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CORPORATE CITIZENSHIP REPORT 2014


TABLE OF CONTENTS GABLES RESIDENTIAL CORPORATE CITIZENSHIP REPORT 2014

1 2 3-4 5 6 7-8 9 - 10 11 - 12 13 - 14 15 16 17 - 18 19 - 20 21 - 22 23 - 24 25 26 27 28

A NOTE FROM OUR PRESIDENT & CEO TAKING CARE OF THE WAY PEOPLE LIVE SUSTAINABLE COMMUNITY: GABLES PARK TOWER TAKING CARE OF OUR RESIDENTS TAKING CARE OF OUR CLIENTS TAKING CARE OF OUR RETAIL TENANTS SUSTAINABLE COMMUNITY: GABLES PONCE TAKING CARE OF OUR ASSOCIATES TAKING CARE OF OUR TEAMS TAKING CARE OF OUR WELL-BEING TAKING CARE OF CORPORATE HOUSING SUSTAINABLE COMMUNITY: GABLES RIVER OAKS TAKING CARE OF OUR ENVIRONMENT TAKING CARE TO MEASURE OUR SUSTAINABILITY PERFORMANCE SUSTAINABLE COMMUNITY: GABLES TANGLEWOOD TAKING CARE OF OUR INVESTORS TAKING CARE OF THE COMMUNITY TAKING CARE OF BUSINESS #GABLESPROUD


A NOTE FROM OUR

PRESIDENT & CEO

I am #GablesProud! In my 27 years here, I could not be more proud of the entire Gables team than I am today. Let me share with you why. 2014 was one of change and uncertainty as the Gables organization went through a planned recapitalization. Not only did Gables associates engage in their respective roles throughout the event, but they raised the bar in executing our mission every day with unparalleled pride and professionalism. “Taking Care� is an all-encompassing spirit and a pervasive culture that is incorporated into everything we do as an organization. Good corporate citizenship is one of the measures Gables undertakes and holds as a cornerstone of living our mission. It is not something that can be accomplished in one day and the box is checked for the year. Good corporate citizenship is an enduring objective that overlays all of our decisions and undertakings. It guides our interactions with our associates, retail tenants, investors and vendor partner relationships. It influences our development and operational endeavors. It directs our involvement with our local communities. It defines our organization. Gables associates steadfastly focused on these core beliefs in 2014. As a result, exemplary financial results were achieved for our investors and in addition, the company and many associates were recognized on numerous occasions throughout the multi-family industry for innovation and performance. Over the course of the year the team completed $360M of development while actively working on $600M of new development and an additional $16M of value-add renovation activity, all of which was undertaken with sustainability certification guidelines and goals generating returns above expectations. Through the thoughtful application of the actions necessary to achieve these measures, our team has been able to deliver award-winning, industry leading ideas and initiatives. As important as it is to Gables to be a leader in the industry, being an active corporate contributor in the neighborhoods in which we do business is equally important. Gables communities are a part of their local neighborhoods with many associates committing their time to make a difference. They are passionate about improving their surroundings and assisting the local community through their time and donations. In addition, many Gables associates participate in the local chapters of industry related organizations as well as leadership roles at the state and national level. Providing leadership in the community and in the multi-family industry is our associates’ way of personally giving back to make their world a better place. As you read through the balance of this report you will see some of the specific details related to Gables sustainability efforts, community service endeavors, associate engagement and corporate governance measures. These are the cornerstones of Gables corporate citizenship efforts. I know you will understand why I say, I am #GablesProud.

Susan M. Ansel President & Chief Executive Officer


OUR MISSION

VISION

&

OUR CORE VALUES • Extraordinary quality and service for our residents • Unparalleled employment experiences for our associates • Utmost integrity and value for our shareholders and customers

Taking Care of the Way People Live

• Enduring contributions to our local communities

Gables Residential is an award-winning, vertically integrated real estate company and privately held REIT specializing in the development, construction, acquisition and management of multifamily and mixed-use communities throughout the United States, including Atlanta, Austin, Boston, Dallas, Denver, Houston, Southern California, South Florida, and metropolitan Washington, D.C. In addition, on behalf of our third-party clients, we manage communities located in other markets that are referenced on the map below.

GABLES MANAGES

34,529

APARTMENT HOMES

GABLES OWNS

507,648

Our vision is to be the industry leader for innovation, adaptability and entrepreneurship in providing high-quality living experiences in premier apartment communities. These experiences are created from a culture committed to producing products and services that appeal to the evolving demographic in high-growth markets in the United States.

SQUARE FEET OF RETAIL SPACE ACROSS THE COUNTRY

ON THE MAP Metro New York/ New Jersey

Seattle

Boston

Denver San Diego Metropolitan DC Charlotte Atlanta

Phoenix

Jacksonville Dallas Houston

Tampa

Orlando South Florida

Austin

2

Gables Residential Corporate Citizenship Report 2014


MATERIALS RESOURCES • • • • • • • •

&

Over 10% of building materials (concrete and steel) manufactured from recycled content Reduced carbon footprint - more than 20% of material originated within 300 miles Over 70% of construction waste material diverted from landfills and recycled Renewable bamboo flooring in apartment homes Recyclable carpeting Solar shades to reduce heat transfer Use of eco-friendly cleaning products by on-site team Energy efficient light colored roof

INDOOR ENVIRONMENTAL QUALITY • •

Low-emitting materials-adhesives, sealants, zero VOC paint, carpet and composite wood products Smoke-free community

ENERGY & WATER

EFFICIENCY • • • • • • •

Interior fluorescent lighting inside apartment homes and common areas Programmable thermostats Low-flow plumbing fixtures Double-glazed windows ENERGY STAR qualified appliances High-efficiency HVAC systems Low-E glass

LANDSCAPING & ENVIRONMENT • • • • •

Drought-tolerant native plants Bio-filtration meadow to filter debris and sediment prior to entering source of area’s drinking water Widening of sidewalks, extension of a pedestrian bridge and future railroad underpass to enhance nearby pedestrian and cyclist infrastructure Rain sensors on irrigation Condensate collection system used for irrigation

TRANSPORTATION • • • • •

Shopping, restaurants and other service-oriented businesses within walking distance Amtrak station within a ½ mile Two bus stops within a ¼ mile Bicycle storage facility Preferred parking for energy-efficient vehicles

Electric car charging stations


GABLES PARK TOWER Austin, TX USGBC LEED Silver Certified

70%

SUSTAINABLE COMMUNITY

OF CONSTRUCTION WASTE WAS DIVERTED FROM A LANDFILL

4

Gables Residential Corporate Citizenship Report 2014


to our residents and guests alike. “Home” is what we strive to create while Taking Care of our residents’ every need. Thanks to our resident feedback, via our independent professional surveys, we’ve exceeded industry standards for another consecutive year by providing excellent customer service.

“The management staff has provided me with exceptional customer service. Their professionalism and willingness to assist me in any way has been outstanding. I would recommend Cherry Knoll to my friends and family members if they lived here in Maryland.”

“This is an amazing facility with even more amazing staff. The folks at the Concierge desk are first class. Thanks much for all the above and beyond effort to help us move in.”

“My process of moving was exceptional. The manager and staff were totally professional, promptly answered all my questions via phone AND email. I’ve never worked with management that made sure all your concerns/questions are met so quickly. Thank you.”

RESIDENT SATISFACTION SURVEY “The response is always fast, professional and efficient and well done. I cannot speak highly enough about the entire staff at this community. They are simply outstanding and have always delivered responses and services higher than my expectations. I was apprehensive about returning to an apartment home, but Gables Residential and the Desert Club have alleviated all of my concerns. It is a real joy to live here. Thank you for the quality and professionalism you and your staff demonstrate every day.”

4.04 Gables

4.18 Gables

4.42 Gables

4.04 Gables

3.88

Overall Satisfaction

Kingsley IndexSM

4.03

Community Recommendation

Kingsley IndexSM

4.26

Overall Satisfaction (Maintenance)

Kingsley IndexSM

3.90 Kingsley IndexSM

Overall Satisfaction (Management) Source: Kingsley Survey Review, Q3 2014. kingsleyassociates.com

Taking Care of Our Residents

Gsignature ables strives to provide our hospitality experience


Taking Care of Our Clients

GPremium ables Residential not only develops and owns apartment communities in Established Neighborhoods ™ (EPNs) throughout the United States, but we also provide

third-party management services to over 60% of our portfolio. Gables believes in Taking Care of our clients by investing in training and human resources, pursuing market research and analytics, and allowing our clients to reap the benefits of our Gables programs and systems. Our boutique approach to management offers a unique and personalized experience for all of our clients.

“AEW Capital Management has enjoyed working with Gables Residential for more than 20 years. Gables consistently provides an experienced and professional management team supported by a strong corporate platform. We have worked successfully together on a variety of strategies including stabilized properties, asset repositioning, new developments and property sales. The Gables team does an excellent job of understanding and implementing ownership’s objectives.”

“Gables is a proven market leader in the multi-family industry. From senior management to community staff, the Gables team is one of service and expertise that has delivered strong market performance; allowing us to outperform the competition and maximize returns. As Gables has developed a strong brand nationally, we quickly look to them to understand opportunities in various markets. We take a lot of pride in our 15 year history with Gables Residential.”

- Julie Kittler, Vice President Multifamily Asset Management AEW Capital Management, L.P.

- Principal Financial Group

66

Gables Residential Corporate Citizenship Report 2014 Gables Residential Corporate Citizenship Report 2014


W e are committed to building and Taking Care of successful mixed-use destinations located in some of the most desirable neighborhoods throughout the

Taking Care of Our Retail Tenants

United States. Our special blend of retail and residential offers a “one stop shop” living choice for those who seek luxury and convenience - an ideal place to live, dine, shop, and ultimately thrive, all while limiting our carbon footprint and enhancing our residents’ lives with a maintenance-free lifestyle. Gables West Ave Houston, TX

Gables Villa Rosa Dallas, TX

Emory Point Atlanta, GA

Gables Park Plaza Austin, TX

Gables Uptown Tower Dallas, TX

Gables Upper Rock Rockville, MD

Gables Park Tower Austin, TX

Gables Wilton Park Wilton Manors, FL

Gables Tanglewood Houston, TX

Gables Park 17 Dallas, TX

Gables Ponce Coral Gables, FL

NEW RETAIL TENANTS CAN OPT TO USE EXISTING FURNITURE & FIXTURES

“I chose Emory Point for my specialty food concept because of the proximity to Emory University, the Center for Disease Control and the affluent neighborhoods nearby. The ambiance of the center provides a great town center feeling and the co-tenancy with restaurants and retailers creates a unique synergy. I am looking forward to the next phases of Emory Point opening given the interesting mix of retail tenants and the potential to become a regional destination for shopping and dining which will ultimately be beneficial to businesses like Strippaggio.” -Celia Tully Owner Strippaggio

“We value and appreciate that Gables continues to set the bar high. Our decision to relocate our Tootsies’ Houston flagship store and office headquarters totaling over 40,000 square feet to Gables West Ave proved to be a huge win for our organization. Gables presented the ideal opportunity to occupy an entire city block within the heart of Houston’s oldest and most affluent residential area. The management team continues to foster a genuine and positive tenant landlord relationship further supporting our overall success and focus on fashionable women and stellar customer service.” - Norman Lewis Chief Operating Officer Tootsies


EMORY POINT // Atlanta, GA

LED LIGHTS USED IN ALL NEW DEVELOPMENTS AND RETROFITTED PARKING GARAGE LIGHT FIXTURES FROM HIGH ENERGY BULBS

“As a franchisee of multiple retail store locations, I fully appreciate that Gables Urban has set the bar high. The retail management team fosters a uniquely engaging and positive tenant/landlord relationship with dedicated focus on retail success.” - Stephanie M. Folsom fab’rik

SINGLE

STREAM

RECYCLING

PROVIDED

WEST AVE // Houston, TX 8

Gables Residential Corporate Citizenship Report 2014


GABLES PONCE Coral Gables, FL

SUSTAINABLE COMMUNITY

FGBC Green Achievement Award

75%

OF CONSTRUCTION WASTE WAS DIVERTED FROM A LANDFILL


MATERIALS RESOURCES • • • • • • •

&

Over 10% of building materials (concrete and steel) manufactured from recycled content Reduced carbon footprint - more than 20% of materials originated within 300 miles 75% of construction waste materials diverted from the landfill and recycled Site has infrastructure capable for recycling paper, cardboard, glass, plastics and metal Solar shades to reduce heat transfer Use of eco-friendly cleaning products by on-site team Energy efficient light colored roof

INDOOR ENVIRONMENTAL QUALITY • •

Low-emitting materials-adhesives, sealants, zero VOC paint, carpet and composite wood products Smoke-free community

ENERGY & WATER

EFFICIENCY • • • • • • •

Interior fluorescent lighting inside apartment homes and common areas Programmable thermostats Low-flow plumbing fixtures Hurricane Impact windows ENERGY STAR qualified appliances High-efficiency HVAC systems Low-E glass

LANDSCAPING & ENVIRONMENT • • • •

Drought-tolerant native landscaping Water efficient irrigation system Enhancing of sidewalks, landscaping and parking along streets around project Rain sensors on irrigation

TRANSPORTATION • • • • •

Shopping, restaurants and other service-oriented businesses within walking distance Metro rail station within a ½ mile City of Coral Gables bus stops within walking distance Bicycle storage facility Metro bus stops within walking distance

10

Gables Residential Corporate Citizenship Report 2014 Gables Residential Corporate Citizenship Report 2014


Obesturpeople, associates are our most valuable asset. We believe it is important to recruit the invest in them and develop their skill-sets as our future generation of leaders. We accomplish Taking Care of our associates via our innovative recruiting, training and leadership programs. We maintain our top-notch team thanks to our leading-edge recognition programs, awards and benefits, as well as a strong company culture recognized industry-wide. GABLES LEADERSHIP INSTITUTE The Gables Leadership Institute (GLI) is a year-long blended learning program centered around developing the high potential talent at Gables and preparing them as future leaders of the company. Each GLI applicant participates in a rigorous process to be admitted including sponsorship from a Gables officer. The first GLI class began in October of 2013 and contained a cross-functional representation of Gables’ corporate and on-site leaders. The GLI leadership program consists of four separate training sessions facilitated by renowned subject matter experts in their field. Each session of GLI focuses on a different attribute of becoming a leader.

Taking Care of Our Associates

The results are fantastic. Three of the twelve participants have been promoted as senior leaders in 2014, which is directly linked to their GLI learning experience.

RECRUITING Gables Residential is committed to hiring high caliber talent. In 2014, our recruitment team served on the NAAEI Careers Committee, guest lectured at postgraduate level property management courses, and provided mentorship to high school students considering the industry. Career fairs were attended at University of Georgia, University of Texas, University of Maryland, American University, and more. In addition, Gables supported Veteran recruitment efforts by asking Veterans and their family members to “join our ranks” while participating in fairs in Atlanta, Houston, and the DC metro area this year.

3 12 OF

GLI MEMBERS PROMOTED IN 2014


ASSOCIATE DEMOGRAPHICS 2%

48%

31% Hispanic

Caucasian

ASSOCIATE GENERATION BREAKDOWN

3%

FEMALE

80%

22%

90%

88% 85%

92% 90%

87%

60%

Baby Boomers

40% 20%

42%

0% Overall Satisfaction

Generation X

Recommend Gables to a Friend

Proud to Work for Gables

Kingsley IndexSM

Gables Associates

IN YEARS

13.8

LEADERSHIP AVERAGE TENURE

6.5 { 6{

5

REGIONAL MANAGERS

THE GABLES 411

TENURE

2014 TRAINING IN HOURS

26,762 24 TOTAL TRAINING HOURS

4,256 ONLINE

AVERAGE HOURS PER ASSOCIATE

22,506 IN PERSON

8,893

VIEWS OF TRAINING VIDEOS

COMMUNITY MANAGERS

3.7{

MALE

2 or more races

African American

100%

Other

35%

16%

ASSOCIATE SATISFACTION

1%

Generation Y

46% 54%

Asian

219

HOURS OF VIDEO TRAINING PRODUCED

ON-SITE ASSOCIATES 12

Gables Residential Corporate Citizenship Report 2014


THE SUNSHINE FUND Funded solely by associate contributions, the Sunshine Fund was established to assist Gables associates in need due to an unexpected tragedy or medical emergency. In times of desperate need, Gables associates can take comfort in the care and compassion of their fellow associates. By contributing as little as $1 per paycheck through automatic payroll deductions, our associates can directly affect the life of another Gables associate, a co-worker, or a friend, who needs help.

$120,000 DOMESTIC PARTNERSHIP BENEFITS At Gables Residential, we treat everyone equally and are proud to offer domestic partnership benefits to same sex spouses, domestic partners and civil union partners and their children. These benefits include medical, dental, vision, our Employee Assistance Program (EAP), dependant life insurance, and family accidental death and dismemberment insurance.

Taking Care of Our Teams

EMPLOYEE ASSISTANCE PROGRAM The Employee Assistance Program (EAP), available immediately upon employment, is designed to assist Gables associates and their family members with personal problems that may involve financial worries, family or marital difficulties, divorce or separation, and drug and alcohol dependence. Complete confidentiality in all voluntary contacts with the EAP is assured except as specified by law.

DONATED TO OUR FELLOW ASSOCIATES SINCE 2003


GABLES CONSTRUCTION HAD

0

INCIDENTS & ILLNESSES IN 2014

SAFETY The safety of our associates is a top priority for Gables. Gables Construction has developed and is implementing a new fall protection program for wood construction that is aimed at further reducing the potential for injury from falls. All construction associates are required to attend an Occupational Safety and Health Administration (OSHA) 10 hour outreach training class every 2 years. We also require construction associates to take the Trenching/Excavation Class, Fall Protection Class, and Scaffold Training at the commencement of each new project. It is vital that we provide innovative and effective safety training in order to protect our most valuable assets - our associates.

FOREVER GREAT SCHOLARSHIP Since 2000, associates and their children who are committed to continuing education have been awarded the Forever Great Scholarship to help reimburse tuition expenses. Each year, an average of eight selected associates receives this benefit.

$175,000 IN SCHOLARSHIPS SINCE 2000

14

Gables Residential Corporate Citizenship Report 2014


D elivering great customer service to our residents is only possible if our associates are highly engaged. Therefore, we believe it’s important to have happy and healthy

associates. Taking Care of our associates is an important value at Gables as we understand the critical role they play in our success every day. We promote individual well-being while encouraging a positive work-life balance.

Taking Care of Our Well-Being

ANNUAL HEALTH FAIRS

Each year in our major regions, Gables holds health fairs where associates can ask questions of representatives from our insurance carrier, learn ways to save more from our 401(k) education specialists, and receive free flu shots, biometric screenings and personalized health coaching. Our associates earn incentives on their paychecks for their participation and attention to their personal health. In 2014, a brand new GMC Denali Road Bike was raffled off to a lucky associate in each region.

ASSOCIATES WHO HAVE REACHED 10 YEARS WITH GABLES ARE ELIGIBLE FOR A

6 WEEK

SABBATICAL

WE ARE

FIT4FUNDS!

We are invested in our associates’ wellness, because, after all, healthy = happy, and we truly believe in Taking Care of the Way People Live. Our incentive-based program, Fit4Funds, encourages our associates to practice healthy living, whether it be improving ones knowledge, diet, or exercise. In 2014, we featured the following Fit4Funds challenges: Q1: Healthy Habits: Tracking & Improving Eating Q2: Wellness Webinar Series Q3: Peak Performance: 10,000 Steps to Wellness Q4: Movers & Shakers: 150 Minutes of Movement Associates who complete these challenges earn Fit4Funds incentives on their paychecks!


Gserviceablesto Corporate Accommodations (GCA) provides a furnished apartment home individuals or corporations anywhere in the nation. GCA combines

GCA LEASED NEARLY

GCA’s larger clients include Amazon, ExxonMobil, Deloitte, Hess, Cartus, Graebel, and Aires.

2,000

CORPORATE APARTMENT HOMES IN 2014

In 2014, GCA developed and launched a mobile app giving residents access to details about their apartment home, arrival instructions, and area recommendations.

CORPORATE APARTMENT HOMES IN OVER

Corporate Housing Provider of the Year Forum for Expatriate Management

16

30 STATES

Taking Care of Corporate Housing

cost-effective ideas, personal service and the simplicity of one point of contact, as we believe in Taking Care of apartment home living on any scale, furnished or unfurnished.

Gables Residential Corporate Citizenship Report 2014


MATERIALS RESOURCES • • •

&

Recycling bins located throughout the community Use of eco-friendly cleaning products by on-site team Sustainable bamboo flooring

INDOOR ENVIRONMENTAL QUALITY • • • •

Low VOC paint Smoke-free community Controllable lighting and thermal comfort Double paned insulated windows

ENERGY & WATER

EFFICIENCY • • • • • •

ENERGY STAR qualified appliances Low-E glass LED lighting throughout community Low-flow commodes Water conserving shower heads and faucet aerators Energy conserving business practices by on-site team

LED Lighting throughout the Community LANDSCAPING & ENVIRONMENT • •

Native landscaping Rain sensors on irrigation system

TRANSPORTATION • • •

Mixed-use community featuring shops and restaurants on-site/within walking distance Electric vehicle charging station Walking distance to public transportation access


GABLES RIVER OAKS Houston, TX

SUSTAINABLE COMMUNITY

National Green Building Standards - Silver

18

Gables Residential Corporate Citizenship Report 2014


Omindfulur environment has an incredible impact on the way we live, so in turn we are about the impact Gables has on the environment. Our green standards

apply to the way we strategically develop our communities, invest in the surrounding cities and act as a common thread throughout each and every sustainable practice. From our online leasing application system, to the continuing education programs at all of our communities and corporate offices, we continually believe in Taking Care of ways to contribute to our environment and support efforts to make our world a better and safer home for our future.

2014 GRESB SCORES 50 40 Gables Residential

Taking Care of Our Environment

30 20

Peer Average

10 0 Overall Score

Management & Policy

Implementation & Measurement

GRESB stands for Global Real Estate Sustainability Benchmark. GRESB is a leading source of comprehensive portfolio level sustainability data for the real estate industry.

GREEN PROGRAMS

RECYCLING PROGRAM TOTAL WEIGHT OF NON-HAZARDOUS WASTE (TONS/MONTH) TOTAL WEIGHT OF RECYLCING (TONS/MONTH) OWNED ASSETS RECYCLING PARTICIPATION RATE COMMUNITY RECYCLING RESIDENT PARTICIPATION RATE (INDUSTRY RATE: 15%)

LEED NEW CONSTRUCTION

729 148 100 20

%

%

LEED FOR HOMES EARTHCRAFT MULTIFAMILY EARTHCRAFT LIGHT COMMERCIAL (RETAIL) EARTHCRAFT COMMUNITIES (MULTI-HOUSING) AUSTIN ENERGY GREEN BUILDING (AEGB) NATIONAL GREEN BUILDING STANDARD (NGBS) FLORIDA GREEN BUILDING SYSTEM (FGBS)


100% OF OUR NEW CONSTRUCTION IS GREEN CERTIFIED

GABLES UPPER ROCK // Rockville, MD

GABLES DUPONT CIRCLE // Washington, DC

20

Gables Residential Corporate Citizenship Report 2014


our development and daily operations. We strive to make sure we are Taking Care of our investor, customer and community needs by constantly seeking effective ways to implement green initiatives company-wide.

GABLES UPTOWN TOWER DALLAS, TX

AMERICAN UTILITY MANAGEMENT (AUM) SCORE:

100

7500

6823

6823

6823

6823

Ideal

Gables Uptown Tower

Ideal

Gables Uptown Tower

6000 MMBTU/KGAL

Taking Care to Measure Our Sustainability Performance

Twhererackingwe excelthe sustainability performance of our communities helps us recognize as well as assists us in focusing on areas for continued improvement in

4500 3000 1500 0

ENERGY USAGE IN 2014

WATER USAGE IN 2014

The ideal energy/water usage shown approximates the minimum consumption necessary to achieve an AUMScore of 100.

As compared to 2013, over half of Gables communities saved water, electricity, and CO2 in 2014 as reported by AUM. The average water consumption for Gables apartment homes on a daily basis was 87% of the industry average.


GABLES PARK TOWER:

COOLING

THINGS OFF VRF REDUCED THE NUMBER OF CONDENSING UNITS FROM 250 TO

Gables Park Tower implemented our first building-wide Variable Refrigerant Flow (VRF) HVAC system and represents 400 tons of cooling on all residential apartment homes and common area space. With the VRF we are able to reduce the number of condensing units from 250 to 19. Design modeling predicted energy reduction of 30-40% in consumption compared to unitary equipment. This also results in greater control of the building's interior temperature by the building's occupants.

19

35% 40%

REDUCTION IN ENERGY CONSUMPTION

“DXS and Daikin are excited to be a part of Gables Park Tower in Austin, TX. This project is the first high-end high rise multifamily community in Texas to implement the premium energy efficiency Variable Refrigerant Flow technology. Since Gables made the decision to pursue the use of new technology, several other high rise developments have followed suit. Daikin and DXS congratulate Gables for leading the way!� -DXS/Daikin

GABLES PARK TOWER // Austin, TX

22

Gables Residential Corporate Citizenship Report 2014


GABLES TANGLEWOOD Houston, TX

SUSTAINABLE COMMUNITY

National Green Building Standards - Silver


MATERIALS RESOURCES • • • • •

&

Recycling bins through out the community Use of eco-friendly cleaning products by on-site team Renewable bamboo floors Construction schedule minimizes soil exposure Indigenous materials used for major elements of the building (concrete, steel, drywall, brick, CMU, stone, insulation)

INDOOR ENVIRONMENTAL QUALITY • • • •

Smoke-free community Controllable lighting Programmable thermostats All unit penetrations are sealed to prevent unwanted contaminants

ENERGY & WATER

• EFFICIENCY • • • • • • • • • • • • • • •

ENERGY STAR qualified appliances Low-E glass Low-flow plumbing fixtures High-efficiency HVAC systems Enhanced foundation waterproofing installed ENERGY STAR cool roof Sealed ducts Insulated floors Windows and doors have complete air barrier NFRC-certified windows Hot water lines insulated to a minimum of R-4 Continuous air barrier between walls and ceiling separating the garage from the conditioned living spaces R-6 HVAC insulation Central water boiler system Solar shades in every apartment home

LANDSCAPING & ENVIRONMENT • •

Rain sensors on irrigation Native or regionally appropriate grass, vegetation, and trees used

TRANSPORTATION • • •

Mixed-use community featuring shops and restaurants on-site/within walking distance Public transportation access Pedestrian activity promoted

24

Gables Residential Corporate Citizenship Report 2014 Gables Residential Corporate Citizenship Report 2014


W e value the trust our investors place with us. We focus on Taking Care of our company ethics and ensuring the highest quality of our practices and procedures at all times. We achieve this by applying effective programs utilized for both our on-site and corporate associates. This quality assurance impacts the success of our daily operations as well as our company’s overall performance.

CODE OF CONDUCT & ETHICS POLICY Gables’ reputation and continued success is dependent upon the conduct of our associates. Each associate, as a custodian of Gables’ good name, has a personal responsibility to ensure that his or her conduct protects and promotes both the letter of the Code and its spirit of ethical conduct. Adherence to these ethical principles is fundamental to Gables’ future success.

Taking Care of Our Investors

Gables has an ethics hotline and website called EthicsPoint where associates feel safe to call or log on anonymously and confidentially to report activities involving potential violations or questions regarding the Gables Residential’s Code of Ethics.

AUDITS Internal Audit is an independent and objective assurance and consulting activity that is guided by a philosophy of adding value to improve the operations of Gables and our associated businesses. It assists us in accomplishing our objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of our organization’s control and governance processes. Gables designates an auditor for each major region, and all owned and third-party communities are audited every 12 - 18 months to ensure we continue to exceed standards. Collectively, our Internal Audit department collectively has 44 years of experience with Gables.

REPORTING Gables offers both standard and custom report options to investors, joint venture partners and third-party clients. We report financial information to our investors in accordance with Generally Accepted Accounting Principles (GAAP) as well as on a fair value basis, in accordance with the Company’s valuation policy. Upon request, Gables also reports information to investors in accordance with European Association for Investors in Non-Listed Real Estate Vehicles (INREV) standards. In addition to our standard reporting package, we also report various operational metrics in accordance with industry standards. A representative (but not exhaustive) listing of reporting provided by Gables includes the following: Financial Statements Budgeting and Forecast Reporting Occupancy and Leasing Metrics Financing Metrics (e.g. weighted average interest rate and debt maturity dates) Valuation Metrics (e.g. appraised cap rates for the properties) Marketing Analytics Web Analytics Construction and Development Progress Reporting


SINCE 2000, GABLES ASSOCIATES & VENDORS HAVE CONTRIBUTED OVER

117,000

HOURS OF COMMUNITY SERVICE & OVER

$1,123,000 IN GOODS & SERVICES.

2014 GABLES DAY

CONTRIBUTIONS

Rockville Volunteer Fire Department // Metropolitan DC Covenant House // Atlanta Independence Heights // Houston People Helping People // Dallas

TPeopleakingLiveCare速 starts of the Way at our

communities and extends from there. Our efforts expand beyond the broader neighborhoods where we live, work and play. Gables has always valued the symbiotic relationship that develops through our commitment to community service which is strengthened annually thanks to our Gables Day efforts. Our support of our Veterans, Earth Day and other causes binds us to our communities and our associates, while creating lifelong alliances with our vendors, investors, residents and the general public.

Guadalupe Neighborhood Development // Austin HomeSafe // South Florida Safe House // North Florida Chicanos Por La Causa // Arizona San Diego Rescue Mission // San Diego Friends of Indian River // Virginia Beach Bellport Head Start // New York Food Lifeline Shoreline WA // Seattle

26

Taking Care of the Community

Each year on Gables Day, every associate company-wide puts aside their normal daily work activities to volunteer in their region.

Gables Residential Corporate Citizenship Report 2014


Gprofessionalism ables and our associates have consistently been recognized for performance and in the multi-family industry. 2014 was yet another incredible year full of accolades. It’s quite rewarding and humbling to be recognized industry-wide for Taking Care of business the Gables way.

2014 GABLES AWARD HIGHLIGHTS Property Management Company of the Year - National Association of Home Builders (NAHB) Property Management Company of the Year - Multi-Housing News (MHN) Development Company of the Year - Silver - Multi-Housing News (MHN) Best Marketing Program - Gold - Multi-Housing News (MHN) BEST Winner 2014 - American Society for Training & Development (ASTD) The Best and Brightest Companies to Work For™ - Atlanta & Houston Home Innovation NGBS Green Partners of Excellence - National Green Building Standards Outstanding Training Initiative Award - Gables Leadership Institute - Training Top 125

Taking Care of Business

#19 in Training Top 125 Corporate Housing Provider of the Year - Forum for Expatriate Management


#unifiesGablesProud is more than just a trending hashtag on Twitter. Our Gables Pride us as a company and acts as a mode to contribute to the conversation of how

we provide unprecedented experiences for both our associates and residents. We are also “#GablesProud” of being exceptional corporate citizens, whether it be through our Gables Day efforts or our everyday operations as a company. #GablesProud acts as a constant reminder of our company mission, Taking Care of the Way People Live.

“Gables is special to me because they are unique in how they make employees proud to say they work there. From day one they go into training and it’s a continuous lifelong process from there; they give you the feeling of one big family.”

“I feel I am treated like a valuable individual and given a generous amount of appreciation for my hard work. I also feel a sense of accomplishment daily from the tasks that I am given and the challenges that I overcome.”

“I love working for Gables Residential and living our motto “Taking Care of the Way People Live”. I can’t wait to grow within the company and advance in my career.” 28

#GablesProud

“I am proud to work for Gables and appreciate the company taking the time to survey how the associates feel during their tenure within the organization. I know that our feedback truly matters.”

Gables Residential Corporate Citizenship Report 2014


CORPORATE OFFICES Atlanta Corporate Headquarters 3399 Peachtree Road NE Suite 600 Atlanta, GA 30326 404.923.5500 Boca Raton 225 NE Mizner Blvd. Suite 400 Boca Raton, FL 33432 561.997.9700 Houston 5847 San Felipe Suite 3250 Houston, TX 77057 713.784.4144 Dallas 3811 Turtle Creek Blvd. Suite 1500 Dallas, TX 75219 214.252.2600 Austin 6850 Austin Center Blvd. Suite 200 Austin, TX 78731 512.502.6000 Washington, DC 8300 Greensboro Drive Suite 650 McLean, VA 22102 703.918.2500 San Diego 9909 Mira Mesa Blvd. Suite 350 San Diego, CA 92131 858.684.3600 /GablesResidential @gables gables_res blog.gables.com gablesliving GABLES.COM

GABLES RIVER OAKS // Houston, TX


Gables Residential Corporate Citizenship Report 2014