Impact Report 2021

IMPACT REPORT 2021

Letter from Our President

We are delighted to present the annual 2021 Jonathan Rose Companies Impact Report.

The following case studies and management practices illuminate our Impact Management System, demonstrating year-over-year reductions in negative impacts from our operations, as well as the generation of positive impacts for our residents, employees, and communities. Each of the stories this report tells is accompanied by dozens of others carried out by our extraordinary, mission-focused people, working all across the nation, in a wide range of properties and communities.

Our Impact Report also informs you about and guides you through all the projects and initiatives we take on every year. Our goal is to continually learn from our impact activities as well as from your feedback, ultimately deepening our achievements.

We attend to two sides of impact: What are the impacts our activities are bringing to the world, and what impact does the world have on us? For example, each of our projects has a climate impact goal, resulting in a direct reduction of greenhouse gas emissions with every acquisition, renovation, and development. At the same time, we develop strategies to increase the resilience of our communities to the emerging impacts of climate change on our properties and residents.

We have long been a green-building leader, with an extensive list of environmental firsts. This year, we continue on this trajectory of firsts with Thessalonica Court, a 191-unit affordable housing preservation community in the Mott Haven section of the Bronx. And this year, Thessalonica Court became the first project in the nation to earn the new dual certification of Enterprise Green Communities 2020 and the WELL building standard. This new certification requires significant advances in both environmental soundness and revitalization of the health and well-being of our residents.

In 2021, we also made significant advances, not only in the outcomes of our Communities of Opportunity program, but also in the collection of data to inform and measure our outcomes. Some of these advancements are our telemedicine program, a digital access survey, and the development of a data infrastructure system that supports the independent academic assessment of our efforts.

Each year plants the seeds of the next year’s work, but it is also good to take the opportunity to step back and reflect on the year’s harvest. I hope you find the following report on the fruits of our work to be as fulfilling as we did.

With best wishes,

Jonathan F. P. Rose

Company Overview

Jonathan Rose Companies was established in 1989 as a mission-based, fully integrated national real estate development and investment firm. Since our founding, we set out to focus on creating model projects that integrate with environmental and social responsibility. Central to this effort has been acquiring and developing affordable, mixed-income housing nationally and creating communities that are green, vibrant and inclusive.

Today, we are proud to share stories of our successes and lessons learned as we build a national portfolio and partner with residents and social service providers to roll out our Community of Opportunity Program. Program elements include the planning and development of affordable and mixed-income housing, transit-accessible locations, and accompanying our communities with a mix of uses that enhance their social, environmental, and financial fabric.

Residents and their well-being are at the heart of our model, and we call on all the facets of our firm to renovate and operate in the most sustainable way. The Community of Opportunity Program is a replicable model that enhances the well-being of our residents, while at the same time contributing to the restoration of planetary health.

Mission Statement

To cultivate a company that can regenerate the fabric of communities, by creating Communities of Opportunity, in which every resident and employee has equitable access to opportunity, environmental quality, health and well-being.

Our Portfolio 1

8 Offices Across the U.S.A.

18.8 million Square Feet

400+ Employees

19,000+ Residential Units Across 19 States and D.C.

$4.2 billion Invested in Acquisitions and Development

17,000+ Affordable Units

OUR PEOPLE

Our diverse and talented team is our most valuable asset. Our 400+ employees enjoy a workplace culture that inspires excellence and encourages each of our them to express their perspectives and draw upon their expertise. We work diligently to attract, develop, and retain the best people in our workplace to strengthen our company legacy and reputation for impact. Every day we rely on our employees to fulfill our mission to develop healthy communities, enhance opportunities, and enrich lives. Within our organization, we provide training to ensure that our employees are aware of our policies, guidelines, and procedures that promote our culture of diversity and inclusion.

We track diversity indicators across the company and our continued commitment is manifest in our emerging leaders who, in their diversity, are reflective of our residents, stakeholders, and the communities we serve.

In 2020, we launched our Anti-racism Committee which has developed a vision and plan to combat systemic racism. The Anti-racism Committee is actively setting organizational priorities under three pillars of focus: internal, external and community-level.

Who We Are Diversity &

at Rose Companies1

OUR WELL-BEING

At Jonathan Rose Companies, it is our goal to empower our employees and communities to reach their greatest potential across all pillars of life. To promote and encourage healthy living and smart investment, we offer a competitive compensation and benefits package, which includes a tiered medical benefits program, alongside company-paid dental and vision care, disability care, and life insurance. Our medical benefits are structured in a tiered system where the company pays a higher percentage of the premium for employees earning less. We also offer an employee assistance program, commuter benefits, a 401(k) plan, and a robust profit-sharing program. To attract and retain our top-tier talent, we promote a culture of continuous improvement in our employees and offer a variety of professional development opportunities including tuition reimbursement programs, continuing education and more.

We support individuals in balancing work and personal commitments through flexible working arrangements and provide paid parental leave for both mothers and fathers. As COVID-19 led to office closures in 2020, we routinely surveyed our employees' work-from-home conditions to ensure they had the equipment they needed to replicate an effective and balanced work setup in their own homes. In support of our employees’ health and well-being, we have retained commuting flexibility throughout 2021 and rolled out a vaccine mandate across the company.

OUR ENGAGEMENT

Our commitment to enhancing the common good starts with the work we do day-to-day and extends to service opportunities throughout the year. In light of COVID-19 restrictions, our typical in-person community volunteering days have been challenged, but we still wanted to honor our company’s commitment to the common good. A listening session with employees surfaced a desire for more charitable giving opportunities to the organizations our employees value most as individuals. So, in 2020 we launched a new charitable giving benefit for all employees using the technology platform CharityVest, which creates a personal tax-deductible charitable giving fund to provide donation access to over 1.4 million charities across the U.S. As a part of this program, Jonathan Rose Companies has committed to one-for-one donation-matching up to $500 per employee each year.

Anti-Racism Committee

OUR VISION AND PURPOSE

Inclusion and equity across socioeconomic strata have long been important pieces of Jonathan Rose Companies’ mission of providing opportunity through affordable housing. However, the stark reminders of continued racial injustice in our country – highlighted in 2020 by the murders of George Floyd, Breonna Taylor, Ahmaud Arbery, and others and the ensuing civil demonstrations – inspired us to look inward and make a commitment to becoming an actively antiracist organization.

The purpose of the Anti-racism Committee is to facilitate the integration of policies and procedures throughout the company to address systemic racism. As a natural evolution of our mission-based company, the Committee works to create further intentionality and accountability to weave the anti-racism ethos throughout the culture of the organization.

ACROSS-THE-COMPANY INVOLVEMENT

The Committee has roughly 25 active members from all areas of the company including acquisitions, development, accounting, property management, asset management, environmental impact, social impact, strategic planning, talent and culture and construction management. Partners and Management Committee members are regular participants in the effort. This diverse representation from across the company, with full buy-in and participation of leadership, facilitates a consensus within the group that we will have the opportunity to implement the recommendations that come out of the Committee.

With an understanding of the national reach of the organization, our ability to leverage and direct large sums of capital, develop the industry’s next leaders, and have direct contact with diverse low-income residents in our managed communities, the Anti-racism Committee established three pillars on which to focus its efforts: internally, externally, and within our communities. The subcommittees and their initial, short-term priorities are listed below.

IMPLEMENTATION AND NEXT STEPS

The Anti-racism Committee engaged Frontline Solutions, which completed surveys and interviews throughout the organization regarding issues of race and equity, facilitated working sessions with the Committee and helped outline a broader organizational strategy to help us set priorities for the work going forward. The Committee has since further defined its subcommittee priorities, with each having its own set of goals, expected impacts, success measures and list of resources necessary to implement, which will be integrated into departmental goals for 2022.

Three Pillars of Focus

Impact Strategy

We envision a world in which every community is an ecological, social and economic landscape of opportunity, unleashing the capacity of its members to contribute to and benefit from regenerative communities.

Impact Strategy

Our business strategy is designed to deliver social and environmental impact as well as competitive, risk-adjusted market returns in our asset class. We buy and build affordable and mixed-income housing and connect each property with health, education, cultural, and social services so that residents can become empowered partners in their communities, improving economic and social outcomes. We also invest in the energy efficiency, decarbonization, water conservation, and resilience of our buildings to lessen our demand for natural resources, in turn mitigating climate change, reducing our operating costs, and improving the health and safety of our residents. These strategies provide economic resilience and add value to our properties, strengthening our financial returns and allowing us to ultimately deploy more capital to achieve even deeper impact.

To optimize our impact, we utilize a model of co-creation that is rooted in data and draws upon the input and expertise of an interdisciplinary team of internal stakeholders across business practices, as well as external stakeholders including residents, financing partners, regulatory agencies, nonprofits and consultants. Each member is responsible for viewing our projects through an impact lens and coming together to deliver a collective, cohesive and impactful vision.

We actively focus our investments in economically resilient markets and, when possible, aim to acquire properties and locate new development projects in areas with limited exposure to current and future climate hazards. Our investment strategy applies basic real estate principles to increase value, while taking advantage of our competitive position in the market and our sophisticated partnership and debt structures to add value. We invest for impact not only because it’s the right thing to do, but because it is an essential tool in our investment strategy: helping to increase available capital, lower operating costs, enhance income stream stability, and reduce long-term exposure to risk.

As the impact investing landscape rapidly transforms, we will continue to adapt our strategy and lead the way in making greener, healthier, and more resilient communities. We carefully consider the sources of the materials with which we build, our methods of construction and the ways that we heat, cool and operate our buildings. We also aim to partner more closely with the healthcare sector on housing, and to implement innovative ways to care for humans and nature, enhancing all of life.

Impact Management System

We have developed an Impact Management System (IMS) which organizes the commitments, plans, implementation, monitoring, and evaluation strategies into an implementation framework that guides our impact delivery process and improves outcomes for our communities, company, and investors.

Our impact management begins with our deep commitment to enhancing social well-being and improving our ecological footprint, which we define through a multi-stakeholder strategic intent and goal-setting process. We set portfolio-wide targets for our company, investments, and investment funds that establish guidelines for housing affordability, social impact, environmental goals, and governance priorities. We commit to both what we will do and how we do it by underpinning our impact delivery strategies in established third-party frameworks. Our IMS is aligned with the Operating Principles for Impact Management and its embedded environmental management system is aligned with the ISO 14001 protocol.

PLAN

We tailor impact plans for each investment, utilizing a data-driven, co-creation model. Our interdisciplinary team includes members of acquisitions, construction, asset management, property management, and impact professionals who leverage third-party technical consultants, tools, site visits, resident engagement, and deep experience to evaluate properties and development opportunities that optimize for impact and financial returns.

IMPLEMENT

We bring the impact plan to life through physical and operational changes upon acquisition. We renovate projects to deliver spaces that facilitate our social programming and green retrofits that will achieve the environmental goals of the project. We also train and empower the site staff to deliver the social and environmental mission in day-to-day operations by hiring impact-dedicated staff like Resident Services Coordinators, and utilizing established protocols and programs.

MONITOR

Impact is continuously tracked, measured, and reported. We utilize a survey platform to gather data about implementation of social programming at sites and a utility monitoring platform to track environmental performance. We also use an internal social media platform to facilitate peer-to-peer sharing of best practices, successes, and challenges. The data is assessed by the impact team and communicated internally and externally through quarterly reports and our yearly Impact Report. Close collaboration with asset managers and property managers surfaces successes and issues to facilitate action.

EVALUATE

To achieve continuous improvement, deepen impact and deliver results more efficiently, we assess performance against the impact plan and goals on a periodic basis. Quarterly meetings and annual business plan reviews provide forums for updates on impact delivery, sharing of lessons learned, and executive-level feedback on strategic initiatives. We aim to achieve impact at exit through responsible disposition of assets and conduct an ex post analysis of our investments to inform future strategies and implementation.

IMPACT MANAGEMENT SYSTEM FRAMEWORK

Review and improve impact decisions and processes based on achievements and lessons learned. Continuously improve in subsequent investments and commitments.

IMPACT MANAGEMENT SYSTEM

EVALUATE PLAN IMPLEMENT MONITOR

Track, measure, and report impact and financial performance. Communicate progress to all parties and make adjustments as appropriate.

PLAN

• Impact Opportunity Score

• Site Inspections & Due Diligence

• Energy Audits

• Green Certification Feasibility

• Resident Engagement & Surveys

• Scope Development

IMPACT MANAGEMENT TOOLS + STRATEGIES

IMPLEMENT

• Renovations and Retrofits

• Communities of Opportunity Toolkit

• Resident Services Coordinators

• Green Operations

• Clean Energy Procurement

MONITOR

• Utility Tracking and Real-Time Monitoring

• Web-based Service Coordinator Software

• Internal & External Reporting

• Annual Impact Report

Evaluate opportunities using proprietary and third-party assessment tools and co-create impact plans to achieve desired goals.

Make physical changes through construction and train staff and service coordinators to implement operational vision.

EVALUATE

• GRESB Survey

• Impact at Exit Memos

• Lessons Learned Meetings

• Impact Management Committee Reviews

Our Integrated Management Approach

Our company is organized to co-create and deliver innovative and impactful investments by sharing lessons, best practices, and resources across all our business practices. We have an integrated investment practice and development group that buys and builds properties, supported by our design and construction team, property management company and internal and external groups to successfully deliver on our vision.

GRACE WEST MANOR - Newark, NJ

SENDERO VERDE - Harlem, NY

PIEDMONT - Oakland, CA NC FIVE - Philadelphia, PA

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INVESTMENT PRACTICE

Our investment practice consists of acquisitions, asset management, impact teams, portfolio management, fund accounting, and investor relations. We conduct interdepartmental due diligence to understand an asset’s historical financial, environmental, and social performance and identify opportunities for property improvements and value creation through creative financing, income generation, and operational savings.

ACQUISITION-REHAB

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DEVELOPMENT

Our development team oversees all new affordable and mixedincome construction projects in the Jonathan Rose Companies portfolio from proposal to occupancy. Utilizing creative design and financing solutions, we work with community partners, government agencies, and our designers to deliver our vision for a greener and more equitable world through models that can be replicated by other developers.

PROPERTY MANAGEMENT

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Ensuring that our properties operate as efficiently as possible is a key component to delivering financial and impact results across the portfolio. Through Rose Community Management (RCM), we support the day-to-day needs of our residents, while upholding our business and impact commitments. Property staff are trained and equipped to fully execute our Communities of Opportunity vision.

DESIGN AND CONSTRUCTION

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Our Construction practice collaborates on all projects across the new development and investment pipeline. In partnership with our construction group, Rose Community Builders acts as a general contractor and coordinator for some of our acquisition-rehab projects to help streamline schedules and meet our environmental and social goals for each project scope.

REAL ESTATE FINANCIAL SERVICES

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Mission Title Agency brings together experienced real estate development and title insurance professionals to create a title agency with expertise in the financing and development of mixed-use and commercial projects and multifamily housing of all types. Rose Community Capital is a team of financing experts with a focus on the origination, underwriting, and placement of FHA and USDA-insured multifamily mortgage loan.

Integrated Impact in Action 1 : Juanita Nolasco Residences

Juanita Nolasco Residences2 is a 188-unit Senior Section 8 property acquired by Rose in December 2017 utilizing a fee simple equity investment and Freddie Mac Green Advantage loan, which reduced the interest rate and allowed the project to underwrite a portion of projected energy and water cost savings. In addition, the team worked with Denver’s Office of Economic Development to extend the affordability covenants at the property from 20 years to 60 years and deepen the affordability to reserve units for more low- and very-low-income households. Affordability was expanded from 85.6% of units restricted to households earning 60% of Area Median Income (AMI) and 14.4% of units restricted to households earning 50% of AMI to 71.2% at 60%, 14.4% at 50%, and 14.4% at 30% of AMI. In exchange, the City provided a $2.6 million soft loan, the proceeds of which funded a rehabilitation at the property.

The project secured nearly $400,000 in incentives from Energy Outreach Colorado to implement a green retrofit that included full LED lighting replacements, installation of low-flow faucets, showerheads, and toilets, ENERGY STAR refrigerators and laundry equipment, and a new, high-efficiency, condensing hot water boiler plant. The package, which came to a net cost of $247,000, earned the project certification under Enterprise Green Communities3 and is expected to pay back through utility savings in under 6 years.

The renovation also reconfigured the first-floor amenity spaces which expanded the community room and laundry room and added a fitness room, wellness room and computer lab. In addition to the new Communities of Opportunity spaces added, a Residence Services Coordinator (RSC) was hired to help implement a multitude of social and environmental programs such as our partnership with the Go-Farm Produce Truck which offers residents locally grown and low-cost produce right at their doorstep. The RSC has also helped organize Medicare workshops, weekly coffee hours, energy utility workshops and voter registration.

INCOME LEVEL SERVED 60% AMI AND BELOW

YEARS OF AFFORDABILITY EXTENDED 60

ENERGY SAVINGS

26%

WATER SAVINGS

15%

NUMBER OF RESIDENTS REGISTERED FOR COLORADO'S SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM

200+

POUNDS OF FOOD DISTRIBUTED

26,094

Materiality Assessment

In 2020, we engaged CodeGreen Solutions to conduct a materiality assessment to evaluate key environmental, social and governance (ESG) topics based on input from a diverse set of internal and external stakeholders. The materiality assessment referenced topics from leading ESG reporting frameworks, including Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial Disclosures (TCFD).1

Whether or not a topic is material to Jonathan Rose Companies is determined by two factors which were measured in this study:

• Business Impact – the effect the organization has on the topic, which can indicate its contribution (positive or negative) to sustainable development.

• Importance to the organization and its stakeholders – the degree to which a topic is aligned with the organization’s vision and the extent to which stakeholders express interest and concern for this topic.

The assessment identified climate-related social resilience as the top material priority for the firm, with physical resilience also in the top 10, reinforcing our commitment to investigating risk and strengthening resilience by community building and physical alterations. The findings also emphasized the importance of energy and emissions reductions, which have spurred the development of a decarbonization strategy, as well as the importance of transparency around issues of diversity and equity, which are being addressed by a number of initiatives led by the Anti-Racism Committee and Talent & Culture.

Partnering for Impact

We have long worked to achieve a variety of material social and environmental objectives through our investment in the affordable housing sector. Though we operate only in the United States, we recognize our position as a member of the global community as well as the global nature of the climate change crisis. To understand our contribution to global goals, we have mapped our actions and investments against the United Nations’ Sustainable Development Goals (SDGs), a set of seventeen goals to promote social, economic, and sustainable development worldwide. As part of Jonathan Rose Companies’ commitment to create tangible, and scalable impact that extends beyond the communities where we operate, we have identified six that are materially relevant to our organization. Importantly, Goal 17 relates to partnership and the promotion and sharing of knowledge, lessons, and impact. We are proud of the many partnerships and strategic relationships we engage in to set public commitments, share best practices, learn from peers, and report and promote our impact achievements.

Since

2019, we have been part of a team selected by Fannie Mae to receive a $650,000 contract award under the Innovation Challenge for an innovative Telehealth program in senior and affordable housing to reduce hospital visits.

In 2021, our Miramar Tower rehabilitation project was recognized by the Los Angeles Better Buildings Challenge Innovation Awards as the Affordable Multifamily Project of the Year. The project is designed to reduce emissions use by 53% through energy efficiency, water conservation, electrification of domestic hot water production and on-site solar PV.

Sustainable Development Goals Supporting Our Impact Strategy 1

Promote healthy living at all Jonathan Rose Companies properties.

• Provide all residents with education on safety, nutrition, and healthcare through the Communities of Opportunity program

• Provide fitness facilities and organize exercise programming like yoga, walking, and dance

• Facilitate on-site health screenings and exam space

• Improve indoor air quality with ventilation and healthy building materials

Procure green power for all properties, when feasible, and reduce energy demand through efficiency and conservation.

• Reduce energy consumption through conservation measures

• Install solar panels and other renewable sources of energy on-site

• Purchase renewable energy credits to offset energy usage

Provide safe and affordable housing, access to safe and inclusive green spaces, and reduce the adverse environmental impacts of cities.

• Preserve affordable housing for the long term

• Acquire and develop properties with appropriate urban density

• Support public policy that improves environmental conditions locally

• Design green and open space to facilitate access to nature

Minimize negative environmental impacts by reducing waste through recycling and implementing sustainable procurement practices.

• Reduce waste generation through responsible procurement and operations, including a shared community goods library

• Implement and optimize recycling and compost programs

• Select products with minimal use of toxic chemicals and facilitate responsible disposal of hazardous materials

Reduce energy, emissions, and water intensity at all properties and strengthen resilience against future climate impacts.

• Set goals to achieve energy, water, and emissions savings and implement strategies and plans to achieve them

• Reduce site-level fossil fuel consumption by implementing electrification and on-site renewable generation

• Assess current and future climate risk at all properties and implement strategies to improve resilience

Encourage and promote public, public-private, and civil society partnerships to build strategic relationships and expand reach.

• Partner with local and national agencies to enhance the affordable housing market

• Engage local and national partners that align with our social and environmental mission

• Increase social and civic engagement of employees and staff through voter registration

Impact in Action1: Rose Community Capital

Rose Community Capital (RCC) is a mortgage lender that provides short-term and permanent financing for multifamily properties. Our mission is to assist affordable housing developers with long-term low-interest debt that will make affordable housing projects feasible throughout the country. RCC is approved by both HUD (FHA) and USDA to originate federally insured debt that is securitized by Ginnie Mae. The government foreclosure insurance that is provided by these programs provides a AAA credit enhancement to the private activity bonds that are necessary to close on an allocation of 4% Low Income Housing Tax Credits (LIHTC). This helps our developer obtain the best bond pricing possible, making their projects more feasible.

The RCC team includes experts in HUD and USDA affordable housing programs, including Section 8 rental assistance. Using our industry know-how, in 2020 we assisted a neighborhood-based African American developer with the refinance of their 100% affordable and rental assisted project. RCC technical assistance resulted in a Section 8 rent increase to current market rent levels and a new FHA insured mortgage that made $3M of property improvements possible and a cash-out to the developer of almost $17M that will be used to acquire and preserve more affordable housing in their community.

RCC created a bridge loan program for affordable projects that provides short-term debt with a quick close. Our first borrower under the RCC Bridge Loan program was a firm owned and operated by a woman of color, who historically had been outbid by larger and better capitalized developers competing for the same projects. The RCC Bridge Loan helped her acquire the project and gave her time to apply for 4% LIHTCs that were used to fund repairs, improvements and energy efficient systems at the property.

UNHOUSED PEOPLE PROJECTS

• Engaged 3 projects with 98 units at $11,651,00 leveraging $58M in LIHTCs and other soft debt

• Closed 1 project with 50 units (26 units for formerly homeless) at $7.5M

Social Impac t

Social Impact

Communities of Opportunity strive to increase the opportunities for our residents by bringing health, social services, education, and recreation programming to our residents and employees.

Our vision for Communities of Opportunity is to empower residents, through the co-creation of programming and interventions, improving health and well-being, resulting in better life outcomes, with great housing communities as the platform. We use an Asset Based Community Development (ABCD) model that encourages active community participation, empowering residents and achieving community-driven, sustainable solutions.

We aim to develop a range of cost-effective strategies that can enhance connections between people and the pathways to opportunity, and potentially spark neighborhood-wide positive ripple effects. Our goal is to have communities we are proud of, where all residents, employees and neighbors can thrive in safety, health, and economic opportunity and with a strong culture of connectedness.

While there are common features essential in making all communities true “communities of opportunity,” each property is unique. Thus, implementing our vision requires purposeful outreach and connection to residents and their networks. Working closely with our tenants ensures that programs being implemented are in line with our residents’ wants and needs and can help us to identify resident leaders who can participate in implementing positive change.

We recognize the importance of integration as a driver of opportunity. We focus our acquisition and development effort in areas where we can connect our residents to affordable transportation networks, high-speed internet access, healthcare, education, retail and employment networks. We acquire and preserve existing affordable housing in locations that have the potential to realize our Communities of Opportunity vision.

Communities of Opportunity

Our vision for Communities of Opportunity is to empower and connect residents through the co-creation of housing-based interventions to improve their health and well-being – physical, mental, financial, social and spiritual – resulting in better life outcomes, using great housing communities as the platform. We view high-quality affordable housing as a foundation for health.

Through the strategic development and implementation of the Communities of Opportunity program, we have been able to influence the social justice of health through an integrated set of interventions that can be grouped into what we call “Categories of Impact.” These 10 categories contain key strategies to building a Community of Opportunity. We seek results that improve the social determinants of health and create opportunity in all properties across our portfolio by providing scalable strategies to improve our residents’ lives.

In 2020, Jonathan Rose Companies issued the Communities of Opportunity Toolkit “2.0,” which consisted of an updated list of the 10 Categories of Impact and best practices for implementation.

10 Categories of Impact

SAFETY

Ensuring that our residents feel safe and secure at home is key to improving their lives.

Practice: Vial of Life, scam prevention trainings, programming with police, disaster preparedness

COMMUNITY BUILDING AND RECREATION

Connecting residents with their neighbors creates a sense of connectedness and can contribute to overall well-being.

Practice: Back-to-school drives, Mommy and Me playgroups, music, art, and dance classes

LIFELONG LEARNING

Providing education support and technology to children and adults fosters a foundation for success.

Practice: ESL classes, GED test classes, computing classes

CIVIC ENGAGEMENT

The voice of our residents is extremely important in civic life, and participation can influence policies that may affect their daily life.

Practice: Voter registration, community cleanups, intergenerational volunteerism

FOOD SECURITY

Providing solutions that offer free or discounted healthy food for low-income families.

Practice: mobile food pantries, Meals on Wheels, community gardens, SNAP benefits

GREEN EDUCATION

Building environmentally friendly properties can instill sustainable habits in the lives of our residents.

HEALTHY LIVING

Encouraging a healthy lifestyle can greatly improve residents’ physical and mental health.

Practice: Health screenings, health education, fitness groups and events, nutritional programs, mental health services

Practice: Recycling education, green cleaning supplies, go green week TRANSPORTATION

Access to safe and reliable public transportation can increase opportunities for our residents.

Practice: Schedules and routes displayed in lobbies, support with access to transport

FINANCIAL SECURITY

Economic stability is essential in ensuring the long-term success of our residents.

Practice: Benefits assistance, tax preparation and preparedness, budgeting classes, couponing

COMMUNICATION, INFORMATION, AND TECHNOLOGY

Transparent and frequent communication between building staff and residents is vital in creating impactful communities.

Practice: Digital access, bulletin boards, Opportunity Walls, monthly calendar of events

CORES Certification

In 2021, we pursued and obtained a CORES1 Certification in recognition of our robust Resident Services Coordination program and our integrated approach to using housing as a platform for opportunity and well-being. The Certified Organization for Resident Engagement & Services (CORES) Certification recognizes organizations with a proven track record of providing high-quality resident services coordination in affordable rental housing. Achieving CORES Certification signals an organization's commitment to the highest standards for resident services, a deep commitment to resident health and well-being, and data-informed operations and decision-making.

Eligible applicants are evaluated for excellence in Resident Services Coordination across six main categories to ensure a robust and effective program:

• Portfolio Profile

• Resident Services Coordination

• Utilizing Information about Residents & the Community

• Resident Services Program Plan

• Funding and Sustainability of Resident Services

• Evaluation of Program Success (Impact)

Obtaining a CORES Certification is important to Jonathan Rose Companies, both to affirm and recognize our long-standing commitment to quality, and also to gain access to funding, partnerships, and data that being a CORES Certified organization affords to us.

In partnership with Fannie Mae’s Healthy Housing Rewards Enriched Resident Services program and National Church Residences, we achieved CORES Certification at Savannah Summit, a 138-unit senior property located in Savannah, GA. Certification led to a significant reduction to the interest rate on the first mortgage, resulting in approximately $46,0002 of annual savings to the property.

GRACE WEST MANOR - Newark, NJ

Communities of Opportunity Tour

Our Communities of Opportunity program includes a combination of services, programs and physical spaces. Areas for residents to gather, socialize, access technology and engage in physical activity all contribute to positive outcomes. A Resident Services Coordinator, Community Manager and engaged resident population are helpful in activating the physical spaces. Below are the key physical design elements to support a full Communities of Opportunity program, which each property strives to incorporate as space, layout and budget allow.

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COMMUNITY ROOM

Each property should have a multipurpose community room where people can gather for social, health and educational events, and important information can be posted in a centralized location. This room is the hub of the community.

OUTSIDE/GREEN SPACE

Access to green spaces positively influences mental and physical health by connecting people with nature, but there is disparity in access along racial and socioeconomic lines in the United States. We strive to mitigate that disparity by bringing safe green outdoor space to all our developments.

Bulletin boards and digital screens are used to share information about the larger community, advertise upcoming events, and share transportation information.

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FITNESS ROOM

Physical activity improves overall well-being and reduces the risk of negative health outcomes. We provide a fitness room with equipment tailored to residents’ abilities and schedule regular health and fitness programming. 7

RESIDENT SERVICE COORDINATOR

A Resident Service Coordinator is employed to connect with community partners, connect residents with vocational and educational opportunities, and help with health-care coordination. They also plan social programming and makes referrals.

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COMPUTER LAB

Technology is an increasingly important part of life and is becoming necessary to complete schoolwork, pay bills, and access resources, yet many low-income residents do not have access to computers or the internet. We provide access to interconnected computers and devices in computer labs and education spaces.

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MEDICAL SCREENING ROOM

A common barrier to receiving medical care for many elderly or disabled individuals is mobility and access to transportation. A private medical screening room allows nurses, podiatrists, and other health experts to provide much-needed medical care on-site.

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KITCHEN

In addition to being used for nutritional demos, cooking together and sharing a meal as a community is a great way to build bonds and increase social connectedness.

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LIBRARY

Having a designated library can help improve literacy rates and allows educational material to be easily accessible. Jonathan Rose Companies encourages properties to stock libraries with culturally appropriate books.

LOBBY BULLETIN BOARDS/DIGITAL SCREENS

Communities of Opportunity in Action 1 : Advancing Digital Inclusion

The COVID-19 pandemic exposed the enormous digital divide that exists in our society and the impact it can have on determining people’s access to health, livelihood, education, food, financing, information, and other critical services. If we are to create a more just and equal society, then all of its members must have equal access to these services. This requires pervasive, high-speed, affordable digital access, including not only internet service but affordable devices, training, high-quality technical support and applications, and online content designed to meet needs.

For our companywide social goal this year, we set about trying to bridge the digital divide for our residents.

As a best practice foundational step, we carried out a baseline survey of residents to establish current levels of digital connection as well as the wants and needs of residents. We launched a co-produced digital connectedness survey in September 2021. The results of the baseline survey will be analyzed and used to inform our ongoing digital inclusion strategy.

The company social goal is aimed to deliver new, high-speed digital access to at least 1,000 units across the portfolio. Through partnerships with various internet service providers, we have surpassed our goal and delivered access to new low-cost or free, high-speed internet services to over 2,000 affordable housing units.

Across the portfolio, digital connection work continues with many examples of devices and trainings being made available to our residents free of charge. Such is the depth and systemic nature of the digital divide that our efforts to address it will continue well into the future. We will use the outcome of the digital survey, as well as our reflections and learnings on the achievements of our 2021 efforts, to inform our digital connection road map going forward.

PLYMOUTH SQUARE - Detroit, MI

PROPERTIES INCLUDED IN PILOT DIGITAL CONNECTION SURVEY

16

SURVEY RESPONSES

1,389

HIGHEST RESPONSE RATE AT VILLAGE CENTER, DETROIT

82%

AFFORDABLE HOUSING UNITS WITH ACCESS TO NEW LOST-COST, HIGH-SPEED INTERNET

2,333

DEVICES DELIVERED TO ASSIST CONNECTING TO INTERNET

606

Vaccine Clinic1

The COVID-19 pandemic revealed the intertwined issues of racism in our society and its underlying systems, the poor distribution of healthcare, the lack of coherence in planning for and responding to a pandemic and the vulnerability and injustice of our economy. It is best to address all these issues together with a strategic plan for equity of health, education and opportunity. It is now abundantly clear that safe, green, affordable housing is an essential social determinant of health, especially for the elderly and those with compromised immune systems.

Jonathan Rose Companies’ long-standing and comprehensive approach to environmental sustainability and social impact positioned us to respond proactively to the needs of our communities in the earliest days of the pandemic and enabled us to be a continued supportive partner as the pandemic evolves.

Through special partnership with the Centers for Disease Control and Prevention and Walgreens, Jonathan Rose properties were approved to host three-day vaccine clinics and provide early vaccine access to staff and residents at a large number of participating properties. Indisputably throughout the pandemic we have witnessed communities of color hit hardest by the pandemic. We are proud that our clinics provided crucial vaccine access to medically underserved communities who have historically been marginalized from prioritized healthcare. Additionally, our teams have already begun rolling out booster clinics to properties and will continue working with our local and federal partners to ensure that our residents receive the support that they need.

49 Properties Held On-Site Vaccine Clinics

5000+ Residents Vaccinated

GOLDEN WEST TOWER - Torrance, CA

Environmental Impact

Environmental Impact

We are in a climate crisis. The harm and suffering caused by extreme weather events, biodiversity loss and toxic pollution are disproportionately distributed to the poorest, most vulnerable, and most disenfranchised populations around the globe. The built environment contributes to approximately 40 percent of all CO2 emissions in the United States1, therefore renovating the existing building stock and holding our new developments to the highest environmental standards must be part of the solution. We aim to meet this challenge by reducing the climate and resource impact of our portfolio while creating resilient, future-proof properties.

Meeting and creating rigorous environmental criteria for our buildings has been part of our ethos from the earliest days of the company. In the early 1990s, Jonathan Rose recognized the need for a comprehensive, structured approach to developing buildings that had a positive impact on the natural environment by creating a set of principles to guide projects in responsible development. These principles led to the creation of the Enterprise Green Communities Certification2 program. Over the last 30 years we have developed some of the country’s most environmentally friendly affordable housing projects using innovative design, financing, and partnerships, and we continue to lead the field in delivering healthy, sustainable, transit-oriented housing.

Today, our impact includes influencing city, state, and federal policies and programs, advocating for, and participating in the greening of existing buildings, and developing innovative solutions for the buildings of tomorrow. Our new development pursuits take advantage of industry-leading techniques such as all-electric, high-performance, resilient design and incorporating renewable energy and storage wherever possible. Our green retrofits are most often designed around the Enterprise Green Certification program. This includes implementing cost-effective measures such as installing LED lights and sensors, upgrading to low-flow water fixtures, adding insulation, and improving air sealing. We take a data-driven approach to monitor and analyze environmental performance at all our properties to uncover further energy and water efficiency opportunities.

From ambitious beginnings to industry-leading projects, we understand the importance of creating replicable models that achieve impact at scale. We will continue to lead and learn alongside our peers as we combat climate change, develop the tools of the future, and focus on the health and well-being of our residents.

Climate Change Mitigation Goals1

In order to reduce our impact on the environment, we have set forth a series of climate-change mitigation goals for our portfolio. These mitigation goals aim to reduce the emissions, energy, water use and landfill waste from our properties over time. We establish a baseline for each property and actively work to achieve the goals by implementing improvements and continuously monitoring performance. We strive to achieve the targets at each individual property to contribute to our overall portfolio goals.

GREENHOUSE GAS REDUCTION

We design, construct, retrofit and operate properties to minimize their emissions of greenhouse and ozone-depleting gases. We are committed to both mitigating through reducing emissions and adapting to our changing environment.

GOAL

Reduce carbon dioxide equivalent (CO2e) emissions intensity by 20% or more from baseline.2

ENERGY REDUCTION

We design, construct, retrofit, and operate properties using strategies to reduce energy use, including integrated design, efficiency improvements, conservation measures, and optimized operations.

GOAL

Reduce energy intensity by 20% compared to baseline.2

WATER REDUCTION

We design, construct, retrofit and operate properties to make the most efficient use of water resources, minimize consumption and reduce adverse effects on water infrastructure systems.

GOAL

Reduce water intensity by 15% compared to baseline.2

WASTE REDUCTION

We design, construct, retrofit, and operate properties to minimize waste sent to landfills. We aim to design waste out of our processes and to divert landfill waste through recycling and composting.

GOAL

Increase the amount of waste diverted from landfills by 15% from baseline.2

COOL ROOF SPOTLIGHT AT ARGONAUT

An anticipated effect of climate change is increasingly deadly extreme heat, with the most devastating effects on cities due to the urban heat island effect. Rooftops with high reflectance coatings help mitigate solar heat gain.

Water Monitoring & Leak Detection

Water makes up 70 percent of our planet – yet only 3 percent of the world’s water is fresh enough to drink, and only 1 percent is readily accessible in our lakes and rivers. By 2025, two-thirds of the world’s population may face water shortages and the environmental repercussions will be catastrophic.1 Recognizing that fresh, potable water is one the most valuable resources on Earth, we have made a portfolio-wide commitment to significantly reduce our water consumption at our properties and equip our community staff with the data and training necessary to take immediate action when leaks are detected.

In 2020 and 2021, in collaboration with Alert Labs Industries, we installed water monitoring sensors called “Flowies” at 47 properties in the Rose Community Management portfolio. The Alert Labs dashboard provides the Environmental Impact team and community staff with minuteby-minute water usage data, allowing the teams to rapidly identify leaks and inefficient performance and contextualize opportunities for improvement. The low-cost, cell-based system incorporates live alerts that will text and email staff the moment a leak has been identified – a streamlined process which can save a property thousands of gallons of water and hundreds of dollars.

In 2020, we piloted the Flowie monitoring device at Lafayette Garden Apartments, a 341-unit property located in Alexandria, VA. Utilizing the Alert Labs dashboard, the team identified leaking toilets and valves across the property and systematically made fixes and replacements where necessary. In comparison to mid-2020, the property was able to reduce water consumption by 6 million gallons and save approximately $76,000 in water costs.2

We aim to expand water reduction strategy beyond live water monitoring and leak detection systems. In 2022, we plan to incorporate smart irrigation and controls into our landscaping strategy – utilizing real-time weather data, temperature sensors and rain detection to reduce outdoor water use. Operationally, we have standardized xeriscaping wherever possible and ensure that plantings are native and drought tolerant.

Environmental Retrofit Tour

We tailor each property’s renovation scope to the specific needs of the site and its residents. However, we have a standard set of commonsense retrofit measures that we typically implement to achieve utility savings, improve indoor environmental quality and attain Enterprise Green Communities Certification when feasible. Some of these important measures include the following:

INSULATION & AIR SEALING

Adding and supplementing insulation to a property’s roofs and walls helps the building retain heat in the winter and slows heat from reaching the interior in the summer. Air sealing also improves the building’s fire resistance, reduces pest problems, and limits noise transfer and movement of odors between different parts of the building.

HIGH-PERFORMANCE WINDOWS

Replacing windows at the end of their useful life with higher-performance models can substantially reduce heat loss and gain within a building, reducing utility bills, and improving resident thermal and acoustic comfort. We select ENERGY STAR windows specific to each region.

INTEGRATED PEST MANAGEMENT

Integrated Pest Management (IPM) saves times and money by proactively taking steps to prevent conditions that attract pests. Some strategies of IPM include sealing wall cracks and penetrations, improving resident housekeeping, avoiding the use of toxic pesticides, and promptly responding to pest problems.

INDIGENOUS PLANTS & EFFICIENT IRRIGATION

Our landscape design prioritizes indigenous, noninvasive, drought-tolerant plants that encourage biodiversity and restore precolonial ecology. Efficient irrigation technologies such as drip irrigation systems, irrigation timers, moisture control sensors, and rain delay controllers all help reduce water consumption while maintaining healthy plant life.

BOILER TUNING & CONTROLS

Tuning boiler systems ensures that equipment is running optimally and according to original design intent. Adding or upgrading control systems helps systems respond to changes in outdoor temperatures and indoor heating and hot water demands. At the end of a boiler’s useful life, replacing equipment with high-efficiency, condensing models can greatly reduce energy use and emissions and improve indoor air quality.

LIGHTING FIXTURES & CONTROLS

Upgrading existing light fixtures and bulbs with high-efficiency LED systems significantly reduces the property’s electrical demand while maintaining or improving existing light levels and reducing ongoing maintenance costs. We also install occupancy sensors, timers, and photocells that decrease energy use by providing light only when necessary.

HEALTHY MATERIALS

Setting rigorous environmental standards for product procurement can help ensure that residents remain healthy and building interiors remain resilient. Product categories including hard-surface and soft-surface flooring, paints, cabinets, sealants, and adhesives have third-party certifications that test for reduced VOCs and other toxic chemicals.

ENERGY-EFFICIENT APPLIANCES

Always-on or frequently used appliances like refrigerators, dishwashers, washing machines, and dryers should be upgraded to energy-efficient ENERGY STAR models whenever feasible. Efficient appliances help reduce annual utility costs, greenhouse gas emissions, and operational costs.

LOW-FLOW FAUCET AERATORS, SHOWERHEADS, AND TOILETS

Low-flow faucet aerators, showerheads, and toilets reduce water use and lessen the demand for hot water, which translates into direct utility savings for residents and building owners. Selecting fixtures that are WaterSense labeled helps ensure that functionality is maintained while using less water.

Electric Gas

MABLE H KEHRES - Monroe, MI

Environmental Impact in Action: NC5 New Development

Safe, sustainable, affordable housing is the basis on which Communities of Opportunity are built and thrive. Ensuring that our residents have the ability to access safety, physical well-being, financial well-being, education, transportation and more is critical to Jonathan Rose Companies’ mission. Therefore, we approach each new development project as an opportunity to reinvent what mixed-income and affordable housing looks like in the United States.

Our NC5 project, which opened in the fall of 2021 and is located in Philadelphia’s North Central neighborhood, is a leading example of what green and healthy mixed-income housing should look like: designed to optimize and enhance all social and environmental determinants of health and well-being. The 133 mixed-income-unit project was designed with tenant and community well-being and environmental efficiency at its core, drawing on a series of stakeholder engagement meetings to ensure that this new development would fully meet the needs of the surrounding community.

This cutting-edge, $51M project is a joint effort between the City of Philadelphia, the Philadelphia Housing Authority and Jonathan Rose Companies. Design elements such as the magnificent views of the landscaped courtyard, the procurement of natural wood finishes and the utilization of soothing paint colors help emphasize the link between environmental health and human health throughout NC5.

SUSTAINABLE ELEMENTS

WATERCONSERVING PLUMBING FIXTURES

CONSTRUCTION WASTE MANAGEMENT PLAN, INCLUDING RECYCLING OF CONSTRUCTION WASTE MATERIALS

NC5 will achieve a high energy-efficiency rating on the Home Energy Rating System (HERS) index and has also earned a designation under Enterprise Green Communities. Through its compliance with Enterprise Green Communities, NC5 also meets ENERGY STAR 3.0 standards.

ENERGY-EFFICIENT LIGHTING WITH DAYLIGHT OR OCCUPANCY SENSORS

CONTINUOUS EXTERIOR INSULATION AND MINERAL WOOL INSULATION FOR A HIGH-PERFORMANCE BUILDING ENVELOPE

ENERGY STAR CERTIFIED WHITE ROOF MEMBRANE

Resilience

As we witness the effects of climate change – increased wildfires, stronger hurricanes, flash flooding-take hold in our country, ensuring the resilience of our portfolio is crucial. As an organization dedicated to providing housing and opportunity for our residents, we strive to build resilience into our business model at all levels. Thanks to our core mission of managing funds with a strong focus on social and environmental impact, we have spent years developing our approach to resilience planning and investment, which reduces risk to our investors and makes our communities stronger. The combined environmental and social focus of our firm enhances our portfolio’s resilience. Energy-efficient buildings are inherently safer in extreme climate conditions and the social cohesion spurred on by resident engagement and social programming creates community bonds that are critical during an emergency. To future-proof our portfolio, we have developed a resilience policy that addresses physical, social and transitional risk across three key stages of asset management and ownership: acquisition, design and operation.

ACQUISITION

During due diligence of investment properties, we undertake a series of assessments and studies to identify and mitigate risk. As we evaluate potential properties for acquisition, we consider the likely risks for a property based on its location, such as flood, earthquake, extreme storms, or tornados. We do not invest in properties with severe, imminent risk, such as those located in a flood-plain. However, some risks are so widespread that they are somewhat unavoidable – such as earthquake risk in California or tornado risk in the Midwest. In these locations, we evaluate building construction type, condition, and structural integrity for resilience against the local risks and will only move forward with properties that are well suited to withstand severe events. In our deal underwriting, we include budget for capital improvements to enhance the resilience of projects.

DESIGN

Understanding and anticipating regulatory risk such as New York’s Local Law 97 or Washington D.C.’s Building Energy Performance Standard, is fundamental to our approach to managing the financial risks associated with a transition to a low-carbon economy. Not only do we design and budget for our buildings to comply with current and anticipated energy, emissions, and sustainability targets, we also incorporate design for the future energy grid to ensure preparedness for a shifting energy market. We continue to design greener and more resilient buildings, in the face of ever-evolving physical risks due to climate change. We incorporate healthy building materials and sustainable practices into our development and operating strategies.

OPERATION

Recognizing the importance of moving away from fossil fuels, we actively take steps toward the electrification of our energy sources and purchase renewable energy credits and carbon offsets in local markets across the country. Through our green commitments and Rose Solar, we reduce the climate impacts of our communities and help make them more resilient in the face of climate change. We integrate management of physical risks into our overall risk management strategy, not just at the asset level through rigorous due diligence, but also at the portfolio level. Recently, we have conducted a portfolio-wide risk assessment of current and future climate hazards for each asset in our portfolio. Working with property and facilities staff and our insurance carriers, we evaluate which risks are most relevant to each property, assess current preparedness, and make recommendations to improve resilience.

Rose Companies Portfolio Characteristics1

GRESB

5,462,698

OVER TIME4

Environmental Performance6

The Rose Companies portfolio has reduced its collective emissions intensity by 8%, its energy use intensity by 6% and its water use intensity by 7% against a combined baseline.

Annual Net Avoided Emissions7

Each year, the Rose Companies portfolio can account for its net avoided Greenhouse Gas Emissions at each owned property against baseline year emissions. The waterfall chart below shows the net annual avoided emissions for the portfolio cumulatively from 2008 through 2020.

TOTAL EMISSIONS AVOIDED 3,756 MTCO2e

EQUIVALENT TO CARBON SEQUESTERED BY 249,132 TREES GROWN FOR 10 YEARS

(6) This data reflects the sum of annual consumption data for owned and realized assets as of December 31, 2020 (for owned assets) or the last available year of data (for realized assets) against a blended baseline. The blended baseline establishes an emissions intensity, energy use intensity, and water use intensity for the portfolio using 12-months of utility data prior to, or immediately following acquisition of each property divided by the total floor area. Performance data was calculated and verified by CodeGreen Solutions using utility data tracked in Energy Star Portfolio Manager.

(7) Custom analysis performed by CodeGreen Solutions utilizing third-party verified emissions performance data tracked in Energy Star Portfolio Manager.

Monitoring and Reporting Environmental Data

Closely monitoring and tracking the environmental performance of our properties is paramount to successful and persistent delivery of climate impact. We continuously benchmark property performance using utility bill data. Every property we build or acquire is enrolled in Bright Power’s EnergyScoreCards software platform to digest utility bill data, analyze end-use energy data and compare performance across the portfolio and against peer properties to help inform actionable improvements. In addition, we track implemented energy and water conservation measures, along with financial data, to perform measurement and verification of impact. Within our culture of continuous improvement, we use performance data to make adjustments and inform future projects.

We also utilize the ENERGY STAR Portfolio Manager software tool, by the U.S. Environmental Protection Agency, to evaluate energy efficiency relative to a national standard. To assess whole-building energy efficiency, we work with utility providers to access aggregate utility consumption data, and in the absence of that, collect data releases from tenants to estimate whole-building performance. Our emissions calculations are based on World Resource Institute’s Greenhouse Gas Protocol utilizing Portfolio Manager data.

Our comprehensive environmental reporting program ensures that stakeholders are well informed. We deliver property performance reports quarterly to property teams and update executives and investors on property and fund-level environmental performance on a quarterly basis. Annually, we respond to the Global Real Estate Sustainability Benchmark (GRESB)1 platform for all our investment funds, including voluntary modules such as Resilience as appropriate. Further, we annually publish an Impact Report to summarize social and environmental performance and highlight case studies to share successes and learnings.

PLANS AND POLICIES

Environmental policies touching on a wide range of topics are implemented across business units and guide our approach to addressing critical health and environmental issues. Our environmental policies include:

• Greenhouse Gas Emissions management

• Energy management

• Water management

• Waste management

• Construction Waste management

• Indoor Environmental Quality

• Healthy Building Materials

• Resilience

• Biodiversity and Habitat

• Active Living

• Green Power Procurement

• Integrated Pest Management

• Green Cleaning and Janitorial Requirements

About This Report

This is Jonathan Rose Companies 2021 annual Impact Report, preceded by our Environmental Sustainability reports. Unless otherwise stated, all performance data is reported for calendar year ending December 31, 2020. Like-for-like performance metrics included in the report have been externally verified by CodeGreen Solutions.

To provide feedback or request additional information, please email: Lauren Zullo,

Director of Environmental Impact

at lzullo@rosecompanies.com.

For more information, please visit: www.rosecompanies.com.

DISCLOSURES

This Impact Report (the “Report”) prepared by Jonathan Rose Companies (the “Company”) is provided for informational or educational purposes.

A reader of the Report may not rely on this material as the basis upon which to make an investment decision. This material does not purport to be complete on any topic addressed. The Report does not constitute a solicitation in any jurisdiction. Moreover, this Report neither constitutes an offer to enter into an investment agreement with the recipient nor an invitation to respond to it by making an offer to enter into an investment agreement. Any potential investment managed by the Company, or its affiliates, will be suitable only for certain financially sophisticated and qualified investors who meet certain eligibility requirements.

The Report is not intended to provide, and should not be relied upon, for tax, legal, accounting, or investment advice. Individuals should make their own investigations and evaluations of the information contained herein and consult their own attorney, business adviser, and tax adviser as to legal, business, tax, and related matters concerning the information in this Report.

The properties appearing throughout this Report are representative properties related to certain of the Company’s activities. Information about such properties is provided for informational purposes only. There can be no assurance that the Company or an affiliate of the Company will invest in or manage similar properties.

This Report may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of expense savings, and proposed or expected activities. Moreover, certain historical performance information has been included in this material and such performance information is presented by way of example only. No representation is made that the performance presented will be achieved by any current or future projects or investments, or that every assumption made in achieving, calculating or presenting either the forward-looking information or the historical performance information herein has been considered or stated in preparing this material. Any changes to assumptions that may have been made in preparing this Report could have a material impact on the performance that is presented herein by way of example.

This Report is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this Report are derived from proprietary and non-proprietary sources deemed by the Company to be reliable, and not necessarily all-inclusive and are not guaranteed as to accuracy. There is no guarantee that any forecasts made will come to pass. Any properties named within this Report may not necessarily be held in any funds or accounts managed by the Company or any affiliate of the Company. Reliance upon information in this Report is at the sole discretion of the reader.

The investment strategy employed by the Company and/or its affiliates involves the purchase and development of land and real estate. Thus, any portfolio that employs this strategy may experience more volatility and be exposed to greater risk than a more diversified investment portfolio. Real estate investments are subject to the risks incident to the development, ownership, and operation of real estate, including, among other things: (i) local real estate and financial conditions; (ii) risks due to dependence on cash flow; (iii) changes in availability of financing at attractive pricing; (iv) changes in tax, real estate, environmental and zoning laws and regulations; (v) natural disasters; and (vi) the ability of the sponsor to manage the properties and service providers. The characteristics of any future projects or investments may vary from the characteristics of those shown herein and may not have comparable risks and returns. A project or an investment made by the Company on behalf of its clients is speculative and involves significant risks, including loss of the entire investment.

Past performance may not be indicative of future results. The reader should not rely upon the historical data referred to in any of the case studies in making any investment decision. It has not been audited or otherwise verified by any outside party and should not be construed as representative of the investment experience or returns that may be achieved in the future by the Company.

GRI Standards Content Index

DISCLOSURE NUMBER

DISCLOSURE TITLE

GRI 302: Energy 2016

302-1 Energy consumption within the organization

302-3 Energy intensity

302-4 Reduction of energy consumption

GRI 303: Water 2016

303-1 Water Withdrawal by source

GRI 305: Emissions 2016

305-1 Direct (Scope 1) GHG emissions

305-2 Energy indirect (Scope 2) GHG emissions

305-5 Reduction of GHG emissions

GRI 401: Employment 2016

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees

GRI 404: Training and Education 2016

404-3 Percentage of employees receiving regular performance and career development reviews

GRI 405: Diversity and Equal 2016

405-1 Diversity of governance bodies and employees

GRI 413: Local Communities 2016

413-1 Operations with local community engagement, impact assessments, and development programs

DISCLOSURES

Environmental Performance

Environmental Performance

Environmental Performance

Environmental Performance

Environmental Performance

Environmental Performance

Environmental Performance

Who We Are

Who We Are

Who We Are

Who We Are

TCFD Disclosures

TCFD DISCLOSURES REFERENCE/LOCATION

Governance: Disclosure the Organization’s Governance around climate-related risks and opportunities

a) Describe the board’s oversight of climate-related risks and opportunities

Jonathan F.P. Rose, who is the President and Founding Partner of the company, serves as the senior decision maker on climate-related risks, opportunities, and issues. Mr. Rose and Partners receive quarterly reports detailing portfolio and asset level performance on ESG topics. In addition, Jonathan Rose Companies conducts annual meetings with the Management Committee about sustainability performance including GRESB results, identified risks and opportunities related to climate, and the ESG progream in general to discuss upcoming priorities. Annual reporting covers updates on long-term strategic objectivs, updates and notification regarding regulatory changes, and updates regarding proposed actions to improve the performance of the assets.

b) Describe management’s role in assessing and managing climaterelated risks and opportunities

At Jonathan Rose Companies, we assess risk from the very earliest stages and incorporate investment and operational strategies to mitigate risk and enable continuous, safe operations across our entire portfolio and within each business practice. We actively focus our investments in economically resilient markets and, when possible, aim to acquire properties and locate new development projects in areas with limited exposure to current and future climate hazards. Our investment strategy applies basic real estate principles to increase value, while taking advantage of our competitive position in the market and our sophisticated partnership and debt structures to add value. Our business strategy is designed to deliver social and environmental impact as well as competitive, risk-adjusted market returns in our asset class. In alignment with this strategy, resiliency is incorporated into all business practices: New Development, Acquisitions, Asset Management and Operations, and Investor Relations. Annually, members representing each of these groups convene as the Risk & Resilience Committee for a company-wide evaluation of resiliency strategies, sharing lessons learned, and determining strategy for the coming year. To help lessen our demand for natural resources and improve the health and safety of our residents, Jonathan Rose Companies invests in the energy efficiency, water conservation and resilience of our buildings, in turn mitigating climate change and reducing our operating costs. These strategies provide economic resilience and add value to our properties, strengthening our financial returns and allowing us to ultimately deploy more capital to achieve even deeper impact.

Strategy: Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material

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

Jonathan Rose Companies has identified a number of phsycial, transitional, and social risks including:

- Enhancing emissions-reporting obligations (short to medium term)

- Costs to transition to lower emissions technology (medium to long term)

- Acute hazards such as severe storms and flooding (short term)

- Chronic stressors such as drought, heat, and rising sea levels (long term)

- Potential shifts in consumer behavior (long term)

However, Jonathan Rose also views the risks posed by climate change as opportunities to improve efficiency, planning, and resiliency of our assets. Opportunities include incorporating design for the future energy grid and decarbonization which will make our assets more competitive and resilient for tenants and investors, designing space for social cohesion which will foster community connectedness and identify local partnerships to enhance our placement in the communities in which we operate as well as the value to our tenants, and maintaing our position as a leader in the industry.

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

Impacts of climate-related risks include:

- Capital investments in technology developments

- Costs to adopt/deploy new practices and processes

- Abrupt and unexpected shifts in energy costs

- Increased operating costs from fines and/or government requirements

TCFD DISCLOSURES REFERENCE/LOCATION

c) Describe the resilience of the organization’s stratregy and financial planning

Resiliency is incorporated into all business practices: New Development, Acquisitions, Asset Management and Operations, and Investor Relations. Annually, members representing each of these groups convene as the Resiliency Committee for a company-wide evaluation of resiliency strategies, sharing lessons learned, and determining strategy for the coming year.

As we evaluate potential properties for acquisition, we consider the likely risks for a property based on its location, such as flood, earthquake, extreme storms, or tornados. We do not invest in properties with severe, imminent risk, such as those located in a flood plain unless the property has sufficient existing or planned infrastructure to sustain operations. However, some risks are so widespread within a market that they are somewhat unavoidable – such as earthquake risk in California or tornado risk in the Midwest. In these locations, we evaluate building construction type, condition, and structural integrity for resilience against the local risks and will only move forward with properties that are wellsuited to withstand severe events. In our deal underwriting, we include budget for capital improvements to enhance the resiliency of projects. For example, if a property does not have an emergency generator we will underwrite the investment to include installation of a generator.

We manage funds with a strong focus on social and environmental impact, we have spent years developing our approach resiliency planning and investment, which reduces risk to our investors and makes our communities stronger. The environmental and social focus of our firm enhance our portfolio’s resiliency because energy efficient buildings are inherently safer in extreme climate conditions and the social cohesion spurred on by resident engagement and social programming creates bonds that are crucial to survival of the most vulnerable populations in an emergency.

Traditional communication with investors about resiliency may begin and end with investment criteria: “how much risk can we tolerate, and thus which properties are suitable for investment?” However, fund managers with a focus on sustainability and resiliency like Jonathan Rose Companies are concerned with the long-term performance of properties, and continually assess, improve, and monitor properties to optimize financial, environmental, and social impact. Tools like GRESB have long been an important means of communication between managers and investors – allowing outside parties to see environmental, social and governance indicators through the lens of a neutral third party. As the real estate industry evolves and responsible investment increases, GRESB has responded by adding modules related to health and well-being, and risk and resiliency. Jonathan Rose Companies is proud to have responded to both, which helps us refine our approach by understanding what else industry peers may be doing, and to help shape future GRESB reporting by identifying gaps or opportunities for more transparency.

Risk Management: Disclose how the organization identifies, assesses, and manages climate-related risks

a) Describe the organization’s processes for identifying and assessing climate-related risks.

To future-proof our portfolio, we have developed a resilience policy that addresses three key types of risk: physical, social, and transitional. During due diligence of investment properties and the design of new developments, we undertake a series of assessments and studies to identify and mitigate risk. Jonathan Rose Companies prioritizes transition risks, or risks that assume a market transition to a low-carbon economy, by preparing and actively participating in policy and regulatory design, such as New York City’s Climate Mobilization Act. In anticipation of regulatory risks such as this, we design and budget for our buildings accordingly. For example, in anticipation of organic waste requirements, our infrastructure design incorporates organic waste collection elements. Our buildings also prioritize transition risks by incorporating design for the future energy grid into the construction phase at our assets. We continue to design greener and more resilient buildings, incorporating healthy building materials and sustainable practices into our development and operating strategies. Recognizing the importance of moving away from fossil fuels, we are actively taking steps toward the electrification of our energy sources and are purchasing renewable energy credits and carbon offsets in local markets across the country. Through our green commitments and Rose Solar, we reduce the climate impacts of our communities, and help make them more resilient in the face of climate change.

TCFD Disclosures (Cont.)

TCFD DISCLOSURES REFERENCE/LOCATION

b) Describe the organization’s processes for managing climate-related risks. Risks include transition, physical, and social risks.

Jonathan Rose Companies’ process for identifying, assessing, and managing physical risks starts with assessing the property for current and future risk based on location. We then evaluate the regionally identified climate priorities and design our systems to address. For our New Development projects, we undertake a series of assessments and studies to identify and mitigate risk. These include conducting regional risk assessments in all our target markets to identify climate scenarios that could jeopardize physical assets. As we evaluate potential properties for acquisition, we consider the likely risks for a property based on its location, such as flood, earthquake, extreme storms, or tornados. We do not invest in properties with severe, imminent risk, such as those located in a flood plain. However, some risks are so widespread that they are somewhat unavoidable – such as earthquake risk in California or tornado risk in the Midwest. In these locations, we evaluate building construction type, condition, and structural integrity for resilience against the local risks and will only move forward with properties that are well-suited to withstand severe events. In our deal underwriting, we include budget for capital improvements to enhance the resiliency of projects. For example, if a property does not have an emergency generator we will underwrite the investment to include installation of a generator.

c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management. Risks include transition, physical, and social risks.

Jonathan Rose Companies integrates the management of transition risks into overal risk management by preparing and actively participating in policy and regulatory design, such as New York City’s Climate Mobilization Act. Energy and climate regulations in regions and cities where we operate are leveraged as guides for a comprehensive strategy of risk management integration. For example, we evaluate our compliance status with legislation related to our carbon footprint and measuring the financial impact of energy and climate legislation by assessing the financial risk of non-compliance with Local Law 97 for our New York City assets, as well as Washington DC’s Building Energy Performance Standards (BEPS) for our assets located in that region. Regarding market risks, we evaluate abrupt or unexpected changes in energy costs and market perceptions by investors and tenants. Technology risks related to capital investments in low-carbon technology are evaluated in conjunction with evaluating innovative technologies to help mitigate risks, including battery storage, renewable energy, lighting and controls, building management systems and equipment.

We integrate management of physical risks into our overall risk management strategy not just at the asset level through rigourous due diligence processes, but also at the portfolio level. Recently, we have conducted a portfolio-wide evaluation of current and future climate risks identified at the city- or county-level. Working with property and facilities staff and our insurance carriers, we evaluate which regional risks are most relevant to each property, assess current preparedness, and make recommendations to improve resiliency. Recommendations include both operational and physical, capital improvements.

• Operational and low-cost improvements include measures such as improving resident communication and strengthening community ties, relocating an evacuation site, or ensuring that the property has proper emergency supplies, like water and a radio, on hand. These changes can be implemented quickly and easily.

• Physical adaptations require capital planning and include measures such as elevating electrical panels or other pieces of critical equipment, adding floodproofing or sump pumps, or adding sources of backup power among other measures. Fortunately, many adaptation measures that increase the passive survivability of a building align with improvement we already typically make for energy efficiency improvements, like improving wall and roof insulation or installing energy efficient windows. Risk and resiliency assessments are then incorporated into capital planning for each property and are evaluated alongside other resources like energy audits and property condition reports to inform the 5-year capital expense budget. Importantly, resiliency can be improved as part of typical improvements – not simply as standalone projects.

TCFD DISCLOSURES REFERENCE/LOCATION

Metrics and Targets: Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material

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

Properties are assessed and scored on an asset by asset basis against 14 hazard categories which are broken into “acute hazard” and “chronic stressor” category as follows:

Acute Hazards:

- ExtraTropical Storm

- Flash Flood

- Hail

- River Flood

- Storm Surge

- Tropical Cyclone

- Severe Winds

Chronic Stressors:

- Drought

- Wilfire

- Heat Stress

- Heavy Rain

- Rising Mean Temperatures

- Rising Sea Levels

- Erosion

In addition, Jonathan Rose Companies designs with regulation in mind. Acquisition Managers and Asset Managers have periodic discussions regarding what new policy or laws are expected to come into effect that could impact the property in the future. Based on these discussions, assets are designed and have budgets for anticipated regulatory changes.

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

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

Scope 1 (Total Funds): 14,326.10 mtCO2e

Scope 2 (Total Funds): 12,993.64 mtCO2e

Scope 3 (Total Funds): 1,926.09 mtCO2e

Portfolio GHG Emissions: 54,948 mtCO2e

In order to reduce our impact on the environment, we have set forth a series of climate change mitigation goals for our portfolio. These mitigation goals aim to reduce the emissions, energy, water use and landfill waste from our properties over time. We establish a baseline for each property and actively work to achieve the goals by implementing improvements and continuously monitoring performance. We strive to achieve the targets at each individual property to contribute to our overall portfolio goals.

- Reduce carbon dioxide equivalent (CO2e) emissions intensity by 20% or more from baseline year*.

- Reduce energy intensity by 20% compared to baseline.

- Reduce water intensity by 15% compared to baseline

- Increase the amount of waste diverted from landfills by 15% from baseline.

*Baseline for investment properties is defined as the 12-month period immediately preceding acquisition or the first 12-month period for which full utility consumption, demand, and cost data is available. The goal timeline is within 10 years of acquisition. Baseline for new development properties is a comparable energy code compliant building.