This presentation is a short overview of the fundamental concepts of responsible property investing. Responsible Property Investing is expanding to include metrics that provide investors guidance on how to measure social responsibility within their portfolios and to compare social responsibility between different property portfolios.

1. RPI Helps Your Sustainable Business Case December 2009

2. What is responsible property investing & why is it relevant? The RPI principles Case studies in applying RPI Next steps and resources www.galleyecocapital.com 2 Overview

3. When you are judging different real estate investments or portfolio’s, how do you know if you’re doing a good enough job at evaluating the socially responsible opportunities that are being addressed with your capital? www.galleyecocapital.com 3 It’s green with market returns – that enough?

4. What is RPI? Definition of responsible property investing Principles of Responsible Property Investing UNEP - F.I. RPIC "RPI takes into account the social, ethical and environmental factors in the selection, retention and realization of investment, and the responsible use of rights attached to such investments." www.galleyecocapital.com 4

5. Who is involved? Institutional real estate investors Kennedy Wilson Bay Area Council TIAA-CREF Rose Smart Growth Fund Financial institutions “Over 170 institutions, including banks, insurers and fund managers, work with UNEP to understand the impacts of environmental and social considerations on financial performance.” (UNEP-F.I.) Third party fund managers & consultants www.galleyecocapital.com 5

6. Current real estate practice Current industry practice No uniform standard of assessment or reporting of ESG issues within property portfolios “Trophy” green properties featured on corporate brochures www.galleyecocapital.com 6

7. www.galleyecocapital.com 7 Why is responsible property investing relevant? "There is a strategic link between investment and sustainability" Unable to compare investment portfolio's with ESG characteristics Green is not the same as triple bottom line Benchmarking & metrics important to demonstrate performance

8. www.galleyecocapital.com 8 Why is responsible property investing relevant? RPI provides feedback on ESG performance that can be compared over time and across portfolio’s.

9. The RPI Principles Energy conservation Energy use CO2 emissions intensity Environmental protection Total annual water use Solid waste generation water management fees Urban revitalization and adaptability Brownfield redevelopment Infill redevelopment www.galleyecocapital.com 9 Closest links to tangible value impacts.

10. The RPI Principles (2) Smart growth and TOD Walkscore rating Health and safety Vulnerable location; earthquake zone Worker well-being Tenant satisfaction surveys Social Equity and community development Benefits to CRA area Local citizenship Community engagement www.galleyecocapital.com 10 Social engagement including resident/occupant input.

11. The RPI Principles (3) Voluntary certification LEED Energy Star Governance Reporting performance www.galleyecocapital.com 11 Adherence to external standards

12. How can investors apply RPI? Get “Metrics for Responsible Property Investing: Developing and Maintaining a High-Performance Portfolio” Use cases Acquisition BAC Portfolio TIAA-CREF Build from existing ESG program Tangible links to value Opportunity analysis www.galleyecocapital.com 12

13. www.galleyecocapital.com 13 Get plugged in http://www.galleyecocapital.com info@galleyecocapital.com 71 Stevenson Street #400 San Francisco, California 94105 (415) 655-6668 Presented by: Lisa Michelle Galley Managing Principal lisa@galleyecocapital.com

14. Resources Galley Eco Capital can assess financial impact of sustainability within your portfolio Financial impact of sustainability strategy ESG analysis and measurement Request a copy of report "Metrics for Responsible Property Investing“ from info[at]galleyecocapital.com Principles for Responsible Investment from UNEP-F.I. Get RPI case studies Environmental & Social Responsibility Observatory Responsible Property Investing Center www.galleyecocapital.com 14