Statement of Stewardship Eighth Edition

STATEMENT OF STEWARDSHIP

THE COVER ARTIST — OWL

Image credit: Dantek

ABOUT THE COVER ART

The cover art I decided to illustrate and paint represents a visual collaboration of shapes and lines reflecting the values that Crescent Communities share with the people around them. I wanted to use earth colors that brought a sense of community and engagement. Similar to a community garden, we each play a crucial role in our circles as we support new ideas and protect the integrity of our goals. Each color compliments the next blooming into a composition of coherent intention of leaving this world better than we found it. The line work represents how it takes solid moves in organic ways to make the bigger picture show us what a beautiful canvas we can be if we coexist in our bliss.

THE ARTIST

Having had an interest in patterns and mark-making all my life, I eventually became interested in street art and exploring other media, including printmaking and painting. I became intrigued by the idea that an image can look complete as a whole, yet upon closer inspection one sees that it consists of marks that are each unique. The works become their own curious ecosystems of imperfect marks, complex patterns, vibrations, and layers that transcend time and space. This allows for me to create atmospheres where things and people can interact with my version of a different depiction of the cosmos. Explore her work on Instragram at @owl.clt or email her at owlvibez@gmail.com

From our Leaders

Throughout 2023, the real estate industry remained in a state of flux. Despite the challenges of the market broadly, we are pleased to share that Crescent Communities remained steadfast in our mission to Build Community and Better People’s Lives while developing, building, and transacting on several best-in-class communities across the country. We are particularly proud of our unwavering commitment to environmental sustainability and our collective drive to create community impact. We achieved several milestones related to our commitment to stewardship in 2023, and we are pleased to share them throughout this report.

In addition to these measurable impacts, as our team grew, we doubled down on supporting our colleagues and building a culture of personal and professional growth. The theme of our 2023 semi-annual Greater Purpose company-wide meeting was Bloom, and our entire enterprise continued to build on this theme throughout the year. I could not be more proud of the work we do at Crescent Communities. Our colleagues are not only skilled professionals, but they are also exceptional and caring human beings. The culture of our company is unparalleled, and the work outlined in this report demonstrates the collective spirit of our people. We are pleased to share our progress and we are optimistic for what the future will bring.

Sincerely,

BRIAN NATWICK Chairman & CEO TRACY CHAMBERS Chief People Officer LISA PHOCAS Director of Stewardship

Who We Are

We develop more than just groundbreaking communities. Crescent Communities is a nationally recognized, marketleading real estate investor, developer, and operator of mixeduse “communities.” We create high-quality, differentiated multifamily and commercial communities in many of the fastest growing markets in the United States. Since 1963, our development portfolio has included more than 85 multifamily communities and 24 million square feet of commercial space. Crescent Communities has offices in Charlotte, DC, Atlanta, Orlando, Nashville, Dallas, Denver, and Phoenix. Our multifamily communities are branded NOVEL, RENDER and HARMON by Crescent Communities, our industrial developments are branded AXIAL by Crescent Communities, and our life science developments are branded THE YIELD by Crescent Communities.

MULTIFAMILY BRANDS

COMMERCIAL BRANDS

Elizabeth on Seventh, Charlotte NC

Our Values

DO WHAT’S RIGHT

Do What’s Right

We treat our people, partners, and places with respect. We act responsibly, ethically, and with the best interests of these core groups in mind. We choose what’s right over what’s easy.

Innovate Always

INNOVATE ALWAYS

We are thought leaders, acting with courage and conviction in seeking out technology, tools, partners, and perspectives to improve our company as well as the lives of our team members and communities.

BE CURIOUS

Be Curious

We are explorers, charting our own course as we strive to better understand our customers, communities, and industry trends. We look for unexpected synergies and opportunities to reinforce our unique approach.

DELIVER EXCELLENCE

Deliver Excellence

We build community and better people’s lives, striving every day to achieve and surpass expectations and goals. The caliber of our people, our work, and our organizational culture reflects this relentless pursuit.

17 Markets

Salt Lake City, UT

Phoenix, AZ

Being

stewardsgoodis

Installed our first rooftop solar array at NOVEL University Place, generating enough energy to replace nearly 56,000 pounds of coal burned for energy annually!

fundamental to the pursuit of our mission to build community and better people’s lives

.

2023 Highlights:

Named one of the best places to work by the Charlotte Business Journal!

Nearly $16,000 in Colleague Charitable Donations Matched!

Began pursuit of our first LEED certifications for our AXIAL line of business.

At Crescent Communities, we strive to make decisions that address current and future challenges and improve continuously to have a positive impact on the planet, the people, and the places we build and call home. We hold ourselves accountable through regular evaluation of our practices and ongoing measurement. Our goal is to ensure that the communities under our stewardship flourish for years to come. We seek to create legacies, the value of which builds with time. The pages of our Stewardship and ESG report outline our commitment to our Four Pillars of Stewardship: Environment, Community, Wellness, Resiliency.

more than 1,020 hours volunteered in the community through 15 planned events.

More than

17,457 tons of waste diverted from the landfill, the equivalent of 1,450 African elephants.

100% of our multifamily and office communities installed EV charging stations.

Environment

To build prosperous and healthy communities within the ecological limits of our planet, it is essential to tackle climate change with disciplined and thoughtful development. We have adopted environmental sustainability principles, practices, and processes to both sustain the environment and support thriving economies. We seek to inspire our colleagues, residents, tenants, and the broader development community to make positive changes that enable ecosystems to flourish.

Environmental Impact Metrics

In 2023, we continued to refine the management and reporting of the environmental impact of our multifamily communities.

INTRODUCING HARMON BY CRESCENT COMMUNITIES

Every HARMON home is designed to be highly energy and water efficient while offering residents comfort and lower utility bills. In 2023, we achieved NGBS Certification on all new HARMON Homes.

Higher Performance and Lower Environmental Impact

To underscore our commitment to the design, construction, and operation of high-performing, efficient buildings, we seek sustainability and wellness-based certifications. These certifications not only provide a roadmap to guide our practices and ensure results, but they also guarantee that all partners involved in the project from start to finish are working toward the same goals.

LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN (LEED)

The most widely used green building rating system in the world, LEED certification provides independent verification of a building’s green features, encouraging the design, construction, operations, and maintenance of resource-efficient, highperforming, healthy buildings. Crescent Communities pursues LEED certification for commercial office spaces and select multifamily communities.

THE NATIONAL GREEN BUILDING STANDARD™ (NGBS)

NGBS is a third-party certified residential building guideline that offers certification specifically for residential construction. NGBS Certification indicates that a building has been designed and constructed in a manner that promotes improved health, lower operating costs, and a lighter environmental footprint. Certified communities must achieve a minimum number of points in each of the six categories.

GREEN BUILDING CERTIFICATIONS

NGBS for HARMON by Crescent Communities

In 2023, our team certified the first single-family build-to-rent homes from HARMON by Crescent Communities through the National Green Building Standard (NGBS)! Combined, HARMON Five Points in Charlotte and HARMON Foxbank in North Charleston now offer 132 NGBS CERTIFIED brand-new well-appointed and high-performing homes. We look forward to the continual use of NGBS, ensuring the homes in all our communities offer the comfort, convenience, and efficiency that our residents desire.

Membership in ULI Greenprint

Crescent Communities is a member of the Urban Land Institute (ULI) Greenprint Center for Building Performance. A global alliance of leading real estate owners, investors, and strategic partners, ULI Greenprint is committed to improving the environmental performance of the global real estate industry.

HARMON Foxbank, North Charleston, SC

Wellness

We invest to create environments that support physical and emotional well-being. When we design communities where healthy choices are easy to make, we in turn support the well-being of every person who lives, works, and plays there. The places we create then become the catalyst for a healthier and happier lifestyle, not only for our residents and tenants but for the greater community. When spaces are designed, constructed, and operated to prioritize wellness, they allow people to be at their best both physically and mentally. To help guide our practices, we often pursue certifications that reinforce our commitment to the communities we serve and beyond.

FITWEL

Fitwel is a building certification system that supports healthier living and working environments to improve occupant wellness and productivity. The Fitwel Certification System offers 50+ evidence-based design and operational strategies to optimize the healthpromoting impact of the built environment.

WELL

Administered by the International WELL Building Institute, the WELL Building Standard is a performance-based system for measuring, certifying, and monitoring features of the built environment that impact human health and well-being. The rigorous certification process marries strategies in design, construction, and operations to lead to a built environment that supports improvements in nutrition, fitness, mood, sleep, comfort, and performance of its occupants. The features of WELL Certification are organized into ten concepts that drive health and well-being.

Ally Charlotte Center, Charlotte NC

NOVEL Beach Park, Tampa FL

Multifamily: NOVEL University Place

With a prime Charlotte location just a short walk from the area’s best retail, restaurants, and culture, NOVEL University Place is an unparalleled residential hub that offers impressive waterfront amenities in a popular destination. Not only does NOVEL University Place feature a solar array offsetting energy used in amenity and common areas, but the walkable community also achieved NGBS Silver and Fitwel Certifications.

FEATURES SUPPORTING THESE CERTIFICATIONS INCLUDE:

Two-story fitness center with outdoor fitness lawn.

Outdoor common areas allow residents access to nature and daylight, reducing stress and enhancing mental health.

Nearby amenities reduce vehicle dependence for daily needs.

High-efficiency heat pump provides reliable heating and cooling without the use of fossil fuels.

Water conserving bath fixtures and appliances reduce water use while maintaining effectiveness.

Community drip irrigation ensures efficiency by placing water where it needs to be.

A free and convenient valet recycling program is available to all residents.

Low-VOC insulation, adhesives, paints, and finishes enhance indoor air quality.

EV chargers to encourage the switch to low emissions vehicles. PROJECT SPOTLIGHT

Above-code Low-E windows increase comfort and reduce dependence on heating and A/C.

Third-party inspections of air ducts and insulation ensure an efficient and comfortable living space.

ENERGY STAR® rated appliances and lighting reduce energy use and lower bills.

Multifamily: NOVEL White Fence Farm

Located in Lakewood, Colorado and envisioned to be a modern homestead, NOVEL White Fence Farm is anchored by the clubhouse with a traditional Colorado craftsman style design that is meant to evoke the past while complementing the surrounding residential neighborhood. Not only did the team choose to repurpose and restore the onsite barn clubhouse as the central amenity for the community, but Crescent Communities also achieved LEED Certification at the GOLD level.

FEATURES SUPPORTING ENVIRONMENTAL SUSTAINABILITY AND WELLNESS AT NOVEL WHITE FENCE FARM INCLUDE:

High-efficiency air handler connected to a dual-purpose natural gas water heater which provides comfortable, reliable, and efficient space heating as well as hot water.

Above-code Low-E windows increase comfort and reduce dependence on heating and A/C.

Third-party inspections of air ducts and insulation, along with LEED Gold Certification ensure an efficient and comfortable living space.

Water conserving bath fixtures and appliances reduce water use while maintaining effectiveness.

Seventy percent of construction waste has been diverted from the landfill which is equivalent to 474,000 lbs of waste recycled!

The location of NOVEL White Fence Farm promotes a healthy lifestyle with walkable access to Sanderson Gulch Greenbelt and nearby Wilson Family Park.

Improved indoor air quality through high-efficiency filtration and ventilation systems, including fresh air ventilation and kitchen exhaust fans vented to the outside.

Outdoor common areas allow residents to access nature and daylight, reducing stress and enhancing mental health.

Community composting available to reduce the amount of waste sent to the landfill.

Crescent Communities partnered with Mile High Workshop in Denver, Colorado to repurpose branded fence wraps for NOVEL White Fence Farm into reusable tote bags. Mile High Workshop works to create employment opportunities and provide job training for community members who are rebuilding from addictions, homelessness, and incarceration. The reusable bags were shared with the residents at NOVEL White Fence Farm to use as farmers market totes, reusable grocery bags, gym bags, you name it!

Industrial: AXIAL Gateway 95 and AXIAL Rapid Commerce Park

Expanding a commitment to high-performing buildings and environmental sustainability, Crescent Communities began the LEED certification process for two industrial properties in 2023. AXIAL Gateway 95 by Crescent Communities is a rear-entry industrial building totaling approximately 505,068 square feet in the greater Richmond area in Chesterfield County, Virginia. The design offers flexibility to accommodate multiple tenants with modern clear heights for local and regional distribution tenants in addition to light manufacturing and assembly users.

AXIAL Rapid Commerce is a 449,000-square-foot industrial building located at 500 Rhyne Road, just half a mile from I-485 and 2.5 miles from I-85 in Charlotte. The speculative site includes 3,850 square feet of office space in the warehouse ready for immediate occupancy. Additionally, the Crescent Communities team is actively collaborating with Mecklenburg County Park and Recreation, Centralina Regional Council, Beacon Partners, and Fortius Capital to establish a new trail system and park around the project site. With its prime location and focus on sustainability, this building will attract a wide variety of local, regional, and national users.

FEATURES THAT SUPPORT THE LEED CERTIFICATION INCLUDE:

Efficient design, estimated to be 33-40% more energy efficient than baseline.

Highly reflective roof surface to reduce heat island effect.

Life-cycle assessment to demonstrate a reduction in environmental impact of materials.

All LED lighting to reduce energy demand.

Enhanced indoor air quality promotes a healthy working environment.

Reduced outdoor water use through native and location-friendly plantings.

Responsible construction management to divert a minimum of 50% of waste from landfill.

The River District

Just west of a thriving metropolis and situated amid natural stillness, The River District will be a 1,400-acre master-planned community that brings together the beauty of the Catawba River with convenient proximity to vibrant Uptown Charlotte.

The River District integrates the primary components of urban life—a connected network of homes, retail shops, restaurants, office buildings, schools, and public spaces— with the allure of the parks, trails, forests, river access, and open spaces inherent in nature. In April, Crescent Communities celebrated the highly anticipated groundbreaking ceremony for the community, for which vertical construction will commence in 2024. Aligning with the four principles of Stewardship, the Crescent Communities team is actively pursuing several related initiatives.

LEED for Communities

The River District achieved LEED for Communities Precertification in 2023, which is an important milestone in the process of full certification. The LEED for Communities program helps leaders and developers address many factors that contribute to the quality of life including energy, water, waste, transportation, and equity.

CATEGORIES OF LEED FOR COMMUNITIES INCLUDE:

Natural Systems and Ecology

Transportation and Land Use

Water Efficiency

Materials and Resources

Quality of Life

Energy and Greenhouse

Gas Emissions

One Planet Living at The River District

One Planet Living is a framework that encourages the incorporation of 10 elements of sustainability into the design and development of communities and cities. Unlike a traditional certification program, a One Planet Living Action Plan represents a commitment to building and developing in accord with the principles that support the health of the environment and the wellness of the people. The Crescent Communities team is finalizing a One Planet Living Action Plan that will serve as a framework for the community to support the health of the environment and the wellness of those who live, work, and visit the community.

THE TEN PRINCIPLES OF ONE PLANET LIVING:

Health and Happiness

SUPPORTING THE PRINCIPLES OF ONE PLANET LIVING, THE COMMUNITY WILL FEATURE:

500+ acres of preserved green space and connections to nature

Walking and biking trails offering connectivity throughout

An urban farm to support local, sustainable food production

Intentional reduction of energy, water, and waste

Opportunities for lifelong learning

Affordable and mixed-income housing

Public access to the Catawba River

ULI Net Zero Imperative

In May, Crescent Communities and the City of Charlotte sponsored a Technical Assistance Panel (TAP) in partnership with ULI Charlotte called “Roadmap to Net Zero for New Commercial Buildings.” Using The River District as a test case, the purpose of the TAP was to identify ways to encourage developers to create a net zero road map

for new commercial development using city, state, federal, and utility programs. This program brought together national and local experts to discuss opportunities for future development and innovation. Challenges were discussed and opportunities for future innovation were brought forth during this forward-thinking discussion.

ULI Net Zero Participants from Crescent Communities, the City of Charlotte, ULI Charlotte, the U.S. Green Building Council, and other leading national organizations.

Preserving Biodiversity

The River District Team completed a Biodiversity study led by the Catawba Lands Conservancy in 2023. Experts from The Catawba Riverkeeper, the County, and the State were assembled to evaluate the land that will remain undeveloped within the community. Over 183 species of animals, insects, birds, and mollusks were observed, as well as 217 plant species! This information will guide land management decisions throughout the green space to maintain or enhance habitat for plants and animals throughout the process of development.

Community

A community is a network of relationships, enriched by shared values and motivated by the fundamental human desire to be part of something greater. We seek opportunities to build a more diverse, equitable, and inclusive community for our colleagues, partners, customers, and neighbors. When we provide opportunities for all, not only do we allow for productive communities to form and flourish, but we also create economic success.

We

will reinforce our commitment to create opportunities for all through an open and honest dialogue and develop proactive solutions that will lead to a more diverse, equitable, and inclusive workforce.

Diversity, Equity, and Inclusion at Crescent Communities

DIVERSITY POLICY

Crescent Communities recognizes and values a diverse and inclusive workforce. Diversity embodies all differences: life experiences, work experiences, perspectives, cultures, religions, ethnicities, gender, age, socioeconomic status, and other aspects of life, all that make us unique individuals. Crescent Communities seeks diversity in its colleagues, values their differences, and endeavors to treat all colleagues with respect.

In 2020, the Executive Committee of Crescent Communities established a volunteer-based Diversity, Equity, and Inclusion Task Force. Led by our Executive Vice President and Chief People Officer, Tracy Chambers, our three DE&I Task Force Committees continued to act in support of its critical mission throughout 2023.

DE&I Committee: Learning and Conversations

PURPOSE: Offer all colleagues the opportunity to gain new perspectives and share in conversations to help us become more aware, compassionate, and engaged in the quest for equity.

HIGHLIGHTS: The team hosted a wide array of educational opportunities and introduced colleagues to new perspectives from both inside and outside of the organization. During these well-attended events, team members participated in lunchtime conversations to bolster respect and appreciation for all.

MEMBERS:

Simon Andrew, Justin

Cislo (Leader), Katie Congdon, Carrie DeLuca, Aldo Muccia, Lisa

Phocas, Erika Ruane, and Kesha Smith

Ben Collins and Jay Curran (Executive Sponsors)

FEBRUARY: FIRST GENERATION HOME OWNERSHIP AND BLACK COMMUNITIES

For Black History Month, we welcomed Winston Robinson, Founder & Executive Director of Applesauce Group. “Wilmo” shared his success in blending education, engagement, and entertainment to give people the tools

to pursue first-generation homeownership. Winston’s Applesauce Group takes its name from the concept of hiding medicine for children in sweet applesauce. In an honest dialogue, Winston discussed systemic issues facing minority communities, and specifically historically Black Communities in Charlotte.

JUNE: LUNCH AND LEARN WORKSHOP FOR PRIDE MONTH — “QUEERLY BELOVED: A CONVERSATION ON LGBTQ+; INCLUSION, GENDER AND ALLYSHIP”

This engaging and interactive workshop by consultant Nate Shalev allowed colleagues to deepen their commitment to inclusion and build buy-in and understanding for LGBTQ initiatives. The session further provided tools and techniques for allyship and offered a framework for engaging in difficult conversations in real-life scenarios.

JULY: PUBLIC EDUCATION AND 3DE SCHOOLS

With 90 percent of students in public schools, and many of them up against systemic inequities, it takes visionary educational, civic, and corporate leaders to better prepare students for life beyond the classroom walls. Jack Harris, CEO of 3DE, is one of those visionaries.

Jack discussed his efforts to enhance public education and increase student retention, high school graduation, and preparation for post-secondary education through the programming and real-life experience offered by 3DE. A partnership between Junior Achievement, and local businesses, students who participate in 3DE graduate with a clearer vision for their future, more confidence in their abilities, and a path to achieve their goals.

SEPTEMBER: LUNCH AND LEARN — NATIONAL HISPANIC HERITAGE MONTH

Aligning with the 2023 theme, “Latinos: Driving Prosperity, Power, and Progress in America,” we recognized the contributions of a local leader and longtime friend of Crescent Communities. Former colleague, Magda Esola, shared her extraordinary experience arriving as a young woman in the United States with only her family and limited English-speaking skills, and the brave journey that led her to many achievements, including being the top selling realtor in Charlotte and the recently elected president of the Canopy Realtor Association.

OCTOBER: SUSTAINABILITY

Crescent Communities

welcomed CT Anderson, Founder and Creative Director of local nonprofit Springclean, whose mission is to create jobs and reduce landfill space by repurposing materials in new and innovative ways. Topics of discussion were circularity, textiles, and intersectionality from her perspective.

NOVEMBER: LUNCH AND LEARN — JAPANESE CULTURE

Our resident colleagues from our parent company, Sumitomo Forestry Americas, presented an entertaining and informational session on Japanese Culture. Topics covered in this well-attended event included table manners and chopstick use, communication style, business manners, housing, ambiguity, and festivals. Colleagues were also treated to an authentic TAIKO (Japanese drum) performance from Hirotaka Hayaski of SFA!

DECEMBER: MENTAL HEALTH

Hip-Hop artist Yung Citizen discussed his personal mental health story and the steps he took to better himself and live a life of growth, healing, confidence, and love. Seeking guidance through therapy and self-reflection helped him face himself honestly and overcome the trials of life. This session allowed our colleagues to become very vulnerable about their mental health and participate in a discussion on tools for self-improvement.

DE&I Committee: Partnerships

PURPOSE: Support partnerships that foster diversity and equity, and actively seek diverse vendor relationships in all areas of construction and business operations.

MEMBERS:

Jonathan Bedford, Eoin Breen, Tommy Brehm, Tracy Chambers and Daniel Cooper (Executive Sponsors), Vianney Ferdinand, Erika Ruane (Leader)

The Partnerships committee focused on measurement, tracking, and recruiting to increase Minority and Women Owned Business Enterprise (MWBE) participation. The team sourced a new third-party software tool to track and manage the MWBE status of current vendor partners and the value of their contracts with Crescent Communities. The tool also allows internal colleagues to search for proven vendors by field, location, and/or MWBE status, etc. This year, the taskforce decided to focus on Tier 1 vendors, or those organizations that Crescent Communities is directly funding for projects. In the future, there will be an opportunity to delve into those payments to gather information on trade partners and other vendors that the Tier 1 vendors are funding for projects to track the company’s true impact more accurately.

The committee also succeeded in drafting MWBE language that will be included in construction contracts moving forward. This language requires contractor partners to maintain a reasonable goal of 9% MWBE partner inclusion by percentage of the total contract value, supporting the committee’s overall 2023 goal and demonstrating Crescent Communities’ commitment to a diverse workforce.

4TH ANNUAL MINORITY AND SMALL BUSINESS OUTREACH

More than 100 people attended our annual Minority and Small Business Outreach event in July. Vendors, general contractors, subcontractor partners, elected officials, and other government representatives joined Crescent Communities at the Innovation Barn in Charlotte to learn about our pipeline of development opportunities and our commitment to building a diverse and welcoming work environment and industry. Representatives from our key general contract partners were also in attendance to network and encourage participation with minority groups across our development footprint.

DE&I Committee: Recruiting Strategy

PURPOSE: Ensure that our hiring practices are fair, equitable, and non-discriminative while striving to have qualified candidates that are diverse across gender, race, ethnicity, disability, and veteran status, among others. The goal of the Recruiting Committee is to increase diverse hiring sources and expand partnerships with Historically Black Colleges and Universities (HBCUs), while also working to ensure equitable internal growth opportunities.

HIGHLIGHTS

We enhanced our diverse representation and perspective by:

Posting open positions on 600+ locally focused and diverse job boards

Partnering with outreach organizations

Conducting a job fair at NC A&T

MEMBERS:

Jack Barnett, Tamesha Coleman, Kevin Gzym, Latondra Riley (Leader), Sagar Rathie, Tracy Chambers and Jason LaBonte (Executive Sponsors)

Adding more HBCUs to our recruiting roster

Hosting a successful summer associate program

Extending summer associate programs and hiring associates into full-time roles Offering scholarships

Our Summer Associates gave back to the community by preparing gift bags to bring joy, care, and hope to homeless and impoverished children through a partnership with the nonprofit, Bright Blessings.

“My

time at Crescent Communities was an experience that I will never forget. Moreover, the time at Crescent Communities allowed me to further my knowledge on Project Management and the Superintendent side of construction, and I’m overjoyed to have the opportunity to work alongside a great team.”

OMARI NELSON

PROJECT DESTINED

THE ROC CHARLOTTE

Crescent Communities is a proud supporter of the ROC Charlotte, a nonprofit organization with a mission to educate and mentor high school students for technical roles and career opportunities in the construction industry through a partnership with Central Piedmont Community College. Not only does our President of Construction, Daniel Cooper, serve on the Board of Directors for this amazing organization, but Crescent Communities had the fortunate opportunity to hire a high school student, Omari Nelson, as a Summer Associate. Omari was the first highschool student to be employed by Crescent Communities, and the team was impressed by his skill and professionalism!

Crescent Communities was once again proud to partner with Project Destined, a leading social impact platform that empowers students from underrepresented communities through training in financial literacy, entrepreneurship, and real estate. Our colleagues worked diligently with these diverse students through their 8-week program to ensure they were prepared for the end of program competition and ready to consider a rewarding career in real estate! Development Manager Dan Gualtieri and Development Associate Bradley Scholhamer served as Mentors for the program this year.

“Project Destined is a wonderful program that provides unparalleled access for students looking to enter the Real Estate field. The level of diversity, organization, and professionalism embodied by Project Destined and its students is an inspiration. It was an honor to join for their Executive Speaker Series and look forward to a long-term relationship with their organization.”

BENJAMIN COLLINS, EXECUTIVE MANAGING DIRECTOR

Fostering a Culture of Inclusivity

COMMUNITY BUILDING

Crescent Communities is honored to establish a partnership with the Community Building Initiative (CBI), a nonprofit organization with a mission to give people and organizations the knowledge, skills, and courage to fight bias, remove barriers to opportunity, and build a more equitable Charlotte-Mecklenburg area.

For each of the last four years, two rising leaders within our organization have been chosen to participate in CBI’s LU40 program (Leadership Under 40). These young leaders will use the knowledge they gain through the program to help create positive, impactful change within Crescent Communities, in the real estate development industry, and throughout the greater community. Past participants include Ruth Evans, James Richardson, Violet Iwata, Shep Reynolds, Jack Barnett, and Matt Box.

“My organization is one-of-a-kind. The positive culture that embraces diversity and empowers you to do “you” is almost unheard of in this industry. They guide and do not dictate culture which ultimately creates the best most positive work environment.”

CRESCENT COMMUNITIES COLLEAGUE RESPONSE FROM 2023 ANNUAL CULTURE SURVEY

CURRENT LU40 PARTICIPANTS

Eoin Breen, Construction Manager

Tarang Vakharia, Finance Associate

WITH PRIDE

Crescent Communities sponsored the 2023 Charlotte PRIDE Parade and festival, supporting our commitment to diversity, equity, and inclusion.

Colleagues also volunteered to set up the child and family zone, providing a fun place for kids to play during the festival.

HARVESTING CONNECTIONS

Harvesting Connections is a collaborative forum nourishing women-driven relationships in the construction and real estate development industries. Held on October 19th, the 6th Annual Harvesting Connections event was the biggest yet, with over 90 women in attendance. Crescent Communities came together with Gensler, Turner Construction, Asana Partners, and Troutman Pepper to plan the event focused on women in the real estate and construction fields. Participants donated tools and funds to the nonprofit spotlight, She Built This City. Tori Stevens of Evolyoution led the session “Be You in Every Room,” giving women advice and tips on navigating their careers in a male-dominated field.

Our 2023 Workforce Composition

We are committed to fostering a more diverse and inclusive work environment. Better business decisions are made when all parties are included and welcomed. Although progress has been made, we acknowledge that we have much more work to do. This is a meaningful commitment that will not transform any organization overnight, but we understand the importance of investing our time and energy to create opportunities for ALL people, both within our company and in the real estate industry overall. We will continue to be transparent in our progress.

SUMMER ASSOCIATES

TALENT METRICS

2023 PROMOTIONS

The theme “Bloom” invites us to reflect on our unique talents and skills and challenges us to become the best version of ourselves.

Culture: A Commitment to our Greater Purpose — BLOOM!

Held on a semi-annual basis, the Greater Purpose Meeting brings all colleagues of Crescent Communities together to reinforce our mission to Build Community and Better People’s Lives. The theme of the 2023 Greater Purpose Meeting, held appropriately in May, was BLOOM. After a day of community volunteer events and small group huddles, the entire team gathered for an inspirational meeting.

The theme “Bloom” invites us to reflect on our unique talents and skills and challenges us to become the best version of ourselves. We all have the potential to grow personally and professionally, and during the Greater Purpose meeting, we examined strategies that encourage us to thrive while enriching the lives of everyone we serve.

HIGHLIGHTS OF THE DAY: Motivational speaker

Charles Clark, a USA Track and Field Superstar, 3-time national champion, and 6th fastest man in the world, inspired us to “Rise and Thrive.”

A panel discussion, led by Ohavia Phillips, encouraged the team to share their stories of personal and professional growth through the lens of the event theme. The allcolleague panel included Savannah McGowan, Jes Sanders, Kesha Smith, and Liam Torpey.

The day concluded with a spoken word poem, offered by award-winning master storyteller, speaker, and poet, Hannah Hasan. Throughout the day, Hannah sat quietly in the room, unrecognized by the audience. She listened to the speakers and witnessed the energy of the room and used this observation to write a beautiful spoken-word piece that was shared at the conclusion of the event.

Crescent Communities Construction Team

Guest speaker, Charles Clark

Spoken word artist, Hannah Hasan

Kaylin Devone (left) and Elizabeth Palmisano (right), artists who captured the event by creating paintings live.

Culture: Best Places to Work

The Best Places to Work Awards by the Business Journals recognize local employers that have gone above and beyond to create an outstanding workplace culture. The rankings are based on confidential colleague surveys that measure success in team dynamics, trust in leadership, communication and more, with only the top-scoring companies in the region earning the coveted right to be named one of the Best Places to Work. Based on our survey results, Crescent Communities took home the second-place award, and was named one of the Best Places to Work!

THESE ARE THE WORDS THAT OUR COLLEAGUES USE TO DESCRIBE OUR CULTURE AT CRESCENT COMMUNITIES!

Growth Opportunities

In alignment with our Greater Purpose theme of “Bloom,” Crescent Communities encouraged our colleagues to grow and develop through several training opportunities and workshops throughout the year.

DARE TO LEAD™ CURRICULUM

Women at Crescent Communities were invited to take part in the 16-hour program, led by the Founder and CEO of LUMO. Based on research of Dr. Brené Brown, Dare to Lead™ is a courage-based program, offering instruction on cultivating authenticity, harnessing the power of courage, and identifying core values.

MENTORSHIP PROGRAM

For the second year, we offered a structured mentorship program, establishing a partnership between colleagues for the purposes of learning and growth. Any colleague at any job level may participate and benefit from a mentoring relationship. Subject areas covered included leadership development, financial acumen, directing and delegating, presentation skills, conflict resolution, and developing a personal brand. This is a popular offering, as more than 20% of our colleagues serve as a mentor or mentee.

“I

EFFECTIVE STRATEGIC LISTENING TRAINING

Led by Michael Reddington, President of InQuasive. This workshop offered tools for building and maintaining trusting relationships, leading negotiations, and listening for problem solving.

EDUCATION SUPPORT

In addition to supporting the continuing education requirements for related certifications, Crescent Communities offers educational reimbursement opportunities for colleagues wishing to further their education in related fields of study.

EFFECTIVE PROBLEM SOLVING

Led by our very own Jay Curran (President, Multifamily) and Brendan Pierce (President, Commercial). This session offered tips for time management, conflict resolution, developing solutions, and addressing challenges effectively in a team.

INCLUSIVE LEADERSHIP WORKSHOP

Led by Scott Horton, owner of Delta Consulting. Offered to all leaders, this course encouraged participants to understand their own diverse identity and life experiences and recognize how these factors influence our decisions about others at work. Further, participants learned to identify unconscious biases, and to develop appropriate plans for minimizing their negative impacts.

loved the session and found it extremely insightful and refreshing. I appreciated the general reset to the assumptions we all make towards colleagues, peers, prospects, etc. I particularly liked the exercise where you chose amongst the 4 personas and unconsciously added details that weren’t in the description — age, ethnicity, gender, etc. That was fascinating and helpful to remind you to reset your expectations and biases.”

BEN WATT, SENIOR MARKETING DIRECTOR

Promoting Health and Well-Being

In 2023, our Annual Wellness Subsidy increased from $250 to $500. Colleagues can request a reimbursement for gym memberships, equipment, race entry fees, mental health apps, etc.

The team hosted an in-office health fair with Novant Health to offer vaccines for all colleagues.

A self-awareness and self-defense class was presented by NC Budo, a studio offering martial arts and wellness classes to students of all ages.

The Charlotte Mecklenburg Police Department joined Crescent Communities to offer an Active Survival Class.

Ergonomics instruction was offered to increase safety, comfort, and performance whether working in the office or working from home.

A webinar was offered by a licensed clinical social worker who shared tips on “Building a Better Mental Health State.”

Crescent Communities Leadership Team

Surveys: Listening to our Colleagues

To ensure the success of our colleagues, we administer an anonymous Colleague Culture Survey on a semi-annual basis. Topics covered in the survey include career growth opportunity, work environment, training and development, communication, trust and collaboration, benefits and recognition, diversity and belonging.

The most recent survey results provided great feedback, as 97% of our colleagues would recommend Crescent Communities as a great place to work. They also agreed that the team members in their work group collaborated with one another to meet internal and external expectations. However, our responses were not flawless, as 78% of our colleagues felt that all backgrounds and identities have an equitable chance to advance their careers. In addition, 79% feel

their unique background and identity are valued. Our Executive Leadership team is committed to improving these results year over year.

We began by conducting focus groups with our colleagues, facilitated by Jessica Hall of Whitehall Consulting, to help us better understand and delve further into the feedback and to develop a solutions-based approach. To further address these concerns, the team focused on offering educational opportunities to colleagues of all levels to better understand natural biases and to create an environment where every single colleague feels a sense of belonging and appreciation. Many of these initiatives were mentioned in the DE&I section on page 37. We are committed to the continuation of this work and will conduct another survey in 2024.

79% of our colleagues feel their unique background and identity are valued.

Building Community

CRESCENT COMMUNITIES CARES

We support community initiatives that align with our three thoughtfully identified focus areas: EDUCATION, ENVIRONMENT, SHELTER & SERVICES. Through the Crescent Communities CARES volunteer and charitable giving program, we cultivate a culture of passionate engagement, and we tackle difficult issues such as affordable housing, chronic homelessness, educational disparity, and the climate crisis.

Supporting our Community

WE ARE PROUD TO HAVE SUPPORTED THE FOLLOWING ORGANIZATIONS THROUGH TIME, TALENT, OR TREASURE IN 2023:

Greater Purpose

On the first day of the all-company Greater Purpose Meeting, 180 colleagues gathered to support the community through one of the volunteer opportunities offered throughout the Charlotte Region.

THE BULB

A team volunteered to weed, plant, and harvest in the Bulb’s Urban Farm, which utilizes sustainable farming practices to grow nutritious, high-quality produce for local foodinsecure communities at no cost.

DIGI-BRIDGE

Colleagues visited Briarwood Elementary School and built STEAM (science, technology, engineering, arts, and math) curriculum kits, which guide students in fun and engaging lessons highlighting topics such as Urban Planning, Community Engagement, Architecture, Construction, and Budgeting. They also led students through an exercise in building a community using art supplies.

TRIPS FOR KIDS

Colleagues broke down donated unwanted bicycles for the Re-cyclery, transforming them into reusable parts for restored bicycles and recyclable material. The mission of Trips For Kids is to transform lives, communities and landscapes through cycling. They believe the bicycle is a tool for physical, mental, and social change!

HABITAT FOR HUMANITY

A team participated in a new home construction build at The Meadows in West Charlotte, helping to provide much-needed affordable housing for our community.

HABITAT FOR HUMANITY RESTORE

Team members stocked shelves, sorted donation items, and assisted with customer needs.

SHE BUILT THIS CITY & ROOF ABOVE

Colleagues built much needed picnic tables and benches for Moore Place, a shelter providing wraparound services to unhoused adults.

SECOND HARVEST FOOD BANK

Colleagues sorted and boxed nonperishable items to be distributed to families in need throughout the greater Charlotte region.

SHE BUILT THIS CITY

Crescent Communities hosted a group of pre-apprenticeship program students for a tour of our NOVEL Mallard Creek community in Charlotte where they could ask questions and see a “real life” development in progress.

In addition to the volunteer events hosted during the Greater Purpose Meeting, the colleagues of Crescent Communities donated their time, talent, and treasure to worthwhile organizations across the country. Our team members consistently showcase their commitment to volunteerism, clearing more than 1,020 hours in 2023!

over 1,020 hours volunteered in 2023

Additional 2023 Crescent Communities CARES Events

CAROLINA WATERFOWL RESCUE

Corporate Earth Day: Through our partnership with EarthShare NC, our colleagues were connected to Carolina Waterfowl Rescue. The organization is run by federally licensed wildlife rehabilitators who provide sanctuary, rescue, and rehabilitation for wildlife, farm, and exotic animals. The volunteers cut up fruits and vegetables to feed hundreds of animals, cleaned and organized inside spaces, built a chicken enclosure, and repaired outside spaces for the animals. The team’s hard work

won EarthShare NC’s Best Overall award, acknowledging the use of our CCC team’s specific skills to support the organization.

Day 2: The Crescent Communities Construction team planned a second volunteer day with Carolina Waterfowl Rescue to finish the work they started at the previous event. They installed a door, attached a wire fence around a chicken house, and repaired driveway gates to support this great organization using the skills they have as contractors.

Crescent Communities team at Carolina Waterfowl Rescue

THE PARK PEOPLE, DENVER DIGS TREES

Our Denver team planted 25 native trees with the help of The Park People at beautiful Washington Park, helping to keep the park shady for years to come.

HABITAT FOR HUMANITY OF THE GREATER CHARLOTTE REGION

In partnership with Habitat for Humanity, several Crescent colleagues participated in a Habitat New Construction Home Build project for a local Charlotte family. They hung drywall alongside the new homeowner, while learning her plans for making this house a home.

TREESATLANTA

The Atlanta team, alongside our partners at Juneau Construction Company, volunteered in beautiful Connally Nature Park in

SECOND HARVEST FOOD BANK

The Crescent team sponsored Second Harvest Food Bank’s 2023 Sort-aRama where volunteers across multiple organizations assembled thousands of meals for distribution to families in need across the Charlotte community.

CLASSROOM CENTRAL DONATION DRIVE

Throughout August, the Crescent team donated over 3,700 school supply items for Classroom Central. Classroom Central’s mission is to equip students to learn effectively by collecting and distributing free school supplies to more than 156,000 eligible students and their teachers, across six school districts, in more than 200 high-needs schools.

June. Our group helped Trees Atlanta hand-pull and cut invasive plants such as English Ivy, Chinese Privet, and Kudzu in a densely

wooded area off-trail to make the area safer for the people who use the area for recreation and for the wildlife that call the park home.

FREEDOM COMMUNITIES: MAINTENANCE DAY AND FOOD DISTRIBUTION

JUNIOR ACHIEVEMENT

In addition to financially supporting the efforts of Junior Achievement of Atlanta, Georgia, several colleagues volunteered their time to serve as project coaches for the 3DE program offered to students in high-needs schools in the Atlanta area. This program offers real-life examples designed to prepare students for life beyond the classroom walls. Our coaching team included Amy Bezanson, Henry Brown, Ben Douglas, Eric Liebendorfer, Savannah McGowan, Les Roberts, and Ben Watt.

Maintenance Day: Several Crescent colleagues volunteered with Freedom Communities to remove invasive species in the landscape, organize offices and storage rooms, and fix a few things to make the area more welcoming and create more space for the dedicated people who work there. Freedom Communities works to support the Charlotte community through providing daycare, women’s support groups, computer classes, and more to encourage upward mobility.

Food Distribution: In one of their largest food distribution days ever, Crescent colleagues helped Freedom Communities hand food and holiday supplies to local families. Through our partnership with Freedom Communities, and with the help of Loaves and Fishes, we passed out vegetables, meats, and pantry goods to 142 families.

CATAWBA LANDS CONSERVANCY AND TARHEEL TRAILBLAZERS: TRAIL WORKDAY

In partnership with the Catawba Land Conservancy and Tarheel Trailblazers, Crescent volunteers helped remove invasive plant species from the Airline Bike Park trails, which are contiguous to the River District, and more specifically, Westrow Town Center.

KEEPING HOLLY SPRINGS BEAUTIFUL

Colleagues supporting our Life Sciences Project, the YIELD Holly Springs supported the local community by organizing a litter sweep alongside construction and design partners from Gilbane, Timmons, Nuveen, and Obrien Atkins.

JAMES RIVER PARK SYSTEM INVASIVE PLANT REMOVAL

Colleagues supporting project efforts in the Richmond, Virginia area joined to remove invasive vines throughout the Pony Pasture of the James River Park, encouraging native plants and animals to thrive.

HOLIDAY DONATION DRIVE

We also held holiday donation drives for the Salvation Army and Toys for Tots to collect holiday gifts for the less fortunate in our communities.

CHARITABLE MATCHING PROGRAM

To further reinforce our mission to Build Community and Better People’s Lives, Crescent Communities supports the spirit of giving among colleagues. Recognizing the important work that nonprofit organizations do to lift our community, Crescent Communities offers a financial match of up to $500 to qualified charitable contributions annually.

BOARD SERVICE SUPPORT

Colleagues are encouraged to serve the community and be involved with nonprofit organizations for which they are passionate. Crescent Communities offers financial support to qualified nonprofit organizations for which a colleague serves on a governing board.

Support for Affordable Housing

Housing affordability is a growing concern in all markets where Crescent Communities develops. In addition to supporting several impactful nonprofit organizations who are tackling these challenges, Crescent Communities directly contributes to housing initiatives that create affordable housing options through development and by preserving naturally occurring affordable housing (NOAH).

In 2020 and again in 2023, Crescent Communities invested in the Housing Impact Fund, a private sector fund dedicated to purchasing, preserving, and improving NOAH in Mecklenburg County. Operated by Ascent Housing, the Housing Impact Fund has secured over 1000 residences, and successfully contracted over 90% of its renovation work with minority-led companies.

In 2023, Crescent Communities supported the Davidson Housing Coalition by providing financing to preserve and improve The Bungalows, a 32-unit affordable rental community in Davidson, NC. The financing allowed the residents to remain in their homes at affordable rates and supported repairs and improvements to the community.

In December, Crescent Communities invested in the development of a mixed-income Senior Living community in the

Charlotte area led by Laurel Street Residential. This project will provide much needed housing for both at-rate and affordable housing for the senior community located adjacent to an established master planned continuing care retirement facility.

“Driven by a personal passion for championing affordable housing and economic self-sufficiency, I am profoundly grateful to be part of a company that not only shares this vision but translates it into action through significant financial investment and dedicated volunteer hours. Together, we are providing more than houses; we are crafting the foundation for countless futures.”

JASON LABONTE, CHIEF INVESTMENT OFFICER, CHAIRMAN AND CITY ADVISORY BOARD MEMBER, ENTRYWAY

Governance

Governance

Resiliency

Our culture of resilience is demonstrated by our approach to community development and our overall business strategy. To create communities that remain relevant and prosperous over time, we balance our vision and values with our flexibility to adapt. Focusing on a foundation of resiliency allows us to seed communities that will sustain and continue to thrive long after our involvement ends. The cultivation of diverse yet synergistic lines of business supports a strategy that is both robust and resilient, yielding consistent results.

Our Commitment to Effective Governance

In July 2018, Crescent Communities became an independently operated investment management affiliate of Sumitomo Forestry of America, Inc. Through our integrated services of development, construction, property operations, and investment management, Crescent Communities strives to deliver strong investment performance through the cycles, capture market opportunities with innovative products, and continue our research-driven investment approach executed by locally based teams.

We provide our investors with real estate investment opportunities to meet their investment objectives, mindful of our obligations to accountability, transparency, and trust. We also aim to provide healthy and productive spaces, develop and operate assets in a manner consistent with Crescent’s tradition of responsible corporate citizenship, and oversee the management of buildings to maximize resource efficiency and environmental sustainability.

Crescent Communities adheres to governance practices that will ensure our investors’ ongoing confidence and thoughtful risk management. This involves a continual review of how legislation, guidelines, and best practices should be embodied in our approach. Representing the company, the Chairman and CEO actively participates in the National Association of Corporate Directors, an organization dedicated to identifying and fostering best practices in governance.

Crescent Communities is governed by a seven-person board which includes four representatives of Sumitomo Forestry and the company Chairman & CEO. Sumitomo Forestry of America has one representative director and a small financial and operations oversight team based at Crescent’s Charlotte headquarters. Operating authority is delegated by our Board of Directors via a clearly delineated delegation of authority policy.

AUDITING

Crescent Communities engages an independent, nationally recognized audit firm to perform an annual audit of the organization and to ensure our financial statements and operations are presented accurately and in accordance with generally accepted accounting principles of the United States. The Company’s auditors have certified that our financial reporting accurately reflects the financial position of Crescent Communities and its subsidiaries.

BUSINESS ETHICS

Our governance policies include our Crescent Code of Business Ethics. The Code of Business Ethics sets forth principles that colleagues must follow. It describes ethical risks for colleagues, provides guidance on how to recognize and deal with ethical issues,

and explains how to report what is believed to be unethical conduct. The Code is intended to foster a culture of integrity, compliance, respect, and accountability.

This Code applies to all colleagues of Crescent Communities, its subsidiaries, and its affiliates and requires annual certification by each colleague. Please refer to the Code document for details. The Code is managed by our internal Director of Risk Management and Internal Audit. We maintain a whistle-blower hotline, EthicsLine provided by InTouch, and we take measures to ensure that every colleague is aware of the existence and purpose of the hotline.

DATA SECURITY, PRIVACY, AND CONTINUITY

Data security, privacy and business continuity are top priorities at Crescent Communities. We use both internal and external resources to help minimize cyber threats. We continually audit and test our systems, our infrastructure, and our organization to ensure we are working to effectively stop cyber threats before they happen. Crescent Communities also takes privacy very seriously and we work diligently to safeguard all personal data.

RISK MANAGEMENT

Crescent Communities has developed standards and processes for risk management across our various disciplines and product types. Our Director of Risk Management works with our insurance brokers and risk consultants to maintain proper insurance coverages for the company and our assets, as well as insurance requirements for our contractors and service professionals. Our external legal teams are also key partners in mitigating risk.