Gables 2015 Kingsley Results

CORE Survey Program Presentation of Results

On behalf of:

February 2016 1

2015 CORE Program

Agenda  Process Overview  Overall Results • Comparisons to Kingsley Index • Time Trend Comparisons

• Breakdowns

 Renewal Intentions  Service Delivery • Drivers of resident satisfaction and loyalty • Sales • Management • Maintenance

 Next Steps

2

2015 CORE Program

Section I:

PROGRAM METHODOLOGY

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2015 CORE Program

Survey process and methodology  Surveys sent at different milestones in the resident lifecycle: • • • •

Prospect Move-in Service Request Pre-renewal

 Survey invitations launch weekly • Reminders 4 and 9 days after initial invitation

 Kingsley Portal to monitor scores and review transcripts • Alert emails  

Prospect lease decision Request for contact

 Weekly Digests • Customized digests that include the 15 bonus questions (survey-specific)

 Quarterly reports • • • • • •

Portfolio Regional Vice President Regional Manager Region Community Compensation reports

 Resident reviews automatically sent to ReviewPush, Apartment Ratings, and Apartment Guide 4

2015 CORE Program

Weekly community digest emails Contain the 15 bonus questions Delivered every Tuesday to:       

Community teams Community managers Regional managers RVPs Service managers Regional service managers Regional service trainers

All residents who’ve completed a survey in the past week

5

2015 CORE Program

Firms in the Kingsley IndexSM (Partial List) Kingsley Associates surveys over 3.5 million residents per year and the Index includes data from 9 of the 15 largest apartment managers (2015 NMHC 50).

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2015 CORE Program

Online reputation management: Verified Resident Reviews • Add-on service – new page after existing questionnaire • No partial responses, and residents must enter a comment with >200 characters • Ability to respond to resident feedback • 2015 average reviews per month: 86 • Currently active for 87 communities

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2015 CORE Program

Online reputation management: Verified Resident Reviews “Moving out of town can be a bit scary, but the friendly staff at Gables Sugarloaf Apartments really made me feel at home.”

# of Reviews

% Recommended

70%

63%

60% 50%

4,600 4,400

54%

4,200

42%

40%

“A quiet, well-managed community with an excellent maintenance staff …”

-Gables Rock Springs 12/12/2015

4,000 4,372

30% 3,816

20% 10%

-Gables Sugarloaf 11/05/2015

3,600

3,553 June 2015

3,800

3,400 August 2015

January 2016 8

“I have been here for 6 months and this place is great. Always quiet and very neat …”

-Gables Metropolitan Uptown 1/11/2016

2015 CORE Program

Online reputation management: Certified Resident Reviews

Increase traffic to your community pages

• Live for 103 communities • You can select the top 2 reviews that appear first in the list • All responses go through a

moderation process Communities with reviews have twice the lease conversion rate compared to those without reviews

7 of 10 residents consult online ratings and reviews 2014 Kingsley / RentPath Study 9

2015 CORE Program

Response rates trail industry average Response Rates by Year 2012

2013

2014

2015

Industry Average

40%

34% 33% 32%

% Responded

30%

30% 29% 26%

20%

23%

24%

21%

22%

21%

20% 19%

18% 18%

19% 17%

16% 16%

18%

10% 5,201

6,406

6,876

7,090

10,710

10,712

12,264

12,667

4,779

5,718

5,871

5,732

9,414

10,082

11,021

10,892

30,104

32,918

36,032

36,381

Responses

0%

All Surveys

Prospect

Move-in

10

Service Request

Pre-renewal

2015 CORE Program

Section II:

2015 RESULTS SUMMARY

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2015 CORE Program

Overall satisfaction trends upwards in Q4 and outperforms the Index Overall Satisfaction by Survey Type 2015 Q1

2015 Q2

2015 Q3

2015 Q4

Kingsley Index

5.00

Average Score

4.00

4.27 4.05 4.02 4.09 4.10

4.22

4.22

4.22

4.11 3.90

3.90

3.90

3.89

3.97 3.73

3.00

2.00

1.00

All Surveys

Move-in

12

Pre-renewal

2015 CORE Program

Overall satisfaction continues to exceed the benchmark Overall Satisfaction - Gables vs. Kingsley Index Gables Residential

4.25

National Average

Average Score

4.15

4.05

3.95

3.85

3.75 Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

13

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

2015 CORE Program

Overall satisfaction trends upward in every region except Florida Overall Satisfaction - by Region Atlanta

Austin

California

Dallas

DC

Florida

4.25

KI

Percentile Rank

4.23 4.20 4.16

94% 93%

4.03 4.01 3.97 3.94

4.05 4.03 4.00

76% 72% 68%

3.89

3.90

4.15 Average Score

Houston

89%

4.10 4.05

3.95

3.85

3.75

2011

2012

2013 14

2014

2015 2015 CORE Program

Residents at class A communities are more satisfied and likely to recommend the community Key Performance Indicators - by Property Class Class A (n=16,413)

Class B (n=13,455)

5.00

4.44

Average Score

4.00

4.14

4.33

4.28

3.97

4.16

3.45

3.45

3.00

2.00

1.00

Overall Satisfaction

Overall Impression of Community

15

Community Recommendation

Renewal Intentions

2015 CORE Program

Residents at high-rise communities are least satisfied and least likely to renew their lease Key Performance Indicators - by Property Type Garden (n=15,556)

Mid-rise (n=9,928)

High-rise (n=1,617)

5.00

Average Score

4.00

4.38 4.05

4.42

4.43 4.22

4.12 3.92

4.26

4.11 3.49

3.41

3.00

3.25

2.00

1.00

Overall Satisfaction

Overall Impression of Community

16

Community Recommendation

Renewal Intentions

2015 CORE Program

Resident satisfaction is higher at owned assets Key Performance Indicators - Owned vs. Fee-managed Owned (n=15,085)

Fee-managed (n=12,547)

5.00

4.43

Average Score

4.00

4.16

4.36

4.28

4.17

3.97

3.44

3.46

3.00

2.00

1.00

Overall Satisfaction

Overall Impression of Community

17

Community Recommendation

Renewal Intentions

2015 CORE Program

Overall satisfaction exceeds the Index at more than 他 of communities Overall Satisfaction - by Community vs. Kingsley Index 5.00 Bottom 5 Communities*

% Difference

4.50

4.00 KI: 3.90

Central Park Altamonte Springs City West Mission Gate Vinings Corner The Berkshire

Overall Satisfaction

Response Count

3.16 3.24 3.34 3.41 3.43

99 93 148 95 181

27 communities trail the KI

87 communities exceed the KI 3.50

3.00

Top 5 Communities

Overall Satisfaction

Response Count

Desert Club Gables Oak Creek Broadway Knolls Gables Centerpointe Gables Point Loma

4.48 4.47 4.47 4.46 4.46

189 55 118 35 92

2.50

*Only communities with more than 10 responses are included in the tables above 18

2015 CORE Program

Overall satisfaction improves from prior year at majority of communities Most Improved and Declined Communities Largest Decline

Most Improved 2014

2015

% Change

Aqua Isles

3.00

4.14

38%

Kings Crossing

3.57

3.98

Mizner Park Apartments

3.42

Waverly Village

2014

2015

% Change

Gables River Oaks

4.58

4.13

-10%

12%

Mission Gate

3.65

3.34

-8%

3.78

11%

Central Park Altamonte Springs

3.45

3.16

-8%

3.65

4.00

10%

Gables Mirabella

4.31

4.04

-6%

Island Club

3.61

3.91

8%

215 C Street

4.05

3.80

-6%

Gables Uptown Tower

3.86

4.16

8%

Matthews Reserve

4.36

4.10

-6%

Gables Ponce

3.51

3.78

8%

Gables Park 17

4.37

4.11

-6%

Gables Upper Rock

4.10

4.36

6%

Gables Park Plaza

4.23

4.03

-5%

Gables Woodley Park

4.10

4.36

6%

Gables Boca Place

3.98

3.80

-5%

The Berkshire

3.23

3.43

6%

Gables Upper Kirby

4.28

4.09

-5%

Community Name

Community Name

19

2015 CORE Program

Quality of building is the only category below the Kingsley Index Largest Differences to the Kingsley Index Gables 2015

KI

Percentile Rank

Sales Staff - Knowledge

4.58

4.37

92%

Sales Staff - Responsiveness

4.52

4.33

86%

Community Recommendation

4.23

4.04

84%

Management - Responsiveness

4.11

3.92

83%

Sales Staff - Professionalism / Courtesy

4.61

4.47

82%

Overall Satisfaction with Move-in Experience

4.19

4.10

70%

Convenience of Office Hours

4.29

4.19

66%

Renewal Intentions

3.45

3.38

65%

Maint. - Cleanliness after Work Performed

4.52

4.45

65%

Quality of Building

3.82

4.10

16%

Rating Area

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2015 CORE Program

All 7 regions trail the Index in quality of building; 77% of communities below Quality of Building by Region

2015

Kingsley Index Houston Austin California Florida Atlanta DC Dallas

4.10 3.96 3.89 3.88 3.82 3.81 3.79 3.74

Quality of Building - Notable Communities Gables McKinney Ave Gables River Oaks Gables Centerpointe Kingsley Index Gables Portfolio Gables Uptown Tower Waverly Village City West Vinings Corner Flats at Wheaton Station Gables Katy Trail The Berkshire Mizner Park Apartments 215 C Street

Resident Comments  Lack of cleanliness • Buildings • Common areas • Lobby • Stairs • Courtyards

2015 4.75 4.47 4.45 4.10 3.82 3.19 3.17 3.11 3.10 3.08 2.94 2.80 2.71 2.54

 Improved landscaping  Pest control issues

 Mold  Pet feces

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2015 CORE Program

26 out of 30 rating areas improved from 2014 Largest Improvements / Declines from Prior Year Gables Gables 2014 2015

Rating Areas

% Change

Exterior Appearance / Cleanliness

4.28

4.40

2.8%

Condition upon Move-in - Fitness Center

4.15

4.22

1.6%

Condition upon Move-in - Business Center

4.33

4.40

1.6%

Landscaping

4.30

4.36

1.5%

Quality of Building

3.88

3.82

-1.4%

Maintenance - Notification of Completed Work

4.48

4.39

-2.0%

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2015 CORE Program

96% of residents indicate community appearance and quality is a high priority in their initial lease decision Priority in Initial Lease Decision Kingsley Index

Gables 2015

96% 92% 91%

Community appearance / quality Price / rental terms Apartment floor plan / layout

90% 84% 80% 80% 77% 75% 69% 65%

Quality of interior features / fixtures

Quality and variety of amenities Community / company reputation Proximity to work / school Convenience to social activities Controlled access gates

Online reviews / ratings Walkability to social activities / retail

54%

Community's green practices 0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% High Priority (4s and 5s)

23

2015 CORE Program

Section III:

RENEWAL INTENTIONS

24

2015 CORE Program

Satisfied residents are more likely to renew their lease Impact of Satisfaction on Stated Renewal Intent 100%

% Likely to Renew

80%

60%

83%

40% 59% 20%

0%

18%

0%

3%

Poor

Fair

Average

Good

Excellent

1 of 230

11 of 332

140 of 764

1,269 of 2,168

1,371 of 1,649

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2015 CORE Program

Renewal intentions improve relative to the Kingsley Index Renewal Intentions - Gables vs. Kingsley Index Gables Residential

3.70

National Average

Average Score

3.60

3.50

3.40

3.30

3.20 Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

26

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

2015 CORE Program

Renewal intentions exceed the Index across 6 of the 7 regions Stated Renewal Intent Likely

Unsure

Unlikely

Gables 2013

52%

26%

22%

Gables 2014

53%

25%

22%

Gables 2015

54%

23%

23%

Kingsley Index

51%

California DC

26%

63%

23%

20%

58%

21%

17%

21%

Atlanta

53%

24%

23%

Houston

53%

24%

23%

Florida

53%

Dallas

52%

Austin

51%

22% 26%

24%

27

25% 22%

25%

2015 CORE Program

Location, rental rate, and management are the top decision factors among residents likely to renew Top Renewal Decision Factors by Renewal Intent Kingsley Index Likely to Renew (n=2,770) 69%

Location / convenience Rental rate Staff / management Comm. appearance Security / safety

44% 41% 38% 37%

Unlikely to Renew (n=1,100)

Rental rate Staff / management Security / safety Location / convenience Apt.features / finishes

60% 27% 25% 23%

21%

0%

25%

50%

75%

100%

% of Respondents 28

2015 CORE Program

Section V:

SERVICE DELIVERY

29

2015 CORE Program

Service interaction continues to be a key driver in prospect and resident satisfaction Rating Areas Most Highly Correlated with Overall Satisfaction by Survey Type Prospect Satisfaction Drivers

Move-in Satisfaction Drivers

Sales Staff - Professionalism / Courtesy

Overall Satisfaction with Move-in Experience

Sales Staff - Knowledge

Sales Staff - Knowledge

Sales Staff - Responsiveness

Sales Staff - Responsiveness

Exterior Appearance / Cleanliness

Condition upon Move-in - Recreational Facilities

Landscaping

Cleanliness of Apartment at Move-in

Service Request Satisfaction Drivers

Pre-renewal Satisfaction Drivers

Maintenance - Quality of Work

Management - Overall Satisfaction

Maintenance - Responsiveness

Management - Problem Resolution

Maintenance - Notification of Completed Work

Management - Communication

Maintenance - Professionalism / Courtesy

Management - Responsiveness

Maintenance - Cleanliness after Work Performed

Management - Professionalism / Courtesy

= Leasing Metrics

= Maintenance Metrics 30

= Management Metrics 2015 CORE Program

All sales staff rating areas increase from 2014 and continue to outperform the Index Sales Staff - Gables vs. Kingsley Index Gables 2014

5.00

Average Score

4.50

4.52

4.58 4.37

4.48

Gables 2015

Kingsley Index

4.57

4.52

4.61 4.47

4.33 4.15

4.00

4.19

4.10

3.50

3.00

Percentile Rank

Sales Staff - Knowledge

Sales Staff Responsiveness

92%

86%

Sales Staff Overall Satisfaction with Professionalism / Courtesy Move-in Experience

82% 31

70% 2015 CORE Program

The sales staff’s knowledge outperforms the Index in all 7 regions Sales Staff Knowledge - by Region Austin

4.72

California

4.66

Florida

4.65

Gables Portfolio

4.58

Houston

4.57

Sales Staff Knowledge

Response Count

Gables Cherry Creek

4.89

36

Gables Town Colony

4.86

66

Gables Palma Vista

4.86

91

Gables Mirabella

4.85

47

Westbrooke Place

4.85

111

Sales Staff Knowledge

Response Count

Beechs Farm

4.07

41

Emory Point II

4.09

43

Central Park Altamonte Springs

4.15

123

Gables 12 Twenty One

4.17

65

Vinings Corner

4.18

124

Top 5 Communities

Bottom 5 Communities

Dallas

4.56

DC

4.54

Atlanta

4.52

KI

4.37

32

2015 CORE Program

Satisfaction with the move-in experience exceeds the Index in all 7 regions Overall Satisfaction with Move-in Experience - by Region California Austin Florida

Top 5 Communities

Overall Satisfaction with Move-in

Response Count

Gables Centerpointe

4.85

13

Westbrooke Place

4.77

31

Gables Park Tower

4.76

29

Gables Dupont Circle

4.75

12

Highland Park Brownstones

4.73

11

Overall Satisfaction with Move-in

Response Count

Central Park Altamonte Springs

3.18

56

Mission Gate

3.39

75

Beechs Farm

3.45

11

Vinings Corner

3.48

42

Gables McKinney Ave

3.53

19

4.38 4.32

4.21

Houston

4.20

Gables Portfolio

4.19

DC

4.18

Atlanta

4.13

Dallas

4.11

KI

4.10

Bottom 5 Communities

33

2015 CORE Program

Maintenance scores are in line with the prior year and continue to exceed the benchmark Maintenance Rating Areas - Gables vs. Kingsley Index Gables 2014

Gables 2015

Kingsley Index

Average Score

4.50

4.56 4.52

4.50 4.51

4.49 4.51 4.29

4.28

Quality of Work

Responsiveness

4.00

3.50

3.00

Percentile Rank

83%

No Kingsley Index Available

5.00

Notification of Completed Work

88% 34

4.63 4.64

4.57 4.60 4.46

4.45

Professionalism / Courtesy

Cleanliness after Work Performed

83%

79% 2015 CORE Program

California is the top performing region in terms of quality of work Maintenance - Quality of Work - by Region California Austin

Maintenance Quality of Work

Response Count

Emory Point II

4.88

17

Gables Uptown Trail

4.84

100

Post Oak

4.83

105

Gables Town Colony

4.83

63

Broadway Knolls

4.81

185

Maintenance Quality of Work

Response Count

Central Park Altamonte Springs

3.25

83

Kings Crossing

3.48

54

Mission Gate

3.54

161

Gables Boca Place

3.65

60

Beechs Farm

3.77

52

Top 5 Communities*

4.67 4.59

Houston

4.54

Dallas

4.51

Gables Portfolio

4.51 Bottom 5 Communities*

Atlanta DC Florida KI

4.50 4.48

4.38 4.29

*Only communities with more than 10 responses are included above

35

2015 CORE Program

All management rating areas significantly outperform the Index Management Rating Areas - Gables vs. Kingsley Index Gables 2014

5.00

Gables 2015

Kingsley Index

Average Score

4.50

4.00

4.04 4.06

3.90

4.11 4.11

4.00 4.01

3.93 3.93

4.20 4.21

4.11

3.89

3.92

Communication

Responsiveness

Professionalism / Courtesy

71%

83%

70%

3.79 3.50

3.00 Overall Satisfaction Problem Resolution Percentile Rank

80%

75%

36

2015 CORE Program

California leads all regions in overall satisfaction with management Management - Overall Satisfaction - by Region California Austin Houston

Mgmt. - Overall Satisfaction

Response Count

Avignon Townhomes

4.69

61

Gables Point Loma

4.61

36

Desert Club

4.60

84

Gables Oak Creek

4.56

27

Gables Cityscape

4.53

43

Mgmt. - Overall Satisfaction

Response Count

Mission Gate

3.03

71

The Berkshire

3.25

97

Gables Ponce

3.27

59

City West

3.29

34

Gables 12 Twenty One

3.31

13

Top 5 Communities*

4.40 4.24

4.13

Gables Portfolio

4.06

Florida

4.03 Bottom 5 Communities*

Atlanta Dallas DC KI

4.01 4.00

3.93 3.90

*Only communities with more than 10 responses are included above

37

2015 CORE Program

Key takeaways and next steps  Residents’ overall satisfaction is in the top quartile of the Kingsley Index o Satisfaction improved over the past year across 6 of the 7 regions

 Service delivery continues to be the key driver of resident satisfaction o All leasing, management, and maintenance metrics significantly outperform the Kingsley Index

 Continue providing high-quality service to optimize resident satisfaction and loyalty o Respond within 24 hours to residents requesting contact

 Develop community-specific action plans o Encourage community teams to complete specific, measureable and actionable plans o Share best practices from highest performing and most improved communities 38

2015 CORE Program

Action planning Community Managers

Regional Managers

Action Plan Submitters

Action Plan Reviewers

• Online Kingsley Portal Tool • Pulls in Current, Previous, Portfolio and Index scores for selected KPIs • Above the Portfolio?

• Share best practices • Trailing the Portfolio?

• Outline actionable items to implement within the community.

• Review action plans for all communities within your region • Approve action plans or send them back for amendments • Facilitate performance improvement plans • Maximize value derived from the survey program

39

2015 CORE Program

Case study: Completing action plans leads to increased resident satisfaction Completed Action Plan

5.00

4.50

Did Not Complete Action Plan

4.51

4.49

4.33 4.21

4.16

4.00

3.96

4.12 3.95

3.50

3.00

Overall Satisfaction

Mgmt. Leasing Process Maint. / Eng. Overall Satisfaction Overall Satisfaction Overall Satisfaction 40

2015 CORE Program

Business intelligence for the real estate industry

San Francisco 41 | Atlanta

2015 CORE Program