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T H E I M P O R TA N C E O F

home

2 0 2 0 C O R P O R AT E C I T I Z E N S H I P R E P O R T


a year like no other Throughout this report, we shine a light on what it was like to be a Gables associate last year. In “Scenes and Sentiments,” we offer mini-stories about ways in which associates worked to make Gables the best it could be for our residents and fellow associates — and share some of their candid thoughts and feelings about an extraordinary time. 2020 was an unforgettable year, a year in which associates demonstrated great flexibility and perseverance. We have never been prouder of — and more grateful for — our Gables associates than we are today.

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TA B L E O F C O N T E N T S LETTER FROM THE GABLES CEO

the importance of home

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A VIEW OF GABLES

the design of our home

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PERFORMING IN A PANDEMIC

making home the best it can be

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GABLES EMBRACES SOCIAL RESPONSIBILITY

heart and home PAGE 37 EXPLORE GABLES GOVERNANCE

come inside PAGE 79 GABLES HONORS THE ENVIRONMENT

earth, our home PAGE 94 GABLES PERFORMS WITH TRANSPARENCY

open to all PAGE 125

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LETTER FROM THE CEO

the importance of home

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5 GABLES RESIDENCES | DENVER, CO


As I reflect on the many ways that 2020 was a year of unprecedented challenge for our residents, our associates and our company, I am reminded of “The Importance of Home.” While we all know the key role a home plays in our lives, this past year has reminded us, in unimaginable ways, just how important home is as a place of comfort, security and refuge. The work that we do at Gables Residential to provide and maintain high-quality homes for our residents took on elevated significance during these challenging times. Gables’ core operating principle is “Taking Care of the Way You Live.” Ensuring that our communities offer an exceptional residential experience was never more critical than last year, when most of our residents spent more time than ever in their homes. At the beginning of the pandemic, Gables recognized the uncertainty of the times and the potential for negative impacts on our residents. We proactively took action to assist our residents to reduce stress, maximize flexibility and create pathways to minimize financial implications. Some of the steps we took included waiving late fees, creating rent payment plans, holding rental rates flat for several months and connecting

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letter from the ceo

residents with local community support services. Our onsite teams maintained communication with all of our residents to understand their issues and concerns. We wanted our residents to know that we understood the importance of their home to them. These additional actions added to an already full roster of ongoing daily responsibilities for Gables’ associates. I want to express a deep, heartfelt thank you to all of Gables’ associates for their hard work, grace, resilience and perseverance during ever-changing work policies and conditions. While faced with daily challenges and changes at home, in our communities and at work, our associates worked together and found ways to keep our communities open and running; took care of critical service needs; and even developed creative ways to keep our residents engaged with virtual activities and occasional surprise deliveries. They perfected skills, like providing online and self-guided community tours, and were able to implement ever-changing policies and procedures related to personal interactions and enhanced cleaning procedures — all designed to keep our associates and residents as safe as possible. Our corporate associates quickly adapted to a new work


environment from home or, later in the year, to being back in the office on some days, with new work policies and less direct personal contact. We have an outstanding team of associates, and we want you and them to know how vital they are to our mission. Throughout this report, we are featuring the thoughts and experiences of our Gables associates. There are “Scenes and Sentiments” with comments about their thoughts and reactions to the year. Another highlight is personal stories about how associates gave back to their communities during a company-sponsored individual day of service. We have also included many photographs of our associates doing what they do best: “Taking Care of the Way You Live.” I am pleased to report that Gables was able to continue its focus on environmental, social and governance (ESG) activities in 2020. We earned Energy Star certifications on 23% of our stabilized communities and were awarded Fitwel certifications on five communities. We completed LED lighting retrofits in 2020 that replaced more than 1,500 fixtures in parking garages and outdoor areas and identified additional LED retrofit projects

at eight communities that will be installed in 2021. We also improved the quality and timeliness of information provided to our communities that helps them identify ways to operate more sustainably, including identifying water leaks and excessive energy usage. Most importantly, our Sustainability Council established working groups to research and identify new corporate sustainability goals, along with action plans for implementation, that will take us to 2030. You can read about these new goals in this report. As our world continues to make strides back to “normalcy,” Gables continues to move forward with a focus on excellence in all of our actions, including a continuing commitment to being a good corporate citizen in all that we do. I am so proud of all of the efforts of the Gables team during 2020, and I appreciate all that they do for our company and our residents.

Susan M. Ansel President & CEO

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A VIEW OF GABLES

the design of our home

THE PAGES AHEAD: Who We Are • What Drives Us • Profile in Diversity • The ESG of Gables • Roles and Responsibilities

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GABLES COLUMBUS CENTER | CORAL GABLES, FL 9


WHO WE ARE

Gables is more than a place to live. Gables is a lifestyle experience. Established in 1982, Gables Residential is a privately held owner and developer of multifamily and mixeduse communities. We own, manage and maintain third-party operations for more than 28,000 homes and 290,000 square feet of retail space in growing markets across the United States. Over the years, we’ve made sustainability, wellness integrity and good citizenship the essence of Gables living. We design our Gables communities to: • Exceed the standards of what is expected for a beautiful, comfortable home

• Include residents’ pets in our communities by providing custom services and amenities

• Extend extraordinary personalized service for every resident

• Facilitate ready access to nature through parks, greenspace and walking trails

• Provide amenities that encourage an active, socially connected lifestyle

• Bring together residents to engage through Gables social platforms and regularly scheduled events

• Promote convenience and walkability to work, dining, shopping and transportation

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a view of gables

GABLES POINTE 14 | ARLINGTON, VA


stabilized portfolio South Florida - 16%

Dallas - 16%

Austin - 14%

Atlanta - 13%

Washington, DC - 13%

Houston - 9%

Boston - 9%

Denver - 6%

Southern California - 4%

lease-up portfolio

QUALITY* Class A - 64% Class B - 36%

Denver - 25%

Boston - 24%

Atlanta - 18%

Houston - 10%

LOCATION Urban Core - 30% Urban Fringe - 40% Suburbs - 30%

Washington, DC - 21%

Southern California - 2%

TYPE** High-Rise - 29% Mid-Rise - 48% Garden - 23%

Chart percentages represent gross real estate value with unconsolidated joint ventures weighted at share. *Class A is defined as assets with T12 net effective rents greater than T12 submarket average rents per Axiometrics on a $/sf basis. Includes only stabilized assets. **Type breakdown reflects ENERGY STAR® 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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GABLES VININGS VILLAGE | ATLANTA, GA


WHAT DRIVES US

Our mission and values prepare us to create the best home experience. We never lose sight of the fact that thousands of people choose a Gables community, a special place we have created for them, to call home. The responsibility to make that home the best experience it can be requires us to always be prepared. Our mission and values are core to guiding us to provide an extraordinary living experience. The mission is simple and clear: “Taking Care of the Way You Live™.” It speaks first to our residents, but it has equal relevance to our hard-working associates and our investors. When we take care of our residents, we take care of our company.

a view of gables

To fulfill this mission, we stay true to core values: • Extraordinary quality and service for our residents • Unparalleled employment experiences for our associates • Utmost integrity and value for our investors and customers • Enduring contributions to our local community These values are embedded in our culture. They are also absolute, in that they never waver. Most of all, they remind us daily as to what we mean by “Taking Care of the Way You Live™.”

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GA B L E S ’ P R O F I L E I N D I V E R S I T Y, 2 0 2 0

all associates

RACE AND ETHNICITY

44.2%

White

19.7%

29.4%

Hispanic

Black

GENERATION

43%

Generation X

Male

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2.6% - 2 or More Races/Ethnicities 2.5% - Asian 0.6% - Other/Unspecified 0.5% - American Indian or Alaskan Native 0.5% - Hawaiian or Other Pacific Islander

66%

Female

39%

Millennials

GENDER

55%

gables’ executive group

45%

Female

a view of gables

15%

Baby Boomers 3% - Gen Z

33%

Male


scenes and sentiments “I felt every emotion known to humankind, and I let them flow freely through me. It made me empathize more with people all over the world!” - Gables Associate

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THE ESG OF GABLES

Environmental, social and governance practices define our sustainability approach. Gables’ sustainability strategy is reflected in the daily practices of the investment, operations and corporate teams. We set policies and standard operating procedures (SOPs) to establish accountability, standards and consistency across the Gables portfolio. Here are some examples of Gables’ new and ongoing priorities at the intersection of environmental, social and governance practices --->

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a view of gables

Environmental • Commit to newly established sustainability goals for 2030 in recycling, renewable energy, greenhouse gas reduction, water usage and energy usage • Plan and implement energy, GHG emissions, water and waste management programs including benchmarking (measurement), project identification and implementation and performance standards • Assess opportunities for renewable energy generation • Pursue green building certifications on all new developments


Social • Engage and educate associates to help implement initiatives for company sustainability goals and objectives • Provide a safe work environment and promote associate health and wellness through innovative programs and services • Provide sustainable and healthy communities for our residents through development and operating practices, programs and policies and health and wellness certifications • Engage with suppliers who work to minimize their environmental impact through their own sustainability commitments and initiatives

Governance • Maintain focus of senior leadership and board on ESG issues • Protect asset value and prevent disruption to business operations by assessing climate-transition, social and physical risks • Increase transparency by communicating and reporting sustainability efforts and progress to stakeholders in our annual corporate sustainability report and ongoing participation in Global Real Estate Sustainability Benchmark (GRESB) • Work with an independent source to evaluate Gables’ metrics relating to environmental performance

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ROLES + RESPONSIBILITIES

Sustainability is every associate’s responsibility at Gables. The focus on sustainability is engrained in our culture and business practice. It’s also the product of carefully coordinated responsibilities. Sustainability Advisory Council Comprised of the Gables CEO and senior leaders across the company, the Council shapes the vision and sets the strategy for sustainability initiatives. Members meet quarterly and assess the programs’ progress. Senior leaders represent development and construction, operations, facilities management, marketing, asset management and IT. Gables Board of Directors After studying proposals from the Advisory Council, the Board approves a budget and authorizes funding for sustainability activities.

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a view of gables

Director of Sustainability This individual oversees programs, projects and performance metrics, providing progress reports to the executive team, while also leading the Sustainability Advisory Council. Gables Associates Each individual is expected to contribute to environmental stewardship. All associates set and discuss their contributions to sustainability goals as part of their annual talent and performance development program.


GABLES OLD TOWN NORTH | ALEXANDRIA,19 VA


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P E R FO R M I N G I N A PA N D E M I C

making home the best it can be THE PAGES AHEAD: Getting Organized • Preparing Our Team • Taking Care of our Communities • Helping Prospects Envision Their Future • Sustaining Progress in Development • Keeping Corporate Offices Running

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THE 2020 YEAR IN CONTEXT

In unprecedented times, Gables worked to sustain its citizenship efforts. The true test of a company is how it performs in difficult circumstances. 2020 was a test of how Gables performed its corporate citizenship in extraordinary circumstances during the pandemic.

The big-picture view of the year is a company that pulled together and did everything possible to serve those who had never before spent so much time at home. Birthdays on the Balcony

Momentum created at Gables over the years for social responsibility and environmental sustainability must be carried forward. At the same time, new challenges posed with the pandemic had to be addressed and solved, quickly. For Gables, performing in a pandemic meant rethinking nearly everything we do, not only from a business perspective, but also a people perspective. The essence of Gables’ culture is “taking care” of people – the way our residents live, and the needs of our associates. This core value drove changes in policies and actions we took in the 2020 pandemic year.

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performing in a pandemic

getting organized As soon as the federal government issued an emergency declaration for the pandemic, Gables implemented a stay-at-home order. We immediately formed a COVID-19 task force comprised of department leaders throughout the company. Keeping all associates connected was critical. We used Zoom as our main telecomm platform, which also allowed for video calls. Our digital enterprise platform Workday allowed us to centralize and provide easy access for associates to communicate and stay current on updated policies and procedures.


CLARISSA HALLIWILL GABLES REPUBLIC SQUARE | AUSTIN, TX

Our first priority was ensuring the safety of residents and associates. In the very first days of lockdown, we worked to procure PPE, touchless digital thermometers and other necessary supplies and equipment. We also developed protocols to protect people in common areas – from conducting temperature screenings to cleaning and sanitizing surfaces three times a day.

scenes and sentiments “The year left me proud, noticing that teams and family were supporting each other and stepping up when necessary.” - Gables Associate

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preparing our team Keeping Gables associates prepared for new situations and changing procedures was paramount in 2020. Not only did they need to be knowledgeable – they also needed to feel confident and empowered in their everyday work. In March 2020, we completed the move to live virtual training, and within a few weeks, every Gables associate had participated in at least one session. Our training team developed over 30 courses to cover changes in procedures and operations. Not all training was about procedures. As you’ll see throughout this report in our “Scenes & Sentiments” boxes, Gables associates faced their own hardships during the year, just as people everywhere did. To help them confront and manage the emotional side of living and working in a pandemic, we held virtual sessions with speakers around such topics as “Making Decisions under Uncertainty,” “How to Deal with Stress in 60 Seconds or Less” and “Building Resilience in a Crisis.”

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performing in a pandemic

Beyond sharing helpful information, Gables also: • Provided a paid membership to Care.com to help associates acquire support services in child care, housekeeping, school tutoring and other areas • Expanded sick leave for when associates or their families became ill • Broadened usage of the Ovations rewards and recognition program to express appreciation for associates who went above and beyond


9,144 TOTAL TRAINING HOURS DELIVERED 10.5 HOURS PER ASSOCIATE ON AVERAGE

2,261 HOURS OF TRAINING CONDUCTED BY GABLES EXCLUSIVELY FOR COVID PROTOCOL, BUSINESS IMPACT AND MENTAL HEALTH / WELL-BEING

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taking care of our communities Not surprisingly, residents were at home much more in 2020 than in years past. Our mission was to make this at-home experience the best it could be. In an effort to help any resident who might have faced financial challenges as a result of COVID, Gables community managers reached out to residents to offer payment plans and provide connections to local community support systems. Gables was proactive in addressing the needs of residents in a time of uncertainty and concern. We placed their immediate needs at the top of our lists.

Gables associates were also wonderfully resourceful in their efforts to make life a little better for residents spending more time at home. Here are just a few examples: • Popping in for Netflix Nights: In 2020, residents watched movies and TV shows like never before. To make these evenings a little more enjoyable, our communities provided individual bags of popcorn to residents. • Birthdays on the Balcony: No birthday should go uncelebrated. So, each week, Gables managers emailed residents with a date and time to go to their balconies and honor the birthday jubilarians for that week. Residents sang and danced to celebrate the special days. Four-legged friends joined in, too! • Free to Get Fit: Gables residents love having access to our 24/7 Fitness Centers. In 2020, we partnered with fitness programs and provided residents with links and access codes to online workouts at no cost. They could get a free guided workout whenever they wanted!

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performing in a pandemic


• Checking In: Onsite teams made “warm calls” to residents just to see how they were doing. • Game Night Get-Togethers: Onsite teams held virtual trivia and bingo nights each week. Residents could socialize onscreen – and competition was often fierce. We awarded prizes to the highest scores and most creative team names.

GABLES REPUBLIC SQUARE RESIDENTS | AUSTIN, TX GABLES POINTE 14 RESIDENTS | ARLINGTON, VA

• “Treat Yourself” Drop-offs: To remind residents that someone was thinking about them, communities dropped off surprise treats to residents each week. The message was to treat yourself, with such items as sweets, bath bombs and face masks. • Lifted Up When Looking Down: Our teams continued to find ways to make residents smile. One of them was by writing encouraging messages in colored chalk on the sidewalks. These uplifting messages reminded residents their Gables team was there for them.

THE ASHLEY GABLES BUCKHEAD RESIDENTS ATLANTA, GA

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scenes and sentiments Many Gables residents faced financial uncertainty because of the pandemic. We had one-on-one conversations with these residents to offer our help navigating this uncertainty. By offering payment plans, waiving late fees and keeping rental rates flat for an extended period, we were able to keep residents in their homes in 2020. For residents who needed to be placed on payment plans, we invited them to submit a plan that they felt met their needs. Our technology support team and internal auditors created a new and innovative centralized process to review each proposal and work through the complexities of administering each resident’s plan. The compassion shown and personal time committed by Gables associates – often on nights and weekends – to help these residents speaks to the core of our mission of “Taking Care of the Way You Live!” -Will Gosnell, Vice President - Internal Audit

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helping prospects envision their future If there is a single word to describe how Gables approached building relationships with future residents in 2020, it’s agility. Many people still wanted to know what it would be like to make their home at Gables. Yet, traditional in-person connections were limited, and at times, non-existent. We had to move quickly to find new ways to communicate the Gables lifestyle – visually and verbally – if prospective residents were to picture their future in our communities. Here are a few examples of how we did that: • Virtual tours. Building on earlier efforts, we completed an inventory of multiple types of 3D virtual tours. We also trained associates on how to engage with prospective residents when conducting a virtual or video tour.

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performing in a pandemic

• Adjustments to leasing-support tools. Virtual bots and other tools were modified to further support our virtual touring options and to quickly change messaging to reflect the status of our offices. • Updates to Gables.com. The website was ever-changing as our teams worked to continuously enhance the online experience. Community web pages were continuously updated to accommodate changing details on visitation options. • Making full use of Knock. We used our customer relationship management (CRM) platform to establish multiple touch points with each prospect, tracking their response and our performance. • Flexibility for associates. We revamped the self-scheduling tool so onsite teams could provide a prospect with a virtual tour at any time. We enhanced the onsite teams capabilities relative to social media postings to speed up communications.


Take a Virtual Tour Enjoy a virtual tour of Gables Columbus Center from the comfort of your home and on a device of your choosing! Please contact our team with any questions you may have.

• New imagery. In 2020, we began photographing over 70 Gables communities to showcase them on Gables.com for 3D applications, social media platforms and Internet Listing Services.

While technology was a powerful tool, the real difference was our associates: Under difficult circumstances, they succeeded in welcoming many new residents into our communities.

scenes and sentiments “2020 was truly a year of change. It was a year that called for flexibility as things were often unknown.” - Gables Associate AUTUMN VILLARREAL GABLES REPUBLIC SQUARE | AUSTIN, TX

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heart and home

CRIMSON | HOUSTON, TX


sustaining progress in development Construction and trade professionals were classified as essential workers in 2020, which kept the door open for developing and renovating Gables communities. To safeguard teams at work sites and streamline operations, Gables: • Monitored adherence to safety protocols for all construction activity, whether managed in-house or through third-party general contractors • Used thorough questionnaires to screen workers and conducted temperature checks daily • Performed onsite inspections via Facetime or Skype technology • Used videoconferencing and photo documentation to share vital information with consultants who would otherwise conduct in-person site visits • Sourced alternatives and substitutes for appliances, cabinets and other home necessities and materials when the supply chain was interrupted

performing in a pandemic

Despite the pandemic, we managed to open four new communities in 2020: Gables Vista in Denver; Gables Seaport in Boston; Gables Vinings Village in Atlanta and Crimson in Houston. MATTHEW LOVELACE | GABLES POINTE 14 | ARLINGTON, VA

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scenes and sentiments A few of the terms Gables associates most often used to describe how they felt in 2020:

Fear Stressful

Grateful 34

Excited

Anxiety

Reflective

Sadness Uncertainty

Appreciative

Hopeful DOROTHY TRAMUN GABLES CENTERPOINTE | FAIRFAX, VA


keeping corporate offices running When corporate offices were closed in the early days of the pandemic, Gables took the opportunity to revamp office environments across the country. This involved: • Reworking policies and procedures to adhere to CDC guidelines • Revisiting the use of office space at each regional office • Restricting use of common areas and amenity spaces in open offices • Placing PPE in key locations throughout each office, as well as hand sanitizer, disposable products and safety protocol signage • Limiting entry and exit to a single point of access and checking the temperature of all who arrived at the office

performing in a pandemic

Only after implementing CDC protocols and taking other safety measures did Gables open its corporate offices across the country – an all-voluntary basis. Associates balanced at-home and in-office schedules, and protocols were managed and monitored daily for those who chose to return to the office on a limited schedule.

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GABLES

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heart and home

EMBRACES SOCIAL RESP ONSIBILITY

THE PAGES AHEAD: How We Engaged Associates • How We Engaged Residents • Healthy Communities • Promoting Social Justice

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HOW WE ENGAGED ASSOCIATES

Investing in the well-being of our associates continues to pay off. They are the front lines of every community, the first impression for prospects and the ever-present resource for residents. They are our Gables associates, and taking care of them is a high priority for our company. Taking care of our associates includes promoting good health and fitness, as with our Fit4Funds program, and providing incentives and recognition for high performance. Such investment pays off: Research shows Gables associates are motivated to excel, and their likelihood of recommending Gables as a place to work is 8.1 out of 10.

DZENITA LIHOVAC | GABLES SUGARLOAF | DULUTH, GA

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social responsibility


ROBERTO HERRERA-DELDIC AND JESUS (CHUY) ARGUETA | GABLES POST OAK | HOUSTON, TX

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THE ASHLEY GABLES BUCKHEAD | ATLANTA, GA 40


fit4funds: passport to a healthier, happier lifestyle Maintaining a healthy lifestyle was especially important during the dynamic days of 2020. Fortunately, Gables associates had the Fit4Funds wellness program to support and encourage active living. The program provides each associate with a Max Buzz wearable device that tracks daily physical activity through the Virgin Pulse app. Upon meeting their activity goals, Gables associates earn points via our rewards program, Ovations, where points can be redeemed towards gift cards and other prizes. Results from 2020 were impressive: Gables Fit4Funds awarded 301,625 Ovations points to 460 associates for staying in motion, practicing mindfulness and living a healthier lifestyle. Fit4Funds also provided other exercise and wellness options to Gables associates:

social responsibility

• Team Challenges, Gables Hikes the Appalachian Trail and Gables Great Cross Country Tour, in which associates recruited teams in healthy competition with each other. Associates also had the option to launch their own team challenges and invite outside participants. • Access to a fitness center in any Gables community across the country. Several of the fitness centers, as well as Gables regional offices, now offer In Body, a medical-grade body composition analyzer. • Fit4Funds Wellness Fairs across the country. Among other benefits, associates participating in the fairs received biometric screenings and flu shots. • Fit4Funds Champions Network, comprised of associates across the company who are wellness leaders. They work to ensure the wellness program remains accessible and effective – and encourage all associates to adopt a healthier, happier lifestyle.

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VICTORIA DRIVER | GABLES METROPOLITAN UPTOWN | HOUSTON, TX 42


a successful transition for success coaching

TJ BUGGS AND ADRIAN COLEMAN 10 LIGHT | BALTIMORE, MD

While our training programs teach Gables associates about how to execute day-to-day responsibilities, our success coaching program strengthens their ability to perform at a high level. For years, the program has been a cornerstone of Gables’ on-boarding of new associates. In 2020, we had to convert an in-person offering to a virtual platform. Early in the spring, all Success Coaches were oriented on the software and technology used for virtual coaching. Once trained, the coaches engaged with 74 newly hired associates, forming coaching relationships and collaborations that span our entire portfolio. Skills learned through the coaching relationships serve Gables associates throughout their tenure with us.

social responsibility

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rewards and recognition for a job well done The great works of Gables associates are celebrated throughout the year in many different ways. One of these is the Ovations recognition program. Using the mobile WorkProud app, associates may instantly applaud fellow team members for good work, as well as acknowledge milestones and recognize achievements. In 2020, the WorkProud app and site had over 30,000 visits. And since the program was introduced in 2017, Gables associates have earned over 8.7 million Ovations points, which they converted into Visa gift cards, UberEats vouchers and a trove of other rewards. Gables also commends associates in regular communications. Associates are introduced each month in “Gables Greetings,” and each profile features a photo along with answers to fun questions.

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social responsibility

“Friday Feature” is another example. It’s a monthly spotlight of an associate (or group of associates) who went above and beyond in sustainability, customer service or other day-to-day activities. The feature demonstrates how associates live out Gables’ values. Finally, our communique “Gables GR8 News” includes awards and recognition in its regular roundup of news and announcements. Stories are also published on our intranet (Gablesnet) so associates can access past and present updates.

scenes and sentiments “2020 was a humbling year that reminded me to appreciate everything and not to take anything for granted.” - Gables Associate


JARED SIMPSON | GABLES UPTOWN TOWER | DALLAS, TX

JUAN CARLOS BARBANO AND JOHN HERNANDEZ | GABLES RESIDENCES | DENVER, CO

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a clearer view of what associates think Understanding how Gables’ associates view their company is essential. For eight years running, we’ve surveyed them – and in 2020, we moved to get a more precise view of what they think.

The quarterly Qualtrics survey gauges associates’ views on a range of issues, including the company’s future, frequency and quality of communication and the support of associates.

To do that, we transitioned to Qualtrics Employee Experience platform to administer a new quarterly survey. The data collected reveals key drivers of engagement and satisfaction, gauges the impact of changes made to policies and procedures and illuminates what’s working and what needs improvement.

scenes and sentiments

Leadership reviews the survey results and determines action steps that will have the greatest impact on strengthening engagement. Between the quarterly surveys, Qualtrics offers associates a way to provide anonymous feedback to any issue.

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social responsibility

“I am so grateful to work in an industry that can weather the storm of 2020. I feel 2021 will be filled with its own challenges, but I am hopeful that we will see brighter days ahead.” - Gables Associate


how associates rate gables For 2020, Gables associates collectively rated: 10 Global Benchmark

0

THEIR LIKELIHOOD OF RECOMMENDING GABLES AS 8.1 OUT OF 10 – HIGHER THAN THE QUALTRICS GLOBAL BENCHMARK OF 7.3. Gables 10

THEIR MOTIVATION TO WORK HARDER AND CARE MORE AS 8.3 – AGAIN, HIGHER THAN THE QUALTRICS GLOBAL BENCHMARK OF 7.2.

Global Benchmark

0

Gables

10

Global Benchmark Not Available 0

GABLES’ ENVIRONMENTAL CONSCIOUSNESS AS 8.1 OUT OF 10 (BASED ON THE COMPANY’S OPERATIONS AND PRACTICES). Gables

47TX SAMANTHA ELLIS | GABLES PARK PLAZA | AUSTIN,


HOW WE ENGAGED RESIDENTS

We give our very best to our residents. Staying connected with people who choose Gables as their home is an endeavor that is both responsive and proactive. To stay responsive, we give residents choices on how to communicate with our leasing teams – online, through Gables Gateway, or via smart device, using the Gables Mobile App. We also answer service calls within a 24-hour period to uphold our 24-hour Maintenance Response Guarantee. On the proactive side – we never stop looking for ways to reach out to our residents, and to provide activities and programs that bring people together. Here are a few examples from 2020:

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social responsibility


• Uniquely Gables: We warmly welcome residents and introduce them to all the benefits and conveniences of our exclusive offerings, such as Gables Mobile App and CAPTIVATE!, our points-based loyalty program. • See You on Social: Gables is active on social media, and we invite residents to engage with us there. We also encourage them to share their thoughts about the community and their living experience. • Communication In: To make sure we constantly improve, we regularly encourage residents to write reviews or give us feedback on their living experience in the community. • Communication Out: In our monthly newsletter, posted flyers and other communications, onsite teams consistently announce news and special events like pet “yappy hours” and breakfast-on-thego. We also kept touchpoints frequent and messages consistent through our email management program Site Manager (within Yardi’s Rent Café).

• Green is the Way to Go: Gables is dedicated and proud of our sustainability efforts. We promote our #EVERYDAYGREEN initiative by encouraging associates to wear green on the first Friday of the month and share our green efforts with both residents and prospective residents. • Friends Make the Best Neighbors: We make a point to ask residents to invite their friends to make their home in a Gables community. • Here’s to You: All residents deserve to be celebrated on their birthday with a personalized birthday greeting – which we do! • Just Because: Sometimes we just want to say hello and remind them that we are here to provide extraordinary service!

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$25,000 RAISED BY GABLES TO TRAIN AND DONATE A MEDICAL SERVICE DOG TO SOMEONE IN NEED

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pets are a beloved part of our communities, too Gables shows love for pets in ways big and small through our Paws to Care™ program. Here are just a few ways we celebrate this special group of companions to our residents: • Providing dog parks and dog wash stations • Stocking treats for pets and toys in our leasing offices • Offering exclusive access to policy discounts for pets (through Nationwide Insurance) • Staging special activities, such as a “Best Instagram Photo” contest

since 2016; in 2020, the generosity of residents and associates helped raise $25,000 to prepare one medical service dog for someone in need. The dog is a German shepherd puppy, and we held a naming contest for our associates. The name Nova, submitted by Tarketuala Hyman, assistant community manager at Gables Old Town North, was selected. Our communities receive “pupdates” with photos and information on Nova’s progress in the program.

Our love for pets reaches beyond our communities to support animal-centric charities. Guardian Angels Medical Service Dogs is one such charity. Guardian Angels pairs trained medical service dogs with military veterans and disabled individuals across the country. Gables has supported Guardian Angels

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how residents view their experience with us Striving to give our very best to our residents means performing at our peak. In order to be effective, it’s essential to know what we do best – and where we can improve. Gables residents gave us high marks in 2020: Through the Qualtrics Customer Experience platform, they rated their overall experience 4.5 out of 5. A key evaluation metric is the Net Promoter Score (NPS). It gauges how likely our residents will recommend our community to others. Gables’ 56.2 NPS score (on a scale from -100 to +100) reveals that a strong majority of our customers are considered promoters, or “loyal enthusiasts who will keep buying and fuel growth by referring others.” Qualtrics lets us know who is giving feedback, so we can address each resident’s needs and effectively manage the company’s social reputation.

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CRIMSON | HOUSTON, TX


C U STO M E R S ’ R AT I N G S O F T H E I R OV E R A L L E X P E R I E N C E W I T H GA B L E S

4.5 Average

4.2 Global Benchmark

OVERALL EXPERIENCE RATING

4.7 Average

OVERALL SALES EXPERIENCE

4.1 Global Benchmark

56.2

OVERALL MOVE-IN EXPERIENCE

NPS

OVERALL NET PROMOTER SCORE

4.4 Average

(Global Benchmark Not Available)

4.5 4.4 Global Benchmark

3.9

Average

Average

4.0 Global Benchmark

4.5 Global Benchmark

OVERALL MAINTENANCE EXPERIENCE

OVERALL PRE-RENEWAL EXPERIENCE

Sources: Qualtrics, 2020, J Turner Research, 2020 Global Benchmarks

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a few of the gables associates praised by residents in 2020 BRETT DEAVERS AND RICARDO AREVALO | URBAN GREEN “Brett from the leasing office was exceptionally professional and courteous. He followed through from start to end of the maintenance project. Thank you for checking in and following up until the job was complete. Your quick response to my call is much appreciated. Ricardo and the other person who worked on my bathroom did a great job – my bathroom looks like new again. Thank you, Ricardo for making sure I felt comfortable and safe while you both worked on the project amidst COVID. Appreciate the quick and professional work done.” June 2020 • Maintenance Experience Survey

JANEY MAYVILLE AND LINDSEY NEUMEIST MARIA GONZALEZ | GABLES UPPER ROCK “I applied on Monday, moved in on Saturday. Maria made my life incredibly easy and lifted a lot of stress off my shoulders as she helped me get everything in order. Can’t say enough good words to express how great the service was to accommodate my move-in!” October 2020 • Move-In Experience

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“Janey and Lindsey were exceptional! With the COVID-19 down, they made everything so easy and convenient for u needed to make for our move-in. We were able to have a in a timely manner, and they were never too busy to acco are very happy with our decision to move to Shadetree! Y glory.” June 2020 • Move-In Experience


ALEXIS PRICE AND LYNSEE MANN | GABLES RESIDENCES “Alexis and Lynsee are absolutely amazing. They don’t try hard to make you feel welcome, they are genuine and natural and love what they do. Thank you to them for being that way. I enjoyed my tour at your community, and I don’t say that about anyplace else.” August 2020 • Sales Experience

TER | SHADETREE

9 virus shutting everything us to make the decisions we all our questions answered ommodate our needs. We Your staff is your crowning

WALLACE WARD | GABLES MONTCLAIR “Wallace was extremely helpful and prompt. He accurately identified the issues and fixed them – while also explaining to me what was wrong, which was very appreciated. He was also very friendly and courteous during the whole experience.” August 2020 • Maintenance Experience

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scenes and sentiments Like so many businesses, the multifamily market was hit hard by COVID-19 cases. At times, this meant onsite associates were sometimes down to single individuals. To respond, Gables associates leaned in. They helped cover each other’s communities and respond to prospect lead inquiries. They sometimes served in alternative capacities – office staff helping with community upkeep, for example, or maintenance teams working in the office. The political climate, social unrest and global pandemic of 2020 are likely some of the most impactful experiences of our lifetimes. I am very proud of the organization I partner with and the accomplishments of my teams during these extreme circumstances. The culture of Gables’ “Taking Care of the Way You Live” rang true through the chaos. It gave me comfort to continue to be my personal best and encourage the same from all our essential, front-line associates. — Anna Frenzel, Area Vice President

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LAZARO PEDROSO AND AYRIAN Y. OLIVER | GABLES MONTECITO | PALM BEACH GARDENS, FL

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HEALTHY COMMUNITIES

Promoting good health is the “heart” of social responsibility. The air we breathe, the food we eat, the way we move – all are tied to good health, and all can be influenced by the community we create. Gables continues to focus on creating this sense of community — to create healthier homes in which to live for our residents and healthier places to work for our associates.

the proof is in fitwel While it’s important to publicly commit to promoting good health, it’s more important to demonstrate that commitment. We are proud to have embraced Fitwel, a third-party company that recognizes and promotes community wellness. We began our journey with Fitwel in 2018 by benchmarking how our buildings, locations and spaces contributed to good health. By modifying facilities, implementing new practices and taking relevant actions,

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GABLES POINTE 14 | ARLINGTON, VA

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Gables secured its first Fitwel-certified community (The Ashley Gables Buckhead) in 2019. 2020 continued with a strong commitment to Fitwel demonstrated by our growth in activity: • Five additional communities earned Fitwel certification • Gables Seaport and Gables Vinings Village are on track for Fitwel certification in 2021 • Gables was designated a Fitwel Champion as a result of our commitment to scale the Fitwel model

GABLES COMMUNITIES WITH FITWEL CERTIFICATIONS The Ashley Gables Buckhead | Atlanta, GA Gables Brookhaven | Brookhaven, GA

Gables Old Town North | Alexandria, VA Gables Pointe 14 | Arlington, VA

Gables Vista | Denver, CO Crimson | Houston, TX

GABLES VISTA | DENVER, CO

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heart and home

GABLES BROOKHAVEN | BROOKHAVEN, GA


Our Fitwel-certified communities can be identified by certain hallmarks: • Communities in locations with greater walkability foster health through regular exercise, social interaction and access to local neighborhood amenities • Safe and accessible street infrastructure supports travel on foot or by bicycle, thus contributing to physical and mental health • Walking trails nearby provide residents with increased access to the outdoors, which benefits physical and mental well-being • Access to stairs provides an opportunity for residents to “get more steps” and increase their physical activity • Minimizing exterior-sourced noise such as road traffic noise – and minimizing interior-sourced noise such as sounds from neighboring homes or common hallways – can improve sleep and decrease stress • Providing a dedicated fitness center promotes improved physical health

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• Views of trees, greenery, water and other natural elements from common areas help residents connect with nature, lowering stress and increasing well-being • Demonstration kitchens allow residents to participate in cooking classes and learn about healthy eating. The added nutrition education and social activities enhance mental and social health

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92% OF ALL GABLES COMMUNITIES HAVE A SWIMMING POOL

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GABLES OLD TOWN NORTH | ALEXANDRIA, VA


100% OF GABLES RESIDENTS HAVE ACCESS TO A FITNESS CENTER

GABLES VININGS VILLAGE | ATLANTA, GA

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high rankings for alternative forms of transportation To encourage physical activity (while lowering greenhouse gas emissions), Gables selects locations for new communities that are walkable, bikeable and offer ready access to public transit. These measures offer insight into how successful we were in promoting mobility in 2020: 1. Walk Score analyzes walking routes from a community to nearby businesses, services and amenities. Addresses within a five-minute walk to these destinations receive the maximum score. 2. Bike Score measures how suitable an address is for riding a bike. Scores are calculated by assessing bike lanes, hills, destinations, road connectivity and bike commuting share mode. 3. Transit Score indicates how well public transit serves a location, based on the type of nearby transit lines and the distance to them.

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walk score CARDEPENDENT

6 OUT OF 10 GABLES COMMUNITIES RANK “VERY WALKABLE” OR HIGHER

12.5%

BIKER’S PARADISE

22.32% 36.61%

VERY WALKABLE

7 OUT OF 10 COMMUNITIES ARE DEEMED “BIKEABLE” OR BETTER THAN BIKEABLE

30.36% 28.57%

SOMEWHAT BIKEABLE

12.5%

SOMEWHAT WALKABLE

bike score BIKEABLE

28.57%

WALKER’S PARADISE

VERY BIKEABLE

28.57%

NEARLY HALF OF GABLES COMMUNITIES HAVE “GOOD ACCESS” TO PUBLIC TRANSIT

transit score

SCORE NOT AVAILABLE NO NEARBY TRANSIT 1.79% MINIMAL TRANSIT

1.79% RIDER’S PARADISE

18.75% 14.29%

7.14%

SOME TRANSIT

25%

31.25%

EXCELLENT TRANSIT GOOD TRANSIT

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clearing the air on smoking Gables’ newest developments are 100% smoke-free environments, and two years ago, we began applying that good health practice across the country. A pilot program called “Smoke Free for You and Me: A Gables Clean Air Initiative” began helping a select group of communities that allowed smoking in homes and common areas to start transitioning to smoke-free environments. Our 2019 pilot was a success. So in 2020, we took the first steps toward applying the program to all of our other communities that allowed smoking on premises. By the end of the year, approximately two out of three Gables communities were either smoke-free or on their way to becoming smoke-free. We will continue to transition our communities in 2021. Our goal is to have begun the transition at all Gables communities by the end of 2021.

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green building brings cleaner air The quality of indoor air is an unseen factor of good health, but following green building standards can protect against immediate and long-term health risks from indoor air pollutants. To meet these standards – during construction and everyday operations – Gables adheres to four important principles for air quality: 1. Eliminate sources of pollutants. Following stringent practices in new development and renovation are key. For example, duct work and vents must be sealed during construction. Essential paints and flooring must have no or low volatile organic compounds, and Gypsum board in areas around plumbing fixtures should be water-resistant. For everyday operations, Gables also follows a green cleaning policy and regimen.


2020 snapshot

2. Properly ventilate buildings. Good ventilation can be achieved by using operable windows and installing fans in kitchens and bathrooms. In some communities, it involves using mechanical systems that draw fresh air inside.

SMOKE-FREE STATUS OF GABLES COMMUNITIES 100% SMOKE-FREE SMOKING PERMITTED 51% 34%

15%

TRANSITIONING TO SMOKE-FREE

3. Keep up with filters. To work effectively, mechanical systems require high-quality air filters that are changed regularly. 4. Go smoke-free. As previously noted, existing Gables communities are now transitioning to smokefree environments. (New developments are already 100% smoke-free.)

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from market to home, fresh food delivers nutrition There seemed to be no better time to pilot a program in food delivery than during a global pandemic, which Gables did in 2020 with several of our communities in Atlanta. By partnering with a fresh food delivery service, we gave residents the opportunity to have locally sourced and produced fruits, vegetables, baked goods and homemade products brought to their home. Making fresh produce more accessible – especially organic produce, which creates a positive environmental impact – improves nutrition and eating habits. The partnership brought another benefit: It allowed Gables residents to learn more about the origins of their food, while supporting green growers and small businesses in the area.

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PROMOTING SOCIAL JUSTICE

In 2020, it was never more important to stand up — and step up — for others. Economic hardship, social injustice, personal loss … these were more than headlines in the news. They formed the context of everyday life, and they called for people to get involved. From a company perspective, beyond the individual actions that associates took to help residents, Gables responded by revamping our community volunteer effort, “Gables Day,” and by working to grow our Sunshine Fund.

a new kind of gables day Gables Day has been a proud tradition for two decades. The pandemic prevented us from mobilizing a mass outreach effort this year. As a result, we tried a new approach to create positive social impact at a time when gathering or working together as a group was not a possibility.

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First, we redirected the financial resources used to orchestrate Gables Day to instead support a nonprofit organization at the forefront of promoting equity and social justice. Joined by individual donations from associates, Gables contributed well over $30,000 to the organization. The nonprofit was a natural choice as a recipient of support: Its work is entirely consistent with our values to stand against all forms of racism, sexism, discrimination and inequality. Second, we gave all Gables associates a day off to volunteer for a cause they care about. The response was extraordinary, and the volunteer endeavors reflected the different interests and perspectives of our team members.


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The volunteer efforts were compelling, which you will see as you read several personal reflections from associates about how they spent their volunteer day. We’re proud of what they accomplished during their day of service.

GABLES DAY HAS BEEN A PROUD TRADITION FOR TWO DECADES

OUR DAY FEEDING A CITY My volunteer day was helping the Feed the City food distribution. It was an amazing day! We packed boxes of food for over 500 families. I worked alongside my two grandsons. We worked hard for 5 hours, but it was such a rewarding experience. Since that day, we have volunteered three more times on the weekends. We will continue to help, whenever we can.

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-Patti Ney, Regional HR Manager (above)


A DRIVE TO DONATE I chose to do a food drive, motivated by my eldest daughter, Madison. She came to me before Christmas and said she wanted to do something to help the homeless. She reached out to friends and family in our area, and we drove around to pick up donations. Madison has also purposed herself to make 50 kits for the homeless in lieu of birthday gifts, including masks, hand sanitizer, snacks, toiletries, socks and hand warmers. -Kirsten Rolen, Community Manager (below)

FOOD FOR KIDS IN YEMEN We volunteered at Feed My Starving Children, which partners with distribution organizations in over 200 countries where food is delivered directly to families in need. At the warehouse we assembled rice and soy-based meal packs. During that shift, the team packaged over 9,000 meals that will help feed 27 children in Yemen for one year. Thank you, Gables. -Stevi Bennett , Training & Development Manager and Asha Patel, National Pricing Manager (above)

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CARING FOR ATLANTA’S HOMELESS Here are a few other ways Gables associates supported good causes on their day off for volunteering: • Participating in the “Dining Out for Life” fundraiser to benefit Open Hand Atlanta • Working in the thrift shop of an animal shelter • Making, donating crafts to be sold at a fundraising bazaar, benefiting Scottish Rite Hospital • Making care packages to be delivered to a senior living facility

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We partnered to serve and support 150+ Atlantans who were displaced during the holiday season. With over $2,700 in donations, we were able to serve warm meals, along with providing PPE and other safety essentials to homeless populations. It was important that during these harsh economic times, and in the middle of a pandemic, we were able to show Atlanta’s most forgotten population how much we care. -Jaleesa Taylor , Support Center Analyst and Stephanie King, Senior Support Center Analyst


MY DAY AT FREEDOM FEED’EM I volunteered at Freedom Feed’Em on New Year’s Day. Several local businesses donated goods and services, and Zera Coffee House in Denton, Texas housed the place for the event to help feed the homeless and less fortunate. We had free meals, haircuts, blankets, clothes, coffee, hygiene packs – plus, a warm place to be for the day, with worship and live music. -Wendy Cooper, Community Manager (below)

A CHRISTMAS GIFT My son and I chose to help distribute gifts at the Angel Tree Warehouse. This year was exceptionally difficult due to COVID restrictions. While it was a blessing there were so many gifts, there were fewer people to help get the gifts where they needed to go. Angel Tree was desperate for help, so we decided to step in. It was fulfilling to put a gift in each assigned bag and know that a child was going to get gifts this year. It was something we plan to do again and again. Thank you! -Jennifer Hill, Regional Manager (above)

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sunshine fund Some Gables associates experienced their own hardship in 2020. Through the Sunshine Fund, they once again found that their fellow associates were there for them. Created in 2003, the Fund provides financial assistance to associates facing health issues, loss of a family member, natural disaster or other struggles. Donations to the fund are purely voluntary, and most contributions come from the associates themselves.

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scenes and sentiments

“So many emotions; fear, anger, confusion, sadness, and frustration many times but also joy and happiness at many times. Ultimately, gratefulness that my family was spared from what so many others had to suffer whether it be COVID from a health standpoint or COVID’s far-reaching effects from a financial standpoint.” - Gables Associate


shelters to shutters This Virginia-based nonprofit organization transitions individuals out of situational homelessness to economic self-sufficiency through partnerships with the real estate industry to provide employment and housing opportunities.

“Shelters to Shutters catapulted me to a whole other level. Now I have a stable job and my own apartment. I can do school now without stressing about having to park somewhere safe so I can sleep. Now I can go home and have internet service in my house to get my assignments done.” - Moma Sayplay Gables Mill

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EXPLORE GABLES GOVERNANCE

come inside

THE PAGES AHEAD: The Company We Keep • Thinking Globally • How Others See Us • Prevention First • Thought Leadership

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THE COMPANY WE KEEP

Our affiliations with highly reputable organizations strengthen our corporate citizenship. Gables has long-standing ties with reputable organizations that shape good corporate citizenship. These relationships help us uphold high standards while striving for excellence. Following are enterprises and programs that share our values and serve as invaluable partners and resources in our sustainability journey.

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

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Better Buildings Alliance The U.S. Department of Energy (DOE) brings together commercial building leaders with DOE technical experts to identify gaps, develop and share innovative and cost-effective solutions to advance energy efficiency.

Fitwel As a leading certification system, Fitwel is committed to building health for all®. Gables became a Fitwel Champion in 2020. Fitwel Champions are companies that own, occupy, or manage commercial and residential communities and have committed to using Fitwel at a portfolio scale.


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 Clarion Funds, our fund manager, in reporting our annual sustainability metrics to Greenprint, along with 8,900+ commercial real estate assets.

Global Real Estate Sustainability Benchmark (GRESB) GRESB assesses the environmental, social and governance (ESG) performance of real estate assets to provide standardized data to investors. Gables completes the assessment annually.

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82 SEAPORT | BOSTON, MA GABLES


United States Green Building Council (USGBC) The USGBC created LEED (Leadership in Energy and Environmental Design), 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 when designing and building new developments in the southeastern U.S.

gables governance

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

UN Sustainable Development Goals The United Nations Sustainable Development Goals were developed as a blueprint for sustainable development, economic growth, social inclusion, environmental protection and health for all nations and all humankind. A powerful framework that can guide responsible investment and ESG strategy, Gables has adopted eight SDGs where we believe we can have the most impact.

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THINKING GLOBALLY

The actions we took reflect progress toward the UN Sustainable Development Goals. The United Nations Sustainable Development Goals (SDG) are a plan of action for all countries, organizations and businesses to work in global partnership to make positive environmental and social impacts at scale around 17 goals by the year 2030. Gables demonstrates alignment with eight of the 17 goals through the development, management and operations of our communities. Following is an update on actions we took to advance progress toward these important goals.

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GOAL 3: GOOD HEALTH AND WELL-BEING • Provide best-in-class associate health and wellness benefits plans and programs • Manage indoor environmental quality at communities • Promote active lifestyles for residents by incorporating amenities and active design elements in communities • Report “Walk and Bike Scores” on Gables.com and in our annual corporate citizenship report • Participate in the Fitwel program (designated “Fitwel Champion,” with six certified Fitwel communities) GOAL 5: GENDER EQUALITY • Assess job profiles to ensure recruitment of a diverse field of candidates for all openings • Analyze compensation levels (by gender and race) for each position in each region • Undergo training on unconscious bias • Partner with outside consultant to expand awareness of diversity, equity and inclusion GOAL 6: CLEAN WATER AND SANITATION • Set 2030 water goal, with actionable plans to increase water-use efficiency through retrofits • Set guidelines for plumbing fixture flow rates in new developments and renovations • Generate 100% water data coverage across the portfolio for analysis


GOAL 7: AFFORDABLE AND CLEAN ENERGY • Set 2030 energy and GHG emissions goal • Set 2030 renewable energy goal • Set policy to conduct renewable energy feasibility study for all new developments • Continue to study feasibility of solar energy implementation in stabilized communities • Prioritize ENERGY STAR certifications: Gables certified 12 communities with ENERGY STAR in 2020 GOAL 9: INDUSTRY, INNOVATION + INFRASTRUCTURE • Establish goal of 100% of new developments earning green building certifications • Evaluate resilience during the design and construction process • Invest in energy efficiency in stabilized communities, including LED retrofits and other energy reducing measures • Monitor climate risk and resiliency through portfolio-wide assessments to manage risk • Pilot new clean and sustainable technologies and services to support resource-use efficiency • Stay involved in industry organizations and support research to foster innovation GOAL 11: SUSTAINABLE CITIES AND COMMUNITIES • Study rent-to-income ratios to evaluate housing affordability • Invest in safety measures at all communities to ensure access to safe housing • Locate communities convenient to public transit and emphasize walkability, bikeability • Focus development in urban areas, enhancing sustainable urbanization

• Increase electric vehicle charging infrastructure throughout the portfolio • Encourage Gables associates to volunteer annually to support local non-profits and community GOAL 12: RESPONSIBLE CONSUMPTION + PRODUCTION • Set sustainable procurement guidelines for offices and capital projects • Publish an annual corporate citizenship report • Set 2030 waste goal • Add new material collection types (glass) to recycling programs • Plan use of construction materials to use fewer materials and minimize waste • Maintain a construction waste diversion program for new developments • Educate associates on reducing energy usage, water and waste in communities and offices • Promote recycling to residents through social media and other communications • Educate residents on how to live more sustainably through social media, lease language and events GOAL 15: LIFE ON LAND • Protect biodiversity and habitats during construction and major renovation projects • Include pollinator plants in all new landscape installations (for both new, existing communities) • Work with local nonprofits to relocate beehives when found in inappropriate locations

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HOW OTHERS SEE US

Industry recognition affirms that our hard work is good work. We do all that we do with passion, joy and commitment for our residents, associates and shareholders and we’re grateful when others take notice of our efforts, as they did again in 2020.

2020 honors from the industry 2020 NAA Best Place to Work 2020 Best and Brightest Companies to Work for in the Nation 2020 Aetna’s Workplace Wellness Award 2020 Pulse of the City News Award for Excellence in Customer Service 2020 Best Places to Work (Multifamily) presented by Multifamily Leadership, Best Companies Group 2020 Training Magazine Top 125 Top-Ranked Learning and Development Program 2020 GRESB Real Estate Assessment #1 in the GRESB Development Benchmark for Residential in the Americas and for Residential, U.S., non-listed groups

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communities in the spotlight

individuals in the spotlight

2020 Best Property Website National Association of Homebuilders Crimson, Houston TX

Sue Ansel CPE’s 2020 Executive of the Year Awards Multifamily Executive of the Year – Honorable Mention

2020 IHAF Design Awards Gables Seaport- Sales Collateral – Silver

Melanie Trapnell 2020 One to Watch (Finalist) National Association of Homebuilders

2020 MHN Excellence Awards- Best Amenities The Ashley Gables Buckhead – Gold Level 2020 MHN Excellence Awards- Green Initiative The Ashley Gables Buckhead – Honorable Mention 2020 Sapphire Awards - Property of the Year (Built 2016-2019) Apartment Association of Greater Dallas Gables Water Street

Tiffany Roland 2020 Sapphire Awards – Property Manager of the Year (350+ units) Apartment Association of Greater Dallas 2020 Sapphire Award Finalists – Apartment Association of Greater Dallas • Luis Conde, Gables Water Street – Lead Maintenance Tech of the Year • Sandra Green, Midway Urban Village – Maintenance Tech of the Year • Wendy Cooper, Gables Water Street – Property Manager of the Year (350+ units) • Jennifer Morgan, Dallas Corporate Office – Support Professional of the Year

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PREVENTION FIRST

Effective, consistent risk management safeguards our company. Vigilance, planning and action are the watchwords when it comes to successful risk management. Gables employs all three to prevent potential problems from occurring – and to respond effectively when the unexpected happens.

taking action to protect us from threats Over the years, Gables has developed resilience policies and procedures to address physical and social risks – all to protect our communities and ensure the continuity of service and operations. Our Resilience Project Team, a committee of the Sustainability Advisory Council, works to implement these policies and procedures. Comprised of multi-disciplinary subject matter experts – who are well-versed in Gables’ development and operations – the team also identifies opportunities to manage and mitigate risk.

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Gables addresses several areas of resilience, including: • Climate transition risks: We use focused energy management practices in current communities and develop new communities with sustainable features to minimize their environmental impact. • Social risks: Gables works to reduce vulnerability in a wide range of areas, including cybersecurity, physical security, public health and social disruption. • Physical risks: Each location faces its own unique threats from area conditions and weather patterns. As a result, we design our communities to help mitigate events such as hurricanes, floods and extreme temperatures. We have policies and procedures to keep us prepared – including emergency action plans that help us respond effectively in a crisis. In 2020, Gables engaged a consultant to help us examine a wide range of physical and climate-related risks across our portfolio. We are using this information to evaluate current policies and develop actionable projects that will further strengthen our resilience.


behaving ethically is part of our culture High-performing companies have strong ethics at their core. Behaving ethically is also essential to protecting Gables’ reputation. But most of all, ethics are an extension of our core values – striving to do the right thing is part of who we are. Through their initial on-boarding and ongoing training, Gables associates learn about ethical decision-making as they become immersed in corporate culture, compliance, customer service and good citizenship. In 2020, our associates completed 894 hours of training in these areas. When applying this knowledge during the workday, associates are empowered to act whenever they see or experience ethical violations. They may report violations to a compliance officer, who also answers questions and provides guidance. Or if they prefer, they may anonymously file a report with Ethicspoint, an independent third party available 24/7 by phone or online.

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90 RESIDENCES | DENVER, CO GABLES


compliance is another form of protection Gables’ risk management team invests significant time and resources into compliance.

Auditors (CIAs) and Certified Information Systems Auditors (CISAs).

Our team begins with the fundamentals. Professionals review claims and contractual issues and proactively identify and evaluate areas of risk – all to promote sound decision-making. We also manage property and liability insurance, working to secure the broadest coverage of Gables assets for the best possible price.

To help ensure the integrity of third-party partners, Gables works with Vendor Shield to perform thorough due diligence. As part of this process, Vendor Shield explores economic diversity, verifies professional licensing and insurance coverage, searches government watch lists and evaluates potential business risk.

Our Internal Audit Department reviews operations and monitors compliance, both within Gables’ communities and at the corporate level. Audits of communities – owned, joint venture or third-party – typically are conducted every 12 to 18 months. To best guide the company, auditors follow the professional guidance of the Institute of Internal Auditors (IIA). The auditing staff includes both Certified Internal

gables governance

scenes and sentiments “2020 was a test of our true grit not only as associates, but as families and friends during these unprecedented times.” - Gables Associate

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THOUGHT LEADERSHIP

By staying involved, we help move our industry forward. Being involved in the multifamily industry is a responsibility. It’s also a privilege and a joy. That’s why Gables’ leadership and associates make a point to share knowledge and ideas and serve as advocates in efforts to move our industry forward. Our associates stay active in professional associations, and senior leadership and management serve on boards and committees. Here’s an overview of senior leaders’ involvement in the industry in 2020. Sue Ansel, President and CEO • NMHC immediate past chairwoman and Executive Committee member • ULI Multifamily Council member • Harvard Joint Center for Housing Policy member

ROB RECTOR AND JULIETTE APICELLA

John Akin, Chief Investment Officer • National Association of Home Builders Multifamily Leadership Board member • ULI Multifamily Council member • Teton Apartment Summit member Dawn Severt, Chief Financial Officer • NMHC Investment Committee chairwoman and Executive Committee member

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Donna Summers, President of the Management Company • Apartment Life Board of Directors


Gigi Giannoni, Sr. Vice President - Customer Experience • NMHC OPTECH virtual speaker • NMHC Women in Technology and Marketing founding member/speaker • NMHC Marketing Committee member • MFE Woman of Influence Group • MICA Board member • Bisnow Multifamily virtual webinar speaker Phillip Altschuler, Senior Vice President - Human Resources and Training & Development • Info Talent Science - Client Advisory Committee member • NMHC - COVID-19 Advisory Group Committee member • Empower - Client Advisory Committee member James Hamrick, Vice President - Information Technology • NHMC 2020 OPTECH Conference Planning Committee member and speaker • NMHC Systems Technology and Information Management Committee vice chairman • GeorgiaCIO member Matt Bearden, Vice President - Construction • BUILT National board member • NMHC Design and Construction Committee chairman Rob Rector, Sr. Director - Training and Development • Grace Hill Leadership Council member

Will Gosnell, Vice President - Internal Audit • NAA Affordable Housing Committee member • Institute of Internal Auditors (IIA) Atlanta Board of Governors and Chief Audit Executive Roundtable • IIA North American Diversity and Inclusion Task Force board member Mark Johnson, Regional Vice President - Investments • ULI DFW Urban Plan Committee member • Uptown Dallas Inc. board member Jennifer Wiebrand, Area Vice President - Investments • ULI Austin Advisory board member and Women’s Leadership Initiative Steering Committee member • Downtown Austin Alliance chairwoman Anna Frenzel, Area Vice President - Operations • Apartment Association of Metro Denver, COVID-19 Task Force Carolyn Lewis, Director of Talent Acquisition • NAA Careers Committee member • HR Advisory Committee member • Apartmentalize Committee member Juliette Apicella, Director of Sustainability • ENERGY STAR Multifamily Working Group • NMHC OPTECH Conference participant

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GABLES HONORS THE ENVIRONMENT

earth, our home THE PAGES AHEAD: Today and Tomorrow • Learning, Improving • What We’re Doing

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TODAY AND TOMORROW

We continue to make solid progress in sustainability. The time period for Gables initial group of Sustainability Goals concluded at the end of 2020. We made significant progress toward reaching our Common Area Energy and Greenhouse Gas Emissions goals, but fell short of achieving our Water Use and Recycling Rate targets. We used this time period to learn and develop our Environmental Management System (EMS) (pages 104-105) to make progress going forward. 2020 was not a typical year for our properties and our residents. At the onset of COVID, we predicted that people staying at home would have a significant impact on our metrics. Our assumptions were correct, and those results are reported in this scorecard. Water use increased because our residents were home all day. Waste increased because people were eating more meals at home. Energy use in our common areas decreased as those spaces were closed for health and safety reasons. Energy efficiency projects scheduled

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to occur early in the year to maximize savings were postponed until late in fourth quarter affecting total estimated savings for the year. Gables commitment to continue to work towards improving our environmental impact remains strong. We have refocused our efforts with implementation plans and budget commitments for our new 2030 goals. You can learn more about these plans on pages 98-103. Gables manages and tracks the use of resources and analyzes the data at each community to identify opportunities to reduce unnecessary resources; monitor our progress toward goals; and report results to stakeholders. We use ENERGY STAR® Portfolio Manager® to track data for energy use, greenhouse gas emissions, water use and waste reduction.


P E R F O R M A N C E M E T R I C S S C O R EC A R D 2020 Assets Reporting Total Square Footage Energy

2019

2018

2017

2016

2015 Baseline

48

48

48

48

48

48

14,171,932

14,171,932

14,171,932

14,171,932

14,171,932

14,171,932

193,637

Goal: Reduce Common Area Energy Use by 10% by 2020

Like-for-Like (one million British thermal units [MBtu]) Compared to Baseline (%) Emissions

179,353

183,849

184,394

189,152

191,413

-7.4%

-5.1%

-4.8%

-2.3%

-1.1%

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

Like-for-Like (metric tons)

2,794

2,887

2,853

2,915

2,935

3,053

15,092

15,800

16,128

16,167

16,535

16,608

Total CO2 Emissions

17,886

18,687

18,981

19,081

19,470

19,660

Total CO2 Emissions Compared to Baseline (%)

-9.0%

-4.9%

-3.5%

-2.9%

-1.0%

Scope 1 (Direct) CO2 Emissions Scope 2 (Indirect) CO2 Emissions

Water

Goal: Reduce Water Use by 10% by 2020

Like-for-Like (kgal) Compared to Baseline (%) Average Water Use Intensity (All Water Sources) (gal/ft ) 2

Waste

456,597

439,439

436,292

432,996

432,418

430,600

6.0%

2.1%

1.3%

0.6%

0.4%

33.9

32.9

32.4

32.5

32.8

32.4

Goal: Increase Recycling Rate by 10% by 2020

Total Waste (Disposed and Recycled Materials) (tons)

9,793

9,844

10,177

9,986

9,776

9,354

Waste (Disposed) (tons)

7,923

7,867

8,111

7,938

7,730

7,369

Recycled Materials (tons)

1,870

1,976

2,065

2,048

2,047

1,985

Recycling Rate (%)

19.1%

20.1%

20.3%

20.5%

20.9%

21.2%

Recycling Rate Compared to Baseline (%)

-2.1%

-1.1%

-0.9%

-0.7%

-0.3%

We calculate like-for-like sustainability metrics based on communities where we have operational control and only after Total Community / Apartment Count one full year of stabilized operations. This time qualification aligns with our “same-store” financial reporting metric. Communities (Stabilized and Lease-up)

Apartments (Stabilized and Lease-up)

97

101

103

101

109

108

111

26,560

28,926

28,348

30,901

30,530

31,630


our goals for 2030 The dawn of a decade in 2020 fixed our sights on a fresh 10-year horizon, as Gables set new 2030 goals in four areas – energy and greenhouse gas (GHG) emissions, water, waste and renewable energy. Following are all four goals with a summary roadmap for each.

ENERGY AND GHG EMISSIONS GOAL: : REDUCE ENERGY USE AND GREENHOUSE GAS EMISSIONS IN THE COMMON AREAS BY 20% BY 2030 (COMPARED TO 2019 LEVELS).

HOW WE’LL GET THERE Two overall strategies factor into our efforts to reduce emissions: Changing how we operate our communities and corporate offices and investing annually in energy

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efficiency. While we’ll begin by targeting Gables communities with the highest opportunities for savings, our ultimate goal is to reduce energy consumption across the entire portfolio. A new series of reports on monthly utility costs and consumption will be shared with onsite and service teams at each community. The reports will indicate where the community is consuming the most energy so that the teams can identify no-cost and low-cost changes to improve performance. Investing annually in energy efficiency projects will help us lower energy use by 2% each year (20% total by 2030). The projects include retrofitting lighting, installing new lighting controls, adding smart thermostats to common areas and replacing end-of-life equipment with higher-efficiency models.


Smart home technology (where installed) provides another energy-saving advantage: Gables can use remote control to lower energy use and utility costs in unoccupied apartment homes. The lowering of energy consumption will help reduce direct and indirect (Scope 1 and 2) emissions from greenhouse gases. Gables plans to further reduce both emissions by generating more renewable energy from onsite systems and by purchasing renewable energy credits (RECs).

NEST THERMOSTAT GABLES RESIDENCES | DENVER, CO

99


WATER GOAL: REDUCE WHOLE BUILDING WATER USE BY 10% BY 2030 (COMPARED TO 2019 LEVELS).

GABLES REPUBLIC SQUARE | AUSTIN, TX

100


HOW WE’LL GET THERE As with reducing energy use and lowering GHG emissions, Gables continues to engage onsite and service teams to manage the reduction in water use – first at communities with the highest usage, but eventually at all communities. The teams are briefed monthly on water use and costs through new reports that identify savings opportunities. Each team will be trained on turning the report information into action. A five-year plumbing retrofit project started in 2020 will reduce water use across the portfolio. In kitchens and bathrooms where existing fixtures exceed recommended flow rates, Gables is installing new faucets, aerators and shower heads. In our first target group of 22 communities, these retrofits are expected to lower Gables’ overall water use by 23.4 million gallons – or 5.7% compared to 2019 levels. That translates into an 11% average reduction per community.

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Gables is also testing two other projects to reduce water usage: • In November 2020, we initiated a leak detection program by monitoring high-usage submeters at resident homes. Gables will evaluate this effort through the first half of 2021 • In 2020, we piloted smart home technology to spot water leakage in apartment homes. This technology uses sensors to detect potential leaks. The pilots are taking place at Crimson and Gables Vinings Village Gables will also continue to explore new controls, such as water auto-fill valves installed in fountains and swimming pools.

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WASTE GOAL: INCREASE RECYCLING IN APARTMENT HOMES BY 10% BY 2030 (COMPARED TO 2019 LEVELS).

HOW WE’LL GET THERE Managing waste in our communities brings challenges. Knowledge of best practices in recycling is limited, and determining the appropriate size of containers in changing conditions requires constant oversight. Here’s what Gables will be doing to improve waste management performance: • Add collections for glass in areas where it is not currently collected • Pilot new strategies for handling cardboard • Train and educate onsite and service teams and residents on how to recycle correctly and reduce contamination • Evaluate the impact of valet trash services

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GABLES PARK TOWER | AUSTIN, TX

• Install signs and labels at waste and recycling disposal locations (places of decision) to provide guidance in good recycling practices • Explore managing waste onsite through a recycling ambassador program and/or explore hiring a third-party service provider • Review and right-size containers and numbers of pick-ups


RENEWABLE ENERGY GOAL: GABLES ADDED A NEW GOAL OF INCREASING THE USE OF RENEWABLE ENERGY BY 50% BY 2030 (COMPARED TO 2019 LEVELS).

HOW WE’LL GET THERE Each year brings new refinements in renewable energy technologies, making them more resilient and cost-effective. Gables will seize on these innovations to develop its road map for expanding renewable energy use. Here are a few actions we’ll be taking: • Conduct feasibility studies for renewable energy • Develop solar projects in the same store portfolio wherever feasible, and continue to conduct feasibility studies for solar assets • Continue to track and measure the progress of the solar PV and battery storage system at The Ashley Gables Buckhead • Procure Green-e certified renewable energy credits per the recommended schedule THE ASHLEY GABLES BUCKHEAD | ATLANTA, GA

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LEARNING, IMPROVING

Environmental performance is evolutionary. Performance is a process, not an event. Every action brings knowledge that informs the next move and the next plan – and the cycle repeats. To manage this cycle across its programs, Gables uses an Environmental Management System (EMS). Both a database and a framework, the EMS helps us reach environmental goals through an ongoing review, evaluation and improvement of our efforts. What makes the EMS especially valuable is that it’s engineered to be specific to Gables policies, goals and targets. The picture it provides is uniquely ours. Gables’ EMS follows a repeating cycle of plan-docheck-act (PDCA), also knowns as the Deming Cycle. Using our environmental goals and targets, the EMS enables us to review and update our standard operating procedures (SOPs). The updates help shape a plan

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to improve environmental performance. Sometimes, we end up creating new SOPs. With a plan in place, our next step is implementation. After that, environmental performance is evaluated to see whether objectives are being reached. Gables’ senior leadership reviews this evaluation, assesses next steps, and implements change where applicable. The repeating of the cycle brings continuous improvement and ultimately the evolution of our environmental performance.

act

plan

act

plan

act

plan

check

do

check

do

check

do

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sustainable community CRIMSON

Crimson is an exclusive Signature Collection community of 295 apartm Houston, Texas.

CERTIFICATIONS • Nation Green Building Standard, Silver Level • Fitwel Built, one-star rating

GREEN TRANSPORTATION • Walking distance to bus stop (7-minute walk, 0.4 mile) • Electric vehicle charging stations • Walk Score – 72 “Very Walkable” • Bike Score – 57 “Bikeable” • Transit Score – 55 “Good Transit”

ENERGY EFFICIENCY • Energy-efficient LED lighting throughout the community • ENERGY STAR dishwashers, refrigerators, washers • Programmable thermostats • High-efficiency HVAC systems • Energy-efficient Kone elevators • Airtight apartment home construction • High-performance low-e glass windows WATER CONSERVATION • Water-efficient showerheads and faucets • Water-efficient toilets • Water-efficient landscaping and irrigation system; limited areas requiring irrigation; drought-tolerant plants

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INDOOR ENVIRONMENTAL QUALITY • Fresh air circulation system in each apartment home • Low-VOC interior paint • 100 percent smoke-free community • Blackout window shades in all bedrooms • Indoor air quality management strategies and practices • Green cleaning program


ment homes convenient to the River Oaks District and The Galleria in

FEATURES TO PROMOTE WELL-BEING • Heated spa swimming pool • Fitness center • Yoga studio with The Mirror fitness technology • Water bottle refilling stations • Outdoor grilling kitchen • Chef’s kitchen • Post Oak Park and walking trail (7-minute walk, 0.4 mile) • Accessible stairs with active design strategies • Building designed to minimize noises from both indoors, outdoors • Restorative courtyard garden • Views of nature in all amenity spaces

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sustainable community GABLES VININGS VILLAGE CERTIFICATIONS • EarthCraft Multifamily – certified February 2021 • Pursuing Fitwel Built certification ENERGY EFFICIENCY • Energy-efficient LED lighting throughout the community • ENERGY STAR dishwashers, refrigerators, washers • Smart programmable thermostats • High-efficiency HVAC systems and water heaters • Energy-efficient Kone elevators • Airtight apartment home construction • High-performance / low-e glass windows WATER CONSERVATION • Water-efficient showerheads and faucets • WaterSense-labeled, water-efficient toilets • Water-efficient landscaping and irrigation system; limited areas requiring irrigation; drought-tolerant plants

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Gables Vinings Village is a 295-apartment home community within restaurant district in the heart of Vinings’ historic village in greater featuring hardwood that was harvested and reclaimed from the ver

GREEN TRANSPORTATION • Walking distance to Metropolitan Atlanta Rapid Transit Authority (MARTA) bus stop • EV charging stations • Bike storage facility and bike repair station • Walk Score – 63 “Somewhat Walkable” • Bike Score – 33 “Somewhat Bikeable” INDOOR ENVIRONMENTAL QUALITY • Fresh air circulation system in each apartment home • Low-VOC interior paint • 100 percent smoke-free community • Blackout window shades in all bedrooms • Indoor air quality management strategies and practices • Green cleaning program


n walking distance to Vinings Jubilee, a vibrant shopping and Atlanta. Gables Vinings Village was “crafted with character,” ry land on which the community was built.

FEATURES TO PROMOTE WELL-BEING • Saltwater pool • Fitness studio • Water bottle refilling stations • Accessible stairs with active design strategies • Building designed to minimize noises from both indoors, outdoors

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WHAT WE’RE DOING

Ideas and initiatives continued to reduce our environmental impact. Promoting environmental sustainability requires both a steadfast commitment and a multi-faceted approach. By building on earlier efforts and introducing new initiatives in 2020, Gables gained momentum in reducing its impact on the Earth. Our priority now is to accelerate this momentum in the months and years to come.

green building certifications EARTHCRAFT MULTIFAMILY CERTIFIED Gables Century Center | Atlanta, GA Gables 820 West | Atlanta, GA Gables Midtown | Atlanta, GA Gables Brookhaven | Atlanta, GA The Ashley Gables Buckhead | Atlanta, GA FITWEL ONE STAR The Ashley Gables Buckhead | Atlanta, GA Gables Brookhaven | Atlanta, GA Gables Pointe 14 | Arlington, VA Gables Old Town North | Alexandria, VA Crimson | Houston, TX Gables Vista | Denver, CO FLORIDA GREEN BUILDING COALITION CERTIFIED Gables Ponce | Coral Gables, FL Gables Columbus Center | Coral Gables, FL

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USGBC LEED FOR BUILDING DESIGN AND CONSTRUCTION Gables Takoma Park | Washington, DC | LEED Silver Gables Park Plaza | Austin, TX | LEED Silver Gables Park 17 | Dallas, TX | LEED Silver Gables Park Tower | Austin, TX | LEED Silver USGBC LEED FOR HOMES Gables 12 Twenty One | Arlington, VA | LEED Silver Gables Centerpointe | Fairfax, VA | LEED Silver Gables Pointe 14 | Arlington, VA | LEED Gold Gables Old Town North | Alexandria, VA | LEED Silver ENERGY STAR® LABELED COMMUNITIES Gables 820 West | Atlanta, GA | 92 Gables Alta Murrieta | Murrietta, CA | 89 Gables at the Terrace | Austin, TX | 85 Gables Brookhaven | Brookhaven, GA | 98 Gables Central Park | Austin, TX | 88 Gables Century Center | Atlanta, GA | 89 Gables Cherry Creek | Denver, CO | 93 Gables Midtown | Atlanta, GA | 95 Gables Oak Creek | Wildomar, CA | 85

Gables Park Plaza | Austin, TX | 98 Gables Point Loma | San Diego, CA | 93 Gables Speer Blvd | Denver, CO | 98 NATIONAL GREEN BUILDING STANDARD (NGBS) Gables Upper Rock | Rockville, MD | Bronze Gables Post Oak | Houston, TX | Silver Gables Tanglewood | Houston, TX | Silver Gables River Oaks | Houston, TX | Silver Gables McKinney Ave | Dallas, TX | Silver Gables Cherry Creek | Denver, CO | Silver Gables Speer Blvd | Denver, CO | Bronze Gables University Station | Boston, MA | Bronze Gables Arsenal Street | Watertown, MA | Bronze Gables Water Street | Irving, TX | Bronze Gables Vista | Denver, CO | Gold Gables Residences at Cherry Creek | Denver, CO | Silver AUSTIN ENERGY GREEN BUILDING Gables Park Plaza | Austin, TX Gables Park Tower | Austin, TX

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energy initiatives LEADING WITH LED (LIGHTING) By continuing to expand the use of LED lighting, Gables lowers energy use, improves visibility in community areas and saves money. These lighting systems save over 600,000 kWh each year – and bring a 53% average reduction in energy use. In 2020, we re-lamped or replaced more than 1,500 fixtures in parking garages and outdoor areas in eight communities. These projects are estimated to have an average ROI of 23%. The LED systems brighten parking garages and common areas, thus promoting safety and enhancing aesthetics. They bring one other significant benefit: Our service teams now spend less time replacing fixture lamps and ballasts. Since 2015, Gables has completed 27 lighting projects that have reduced the portfolio’s energy use.

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1,500 FIXTURES RE-LAMPED/REPLACED IN PARKING GARAGES AND OUTDOOR AREAS IN 2020


HOME SMART HOME Crimson and Gables Vinings Village opened in 2020 with smart home technology to give both residents and onsite teams better control over energy usage. Using a mobile app, residents control thermostats and select in-home lighting, allowing them to minimize energy usage when at home or away. They can also lock and unlock doors with the app. Gables’ onsite teams use the smart home technology to manage energy usage in common areas as well as model and vacant apartment homes. The app’s settings even allow for automatic energy savings. Smart home technology also helps protect homes for water leaks. Sensors in kitchens, bathrooms and hot water closets alert residents and management to leaks as they happen. The sensors minimize excess water usage and property damage from leaks.

GABLES VININGS VILLAGE ATLANTA, GA

Gables anticipates implementing smart home technology in more communities in the years ahead.

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THE ASHLEY GABLES BUCKHEAD | ATLANTA, GA

HARNESSING THE SUN AT THE ASHLEY GABLES BUCKHEAD 2020 was the first full year of operation for the 28.8kW solar array and battery storage system at The Ashley Gables Buckhead. The system succeeded in generating the projected 42,000 kWh, valued at $6,720 (based on an estimated 16 cents per kilowatt hour). Tesla batteries used in the system are programmed to store excess energy during the day and discharge power when energy is needed. When enough solar energy has been generated to offset consumption and the batteries are fully charged, the additional energy is directed to other common areas in the building. When the terrace level consumes more energy than what is available from the solar array and battery system, grid energy is used. When the system is notified of a severe weather alert by the National Weather Service, the battery will charge to maximum capacity to prepare for a possible power outage.

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Some of Gables’ standard practices that save energy: • Energy contract negotiations and audits of utility bills (for accuracy) • ENERGY STAR appliances and equipment installed • Window and door weatherizing • Regular inspections and preventative maintenance for equipment • Higher efficiency models installed as replacements for end-of-life equipment • Scheduled temperature set-backs in common areas • Smart thermostats in several communities • Water heaters set to 120 degrees in model apartment homes and common areas • Education for associates on how to reduce energy and lower greenhouse gas emissions

On Earth Day 2020, residents and associates alike shared photos of their favorite outdoor space in the world. These beautiful images served as visual reminders of how important it is to protect our planet – and they were tagged #EVERYDAYGREEN and @gables_res by the communities.

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water initiatives INTELLIGENCE FOR WATER LEAKS

COMMUNITY WATER CONSERVATION

In November, Gables piloted a project to detect water leaks early in apartment homes with submeters, saving residents money and reducing water usage.

Gables’ new developments make water conservation a priority by limiting areas requiring irrigation and installing native drought-tolerant plants in landscape designs. In existing communities and new developments alike, irrigation systems also use rain and soil moisture sensors to run irrigation systems only when they’re needed.

Apartment homes with water submeters had already generated daily readings for billing purposes. When a submeter measures water use in excess of 500 gallons per day, a leak notification is sent to Gables’ onsite team. A service ticket is generated and the resident is notified that a possible leak has been detected. The service team then schedules an appointment to check the home for leaks and fixes the issue.

Two communities, Gables Brookhaven and Gables Park Tower, capture water for reuse. This conserves potable water and reduces the amount of water sent to the sewer system, saving energy use downstream at water treatment plants. Both communities use cisterns to help irrigate landscaping. Gables Brookhaven in Brookhaven, Georgia has a 75,000-cubic-foot underground cistern that holds rainwater and HVAC unit condensate. Gables Park Tower has a 2,500-gallon cistern.

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CRIMSON | HOUSTON, TX


Some of Gables’ standard practices that help conserve water: • Water-efficient plumbing fixtures • Inspections and preventative maintenance of plumbing and equipment • Education of residents on water conservation and leak reporting • Education of associates on water efficiency measures • Cooling tower management plans • Water-efficient cleaning equipment and water-conserving cleaning policies • Audits of utility bills for accuracy • Drought-tolerant plants in landscaping • Water-efficient irrigation systems with rain and soil moisture sensors

CISTERN GABLES PARK TOWER AUSTIN, TX

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waste reduction initiatives RECYCLING AND REUSE

118

Recycling practices are the cornerstone of Gables’ efforts to divert waste from landfills. To accelerate future progress in recycling and reuse, we shaped a pilot program in 2020 with the national nonprofit organization The Recycling Partnership.

The pilot is designed to help Gables fine-tune aspects of the recycling program in each community. Understanding resident participation will allow us to ensure we have the right capacity for collecting and processing recyclables at every Gables community.

Funded by a grant from the Coca-Cola Foundation and slated for a 2021 test-launch in our Atlanta communities, the program aims to strengthen outreach to measure and improve participation in recycling. Outreach tactics include: • Providing all residents in the pilot communities with a tote bag to gather and carry their recyclables • Creating a communications campaign to educate residents and encourage participation • Posting new signage as reminders • Promoting the separation and collection of recyclable glass

Our onsite teams will measure volumes of recycled materials throughout the pilot period. At the end of the pilot period, residents will be surveyed on their recycling habits and how they viewed the communication materials.

environment

If the program succeeds, we plan to replicate it in other cities. Gables also used social media in 2020 to educate more residents on best practices of recycling.


100% OWNED AND JOINT-VENTURE OWNED ASSET PARTICIPATION RECYCLING RATE

MATERIAL IMPACT IN CONSTRUCTION During the development process, Gables uses building techniques to generate less construction waste. By “right-sizing” the amount of needed materials – wood, metal, concrete, plastic and other materials – waste is diverted to the highest extent possible. Gables projects that tracked construction waste, diverted over 7,000 tons from landfills, at a rate of 89%. (The average diversion rate of these projects is 78%.)

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GABLES OLD TOWN NORTH | ALEXANDRIA, VA


securing commitments in supplies and services Sustainability is foremost in mind when purchasing materials and products for construction and improvement projects. In service and capital improvement contracts, Gables incorporates stipulation language and measures for: • Energy and water conservation • Proper disposal of materials and waste diversion • Storm water runoff impact and protection • Lessening impact on habitats and promoting biodiversity • Prioritizing sustainable building materials and procurement • Including environmental and cost implications when rebuilding, improving or adding amenities to a community • Considering sustainability when developing Five-Year Capital Expenditure Plans

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New developments and renovation projects follow standards set for building materials selection: • Interior paints will meet volatile organic compound (VOC) limits as defined by the project’s green building guideline. Renovation projects not pursuing green building certifications will use lowVOC paints that meet set standards • Hard flooring products will be FloorScore-certified. • Carpets will meet either GreenLabel or GreenLabel Plus certification • Products with Health and Environmental Product Declarations are encouraged • Products containing post-consumer or post-industrial recycled content are prioritized When purchasing consumables and durable goods at our corporate and onsite offices, we’ve established guidelines that align with sustainability goals.


For ongoing consumables, we look for products that contain at least 10% post-consumer waste and /or 20% post-industrial material. For durable goods, we purchase ENERGY STAR-labeled products when available, and we ask our vendors to provide information on recycled content and reduced packaging options. Gables manages utility costs for energy procurement by negotiating rates in de-regulated markets and by reducing energy usage through operational changes and energy-efficiency projects.

GABLES MCKINNEY AVE | DALLAS, TX

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122

GABLES POINTE 14 | ARLINGTON, VA


electric vehicles To keep pace with the growing number of electric vehicles owned by Gables residents and associates, we expanded the number of charging stations at our communities in 2020 by 24%.

For new developments, Gables continues to meet its commitment to install EV charging stations in each community we build. Going forward, we are implementing EV-ready spaces with the infrastructure needed to accommodate charging technology.

In existing communities, charging stations are installed in response to market demand. Last year, we saw savings in cumulative CO2 emissions increase by 173% — a sign that the use of charging stations is increasing across the Gables portfolio. CUMULATIVE EMISSIONS SAVED DUE TO EV CHARGING

THE NUMBER OF CHARGING STATIONS EXPANDED BY 24%

CO2 EMISSIONS (METRIC TONS)

140 120 100 80 60 40 20 0 2015

environment

2016

2017 YEAR

2018

2019

2020

123


124 GABLES POINTE 14 | ARLINGTON, VA


GA B L E S P E R FO R M S W I T H T R A N S PA R E N C Y THE PAGES AHEAD: Global Real Estate Sustainability Benchmark (GRESB) Reporting • Global Reporting Initiative (GRI) Content Index • Task Force on Climaterelated Financial Disclosures (TCFD) Index

open to all

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about this report

gresb reporting

Gables is proud to present our seventh Corporate Citizenship Report summarizing our sustainable development and management performance and practices for the year ended December 31, 2020. Performance data includes Gables owned and joint venture assets, unless otherwise noted. For more information on this or prior Corporate Citizenship Reports, visit gables.com/everyday-green.

Gables has received top rankings in the Global Real Estate Sustainability Benchmark (GRESB) Real Estate Assessment, within the United States Residential Sector, beginning with our first year of participation in 2012. GRESB Assessments are a leading global source of portfolio-level data on environmental, social and governance (ESG) performance and sustainability best practices for real estate companies and private equity funds. Gables’ most recent sustainability performance is reflected in the 2020 GRESB Assessment, which compares favorably to its peers. In 2020, GRESB separated scoring for stabilized and development properties. For stabilized assets, Gables ranks 7th out of 16 for U.S. Non-Listed Residential Operators, with an index score of 75. For development assets, Gables ranks 1st out of 14 for U.S. Non-Listed Residential Operators, with an index score of 91.

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GRESB SCORE

GABLES’ GRESB STANDING INVESTMENT SCORE BY YEAR 100 90 80 70 60 50 40 30 20 10 0

2012*

2013

2014

2015

2016

2017

GRESB AVERAGE

PEER GROUP AVERAGE

2018

2019

2020

GABLES SCORE

GRESB SCORE

GABLES’ GRESB DEVELOPMENT SCORE BY YEAR 100 90 80 70 60 50 40 30 20 10 0

2012**

2013*

2014

PEER GROUP AVERAGE

2015

2016

2017

GRESB AVERAGE

*Peer group average for this year is unavailable.

2018

2019

2020

GABLES SCORE

**GRESB average for this year is unavailable

127


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. ABOUT THE GLOBAL REPORTING INITIATIVE The GRI helps businesses and governments worldwide understand and communicate their impact on critical sustainability issues such as climate change, human rights, governance and social well-being. 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

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Number GRI Disclosure Title ORGANIZATIONAL PROFILE 102-1 Name of Organization 102-2 Activities, brands, products and services 102-3 Location of headquarters 102-4 Location of operations 102-6 Markets served 102-7 Scale of the organization 102-8 Information on employees and other workers 102-12 External initiatives 102-13 Membership of associations STRATEGY 102-14 Statement from senior decision maker 102-15 Key impacts, risks and opportunities ETHICS AND INTEGRITY 102-16 Values, principles, standards and norms of behavior GOVERNANCE 102-18 Governance structure 102-19 Delegation authority 102-20 Executive-level responsibility for economic, environmental and social topics STAKEHOLDER ENGAGEMENT 102-43 Approach to stakeholder engagement REPORTING PRACTICE 102-50 Reporting period 102-51 Date of most recent report 102-52 Reporting cycle 102-53 Contact point for questions regarding the report 102-55 GRI content index ENVIRONMENTAL 302-4 Reduction of energy consumption


Reference

Page Number

Who We Are Who We Are Gables Corporate Offices Who We Are Who We Are Who We Are Gables’ Profile in Diversity Letter from the CEO, Thinking Globally, Gables Performs with Transparency The Company We Keep, Thought Leadership

10 10 Back Cover 11 11 11 14 6-7, 84-85, 125-131 80-83, 92-93

Letter from the CEO Thinking Globally, Prevention First, Our Goals for 2030

6-7 84-85, 88-91, 98-103

What Drives Us, Behaving Ethically is Part of Our Culture

13, 89-91

Roles and Responsibilities Roles and Responsibilities Gables Leadership

18 18 https://www.gables.com/leadership/

Letter from the CEO, How We Engaged Associates, How We Engaged Residents, 6-7, 38-47, 48-53, 68-69, 70-77, 92, 93 From Market to Home, Promoting Social Justice, Thought Leadership About This Report About This Report About This Report Reporting GRI Reporting Index

126 126 126 Back Cover 128-129

Performance Metrics Scorecard

96-97

129


SECTION 1a. Governance 1b. Governance

tcfd index The Task Force on Climate-related Financial Disclosures (TCFD) developed four recommendations on climaterelated financial disclosures based on the core elements of how companies operate covering governance, strategy, risk management and metrics and targets. This report includes the recommended specific disclosures for each of the four topics. About the Task Force on Climate-related Financial Disclosures The Financial Stability Board established the TCFD to develop recommendations for more effective climate-related disclosures that could promote more informed investment, credit, and insurance underwriting decisions and, in turn, enable stakeholders to understand better the concentrations of carbonrelated assets in the financial sector and the financial system’s exposures to climate-related risks. https://www.fsb-tcfd.org/about/

2a. Strategy

2b. Strategy

2c. Strategy

3a. Risk Management 3b. Risk Management 3c. Risk Management

4a. Metrics & Targets

4b. Metrics & Targets

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GABLES SEAPORT | BOSTON, MA

reporting

4c. Metrics & Targets


DISCLOSURE Describe the board’s oversight of climate-related risks and opportunities. Describe management’s role in assessing and managing climate-related risks and opportunities.

Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.

Describe the impact of climate-related risks and opportunities on the organization’s business, strategy, and financial planning. Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2 degree C or lower scenario. Describe the organization’s process for identifying and assessing climate-related risks. Describe the organization’s process for managing climate-related risks Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management. Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.

GABLES’ RESPONSE Gables’ Board of Directors has oversight of climate-related risks and opportunities. The board receives reports from senior leadership on areas of risk and opportunity, including climate-transition and physical risks. Gables’ Sustainability Advisory Council (SAC) receives reports on energy and GHG emissions, green building certifications and building energy ratings to review and evaluate progress towards targets and goals. The Resilience Project Team, a committee of the SAC, identifies opportunities to manage and mitigate climate-related risks. Refer to Environmental (page 16); and Governance (page 17); Sustainability Advisory Council (page 18); and Taking Action to Protect us from Threats (page 88). Gables engaged a consultant to prepare a physical climate risk assessment covering 17 types of acute and chronic risks, including hurricanes, flood hazard, wildfire hazard and sea level rise. With the risk parameters for an area identified, the development and operations teams assess the applicability of short to long term risks according to the specific location, site and building conditions, and mitigation strategies in place. Refer to Taking Action to Protect Us from Threats (page 88). Gables utilizes the framework of our environmental management system (EMS) and our standard operating procedures to plan, budget, evaluate and implement climate-transition and physical risk areas. Gables set long-term goals to reduce energy use and GHG emissions of the portfolio, increase renewable energy use and report progress in accordance with World Resources Institute, Revised Edition, Section 4. Refer to Energy and GHG Emissions Goal (page 98) and Renewable Energy Goal (page 103). Refer to responses 1b, 2a, 2b and 2c above. Refer to Taking Action to Protect Us from Threats (page 88); Environmental Performance is Evolutionary (page 104); and responses 1a and 1b above. Refer to responses 1a, 1b, 2a, 2b, 2c and 3b above.

Gables utilizes energy and GHG emissions performance metrics, green building certifications, building energy ratings and physical climate risk assessments to assess climate-related risks and opportunities.

Refer to Sustainability Scorecard for Scope 1 and 2 GHG emissions reporting (page 97) and Our Goals for 2030, Energy and GHG emissions goal (page 98). Refer to Our Goals for 2030, Energy and GHG emissions goal (page 98) and Renewable Energy Goal (page 103). 131


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

132 GABLES VISTA | DENVER, CO

GablesResidential @gables gables_res

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Gables Residential 2020 Corporate Citizenship Report  

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