom units and with an
average two-bedroom rent of $573/month. The purchase price of
$2.3 million ($47,916/unit) was satisfied by assuming a CMHC insured
first mortgage of $1.2 million at a rate of 4.97% with the balance in
cash.   - 135 University Avenue, a 42 unit building located adjacent to
Killam's Anchorage and Cedar Glen Apartments in Saint John, New
Brunswick. The property contains five one-bedroom units with an
average rent of $630/month, 22 two-bedroom units with an average rent
of $839/month and fifteen three bedroom units with an average rent of
$1,033/month.. The purchase price of $3.45 million ($82,143/unit) was
satisfied by assuming a CMHC insured first mortgage of $2.38 million
at an interest rate of 4.9% for ten years, with the balance in cash.   - 53 Somerset Place, a 16 unit building located adjacent to Killam's
Fort Howe in Saint John, New Brunswick. The property contains twelve
one-bedroom units with an average rent of $563/month and four two-
bedroom units with an average rent of $635/month. The purchase price
of $625,000 ($39,063/unit) was satisfied by arranging a new first
mortgage of $437,500 at an interest rate of 5.54% for five years,
with the balance in cash.   Killam has also expanded its manufactured home community portfolio by acquiring three additional manufactured home communities, as follows:   - Sunset Estates, a manufactured home community located in Saskatoon,
Saskatchewan containing 247 units, 34 of which are currently
unoccupied, with an average monthly rent of $268/month. The purchase
price of $5.25 million ($21,253/pad) was satisfied by arranging a new
first mortgage of $3.9 million for ten years at a rate of
approximately 5.2%, with the balance in cash. Sunset Estates is
situated on 77 acres.   - Cedardale, a manufactured home community located in Carrying Place,
Ontario containing 204 seasonal sites, Cedardale is fully occupied
with a seasonal rent of $1,005/year. The purchase price of $1.75
million ($8,578/pad) was satisfied by arranging a new first mortgage
of $1.05 million for five years at a rate of 5.45%, with the balance
in cash. Cedardale is located on the shores of the Lake Ontario on
24.7 acres.   - Lakewood Estates, a manufactured home community in Carleton, Ontario
containing 60 fully occupied lots with an average monthly rent of
$219. The purchase price of $1.45 million ($24,167/pad) was satisfied
by arranging a new first mortgage of $1.09 million at 5.16% for ten
years, with the balance in cash. Lakewood Estates is situated on 13
acres.   Killam Properties Inc. is a leading real estate company based in Halifax, Nova Scotia. Killam is the largest owner and manager of multi-family residential rental properties and manufactured home communities in Atlantic Canada.   Note: The Toronto Stock Exchange has neither approved or disapproved of the information contained herein. Certain statements in this report may constitute forward-looking statements. 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. Killam does not undertake to update any of such forward-looking statements.
  For further information: Killam Properties Inc.: Philip Fraser, President and CEO, Phone: (902) 453-4536, Fax: (902) 455-4525; Robert Richardson, CA, EVP and CFO, Phone: (902) 442-9001, Fax: (902) 455-4525, www.killamproperties.com