Gables Corporate Citizenship Report 2021 by Gables Residential

2 02 1 REP OR T

CORPORATE CITIZENSHI

CONTENTS 3

Contents

INTRODUCTION

Letter From CEO

Company Profile

ESG Organizational Structure

Gables Diversity

ESG Performance Highlights

ESG Accolades & Awards

Building Certifications

16 SOCIAL

COVER PHOTO

Engaging Our Associates

Diversity, Equity & Inclusion

Celebrating & Connecting with Our Associates

Health, Benefits & Personal Development

Offering Growth Opportunities for Associates

Engaging Our Residents

Building Community by Giving Back

Providing Industry Leadership

36 ENVIRONMENTAL

Gables Seaport, in Boston’s Seaport neighborhood, introduced a vibrant art installation on newly constructed stairs that connect Congress Street to World Trade Center Avenue. The three-story stair wrap, the first of its kind in Boston, was designed in partnership with Artists For Humanity (AFH), a local nonprofit dedicated to providing under-resourced teens the keys to self-sufficiency through paid employment in art and design.

Our Sustainability Strategy

Sustainability & Resilience Policies & procedures

Environmental Performance

Environmental Initiatives

Certified Communities

60 GOVERNANCE

Inspired by exploration and creativity, Gables Seaport and AFH transformed a previously dull pathway into a vibrant thoroughfare that enhances connectivity from Congress Street to the South Boston Waterfront Transportation Center (SBWTC), MBTA Silver Line and Summer Street, and throughout the Seaport neighborhood. The Seaport, home to prime retail, restaurants and waterfront parks, now has another public art attraction that complements the existing whimsical pieces that are closer to Seaport Common.

Governance Policies

Advancing with Strong Sustainability Partnerships

Sustainable Development Goals

Governance Risk Management

70 REPORTING & DISCLOSURE

Gables Seaport is located at 501 Congress Street in Boston. The installation process is available for viewing on Gables Seaport’s Instagram: @gablesseaport

Data & Reporting Methodology

Environmental Data Assurance

About TCFD & TCFD Index

About GRI & GRI Index

GRESB Reporting

GABLES SEAPORT | BOSTON, MA 2

INTRODUCTION 4

GABLES POINTE 14 | ARLINGTON, VA

ABOUT THIS REPORT The Gables 2021 Corporate Citizenship Report conveys Environmental, Social and Governance (ESG) information and reflects Gables’ deep commitment to incorporating ESG principles and our core values into all that we do. This information is material to Gables’ stakeholder groups, including investors, residents, associates, partners and communities. As applicable, this report contains data and information from January 1 to December 31, 2021. 5

LETTER FROM CEO Preparing our annual Corporate Citizenship Report provides me with an opportunity to

For our other 2030 goals, water usage

review the hard work and many accomplishments of our outstanding team of associates

is down in comparison to our base year,

over the past year. The post-pandemic “Great Resignation” caused shifts in our staffing and

providing a good start on meeting our

made hiring new associates more difficult. The Gables team stepped up to make sure all

target. Water usage audits were performed

our important responsibilities of taking care of residents, communities and each other were

at 87% of our communities at the end of

fulfilled under these challenging circumstances. I am grateful to be working with such a

the year, helping us identify areas to target

dedicated and enthusiastic group of associates, and I appreciate all that they do on behalf

for future savings. We made substantial

of Gables for our residents.

progress on our waste diversion efforts, and we continue to explore additional

In 2021, the multifamily business began moving towards a new normal. From a period

ways to encourage resident recycling

of great uncertainty in 2020 and the early months of 2021, our business went into an

participation. Last year, we diverted the

unexpected phase of rapid growth with high demand for apartment homes that continued

vast majority of construction waste.

into 2022. Our associates were focused on helping many residents settle into their new homes.

We want our residents and greater communities to be aware of Gables’

Gables was also busier than ever with work on our Environmental, Social and Governance

ongoing sustainability commitment. As

(ESG) activities in 2021. For many years, Gables has focused on being an industry leader

such, we seek green building certifications

in ESG. We made 2021 a year of “execution” by committing more time and financial

for our new developments and stabilized

resources to our many ESG initiatives, both new and ongoing. We increased our efforts to

communities. In 2021, we achieved

ensure that ESG is not just a corporate focus but is embedded into the everyday work of all

Certified Sustainable Property recognition

our associates. I am excited to have you learn about our actions throughout this report. Supporting diversity, equity and inclusion (DEI) principles is a cornerstone of Gables’ emphasis on the Social aspects of our culture. Last year, we strengthened our commitments in this area by setting four concrete, measurable goals that will inform

from IREM ® on 43% of our stabilized communities and earned 3 new prestigious certifications on our new developments. We also received ENERGY STAR ® certifications on 25% of our portfolio.

our DEI actions in the coming years. These include increasing diversity throughout our

I am proud to announce that Gables has committed to the ULI® Greenprint “Net Zero by

workforce, removing any systemic inequities, promoting an inclusive culture and ramping

2050” goal. We will be diligently working on planning for how to reach this ambitious

up focus on supplier diversity. We established a DEI Council that represents the diversity

target over the next several years.

within the company to ensure that our DEI initiatives become part of our everyday operations. We also embarked on a new training program for all associates that fosters communication and understanding of different backgrounds and life experiences.

Gables will continue our focus on ESG activities in 2022 and future years, with the intention of being a good corporate citizen at all times. We have a number of exciting and impactful initiatives underway and planned and look forward to sharing with you the

In 2021, Gables also made significant progress towards our 2030 Environmental goals, with

results of these undertakings in future reports.

efforts from our Sustainability Advisory Council subcommittees. We focused on improving our Energy profile. We continued to invest in lighting retrofit projects, completing projects at seven communities in 2021 with a forecasted 10% savings in community energy use at those projects. The lighting retrofit projects we have installed over the last few years are having a positive, cumulative impact on our common area energy consumption. Energy

SUSAN M. ANSEL President and Chief Executive Officer

audits were completed at 30% of our communities, and results have allowed us to identify areas where we can reduce energy use. We also invested many hours of work on ways to use Renewable Energy throughout our portfolio, from the use of Renewable Energy Credits (RECs) to renewable energy retrofits. We have plans to install solar panels at several communities in 2022 and continue to research many other potential solar projects.

COMPANY PROFILE

Gables uses four core values as cornerstones for how we operate our

Gables Residential is a privately held, vertically integrated real estate company specializing in multifamily and mixed-use community development, construction, ownership, acquisition, financing and management. Established in 1982, we manage approximately 25,000 apartment homes and 206,000 square feet of retail space in high-growth markets throughout the United States and have third-party management operations in several additional markets. Our investors include major domestic and international pension fund investors. We pride ourselves on providing convenient locations, excellent apartment home finishes, best-in-class amenities and extraordinary service. Gables’ residents value a state-of-the-art lifestyle where they can be close to employment centers, shopping outlets, entertainment venues and public transportation.

business: · 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 communities Gables’ dedication to providing exceptional service for our residents,

TOTAL PORTFOLIO GEOGRAPHIC DIVERSIFICATION*

associates and communities resonates throughout all that we do. Alongside ongoing efforts to enhance our ESG program, our commitment to excellence ensures we deliver on our mission of

Taking Care of the Way You Live.

ATLANTA

DALLAS

AUSTIN

17%

12%

10%

SOUTH FLORIDA

DENVER

HOUSTON

15%

11%

WASHINGTON, D.C.

BOSTON

SOUTHERN CALIFORNIA

12%

11%

*Percentages are based on Gross Real Estate Value with unconsolidated JVs weighted at share, as of December 31, 2021.

GABLES RESIDENCES | DENVER, CO 9

ESG ORGANIZATIONAL STRUCTURE

GABLES DIVERSITY

Embedding ESG principles into the fabric of Gables’ organization strengthens our ability to execute our mission and embody our core values. At Gables, improving the environment, enhancing social well-being and personifying ethical and transparent governance are the responsibility of every associate. The chart below gives a high-level depiction of how Gables structures and manages ESG programs throughout our organization.

Building diverse associate and executive teams improves our ability to deliver on Gables’ core values. Gables is proud to be an equal opportunity employer. The graphs below reflect our emphasis on diversity.

Clarion Partners ESG Committee

Board of Directors

Race Race & & Ethnicity Ethnicity

Generation Generation

42% White 42% 30% White Hispanic or Latino

CEO/President

30% Hispanic or Latino 21% Black or African American 21% Black or African American 3% Asian 3% Asianor More Races 2% Two 2% Other/Unspecified Two or More Races 2%

ENVIRONMENTAL

SOCIAL

GOVERNANCE

2% LessOther/Unspecified than 1% American Indian or Alaskan Native

42% Generation X 42% Millennials Generation X 37% 37% Millennials 15% Baby Boomers 15%Gen Baby 5% Z Boomers 5% Gen Z 1% Other/Unspecified 1% Other/Unspecified

Less than than 1% 1% Native American Indian or or Other Alaskan Native Less Hawaiian Pacific Islander

Director of Sustainability

Sustainability Advisory Council

DEI Council

Engagement & Communication

Human Resources

CEO

Procurement

CFO/Compliance Officer Hiring & Promotion Strategy

Supplier Diversity

Senior Operating Committee

Leadership & Associate Development

Gender Gender

Subcommittees

Sustainability Culture Energy Management Water Conservation Materials Management Renewable Energy New Development

Less than 1% Native Hawaiian or Other Pacific Islander

Internal Audit

Gables Residential Corporate Officers

56% Male 56% 43% Male Female 43% Female 1% Other/Unspecified

Gables Gables Executive Executive Group Group

75% Female 75% 25% Female Male 25% Male

1% Other/Unspecified 10

ESG PERFORMANCE HIGHLIGHTS

ESG ACCOLADES & AWARDS

Gables is intentional when incorporating our ESG mindset throughout the entire fabric of our organization,

Community Awards

transforming ESG performance from a corporate agenda to a core identity. Everyone at Gables, from the CEO to community team members, is responsible for upholding and embedding our ESG goals into their work

TOP RATED PROPERTIES

processes. This holistic embrace of ESG principles fuels our continued success.

2021 ApartmentRatings Top Rated Awards

From the recognition of our industry peers to the progress toward our environmental performance goals and the

Gables Post Oak

many certifications earned by our communities, the results are clear: when we work toward ESG together, our

Houston TX

sustainability performance is enhanced.

Gables Residences Denver CO

Gables River Oaks Houston TX

BEST ONLINE REPUTATION IN THE NATION TOP 1%

BEST DEVELOPMENT & DESIGN: MID-RISE

Presented by J Turner Research in 2021

2021 Multi-Housing News Excellence Award

Gables Vista Denver CO

Shadetree Ruskin FL

The Union at River East

Gables Vinings Village Atlanta GA (GOLD)

PROJECT OF THE YEAR

Fort Worth TX

Presented in Conjunction with Douglas Elliman Development Marketing in 2020

Ora

Crimson

Gables Turtle Creek Cityplace

Washington D.C.

Houston TX

Dallas TX

The Elizabeth at Presidio

PROPERTY OF THE YEAR

Gables University Station Westwood MA

M5250

Austin TX

Gables Residences at Cherry Creek Denver CO

Houston TX

West Port Colony Saint Petersburg FL

BEST WEBSITE 2021 Multi-Housing News® Excellence Award

Crimson Houston TX (GOLD)

BEST INTERIOR MERCHANDISING OF A LEASING OR SALES CENTER 2021 NAHB® Multifamily Pillars of the Industry

Crimson

2021 Apartment Association of Greater Dallas Sapphire Awards

Gables McKinney Ave Dallas TX

BEST APARTMENTS 2021 Best of Plano Award

Mission Gate Plano TX

Houston TX

BEST INTERIOR DESIGN 2021 Multi-Housing News Excellence Award

Gables Vinings Village Atlanta GA (GOLD)

Gables Residential Corporate Awards 2021 TRAINING MAGAZINE TOP 125

Awarded by Training Magazine® 2021 BEST PLACES TO WORK

Awarded by the National Apartment Association®

CRIMSON | HOUSTON, TX 12

2021 BEST PLACES TO WORK

Awarded by Multifamily Leadership

2021 PULSE OF THE CITY NEWS AWARD FOR EXCELLENCE IN CUSTOMER SERVICE

Awarded to Gables Residential, Atlanta GA

2021 WORKPLACE WELL-BEING SILVER AWARD

Awarded by Aetna®

2021 SAPPHIRE AWARDS, APARTMENT ASSOCIATION OF GREATER DALLAS

Executive of the Year, Donna Summers 13

BUILDING CERTIFICATIONS 2021 was a busy year for our certifications program, earning 39 certifications and ratings. Gables began certifying most new developments in 2007 and made a commitment to certify all new developments in 2015.

100%

New Developments Certified since 2015

68%

Communities Certified with New Development and Operational Certifications*

50%

Communities with Operational Certifications**

25%

ENERGY STAR Certified Communities

76 certifications and ratings earned to date.

For a full list of certifications by community, please see the Environmental Section on page 56. *Austin Energy Green Building®, Earthcraft Multifamily®, Florida Green Building Coalition®, LEED® Building Design and Construction, LEED® for Homes, and National Green Building Standard®

**Fitwel® and IREM® Certified Sustainable Property

GABLES RESIDENCES | DENVER, CO 15

SOCIAL 16

Serving Residents & Associates

From our residents and vendors to our associates and partners, we work hard to take care of our people. To continue our legacy of positive community impact, we are constantly seeking opportunities to improve and enrich the lives of those we serve. 17

ENGAGING OUR ASSOCIATES

Gables associates are integral to fulfilling our mission of Taking Care of the Way You Live. They are the backbone of our customer service and are instrumental in creating a welcoming atmosphere at our communities. Gables takes active efforts to ensure our associates can lead healthy, well-rounded lives.

DIVERSITY, EQUITY & INCLUSION At Gables, we provide more than a place for our associates to work and buildings where our residents live – we create an environment where all feel empowered to contribute towards a community that is vibrant, fair and thriving. Creating this strong sense of community requires an ongoing commitment to strengthen our DEI principles. DEI is a cornerstone of Gables’ company culture, enabling us to develop a dynamic and diverse workforce capable of offering solutions, exceeding expectations and driving growth.

What Does DEI Mean at Gables? DIVERSITY · A workforce and leadership team that is representative of our society and the communities we serve. · Multiple dimensions of identity represented in the workplace to ensure diversity of thought.

EQUITY · Removing biases from systems, policies and programs and implementing equitable leadership practices that enable diversity to thrive and diverse people to be hired and retained. · Equal access to people, information, resources and learning that empowers growth, personal and professional advancement. · Equal opportunities to have a voice in decisions that impact Gables being a great place to work, live and invest.

INCLUSION & BELONGING · Associates feel welcome, appreciated, supported and valued. · Differences are welcomed and embraced, and associates have a dignified work experience. · Associates demonstrate compassion and respect toward each other and residents.

S O C I A L F E AT U R E

DEI IN ACTION Gables took significant strides in 2021 to advance our DEI program with a comprehensive, measurable, long-term approach.

Social Goals & Strategic Framework Our four concrete goals, each supported by measurable initiatives, ensure meaningful incorporation of DEI into Gables’ corporate culture:

GOALS

INITIATIVES

Increase diversity of Gables workforce and leadership team to be more reflective

Diversify corporate leadership and management positions

of racial and ethnic diversity in the US population

held by individuals from underrepresented groups.

as well as in the communities we serve.

Restructure hiring and promotion processes Remove potential systemic inequities from

to mitigate unconscious biases and enhance

programs, policies and practices.

participation across all gender and racial/ethnic groups in learning and growth programs.

Improve cultural understanding and social Promote and nurture a culture of inclusion and belonging.

awareness by celebrating diversity, requiring participation in socially constructive workshops and providing tools to help associates navigate workplace insensitivities.

Implement a supplier diversity program that Address supplier diversity.

steadily increases the percentage of procurement expenditures awarded to businesses owned

Gables’ DEI Strategic Roadmap The strategic roadmap Gables created to guide DEI implementation outlines a 10-year plan for DEI expansion and focuses on six impact areas in which to implement our four social goals.

by underrepresented groups.

· Hiring & Promotions Strategy

· Marketing & Communications

Diversity is a fact. Equity is a choice.

· Leadership & Associate Development

· Supplier Diversity

Inclusion is an action. Belonging is an outcome.

· Data & Business Intelligence

· DEI Council & Associate Resource Groups

- Arthur Chan 20

Represented, the Gables DEI Council

Inclusion & Opportunity

The 2021 launch of Represented, our DEI Council organization, marked a major milestone in our DEI

We are diligently improving practices to create a diverse workforce and leadership team that is representative of

program. The Council’s 14 associates reflect the diversity of Gables’ workforce and organizational structure.

our society and communities. These efforts align with our first and second Social Goals, which aim to increase the

Represented works to implement the goals and strategies of our DEI roadmap, and the Council has formed

diversity of our workforce and leadership and eliminate any potential systemic bias in our programs and policies.

three subcommittees to expand focus on outreach, talent and marketing. The subcommittees undertake projects such as connection events, stakeholder outreach, design improvement and branding development.

Our active efforts include examining and adjusting the application, onboarding and associate advancement

Co-chairs and executive sponsors serve as liaisons between the Council and senior management to ensure

processes. To start, we have expanded our interview process to gain a more comprehensive understanding of a

that the DEI initiatives become embedded into our corporate culture.

candidate apart from their education and industry-specific work experience. Interviewers also receive training on how to look past their unconscious biases when assessing candidates. In addition, we are revising how new hires are introduced to Gables’ policies, practices and corporate culture. Lastly, we have embedded the topic of ‘diversity’ into our career development training for both aspiring managers and current management. To ensure these adjustments lead to a more diverse workforce and leadership team, we are gathering additional information during both the hiring process and the management training application process. This data helps

DEI COUNCIL MISSION

OUR STRATEGIC PILLARS

To nurture a culture of belonging, care and mutual respect for the diversity of our associates and customers while achieving equity in our business practices.

Celebrate diversity and embrace differences with curiosity

DEI COUNCIL VISION

Access resources and support needed to achieve success while making

An inspired and supportive workplace for everyone.

us track progress toward our diversity goals and ensure that Gables upholds a diverse, equitable and inclusive workplace for all.

Workforce (Diversity) and compassion.

Workplace (Equity) positive contributions to Gables and the communities we serve.

Urban Alliance Urban Alliance connects high school students to equitable, inclusive careers through paid work experiences, mentorship and professional development. Urban Alliance works with schools and employers to address systemic barriers to economic mobility for young adults of color and to bridge

Community (Inclusion)

the gaps between education and workforce development.

Understand that all dimensions of diversity, visible and invisible, are essential and empower a sense of belonging.

In 2021, Gables Residential began a partnership with Urban Alliance. Through this partnership, Gables provides work opportunities for high school students in the Metro DC area on site at our apartment communities in sales/leasing. The students complete training supported by the National Association of Apartments Education Institute (NAAEI) Certified Apartment Leasing Professional (CALP) curriculum before working on site a few hours a day, several days a week during spring semester, followed by full time work during summer break. At the end of the internship opportunity, the student can earn full time employment with Gables.

Shelters to Shutters® The 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. Gables hired two new Shelters to Shutters associates in Atlanta in 2021.

S P OT L I G H T

DIVERSITY EDUCATION

GABLES HONORS & AUTHENTIC AUTHORS

Gables associates participated in an immersive training that addressed topics of unconscious bias and sensitivity. Completing the training helped Gables associates understand and accept that all people perceive life through their own personal lens, which impacts the way individuals understand, appreciate and interact with societal systems and in social situations. Realizing this helps Gables and our associates approach adversity with humility, empathy and respect. Attendees noted that,

“… listening to others speak of their feelings and experiences makes a huge difference, offering the reminder that,

we are all human and all have the same basic need for respect and acceptance.”

Gables Honors, our thematic approach to communicating monthly DEI topics with our internal team, allows us to weave real world narratives into the programs and information we share. Themes may relate to the current heritage month celebration, such as Black History Month or National Hispanic Heritage Month, or they may draw from other sources that promote cultural diversity and understanding. Our continued focus on DEI sparked the launching of Authentic Authors, a storytelling series granting associates the opportunity to share about their heritage as they represent a different culture, different walk of life or other orientation. Embracing a storytelling opportunity allows our associates to showcase any aspect of their life, personal or professional, and share with fellow associates how their background, history or lifestyle preference has been significant in shaping who they are today. Associates can also choose to share highlights of their culture and traditions, offering their fellow associates insights into distinct cultures around the world.

CELEBRATING & CONNECTING WITH OUR ASSOCIATES

Associate Satisfaction Surveys 0 15

To ensure our associates feel valued, respected and impactful in their work lives, Gables promotes frequent communication opportunities with associates, offering them the chance to develop deeper connections,

voice their opinions and take an active role in our company culture.

Ovations

Our strategy includes sending out semi-annual associate satisfaction

Our Gables associates deserve recognition and reward for being some of the most dedicated and talented personnel in the business. To acknowledge their contributions, we have developed Gables Ovations, a social-media-style platform that allows peers and supervisors to recognize colleagues for a job well done. This recognition also translates to Ovation points that can be used toward gifts, vacation days and other rewards.

surveys that allow associates to share their perspective and provide

Net Promoter Score

suggestions. In 2021, Gables conducted a survey amongst associates to determine our Net Promoter Score (NPS), a metric that evaluates how willing associates are to recommend Gables to a friend or colleague. On a scale from –100 to 100, Gables’ NPS of 52 reflects our associates’

-100

100

overall satisfaction with Gables as a place to work and live.

Friday Features Recognizing the momentum built from sharing positivity, our corporate team sends a monthly email to all associates that highlights the outstanding interactions between our community teams and residents, such as exceptional customer service or collaborative problem solving. These announcements serve to recognize excellent individual performance and to further instill passion and commitment into all Gables associates. Here is what some of our residents are saying about our associates:

-40.0

40.0

58.2 Net Promoter Score

-100.0

I have lived at a lot of communities, and Tiffany Smith is

I think anyone looking for an apartment should look

by far one of the best managers that I have ever seen.

at this property knowing that behind its excellent

She puts a great face and work ethic to the Gables

appearance is a management team, April Ralph, and a

name. She definitely “takes care of the way you live”

maintenance staff, Joey Saint Surin, that makes sure it

here at Republic Tower.

stays that way. Jason B.

Dennis T.

Republic Tower,

Gables Montecito,

Dallas, Texas

Palm Beach Gardens, Florida

I am writing to express my appreciation to Gables Ponce

I would like to commend Joey Sokolowski for his

Leasing Manager Belma Mejia for her truly outstanding

professionalism, responsiveness and excellent customer

customer service, professionalism, courtesy and

service. He has been incredibly responsive and has

responsiveness to Gables Ponce residents’ requests.

handled all of my probing questions and frustrations like

Ivette R.

100.0

a champion. Not an easy task.

Gables Ponce,

Cynthia G.

Coral Gables, Florida

Gables Cherry Creek, Denver, Colorado

HEALTH, BENEFITS & PERSONAL DEVELOPMENT

Benefits Gables’ benefits package aims to nurture the physical, mental and financial health of our associates and their families. Associates can receive comprehensive health, dental and vision coverage as well as 24/7 access to telehealth physicians and our employee assistance program. To promote associates’ financial success, Gables provides an employer-matched 401(k) plan, life insurance, and short- and long-term disability benefits.

OFFERING GROWTH OPPORTUNITIES FOR ASSOCIATES Investing in our associates is an investment in the future of Gables. Associates receive mentorship and leadership training as well as continuing education opportunities. By offering associates the opportunity to grow personally and professionally, Gables hopes to inspire our associates to continue improving themselves and their performance impact on the company.

Mentorship & Leadership Training Associates of all experience levels have access to training opportunities that help them strengthen core competencies and advance their careers. Newer Gables associates can work with Success Coaches, and junior associates can pair up with senior associates for peer-to-peer support and guidance. Associates

Gables Fit4Funds

looking to advance to management level positions

In creating a thriving community for all, Gables encourages

where they will learn management principles and

our associates to maintain a healthy and active lifestyle. All

develop strategic thinking skills in a five-month series

associates have free access to our communities’ fitness centers,

of in-person trainings facilitated by our Training &

and to help them keep on track, we provide associates with full

Development team. For high-performing managers

access to our Fit4Funds wellness program. The digital program

seeking senior leadership roles, we offer the Gables

contains abundant tools and resources on fitness, nutrition

Leadership Institute (GLI) to further elevate their

and mindfulness, and it pairs with a provided fitness tracker

management skills and prepare them for roles with

to help associates gauge their progress. Gables communities

increased responsibility.

are encouraged to apply to our Leadership Program,

also host annual Fit4Funds Wellness Fairs where associates can receive free flu shots and biometric screenings as well as attend other interactive presentations focused on health and wellbeing. Associates who participate in Fit4Funds programs earn incentives through our rewards and recognition

Education Benefits

program, Ovations.

Gables’ benefits package includes several opportunities for associates to pursue supplemental education to enhance their job performance and advance their careers. First, in-house training

Work-Life Balance

is available for all Gables associates striving to

The atmosphere at Gables fosters opportunities for our

of employment, associates are eligible for a $1,000

associates to experience personal development. This includes

reimbursement to cover tuition for third-party courses

encouragement and support to maintain a healthy work-life

related to the associate’s role. Further, associates and

balance. Associates receive paid holidays, sick and personal days,

their children can apply for the Gables Forever Great

and numerous vacation days that increase with each five years of

Scholarship Program, which offers grants toward

employment. Once associates reach ten years with Gables, they

continuing education or tuition for an undergraduate

are rewarded with a six-week paid sabbatical as a genuine

or vocational degree program.

improve within their current position. After a year

‘thank-you’ for their service. 28

ENGAGING OUR RESIDENTS

0 15

Recognizing that it is the residents who bring our communities to life, Gables strives to create an atmosphere where all residents feel welcome and valued.

We are always pleased when our residents share their thoughts about living in a Gables community. These are a few of the notes we have received:

Community Events

Net Promoter Score

Adapting to various logistical challenges in response to COVID-19, Gables offered a blend of in-person and virtual events to engage our communities’ residents in 2021. Community events varied by location and included the

Excellent property! I love my place. The grounds are well-maintained. Very convenient to everything. Extremely safe. Craig Franklin is one of the best leasing

-100 Breakfast 100 following notable activities: happy-hour style gathering for Wine Down Wednesday; pool parties; on

staff members I’ve ever experienced. Super helpful and

the Go; Saturday Brunch; Taco Tuesday; Superbowl watch parties; a celebration of National Peach Cobbler Day,

extremely professional. Always there to assist. Love this

complete with mini peach cobblers; and a virtual Bingo night.

place. Highly recommend! Zeka A.

Resident Satisfaction Serving our residents is of the utmost importance for us at Gables. To gain insight into our performance, Gables conducts ongoing resident satisfaction surveys to gauge the quality of our customer service, amenities and overall living experience. This has become increasingly important as COVID-19 led to residents spending more time at home. In 2021, our Net Promoter Score – a metric on a -100 to 100 scale that evaluates residents’ willingness to recommend Gables to friends or

Gables Vinings Village, -40.0

58.2 Net Promoter Score

I have lived here for two years now, and it is a great place to call home! Vanessa Salvatierra at the leasing office has been extremely accommodating and is nothing but nice. Maintenance issues are always

colleagues – increased from 55.1 to 58.2, reflecting Gables’ strong performance and ongoing dedication to improving our service.

Atlanta, Georgia

40.0

addressed in a timely manner and the building is very -100.0

100.0

GABLES TANGLEWOOD | HOUSTON, TX

well kept up. I couldn’t ask for a better location and a newly renovated apartment. Alex L. Mizner Park, Boca Raton, Florida

Hey y’all! I never leave reviews on things on here, but I just had to leave one about this property! I am new to Austin and after looking around awhile I settled on this property to make my home. The grounds are so beautiful, especially the pool and trails!! The office staff have been so super nice and helpful, especially Ms.

I was looking for an apartment in Speer and Gables made it very easy to decide to move into. The units are

Tammy Husband! I have made so many friends here and can see myself staying here for a very long time!!

wonderful and the staff is excellent. I have never felt so

Kelly B.

sure of an apartment building before. Dave Kiser was

Gables at the Terrace,

extremely helpful before, during and after my move. It’s

Austin, Texas

very comforting to know that the friendly team is just a few floors away. Yeung M. Gables Speer Blvd., Denver, Colorado

I just moved in and I already feel like I’m home! Shana Buswell-Charkow and everyone at the front office is amazing! It’s quiet and relaxing and a perfect home oasis that’s close to everything!! Ashlea W. West Port Colony

BUILDING COMMUNITY BY GIVING BACK Our traditional, valued Gables Day, an annual organization-wide day of service, was postponed again in 2021 due to COVID-19. In place of Gables Day, we provided associates with eight hours of paid volunteer time with which to give back to the community in a personally meaningful way. Their helpful impact reminds us of the pivotal human element that goes into serving our residents, communities and one another.

· Stevi Bennett, Julia Small, Jennifer Morgan, Jennifer Hill, Asha Patel and Tiffany Roland from our Dallas corporate office, as well as a team of associates from Curve 6100 in Alexandria, VA, contributed from their respective cities toward The Salvation Army Angel Giving Tree ® program by sorting and organizing donated toys to assist in fulfilling children’s and seniors’ “need, want and wish” lists. · April Ralph, Assistant Community Manager at Gables Montecito, regularly spends time giving back to her community by working at the Palm Beach County Food Bank, an organization that has become very dear to her heart. · In October, associates from the Washington D.C. corporate office put together 800 toiletry bags for Bread for the City, a homeless shelter in the D.C. area.

A Barking Good Time Many of our residents feel that a place is not a home without a pet. Wanting everyone to feel at home in our communities, Gables ensures that all our communities accommodate pets and promote healthy pet-owner relationships. Our Paws to Care program celebrates our residents’ furry, winged, scaly or finned friends with location-specific, pet-friendly features and services, such as dog parks, dog spas, discounted Nationwide pet insurance and pet-centered events, contests and giveaways.

Recognizing Resident Loyalty Our Captivate loyalty program promotes a sense of community by awarding residents with points for activity involvement, such as sharing photos, providing feedback and participating in contests. Residents can use their points in exchange for useful products and services like Nike or Target gift cards, deliveries with Shipt or dog walks through Wag!

PROVIDING INDUSTRY LEADERSHIP Making the changes necessary to meet the challenges of a changing business climate takes cooperation and collaboration. Gables’ management team is pleased to share best practices, contribute to our collective knowledge base and demonstrate industry leadership by participating in industry-related boards and working groups.

2021 Industry Leadership SUSAN ANSEL

DAWN SEVERT

President and Chief Executive Officer

Executive Vice President and Chief Financial Officer

· Harvard Joint Center for Housing Studies Policy Advisory Board, Member

· National Multifamily Housing Council, Immediate Past Chairwoman and Executive Committee Member

· National Multifamily Housing Council, Investments Committee Chair and Executive Committee Member

GIGI GIANNONI Senior Vice President, Customer Experience & Marketing

· National Multifamily Housing Council, OpTech Conference Planning Committee Co-Chair · Multifamily Executive ®, Women of Influence Group Member · Multifamily Innovation® Conference, Advisory Board Member · Apartment Innovation & Marketing (AIM), Advisory Board Member

WILL GOSNELL Vice President, Internal Audit and Compliance

MATTHEW BEARDEN Senior Vice President, Construction

· Built National, Board Member · National Multifamily Housing Council, Design and Construction Committee Chair

JAMES HAMRICK Vice President, Technology

· National Multifamily Housing Council, OpTech Conference Planning Committee Member · National Multifamily Housing Council, Enterprise Technology & Business Intelligence Committee Chair · Real Estate Technology Ventures, Gables Representative

· National Apartment Association®, Affordable Housing Committee Member

· Georgia CIO, Member

· Institute of Internal Auditors® - Atlanta Board of Governors, Chief Audit Executive Roundtable Member

JENNIFER WIEBRAND

· Institute of Internal Auditors - North American Board of Directors, Diversity & Inclusion Task Force Member

· Urban Land Institute - Austin Chapter, WLI Steering Committee and Management Committee Member

Regional Vice President, Investments Matthew Bearden

· University of Texas, Real Estate Center Advisory Member · Downtown Austin Alliance, Chair Emeritus and Foundation Board Member

ENVIRONMENTAL 36

CRIMSON | HOUSTON, TX

Demonstrating Environmental Commitment

A healthy, resilient environment contributes to everyone’s well-being. Reducing our environmental footprint and expanding the Environmental aspect of our ESG program are critical priorities for Gables. 37

OUR SUSTAINABILITY STRATEGY To reduce our environmental impact, we have developed a series of ambitious goals, sustainability policies and standard operating procedures (SOPs) that establish accountability and consistency throughout our portfolio.

Environmental Management System As we develop and refine our goals, policies and SOPs, we use an environmental management system (EMS) to keep us focused and on track for success. Our EMS is based on the Plan-Do-Check-Act cycle, also known as the Deming Cycle, and is aligned with ISO-14001. Following this path, we take the following actions:

PLAN · Set Long-term Goals · Develop Initiatives · Fund Projects

1. PLAN

DO · Implement Projects

2. DO

4. AC T

EMS

· Monitor Progress & Report Updates · Collect Stakeholder Feedback

CHECK

3. C H E C K

· Track Metrics · Report via Third Party Assessments · Compare with Peers

ACT · Identify Issues · Take Corrective Actions · Analyze Results

THE ASHLEY GABLES BUCKHEAD | ATLANTA, GA 38

Environmental Risk Management Our strategy for climate-related risk focuses on proactively identifying and managing risk across our portfolio. This work is led primarily by the Sustainability Advisory Council with Board of Director oversight. In 2020, Gables adopted a risk-management strategy that aligns with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), categorizing risk into three types: transition, physical and social. We also engaged a consultant to conduct a high-level assessment of our portfolio’s climate-related risk. This assessment evaluated our portfolio’s known climate-related risks and will be used to inform our ongoing assessment of policies and procedures.

Climate-Related Transition Risk WHAT IS IT?

HOW DOES GABLES ADDRESS IT?

Climate-related business risk that

· Benchmark and annually review energy performance to prioritize capital investment for efficiency projects and support compliance with disclosure laws.

arises as societies and economies transition to become low carbon and climate resilient.

WHAT DOES IT COVER? Policy, legal, technology, market, reputation and the financial impacts of change related to any of these.

· Engage a third-party energy procurement firm to evaluate rates and negotiate long-term competitive rate plans to manage energy market volatility. · Apply for third-party verified green building certifications and energy ratings to provide stakeholders with assurance that Gables communities meet program standards for energy and water efficiency and to support our reputation for environmental stewardship.

Climate-Related Physical Risk WHAT IS IT?

HOW DOES GABLES ADDRESS IT?

Risk to physical assets associated with

· Conduct biannual inspections at each community to identify both readiness and areas needing additional measures.

the acute shocks and chronic stresses caused by a changing climate.

WHAT DOES IT COVER? Risks from hurricanes, storms, flooding, drought and wildfires.

· Budget and plan for flood control features, storm water retention, flood barrier gates, tree trimming, awning removal and re-installation and other storm damage mitigation. · Install drought-tolerant landscaping in new developments to conserve water during periods of water scarcity . · Conduct physical asset reviews to identify and prioritize projects that address building efficiency and occupant comfort. · Tailor the design of communities to ensure they thrive in their specific locations.

Climate-Related Social Risk WHAT IS IT?

HOW DOES GABLES ADDRESS IT?

Risk from climate-related shocks

· Employ cutting-edge cybersecurity techniques.

and stressors that apply to people.

WHAT DOES IT COVER? Cybersecurity, physical security,

GABLES ARSENAL STREET | WATERTOWN, MA 40

public health and social disruption.

· Share operating and reporting procedures to protect the health and well-being of our residents and associates during contagious disease outbreaks. · Ensure clear lines of communication among associates and between associates and residents.

E N V I R O N M E N TA L F E AT U R E

RESILIENCE IN ACTION: 2021 TEXAS WINTER STORM In February 2021, a multi-day winter storm and cold front swept through the country and impacted the entire state of Texas with near-record freezing temperatures. Impacts on power production facilities and transmission lines combined with intense demand for power caused the Energy Reliability Council of Texas (ERCOT) to initiate extensive rolling blackouts to prevent total grid collapse. Loss of power caused ripple effects including lack of heat and frozen water pipes with resulting water damage. The storm became one of the costliest natural disasters in recent memory in the state.

Based on experience from previous natural disasters and other community incidents, Gables stands ready to respond to all incidents with our Emergency Response Teams (ERTs). With advance warning of the coming storm, ERTs at the national, regional and local levels mobilized to prepare for the potential impacts of the freezing weather. Early preparation included coordinated supply disbursement and enhancing our communication channels. These efforts made it possible for our residents and associates to weather the storm while our communities experienced power loss, frozen pipes, water damage and even a fire.

Prior national disasters prepared us to be able to take the following steps: · Mobilize teams from across the country · Call on our national Red Alert disaster recovery company in advance of event · Fuel small temporary and large existing generators for longer periods · Take systems such as building sprinklers off-line to avoid bursting · Access national suppliers in advance and put them on alert · Begin three-prong approach to resident communication: email, text and building announcements · Begin back-up planning including provisioning of food and water, along with temporary accommodations, if needed 42

Gables ERTs and on-site community management teams went into action as soon as the storm hit, assisting residents and protecting our communities to the extent possible given the difficult conditions. Many associates went above and beyond. One service team member in Houston walked two miles each way to and from work in the freezing temperatures in order to keep his community functioning, and two Dallas associates camped out on a rooftop to ensure that heat to the building stayed on. Other Gables associates helped temporarily relocate many Dallasbased residents when conditions prevented them from remaining in their apartments. Our ERTs and local teams remained actively engaged in storm restoration for several months after the storm had passed. Being prepared and responding quickly in challenging circumstances are hallmarks of Gables’ commitment to taking care of our residents and associates as well as to preserving the value of our communities for our investors. 43

SUSTAINABILITY & RESILIENCE POLICIES & PROCEDURES Our sustainability and resilience policies and SOPs are designed to minimize our environmental impact and foster resilience while still enabling Gables to deliver the best service to residents across our portfolio. We regularly review these guiding documents to ensure they evolve along with industry best practices and environmental standards. All policies were updated in 2021 to incorporate our 2030 targets and goals.

Policies & Guides

Biodiversity and Habitat

GHG Management Plan

Building Materials

Green Cleaning

Climate Change Adaptation

Hurricane/Tornado Preparedness

New Development Sustainability Initiatives Refrigerant Management

Cybersecurity

Inclement Weather

Emergency Response Plan

Indoor Air Quality

Resilience — Protecting Asset Value and Preventing Disruption to Business

Energy Management

Integrated Pest Control

Sustainable Procurement

Flu and Similar Contagious Diseases

Maintenance Emergencies

Waste Management

General Safety

Mass Communication

Water Management

 Sustainability

 Resilience

GABLES PARK PLAZA | AUSTIN, TX 44

E N V I R O N M E N TA L F E AT U R E

SUSTAINABILITY, RESILIENCE & COMMUNITY AT GABLES SEAPORT

The City of Boston’s Seaport website describes the neighborhood as “always up on the latest, down to try something new and guaranteed to look good through it all.” When Gables decided to develop a community in this

Designed for resilience, community and sustainable living, Gables Seaport, a 23-story tower with 307 apartment homes and highly sought-after amenities, is a beacon of sustainability in Boston.

Achieving Certification

area, we committed to an equally forward-thinking and aesthetically appealing design. In partnership with The

From the materials selected to the amenities created, the community’s features promote efficiency, minimize waste

Drew Company, a local development company, we set out to create a multifamily site imbued with sustainable

and provide residents with an environment that supports their well-being. This conscious approach ultimately

design features, built to adapt to potential climate change impacts and integrate with the neighborhood’s vibrant

resulted in a LEED Silver designation for the community. Key building highlights include the following items:

culture. We wanted to create a community fit not only for today, but also for Seaport’s promising future. From the project’s beginning, we aimed to exceed Boston’s Article 37 zoning regulation requiring a minimum LEED certification for any projects over 50,000 square feet. In alignment with LEED best practices, we brought a diverse set of key stakeholders together early in the process – including the architect, construction, community management and facilities management – to evaluate the space’s needs from all angles.

SUSTAINABILITY IN CONSTRUCTION · Regional sourcing of materials

Coastal Considerations

· Use of recycled materials in building construction

Located just two blocks from Boston Harbor, the Seaport site is situated in the Seaport District, close to the ocean —

· Diversion of 75% of construction waste from landfill

presenting risks that will likely grow over time as the sea level rises. A key priority for Gables was to ensure the site was designed with resilience to these risks in mind. The community is built on a previously developed infill site, with

SUSTAINABILITY & WELLNESS AMENITIES · Walkability, bikeability and proximity to public transportation · EV charging stations and access to bike share · Recycling facilities, including battery recycling

mechanical systems that are situated on the ground level. We elected to waterproof mechanical and electrical rooms

EFFICIENCY FEATURES

with the flood barriers to create a continuous seal in the case of a flood event. We also selected resilient materials,

· Energy-efficient LED lighting throughout the community

· Fitness center, yoga studio, bike storage and bike workshop space

· ENERGY STAR certified dishwashers, refrigerators, clothes washers and dryers

· Outdoor amenities such as a swimming pool, courtyard garden and entertainment areas

· High-efficiency HVAC systems and water heaters

· Noise-minimizing acoustic design

· High-performance low-e glass windows

· Water-bottle refill station

· Highly reflective thermoplastic polyolefin (TPO) cool roof

· Low-VOC interior paint

· Efficient indoor and outdoor water systems (faucets, toilets, irrigation)

· Indoor air-quality measures

such as tile, for the ground floor to prevent issues like mold in the event flooding does occur. Apartment homes sit above the flood plain to mitigate widespread impacts of water intrusion.

Incorporating the Community Another component of Gables Seaport’s well-considered design is its connection to the community. The external façade honors the building’s historical, industrial roots — providing unique architecture that flows with its surroundings and adds visual value to the landscape. We were also thrilled to work with Artists For Humanity to tap the artistic talents of under-resourced teens from the area to create a mural for a street-facing staircase that connects the community, the street, bus stop and train station (see Front Cover). The vibrant design reflects the neighborhood’s energy and spirit and showcases the diverse talents within the community.

FLOOD BARRIER AT GABLES SEAPORT | BOSTON, MA 46

ENVIRONMENTAL PERFORMANCE Targets & Goals In 2021, to strengthen our impact and demonstrate our dedication to environmental stewardship, Gables set a series of ambitious 10-year goals and signed on to ULI Greenprint’s commitment to reach Net Zero Carbon for primary operations by 2050. Our 2030 goals include targets

NET ZERO

100% Carbon neutral by 2050

GHG EMISSIONS

20% Reduction by 2030

ENERGY USE

20% Reduction by 2030

for greenhouse gas (GHG) emissions, energy use, water consumption, waste diversion and renewable energy genetration.

WATER CONSUMPTION

10% Reduction by 2030

RECYCLING COLLECTION

10% Increase by 2030

RENEWABLE ENERGY

50% Increase by 2030

6000

LIKE - FOR- LIKE

4000

(ME TRIC TONS (MT))

2021 Progress and Performance Metrics

18 0 020000 0 16 0 0 0 0 0 14 0 0 0 0 12 0 0 0 0

Each year, we measure our progress from previous years on a like-for-like basis. Due to the pandemic, 2020 was not a typical year, especially in the multifamily housing sector. Therefore, we have chosen 2019 as our baseline for comparison.

from baseline

8000

EM ISSIONS

-20%

from baseline

161,290

157,462

157,667

TOTA L M BT U

2019

2020

from baseline

129,032 2030

2021

Scope 1 (Direct) CO2 Emissions

TOTA L M BT U

Scope 2 (Indirect) CO2 Emissions

% -2.37% toward -2.25our 2021 is Gables’ first year to report performance 2030 goals for emissions, energy, % from from 80000 water, waste and renewable energy. The roadmap tobaseline achieve these goals involves capital baseline ENERGY 60000 from investment and operational changes. Gables has increased investment in financial and other baseline 161,290 4 0 0 0 0 157,462 157,667 LIKE - FOR- LIKE 18 0 0 0 0 TOTA L M BT U TOTA L M BTcontinues U TOTA L M BT 20000 supporting resources for sustainability initiatives and toU focus on operations designed (ONE MILLION BRITISH 129,032 16 0 0 0 0 THE RMAL UNITS (MBTU)) 0 to reduce emissions and natural resource use. TOTA L M BT U 14 0 0 0 0 2019 2020 2021 2030

10 0 0 0 0

-20

12 0 0 0 0

15,328 18000

M T TOTA L C0

14,686

14,538

M T TOTAL C0 2

16000

ENERGY

1 40 0 0

- 4.19%

-5.15%

from baseline

1 40 6000

( ME T R I C TO NS ( MT ))

20 0 0 1 40 1 20 0 0 10000

EMISSION S

8000 6000

L I KE -FO R -L I KE

40 0 0

( ME T R I C TO NS ( MT ))

20 0 0

12,263

LIKE - FOR- LIKE (ONE MILLION BRITISH

39 620 00 00 00

M T TOTA L C 0 2

THE RMAL UNITS (MBTU))

15,328

14,686

14,538

M T TOTAL C0 2

M T TOTA L C0 2

-20

from baseline

WATER 12,263

M T TOTA L C 0 2

2019

- 4.19%

2020

from

2021

-5.15% from

Scope baseline 1 (Direct) CO2 Emissions baseline

157,462 2020

157,667 2021

2030

100000

-2.37%

-2.25%

80000

from baseline

L I KE -FO R -L I KE

1 40 60000

(ON E MI L L I O N BR I T ISH THER MAL U NI TS ( MBT U))

20 0 0 0 1 40 1 20 0 0 0 100000

161,290

157,462

157,667

TOTA L M BT U

TOTAL M BT U

-2.37%

2020

from baseline

80000

-2.25%

60000

L I KE -FO R -L I KE

40 0 0 0

425,077

(ON E MI L L I O N BR I T ISH THER MAL U NI TS ( MBT U))

20 0 0 0 440 0 0 0 0 39 6 0 0 0

KG A L TOTAL

KGAL TOTAL

2019

2020

3520 0 0

-20

from baseline

434,350

2019

176 0 0 0

88000 440000 44000 39 6 0 0 0 0 352 0 0 0

-20

RECYCLING COLLECTION

TOTA L M BT U

(LBS/APARTME NT HOME (AH))

423,335

from baseline

382,569

KGAL TOTAL

TOTA L KG A L

2021

2030

382,569

2021

2.18%

-0.41%

from baseline

434,350

2030

-10% 423,335

KG A L TOTA L

from baseline

382,569 TOTA L KG A L

2019

2020

220000

2021

2.18%

-0.41%

from baseline

176 0 0 0

1,812

13 2 025000 0

TOTA L L B S /A H

in 2022 and the next several years.14 35

RE CYCLE D MATE RIALS

2020

425,077

13 2 0 0 0

from baseline

TOTA L KG A L

1,890

1,683

TOTA L L B S /A H

8 1884050 0

129,032 2030

KG A L TOTA L

-20%

2030

-10% 1,993

TOTA L L B S /A H

from waterbaseline audits

for 100% of

(KILOGALLONSin(KGAL)) the communities the like-for-like16 group were conducted to help inform planning for retrofits budgeted to take place 4 44000 0

LIKE - FOR- LIKE

2021

from baseline

ENE RGY

KG A L TOTA L

220000

12 3 0

RECYCLING COLLECTION

2020 -7.12

820 615 410 2050 205 18 4 5 0 16 4 0

2021 4.27

from baseline

1,812

1,683

TOTA L L B S /A H

1,890

2019

2020

4.27%

820

from baseline

615 410

1,993 TOTA L L B S /A H

2021

-7.12%

205

from baseline

TOTA L L B S /A H

102 5

LIKE - FOR- LIKE

+10

2030

TOTA L L B S /A H

12 3 0

RE CYCLE D MATE RIALS (LBS/APARTME NT HOME (AH))

2019

102 5

14 35

2019

KG A L TOTA L

LIKE - FORLIKE waste through leak detection andTOTA Gables reduced water operational L L B S /A H practices in 2021. Remote

TOTA L M BT U

Scope 2 (Indirect) CO2 Emissions

1 20 0 0 0

16 80000

from 434,350baseline 423,335

264000

WATER

129,032 meet or exceed the carbon emissions 1 6 0 0 0 0goal by 2030. Within this group, 16% of communities have reached the goal, with

ENE RGY

352 0 0 0

308000

-20%

of the like-for-like portfolio is on target to been able to progress toward our emissions goal. 78% 1 8 0 2030 000 TOTA L M BTreduction U TOTAL M BT U TOTAL M BT U

1 40 020% 00 Scope 1 (Direct) CO2 Emissions emissions reductions ranging from to 43%.

(KILOGALLONS (KGAL))

Scope 2 (Indirect) CO2 Emissions from baseline

161,290 2019

LIKE - FOR- LIKE

2030

Through improved energy efficiency and advancements in our renewable energy procurement strategy, Gables has 0

60000

-2.25%

425,077

264000

8000

L I KE -FO R -L I KE

from baseline

308000

10000

16 8000

-2.37%

80000

440 40 00 00 00

1 20 0 0

EMISSION S

10 0 0 0 0

2019

2020

2030

+10% from baseline

2021

2030

30 8 0 0 0 26 40 0 0

Through improved energy efficiency and advancements energy procurement -0.41% 2.18% in our renewable

WATER

220 0 0 0

425,077

434,350

423,335

-10

fromreduction goal. 69% of the likefrom strategy, Gables has been able to1 76 progress toward our 2030 KGAL energy TOTAL 000 KG A L TOTAL 440 0 0 0 for-like portfolio is on target to meet or exceed the 1 320 0 0 L I KE -FO R -L I KE 39 6 0 0 0 8goal, 8 0 0 0 with energy of communities have reached the (KILO G AL LO NS ( KG A L)) 3520 0 0 440 0 0 30 8 0 0 0 0 26 40 0 0

2019

WATER

220 0 0 0 1 76 0 0 0 1 320 0 0

baseline KGAL TOTAL

baseline

energy goal by 2030. Within this group, 18% reductions ranging from 22% to 36%.

from baseline

Gables is focused on reducing landfill waste by increasing the attention placed on the amount of recycled material

382,569 TOTA L KG A L

generated by our residents. The majority of waste materials produced at our communities comes from our residents’ homes. Gables measures recycling performance based on pounds of material per apartment home per year. Adding glass collections in markets where it is not currently accepted, increasing collections of cardboard and increasing the focus on recycling awareness at our communities through communications has improved our recycling performance.

2.18% from baseline

2020

-0.41% from baseline

2021

2030

-10% from

1,993

ENVIRONMENTAL INITIATIVES

Water Conservation Initiatives

The Sustainability Advisory Council and committees work diligently to stay current on trends, best practices and emerging technologies in facilities management and operations. Each year, they advise our organization to undertake initiatives that balance high performance and cost effectiveness. By implementing these initiatives, we make progress toward our goals of reducing our resource use and increasing our waste diversion and renewable energy use.

Even at our communities not located in areas experiencing water stress, water conservation is a high priority for Gables. Our standard water-efficiency practices include efficient plumbing fixtures, regular inspections and preventive maintenance of plumbing and equipment, ongoing education of residents and associates on water efficiency practices, waterconscious cleaning practices and equipment and use of drought-tolerant plantings and waterefficient, sensor-controlled landscape irrigation systems. Going beyond our standard practices, we took several extra steps in 2021 to improve water conservation.

Energy Initiatives To reach our 2030 goals on reducing energy use, lowering GHG emissions and adopting more renewable energy, Gables works to identify and incorporate effective strategies that improve energy efficiency and utilize clean energy sources. In 2021, Gables completed LED retrofit projects to improve energy efficiency and strategized ways to take advantage of clean solar energy.

LED RETROFITS

RENEWABLE ENERGY

Replacing fluorescent lighting with LEDs makes

Gables set a goal to increase renewable energy usage

sense on many levels. Not only are LED bulbs up

in our common areas by 50% by 2030.

CRIMSON | HOUSTON, TX

to four times more energy efficient than compact fluorescent bulbs, they also emit very little waste

In 2021, we met and exceeded that goal by purchasing

heat. Further, LED bulbs last up to three times as

renewable energy credits (RECs) equivalent to 83%

long as fluorescents, meaning that fewer bulbs end up in the landfill.

WATER AUDITS & REPORTING

LEAK DETECTION

of our 2021 forecasted common area electric usage.

In 2021, Gables completed 45 remote water audits,

An enhanced leak detection program initiated in late

We expect to continue meeting our renewable energy

evaluating the indoor and outdoor water use

2020 to monitor high-usage submeters in resident

commitment with REC purchases in future years. Our

for all onsite systems and equipment as well as

homes and common areas continued into 2021. While

In 2021, Gables completed LED retrofit projects

purchase of high-quality, Green-e certified RECs not

reviewing water and sewer expenses and rates.

the program was paused temporarily to locate a new

in seven Gables communities across our portfolio.

only offsets our common area electric use, but also

The audits provided actionable observations and

vendor, we are resuming in 2022 so we can quickly

Lighting upgrades focused on interior common

supports the growth of large-scale renewable energy.

recommendations for prioritizing water efficiency

isolate and repair costly and wasteful leaks.

areas, including stairwells and exit signs, and

projects involving plumbing retrofits, irrigation system

exterior lighting, including wall packs and pole

Along with purchasing RECs, we are growing our use

lights. The projects are estimated to reduce the

of on-site renewable energy, specifically through solar

energy use of lighting systems by an average of

panel installation at our operating communities. We

Gables is also working with a utility billing and

75% and total community energy usage by 10%.

Based on findings in the field related to auto-fill valves,

started using solar panels and battery storage at The

expense management vendor who will provide

Gables has updated operational procedures to manage

Ashley Gables Buckhead in 2020 and plan to expand

whole-building financial and building performance

and control the use of such valves at pools and water

our on-site solar capabilities in 2022.

water usage analytics reporting at the portfolio and

features. With water conservation in mind, we will

asset level, providing more granularity and insights

also carefully consider the design and use of water

than past variance reports. Once implementation

features such as fountains in new developments.

upgrades and other conservation measures.

OPERATIONAL CHANGES

is complete, this monthly reporting will provide water use and cost information that management and service teams can use to identify water savings opportunities in each community. 52

Recycling Collection Initiatives We are proud of the fact that 100% of our owned and joint venture communities have active recycling programs, and we constantly seek out innovative ways to improve the success of these programs. Our waste initiatives tackle waste diversion on many fronts, including analysis of current practices, resident communication and education, collection pilots at our existing assets as well as careful management of construction materials at our new developments.

Gables created Guide2Green – a set of tips on effective ways to conserve resources, reduce energy usage and save money – to promote healthy and sustainable living for our associates and residents.

COMMUNICATING & EDUCATING TM

GUIDE 2 GUIDE 2 GR REEEENN G

As with all sustainability efforts, increasing our waste diversion requires ongoing communication with and education for our residents. At six Gables communities, we piloted a program in 2021 that introduced new waste and recycling signage. We also initiated an education program at three of our communities in 2021; the pilot campaign included a recycling tote bag, information card and door hanger for each unit, as well as social media and email reminders to residents about our recycling program. We also surveyed our residents to assess their impressions of the pilot and will use these findings to improve the program as we roll it out to additional communities.

IMPROVING COLLECTION PRACTICES In 2021, we also initiated a project at eight communities

IN INYOUR YOURHOME HOME

Looking to reduce your utility bills and save energy? Looking to reduce your utility bills and save energy? • When away,away, increase thethe thermostat’s thesummer summer and lower set point the winter • When increase thermostat’sset setpoint point in in the and lower thethe set point in theinwinter • To stay set the thermostat totocomfort andlayer layerclothing clothing • Towarm, stay warm, set the thermostat comfortlevel level and • Close shades to block thethe sun’s heat days • Close shades to block sun’s heatduring duringsummer summer days • Uncover windows during day getthe thesun’s sun’s heat, night to retain heatheat in cold • Uncover windows during thethe day totoget heat,close closeatat night to retain in weather cold weather a ceiling fancool to cool down and turnititoff off when when you room • Run •aRun ceiling fan to down and turn youleave leavethe the room • Ensure furniture is not blocking vents • Ensure furniture is not blocking vents • Washing with a cool water cycle effectively cleans clothes and saves energy • Washing with a cool water cycle effectively cleans clothes and saves energy • Keep windows and doors closed when running the heater or air conditioner • Keep• Turn windows and doors closed when running the heater or air conditioner off lights in unoccupied rooms and take advantage of natural daylight • Turn•off lights inhome unoccupied rooms andcertified take advantage of natural daylight Equip your with ENERGY STAR TVs and speakers • Equip your home with ENERGY STAR certified TVs and speakers

SMALL ACTS

ANALYZING CURRENT PRACTICES

MANAGING CONSTRUCTION WASTE

• Report all water leaks to Gables Service Team • Run the dishwasher and washing machine when full • Report all water leaks to Gables Service Team • Turn off the tap while brushing your teeth and shaving • Run the dishwasher and washing machine when full • Recycle correctly by following your home community’s trash disposal and recycling instructions • Turn•off the tap while brushing your teeth and shaving Plastic bags are not recyclable, Return bags at qualified drop-off locations. Find the location near • Recycle by following your home community’s trash disposal and recycling instructions youcorrectly at plasticfilmrecycling.org/recycling-bags-and-wraps/find-drop-off-location • Plastic bags are not recyclable, Return bags at qualified locations. the location • Food waste cannot be recycled. If your community has a drop-off composting program,Find compost your foodnear according to program guidelines you atwaste plasticfilmrecycling.org/recycling-bags-and-wraps/find-drop-off-location

To plot the best course for improving our waste

Gables looks to minimize construction waste even

• Food waste cannot be recycled. If your community has a composting program, compost your food waste according to program guidelines

diversion practices, we need to know how our

before we break ground. At every development project,

existing programs are working. A waste and recycling

we right-size our materials to limit opportunities for

infrastructure audit examines the number and location

materials waste. On site, we sort, track and report all

of waste and recycling collection areas to determine

construction waste. In 2021, we achieved a diversion rate

optimal placement. In 2021, we conducted waste and

of 81.95%, diverting over 17.5 tons of construction waste.

to improve glass recycling by implementing separate glass recycling. Over 8.3 tons of glass were collected in just eight months.

recycling infrastructure audits at 49 communities. We use the results of these audits to design improvements to our programs.

WHEN YOU SHOP

• Reusable shopping bags eliminate the hassle of recycling plastic bags • Look for products with less packaging or • Reusable shopping bags eliminate the hassle recyclable packaging

WHEN YOU SHOP

of recycling plastic bags • Look for products with less packaging or recyclable packaging

IMPROVED HEALTH

• Shop for local food & buy organic when possible • Purchase safe cleaning products with Safer Choice or DfE labels Shop for local foodby &utilizing buy organic when possible •• Become more active our fitness • amenities Purchaseor safe cleaningvia products with Safer commuting public transportation

IMPROVED HEALTH

Choice or DfE labels • Become more active by utilizing our fitness amenities or commuting via public transportation

Printed on recycled paper with sustainable ink. Please recycle me!

CERTIFIED COMMUNITIES At Gables, pursuing green building certifications is standard practice.

Increasing green building certifications is a strategy that helps keep us on track to build high-performing communities and achieve our energy, emissions, water and waste goals. Gables maintains a commitment to certify all new developments. In addition, we regularly seek green building certifications for our stabilized communities. Showcasing our commitment to following best practices in all areas of green construction and management, as of 2021,

38 communities, or

68% of the portfolio has at least one green building certification.

*Dual certification with ENERGY STAR Multifamily New Construction

NEW CONSTRUCTION TOTAL CERTIFICATIONS AS OF 2021

NEW CERTIFICATIONS IN 2021

Crimson

Gables 12 Twenty One

Gables 6464 San Felipe

Gables 820 West

Gables Alta Murrieta

Gables Arsenal Street

Gables at the Terrace

Gables Brookhaven

Gables Centerpointe

Gables Central Park

Gables Century Center

Gables Cherry Creek

Gables Columbus Center

Gables Dupont Circle

COMMUNITY

AUSTIN ENERGY GREEN BUILDING

EARTHCRAFT MULTIFAMILY

FLORIDA GREEN BUILDING COALITION

LEED BUILDING DESIGN AND CONSTRUCTION

OPERATIONAL LEED FOR HOMES

NATIONAL GREEN BUILDING STANDARD

FITWEL

Silver 2021

One Star

Silver

IREM CERTIFIED SUSTAINABLE PROPERTY

Certified 2021

Certified

Bronze

Certified

Certified 2021

One Star Silver

Certified 2021

Certified Silver

Certified 2021

Silver Certified 2021

Gables Midtown

Gables Montclair

Certified 2021

Gables Oak Creek

Certified 2021

Gables Old Town North

Gables Park 17

Gables Park Plaza

Gables Park Tower

Gables Point Loma

Gables Pointe 14

Gables Ponce

Gables Post Oak

Gables Republic Square

Gables Residences

Silver

Gables River Oaks

Silver

Certified 2021

Silver Silver

Certified 2021

Two Star

Silver

Certified 2021

Four Star

Silver

Certified 2021 Certified 2021 Gold

Certified 2021

One Star

Certified

Certified 2021 Silver

Two Star

Certified

Gables Takoma Park

Gables Tanglewood

Silver

Gables University Station

Bronze

Gables Vinings Village

Gables Vista

Gold

Gables Water Street

Bronze

The Ashley Gables Buckhead

Silver 2021 Bronze

Certified 2021

Silver

Certified 2021 Certified 2021

Certified 2021

Certified 3

Certified 2021

One Star

Gables Seaport

Total in 2021

Certified 2021

Certified*

Gables Speer

ENERGY STAR CERTIFICATION

Certified 2021

Gables McKinney Avenue

Total Certifications

ENERGY RATINGS

6 1

One Star

One Star 2

6 1

12 1

S P OT L I G H T

ENVIRONMENTAL EXCELLENCE WITH IREM CERTIFICATIONS To affirm that our communities enable healthy lifestyles and foster environmental responsibility, Gables continues to pursue green building certifications that promote sustainability. In 2021,

23 of our communities, comprising

43% of our portfolio, achieved Certified Sustainable Property (CSP) recognition by the Institute of Real Estate Management (IREM).

GABLES BROOKHAVEN | BROOKHAVEN, GA

THE ASHLEY GABLES BUCKHEAD | ATLANTA, GA

GABLES PARK TOWER | AUSTIN, TX

The IREM CSP program evaluates a building’s resource management practices – water conservation, energy management and waste diversion – and its progress toward improving conservation metrics against established baselines. The program also examines the building’s on-site amenities to ensure that tenants have access to healthy eating and lifestyle options as well as environmentally friendly products in common areas.

GOVERNANCE 60

GABLES SEAPORT | BOSTON, MA

Enhancing the Integrity of Corporate Culture

Our experienced management team leads by example, guiding our organization in living our core values and providing the highest returns for our investors and residents. Under their direction, Gables associates embed principles of ESG and responsible corporate citizenship into every aspect of our business. 61

G OV E R N A N C E F E AT U R E

DRIVING SUSTAINABILITY AT GABLES: OUR SUSTAINABILITY ADVISORY COUNCIL Gables originally created the Sustainability Advisory Council (SAC) in 2017 to be the driving force behind sustainability at Gables. The SAC is made up of 22 members across all of Gables’ departments, including the highest levels of leadership.

In 2021, the Materials Management subcommittee

the study, we have made a commitment to install a solar

determined that Gables residents need more convenient

panel array at Gables Vinings Village in Atlanta, Georgia.

recycling options. To help us with these efforts, we are

When complete in summer 2022, these rooftop solar

piloting programs with various waste management

panels will offset an estimated 20% of common area

consultants to explore methods for enhanced recycling

energy use at Gables Vinings Village. The subcommittee

programs. This and other efforts will help strengthen our

also purchased RECs and drafted a procurement

2030 waste diversion targets.

strategy for REC purchases in future years.

To bolster conservation efforts, the SAC Water

The New Developments subcommittee created a list of

Conservation and Energy Management subcommittees

sustainable best practices that work across the green

worked collaboratively in 2021 on an initiative to have

building programs used by Gables. Each development

communities update or complete meter inventories. An

project will utilize these best practices for project

updated meter inventory allows a community to quickly

design and construction, regardless of the certification

identify and address unusual usage patterns, improving

being sought. The standards are designed to create a

cost savings and resource conservation.

consistent approach to improving building performance across the portfolio.

In 2021, the Renewable Energy subcommittee worked to expand our on-site renewable energy use by evaluating

Many additional initiatives are planned for 2022 and

different financial models to find the best options for

beyond as Gables progresses toward meeting 2030 goals.

communities best suited for on-site solar. As a result of

To optimize the committee’s efforts toward integrating conservation strategies and environmental mindfulness throughout all layers of our organization, the SAC formed six subcommittees:

The Sustainability Culture subcommittee, formed in 2021, took on the mission of further embedding sustainability into the work and mindset of all Gables associates by enhancing communication strategies and programs that spread awareness on environmental initiatives and best practices. Acting on the results from an initial survey shared across the company, the

· Sustainability Culture · Energy Management · Water Conservation

subcommittee implemented a visual of Gables’ 2030 corporate sustainability goals that appears on all associates’ computer sign-on screen. The subcommittee also established our ‘Sustainability Scoop’ email series that shares fun facts and ways for associates to

· Materials Management · Renewable Energy · New Developments

implement sustainability into their personal lives. The email series also provides an opportunity for associates to share sustainability strategies they have implemented in exchange for points in our Ovations rewards and recognition program.

GOVERNANCE POLICIES We follow a set of governance policies drafted with Gables’ values in mind. In combination with our community-level sustainability and resilience policies, these policies and procedures establish transparency, accountability, consistency and high standards of practice across our portfolio: · Bribery and Corruption

· Open Communication Policy

· Data Protection and Privacy

· Political Contributions

· Information Technology Security

· Shareholder Rights

· Fiduciary Duty

· Vendor Compliance

· Fraud

· Whistleblower Protection

ADVANCING WITH STRONG SUSTAINABILITY PARTNERSHIPS Alliances with the following industry-leading organizations propel Gables’ ESG programs forward and allow us to enhance our contribution toward a more sustainable society.

GRESB ® is the leading assessment for ESG performance of real estate assets and provides standardized data to investors. Gables completes the assessment annually.

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

ULI GREENPRINT CENTER FOR BUILDING PERFORMANCE ULI Greenprint is a worldwide alliance of leading real estate owners, investors and strategic partners committed to reducing GHG emissions by 50% by 2030 and 100% by 2050. In 2019, Gables joined Clarion Partners, our fund manager, in reporting our annual sustainability metrics to ULI Greenprint, along with 8,900+ commercial real estate assets.

U.S. GREEN BUILDING COUNCIL ® (USGBC) The USGBC created LEED (Leadership in Energy and Environmental Design), the leading certification program for green buildings and communities worldwide. Gables is a USGBC member and uses the LEED rating system in new development design and construction.

INSTITUTE OF REAL ESTATE MANAGEMENT (IREM) The IREM Certified Sustainable Property program allows properties to gain recognition when not covered by other programs and to extend sustainability across portfolios. IREM certifies office properties, multifamily communities, distribution warehouses and shopping centers.

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.

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.

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. Adopted by all UN member nations in 2015, the goals are utilized by companies worldwide to assess their ESG progress.

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

GABLES COLUMBUS CENTER | CORAL GABLES, FL 64

SUSTAINABLE DEVELOPMENT GOALS The UN Sustainable Development Goals serve as a powerful framework that can guide responsible investment and ESG strategy. Gables has adopted eight of the UN Sustainable Development Goals where we believe we can have the most impact. SDG

TARG ET

GOAL S

AC TION

PROG R E SS

Good Health & Well-being

HEALTH

Provide best-in-class associate health and wellness benefits plans and programs.

COMPLETE & ONGOING

HEALTH

Manage indoor environmental quality at communities through indoor air quality management practices, smoke free policies, building material selections and green cleaning policies.

COMPLETE & ONGOING

HEALTH

Promote active lifestyles for residents by incorporating amenities, fitness center, swimming pools and active design elements in communities.

COMPLETE & ONGOING

Report “Walk and Bike Scores” on Gables.com and in our annual corporate citizenship report.

COMPLETE & ONGOING

Participate in the Fitwel program with six certified Fitwel communities and two more projects registered to be certified in 2022.

IN PROCESS

Ensure healthy lives and promote well-being for all at all ages.

HEALTH HEALTH

Gender Equality

DIVERSITY, GENDER, EQUALITY

Assess job profiles to ensure recruitment of a diverse field of candidates for all openings.

COMPLETE & ONGOING

Achieve gender equality and empower all women and girls.

DIVERSITY, GENDER, EQUALITY

Analyze compensation levels (by gender and race) for each position in each region.

COMPLETE & ONGOING

DIVERSITY, GENDER, EQUALITY

All associates to undergo training on unconscious bias.

IN PROCESS

DIVERSITY, GENDER, EQUALITY

Partner with outside consultant to expand awareness of diversity, equity and inclusion.

COMPLETE & ONGOING

Clean Water + Sanitation

WATER

Set 2030 water goal, with actionable plans to increase water-use efficiency through retrofits. Goal: Reduce water use by 10% by 2030, compared to 2019 levels.

COMPLETE

Ensure availability and sustainable management of water and sanitation for all.

WATER

Set guidelines for plumbing fixture flow rates in new developments.

COMPLETE

REPORTING

Generate 100% water data coverage across the portfolio for analysis. COMPLETE

Affordable and Clean Energy

ENERGY

Set 2030 energy and GHG emissions goal. Goal: Reduce common area energy use and GHG emissions by 20% by 2030, compared to 2019 levels.

COMPLETE

Ensure access to affordable, reliable, sustainable and modern energy for all.

RENEWABLE ENERGY

Set 2030 renewable energy goal. Goal: Increase renewable energy use by 50% by 2030, compared to 2019 levels.

COMPLETE

RENEWABLE ENERGY

Set policy to conduct renewable energy feasibility study for all new developments.

COMPLETE

RENEWABLE ENERGY

Study feasibility of solar energy implementation in stabilized communities.

ONGOING

CERTIFICATIONS

Prioritize ENERGY STAR certifications: Gables certified 13 communities with ENERGY STAR in 2021.

COMPLETE & ONGOING

SDG

TARG ET

GOAL S

AC TION

PROG R E SS

Industry, Innovation and Infrastructure

CERTIFICATIONS

Establish goal of 100% of new developments earning green building certifications.

COMPLETE

RESILIENT BUILDING DESIGN

Evaluate resilience during the design and construction process.

IN PROCESS

Build resistant infrastructure, promote inclusive and sustainable industrialization and foster innovation.

ENERGY

Invest in energy efficiency in stabilized communities, including LED retrofits, other measures.

IN PROCESS

RISK MONITORING

Monitor climate risk and resilience through portfolio-wide assessments to manage risk.

COMPLETE & ONGOING

ENERGY AND WATER

Pilot new clean and sustainable technologies and services to support resource-use efficiency

ONGOING

EDUCATION

Stay involved in industry organizations and support research to foster innovation.

ONGOING

Sustainable Cities and Communities

HOUSING AFFORDABILITY

Study rent-to-income ratios to evaluate housing affordability.

COMPLETE & ONGOING

RISK MONITORING

Invest in safety measures at all communities to ensure access to safe housing.

ONGOING

Make cities and human settlements inclusive, safe, resilient and sustainable.

ALTERNATIVE TRANSPORTATION

Locate communities convenient to public transit and emphasize walkability, bikeability.

ONGOING

SUSTAINABLE DEVELOPMENT

Focus development in urban areas, enhancing sustainable urbanization.

ONGOING

ALTERNATIVE TRANSPORTATION

Increase electric vehicle charging infrastructure throughout ONGOING the portfolio. Completed a research project for EV charging infrastructure planning and began the hiring process for a consultant to prepare a 10-year infrastructure implementation strategy.

COMMUNITY INVOLVEMENT

Encourage Gables associates to volunteer annually to support local nonprofits and community.

ONGOING

POLICY

Set sustainable procurement guidelines for offices and CapEx projects.

COMPLETE

REPORTING

Publish an annual corporate citizenship report.

COMPLETE & ONGOING

WASTE

Set 2030 waste goal. Goal: Increase recycling in apartment homes by 10% by 2030, compared to 2019 levels.

COMPLETE & ONGOING

WASTE

Generate 100% waste data coverage across the portfolio for analysis. COMPLETE & ONGOING

WASTE

Add new material collection types (glass) to recycling programs.

ONGOING

WASTE

Plan use of construction materials to use fewer materials, minimize waste.

ONGOING

WASTE

Maintain a construction waste diversion program for new developments.

COMPLETE

EDUCATION

Educate associates on reducing energy, water and waste in communities and offices.

ONGOING

EDUCATION

Promote recycling to residents through social media, other communications.

ONGOING

EDUCATION

Educate residents on how to live more sustainably through social media, lease language, events.

ONGOING

Life on Land

BIODIVERSITY

Protect biodiversity and habitats during construction and major renovation projects.

ONGOING

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.

BIODIVERSITY

Include pollinator plants in all new landscape installations (for both new, existing communities).

ONGOING

BIODIVERSITY

Work with local nonprofits to relocate beehives when found in inappropriate locations.

ONGOING

Responsible Consumption and Production Ensure sustainable consumption and production patterns.

GOVERNANCE RISK MANAGEMENT Adhering to strong risk management and comprehensive due diligence protocols allows Gables to grow our organization while upholding our core commitment of caring for our residents, investors and associates. Gables incorporates diligent risk management practices at each community and in every transaction. The Gables team works with an insurance and risk management consultant to secure property and liability insurance and oversee prudent risk-mitigating policies and procedures. Our highly trained Internal Audit Department conducts compliance audits at each community every 12-18 months.

S P OT L I G H T

OUR COMMITMENT TO A STRONG CYBERSECURITY PROGRAM With technology increasingly present in our personal and professional lives, Gables works diligently to ensure our business and communities are prepared for cyber threats. We are constantly evolving our cybersecurity stance by updating and improving our technology.

Effective risk management also extends to associate onboarding and corporate partnership selection, as both our associates and partners reflect Gables’ core identity. Gables associates receive onboarding and ongoing training that coaches them to live our corporate mission and values. To vet corporate partners, we use a credentialing service called VendorShield® to perform due diligence reviews and uncover any potential business risks.

GABLES REPUBLIC SQUARE | AUSTIN, TX

In 2021, we advanced our cybersecurity technologies through several significant implementations, including the following: · hard drive encryption for all Gables laptops and desktop computers · database encryption for critical personal identifiable information · multi-factor authentication to primary cloud systems In 2021, Gables also underwent a third-party cybersecurity risk assessment to stay current and aware. The assessment highlighted ways for Gables to strengthen our governance measures to further reduce risk exposure. Notable actions include modifying policies and procedures to align with the National Institute of Standards and Technology Cybersecurity Framework (NISTCSF), implementing a cloud-based Security Information and Event Management (SIEM) server to better manage an increasingly remote workforce and establishing a Cybersecurity Committee to spearhead these and other related issues.

GABLES MIDTOWN | ATLANTA, GA 68

To ensure that we are continually aligning Gables’ cybersecurity program with the current cyber environment, we will undergo risk assessments at least every three years. This dedication to ongoing improvement ensures Gables’ preparedness in facing the threats of today and tomorrow. 69

REPORTING & DISCLOSURE

IN PROGRESS

GABLES OLD TOWN NORTH | ALEXANDRIA, VA

DATA & REPORTING METHODOLOGY

ENVIRONMENTAL DATA ASSURANCE

Data coverage and quality are critical for tracking and managing our progress towards our goals as well as for providing accurate information for evaluating potential efficiency projects. Reporting is done at the asset level for energy, greenhouse gas emissions, water and waste for use in our GRESB submission and in our annual Corporate Citizenship Report. Sustainability data utilized for these purposes are assured by a third party.

In 2022, for the third consecutive year, Gables had the prior year’s energy, GHG emissions, water and waste data independently verified by ISOS Group, Inc. ISOS Group is an independent professional services firm that specializes in sustainability reporting under the Global Resources Initiative (GRI), CDP, and GRESB and is a provider of external assurance services. ISOS Group is a Global Reporting Initiative Certified Training Partner for the United States and a CDP Silver Education and Training Partner in the United States. ISOS Group’s team of experts have the technical expertise and competency to conduct assurance to the AA1000 assurance standard, which meets the criteria for assurance of environmental data. The full assurance statement can be found on our website at https://www.gables.com/everydaygreen/

GABLES VISTA | DENVER, CO

Gables works with multiple sources for data collection and manages the data through a data management system. · Energy and water utility data are collected by Yardi Energy Solutions® and RealPage®. · Waste data is collected by CASS® Information Systems, Inc. · Energy, GHG emissions, water and waste data are managed in ENERGY STAR Portfolio Manager and uploaded to Measurabl’s Data Management System. · Gables has 100% data coverage for water, waste and common area energy. · Whole-building data is collected where available from the utilities. In addition to the data quality control process completed by our vendors, Gables has its own extensive data verification process for data accuracy and completeness. 72

GABLES VININGS VILLAGE | ATLANTA, GA 73

ABOUT TCFD & TCFD INDEX The Financial Stability Board established the TCFD in 2015 to make recommendations for more effective climate-related financial disclosures that could promote better informed investment, credit and insurance underwriting decisions. In doing so, TCFD enables stakeholders to better understand the concentrations of carbonrelated assets in the financial sector and the financial system’s exposure to climate-related risks. The TCFD developed four recommendations on climate-related 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 elements.

THE ASHLEY GABLES BUCKHEAD | ATLANTA, GA

SECTION

DISCLOSURE

GABLES’ RESPONSE

SECTION

DISCLOSURE

GABLES’ RESPONSE

1a. Governance

Describe the board’s oversight of climaterelated risks and opportunities.

Gables’ Board of Directors has oversight of climaterelated risks and opportunities. The board receives reports from senior leadership on areas of risk and opportunity, including climate-related transition and physical risks. Refer to Company Profile (page 8) and Environmental Risk Management (page 40).

2c. Strategy

Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.

Gables set long-term goals to reduce energy use and GHG emissions of the portfolio and increase renewable energy use. Gables has also adopted a suite of sustainability and resilience policies and procedures to minimize environmental impact and foster resilience. Refer to Sustainability & Resilience Policies & Procedures (page 44) and Environmental Performance (page 48 - 51).

1b. Governance

Describe management’s role in assessing and managing climate-related risks and opportunities.

Gables’ Sustainability Advisory Council receives reports on energy and GHG emissions, green building certifications and building energy ratings to review and evaluate progress towards targets and goals. Refer to Company Profile (page 8); Environmental Risk Management (page 40); and Sustainability & Resilience Policies & Procedures (page 44).

3a. Risk Management

Describe the organization’s process for identifying and assessing climate-related risks.

Refer to responses for 1b, 2a, 2b and 2c.

3b. Risk Management

Describe the organization’s process for managing climate-related risks.

Refer to responses for 2b.

3c. Risk Management

Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization’s overall risk

Refer to responses for 1b, 2a, 2b, 2c and 3b.

4a. Metrics & Targets

Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.

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.

4b. Metrics & Targets

Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas emissions, and the related risks.

Refer to Environmental Performance (page 48 - 51).

4c. Metrics & Targets

Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.

Refer to Environmental Performance (page 48 - 51).

2a. Strategy

2b. Strategy

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

Describe the impact of climaterelated risks and opportunities on the organization’s business, strategy and financial planning.

Our strategy for climate-related risk focuses on proactively identifying and managing risk across our portfolio. This work is led primarily by the Sustainability Advisory Council with Board of Director oversight. In 2020, Gables engaged a consultant to conduct a high-level assessment of our portfolio’s climate-related risk. This assessment evaluated our portfolio’s known climate-related risks and will be used to inform our ongoing assessment of policies and procedures. Refer to Environmental Risk Management (page 40). Gables utilizes the framework of our environmental management system and our standard operating procedures to plan, budget, evaluate and implement climate-related transition and physical risk strategies. Refer to Our Sustainability Strategy (pages 38 - 47) and Environmental Initiatives (pages 52 - 55).

ABOUT GRI & GRI INDEX

GRI #

DESCRIPTION

PAGE #

REFERENCE

3: ETHICS AND INTEGRITY

The Global Reporting Initiative® (GRI) is an international nonprofit organization that offers global standards for reporting on the environmental, social and governance impacts of an organization’s operations. GRI offers reporting principles, standard disclosures and an implementation manual for preparing sustainability reports. Developed via a global, multi-stakeholder process, GRI is now the world’s most widely used standard for sustainability reporting, with thousands of organizations – including the world’s largest 250 corporations – reporting annually. This enables governments, businesses and citizens to base decision making on consistently reported environmental, social, economic and governance information. This report references the Standard Disclosures from the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines. The table below contains the corresponding GRI Content Index based on the G2016 indicators with material that references GRI Standard 102: General Disclosures 2016.

DESCRIPTION

PAGE #

REFERENCE

1: ORGANIZATIONAL PROFILE 102-1

Name of the Organization

102-2

Activities, Brands, Products, and Services

Values, Principles, Standards, and Norms of Behavior

8; 20; 68

Company Profile; DEI in Action; Governance Risk Management

ESG Organizational Structure; Driving Sustainability At Gables. Our Sustainability Advisory Council.

4. GOVERNANCE 102-18

Governance Structure

10; 62

102-19

Delegating Authority

102-20

Executive-Level Responsibility for Economic, Environmental, and Social Topics

102-30

Effectiveness of Risk Management Processes

10; 62

ESG Organizational Structure ESG Organizational Structure; Driving Sustainability At Gables. Our Sustainability Advisory Council.

Governance Risk Management

5. STAKEHOLDER ENGAGEMENT

GRI 102: GENERAL DISCLOSURES 2016 GRI #

102-16

102-40

List of Stakeholder Groups

102-43

Approach to Stakeholder Engagement

5 26; 30; 33; 34

About This Report Celebrating & Connecting With Our Associates; Engaging Our Residents; Building Community By Giving Back; Providing Industry Leadership

Company Profile 6. REPORTING PRACTICE

6; 8

Letter From CEO; Company Profile 102-50

Reporting Period

About This Report

Back Cover

102-52

Reporting Cycle

About This Report

102-53

Contact Point for Questions Regarding the Report

102-55

GRI Content Index

About GRI & GRI Index

102-56

External Assurance

Data & Reporting Methodology

Our Sustainability Strategy

Environmental Performance

102-3

Location of Headquarters

102-4

Location of Operations

Company Profile

102-6

Markets Served

Company Profile

102-11

Precautionary Principle or Approach

102-12

102-13

External Initiatives

Membership of Associations

38; 44; 46

Our Sustainability Strategy; Sustainability & Resilience Policies & Procedures; Sustainability, Resilience & Community at Gables Seaport

6; 48; 66; 74; 76

Letter From CEO; Environmental Performance; Sustainable Development Goals; About TCFD & TCFD Index; About GRI & GRI Index

GRI 201: ECONOMIC PERFORMANCE 201-2

Advancing with Strong Sustainability Partnerships

Financial Implications and Other Risks and Opportunities Due to Climate Change

GRI 302: ENERGY

2: STRATEGY 102-14

Statement from Senior Decision-Maker

102-15

Key Impacts, Risks, and Opportunities

20; 38; 64; 68

Back Cover

Letter From CEO DEI in Action; Our Sustainability Strategy; Governance Policies; Governance Risk Managment

302-4

Reduction of Energy Consumption

GRI 305: EMISSIONS 305-5

Reduction of GHG Emissions

GRI #

DESCRIPTION

PAGE #

REFERENCE

GRESB REPORTING

GRI 306: WASTE 306-4

Waste Diverted from Disposal

Environmental Performance

GRI 401: EMPLOYMENT 401-2

Benefits Provided to Full-Time Employees that are not Provided to Temporary or Part-Time Employees

28; 29

Health, Benefits & Personal Development; Offering Growth Opportunities For Associates

GRI 403: OCCUPATIONAL HEALTH AND SAFETY 403-6

Promotion of Worker Health

Health, Benefits & Personal Development

Offering Growth Opportunities For Associates

Gables has participated in the GRESB Real Estate Assessment since 2012. Our most recent sustainability performance is reflected in the 2021 GRESB Assessment scores for our stabilized and development portfolios. Clarion Gables Multifamily Trust (CGMT) improved the stabilized portfolio index score by one point to 76, ranking 12th out of 21. CGMT ranks 2nd out of 9 for U.S. Non-Listed Residential operators with a development index score of 88. Gables continuously looks for ways to improve our capabilities and execution in ESG in a market where the bar for excellence continues to rise. We have further refined sustainability goals for the company and our associates which will continue to drive performance in these areas.

GRI 404: TRAINING AND EDUCATION 404-2

Programs for Upgrading Employee Skills and Transition Assistance Programs

10 0

GRI 405: DIVERSITY AND EQUAL OPPORTUNITY 405-1

Diversity of Governance Bodies and Employees

Gables GRESB Standing Investments Score Year by Year

80 11

Gables Diversity

60 40 20 0

2 012

2 013

2 014

2 015

2 016

Peer Group Average

2 017

2 018

201 9

2020

GRESB Average

2021

Gables Score

Gables GRESB New Development Score Year by Year 1 00

GRESB Star Rating by Year

5 60 40 20 0

2 2 01 2

GABLES VISTA | DENVER, CO 78

2 01 3

2 01 4

2 01 5

2 01 6

Peer Group Average

2 01 7

2 01 8

GRESB Average

2019

2020

2021

Gables Score

0 2 012

2 013

2 014

2 015

2 016

2 017

2 018

2 019

2020

2021

GABLES CORPORATE OFFICES ATLANTA

DENVER

DALLAS

3399 Peachtree Road NE

101 University Boulevard

3811 Turtle Creek Boulevard

Suite 600

Suite 240

Suite 1500

Atlanta, GA 30326

Denver, CO 80206

Dallas, TX 75219

404-923-5500

720-616-6830

214-252-2600

BOCA RATON

WASHINGTON, D.C. METRO

HOUSTON

750 Park of Commerce Boulevard

8300 Greensboro Drive

5847 San Felipe

Suite 300

Suite 650

Suite 3250

Boca Raton, FL 33487

McLean, VA 22102

Houston, TX 77057

561-997-9700

703-918-2500

713-784-4144

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

CONTACT Juliette Apicella, Director of Sustainability, gablesresidential@gables.com

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@GABLES

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