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C O M M I T T E D TO

E XC E L L E N C E ENGAGEMENT, EXPERIENCE, ENVIRONMENT

2019 CORPOR ATE CITIZENSHIP


Above: Gables Residences | Denver, CO Gables Old Town North | Alexandria, VA

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W H AT ’ S INSIDE LEADING WITH EXCELLENCE A Message from Our CEO 4 About Gables Residential 7 Corporate Governance 12 2019 Recognition 16 Sustainability Scorecard 18

ENGAGEMENT EXCELLENCE Our Commitment 21 How We Engage Residents 22 How We Engage Associates 26 How We Engage Communities 40 How We Engage Our Industry 46

EXPERIENCE EXCELLENCE Our Commitment 51 The Associate Experience 52 The Resident Experience 56

ENVIRONMENTAL EXCELLENCE Our Commitment 64 Green Building Certifications 66 Operational Practices 76

REPORTING About This Report Performance Benchmarks GRI Content Index

89 90 92


LEADING WITH

E XC E L L E N C E A MESSAGE FROM OUR CEO As we reviewed our 2019 corporate citizenship performance and assembled materials for this report, I was struck not only by how far we’ve come in many areas, but by the quality of our accomplishments. We strive for excellence every day in all aspects of our business and hold ourselves accountable to this standard in our corporate citizenship initiatives. I’m proud to showcase how our teams implement strategies while reaching for this high bar as we move toward achieving and exceeding our short- and long-term goals. Gables’ goal as a good corporate citizen is to provide sustainable communities where people are engaged, experiences are exceptional and the environment is respected. We achieve this in multiple ways. First, we pay close attention to what current and future residents desire and we continually introduce innovations to meet their needs. Second, we operate our business as efficiently as possible to help ensure growth and profitability for our stakeholders and stability for our associates. Third, we manage existing communities and develop new ones by embracing practices, partners and resources that deliver maximum benefits with minimal impact on the environment. Underlying these and all of our environmental, social and governance (ESG) actions is a passion to be excellent. On the environmental front in 2019, for example, Gables communities with green building certifications accounted for more than half of our portfolio and we continue to build all new communities to these standards. At our nine communities under construction in 2019, we diverted seven percent more construction waste from landfill than the previous year. In addition, we approved LED garage lighting retrofits for 18 percent of our stabilized communities, which are scheduled for 2020.

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From a social perspective, in 2019, The Ashley Gables Buckhead in Atlanta, Georgia, earned our first Fitwel certification, signaling our focus on resident health and wellness. We received Aetna’s Workplace Wellness Award, which recognizes our commitment to helping associates live healthier lives, for the third year in a row. Gables’ governance policy updates in 2019 address our management of greenhouse gases (GHG), climate change adaptation and resilience. Importantly, we implemented a new policy to include sustainability targets in our associates’ performance goals. With all that has been accomplished, there is much more to do. We are committed to improving our internal building performance reporting, monitoring additional metrics and being more transparent. Knowing our associates play a significant role in reaching our ESG targets, we will educate them further on what these goals mean to our business and how they can contribute in their responsibilities every day. Finally, we further emphasize social resilience and our responsibility to care for our residents and associates during natural disasters and other disruptions. As I write this letter, the world is in the grips of the COVID-19 pandemic. Gables is working diligently to protect our associates’ and residents’ health and safety while maintaining our residents’ homes. Our corporate associates shifted to working from home, and we have implemented significant changes in the way our onsite, essential services teams support our residents, including enhanced electronic communications. We are tracking what we learn and identifying best practices and tools to position us to be even stronger for the future. The drive for excellence has been part of Gables’ culture since our founding 38 years ago. Our 2019 achievements are proof of our longstanding commitment to engagement, experience and environmental excellence for our residents, associates and stakeholders. Each year our achievements are a direct result of the commitment and efforts of all Gables associates. I am so thankful and proud of our team and greatly appreciate their many contributions.

Susan M. Ansel President & Chief Executive Officer

Gables Park Plaza | Austin, TX

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ABOUT GABLES RESIDENTIAL Gables Residential is a privately held, vertically integrated real estate company specializing in multifamily and mixed-use community development, construction, ownership, acquisition, financing and management. Established in 1982, we manage and have third-party management operations for approximately 30,000 apartment homes and 225,000 square feet of retail space in high-growth markets throughout the United States. Gables’ residents value a live-work-play lifestyle where they can be close to employment centers, shopping, entertainment venues and public transportation. We develop communities in Established Premium NeighborhoodsTM (EPN), providing high-quality apartment homes offering beautiful amenities and extraordinary services to our residents.

GABLES PORTFOLIO COMPOSITION Class A 69%

Premier Suburb 30%

Urban 70% Class B 31%

Quality*

Location

HighRise 14%

MidRise 53%

Garden Style 33%

Type**

STABILIZED PORTFOLIO DEVELOPMENT AND LEASE-UP PORTFOLIO Washington, D.C. 15% Atlanta, GA 15% South Florida 13% Dallas, TX 13% Boston, MA 11% Austin, TX 11% Denver, CO 10% Houston, TX 9% Southern California 3%

Washington, D.C. 31% Denver, CO 20% Boston, MA 18% Austin, TX 13% Atlanta, GA 12% Houston, TX 6%

Chart percentages represent gross real estate value with unconsolidated joint ventures weighted at share. *Class A is defined as assets with net effective rents 12+ percent higher than T12 market average rent per Axiometrics. Values are weighted by net operating income with unconsolidated joint ventures weighted at share. **Type breakdown reflects ENERGY STARÂŽ definitions. Garden style communities are low-rise buildings, one to four stories high; mid-rise are five to nine stories; high-rise are 10 stories or more.

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OUR MISSION Our mission of “Taking Care of the Way You LiveTM” extends to our residents, associates, stakeholders, the community and the environment. As part of this mission, we strive to develop and manage environmentally responsible communities that promote healthy lifestyles and contribute social value. Our commitment to excellence in these areas is reflected in 1) the way we engage our associates, residents, neighbors, stakeholders and industry; 2) the experiences we create for associates and residents; and 3) policies and practices to reduce our environmental impact in terms of energy, water, waste and GHG emissions by 10 percent by 2020, compared to 2015 levels. This report describes Gables’ achievements and dedication in these and other aspects of corporate responsibility.

OUR VISION Our vision is to lead in innovation, adaptability and entrepreneurship that enable us to provide high quality living experiences in premier apartment communities and appeal to an evolving demographic in high-growth U.S. markets.

FOUNDED ON VALUES Excellent companies clearly define and consistently adhere to core values—the principles and priorities that define their culture. At Gables, our core values guide us to do what’s best for our business, associates, residents, stakeholders and community, now and for the future. We strive to provide:

EXTRAORDINARY QUALITY AND SERVICE TO OUR RESIDENTS UNPARALLELED EMPLOYMENT EXPERIENCES FOR OUR ASSOCIATES UTMOST INTEGRITY AND VALUE FOR OUR STAKEHOLDERS ENDURING CONTRIBUTIONS TO OUR LOCAL COMMUNITIES

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OUR MISSION:

TAKING CARE OF THE WAY YOU LIVE

Gables Pointe 14 | Arlington, VA

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COMMITTED TO ASSOCIATE DIVERSITY AND INCLUSION

GENDER IN MANAGEMENT Female

75%

Male

25%

Gables Executive Management Group

RACE WhiteExecutive Management 46% Gables GroupHispanic

29%

African 19% American

Asian 2% Mixed Race 2% Other/Unspecified 2%

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GENERATIONAL Millennials

35%

Generation X

46%

Baby 18% Boomers

Gen Z 1%

GENDER Female

47%

Male

53%

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C O R P O R AT E G OV E R N A N C E The mission and values that define our culture are woven into the fabric of our business practices. The responsibility to be a good corporate citizen is not only a focus for Gables’ leaders, but for everyone in the organization. We take a multilayered approach to corporate governance. The Gables Sustainability Advisory Council develops the strategic direction and vision for our sustainability initiatives. Gables’ Board of Directors approves funding for sustainable investments and budgets set forth by the Council. Our director of sustainability leads the Council, whose members include our chief executive officer (CEO), chief operating officer (COO) and senior leaders from all areas and regions of the company, including development and construction, operations, facilities management, marketing, asset management and information technology. Council members meet quarterly to assess and guide the sustainability program. They recommend projects and programs, measure progress on corporate goals and identify potential corporate responsibility risks and opportunities. Council members also review updated sustainability initiatives and publish annual results.

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The Ashley Gables Buckhead | Atlanta, GA

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Gables Seaport | Boston, MA


SUSTAINABILITY PARTNERSHIPS AND PROGRAMS Gables enhances sustainability efforts and accountability by collaborating with credible, innovative organizations that share our values and priorities. These include:

ENERGY STAR: Developed by the U.S. Environmental Protection Agency (EPA), ENERGY STAR Portfolio Manager is the leading tool for tracking building performance. Gables benchmarks energy use, GHG emissions, water use and waste against all properties in ENERGY STAR Portfolio Manager.

Urban Land Institute (ULI) Greenprint Center for Building Performance: Greenprint is a worldwide alliance of leading real estate owners, investors and strategic partners committed to reduce GHG emissions by 50 percent by 2030. In 2019, Gables joined other Clarion funds in reporting our annual sustainability metrics to Greenprint, along with 8,900+ commercial real estate assets.

Global Real Estate Sustainability Benchmark (GRESB): GRESB assesses real estate assets’ ESG performance to provide standardized data to investors. Gables completes the assessment annually.

United States Green Building Council (USGBC): The USGBC created LEED®, the leading program for green buildings and communities worldwide. Gables is a USGBC member and uses the LEED rating system in new development design and construction.

Southface Institute: Southface promotes sustainable homes, workplaces and communities through education, research, advocacy and technical assistance. Gables is a member of the institute and uses its EarthCraft certification program in designing and building new developments in the southeastern U.S.

Principles for Responsible Investment (PRI): The United Nations-backed PRI strengthens Gables’ commitment to incorporating ESG factors into our investment decisions. Clarion Partners, Gables’ fund manager, signed on in May 2013.

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Multifamily Property Executive of the Year

Elite 1% ORA™ Properties

Commercial Property Executive Sue Ansel, Gables President & CEO

J Turner Research Gables Columbus Center, Coral Gables, FL Shadetree Apartments, Ruskin, FL The Ashley Gables Buckhead, Atlanta, GA Theo, Denver, CO The Union at River East, Ft. Worth, TX

Property Management Company of the Year Multi-Housing News

101 Best and Brightest Companies to Work For® Atlanta, GA, six years running Dallas, TX, four years running

Best Places to Work in Multifamily® Multifamily Leadership Four years running

Excellence in Customer Service Award Pulse of the City News Atlanta, GA and Dallas, TX

Apartment and Condominium Industry Awards for Excellence Delta Associates Best Washington/Baltimore Mid-Rise Apartment Community Gables Old Town North, Alexandria, VA

Workplace Wellness Award Aetna Three years running

Top 125 in Training

Triple Bottom Line Award Livable Buckhead The Ashley Gables Buckhead, Atlanta, GA

Award of Excellence for Best Multifamily Residential Community in Northern Virginia National Association of Industrial and Office Properties Gables Old Town North, Alexandria, VA

Property Management PACE Awards Market Rate: 10 Light, Baltimore, MD; Gables 12 Twenty One, Arlington, VA; Gables Dupont Circle, Washington, D.C. Judge’s Choice: Urban Green, Frederick, MD Distinguished Communities: Columbia Town Center, Columbia, MD; Curve 6100, Alexandria, VA; Gables City Vista, Washington, D.C.; Gables Takoma Park, Washington, D.C.; Gables Upper Rock, Rockville, MD; Waverly Village, Arlington, VA  

Training Magazine 12 years running

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2019 RECOGNITION

Gables Columbus Center | Coral Gables, FL

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S U S TA I N A B I L I T Y SCORECARD Gables manages and tracks resource use at the asset level to identify savings opport u n i t i e s , monitor progress toward goals and report results to stakeholders. Energy, GHG emiss i o n s , wa te r a n d wa s te d a t a a re t ra c ke d u s i n g E N E R G Y S TA R Po r t f o l i o M a n a g e r.

ENERGY SAVINGS

GHG EMISSIONS SAVINGS 2020 GOAL

2020 GOAL

5.28%

5.54% 2015 BASELINE

2015 BASELINE 2018

2019

WATER SAVINGS 2020 GOAL

2015 BASELINE

2015 BASELINE

2018

18

5.11%

2018

2019

RECYCLING RATE

2020 GOAL

-2.69%

3.43%

-3.48% 2019

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-1.54%

-0.68%

2018

2019


2019 SUSTAINABILITY METRICS OVERVIEW Assets Reporting Total Square Footage

2019 44 13,393,649

2018 44 13,393,649

2017 44 13,393,649

2016 44 13,393,649

2015 Baseline 44 13,393,649

Energy

Goal: Reduce Energy Use by 10% by 2020

Like-for-Like (one million British thermal units [MBtu])

157,966

158,398

163,034

165,111

167,225

Compared to Baseline (%)

-5.54%

-5.28%

-2.51%

-1.26%

Baseline

Emissions

Goal: Reduce Greenhouse Gas (GHG) Emissions by 10% by 2020

Like-for-Like (metric tons) Scope 1 (Direct) Carbon Dioxide (CO2) Emissions Scope 2 (Indirect) CO2 Emissions

1,932

1,898

1,958

1,977

2,098

15,896

16,244

16,251

16,627

16,688

Total CO2 Emissions

17,827

18,143

18,209

18,605

18,787

Total CO2 Emissions Compared to Baseline (%)

-5.11%

-3.43%

-3.07%

-0.97%

Baseline

Water

Goal: Reduce Water Use by 10% by 2020

Like-for-Like (kgal)

411,610

408,457

403,557

402,194

397,750

Compared to Baseline (%)

3.48%

2.69%

1.46%

1.12%

Baseline

Water Score Portfolio Average 68 69 69 69 70

Waste

Goal: Increase Recycling Rate by 10% by 2020

Assets Reporting 43 43 43 43 43 Total Square Footage

13,301,802

13,301,802

13,301,802

13,301,802

Total Waste (Disposed and Recycled Materials) (tons)

8,816

8,654

8,923

10,240

7,507

Waste (Disposed) (tons)

6,806

6,754

7,054

8,280

5,744

Recycled Materials (tons)

13,301,802

2,010

1,900

1,869

1,960

1,763

Recycling Rate (%)

22.80%

21.95%

20.94%

19.14%

23.49%

Recycling Rate Compared to Baseline (%)

0.68%

1.54%

2.55%

4.35%

Baseline

Total Community / Apartment Count Communities (Stabilized and Lease-up) Apartments (Stabilized and Lease-up)

103 28,926

101 28,348

109 30,901

108 30,530

111 31,630

Construction Count Communities Apartment Homes

9 2,420

11 2,936

7 1,783

5 1,185

12 2,657

We calculate like-for-like sustainability metrics based on communities where we have operational control and only after one full year of stabilized operations.

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R E H

G I H G N I N D O I N S E R P E V S RE

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R

E N G AG E M E N T

E XC E L L E N C E OUR COMMITMENT OUR COMMITMENT When people Whenare people engaged are engaged in a topic, in athey topic, arethey more areinvested, more invested, interested and feel a strong connection to it, interested often andyielding feel a great betterconnection results. We to strive it, often to engage yielding our associates, residents, communities and partners better results. in causes We strive and activities to engage that ourenhance associates, their residents, personal, professional and social wellbeing. communities and partners in causes and activities that enhance their personal, professional and social wellbeing.

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H OW W E E N G AG E RESIDENTS CAPTIVATE!™ LOYALTY PROGRAM In 2017, we launched a points-based loyalty program called CAPTIVATE! to engage and reward residents for various activities. Residents participate in “challenges,” such as posting online reviews, completing surveys on our performance, posting about their community on social media, attending a resident event or renewing a lease. We reward them with points redeemable for Amazon, Starbucks, Nike or iTunes gift cards, or vouchers for apartment home enhancements. In 2019, more than 23,000 residents participated, which is almost 62 percent of residents in Gables communities offering CAPTIVATE!

62% OF RESIDENTS

PARTICIPATED DIGITALLY ENGAGED: THE GABLES MOBILE APP The Gables mobile app is a convenient resource for our residents. It puts everything related to our communities in one place, including a bulletin board, event calendars, social media links, maintenance trackers, rent payment portal, retail rewards, package delivery notifications and weather forecasts.

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Gables Pointe 14 | Arlington, VA

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EXCELLENCE IN ACTION EVERYDAY SUSTAINABILITY MAKES A DIFFERENCE In 2019, Gables launched Everyday Green to promote sustainable living. On the first Friday of the month, associates wear something green and post their photos to social media. Residents are awarded CAPTIVATE! points redeemable for gift cards when they post examples of sustainable living.

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E N G AG E M E N T E XC E L L E N C E


WE AWARD CAPTIVATE! POINTS TO ENCOURAGE RESIDENTS TO LIVE GREEN

Gables Old Town North | Alexandria, VA

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H OW W E E N G AG E A S S O C I AT E S ASSOCIATE PULSE SURVEYS We work with OfficeVibe to conduct ongoing, anonymous pulse surveys to measure how our associates think and feel about working at Gables and identify areas of opportunity. In the July 2019 survey, we scored:

8.7/10 FOR AMBASSADORSHIP Reflects the level of pride associates have in the organization and if they would recommend us to other people for career opportunities and as places to live. This is an improvement over our 2018 score of 8.4.

8.1/10 FOR RECOGNITION Represents the quality and frequency of recognition associates receive. Our score increased from 7.9 in 2018.

7.5/10 FOR WELLNESS Indicates the level of stress associates feel at work and how they perceive their employer’s efforts to promote healthy life habits. We improved from 7.3 in 2018.

8.0/10 FOR OVERALL ENGAGEMENT Measures several facets of the Gables associate experience, including manager relationship, ambassadorship, feedback, happiness, satisfaction, personal growth, recognition, peer relationships, wellness and alignment. Our score increased from 7.7 in 2018.

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EMPLOYEE NET PROMOTER SCORE The employee Net Promoter Score (eNPS) is a simple way to measure associates’ loyalty and pride in the organization and the likelihood they will recommend Gables as a place to work. We ask every newly hired associate the eNPS question in their onboarding survey and every three months thereafter to track changes and trends. In July 2019, our eNPS score was 39, which is considered very good.

GABLES’ eNPS SCORE: 39 VERY GOOD -100

-30

LOW

-10

0

10

OKAY

OKAY

GOOD

30

100

VERY GOOD

TRAINING Training improves productivity, effectiveness, engagement and morale. It also offers tools to encourage associates to be more successful and fulfilled in their jobs. Gables offers ongoing training to associates to develop and strengthen skills, ensure compliance and expand career horizons. In 2019, 936 Gables associates completed more than 9,100 hours of live instructor-led, live virtual, on-demand and self-paced training, an average of 9.7 hours per person.

IN 2019, GABLES ASSOCIATES AVERAGED 9.7 HOURS OF TRAINING PER PERSON 27


COMPLIANCE TRAINING To ensure the highest standards of conduct, we provide ongoing training to our associates. In 2019, more than 600 Gables associates completed courses in topics essential to upholding our values and culture: • Fair Housing • Code of Conduct • Diversity and Fostering Inclusion • IT Security Awareness • Preventing Workplace Harassment • Preventing Workplace Harassment for Supervisors

MAINTENANCE COACHING Our Maintenance Coaching Program includes training modules for plumbing, electrical, heating/ventilation/ air conditioning (HVAC), communication, customer service, safety, general maintenance and computer software. Regional service trainers assess our service associates’ individual skills and customize training for each person.

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“PEOPLE WHO GO THROUGH INTENSIVE LEADERSHIP

TRAINING ARE BETTER EQUIPPED TO TAKE ON CHALLENGES WHEN THEY ARISE. THEY HAVE CONFIDENCE TO INITIATE IMPROVEMENTS IN OUR PROCESSES AND PROGRAMS. THEY THINK BIGGER THAN THEIR SINGLE COMMUNITY AND DEVELOP A GLOBAL MINDSET ABOUT OUR BUSINESS AND THEIR SUCCESS. THIS RESULTS IN ASSOCIATES ASKING FOR THE NEXT OPPORTUNITY AND GROWING IN KNOWLEDGE, EXPERIENCE AND LEADERSHIP.

- GABLES COMMUNITY MANAGER

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LEADER Gables’ award-winning LEADER program helps associates develop introductory leadership skills they can use professionally and personally. Participants evaluate self-awareness through personality tests and emotional intelligence assessments. During the six-month program, they hone their coaching, talent development and change management skills to evolve both their teams’ and their personal performance. The program concludes with team presentations solving actual business challenges in our organization with actionable solutions. LEADER has proven to be a catalyst for individual leadership growth and improved team performance for our community and corporate associates. Since 2015, 25 percent of LEADER participants have been promoted.

GABLES LEADERSHIP INSTITUTE Gables Leadership Institute (GLI) is an advanced leadership development program for high-potential talent across our organization. Associates are nominated and selected based on their performance and future potential. GLI mixes classroom learning, experiential activities and team-based projects. Sessions on strategic analysis, communication, critical thinking and talent development prepare associates for present and future leadership positions. Participants design Individual Development Plans with an external leadership coach who helps them navigate their 360° self-assessment reports. This cross-functional, cohort style program gives associates opportunities to stretch their network of peers to other regions and increase exposure to Gables senior management and culture.

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THE GLI TEAM DEVELOPED AN

INNOVATIVE SOLUTION TO LOWER GABLES’ INCREASING WASTE CONTAMINATION FEES

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EXCELLENCE IN ACTION INNOVATIVE SOLUTIONS FOR THE REAL WORLD Gables strongly encourages associates to be lifelong learners and innovators. In 2019, we assigned business challenges to teams in our GLI and LEADER training and development programs and encouraged them to find innovative solutions. The GLI team’s assignment was to address the 400 percent increase in waste contamination fees that Gables communities incurred in 2019, from improper recycling of plastic bags, food waste and soiled food packaging. The team developed a program consisting of education, signage and resident engagement to increase knowledge and promote proper recycling habits. Gables is instituting the program in 2020.

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FIT4FUNDS WELLNESS PROGRAM Fit4Funds is a wellness program for all Gables associates, offered in partnership with Virgin Pulse. Enrolled associates can access the Virgin Pulse mobile app to track healthy activities, take part in challenges, find healthy tips and earn incentives for healthy habits such as eating right, getting enough sleep and reaching their daily steps goal. Every Gables participant receives a wearable device for tracking physical activity, sleep, nutrition, hydration and more. Associates in the Fit4Funds program can earn Ovations points. Ovations is our online rewards program through which supervisors recognize top performers in sustainability, wellness, service excellence, innovation, leadership, mentorship and brand ambassadorship. In 2019, 637 Gables associates earned 400 Ovations points redeemable for time off with pay, merchandise and gift cards by getting healthier.

FIT4FUNDS CHAMPIONS Fit4Funds Champions are experts in our wellness program. They encourage associates to get involved, tell them how to join, answer basic questions and come up with creative ideas to get and stay active. They gather feedback from associates to improve the program and lead us to be a healthier organization. Any Gables associate who is committed to wellness, physical activity and healthy living is eligible to be a Fit4Funds Champion.

68% OF GABLES ASSOCIATES EARNED OVATIONS POINTS FOR ADOPTING HEALTHIER LIFESTYLES

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WELLNESS FAIRS AND FITNESS CENTERS Every year, Gables hosts Wellness Fairs at our communities across the country. Associates set appointments for free biometric screenings and flu shots online or by phone, giving them more time to learn and participate in other activities. In 2019, we hosted Wellness Fairs in Miami and Boca Raton, Florida; Denver, Colorado; Rockville, Maryland; Austin, Houston and Dallas, Texas; Atlanta, Georgia; and Watertown, Massachusetts.

Fitness centers in Gables communities are open to all Gables associates. All facilities have state-of-theart fitness equipment and many have Peloton bikes, on-demand fitness classes and Inbody Body Composition Analyzers.

Gables Brookhaven (left) and Gables Emory Point (right) | Atlanta, GA

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FITNESS CENTERS IN GABLES COMMUNITIES ARE OPEN TO ALL GABLES ASSOCIATES Gables Old Town North | Alexandria, VA

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EXCELLENCE IN ACTION ASSOCIATES TAKE THE CHALLENGE Gables associates enjoy competition, so we use this format to inspire them to elevate their health and wellbeing to the next level. Our 2019 events included the Scale the Summits Challenge, where teams tackled eight thrilling virtual peaks from Morocco to Nepal. More than 325 Gables associates participated, taking more than 46 million steps (or 23,000 miles) in two weeks and exceeding the previous quarter’s challenge by three million steps. Participants averaged 139,000 steps each. Another successful event was our Self Care & Relationships Challenge. Each week in February 2019, associates were invited to join a challenge focused on a different activity, such as relaxation breathing, listening to calming music and setting aside time for family and friends. Approximately 20 percent of associates participated and half of the participants competed in all four challenges.

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GABLES ASSOCIATES WALKED 46 MILLION STEPS IN TWO WEEKS

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H OW W E E N G AG E COMMUNITIES

SINCE 2000, GABLES ASSOCIATES HAVE VOLUNTEERED 147,443 HOURS AND RAISED $1,657,092 FOR LOCAL CAUSES

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GABLES DAY We believe that part of being a good corporate citizen is giving back to the communities where we operate. Each year, we set aside a day for our associates to volunteer for causes with special meaning in their cities and neighborhoods. On Gables Day 2019, 840 Gables associates volunteered 6,654 hours and raised $81,363 in donations for these charities and initiatives: The Trail Foundation, Austin, TX Protects, enhances and connects the Butler Hike-and-Bike trail at Lady Bird Lake Piedmont Park Conservancy, Atlanta, GA Enhances and preserves a vital urban green space as a cultural and recreational resource Rock Creek Conservancy, Washington, D.C. Protects lands and waters of Rock Creek and revitalizes Rock Creek Park as a natural oasis Trinity Park Conservancy, Dallas, TX Helps maintain 10,000 acres of the Trinity River, Dallas’ largest public green space Houston Food Bank, Houston, TX Distributes nutritious meals to those in need in southeast Texas Project Homeless Connect, Denver, CO Partners with community organizations to bring essential and hard to access services to homeless people San Diego Coast Keeper, San Diego, CA Protects and restores fishable, swimmable and drinkable waters in San Diego County Boston Cares, Boston, MA Fills more than 20,000 volunteer spots annually to support 165+ Greater Boston schools and nonprofit agencies Bakas Equestrian Center, Tampa, FL Provides therapeutic horseback riding activities for children and adults with disabilities HomeSafe, Lake Worth, FL Provides prevention and intervention services for domestic violence and child abuse victims

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EXCELLENCE IN ACTION DOGS WHO SERVE Gables’ Paws to Care™ program allows our associates and residents to be involved in pet-centric events and charitable causes outside their local communities. One example is Guardian Angels Medical Service Dogs, Inc., which we have supported since 2016. Guardian Angels is a national nonprofit organization that trains and donates medical service dogs to veterans and others dealing with post-traumatic stress disorder (PTSD), traumatic brain injury, seizures, mobility issues and other disorders. Since its founding in 2010, Guardian Angels has successfully paired almost 300 dogs with deserving recipients, at no charge. Service dog recipients are often able to reduce or eliminate prescription medications, sleep better, be more active and increase family interaction. In addition to supporting and promoting Guardian Angels, Gables makes it easy for residents to donate through our CAPTIVATE! loyalty program.

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SINCE 2016, GABLES ASSOCIATES AND RESIDENTS HAVE RAISED MORE THAN $20,000 FOR GUARDIAN ANGELS

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EARTH DAY We celebrate Earth Day with events at all our apartment communities to educate and raise sustainability awareness among residents, associates and neighbors. In 2019, our communities conducted a variety of activities customized to what is important to their communities, including:

• ACCEPTED ELECTRONICS FOR RECYCLING • EMAILED SUSTAINABILITY TIPS TO RESIDENTS • GAVE AWAY MINI SUCCULENTS AND WATER CONSERVATION TIPS • HANDED OUT POTTED VEGETABLES AND HERB PLANT SEEDS • PROMOTED SAVING BEES FROM HARMFUL PESTICIDES AND PRACTICES In addition to hosting resident events, associates engaged in word games to test their knowledge of Gables’ corporate sustainability goals, energy and water conservation, waste reduction and health and wellness programs. Winners received recognition and Ovations points toward gift cards and other rewards. Earth Day is an important part of our sustainability efforts. We promote recycling, educate associates and residents on green policies and standards and align with vendors and suppliers who share our concern for the environment.

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H OW W E E N G AG E O U R I N D U S T RY Gables Residential is a leading voice in the multifamily housing industry. Our associates are members of numerous professional associations and our senior executives and managers serve on boards and committees to help move the industry forward. We are especially active in the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA), which represent multifamily property owners and operators and the 39 million Americans who live in apartment homes. We commit time and resources to promote sustainable practices in multifamily communities. Our executives and associates speak at conferences, write thought leadership pieces and advocate for environmentally responsible construction standards, design innovation and other issues. As an example, Gables president and CEO, Sue Ansel, represented the NMHC and NAA in testimony on affordable housing before the U.S. House Committee on Financial Services’ Housing and Insurance Subcommittee. Our leaders’ industry activities in 2019 included:

Sue Ansel, President & CEO • NMHC chairwoman and Executive Committee member

Matt Bearden, Vice President, Construction

Dawn Severt, Chief Financial Officer • NMHC Investment Committee chairwoman and Executive Committee member

• Atlanta Apartment Association board member • Georgia Apartment Association board member • Livable Buckhead Housing Stratification Study Steering Committee member

Cris Sullivan, Chief Operating Officer • NMHC Apartment Strategies Advisory Council member • NAA Executive Forum co-chairwoman

John Akin, Chief Investment Officer • National Association of Home Builders Multifamily Leadership Board member • ULI Multifamily Council member

Gigi Giannoni, Senior Vice President • Multifamily Innovation Conference board member • Multifamily Executive Women of Influence founding member • NMHC Women in Tech & Marketing founding member and presenter • Modern Message board member

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• NMHC Design & Construction Committee chairman

Johnny Ladson, Development Director

Jenny Wiebrand, Area Vice President of Investments, Texas • ULI Austin Advisory Board member and Women’s Leadership Initiative Steering Committee member • Downtown Austin Alliance chairwoman

Carolyn Lewis, Recruiting Manager • NAA Careers Committee member, HR Advisory Committee member and Apartmentalize Committee member Juliette Apicella, Director of Sustainability • NAA Sustainability Committee member  

E N G AG E M E N T E XC E L L E N C E


Journalist and author Katie Couric with Gables CEO Sue Ansel at the 2019 NMHC annual meeting in San Diego, CA

Gables SVP Gigi Giannoni speaking at the Multifamily Executive Conference

U.S. Department of Housing and Urban Development Secretary Ben Carson with Sue Ansel at the 2018 NMHC board meeting in Washington, D.C.

Gables SVP Rob Presley (second from right) on a panel at the 2019 NMHC annual meeting

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PROJECT S P OT L I G H T GABLES POINTE 14 | ARLINGTON, VA Gables Pointe 14 is a 370-apartment home community in the highly desirable Rosslyn-Ballston corridor. It is walking distance from public transit stations, dining, entertainment, parks and greenspace. CERTIFICATIONS • Certified LEED for Homes, Gold Level • Pursuing Fitwel certification ENERGY EFFICIENCY • LED lighting throughout the community • ENERGY STAR dishwashers, refrigerators and washers • Programmable thermostats • High-efficiency HVAC systems and water heaters • Low-e glass windows WATER CONSERVATION • WaterSense labeled, water-efficient toilets, shower heads and faucets • Water-efficient landscaping and irrigation system, limited areas requiring irrigation, drought-tolerant plants • Rainwater from roof captured, filtered and slowly released into storm water system to alleviate flooding and waterway pollution INDOOR ENVIRONMENTAL QUALITY • Fresh-air circulation system in each apartment home • Low volatile organic compound (VOC) interior paints • 100 percent smoke-free community • Indoor air quality management practices • Green cleaning program HEALTH AND WELLBEING • Minimal noise in apartment homes • Accessible stair with active design strategies • Swimming pool • Fitness studio • Water bottle refilling stations • Roof deck with views of Washington, D.C. • Outdoor community space with public art GREEN TRANSPORTATION • Half-mile walk from public transit station • Electric vehicle charging stations • Preferred parking for low-emitting vehicles • Bike storage and repair

• Located on walking/biking trail • Walk Score – 77 “Very Walkable” • Bike Score – 62 “Bikeable”

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EXPERIENCE

E XC E L L E N C E OUR COMMITMENT Our vision of excellence is to create high quality living experiences for our residents, unparalleled employment experiences for our associates and utmost value for our stakeholders. We continually challenge ourselves to develop programs to make life easier, better and more fulfilling for those we serve.

Gables Old Town North | Alexandria, VA

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T H E A S S O C I AT E EXPERIENCE OVATIONS RECOGNITION PROGRAM Excellence deserves recognition. Gables’ Ovations program spotlights top performers and rewards them with points redeemable for time off with pay, gift cards, merchandise, airfare, hotels and cruises. Ninety percent of Gables associates are enrolled and, since the program launched in 2017, associates have visited the Ovations website more than 15,000 times. Through Ovations, associates have earned more than two million points, equal to 2,500 days of paid time off, which enables them to enjoy a healthy work-life balance.

SINCE 2017, GABLES ASSOCIATES HAVE EARNED

2,500 DAYS OF PAID TIME OFF

SUCCESS COACH PROGRAM Success Coaches are available to every newly hired or promoted Gables associate to enhance his or her onboarding experience. Success Coaches are high-potential associates who have proven their company knowledge and show advanced skills in their current positions. They are nominated and asked to complete the Success Coach orientation, which includes training on learning styles, recognizing coaching opportunities and technology tools to connect with associates.

HEALTHIEST YOU APP All Gables associates have access to Healthiest You, a program and mobile phone app offering 24/7 access to doctors and health services. Associates can talk to a doctor by phone or video, find low-cost prescriptions in their area, search for healthcare providers and get up-todate information from their insurance carriers.

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WORKDAY HUMAN RESOURCES PLATFORM Throughout 2019 and into 2020, Gables invested in creating a more efficient, integrated and sustainable associate experience using data and key performance indicators to drive outcomes. Workday, a leading human resources software solution, now drives Gables’ associate communications, recruiting, onboarding, timekeeping, payroll, compensation, benefits, training, talent management and succession planning. Associates can access parts of Workday on their smartphones, further increasing efficiency and convenience. The single system eliminates the need for multiple passwords and enables associates to improve performance through custom training.

OPEN-DOOR POLICY Our Open-Door communication policy encourages associates to have honest discussions and give feedback on any topic without fear of retaliation. We encourage associates to talk to any manager at any time if they have problems, complaints, suggestions or observations. By listening to our associates, we improve our operations, address concerns and increase associates’ understanding of our practices and decisions. Gables uses EthicsPoint to give associates an easy, risk-free, anonymous and confidential way to report actual or suspected activities that may involve criminal conduct or violations of our Code of Ethics. Associates may file a report on EthicsPoint’s website or call EthicsPoint toll-free. We investigate and act on reports as appropriate.

SUNSHINE FUND Gables established the Sunshine Fund in 2003 to help associates facing personal hardships caused by natural disasters, health problems, the loss of a family member or other unexpected events. Associates contribute to the fund voluntarily and the money goes directly to associates in need.

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THE RESIDENT EXPERIENCE SIGNATURE SERVICE™ PROGRAM Gables focuses on residents and their unique living experiences in our communities. We truly embrace our “Taking Care of the Way You Live” mission through our Signature Service program and tagline, “Service is Our Signature Amenity™.” We created and embrace this program to provide extraordinary quality and service to our residents. Signature Service community residents enjoy enhanced concierge-like services from the moment they walk through our doors. We launched Signature Service at Gables Columbus Center in Coral Gables, Florida, in 2018. We expanded it to The Ashley Gables Buckhead in Atlanta, Georgia; Gables Residences in Denver, Colorado; and Crimson, a Gables Residential Signature Collection community in Houston, Texas.

CONCIERGE SERVICE Extraordinary quality and service to our residents is a Gables core value. To enhance this level of excellence in direct interactions with residents and guests, we implemented a concierge program in some of our new communities. We define our concierges as “wish assessment and fulfillment specialists.” In addition to handling residents’ day to day needs and requests quickly and seamlessly, these professionals coordinate special occasions, handle event ticketing and dining reservations, book spa and golf outings and make travel and transportation recommendations. They call on their networks of local and national connections to make the impossible possible and the difficult routine. They are onsite, always available and conduct themselves with utmost professionalism to earn our residents’ trust and confidence.

AMENIFY APP In select Gables communities, we offer Amenify, a technology platform that connects residents to services such as personal training, fitness classes, dog walking, in-home massages, cleaning and ridesharing. Amenify curates best-in-class local and national service professionals and makes it easy for residents to book services with them through the Amenify app.

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The Ashley Gables Buckhead | Atlanta, GA Gables Columbus Center | Coral Gables, FL

58 E X P EERXI P EN E RCIEE N EC XC E EELXC L EENLC LE N C E


SMOKE-FREE FOR YOU AND ME Smoking in America has reached an all-time low, with more than 85 percent of adults refraining. Even so, it remains the leading cause of preventable disease and death in the U.S.1 Gables’ Smoke-Free for You and Me policies protect our residents, associates and communities from the negative effects of smoking. All new residents and residents renewing current leases are required to adhere to our No Smoking Policy, which states that no person may smoke in apartment homes or community common areas including the courtyard, balconies, parking area and decks or within 25 feet of any building associated with the community.

100% SMOKE-FREE TRANSITIONING TO SMOKE-FREE SMOKING PERMITTED

FITWEL CERTIFICATION Fitwel certification demonstrates an organization’s commitment to wellness through building design, development and operations. It rates an environment’s health and wellbeing performance in categories such as location, building access, outdoor spaces, water supply and shared spaces. For Gables, it demonstrates to our associates, residents, stakeholders and the surrounding community that improving health is a high priority. We piloted the Fitwel program in Atlanta, Georgia, at The Ashley Gables Buckhead, which is now certified One Star, and at Gables Brookhaven. We are working toward certification in several Gables communities across the U.S.

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THE ASHLEY GABLES BUCKHEAD EARNED OUR FIRST FITWEL CERTIFICATION

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EXCELLENCE IN ACTION HEALTHY LIVING AT THE ASHLEY GABLES BUCKHEAD According to the Global Wellness Institute™, homes, communities and surrounding environments can influence up to 90 percent of health outcomes.2 The institute reports wellness lifestyle real estate, meaning homes proactively designed and built to support residents’ holistic health, is growing rapidly, with 740 residential projects underway as of 2017. The Ashley Gables Buckhead is an excellent example of wellness lifestyle real estate. The community earned Fitwel certification in late 2019 for excellence in walkability, interior environments, outdoor spaces, active lifestyle amenities and access to healthy food.

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PROJECT S P OT L I G H T GABLES REPUBLIC SQUARE | AUSTIN, TX Gables Republic Square is a 221-apartment home and mixed-use community located with Hotel Zaza in the heart of the warehouse district. The community’s setting and amenities demonstrate our commitment to sustainable, healthy living.

CERTIFICATIONS • Pursuing LEED for Building Design and Construction, Silver Level ENERGY EFFICIENCY • LED lighting throughout the community • ENERGY STAR dishwashers, refrigerators and washers • Programmable thermostats • High-efficiency HVAC systems and water heaters • Low-e glass windows WATER CONSERVATION • WaterSense labeled, water-efficient toilets, shower heads and faucets • Water-efficient landscaping and irrigation system, limited areas requiring irrigation, drought-tolerant plants INDOOR ENVIRONMENTAL QUALITY • Fresh air circulation system in each apartment home • Low VOC interior paints, flooring systems, adhesives and sealants • 100 percent smoke-free community • Indoor air quality management strategies and practices • Green cleaning program HEALTH AND WELLBEING • Minimal noise in apartment homes • Swimming pool • Fitness studio • Water bottle refilling stations GREEN TRANSPORTATION • One-minute walk to public transit station • Electric vehicle charging stations • Preferred parking for low-emitting vehicles • Bike storage and repair • Half-mile to lake and park • Walk Score – 97 “Walker’s Paradise” • Bike Score – 93 “Biker’s Paradise” • Roof deck with views of downtown Austin • Adjacent to active urban green space and weekly farmers market

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E N V I R O N M E N TA L

E XC E L L E N C E OUR COMMITMENT The drive to achieve excellence permeates everything we do at Gables, including how we manage our impact on the environment. We continually look for ways to improve, both in our operations and our building practices.

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Gables Upper Rock | Rockville, MD

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GREEN BUILDING C E R T I F I C AT I O N S Buildings impact the environment through energy, water and raw material use, waste generation and atmospheric emissions. To lessen these impacts, green building standards, certifications and rating systems were created to promote sustainable design and building practices. Since 2015, 100 percent of newly constructed Gables communities have earned green building certifications. Currently, 53 percent of Gables communities are certified, registered or pursuing green building certification from these partners:

National Green Building Standard (NGBS) Gables Arsenal Street, Watertown, MA Gables Cherry Creek, Denver, CO Gables McKinney Ave, Dallas, TX Gables Post Oak, Houston, TX Gables River Oaks, Houston, TX Gables Speer Blvd, Denver, CO Gables Tanglewood, Houston, TX Gables University Station, Westwood, MA Gables Upper Rock I, Rockville, MD Gables Upper Rock II, Rockville, MD Gables Water Street, Irving, TX

ENERGY STAR Multifamily New Construction

USGBC LEED for Building Design and Construction Gables Park 17, Dallas, TX Gables Park Plaza, Austin, TX Gables Park Tower, Austin, TX Gables Takoma Park, Washington, D.C. Gables Pointe 14, Arlington, VA

Fitwel The Ashley Gables Buckhead, Atlanta, GA

Florida Green Building Coalition Gables Columbus Center, Coral Gables, FL Gables Ponce, Coral Gables, FL

Gables Midtown, Atlanta, GA

Austin Energy Green Building

EarthCraft Multifamily

Gables Park Plaza, Austin, TX Gables Park Tower, Austin, TX

Gables Brookhaven, Brookhaven, GA Gables Century Center, Chamblee, GA Gables 820 West, Atlanta, GA Gables Midtown, Atlanta, GA The Ashley Gables Buckhead, Atlanta, GA

USGBC LEED for Homes Gables 12 Twenty One, Arlington, VA Gables Centerpointe, Fairfax County, VA

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100% OF GABLES COMMUNITIES CONSTRUCTED SINCE 2015 EARNED GREEN BUILDING CERTIFICATIONS Gables Old Town North | Alexandria, VA

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EXCELLENCE IN ACTION TURNING THE TIDE ON WATER USE Water conservation is critical to local reservoirs, which often supply drinking water to homes, help generate electricity, protect cities from flooding, cool power plants and provide natural habitats and recreational opportunities. In 2016, Gables set a sustainability goal to reduce water use by 10 percent by the end of 2020 compared to 2015 levels. Operational changes and leak management lowered our water use by 1.23 percent in 2017 and 2018. Because about 38 percent of a home’s indoor water use comes from shower heads and faucets, we saw an opportunity to reach our water goal faster by retrofitting these fixtures to more efficient models. To prioritize our communities for retrofit, we reviewed water use performance using the EPA’s 1-100 rating based on comparative performance of similar multifamily buildings. Since a score of 75 or higher is considered very good, we targeted communities with scores under 75 and a few with higher scores. We estimate the retrofit project reduced 2019 water consumption by 23.4 million gallons, or 5.6 percent of the portfolio’s total. To further refine our water use efficiency, in 2019, we engaged associates living in Gables communities to voluntarily test four shower heads in their homes for coverage, spray, overall experience and whether they would recommend them to a friend. The Gables Sustainability Advisory Council reviewed the results and chose the top-rated shower head for future retrofits. We will implement the shower head and faucet retrofit project in 2020.

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OUR SHOWER HEAD AND FAUCET RETROFIT WILL REDUCE WATER CONSUMPTION BY 5.6%

Gables Park Plaza (left) and Gables Park Tower (right) | Austin, TX

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THE CANOPY WILL SAVE APPROXIMATELY $5,000 IN ELECTRICITY EXPENSES AND 29.9 METRIC TONS OF CO2 PER YEAR

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EXCELLENCE IN ACTION SOLAR ENERGY POWERS ROOFTOP SPACES The Ashley Gables Buckhead in Atlanta, Georgia, opened in early 2019, welcoming residents with elegant interiors and state-of-the-art amenities. A true testament to healthy lifestyles, the community is within walking distance of shopping, dining and entertainment venues and earned EarthCraft Multifamily and Fitwel certifications. The 15th-floor rooftop is home to a dog park and the SkyLine Terrace offering views in every direction. A 28.8-kilowatt (kW) solar photovoltaic canopy provides shade and shelter and generates about 42,300 kilowatt hours (kWh) of electricity annually—enough to power all rooftop amenities. We estimate the canopy will save approximately $5,000 in electricity expenses and 29.9 metric tons of carbon dioxide (CO2) per year, the amount produced by consuming 69 barrels of oil or driving six passenger vehicles for one year. The system’s Tesla Powerwall 2 batteries store solar energy to generate electricity for nighttime operation and serve as a backup for interruptions in electric service. When the system produces more energy than is needed and the batteries are fully charged, it distributes surplus electricity to other common areas in the community. Since becoming operational in July 2019, the solar canopy has generated almost 16,000 kWh of energy, offsetting grid electricity by 11 metric tons of CO2.

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COMMUNITY RECYCLING One hundred percent of Gables-owned communities recycle.

OFFICE WASTE MANAGEMENT Gables associates in our Atlanta, Georgia, corporate office have worked to reduce office waste for years. As an example, in 2018, we replaced plastic, single-use utensils, cups and plates with metal utensils, ceramic plates and bowls, and branded glassware and mugs. The effort reduced waste and saved $5,000 in supplies for the year. In 2019, we expanded the program to our Washington, D.C., and Dallas, Texas, offices.

CONSTRUCTION WASTE In 2019, Gables construction projects diverted more than 13,425 tons, or 85 percent of waste, from landfill, a seven percent increase from 2018.

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Gables Brookhaven | Atlanta, GA

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EXCELLENCE IN ACTION A HARVEST OF GOOD One hundred percent of Gables’ new construction is green certified. Our Atlanta, Georgia projects follow Earthcraft Multifamily guidelines, resulting in lower environmental impact, healthier indoor air quality, higher energy and water efficiency and reduced resource consumption. While touring the site of our new Gables Vinings community in Atlanta before construction, our development and construction team discovered beautiful white oak, red oak, mountain oak, poplar, cherry, persimmon and other hardwood tree varieties. Seeing the opportunity to reuse these valuable materials, we partnered with Arborguard, Eutree and Site Solutions to select and harvest the timber for use in the new building. We engaged Atlanta furnituremaker Madera Arts and Eutree to make flooring, paneling, furniture and other architectural elements from the salvaged timber for the development’s community spaces.

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OUR NEW GABLES VININGS COMMUNITY INCORPORATES VALUABLE

HARDWOODS HARVESTED

FROM THE SITE BEFORE CONSTRUCTION

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O P E R AT I O N A L P R AC T I C E S Gables adopted standard sustainability policies and practices more than a decade ago. Consistent compliance across our portfolio and in new developments, coupled with ongoing additions to improve our performance, result in high energy efficiency and quality resident environments.

ENERGY • Program thermostats to temperature setbacks in common areas and vacant apartment units • Smart thermostats in some communities • LED lighting upgrades and daylight sensors to control outdoor lighting • Equipment inspections, preventive maintenance and efficient end-of-life replacements • Window and door weatherizing • Water heaters set to 120 degrees in models and common areas • Energy contract negotiations and utility bill accuracy audits • ENERGY STAR appliances

WATER • Water saving devices, plumbing fixtures and cleaning equipment • Leak detection systems • Plumbing and equipment inspections and preventive maintenance • Rain and soil moisture sensors and water-efficient drip irrigation systems and timers • Cooling tower management plans • Energy controls on furnaces and boilers • Resident education on water saving techniques and leak reporting • Utility bill accuracy audits • Drought-tolerant landscape plants and rainwater harvesting for irrigation

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GABLES UTILITY BILL AUDITS IN 2019 IDENTIFIED MORE THAN $139,000 IN UTILITY REFUNDS AND CREDITS

The Ashley Gables Buckhead | Atlanta, GA

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INDOOR ENVIRONMENTAL QUALITY • Transition to smoke-free communities • Water-resistant building materials to prevent moisture and mold • HVAC unit inspections and preventive maintenance • High-quality, minimum MERV (Minimum Efficiency Reporting Value) 4 air filters (MERV 8 in new communities) in mechanical systems to eliminate most major allergens and pollutants • Ventilation from operable windows, bathroom fans and mechanical systems to draw fresh air inside • Energy-efficient windows to prevent drafts and maintain desired temperatures • High-performance air handling systems and sealed ductwork to improve efficiency and control air contaminants • Ductwork sealed during construction and renovation to control indoor pollutants • Low or no VOC paints, flooring, glue and other maintenance products • Acoustics solutions to minimize outside noise and protect privacy • Large windows to let natural light in and provide outside views • Operable windows and blackout shades in many communities • Green training for associates

CLEANING • Carpet cleaning contractors who use natural botanical substances from pure sources • Eco-friendly carpet installation and household cleaning supplies agreements for all onsite vendors • Recycled paper products or reusable cloth rags • Resident education on using eco-friendly products

CARPET • Recyclable Type 6 nylon carpet • Installer contract language affirming that type 6 nylon carpet removed from Gables communities is recycled wherever recycling programs are available

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Gables Park Plaza (left) and Gables Park Tower (right) | Austin, TX

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LED UPGRADES IN THREE GABLES COMMUNITIES SAVE $91,000 AND ALMOST 300 METRIC TONS OF CO2 PER YEAR

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EXCELLENCE IN ACTION LIGHTING RETROFITS FOR BIG RETURNS Gables University Station is a 350-apartment home community built in 2015 in the greater Boston, Massachusetts, area of Westwood. In 2018, an energy audit of the interior lighting systems identified 1,345 mostly fluorescent fixtures in common areas, amenity spaces and corridors for retrofit to LED bulbs. The upgrade, completed in December 2018, reduced the community’s 2019 energy use by 181,200 kWh, or 21 percent. It saved $41,400 in electricity costs, a 23 percent decrease; and 128 metric tons of CO2, the equivalent of 14.8 homes’ energy use for one year. The Gables University Station LED retrofit cost $175,000. The community took advantage of an incentive program from Eversource, the local electric and gas company, that covered 100 percent of the costs. Requests to re-lamp fixtures have dropped, reducing expenses and freeing the Gables team to work on other projects. Team members proudly discuss the upgrade during prospective resident tours to reinforce Gables’ commitment to saving energy and reducing our carbon footprint. Gables Arsenal Street near downtown Boston in Watertown, Massachusetts, experienced similar benefits from an LED upgrade. A 2018 energy audit of interior lighting systems found 968 fluorescent fixtures in common areas, amenity spaces and corridors that could be replaced with LED bulbs. The upgrade, completed in February 2019, reduced the community’s energy use by 159,464 kWh, or 22 percent; lowered the electric bill by more than $24,000, or 16 percent; and saved 113 metric tons of CO2, the equivalent of 13 homes’ energy use for one year. Gables Point Loma in San Diego, California, completed an LED lighting retrofit of 221 corridor and stairwell fixtures in December 2019. The project is expected to reduce the community’s electricity costs by $25,600 and deliver a 145 percent return on investment and payback in less than one year. Electricity use is expected to fall 41 percent from the prior 12 months, prevent 51.6 metric tons of CO2 per year and save the service team’s time spent replacing fluorescent light bulbs.

Gables Arsenal Street | Watertown, MA

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PROCUREMENT SUPPLIES AND UTILITIES Our environmental policies for sustainable procurement, building materials and energy procurement include: • Ongoing consumables such as paper and office supplies used in daily operations should contain at least 10 percent post-consumer and/or 20 percent post-industrial material. • Rechargeable batteries should be used when possible. • Durable goods such as office equipment, appliances and power adaptors should be ENERGY STAR labeled, when available. • Building materials should meet environmental standards and attributes as outlined in standard operating procedures and building certification programs. • Negotiations for the most competitive energy rates are to be conducted when there is a choice of utility services.

ELECTRIC VEHICLE CHARGING The trend toward zero-emission vehicles is growing, with more than 1.18 million electric vehicles (EVs) on U.S. roads in 2019, and EV sales on the rise.3 We encourage this cleaner mode of transportation by adding EV charging stations in our new developments and stabilized communities. In 2019, 27 percent of Gables communities offered EV charging stations. All new Gables developments include infrastructure for EV-ready parking spaces based on green building program standards or project team recommendations. We designate parking spaces for low-emitting and fuel-efficient vehicles as guided by new development green building certification program standards.

CO2 EMISSIONS (METRIC TONS)

In our existing communities, we install EV charging stations based on market and resident demand. We prepare for future charging capacity expansion by installing EV-ready parking spaces based on recommendations from our onsite teams and senior leaders. Where possible, we designate existing parking areas to accommodate low-emitting and fuel-efficient vehicles.

50.00 40.00 30.00 20.00 10.00 0

2015

2016

2017

2018

2019

CUMULATIVE EV CHARGING CO2 EMISSIONS SAVINGS

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27% OF GABLES COMMUNITIES HAVE EV CHARGING STATIONS

Gables Old Town North | Alexandria, VA

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WALK AND BIKE SCORES Residential communities in more walkable locations improve health by giving people opportunities to stay active, interact with others and easily access local amenities.4 Gables prioritizes sites in sought-after, walkable neighborhoods with excellent livability. These locations are close to public transit, retail and entertainment districts, parks, employment centers and quality education systems. Walk Score analyzes walking routes to nearby businesses, services and amenities. Locations within a five-minute walk of these destinations received the highest score. Gables Walk Score is highly favorable, especially in the “Walker’s Paradise” category, where we improved 21 percentage points from 2018. Bike Score measures how good a location is for riding a bike. Scores are calculated by assessing bike lanes, hills, destinations, road connectivity and bike commuting share mode. Gables 2019 Bike Score is excellent, improving by eight combined percentage points in the “Bikeable” and “Very Bikeable” categories from 2018.

Gables Speer Blvd Bicycle Maintenance Lounge | Denver, CO

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SOMEWHAT BIKEABLE WALKER’S PARADISE

CAR-DEPENDENT 28%

BIKER’S PARADISE 9%

21%

15% 40%

BIKEABLE

16% VERY WALKABLE

35%

SOMEWHAT WALKABLE

GABLES’ WALK SCORES

36% VERY BIKEABLE

GABLES’ BIKE SCORES

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PROJECT S P OT L I G H T GABLES VISTA | DENVER, CO Gables Vista is a 12-story tower with 255 apartment homes featuring sweeping views of the Rocky Mountains. The community is 15 minutes from downtown Denver and close to Cherry Creek Trail, a popular walking and biking route.

CERTIFICATIONS • Pursuing NGBS, Bronze ENERGY EFFICIENCY • LED lighting throughout the community • ENERGY STAR dishwashers, refrigerators and washers • Nest smart programmable thermostats • Highly reflective thermoplastic polyolefin (TPO) cool roof • Low-e glass windows WATER CONSERVATION • Water-efficient toilets • Water-efficient landscaping and irrigation system, limited areas requiring irrigation, drought-tolerant plants INDOOR ENVIRONMENTAL QUALITY • Low VOC interior paints • 100 percent smoke-free community • Blackout window shades in all bedrooms • Indoor air quality management practices • Green cleaning program HEALTH AND WELLBEING • Minimal noise in apartment homes • Rooftop swimming pool and spa with views of the Rocky Mountains and city skyline • Two fitness centers • Demonstration kitchen • One-tenth mile from Cherry Creek Trail • Less than half-mile from park and tennis GREEN TRANSPORTATION • Walking distance to bus stops • Electric vehicle charging stations • Bike storage and repair • Walk Score – 85 “Very Walkable” • Bike Score – 85 “Very Bikeable”

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REPORTING ABOUT THIS REPORT Gables is proud to present our sixth Corporate Citizenship Report summarizing our sustainable development and management practices for the year ended December 31, 2019. Performance data include Gables owned and joint venture assets, unless otherwise noted. For more information, visit gables.com/everyday-green. Our most recent previous report covering calendar year 2018 was published online in August 2019.

Gables Upper Rock II | Rockville, MD

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PERFORMANCE BENCHMARKS Gables has participated in the Global Real Estate Sustainability Benchmark (GRESB) Real Estate Assessment since 2012. Our most recent sustainability performance is reflected in the 2019 GRESB Assessment score of 81. This compares favorably to the non-listed residential funds peer group average of 70. The score’s ESG breakdown reflects Gables leadership in each area. Environment: Gables 77, peer group 63. Social: Gables 94, peer group 79. Governance: Gables 79, peer group 80. Gables continuously looks to improve ESG-related capabilities and execution in an environment where the bar for excellence is high. In 2019, we refined our sustainability policies for the company and our associates to further drive performance in these areas.

81/100 OVERALL - GREEN STAR 72 GRESB AVERAGE | 70 PEER AVERAGE

81/100 IMPLEMENTATION & MEASUREMENT 69 GRESB AVERAGE | 68 PEER AVERAGE

81/100 MANAGEMENT & POLICY

80 GRESB AVERAGE | 76 PEER AVERAGE ENVIRONMENT 77 GABLES

OVERALL GRESB SCORE BY YEAR 90 80 70 60 50 40 30 20 10 0

65 GRESB AVERAGE | 63 PEER AVERAGE

SOCIAL 94 GABLES 79 GRESB AVERAGE | 79 PEER AVERAGE

GOVERNANCE 79 GABLES 2013

2014

2015 GABLES SCORE

90

2016

2017

2018

PEER GROUP AVERAGE

REPORTING

2019

84 GRESB AVERAGE | 80 PEER AVERAGE


Gables Tanglewood | Houston, TX

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GRI CONTENT INDEX This report contains material that references Global Reporting Initiative (GRI) Sustainability Reporting Standards, (GRI Standards), GRI 102: General Disclosures 2016. This index presents the GRI disclosure and the location of GRI-referenced material. Number GRI Disclosure Title Reference Page Number ORGANIZATIONAL PROFILE 102-1 Name of organization About Gables Residential 7 102-2 Activities, brands, products and services About Gables Residential 7 102-3 Location of headquarters Gables Corporate Offices Back cover 102-4 Location of operations About Gables Residential 7 102-6 Markets served About Gables Residential 7 102-7 Scale of the organization About Gables Residential 7 102-8 Information on employees and Committed to Associate Diversity other workers and Inclusion 10-11 102-12 External initiatives A Message from Our CEO, Performance Benchmarks 4-5, 90 102-13 Membership of associations Sustainability Partnerships and Programs, How We Engage Our Industry 15, 46-47 STRATEGY 102-14 Statement from senior decision maker A Message from Our CEO 4-5 102-15 Key impacts, risks and opportunities Training, Compliance Training, Open-Door Policy 27-28, 55 ETHICS AND INTEGRITY 102-16 Values, principles, standards and Our Mission, Our Vision, norms of behavior Founded on Values 8 GOVERNANCE 102-18 Governance structure Corporate Governance 12 102-19 Delegation authority Corporate Governance 12 102-20 Executive-level responsibility for Corporate Governance economic, environmental, and social topics 12 STAKEHOLDER ENGAGEMENT 102-43 Approach to stakeholder engagement

Engagement Excellence

21-47

REPORTING PRACTICE 102-50 Reporting period Reporting 89-90 102-51 Date of most recent report Reporting 89-90 102-52 Reporting cycle Reporting 89-90 102-53 Contact point for questions Gables Corporate Offices Back cover regarding the report 102-55 GRI content index GRI Content Index 92 ENVIRONMENTAL 302-4 Reduction of energy consumption Sustainability Scorecard, 18-19, 71, Operational Practices 76, 81

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REPORTING


GRI helps businesses and governments worldwide understand and communicate their impact on critical sustainability issues such as climate change, human rights, governance and social wellbeing. This enables real action to create social, environmental and economic benefits for everyone. The GRI Sustainability Reporting Standards are developed with true multi-stakeholder contributions and rooted in the public interest. https://www.globalreporting.org/information/about-gri/Pages/default.aspx

ENDNOTES 1 Centers for Disease Control and Prevention. “Current Cigarette Smoking Among Adults in the United States,” November 18, 2019 2 “What is Wellness Lifestyle Real Estate & Communities?” Global Wellness Institute 3 Edison Electric Institute (EEI). Electric Vehicle Sales: Facts & Figures, April 2019 4 1.3 Walkability, Rationale, Fitwel Reference Guide for the Fitwel Certification System, January 2019, Version 2, Q1

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GABLES CORPORATE OFFICES Atlanta 3399 Peachtree Road, NE Suite 600 Atlanta, GA 30326 404-923-5500

Austin 6850 Austin Center Boulevard Suite 200 Austin, TX 78731 512-502-6000

Boca Raton 750 Park of Commerce Boulevard Suite 300 Boca Raton, FL 33487 561-997-9700

Dallas 3811 Turtle Creek Boulevard Suite 1500 Dallas, TX 75219 214-252-2600

Denver 101 University Boulevard Suite 240 Denver, CO 80206 720-616-6830

Houston 5847 San Felipe Suite 3250 Houston, TX 77057 713-784-4144

Washington, D.C. Metro 8300 Greensboro Drive Suite 650 McLean, VA 22102 703-918-2500

CONTACT Juliette Apicella Director of Sustainability gablesresidential@gables.com

GablesResidential @gables gables_res

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The Ashley Gables Buckhead | Atlanta, GA

Profile for Gables Residential

Gables Residential Corporate Citizenship Report 2019  

Gables Residential Corporate Citizenship Report 2019