Gables Residential Corporate Citizenship Report 2018

The Art of

Connectivity 2018 Corporate Citizenship Report

Contents 5

6

8

76

A Message from Our CEO

2018 Corporate Recognition

Sustainability Scorecard

Reporting

GABLES POINTS OF CONNECTION

2

10

32

62

The People We Influence

Our Affinity with the Earth

In Sync with Our Surroundings

12 14 21 21 21 22 26 27 28

34 Our Approach 36 Energy, Emissions and Water 46 Resident Engagement 47 Gables Greater Green Community Challenge 48 New Developments 50 Walkable, Bikeable Communities 54 Waste and Recycling 54 Community Recycling Programs 54 Construction Waste 54 Sustainable Procurement 54 Corporate Waste Management 56 Resident Health and Wellness 56 Active Lifestyles 58 Environments

64 64 64 66

Our Approach A Culture of Learning Listening to Our Associates Our Doors are Open Everyone’s Welcome Healthy Inspiration Compassionate Connection Showing Appreciation A Voice in the Industry

Gables Residential | 2018 Corporate Citizenship Report

Our Approach Service is Our Signature Always in Touch Connectivity Builds Relationships 67 Lifechanging Connections 70 Gables Day: How We Give Back

Our Mission Taking Care of the Way You Live

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

The Ashley Gables Buckhead Atlanta, Georgia

3

Gables Old Town North Alexandria, Virginia

4

Gables Residential | 2018 Corporate Citizenship Report

A Message from

Our CEO

Good corporate citizenship means different things to different companies. At Gables, we define it as planned, ongoing practices that show respect for people, the environment and the spaces and neighborhoods we inhabit. We think carefully about how our decisions and actions affect society today and what they mean for future generations’ prospects for a vibrant, healthy world.

As a business, we hold ourselves accountable to residents, associates, investors, partners, neighbors and other stakeholders for excellent performance. We balance our sustainability commitments with our drive to be profitable. We focus on delivering innovative, better and more memorable experiences. We work toward these goals by staying closely connected to the people, places and things we touch and impact each and every day.

Connectivity is about communication, collaboration and community, and numerous examples of this are presented throughout our 2018 Corporate Citizenship Report. I am particularly proud of launching our Signature Services program to ensure exceptional experiences for our residents and expanding our Fit4Funds program to engage associates in health and wellness, We continue to lead in multifamily residential sustainability efforts as measured by our GRESB (Global Real Estate Sustainability Benchmark) results, installed our first solar array, increased our electric car charging stations by 94 percent and revamped our sustainability policies and agreements. These and many other accomplishments complement our positive influence on people’s lives.

Our progress would not be possible without our associates’ immense pride and commitment. They strive every day to create positive living experiences for our residents and tenants, an accretive investment for our stakeholders, higher functioning neighborhoods for our communities and an unparalleled employment experience for other Gables associates. I thank all of our associates for their dedication and loyalty.

Connectivity is a vital part of how we implement our business and corporate citizenship strategies. We’re excited to share how it moves us closer to achieving important goals that benefit us all.

Susan M. Ansel President & Chief Executive Officer

5

2018

Corporate Recognition Best and Brightest Companies to Work for in the Nation

101 Best & Brightest Places to Work

Fifth time selected

Houston, TX and Atlanta, GA Five years running

Top 125 in Training

Best Culture of Learning

Training Magazine 10 years running

Litmos Lenny Award

Nation’s Best and Brightest in Wellness

ÂŽ

Builder of the Year: Most Homes Certified Multi-Family Category

6

National Association for Business Resources

Florida Green Building Coalition

Development Company of the Year

2018 NMHC Top 50 Largest Managers

Multi-Housing News

ORA Power Ranking Top Managers Ranked third

Gables Residential | 2018 Corporate Citizenship Report

Best Places to Work Multifamily

Best New Manager Training #5 of top 20

ÂŽ

Multifamily Leadership Three years running

Innovation in Deployment in Leadership Training #10 of top 25

Workplace Wellness Award

Best Use of Classroom or Traditional Training

Aetna Second year running

#5 of top 15

Ovation Award

Best Experience/ Senior Leader Training

for Commercial Multi-Family

#6 of top 15 American Society of Interior Designers Gables Water Street, Irving, TX

HR.com Awards

Multifamily Development of the Year: Mixed Use

Multifamily Development Firm of the Year

D CEO Gables Water Street, Irving, TX

National Association of Home Builders

7

Sustainability Scorecard Gables is proud to present the fifth edition of our Corporate Citizenship Report. The report summarizes our commitment to sustainable development and mission-driven management practice as illustrated by our actions and impact for the year ended December 31, 2018. Performance data include Gables-owned and joint venture assets, unless noted otherwise. For more information, please visit gables.com/everyday-green.

Energy Use

Emissions Baseline 2015

Baseline 2015

-10%

-5.5%

-10%

-4.0%

2020 Goal

2018

2020 Goal

2018

2018: 159,247 MBtu

2018: 18,561 MTCO2e

Water Use

Recycling Rate Baseline 2015

Baseline 2015

-10%

+0.4%

+10%

-1.6%

2020 Goal

2018

2020 Goal

2018

2018: 430,437 kgal

We calculate like-for-like sustainability metrics based on communities where we have operational control and only after one full year of stabilized operations. This time qualification aligns with our “same-store� financial reporting metric.

8

Gables Residential | 2018 Corporate Citizenship Report

Sustainability Metrics Overview Assets Reported Total Square Footage

Energy Use

2018

2017

2016

2015 Baseline

46

46

46

46

14,295,596

14,295,596

14,295,596

14,295,596

2020 GOAL: Reduce energy use by 10%

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

159,247

162,829

165,618

168,497

Compared to Baseline

-5.49%

-3.36%

-1.71%

Baseline

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

Water Use Like-for-Like (kilogallons [kgal]) Compared to Baseline Water Score Portfolio Average

Recycling Rate

2020 GOAL: Reduce greenhouse gas (GHG) emissions by 10% 1,687

1,669

1,683

1,729

16,874

16,866

17,362

17,591

18,561

18,536

19,046

19,329

-3.97%

-4.10%

-1.46%

Baseline

2020 GOAL: Reduce water use by 10% 430,437

441,461

440,726

428,713

0.40%

2.97%

2.80%

Baseline

73

73

72

74

2020 GOAL: Increase recycling rate by 10% 44

44

44

44

13,811,974

13,811,974

13,811,974

13,811,974

8,957

9,249

10,698

7,495

6,931 2,026

7,258 1,992

8,616 2,083

5,684 1,812

Recycling Rate

22.61%

21.53%

19.47%

24.17%

Recycling Rate Compared to Baseline

-1.56%

-2.64%

-4.71%

Baseline

Assets Reported Total Square Footage Total Waste (Disposed and Recycled Materials) (tons) Waste (Disposed) (tons) Recycled Materials (tons)

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

101

109

108

111

Apartments Homes (Stabilized and Lease-up)

28,348

30,901

30,530

31,630

Construction Count Communities

11

7

5

12

Apartment Homes

2,936

1,783

1,185

2,657 9

The people we influence Impacting lives in tangible ways

10

Gables Residential | 2018 Corporate Citizenship Report

11

The people we influence OUR APPROACH

In 2018, Gables Residential owned and managed approximately 28,300 apartment homes across America, influencing thousands of residents’ and associates’ lives in tangible, connected ways. As a result, human sustainability issues are as vital to us as environmental ones. We feel a deep responsibility to meet our residents’ everyday needs while ensuring our associates’ happiness, satisfaction and wellbeing.

We provide our associates tools, training and inspiration to excel at delivering exceptional customer service to our residents. To help associates grow in their careers, we operate as a meritocracy, encouraging people to express their views and maximize opportunities to advance based on skills and talent. Our culture is diverse, inclusive and emphasizes associate health and wellbeing.

Gables Columbus Center Coral Gables, Florida

12

Gables Residential | 2018 Corporate Citizenship Report

6.2

33.6%

AVERAGE GABLES ASSOCIATE TENURE

GABLES ASSOCIATE TURNOVER RATE

The national average is 4.2 years.1

The multifamily industry turnover rate is 38.8%.2

YEARS

Our Values Guide Us

Trends come and go and market conditions change, but we never waver from our core values. They guide our decisions, connect us to our stakeholders and help ensure our business is sustainable for the long term.

Extraordinary quality and service for our residents Unparalleled employment experiences for our associates Utmost integrity and value for our stakeholders and customers Enduring contributions to our local communities

13

The people we influence

A Culture of Learning Lifelong learning is a key tenet of personal growth and prosperity. We want our associates to evolve as leaders and contributors throughout their Gables employment experience. We offer training programs to associates throughout the organization to enable them to deliver on promises to our residents and fulfill their personal and professional goals.

ONSITE MAINTENANCE COACHING

LEADER PROGRAM

Regional Service Trainers work with teams at our apartment communities to enhance skills such as plumbing, electrical, communication, customer service, safety and computer software.

First-time and mid-level supervisors develop introductory leadership skills during a six-month, multi-disciplined program to propel individual growth and enhance team performance.

GABLES LEADERSHIP INSTITUTE

SUCCESS COACH PROGRAM

High-potential associates participate in sessions on strategic analysis, critical thinking and communication to prepare them for current and future leadership positions.

External coaches help participants navigate 360° self-assessment reports and design Individual Development Plans.

Newly hired or promoted associates can request an experienced peer coach to support them during onboarding and their first 60 days in a new role.

Gables Leadership Institute at Gettysburg National Military Park

14

Gables Residential | 2018 Corporate Citizenship Report

OFFICEVIBE AMBASSADORSHIP SCORE

8.4 /10 In a 2018 Officevibe employee engagement survey, associates gave Gables a score of 8.4/10 on ambassadorship, a measure of pride in the company and that they would recommend Gables to others. The score was higher than approximately 74 percent of companies using the same survey.

15

Proof Positive Internal Promotions Sustain Our Culture of Growth In 2017, we assessed our internal promotion rate. The analysis revealed an opportunity for us to offer a higher level of leadership skills training to better prepare our associates for greater responsibilities.

WHAT WE DID

To address this critical skills gap and position our associates for long-term success, we developed a front-line manager leadership development program called LEADER. The blended learning program consists of six once-a-month, all-day sessions to teach topics such as coaching versus feedback, change management versus change readiness and feedforward, which focuses on future development.

Throughout the program, participants gain exposure to Gables senior executives, receive coaching from regional Training & Development managers and role-play various situations to practice and reinforce what they learn.

WHY THIS MATTERS

Gables associates who complete the LEADER program have shown they are better equipped to handle challenges when they arise, are more confident in initiating process improvements and think more globally about our business and their own success. Since 2015, we have promoted 25 percent of LEADER alumni, expanding opportunities for associates and creating a sustainable leadership model for our company.

“LEADER gave me the tools to be open-minded to my team’s needs,” said a Gables associate who was promoted from assistant community manager to community manager during the program. “It helped me understand that everyone learns and receives information differently and needs different forms of recognition. It made me more self-aware and helped me understand why I work a certain way.”

Another Gables associate was promoted to senior community manager a month after finishing LEADER. “The training and guidance I received prepared me for my new role. We worked through active listening, developing others and how to overcome conflict. If I have a challenging day and need guidance, I reference my workbooks. LEADER helped me take my career to the next level.”

16

Gables Residential | 2018 Corporate Citizenship Report

Gables delivered nearly 9,000 learning hours to our associates in 2018.

Associates spent 1,000+ hours focused on ethicsbased topics that support a sustainably healthy society including fair housing, code of conduct, diversity and inclusion, information technology security and workplace harassment.

17

Proof Positive A New Approach to Continuous Learning Before 2017, instructors conducted 90 to 95 percent of Gables associate training in person in classrooms. Since moving to an online learning management system that year, our training is primarily on-demand, which reduced training and travel expenses by 20 percent and classroom time by 65 percent.

WHAT WE DID

Gables compliance training consists of two critical courses: Fair Housing and Preventing Workplace Harassment. To reduce the cost of an outside contractor, improve the learning experience and reduce the time to complete the training, we developed our own video-based Fair Housing course and contracted with a different vendor for Preventing Workplace Harassment. This approach reduced expenses by 40 percent and training time by 64 percent while maintaining the same learning results as the previous format. This solution and other training initiatives helped us rank #47 on Training magazine’s 2019 Training Top 125 for the most successful learning and development programs in the world. Gables is the only multifamily company to be named to this list for 10 consecutive years.

WHY THIS MATTERS

Streamlining and modernizing our training program benefit associates and our company in multiple ways. The on-demand format allows associates to take training courses from any location, when it works for them. The Training & Development team consolidated five disparate training systems onto the new platform for better management and easier associate navigation. We are reinvesting the time and money we save into other training and education initiatives such as Gables Leadership Institute, LEADER and Success Coach.

Top 125 in Training Training Magazine 10 years running

18

Gables Residential | 2018 Corporate Citizenship Report

Moving to on-demand associate training reduced training expenses by 20 percent and classroom time by 65 percent.

19

Diversity by Gender 53% 47%

Male

Female

Management Diversity by Gender Gables Executive Management Group

25%

Male

75%

Female

Diversity by Race

46%

Diversity by Generation 46%

Generation X

35%

Millennials

29% Baby Boomers

19%

18%

Gables Residential | 2018 Corporate Citizenship Report

or c

te hi W

La tin

o

an er ic an i sp

an Af ric or k ac Bl

20

Hi

ixe

Am

d

As ia

Ra ce

n

2% 2%

M

No ts

pe

ci

fie

d

>1%

2%

Generation Z

Listening to Our Associates Associates feel more connected to their work when they have a voice on issues affecting the company and workplace. To build and sustain these connections, we partner with Officevibe to send weekly, anonymous pulse surveys to find out how associates feel about pay, benefits, supervisor relationships and other employment topics important to them. In a November 2018 survey, Gables earned an employee engagement score of 7.7 out of 10, which was higher than 62 percent of companies in 90 countries using the same survey.

7.7

/ 10

EMPLOYEE ENGAGEMENT SCORE Higher than 62 percent of companies in 90 countries

Our Doors are Open

Everyone is Welcome

Positive connections are based on trust. We encourage associates to talk openly with their managers and give feedback on any work topic without fear of retaliation. Gables works with EthicsPoint to provide a website and toll-free number associates can use to anonymously and confidentially report actual or suspected activities involving potential criminal conduct or Code of Ethics violations.

A McKinsey global study of more than 1,000 companies confirms the value of gender, ethnic and cultural diversity. Companies with the most gender-diverse leadership teams are 21 percent more likely to outperform peers on profitability, and 27 percent are more likely to create higher value. Ethnic and cultural diversity contributes to profitability as well, with organizations in the top quartile being led by diverse executive teams and boards.3 Gables promotes diversity not just for financial reasons, but because associates with varied backgrounds and experiences create dynamic workplaces alive with innovation and forward thinking. We see diversity as a vital link to associate engagement, growth, exceptional resident experiences and competitive differentiation, which all lead to a more sustainable business for us and our stakeholders.

21

The people we influence

Healthy Inspiration Associates are happier, more engaged and more productive when they feel well. We continue to enhance our established Fit4Funds wellness program with new offerings from Virgin Pulse to give associates access to healthy habit challenges, mindfulness resources, sleep tools, nutrition guidance and more. Each Fit4Funds participant receives a wearable device for tracking his or her physical activity, sleep and other health metrics.

Associates in the Fit4Funds program earn points redeemable for rewards in Ovations, our online rewards program through which supervisors can recognize top performers in sustainability, wellness, service excellence, innovation, leadership, mentorship and brand ambassadorship. Previously, only associates on Gables’ medical insurance plan could receive rewards, which we paid as reductions in insurance premiums.

In 2018, we enhanced the rewards program to include time off with pay, merchandise and gift cards to allow all associates who participate in Fit4Funds to earn Ovations points. We also increased the rewards payout frequency from two times to four times per year.

Every year, we host Fit4Funds wellness fairs across the country. In 2018, based on associate feedback, we offered advance online and telephone registration for biometric screenings and flu shots. These services accelerated the process and gave associates more time to explore health topics such as telemedicine and preventive medicine at the fair.

To further encourage health and wellbeing, Gables associates may use any Gables community fitness center across the country. In 2018, we installed InBody, a medical-grade body composition analyzer for use by associates in our corporate offices in Atlanta, Georgia; Austin, Houston and Dallas, Texas; Boca Raton, Florida; Denver, Colorado; and Washington, D.C.

22

Gables Residential | 2018 Corporate Citizenship Report

7.3 /10 Gables scored 7.3/10 for efforts to promote healthy life habits in a November 2018 Officevibe survey. The score was higher than approximately 80 percent of companies using Officevibe to track employee sentiment.

23

Proof Positive Walk the Wonders Challenge Gables conducts events and challenges on a regular basis to keep associates interested and engaged in improving their health and wellbeing. Our partnership with Virgin Pulse on the Fit4Funds program allows us to introduce proven programs efficiently and with minimal administrative effort.

WHAT WE DID

Walk the Wonders was a company-wide fitness challenge that took 340 associates (36 percent) on a virtual tour of The Great Wall of China, Chichen Itza, Machu Pichu and other wonders of the world. We awarded teams for the most steps and most creative team name, and recognized individuals with the most steps.

Collectively, Gables associates walked more than 43 million steps during the two-week competition for an average of 10,300 steps per day per participant.

WHY THIS MATTERS

Walk the Wonders demonstrated an important aspect of Gables’ culture: our interest and investment in associate wellbeing. People who know they are part of an organization that cares about them and feel supported at work are more collaborative, motivated and productive—a win-win for associates and for our business.

24

Gables Residential | 2018 Corporate Citizenship Report

43

MILLION

Number of steps Gables associates took during the Walk the Wonders Challenge

96

Percent of Gables associates enrolled in our Ovations Recognition Program

7.9

Gables’ score for associate recognition, which was higher than 74 percent of companies using the Officevibe survey

/ 10

25

The people we influence

Compassionate Connection In 2003, Gables established the Sunshine Fund to aid associates facing personal hardships such as a natural disaster, health problem or loss of a family member. Contributions are voluntary and funds go directly to associates in need.

26

Gables Residential | 2018 Corporate Citizenship Report

Our Ovations online program helps our associates see the connection between their work and company goals and values.

Showing Appreciation Business success is sustainable only when associates are highly engaged and see the connection between their work and company goals and values. Our Ovations online program allows supervisors to recognize top performers and reward them with points redeemable for time off with pay, gift cards, merchandise, airfare, hotels and cruises. Since we launched the program in mid-2017, 96 percent of Gables associates have enrolled, and associates have visited the Ovations website more than 39,000 times. We’ve distributed more than 2.9 million points to associates.

39,000

Number of visits by Gables associates to the Ovations website to recognize co-workers and “like” other associates’ recognition

27

The people we influence

A Voice in the Industry The multifamily housing industry recognizes the importance of sustainable practices in providing residents efficient, innovative communities operated by responsible companies. Industry associations lead advocacy and action to help members and communities thrive.

Gables Residential is active in the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA), advocating for multifamily property owners and operators and the 39 million Americans who live in apartment homes. Our senior executives and managers serve on association task forces, committees and boards, speak at conferences and write thought leadership pieces on issues such as housing affordability, green construction standards and design trends. In 2018, Sue Ansel, Gables President & CEO, testified before the U.S. Congressional House Committee on Financial Services Housing and Insurance Subcommittee, on behalf of the NMHC and NAA, in a hearing on the cost of government regulations on affordable multifamily development.

In addition to many of our associates being members of professional organizations, we participated in these committees, forums and leadership roles in 2018:

Sue Ansel

Matt Bearden

President & CEO

Vice President, Construction

NMHC – Chairwoman and Executive Committee member

NMHC Construction Committee – Founder and member

Dawn Severt

Johnny Ladson

Chief Financial Officer NMHC – Investment Committee Chairwoman and Executive Committee member

ULI Affordable Housing Roundtable – Member

Cris Sullivan Chief Operating Officer NMHC Apartment Strategies Advisory Council – Member

Development Director

Jenny Wiebrand Area Vice President of Investments, Texas ULI Women’s Leadership Initiative – Austin chair and Management Committee member

NMHC OPTECH Conference & Exposition – Co-chairwoman

Carolyn Lewis

NAA Executive Forum – Co-chairwoman

Recruiting Manager NAA Careers Committee – Member

John Akin Chief Investment Officer McPherson Implementation Local Redevelopment Authority Board – Member

NAA HR Advisory Committee – Member

Juliette Apicella Director of Sustainability NAA Sustainability Committee – Member

28

Gables Residential | 2018 Corporate Citizenship Report

Connections in the multifamily housing industry lead to advocacy and action, helping our communities thrive.

Gigi Giannoni (far right), Gables Vice President of Marketing & Public Relations, at the Multifamily Executive Conference

Rob Presley (second from right), Gables Vice President of Facilities Management, at the NMHC Spring Board of Directors Meeting

29

Project Spotlight Gables Residences Denver, Colorado

Gables Residences is a luxury community close to premier shopping, dining and events in Cherry Creek North and a short drive from historic, cultural and sports destinations in downtown Denver.

Energy Efficiency Energy-efficient LED lighting throughout the community

ENERGY STAR dishwashers, refrigerators ®

Energy-efficient, highly reflective, thermoplastic polyolefin (TPO) “cool roof”

High-performance low-e glass windows

and washers

NEST® smart programmable thermostats

Water Conservation Water-efficient landscaping and irrigation system, limited areas requiring irrigation

Drought-tolerant plants WaterSense labeled, water-efficient toilets

Green Transportation Walking distance to Regional Transportation District (RTD) bus stops

Electric vehicle (EV) charging stations Bike storage facility and bike repair station

30

Gables Residential | 2018 Corporate Citizenship Report

Walk Score – 82 “Very Walkable” Bike Score – 85 “Very Bikeable”

Certifications Pursuing National Green Building Standard (NGBS), Bronze

Indoor Environmental Quality Low volatile organic compound (VOC) interior paints

100 percent smoke-free community Green cleaning program

Blackout window shades in all bedrooms Indoor air quality management strategies and practices

Health and Wellbeing Building designed to minimize interior-sourced noises

Rooftop pool, spa and cabanas with views of the Rocky Mountains

Fitness center

Bottle refilling stations One-tenth of a mile from Cherry Creek Trail and two-tenths of a mile from Pulaski Park and the Gates Tennis Center

Courtyard and putting green

31

Our affinity with the earth Considering our impact on resources

Gables Old Town North Alexandria, Virginia

32

Gables Residential | 2018 Corporate Citizenship Report

33

Our affinity with the earth OUR APPROACH

Environmental sustainability at Gables means meeting present needs without compromising future generations’ ability to do the same. In building residential communities, we consider their impact on our business, residents, associates, neighborhoods and society. We track our use of resources such as energy and water and continually refine our operational procedures to improve efficiency and conservation. Our materials and construction techniques adhere to green building standards to ensure sustainable value for residents and investors.

In 2017, we formed the Gables Sustainability Advisory Council to facilitate our transition to greater sustainability and an organization-wide approach consistent with our mission to take care of the environment. Council members represent all areas of the organization and geographical regions.

34

Gables Residential | 2018 Corporate Citizenship Report

Gables Sustainability Master Plan The Gables Sustainability Advisory Council continues to advance our plans to meet corporate environmental reduction goals and increase health and wellness offerings to residents and associates.

35

Our affinity with the earth

Energy, Emissions and Water Progress Toward Our Goals In 2016, we set goals to reduce energy use, GHG emissions and water use by 10 percent from 2015 levels by 2020. Since then, our energy consumption has declined steadily. The 2,1 percent reduction from 2017 to 2018 was the result of lighting retrofit projects on a larger scale as capital expenditure improvements and smaller retrofits by our service teams, operational changes and buying more efficient equipment.

Change in Energy Use 0%

170,000 168,000 166,000

-1%

168,497

-1.7%

Mbtu

164,000

165,618

162,000 160,000

-2% -3%

-3.4%

162,829

-4% -5.5%

158,000

-5% -6%

159,247

156,000 154,000

Energy Use (Mtbu) Change in Energy Use from Baseline

-7% -8%

2015

2016

2017

2018

While we’ve made progress, there is more work to do. We are 0.5 percent behind our energy goal to achieve an average two percent year-over-year energy use reduction. We will reach our goal by maintaining our current strategies, increasing our investment in energy efficiency and increasing our focus on the Gables Greater Green Community Challenge, our no-cost and low-cost measures to improve energy and water efficiency.

Change in Total GHG Emissions 19,400

0% -0.05%

Metric Tons CO2e

19,200 19,000

19,329

-1.5%

-1.00% -1.50%

19,046

18,800

-2.00% -4.1%

18,600

-4.0%

-2.50% -3.00%

18,400 18,200

18,536

18,561

2017

2018

-3.50%

Total GHG Emissions (Metric Tons CO2e) Total GHG Emissions Compared to 2015 Baseline

-4.00%

18,000

-4.50% 2015

2016

Gables’ GHG emissions represent our communities’ electricity and fuel use, calculated using the United States Environmental Protection Agency’s (EPA) ENERGY STAR Portfolio Manager. This method is consistent with the Greenhouse Gas Protocol developed by the World Resources Institute and World Business Council for Sustainable Development, and compatible with the Center of Corporate Climate Leadership’s accounting and inventory and reporting requirements.4 Since 2015, Gables has avoided emissions equal to the energy used by 92 homes in one year.

36

Gables Residential | 2018 Corporate Citizenship Report

In 2018, Gables installed its first solar array with an energy storage system at The Ashley Gables Buckhead. The system became operational in 2019 and is estimated to save 29.9 metric tons of CO2 annually.

Change in Water Use 445,000 2.8%

3.0%

3%

440,000

440,726

kgal

435,000

0.4%

430,000 425,000

2%

441,461

430,437

428,713

400,000

2015

Water Use (kgal)

1% 0%

Change in Water Use from Baseline

-1% 2016

2017

2018

In 2018, Gables used 11,024,000 fewer gallons of water than in 2017, enough to fill 16.7 Olympic-size swimming pools, each holding 660,253 gallons.5 Detecting and managing leaks, upgrading plumbing fixtures and improving operational protocols and irrigation methods helped us achieve this milestone.

OUR APPROACH

Gables owns 49 residential communities across America that contribute to our impact on the planet.

We analyze utility data at the community level to benchmark energy use, GHG emissions and water use. An efficiency scorecard for our portfolio is derived from this information, which helps us identify communities with significant energy and water savings opportunities.

Our approach to environmental performance improvement is multi-pronged. We develop programs to educate current and new associates on energy and water conservation and sustainability features in our communities. Our development and operations teams follow guidelines for procuring building fixtures and equipment to ensure consistent performance. We continually evaluate new technologies and techniques to reduce expenses and resource use. To ensure our residents and prospects are aware of our attention to environmental impact, we highlight each of our communities’ “green� features on gables.com/everyday-green.

37

Our affinity with the earth

Energy, Emissions and Water Notable 2018 Projects Managers and associates in our residential communities share our passion to protect the environment and be good corporate citizens. Examples of individual sustainability initiatives in our communities include:

Gables Arsenal Street

| Watertown, Massachusetts

In 2018, Gables Arsenal Street developed a plan to retrofit 968 lamps with LED bulbs. The retrofit, which reduces electricity use by 29 percent and saves an estimated $28,000 annually, was completed in early 2019.6

38

968

29%

Lamps retrofitted with LED bulbs

Electricity reduction, saving an estimated $28,000 annually

Gables Residential | 2018 Corporate Citizenship Report

Gables Park Tower

| Austin, Texas

Gables Park Tower replaced tubular cold cathode light fixtures in the leasing office with LED fixtures for cost savings and reduced maintenance. They adjusted the temperature settings in common corridors, the amenity deck and the leasing office.

Gables Oak Creek

| Wildomar, California

Gables Oak Creek installed LED light fixtures in multiple exterior locations, reducing common area community electricity use by 12 percent and saving $1,600 per year in electricity expenses. They installed a variable speed energy saving pump for the pool and received a $1,000 rebate from Southern California Edison. To conserve water, they established an advanced water metering account to receive alerts when high usage indicates leaks, renovated landscaping with native plants and installed drip irrigation.

39

Proof Positive It Pays to Power with Clean Energy Building new communities gives us opportunities to implement the latest energy and environmental solutions. The Ashley Gables Buckhead, a 15-story high-rise in Atlanta, Georgia, opened in early 2019 with many environmentally-friendly features.

WHAT WE DID

To optimize space while meeting our residents’ needs, we built a rooftop Skyline Terrace and dog park.

The area is covered by a solar photovoltaic (PV) canopy with battery storage to both shelter it from the elements and generate enough clean energy to power all rooftop amenities.

The 28.80-kilowatt (kW) solar array produces about 42,300 kilowatt hours (kWh) of electricity. It is supported by three Tesla Powerwall 2 batteries, which allows it to store and provide electricity to power rooftop amenities through the night. When the system produces more energy than what is needed or can be stored, it distributes the excess electricity to other common areas in the building. We constructed the rooftop to be “solar-ready” with conduits installed and equipment space reserved to accommodate a larger rooftop solar PV system in the future.

WHY THIS MATTERS

We estimate the clean energy produced by the solar PV system saves 29.9 metric tons of CO2 annually.

This is equal to CO2 emissions from 69.3 barrels of oil consumed or GHG emissions from 6.4 passenger vehicles driven for one year. The kW value offsets electricity expenses by approximately $6,000 annually, based on $0.14 per kWh.

$6,000 ESTIMATED ANNUAL ELECTRICITY EXPENSE SAVINGS

40

Gables Residential | 2018 Corporate Citizenship Report

29.9 ESTIMATED ANNUAL CO2 SAVINGS (METRIC TONS)

42,300 kWh Amount of electricity produced by the new 28.80-kilowatt solar array at The Ashley Gables Buckhead

41

Our affinity with the earth

Energy, Emissions and Water Operational Practices Gables policies and procedures emphasize energy efficiency while providing quality environments for our residents.

Energy Programmable thermostats and temperature setbacks in common areas and vacant units

LED lighting upgrades and daylight sensors to control outdoor lighting Equipment inspections, preventive maintenance and efficient end-of-life replacements

Window and door weatherizing Water heaters set to 120 degrees in models and common areas Energy contract negotiations and utility bill accuracy audits

Water

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

Air Quality Heating/ventilation/air conditioning (HVAC) unit inspections and preventive maintenance

Minimum 4 MERV (Minimum Efficiency Reporting Value) Low VOC paints, flooring, glue and other maintenance products Green training for associates

Cleaning Carpet cleaning contractors who use natural botanical substances from pure sources Eco-friendly carpet installation and household cleaning supplies agreements for all onsite vendors

Recycled paper products or reusable cloth rags Resident education on using eco-friendly products

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

42

Gables Residential | 2018 Corporate Citizenship Report

Sustainability Policies and Agreements In 2008, Gables instituted standard sustainability policies to ensure consistent performance across our portfolio.

Indoor Air Quality Policy Green Cleaning Policy Eco-Friendly Carpet Cleaning and Installation Agreement Eco-Friendly Household Cleaning Supplies Agreement Painting Contractor Paint Product Specifications Sustainable Procurement Policy

43

Proof Positive Efficiency Shines in Lighting Upgrades Gables not only builds environmentally conscious communities, we invest in upgrades to sustain environmental responsibility. In 2018, two communities underwent major lighting upgrades to reduce energy use and expenses.

WHAT WE DID

Gables 820 West, built in 2008, was Atlanta, Georgia’s, first EarthCraft-certified luxury apartment community. In 2018, we replaced 150 175-watt parking garage light fixtures with 40-watt LED fixtures. The new lighting system is 77 percent more efficient, has an estimated lamp life of 11 years versus 1.1 years and will save the service team approximately 1,500 lightbulb changes over the life of the lamp. The project qualified for a $4,500 energy efficiency rebate from Georgia Power, which means it will pay for itself in 1.7 years.

Gables University Station in Westwood, Massachusetts, was built in 2015. In 2018, an energy audit of the interior lighting systems identified 1,345 predominantly fluorescent fixtures in common areas, amenity spaces and corridors that needed retrofitting with LED bulbs. The upgrade, completed in December 2018, is expected to reduce annual energy use by 41 percent. An incentive from Eversource, the local electric and gas utility, paid 100 percent of the project’s $175,000 cost.

17.4%

39.8

ENERGY USE REDUCTION

CO2 SAVED (METRIC TONS)

By using new LED light fixtures Gables 820 West

The equivalent of CO2 generated by 4.8 homes in a year Gables University Station

WHY THIS MATTERS

At Gables 820 West, residents enjoy brighter and more evenly distributed light in the parking garage. The community reduced electricity expenses by 11.6 percent and energy use by 94,539 kWh, or 17.4 percent.

CO2 emissions went down 66.9 metric tons, the equivalent of the amount of energy used by eight homes in one year.

In the first five months after Gables University Station’s lighting upgrade, the electric bill dropped by more than $8,000, a nine percent decrease. This resulted in saving 56,240 kWh of electricity, a 13 percent reduction, and 39.8 metric tons of CO2, the amount generated by 4.8 homes in one year.

44

Gables Residential | 2018 Corporate Citizenship Report

77% more efficient Effect of replacing 150 light fixtures with 40-watt LED fixtures at Gables 820 West

45

Our affinity with the earth

Resident Engagement Gables residents are eager to do their part to conserve resources and be good citizens overall. We engage them in sustainable practices at the beginning of our relationship, which is typically when they sign a lease.

Our lease includes sustainability guidelines, we provide a water conservation checklist and thermostat training at move-in and we follow up with social media posts and events to educate and remind residents how to reduce their environmental footprints.

EARTH DAY 2018

On Earth Day 2018, Gables events across the country educated and encouraged residents to be greener.

Planted wildflowers at a Save the Bees event Gables Point Loma | San Diego, California

Provided a potting station with containers, potting soil and plants Gables Oak Creek | Wildomar, California

Gave away drought-friendly plants and pizza Gables Alta Murrieta | Murrieta, California

Promoted Earth Day and emailed green living tips Gables Central Park | Austin, Texas

Sent green tips and water conservation tips Gables Park Tower | Austin, Texas

Emailed and handed out green tips and recycling tips Gables West Avenue | Austin, Texas

Distributed water saving tips and succulents Gables Park Plaza | Austin, Texas

46

Gables Residential | 2018 Corporate Citizenship Report

Gables Greater Green Community Challenge The Gables Greater Green Community Challenge motivates and rewards our service teams for saving energy and water in our communities. Each quarter, three teams who achieve the greatest savings through no-cost and low-cost measures such as thermostat calibration, occupancy sensors and LED replacement bulbs receive rewards through our Ovations associate recognition website.

In December 2018, halfway through the first six months of the program, 53 percent of the 59 participants had reduced their communities’ energy use by an average of 2.9 percent, exceeding the two percent annual target. The highest reduction achieved was 14.5 percent. Third quarter progress is excellent, with 58 percent of communities reporting an average of 4.9 percent savings and the highest being 16 percent.

4.9% AVERAGE ENERGY USE REDUCTION

47

Our affinity with the earth

New Developments Gables develops communities in major metropolitan markets where there is a high demand for homes based on population growth and city expansion. We select sites in Established Premium Neighborhoods™ (EPNs), which are driven by highly desirable submarkets and excellent livability in walkable neighborhoods close to employment centers, retail and entertainment districts, transit and quality education systems. In 2018, 10 Gables communities with 2,641 apartment homes were under active development and lease-up in Denver, Colorado; Boston, Massachusetts; Dallas and Austin, Texas; Atlanta, Georgia; Coral Gables, Florida; and Washington D.C.

53% Gables communities that are certified, registered or pursing green building certification

Builder of the Year Most Multifamily Homes Certified 400

Florida Green Building Coalition Leading certifier of green projects in the state

We build communities with sustainable, cost-effective features. Cool roofs, LED lighting, efficient building envelopes and water-efficient fixtures minimize our environmental footprint while providing quality living environments for residents. Development teams evaluate sustainable certification programs applicable to each project, select the most effective one and develop the community consistent with those guidelines.

Focus areas include site design and layout, energy efficiency, water conservation, indoor air quality, proximity to mass transit and/or transportation options, landscaping, recycling and renewable material product selection. We track construction and demolition waste generation, disposal and landfill diversion.

Since 2015, 100 percent of newly built Gables communities have earned green building certifications.

Gables Park Plaza Austin, Texas

48

Gables Residential | 2018 Corporate Citizenship Report

Sustainable development is a Gables hallmark.

We have certified our apartment communities to green building new construction standards for more than 10 years.

U.S. Green Building Council (USGBC) LEED ENERGY STAR National Green Building Standard (NGBS) EarthCraft Austin Energy Green Building Florida Green Building Coalition

49

Our affinity with the earth

Walkable, Bikeable Communities According to the Transit Oriented Development Institute, creating dense, walkable communities can reduce driving by up to 85 percent. Decreased dependence on gasoline-powered cars can improve air quality, reduce energy use and GHG emissions, ease traffic congestion and lower stress.7 We strive to locate our apartment communities in areas where residents can walk or bike to shopping and restaurants, and near public transit. The newest Gables communities offer bike storage, bike repair shops and bike shares for residents’ use, and we are adding bike shares to several existing Gables communities.

We provide walk and bike scores on individual community website pages to help residents choose a home that fits their lifestyle.

Gables’ Walk Scores 54%

Communities’ Scores (%)

60% 50% 40%

24%

30%

15%

20% 10%

7%

0

Walker’s Paradise

Car Dependent

Walker’s Paradise

Very Walkable

Walk Score Walk Score analyzes walking routes to nearby businesses, services and amenities. Addresses within a five-minute walk to these destinations receive the maximum score.

50

Gables Residential | 2018 Corporate Citizenship Report

Our goal is to provide communities with access to shopping, restaurants and public transit.

Gables’ Bike Scores

Communities’ Scores (%)

40% 35%

33%

35%

Bikeable

Very Bikeable

30% 25% 20% 15% 10% 5%

13%

15%

Biker’s Paradise

Rating Not Available

4%

0%

Somewhat Bikeable

Bike Score Bike Score measures how good an address is for riding a bike.

Scores are calculated by assessing bike lanes, hills, destinations, road connectivity and bike commuting share mode.

51

Proof Positive EV Charging Infrastructure Drives Clean Transportation Gables supports zero-emission vehicles. The lack of charging infrastructure, however, 8 is one of the biggest barriers to widespread adoption of electric vehicles (EVs), important elements of a sustainable future.

WHAT WE DID

In 2018, we added 16 EV charging stations in Gables communities, expanding our charging infrastructure by 94 percent. Part of this growth was funded by an incentive from Electrify America, an organization investing $2 billion in EV infrastructure and education in the United States over the next 10 years. The award covered charging equipment, installation and services costs for three Gables communities in Houston, Texas, and one in Miami, Florida.

WHY THIS MATTERS

In 2018, Gables EV charging stations saved 7.7 tons in GHG emissions and 2,083 gallons of gas. Since 2015, our first three charging stations at Gables Park Tower in Austin, Texas, have prevented a cumulative total of almost 16 tons of carbon emissions from entering the atmosphere.

EV Charging Savings by year cumulative

GHG Emission Savings (tons)

20.00

15.00

10.00

5.00

0.00 2015

52

2016

Gables Residential | 2018 Corporate Citizenship Report

2017

2018

94% Increase in the number of EV charging stations in Gables communities

53

Our affinity with the earth

Waste and Recycling Progress Toward Our Goals Our goal is to reduce waste by increasing recycling 10 percent from our 2015 baseline by 2020. In 2018, our communities’ comparable recycling rate was 22.6 percent, a 1.1 percent improvement over 2017. Gables recycled an additional 33.8 tons of material and reduced our disposed waste (landfill) collected by five percent, or nearly 327 tons.

OUR APPROACH

Waste that ends up in landfill can produce methane, a potent GHG that contributes to local smog and global climate change.9 We reduce the amount of waste we generate through formal programs and by raising awareness among our residents and associates. We pursue opportunities to reduce waste in our existing communities, during construction of new communities, in our procurement practices and in our corporate offices.

Community Recycling Programs We’re proud that 100 percent of our owned communities participate in recycling programs and residents in 13,540 of our apartment homes recycle. Gables’ average community recycling rate, which is the percentage of total waste by weight that is recycled, is 22.6 percent. A significant portion of the waste we generate is corrugated cardboard used to ship goods to our sites. We are developing an education and awareness program and using new collection containers to recycle and return more of this material to the supply chain loop.

By replacing single-use disposable plates, cutlery and cups at Gables Residential headquarters, we are able to save $5,000 per year.

54

Gables Residential | 2018 Corporate Citizenship Report

78% Amount of construction waste Gables diverted from landfill On projects tracked in 2018, Gables diverted 6,647 tons, or 78 percent of waste, from landfill

Construction Waste When building new communities, we use construction techniques to right-size materials and divert waste such as cardboard, wood, metal, tires, concrete and plastic from landfill.

Sustainable Procurement To reduce waste consistently throughout our organization, we implemented a Sustainable Procurement Policy to guide capital projects and product purchasing. Our standards call for us to buy environmentally friendly products, such as post-consumer paper goods, ENERGY STAR appliances and items with recycled content, reduced packaging or recyclable packaging, when available and economically feasible. When possible, our procurement and capital improvement contracts specify sustainable practices such as energy and water conservation, storm water runoff impact and protection, transportation and disposal programs and low VOC products.

Corporate Waste Management At Gables Residential headquarters in Atlanta, Georgia, we replaced single-use disposable plates, cutlery and cups in our company cafĂŠ with real plates, utensils and Gables-branded mugs and glasses.

Our initial $1,000 investment not only reduces waste, it saves $5,000 per year in supplies, paying for itself in the first three months. We will launch this initiative in Gables regional offices in 2019. Gables communities across our portfolio have replaced disposable cups with mugs in the breakrooms to reduce our reliance on paper products.

55

Our affinity with the earth

Resident Health and Wellness OUR APPROACH

When Gables incorporates sustainable materials and practices into our communities, we do so not only to protect the planet, but to protect and enhance our residents’ health and wellbeing. We provide easy access to amenities that encourage healthy lifestyles and we ensure our apartment homes are comfortable, quiet environments that improve quality of life.

Active Lifestyles Connections to people, places and services that make life better are an important part of the Gables experience. In 2018, to explore new ways to foster healthy, engaged communities, we piloted the Fitwel program at our newly developed The Ashley Gables Buckhead and the existing Gables Brookhaven communities in Atlanta, Georgia. Fitwel is a building certification standard that optimizes occupant health and productivity through targeted design and policy improvements. It was developed by the General Services Administration (GSA) and the Centers for Disease Prevention and Control (CDC) and is administered by the Center for Active Design.

Because we designed and built these communities to EarthCraft standards that incorporate measures impacting human health, both projects will achieve Fitwel’s one-star rating, the first level of certification or higher with minimum investment. Fitwel projects earn one to three stars. We will identify more new developments and existing communities for certification. In 2018, two Gables associates earned the Fitwel Ambassador credential. With their knowledge of Fitwel strategies, they help us manage and support sustainability projects, navigate the Fitwel portal to track our progress and can eventually attain Fitwel certification.

In 2018, we piloted a Fitwel program at The Ashley Gables Buckhead and Gables Brookhaven in Atlanta, Georgia.

Gables Brookhaven Atlanta, Georgia

56

Gables Residential | 2018 Corporate Citizenship Report

The Ashley Gables Buckhead Atlanta, Georgia

PROMOTING ACTIVE LIFESTYLES IN OUR COMMUNITIES

Gables Columbus Center | Coral Gables, Florida We revitalized Columbus Center Plaza, a 19,500-square-foot public urban space adjacent to our community. The plaza is now a neighborhood centerpiece for gathering and socializing. It features enhanced sidewalks, streetscapes and an adjoining open green space with permanent furniture and LED lighting for dining or leisure.

Gables Cherry Creek and Gables Speer Blvd | Denver, Colorado We situated two Gables communities next to Cherry Creek Trail. The 42-mile-long paved pathway runs from downtown Denver to high prairie grasslands and cottonwood groves. The trail gives residents easy access to parks, greenspace, greenways and other recreational trails.

The Ashley Gables Buckhead | Atlanta, Georgia The Ashley Gables Buckhead incorporates active design in the stairs, knowing more people use stairs that are centrally located, accessible and aesthetically pleasing.

OTHER HEALTH AND WELLNESS AMENITIES

Almost all Gables communities have resortstyle pools for exercising, entertaining and relaxing.

Most Gables fitness centers have state-of-theart equipment. The Ashley Gables Buckhead has Peloton and TRX fitness equipment.

We are installing InBody, a medical-grade body composition analyzer, in some of our communities.

Residents of The Ashley Gables Buckhead, Gables Columbus Center, Gables Cherry Creek, Gables Speer Blvd and others coming soon can download the Amenify mobile app.

Amenify curates fitness classes and events, personal trainers and other lifestyle services in residents’ local areas.

We offer bike storage, bike repair shops and bike shares for residents’ use at new and existing Gables’ communities and are adding these amenities to more communities in 2019.

57

Our affinity with the earth

Environments AIR QUALITY

Indoor air quality is essential to good health. We follow four principles to help our residents breathe easier.

1.

Control indoor pollutants by sealing ductwork and vents during construction and renovation; use paints, sealants and flooring adhesives with no or low VOCs; install electric appliances; and use green cleaning supplies. All new Gables developments use water-resistant gypsum wallboard around plumbing fixtures to prevent moisture and mold.

2.

Ventilate buildings from operable windows, bathroom fans and mechanical systems that draw fresh air inside.

3.

Use high-quality air filters in mechanical systems. Our newest communities use MERV 4 filters, which eliminate most major allergens and pollutants.

4.

Prohibit smoking in all areas of our smoke-free communities. In 2018, 41 percent of Gables’ stabilized portfolio and communities under development were designated smoke-free. To increase this number, we developed a plan to transition more communities to smoke-free. We are piloting the program in four communities in 2019 and will implement it in additional communities throughout the portfolio over time.

LIGHTING, TEMPERATURE AND SOUND

A home’s lighting, temperature and sound can affect physical and mental wellbeing. Our design and materials choices help ensure residents’ comfort, control and convenience.

Energy-efficient windows eliminate drafts and maintain desired temperatures.

High-performance air handling systems and sealed ductwork improve efficiency and control air contaminants.

Acoustics solutions minimize outside noise and protect privacy.

Large windows let natural light in and provide outside views. Most Gables communities have homes with operable windows and several have blackout shades to create ideal sleeping conditions.

KITCHENS

Kitchens are natural places for people to connect. Our communities have outdoor kitchens with grills, refrigerators, bars and table seating for use by residents and their guests. Many communities have indoor demonstration kitchens with gourmet appliances that residents may reserve for parties and events. We often partner with neighborhood grocers and restaurants to conduct chef-led cooking classes using locally grown produce.

BOTTLE FILLING STATIONS

Water bottle filling stations in fitness centers keep residents hydrated and encourage them to bring their own bottles, thus reducing waste. We are installing bottle filling stations in many of our new developments.

58

Gables Residential | 2018 Corporate Citizenship Report

Gables Cherry Creek Denver, Colorado

The Ashley Gables Buckhead Atlanta, Georgia

Gables Residences Denver, Colorado

Gables Residences Denver, Colorado

The Ashley Gables Buckhead Atlanta, Georgia

59

Project Spotlight Gables Old Town North Alexandria, Virginia

Gables Old Town North offers fine apartment home and community amenities with a unique combination of eclectic style, rich history and contemporary conveniences.

Energy Efficiency Energy-efficient LED lighting throughout

Energy-efficient, highly reflective TPO “cool roof”

the community

ENERGY STAR dishwashers, refrigerators and washers

Programmable thermostats

High-efficiency HVAC systems High-efficiency water heaters Energy-efficient Kone elevators High-performance low-e glass windows

Water Conservation WaterSense labeled, water-efficient toilets, showerheads and faucets

Water-efficient landscaping and irrigation system, limited areas requiring irrigation

Drought-tolerant plants

Green Transportation Walking distance to Metrorail station EV charging stations Bike storage facility and bike repair station

60

Gables Residential | 2018 Corporate Citizenship Report

Walk Score – 88 “Very Walkable” Bike Score – 86 “Very Bikeable”

Certifications Pursuing LEED for Homes, Silver Level and Fitwel certifications

Indoor Environmental Quality Fresh air circulation system in each apartment home

Low VOC interior paints 100 percent smoke-free community

Blackout window shades in all bedrooms Indoor air quality management strategies and practices

Green cleaning program

Health and Wellbeing

Saltwater pool Fitness studio

Accessible stairs with active design strategies

Water bottle refilling stations

Building designed to minimize exterior and

One-tenth of a mile from Montgomery Park and one-third of a mile from Rivergate City Park

Roof deck with Potomac River views Community plaza with public art

interior-sourced noises

Community green and public open space

61

In sync with our surroundings Connecting residents to the unique spaces they call home

Gables Residences Denver, Colorado

62

Gables Residential | 2018 Corporate Citizenship Report

63

In sync with our surroundings OUR APPROACH

Sustainable communities are founded on positive connections and relationships. Gables continually develops programs to build and strengthen connections between the spaces our residents call home, the buildings and amenities we provide to make daily life easier and the communities where our associates and residents live and work.

Service is Our Signature Amenity Part of Gables’ mission is to provide extraordinary quality and service to our residents with integrity, honesty, courtesy and respect. As a developer and operator, we design living experiences as well as buildings and communities. We believe this approach contributes to better quality of life in our communities and in society overall.

In designing apartment homes, we carefully consider prospective residents’ needs and expectations and tailor our home sizes, finishes and services to ensure a good fit. An example of this attention to detail has been our Concierge services, handled by an on-site professional who interacts directly with residents and is available at all times to handle day-to-day requests. Whether making restaurant reservations, accepting package deliveries or making the impossible seem routine, these Gables ambassadors conduct themselves with utmost professionalism to earn our residents’ trust and confidence.

Gables McKinney Ave Dallas, Texas

64

Gables Residential | 2018 Corporate Citizenship Report

Gables Cherry Creek Denver, Colorado

In 2018, we further elevated our Concierge services at our newer, exclusive, boutique communities. Gables Signature Service exemplifies excellence with even greater flexibility, customization and personal touches.

Residents feel they have a personal assistant at their service every day.

Gables Signature Service is, “A standard of service excellence that has been a tradition embraced by our associates over the years at Gables Residential, which is now enhanced with programming to create greater engagement, maximize service offerings and meet the greater demands of our residents in markets where concierge-like services are becoming the norm, not the exception.�

Always in Touch Communities are healthier and more vibrant when people have easy ways to stay engaged. In 2018, we introduced the Gables mobile app, a onestop resource for community announcements, event calendars, social media links, maintenance requests, rent payments, retail rewards and other information and services.

65

In sync with our surroundings

Connectivity Builds Relationships Meeting stakeholder expectations starts with understanding what’s important to them. One way we learn about and respond to our residents’ needs is through CAPTIVATE!, a loyalty program launched in early 2017.

In exchange for posting online reviews, completing surveys on our quality and service, attending resident events, renewing leases and participating in other “challenges,” residents earn points redeemable for gift cards or apartment home enhancement vouchers. In 2018, more than 20,000 residents—nearly 60 percent of residents in Gables communities offering CAPTIVATE!—participated, proving the value of connectivity in building sustainable relationships and societies.

Nearly 60 percent of eligible residents participated in our CAPTIVATE! loyalty program in 2018, proving the value of connectivity.

Gables Residences Denver, Colorado

66

Gables Residential | 2018 Corporate Citizenship Report

Gables continually develops programs to build and strengthen connections to the spaces our residents call home.

Lifechanging Connections In 2018, Gables Residential committed to participate in Shelters to Shutters, a national 501c3 organization providing employment and housing to people left homeless after a life-altering event such as job loss, domestic violence, medical emergency or natural disaster. The organization finds and screens job candidates who are often overlooked because of the stigma of homelessness, then refers them to apartment owners and operators looking for high-quality, entry level talent. Shelters to Shutters’ diligence and involvement during and after the transition mean employees stay longer than the industry standard and often regain self-sufficiency and pride.

Gables participated in Shelters to Shutters hiring events in 2018. The first associate we hired in the Washington D.C. area celebrated his one-year anniversary with us in early 2019.

67

Proof Positive Paws for a Cause Service dogs can be lifesavers for people with disabilities such as post-traumatic stress disorder (PTSD), traumatic brain injury, seizure disorders, glucose imbalance and mobility issues. Through our Paws to Care™ pet program, Gables supports and promotes Guardian Angels Medical Service Dogs, Inc. (Guardien Angels), a nonprofit organization that trains and donates medical service dogs to those in need.

WHAT WE DID

Paws to Care™ is our umbrella for pet-centric events and charitable involvement. We use it to connect our residents to Guardian Angels and make it easy for them to donate to the nonprofit organization through our CAPTIVATE! loyalty program.

WHY THIS MATTERS

Guardian Angels service dog recipients often report increased activity, more family interaction, improved sleep and reduced need for prescription medication. Since its founding in 2010, the organization has paired almost 300 dogs with deserving recipients at no charge. Gables is proud to support these efforts to help restore independence, improve quality of life for recipients and dogs and reduce reliance on government, caregivers and families. We are especially proud that since 2016, our residents have donated more than $15,000 to Guardian Angels through our CAPTIVATE! loyalty program.

68

Gables Residential | 2018 Corporate Citizenship Report

$15,000 Amount Gables residents have donated to Guardian Angels through our CAPTIVATE! loyalty program since 2016

69

In sync with our surroundings

Gables Day: How We Give Back Gables Day is an annual tradition established in 2000 as a day of service in the communities where our associates live and work. In 2018, 830 Gables associates volunteered 6,289 hours and raised $145,000 in donations for worthwhile causes.

Mile High United Way Project Homeless Connect Denver, Colorado Support for individuals experiencing homelessness and housing instability

70

Dallas Bethlehem Center

Marbridge

Dallas, Texas

Austin, Texas

Interior and exterior renovations at a nonprofit organization serving South Dallas families in need

Renovation of a nonprofit residential community offering transitional and lifetime care to adults with a wide range of cognitive abilities

Gables Residential | 2018 Corporate Citizenship Report

Since Gables Day started in 2000, our associates have volunteered more than 140,700 hours and raised $1,575,700.

Boston Cares Bed Project Boston, Massachusetts

Support for an organization that builds beds for children transitioning out of a shelter, sharing with a sibling, sleeping on a couch, or otherwise without beds

Helping Up Mission Washington, D.C.

Renovations and personal assistance to support men fighting addiction, poverty and homelessness

Veterans Empowerment Organization Atlanta, Georgia Partnership with United Way to put together care packages to enhance quality of life for homeless veterans on the road to self-sufficiency

Russell Home North Florida

Painting, cleaning and stocking supplies at a home for atypical children and adults

Roy B. Benavidez Elementary School Houston, Texas Renovations at an elementary school

Vita Nova South Florida Transformation of property into a park and garden at a transitional living program for homeless and other young adults in need

71

Proof Positive #EVERYDAYGREEN Incorporates Sustainability Into Everyday Life Sustainability is no longer a topic reserved for environmental conferences and activist groups; it is part of daily life. #EVERYDAYGREEN is a fun, interesting way to bring associates’ and residents’ attention to Gables’ sustainability efforts and how everyday living habits can impact the earth.

WHAT WE DID

Gables developed #EVERYDAYGREEN in 2018 and launched it in Spring 2019. The program stimulates new green initiatives, encourages residents and associates to get involved and uses social media to share how they’re making a difference. Activities include:

Gables Goes Green: On the first Friday of each month, we encourage associates to wear a “touch of green.” We post photos on social media, our website or in other corporate initiatives.

#EVERYDAYGREEN: On the 15th of each month, we showcase an example on social media of how easy it is to incorporate sustainable efforts into everyday life. We invite residents to post a photo or video of themselves doing the same to earn CAPTIVATE! reward points.

Caught Green Handed!: Six times per year, we look for residents doing something ecofriendly on their own. We take a photo or video and, with their permission, post it on social media and reward them with CAPTIVATE! points .

WHY THIS MATTERS

Gables associates participate enthusiastically in #EVERYDAYGREEN activities. Their efforts stimulate sustainability dialogue, awareness and tip-sharing between residents and associates.

72

Gables Residential | 2018 Corporate Citizenship Report

nd

#EVERYDAYGREEN

73

Project Spotlight The Ashley Gables Buckhead Atlanta, Georgia

The Ashley Gables Buckhead is a prestigious 325-apartment home community convenient to the Buckhead business district, shopping and restaurants.

Energy Efficiency Solar array and energy storage battery system to power the rooftop Skyline Terrace and dog park

Energy-efficient LED lighting throughout the community

ENERGY STAR dishwashers, refrigerators and washers

NEST smart programmable thermostats

Energy-efficient, highly reflective TPO “cool roof”

High-efficiency HVAC systems High-efficiency water heaters Energy-efficient Kone elevators Airtight apartment home construction

High-performance low-e glass windows

Water Conservation Water-efficient showerheads and faucets WaterSense labeled, water-efficient toilets

Water-efficient landscaping and irrigation system, limited areas requiring irrigation

Drought-tolerant plants

Green Transportation Walking distance to Metropolitan Atlanta Rapid Transit Authority (MARTA) bus stop

EV charging stations

Bike storage facility and bike repair station

Walk Score – 88 “Very Walkable” Bike Score – 63 “Bikeable”

74

Gables Residential | 2018 Corporate Citizenship Report

Certifications Pursuing EarthCraft Multifamily and Fitwel certifications

Indoor Environmental Quality Fresh air circulation system in each apartment home

Low VOC interior paint 100 percent smoke-free community

Blackout window shades in all bedrooms Indoor air quality management strategies and practices

Green cleaning program

Health and Wellbeing

Saltwater pool State-of-the-art fitness studio Water bottle refilling stations 0.5 mile from Frankie Allen Park Restorative garden

Accessible stairs with active design strategies

Building designed to minimize exterior and interior-sourced noises

Views of nature from all apartment homes

75

Reporting

76

Gables Residential | 2018 Corporate Citizenship Report

77

Reporting BENCHMARKING OUR PERFORMANCE

GRESB was established to help solve sustainability challenges facing the real estate sector. They assess environmental, social and governance (ESG) performance of real estate companies, funds and assets worldwide. Institutional investors in Europe and a growing number in the U.S. use the data to evaluate real estate investment risk and long-term returns.

Gables began participating in the GRESB Real Estate Assessment in the United States Residential Sector in 2012 and has received top rankings every year since. In 2018, we earned the GRESB 5 Star rating, which is awarded to 20 percent of entities, and we received the highest rating for being an industry leader. Our GRESB Assessment score was 83, a six-point increase over 2017 and a very favorable ranking compared to the peer average of 68. Our score ranked sixth of 28 U.S. non-listed residential funds in the survey.

83/100

80/100

GRESB GREEN STAR (OVERALL)

IMPLEMENTATION AND MEASUREMENT

GRESB Average 68 Peer Average 68

GRESB Average 64 Peer Average 66

90/100

81/100

MANAGEMENT AND POLICY

NEW CONSTRUCTION AND MAJOR RENOVATIONS

GRESB Average 77 Peer Average 73

78

Gables Residential | 2018 Corporate Citizenship Report

GRESB Average 61 Peer Average 57

GRESB SCORES 2012-2018

+6

100

Overall Score

75

2018 GRESB SCORE IMPROVEMENT

50 25

+1

0 2012

2013

2014

2015

2016

2017

2018

Gables Residential GRESB Range Peer Group Range

Peer Group Average GRESB Average

73

Environment

100

GRESB Average 61 | Peer Average 61

99

Social

100

GRESB Average 71 | Peer Average 78

95

Governance

100

2018 GREEN STAR RATING IMPROVEMENT

GRESB Average 82 | Peer Average 78

79

Endnotes

80

1

Employee Tenure in 2018. Bureau of Labor Statistics, U.S. Department of Labor, September 20, 2018

2

2019 National Multifamily Industry Compensation Survey, Willis Towers Watson

3

Einhorn, C.S. “How a Diverse Workforce Can Help Company Performance.” Barron’s, January 4, 2019

4

ENERGY STAR Portfolio Manager, Greenhouse Gas Emissions, Technical Reference

5

Hoefs, Jeremy. “Measurements for an Olympic Size Swimming Pool, Livestrong.com

6

Based on the average rate of $0.13 per kilowatt hour (kWh).

7

Transit Oriented Development Institute

8

Accelerating Electric Vehicle Adoption, Edison Electric Institute, February 2018

9

Basic Information about Landfill Gas, United States Environmental Protection Agency

Gables Residential | 2018 Corporate Citizenship Report

Gables Park 17 Dallas, Texas

81

Regional Offices ATLANTA

AUSTIN

3399 Peachtree Rd., NE, Suite 600 Atlanta, GA 30326 (404) 923-5500

6850 Austin Center Blvd., Suite 200 Austin, TX 78731 (512) 502-6000

BOCA RATON

DALLAS

750 Park of Commerce Blvd., Suite 300 Boca Raton, FL 33487 (561) 997-9700

3811 Turtle Creek Blvd., Suite 1500 Dallas, TX (214) 252-2600

DENVER

HOUSTON

101 University Blvd., Suite 240 Denver, CO 80206 (720) 616-6830

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

WASHINGTON D.C. METRO

8300 Greensboro Dr., Suite 650 McLean, VA 22102 (703) 915-2500

CONTACT GablesResidential

@gables

Juliette Apicella Director of Sustainability

gablesresidential@gables.com

gables_res

82

GablesLiving

Gables Residential | 2018 Corporate Citizenship Report