ANNUAL REPORT

2021 - 202 2 | E SG
 LETTER FROM
Quarterra Multifamily

As we move into 2023, I am confident in our steadfast

THE PRESIDENT commitment to our teams, our partners, our residents,

and the communities in which we operate.

2022 was a whirlwind. Our industry, and the Finally, this year challenged our teams in new
world, has truly persevered and thrived after and exciting ways as we ventured to rebrand from
the challenges that 2020 and 2021 brought us. LMC to become Quarterra. We chose a name that
Quarterra (more on that below) continued to encompasses the major facets of our business ­—
realize success in all facets of our business, homes and land ­— represented by a portmanteau
including the development and management of Quarters (living space) and Terra (land).
of a modern and diverse multifamily portfolio. We believe this new name is a stronger
representation of our mission to deliver
Over the last couple of years, our teams have
extraordinary communities for people to live
worked hard to build and implement a deep
remarkably, and more closely aligns with our ESG
environmental, social, and governance (ESG)
initiatives and responsible business practices.
program. A key component of our recent
initiatives is found in the diversification of As we move into 2023, I am confident in our
our portfolio, enabling us to focus more on the steadfast commitment to our teams, our
“S” of ESG — the social aspect of multifamily partners, our residents, and the communities
living. In January 2021, we opened Emblem in which we operate.
Greyson — the first of our Emblem Communities We look forward to continued collaboration
program created specifically to combat the and innovation with a culture that values the
nationwide shortage of attainable housing for environment, empowers social equity, and
middle-income earners. strives for transparency. We are confident that
Our executive team continues to thoughtfully a promising future awaits us.
and strategically work with our trusted partners Thank you for your ongoing partnership.
to make our ESG initiatives a reality. We found
ways to bring more smart technology into
our apartment homes and business practices,
cultivated partnerships to bring more local
art and neighborhood involvement into our
TODD FARRELL
communities, implemented more programs for
PRESIDENT, QUARTERRA
affordable housing, and engaged more sustainable MULTIFAMILY AND SFR
best practices to develop processes and optimize
our environmental efforts.

2| Letter from the President | 3

Quarterra Multifamily

TABLE OF CONTENTS
Letter from the President 2 Community Solar Option for Residents 40

Table of Contents 4 Sustainability Attributes 42

Introduction 6 Site Remediation in Emeryville, CA 44

Company Profile 8 Social 46

Stakeholder Engagement 11 Associate Engagement 48

Approach to ESG 12 Diversity, Equity,

& Inclusion 53
Awards & Recognition 14
Resident Engagement 54 With support from our ESG consultant, Verdani
19th & Harrison Wins Sustainable
Community of the Year 16 Community Engagement Partners™, the Quarterra Multifamily ESG
& Philanthropy 58 Committee prepared this report in alignment
Governance 18 Delivering Affordable Housing
with the Global Reporting Initiative’s (GRI®)
2016 Standards. This report shares quantitative
Governance Structure 20 Through Quality at Scale 62
and qualitative information addressing
Executive Management Diversity 22 Preparedness Shines in Texas ESG topics that are material to Quarterra
Freeze Response 65
Multifamily (QM) and our stakeholder groups.
Business Ethics, Policies, & Procedures 23
Partnerships & Programs 66 The quantitative environmental performance
Business Risk Management 24 data reflects the 2021 calendar year. Significant
Environmental Management System 25 Reporting developments occurring in early 2022 may also
& Disclosure 68 be referenced where appropriate. All information
Environmental 26 presented throughout the report represents
Reporting Methodology 70
QM’s portfolio, with much of it building from
Performance Metrics 28
The Global Reporting Initiative 71 the initiatives discussed in our previous ESG
Environmental Risk Management 30 report published on December 16, 2021.
Sustainable Operations & Initiatives 34

Certified Properties 38

4| Table of Contents | 5
INTRODUCTION
 $10B COMPANY Assets Under Management
Quarterra Multifamily

PROFILE
As of December 31, 2021, Quarterra Multifamily had over $10.2 billion in assets under management
GROSS MULTIFAMILY ASSETS (AUM). The majority of AUM are from assets that are owned within build-to-core funds that
UNDER MANAGEMENT
are capitalized alongside a diverse range of institutional investors spanning both national and

15TH international partners, including pension funds, sovereign wealth funds, insurance companies,
private equity companies, large commercial banks, and high-net-worth individuals.
LARGEST BUILDER ACCORDING
TO NMHC’S 2021 TOP 50

60
OPERATING COMMUNITIES

100+ $1,067

DEVELOPMENTS CAPITALIZED AUM BY PROPERTY STATUS ($M)

SINCE INCEPTION
$5,710 $2,697 Operating Under Construction

22,000
Lease-up Predevelopment

$741
UNITS IN PIPELINE FOR
DEVELOPMENT

752 Quarterra Multifamily is a vertically integrated and

highly collaborative multifamily real estate developer that
ASSOCIATES
meshes the buying power of a big company with the local

20
expertise of a small firm. Our highly collaborative approach
to investment, development, and property management
services allows for seamless operations that drive the $2,215 AUM BY REGION ($M)
OFFICES
creation of extraordinary apartment communities.
$5,291

41,610
West East
We continue to develop quality high-rise, mid-rise,
$1,786 South Midwest
and garden apartment communities across the U.S.
* Regions aligned with the NCREIF Property Index.
LEASED SINCE INCEPTION Developing exceptional living environments requires a
unique lens for each location. This enables QM to enrich $923
*All data shown as of Q4 2021. the neighborhoods in which we build and truly serve the
people who call them home.

8 | INTRODUCTION Company Profile | 9

Quarterra Multifamily

STAKEHOLDER
ENGAGEMENT
Stakeholder engagement is a critical aspect of our business. Collaboration between Associates is a pillar
of our success. Understanding the residents and neighborhoods we serve enables us to empower and
uplift communities. Engaging with our capital and trade partners helps align our corporate objectives
and values in an effort to achieve outsize, risk-adjusted returns for our capital partners.
Intentional and meaningful engagement with our stakeholders enables us to focus our ESG program and
drive performance that aligns our corporate objectives with our communities’ needs.

Internal • Associates
Stakeholders • Executive Leadership

External • Residents
Stakeholders • Capital Partners

• Local Community Partners

• Trade Partners

10 | INTRODUCTION Stakeholder Engagement | 11

 APPROACH TO ESG
Quarterra Multifamily

Based on the results of our 2021 Materiality and Visioning surveys, QM has established brand language
and guiding principles to help steer our ESG program. This will provide clarity as we continue to
Goals & Targets
bolster our sustainability initiatives, community impact, and ethical leadership.
ENVIRONMENTAL
Guiding Principles
Environmental Social Governance Operational Efficiency
Demonstrate operational efficiency with energy, water, waste, and
emissions to reduce utility costs.
We believe in building better. We shape great American We are guided by prudent,
We shape great neighborhoods neighborhoods by caring for responsible, and ethical business
Minimize extreme weather and disaster risks to our communities by actively
with healthy buildings that care the people that live, work, practices that are integral Resilience
exploring strategies that strengthen our resilience.
for the environment by and play in our communities. to delivering outstanding
preserving natural resources We are passionate about results to the people and
Decarbonization Reduce our GHG emissions as we evaluate decarbonization targets.
and engaging green technology. our resident and Associate communities we serve.
satisfaction, health, and safety.
SOCIAL

Build a healthy and supportive culture to care for the well-being of the people
Health & Safety
who live, work, and play in our communities.

Inspire and engage our Associates and residents with training and education
Stakeholder Engagement
and serve our communities through active volunteerism and philanthropy.

Provide and support a sustainable, equitable, and inclusive corporate

Diversity, Equity, & Inclusion
structure to attract and retain a diverse group of talent.

ESG Mission ESG Vision

GOVERNANCE
We believe in creating We create a new spirit of
collaborative, sustainable living by crafting original, Exercise responsible business practices and conduct our work with
Ethical Leadership
communities. unique, and sustainable integrity and respect.

Together. communities for great

Secure our organization’s future through outstanding customer service,
neighborhoods. Risk Management
cybersecurity, risk evaluations, and corporate compliance.

Participate in benchmarking our ESG performance to share progress with

Reporting & Transparency
stakeholders and ensure corporate compliance of our portfolio.

12 | INTRODUCTION Approach to ESG | 13

 AWARDS &
Quarterra Multifamily

RECOGNITION
Quarterra Multifamily is proud to share the exciting industry recognition received by our Associates,
communities, and company in 2021.

Community Recognition
ORA POWER RANKINGS
Three QM communities ranked in the 2021 ORA™ Power Rankings Elite 1% Properties. Conducted by
the partnership of Multifamily Executive and J Turner Research, the assessment evaluates over 120,000
communities nationwide on a 0–100 scale by using a statistical model that aggregates property ratings
across multiple review platforms. Recognition in the Elite 1% means our communities ranked in the top
1,564 multifamily properties across the nation.
Palmera The Morris The Emerson
Doral, Florida Nashville, Tennessee Oak Park, Illinois

Company Recognition Associate Recognition

NATIONAL MULTIFAMILY FORBES COUNCIL
HOUSING COUNCIL (NMHC®)
Two of our senior-level Associates were invited into Forbes Councils for their respective roles, a

8th
testament to their leadership capacity and drive for excellence in their field.
Beth Tuttle, our Senior Vice President of Marketing, was invited to join the Forbes Communication
LARGEST DEVELOPER ON NMHC’S Council for executives in communications, marketing, and public relations.
TOP 25 DEVELOPERS
This marked the seventh straight year that Nicole Brown, our Human Resources Director, was invited to join the Forbes Human Resources
QM has been recognized in the top 10 of this Council for HR executives across industries.
esteemed category.
Internal Awards
15th QM also maintains internal awards to recognize exceptional contribution from Associates and
communities toward implementing strategic initiatives, upholding our mission, and advancing
ON NMHC’S TOP 25 BUILDERS 2021 LIST
our ESG program.

14 | INTRODUCTION Awards & Recognition | 15

 SPOTLIGHT
Quarterra Multifamily

19TH & HARRISON

WINS SUSTAINABLE
COMMUNITY OF
THE YEAR

#1 LOWEST ENERGY USE

PER SQUARE FOOT #3 LOWEST WATER USE
PER SQUARE FOOT

In 2021, we added recognition for Sustainable Community of the Year to our internal awards.
This went to the community that demonstrated the most valiant sustainability performance
throughout the year. To be considered, communities had to have complete 2021 and whole-building
data. For final nominations, we conducted an analysis of the top five properties in 2021 in terms of
energy intensity, water intensity, and waste diversion rate. While many of our properties improved
their sustainability performance metrics in 2021, these three properties surfaced as top performers
across our assessment:
• Vireo: 4th in water use per square foot and waste diversion

• Gentry: 2nd in water use per square foot and 3rd in energy use per square foot

• 19th & Harrison: 1st in energy use per square foot and 3rd in water use per square foot

Ultimately, we awarded 19th & Harrison with this inaugural award as the community’s energy and
water intensity performance really shone. We are excited to continue driving performance across our
portfolio and look forward to recognizing other stellar communities in the years ahead.

16 | INTRODUCTION 19th & Harrison Wins Sustainable Community of the Year | 17

GOVERNANCE
At Quarterra Multifamily, we hold ourselves accountable to
rigorous corporate governance standards to ensure we exude
our core principles and drive performance through our highly
collaborative processes. With a commitment to transparency
and respect, QM aspires to always do the right thing for
the right reasons.
 GOVERNANCE Quarterra Multifamily
Quarterra Multifamily

JR PLYLER (COMMITTEE CHAIR)

Sustainability Committee
STRUCTURE
Investments —
Senior Managing Director

The Sustainability Committee meets bi-weekly with our GREG BELEW

ESG consultant to discuss key ESG projects and priorities. Development —
Division President (New York)
Composed of senior managers across departments, the
Leadership Structure Sustainability Committee reflects QM’s highly collaborative PAUL BERRY
business framework. This degree of company involvement Construction —
allows the Sustainability Committee to analyze our Safety & Environment Director
QM leverages an unconventionally collaborative approach across our business verticals: Development,
Construction, Investments, Property Management, and Support Disciplines (accounting, human standards and procedures throughout every stage of project WILL CANNON

resources, IT, risk management, legal, and tax). Our Sustainability Committee comprises members development — from site assessment, to construction, Development —

from across our primary verticals, fueling our ESG program with diverse perspectives and expertise. through to operation. To ensure communities maintain Development Manager

The QM Sustainability Committee is then governed via executive-level oversight. This structure expected efficiency thresholds, the committee oversees our
PETER CHMIELEWSKI
enables us to efficiently integrate and advance our ESG program throughout our vertically integrated annual green energy audits. LEED AP, Development —
City President (Chicago)
multifamily real estate company.
In 2021, the Sustainability Committee analyzed results from
PRISCILA GARCIA
our Materiality and Visioning surveys. These surveys gave Talent Acquisition —
insight into how QM’s internal and external stakeholders Senior Manager of Talent Acquisition
t perceive various ESG elements and to what extent
stmen HR LAUREN KYLE
e they impact our business and influence the surrounding
Inv Marketing­  —
environment. Noting these results empowered our team to Brand Manager
finalize the vision and mission for our ESG program and
t

JONI SAPPINGTON
Ac
en

begin development on our ESG goals. These goals will be

Manag erty
em

cou

Systems —
foundational to the targets we set and the strategies we
Prop

Director of Utility
nting

employ in the coming years. Management Solutions

Sustainability
ALICIA SCOTT
Committee Design —
Cons

r vi c r t

Senior Vice President

Se upp o
e

Quarterra Design
tru

/S
c ti

BETH TUTTLE
IT
on

De Marketing —
i
ve an Senior Vice President of Marketing
lo p
m ent Verd ers*
Pa rt n JOHNNY YATES
Construction —
Vice President of PreCon
* ESG Consultant

20 | GOVERNANCE Governance Structure | 21

 EXECUTIVE BUSINESS ETHICS,
Quarterra Multifamily

MANAGEMENT DIVERSITY POLICIES, & PROCEDURES

Integrity and respect resonate throughout all that we do at QM.

GENDER AGE With a commitment to transparency and strong business ethics,
we seek to build lasting relationships with our stakeholders and
demonstrate excellence through collaborative performance.
26% 29%
SENIOR LEADERSHIP:
47%
38 ASSOCIATES
74%
24% Integrity By Design Independent
At QM, we align ourselves with our parent Compliance
Male Generation X
company’s Code of Business Ethics and Conduct.
The Code documents the principles our
Department
Female Generation Y Associates are expected to uphold in delivering QM leverages Lennar’s internal compliance and
Boomers on our company ethos: Always do the right legal department for independent oversight of
ENTIRE WORKFORCE thing for the right reasons. legal and regulatory matters. QM is required to
Executing our motto requires that all Associates comply with the Lennar Code of Business Ethics
ETHNICITY GENDER AGE
embrace their responsibility to seek guidance and Conduct.
when needed, promote respect and inclusion,
conduct business with honesty and integrity, Transparency
26% 26% obey the law, and fulfill duties to our shareholders. QM is dedicated to transparency across all our
35%
61% 49% Commitment to these responsibilities reflects partnerships. Our teams nationwide have a
13% 65% QM’s core values of integrity, collaboration, shared commitment to conduct our business
25% and service. with the highest degree of integrity, respect,
There are numerous resources to support and professionalism. QM prides itself on robust
Associates if they require guidance on the correct and regular reporting, and we are dedicated
White Male 30-50
course of action. Beyond consulting a supervisor to providing customized reporting solutions
Minorities* Female 50+
or the Associate Reference Guide, Associates can tailored to the specific needs of our partners.
Unspecified Under 30
utilize Human Resources, the HR Cares Help Line,
* 11% Hispanic / Latino; 7% Black / African American; 4% Asian; 3.5% Two or More Races; the Ethics Hotline, or our Conflicts Committee.
0.5% Black/African American; 0.3% American Indian/Alaska Native.

22 | GOVERNANCE Business Ethics, Policies, & Procedures | 23

 BUSINESS RISK CASE STUDY
Quarterra Multifamily

MANAGEMENT ENVIRONMENTAL
MANAGEMENT SYSTEM
Quarterra Multifamily understands that business risks can emerge from many different angles.
QM aims to limit those risks by employing best practices across all aspects of the business.
Whether it be procuring the appropriate amount of insurance for a new development or enhancing
data security methods, our dedicated teams are constantly focused on business continuity through QM’s proprietary Environmental Management quality assurance reviews at multiple stages of
risk management. System (EMS) helps our teams integrate development. This extensive review gives both
environmental and regulatory compliance for QM and WWE the confidence to endorse our
Annual Audits federal, state, and local laws throughout all EMS as a comprehensive and streamlined guide
phases of the project cycle. Designed to make for managing environmental components of our
Our independent auditor, Deloitte, conducts annual audits across the entire multifamily fund
environmental compliance flexible and easy, developments.
platforms. In 2021, our multifamily fund audits represented seven months of work, or 5,200
the EMS communicates clear expectations to
hours across separate audits — using both GAAP and IFRS standards. As a representation of the As of the end of 2021, all current projects follow
Associates in an effort to minimize oversight
meticulousness of our internal reporting and accounting capabilities, zero Adjustments were passed our EMS. Our Associates have received company-
and reduce costs.
or recorded against us. wide EMS introductory training, and we plan
Our team employed a highly integrated approach to provide team-specific training to improve
Information Risk Management to design and create an EMS framework that program utilization in day-to-day operations.
would operate seamlessly alongside our project This has helped streamline planning for design,
QM employs its own hands-on approach to managing risk associated with cyber- and data security.
scope. This included involvement from key permitting, budgeting, and jurisdictional
With oversight from our Security Oversight Committee, our Enterprise Security Office is responsible
department directors across our internal team, compliance, resulting in less idle time and greater
for the implementation and upkeep of our Security Risk Management Program. This involves an
guidance from Environmental Protection Agency cost savings. Its utilization has been well received
annual company-wide risk assessment and ongoing review of our risk management strategy to assess
(EPA) resources, and collaboration with third- by both internal and external parties. The City
opportunities for improvement.
party legal counsel and an engineering firm. of Charlotte even recognized our local team for

Collaboration Protocol Throughout the EMS development process, excellence in compliance.

the environmental engineering firm Wright Based off the Deming cycle, our EMS is designed
QM’s Collaboration Protocol sets our proprietary process for embedding due diligence into the
Water Engineers, Inc. (WWE) provided us with for adaptive management that enables future
fabric of our business operations. The Protocol — with its succinct flowchart for operational best
guidance on the best ways to structure the EMS expansion and adjustments to the program.
practices and communication strategies — serves to promote synergy across our departments and
as well as embed key components, procedures, As the regulatory landscape changes, we will
optimize efficiency throughout the complete lifecycle of community development and management.
and other critical aspects. In addition, WWE’s have the capacity to evolve the EMS to maintain
This promotes transparency and consistency across our operations and provides a platform for
engineers and Certified Professionals in streamlined processes for optimal performance.
implementing best practices nationwide.
Erosion & Sediment Control performed

24 | GOVERNANCE Environmental Management System | 25

ENVIRONMENTAL
Being a responsible environmental steward is
another way Quarterra Multifamily demonstrates our
commitment to those we serve. Our focus on resource
conservation, electrification, and resilience strengthens
our performance and helps prepare our communities for
the changing climatic and regulatory conditions.
 PERFORMANCE METRICS
Quarterra Multifamily

BENCHMARKING
COMPLIANCE
26 26
TOTAL PROPERTIES IN COMPLIANCE

The annual performance metrics were calculated by considering only properties owned and
operational for the entire year with 12 months of data. In addition, when calculating energy
and greenhouse gas intensities, only properties with like-for-like data coverage were included.
Finally, all performance metrics were normalized by leased occupancy. The 2021 annual
performance metrics for the portfolio are as follows:

Energy Use Water Use

Intensity Intensity

In 2021, QM made significant strides toward enhancing data quality and expanding data coverage.
With the assistance of our ESG consultant, Verdani Partners, we were able to implement stronger data
management, enabling us to identify gaps, address incongruencies, and improve methodologies.
12.29 25.36 Between 2020 and 2021, our diligent improvement in data coverage led to increased visibility of
kWh/ft 2
Gal/ft 2
our energy usage, water consumption, and waste management.
• Energy usage: we performed an analysis to recognize and take advantage of ordinances
that require utilities to provide whole-building energy data. This allowed us to increase data
coverage for total gross floor area (GFA) from 48% in 2020 to 63% by the end of 2021.
Greenhouse Gas Waste Diversion
• Water consumption: we ensured all meters were properly accounted for, helping to improve
Intensity Rate
our water consumption coverage from 90% of GFA to 99% of GFA between 2020 and 2021.

• Waste management: we instilled a more comprehensive approach to our waste measurement

and tracking. Through improved methodology and more robust data collection, we were able to
increase data coverage for waste from 49% of GFA in 2020 to 94% of GFA by the end of 2021.

We continue to prioritize data management to further improve these data coverage metrics and

0.004
enhance community performance.

(tonne)/ft 2
20.1% QM is in compliance with 100% of the ordinances in the jurisdictions in which we operate that
require energy and water benchmarking.

28 | ENVIRONMENTAL Performance Metrics | 29

 ENVIRONMENTAL RISK Physical Risk Social Risk
Quarterra Multifamily

MANAGEMENT
With the support of our ESG consultant, Ensuring the safety of our residents and
QM performs annual regional risk assessments Associates is a critical element of our
that evaluate the potential significance of Environmental Risk Management program.
weather-related events on our communities. QM prioritizes emergency preparedness and
The assessment examines risks related to sea-level proper education to ensure our communities are
rise, flooding, storm surges, hurricanes, heat, aware of potential threats and how to respond
QM recognizes the impact that natural disasters and the changing climate can impose on our
and billion-dollar weather and climate disasters. to them. Our attention to safety enabled QM’s
business and communities. In an effort to stay resilient and successful against impending change and
swift and proactive approach to navigating the
unforeseen events, QM places acute emphasis on environmental risk management and the physical, Where appropriate, QM implements preventative
intense winter freeze that impacted Texas in
social, and transition risks associated with climate change. measures to prepare for worst-case scenarios.
February 2021.
For instance, QM installed a Cupolex® flood
Key support systems include our internal Risk Management team and our Environmental Management
prevention system and AquaFence® to help Beyond ensuring physical safety, we also
System. Our proprietary EMS incorporates due diligence and promotes clear communication across
prevent damage from excessive rains or flooding incorporate strategies that promote residents’
departments, helping foster collaboration and regulatory compliance throughout operations.
events at The Lively, our community in a flood- financial well-being. In the case of the 2021 Texas
prone location near the Hudson River in Jersey freeze, natural gas prices experienced incredible
City, New Jersey. spikes as high demand met debilitated energy
PHYSICAL SOCIAL TRANSITION Incorporating physical risk assessments into our supply. The utility policies that QM emphasized
for our residents maintained stable prices
Reduce disruption to Develop and operate Reduce the entity and due diligence processes helps protect our business
throughout the event, helping them heat their
building operations buildings that are building exposure from avoidable damage during development,
apartment homes without receiving crippling
in the case of extreme safe for our building to climate-related acquisition, and management of properties.
electricity bills.
weather events or occupants. transition risks, such Our 2021 Resilience Risk Assessment highlighted
long-term shifts in as changes in energy opportunities to take further preventative action Through vigilant monitoring of health and
• Building Safety
climate patterns. sources, shifts in at our communities in regions susceptible to safety incidents, QM expands and adjusts our
and Materials
energy costs, and drought, flooding, and wildfires. emergency preparedness plans on an ongoing
• Physical Site • Health, Safety, enhanced energy and basis to keep our residents and Associates safe
• Physical Structure and Well-being emissions reduction and confident in our communities.
• Physical Systems • Emergency Response reporting laws.

• Physical Operations • Transportation • Policy / Legal

• Biodiversity • Socio-economic • Energy Supply / Market

Considerations • Transportation
• Climate Change
Adaptation • Environmental Risks • Electrification
• Flooding / Sea Level • Resilience / Technology /
Rise / Water Supply Reputation
• Occupant Needs
• Financial Impacts • Insurance
• Contamination

30 | ENVIRONMENTAL Environmental Risk Management | 31

 Transition Risk Resilience Risk Assessments
Quarterra Multifamily

QM implements protocols and practices that keep QM institutes proper planning to enhance the resilience of our communities and the safety of
our business prepared for the changing climate and our residents and Associates. We issued a Resilience Risk Assessment report to identify the best
regulatory landscape. This starts with adequate insurance resilience measures for implementation across our portfolio. The process started by using heat maps
coverage to ensure our communities are protected from and GIS to attain a regional risk assessment and followed with a resilience survey to understand
potential environmental hazards. Regional and asset-level community-level risks.
assessments have led QM to procure earthquake, fire, and Of the 52 indicators assessed in the report, 73% addressed community-level risk and 27% pertained to
flood insurance for various properties across our portfolio. regional-level risk. The indicators evaluated included physical, social, and climate-related transition
In addition, QM’s efforts improve resilience and help risks in alignment with GRESB Real Estate Assessment and the Task Force on Climate-related
prepare for the shifting regulatory landscape. This involves Financial Disclosure (TCFD). This comprehensive assessment highlighted which communities are
electrification and energy efficiency projects that reduce in potentially distressed areas and what measures should be considered to bolster resilience and
our dependency on fossil fuel sources. This creates healthier minimize vulnerability.
living environments for our residents and insulates our The chart below shows the regional risks assessed.
business from the impact of more stringent green building
codes. QM already complies with Title 24 in California,
Denver’s Green Buildings Ordinance, and the Austin
Energy Code. Our diligence keeps us prepared for future Portfolio Risk Assessments (63 Communities Assessed)
regulatory mandates.
Beyond our own property compliance, we evaluate supply Wildfire
Wildfire Risk
Risk

chain conditions to better prepare for rising raw material

Aqueduct/Water
Aqueduct/Water Risk
Risk
costs and other logistical disturbances. For instance, lumber
experienced considerable price hikes in December of 2020 Sea
Sea Level
Level Rise
Rise Risk
Risk a‡er
a‡er 2100
2100
and 2021 that carried into the new year. While we may not
be able to perfectly time the market, QM analyzes various Sea
Sea Level
Level Rise
Rise Risk
Risk by
by 2100
2100

factors, including both current and future market conditions,

Flood
Flood Risk
Risk
to determine optimal timing for material procurement in an
effort to reduce costs throughout development. Billion-Dollar
Billion-Dollar Weather
Weather
and
and Climate
Climate Disasters
Disasters
To varying extents, all our stakeholders are becoming more
Social
Social Vulnerability
Vulnerability
aware of ESG issues and their value in shaping sustainable, to
to Sea
Sea Level
Level Rise
Rise
resilient, and thriving communities. Recognizing this
Median
Median Air
Air Quality
Quality Index
Index
growing prevalence, QM performs benchmarking, certifies
our properties, and conducts ESG reporting. These initiatives Walk
Walk Score
Score
support our compliance with local and federal regulatory
0
0 10
10 20
20 30
30 40
40 50
50 60
60 70
70
requirements and our efforts to communicate with all
stakeholders with transparency and integrity. Number
Number of
of Low
Low Risk
Risk Properties
Properties Number
Number of
of Medium
Medium Risk
Risk Properties
Properties Number
Number of
of High
High Risk
Risk Properties
Properties

32 | ENVIRONMENTAL Environmental Risk Management | 33

 SUSTAINABLE Resource Conservation Bower implemented water submetering to
Quarterra Multifamily

better identify and respond to inefficiencies or

Strategies
OPERATIONS
malfunctioning equipment.
QM aims to reduce our resource intensity where Waste diversion strategies are also significant

& INITIATIVES
possible. 2021 marked the second year of using measures to promote more circular living
paperless lease agreements. This saves over a and prevent excessive landfill buildup.
million pieces of paper a year, or roughly 50-100 Our communities at Odin, The Bower, and 19th
trees. In addition, nearly all our apartment homes & Harrison all implemented recycling programs
utilize light drywall that uses less material and is in 2021 to join a growing list of communities that
25% lighter than standard drywall. are actively working to boost their waste diversion
We think and act with the environment in
We strive to preserve water through efficient rates. In addition, 19th & Harrison started a
mind. This promotes dynamic benefits, further
appliances and ongoing implementation of composting program to prevent food scraps and
encouraging QM to focus on sustainability
conservation initiatives. A majority of our kitchen landscaping waste from entering landfills.
initiatives for the betterment of our residents,
communities, and business. and bathroom faucets are WaterSense® certified. QM also incorporates recycled materials in our
Also, we typically utilize toilets with flush rates apartment homes and in the construction phase
of 1.4 gallons per flush (gpf ) for apartment of development. We use carpet pads that contain
homes and 1.2 gpf in leasing or club amenities. recycled material, and the brown cellulose in our
For 2021 initiatives, our Odin and The Bower formaldehyde-free insulation is composed almost
communities reimagined their landscaping with entirely from recycled materials. For vinyl flooring,
To reduce our environmental drought-tolerant, native vegetation. This helps we often utilize PET Enhanced Plank made from
lower irrigation needs and benefits biodiversity 40% recycled content. Moreover, QM partners
footprint, QM works with
Advancing Electric by supporting local wildlife and pollinators. with suppliers that offer sustainably sourced
suppliers that are committed
Vehicle Initiatives To help optimize remaining irrigation needs,
these two communities also installed drip and
materials. Most of the steel we use is recycled
to sustainable procurement or multi-cycled, and most of our lumber supply
QM has formed strategic partnerships and smart irrigation techniques to more efficiently comes from sustainably managed forests.
strategies. One steel implemented infrastructure to support the water plants and prevent waste. Further, The
supplier has made a transition to electric vehicles (EVs). As of the end
net zero commitment, a of 2021, 89% of QM’s properties were equipped
with EV charging infrastructure. Our ongoing
manufacturer is aligned
partnership with ChargePoint, Inc. supports
with Science-Based efforts to expand EV charging infrastructure
Targets initiative (SBTi), nationwide. In addition to meeting demand
for EV chargers, QM maintains a partnership
and a flooring supplier is
with Envoy Technologies, Inc. to help provide
considered Zero Waste to our residents with on-demand access to low-
Landfill. emissions commuting options such as EVs,
electric bicycles, and electric scooters.

34 | ENVIRONMENTAL Sustainable Operations & Initiatives | 35

 2021
ENERGY STAR
Achieving ENERGY
Quarterra Multifamily

Certifications
STAR Rating
In 2021, 100% of the QM communities that applied earned
and Scores

100
their ENERGY STAR certification. This required those
properties to provide complete coverage of energy data
and demonstrate adherence to strict energy performance
VALDOK I
standards set by the EPA. Receiving this recognition signifies

100
that a property performs better than at least 75% of similar
buildings nationwide.
Pursuing ENERGY STAR certification is a key element of QM’s VALDOK II
ESG program, and each certification affirms our commitment
to environmental stewardship and optimal performance.
99
17TH & BROADWAY*

98
AXLE
Energy Efficiency
Improving energy efficiency is a primary focus for strengthening our communities. As such, several
communities implemented upgrades in 2021 to elevate performance. First, communities at Odin,
95
The Ellis, and The Bower installed high-efficiency equipment and appliances. Next, we upgraded our NORDHAUS

95
automation system at Odin to optimize use and better tailor operations to meet our needs. Lastly, Odin,
The Bower, and Axle communities all strengthened their wall or roofing insulation to better maintain
their internal temperatures without overworking the heating and cooling systems.
These improvements build from a strong foundation of environmentally-friendly and energy-conscious Renewable Energy Program ONYX EDINA

88
design. Given appropriate market conditions, we prioritize the following products to uphold our high In addition to improving energy efficiency, QM aims to expand
standards for efficiency and performance: our renewable energy portfolio to advance our transition
• LED lighting incorporated into all new • ENERGY STAR® certified products away from fossil fuels while driving efficient energy savings. MARISOL
Our two newest communities in Washington state have on-site

79
developments and ENERGY STAR qualified doors
prioritized throughout portfolio solar energy systems. The Bower, a community in Kirkland,
• Low-e glass windows used in almost
Washington, installed a 51kW on-site renewable energy system in
all apartment homes to better • HVAC systems with a minimum 14 SEER
2021. Similarly, our Spectra community in Redmond, Washington, SHIFT
maintain ideal temperatures rating in all new developments
has two on-site solar arrays that both feed into the house panel:
* Property received certification in Q1 2022.
• Programmable smart home systems with • Variable refrigerant flow (VRF) heat pumps a 35.7kW system on the north building and a 30.1kW system on
smart thermostats in all new developments for efficient space heating and cooling the east building.

36 | ENVIRONMENTAL Sustainable Operations & Initiatives | 37

 CERTIFIED PROPERTIES
Quarterra Multifamily

21 GREEN BUILDING
CERTIFICATIONS AT 19 PROPERTIES

LEED CERTIFICATIONS: 6
CALGREEN: 13
Region Property Certification Type Level
Region Property Certification Type
California Luma LEED for Homes Gold
California AYA CALGreen
California Shift LEED for Homes Gold
California 17th & Broadway CALGreen
Illinois The Emerson Building Design and Construction (BD+C) Silver
California 19th & Harrison CALGreen
Minnesota NordHaus Building Design and Construction (BD+C) Certified

Virginia Lumen Building Design and Construction (BD+C) Silver California Capitol 650 CALGreen

Washington Axle LEED for Homes Gold California Core CALGreen

California The Emery (Sherwin Williams) CALGreen

California Halcyon House CALGreen

NATIONAL GREEN BUILDING STANDARD: 2
California Luma CALGreen
Region Property Certification Type Level California Marisol CALGreen
NGBS/National Green Building Standard —
New Jersey The Lively Silver California Novo CALGreen
Design & Construction
NGBS/National Green Building Standard — California Oceanaire CALGreen
North Carolina The Francis Bronze
Design & Construction California Shift CALGreen

California Winslow (North Park) CALGreen

38 | ENVIRONMENTAL Certified Properties | 39

 SPOTLIGHT
Quarterra Multifamily

COMMUNITY SOLAR
OPTION FOR RESIDENTS
QM residents receive guaranteed savings
once established in our Community Solar program.
SAVING PERCENTAGES BY STATE FOR 2021 ENROLLMENTS:

5% MARYLAND
10% ILLINOIS
5% COLORADO

In partnership with RealPage® and Arcadia®, QM offers residents the opportunity to support local COMMUNITIES REGISTERED FOR SOLAR PROGRAM
solar farms and benefit from guaranteed savings on their energy bills. Our partners make it quick
and simple to opt into the program, empowering our residents to help drive the clean energy transition Property Number of Residents on Farms CS KWH
Accounts
and better align themselves with an eco-friendly lifestyle.
Beacon85 18 0 -
By the end of 2021, 111 unique accounts across ten QM communities had registered for the program.
Once registered, residents receive a $40 incentive and are placed on a waiting list to get paired with a Camber on Pena 5 0 -
solar farm. After being paired, residents start receiving monthly energy bill savings. The chart on the
Malbec at Valagio 10 0 -
next page shows end-of-2021 figures for the number of registered accounts per community, the number
of paired accounts, and the energy produced from residents’ portion of the solar farms. Maris 7 5 -
We plan to continue this partnership to provide our residents with greater choices and bolster our Marlowe 6 5 1,261
commitment to sustainability.
Radiant 25 0 -

The Brook on Jane 8 5 532

The Emerson 10 6 478

The Fynn 6 3 76

Triangle Square 16 10 1,208

All Properties 111 34 3,555

40 | ENVIRONMENTAL Community Solar Option for Residents | 41

 SUSTAINABILITY
Quarterra Multifamily

ATTRIBUTES
87% 89% 89%
OF PROPERTIES HAVE OUTDOOR OF PROPERTIES HAVE
OF PROPERTIES OFFER RESIDENTS
LIGHTING FIXTURES CONTROLLED ON-SITE ELECTRIC VEHICLE
THE OPTION TO RECYCLE
BY PHOTOSENSORS OR TIMERS CHARGING STATIONS

65% 78% 100%

OF PROPERTIES HAVE A WHITE/ OF PROPERTIES HAVE BATHROOM OF PROPERTIES HAVE
COOL/REFLECTIVE ROOF FIXTURES THAT ARE WATER-EFFICIENT ENERGY STAR APPLIANCES

85% 89% 76% 87%

OF PROPERTIES’ LANDSCAPING OF PROPERTIES ARE CLOSE TO
OF PROPERTIES’ PARKING OF PROPERTIES ARE LOCATED
WATERED BY HIGH-EFFICIENCY PUBLIC TRANSPORTATION AND
LIGHTING FIXTURES ARE LED CLOSE TO A BIKE PATH
IRRIGATION SYSTEMS INFRASTRUCTURE

42 | ENVIRONMENTAL Sustainability Attributes | 43

 CASE STUDY With work scheduled to be completed in 2023, QM is proud of our
Quarterra Multifamily

thoroughness in converting a once toxic site into a healthy environment.

SITE REMEDIATION IN Extensive investigation, planning, excavation, and redevelopment took place between 2017 and 2021.

EMERYVILLE, CA
Geotechnical assessments were conducted to assess the subsurface soil and rock conditions and ensure
a suitable foundation for development. A combined 210 truckloads hauled away more than 10,000
Tons of excavated material, classified as either Class 1 or Class 2 non-RCRA. Soil and groundwater
management plans were established to allow ongoing monitoring of subsurface conditions and
support redevelopment.
In 2017, QM purchased a property in Emeryville, Through 2021, QM had invested upwards of $6 million on consultants and remediation work to
California, that had been used since the early prepare the site. With work scheduled to be completed in 2023, Quarterra Multifamily is proud of our
1900s as a coatings manufacturing plant by one thoroughness in converting a once toxic site into a healthy environment. Beyond allowing for a new
of the largest paint and coatings manufacturers QM community, our efforts have helped improve the environment and strengthen the resilience of the
in the world. Over the decades, the company surrounding area. As of 2022, The Emery is open and proudly taking residents.
had been prompted by local agencies to undergo
various forms of remediation. Despite receiving
a Certificate of Completion from the California
Department of Toxic Substances Control
(DTSC) in 2013, a 2016 Environmental Site
Assessment (ESA) revealed naphthalene and
arsenic hot spots that were not addressed in
prior remedial efforts. This discovery prompted
a sale of the property.
When purchasing the property, QM entered into
an O&M agreement with DTSC to ensure proper
management of the site’s known contamination.
From 2017 to 2021, QM engaged in extensive site
remediation to transform the area into a livable
location. This involved support from numerous
environmental consultants and professional
engineers to provide expertise on a range of
topics, including geology, toxicology, hydrology,
hazardous materials management, stormwater
management, and archaeological monitoring.

44 | ENVIRONMENTAL Site Remediation in Emeryville, CA | 45

SOCIAL
At Quarterra Multifamily, respect is a core value and community
is our guiding light. Prioritizing the power of people, we
place equal emphasis on developing buildings and building
relationships. QM aims to provide meaningful careers for
Associates, superb living for residents, and enhanced sense of
community for our neighbors. In doing so, we strive to create
communities that our residents are thrilled to call home.
 ASSOCIATE Finding Top Talent
Quarterra Multifamily

In 2021, our Associates took

ENGAGEMENT
Building a strong team begins with establishing
a diverse talent pool and bringing on the right advantage of QM’s dynamic
people. One effective recruitment strategy is our training opportunities.
university talent program, which enables our team
to participate in social and educational events Associates completed 7,665
QM recognizes that our Associates are the heart of our organization. We strive to create a healthy,
at partnering universities across the country. courses, totaling 3,869
This allows us to give back to these institutions
inclusive, and dynamic work environment that attracts and retains top talent. Through collaboration hours of training.
and engage with aspiring professionals to build
and openness, we provide communication tools and opportunities for Associates to express themselves
our talent pipeline. QM has successfully identified
and contribute toward shaping their work experience. Our 2021 Kingsley Employee Satisfaction Survey
students from these events to fill summer
improved upon our already strong results, reflecting our continual focus on Associate empowerment.
internship roles as well as open job positions. We have also implemented ESG topics and
QM further strengthened our team-building themes into Associate training. Our Associates
efforts by partnering with Lightcast (formerly — especially our Construction teams — receive
Emsi), a data-driven talent strategist that regular training with ESG components to ensure
provides our team with marketplace analytics they uphold environmental compliance and are
2019 2021 to have more strategic conversations with prepared to address the growing importance of
business partners and candidates. This helps ESG considerations in the multifamily industry.
our team acquire and retain top talent in the

64% 92% 78% 94%

QM maintains that our Managers and Associates
increasingly competitive global marketplace.
engage in ongoing check-in conversations and
a year-end performance review to build team
RESPONSE RATE PROUD TO WORK RESPONSE RATE PROUD TO WORK Training & cohesion and gauge Associates’ development.
FOR QM FOR QM
Development ESG factors are embedded in performance
evaluations and will continue to be prioritized

88% 62% 90% 83%

Training and development help ensure that our
to ensure our Associates and teams are aligned
Associates continue to advance their skills and
with the positive impact QM seeks to provide.
engage in meaningful work. This supports talent
AGREE ­— ASSOCIATE AGREE — BELIEF IN AGREE — ASSOCIATE AGREE — BELIEF IN
HAPPINESS COMPANY VISION HAPPINESS COMPANY VISION retention and our company-wide approach of
promoting from within the organization.
QM offers Associates access to a comprehensive
suite of training and courses. The options are
dynamic and include topics such as personal
development, operational best practices, and
interpersonal communication strategies.

48 | SOCIAL Associate Engagement | 49

 Health, Well-being, resources to promote physical, mental, and
Quarterra Multifamily

financial well-being. Associates can also opt into

& Safety our Perks at Work Program to receive exclusive
At QM, we strive for a healthy, safe work pricing on select goods and services. By providing
environment where Associates feel secure and Associates the resources to care for their holistic
purposeful. This starts with creating an inclusive health, we hope to motivate them to grow their
and respectful atmosphere in alignment with careers with QM.
our company values. Associates have access to Prioritizing safety is another way QM commits
our Associate Reference Guide, which outlines to providing a healthy workplace. Safety protocols
our guiding principles and details the conduct exist for all on-site Associates, and all Associates
expected from QM personnel. are required to review training on injury
To reflect the deep appreciation QM holds for our prevention, sexual harassment, and security and
Associates, we offer competitive compensation cybersecurity awareness. On top of that, those
and a robust benefits package. This includes working in the field must complete supplemental
401(k) plan matching programs, extensive medical courses including the OSHA® 10-hour and 30-
coverage, paid parental leave, and other additional hour Outreach training.

Collaboration Through Communication

0.52 2.2 0.12%
INJURY RATE LOST DAY RATE ABSENTEE RATE
QM uses various communication channels as an efficient way to engage Associates, create
*Figures represent those on the Development teams.
collaborative workflow, and keep our team informed on company news and industry trends.
• Town Hall calls are held regularly and led by our Executive Committee. They are designed
to deliver company updates, answer Associates’ questions, and address any concerns.
This provides our Associates opportunities to express themselves and help positively
shape the QM workplace experience.

• The Collaboration Protocol helps ensure effective and cohesive teamwork through a
set of processes and procedures that Associates must utilize. Adhering to Collaboration
Protocol guidelines unifies our teams’ efforts and promotes excellence through best
practices. On an annual basis, the Collaboration Protocol Committee comes together
to address and incorporate company feedback and refine the process as needed.

• Quarterra Connected, our internal portal, shares company news and announcements,
company highlights, a calendar of important events, and other valuable resources to
keep Associates informed on company activity and developments in the industry.

50 | SOCIAL Associate Engagement | 51

 DIVERSITY, EQUITY,
Quarterra Multifamily

& INCLUSION
Diversity of thought, experience, and background contribute to the excellent work culture at QM.
Underscored by our core value of respect, we uphold a commitment to treat all Associates in a just and
equitable manner and to provide equal employment opportunities for all.
QM offers our Associates extensive training opportunities to help foster an environment of inclusion
and mutual respect. To start, we have Workplace Diversity training for Associates and for those in
supervisory roles. This allows us to celebrate diversity and prevent any acts of discrimination and
harassment. In addition, we strive to help our Associates develop their personal strength through
courses such as Innovation & Creativity, Critical Thinking, and Emotional Intelligence. We believe
that helping our Associates strengthen their self-awareness will improve their capacity for empathy
and collaboration, which are critical skills needed to address today’s most devastating social issues.
To further drive this, we provide insight into difficult topics with training such as Human Trafficking
& Your Community. Lastly, QM aims to bolster inclusion and cooperation through training designed to
enhance decision-making and teambuilding skillsets. This includes training on Difficult Interactions,
Leading People, and Creating Extraordinary Experiences.

52 | SOCIAL Diversity, Equity, & Inclusion | 53

 RESIDENT ENGAGEMENT Healthy Apartment Throughout our communities, we utilize Merv
Quarterra Multifamily

8 rated air filters or higher to help purify the air

Homes our residents breathe. Additionally, 100% of our
QM designs our apartment homes to be apartment homes use low-VOC paints, which
clean environments where residents can live create less air pollution than traditional paints
QM strives to build communities where our remarkably. To do this, we use appliances and are less likely to trigger problems like asthma,
residents feel at home. To do this, we maintain and products that minimize air pollutants. headaches, and nausea.
open communication channels and ensure
In 2021, QM expanded our resident
our locations are equipped to provide an
engagement with respect to
optimal living experience. Our robust resident
environmental awareness. We shared
engagement program enables QM to create
conservation strategies and helpful
an environment that encourages residents to
tips during our focused awareness
connect, thrive, and embrace community.
campaigns:
Communication • Bike to Work

Channels • Earth Hour

We communicate with our residents through • Earth Day

a variety of channels. First, each community • Energy, Water, Waste Awareness
has its own website that highlights community
amenities and local attractions. This is especially
helpful to give out-of-town residents ideas for
nearby recreational activities.
QM uses Active Building for our resident
portal. Residents use this platform to pay rent,
submit maintenance requests, and receive
notifications for package deliveries. The portal
also hosts the community conversation board.
Stellar Amenities bikes without taking up extra space in their
apartment home. Lastly, lounge spaces and
As a comprehensive platform, Active Building QM designs communities with residents and courtyards give residents access to communal
encourages residents to stay tuned in to activities neighborhoods in mind. This involves developing areas that foster social connection and a sense
and programs offered at our communities. spaces that our residents want to use and that of community.
better their living experience.
Additionally, QM is active on various social Many QM communities also have amenities for
media platforms. Residents can engage with Our amenities promote resident health and residents to pamper their pets. Features include
us on LinkedIn and Facebook to stay updated well-being. The dynamic fitness centers typically pet spas, indoor and outdoor pet parks, and
on QM business development and community include cardio equipment, weights, and flex lounges for residents to enjoy with their furry
events. We also use Instagram to post photos, spaces that can accommodate a wide variety of friends. We strive to ensure an enjoyable living
short videos, and educational material, including workout regimens. Many of our communities experience for all residing in our apartment
our ESG awareness campaigns. also come with bike shops and storage, allowing homes, pet and owner alike.
residents to maintain, repair, and store their

54 | SOCIAL Resident Engagement | 55

 Apartment Life check-ins with new residents to welcome them
Quarterra Multifamily

to the community and ensure satisfaction with

QM’s partnership with Apartment Life® helps the move-in process. Any issues that may arise
fuel an engaging living experience for our can then be effectively managed by our teams.
residents. In 2021, we held 836 Apartment Life Additionally, Apartment Life carries out resident
hosted events across 40 communities, with an renewal visits ahead of residents’ lease renewal
average attendance of 20+ residents. deadline. This supports our teams’ efforts to
Apartment Life events utilize our amenities maintain high levels of resident satisfaction
and open spaces, which encourages residents and retention.
to enjoy the perks of living at a QM community. QM works with the Apartment Life teams on a
Events included pool parties, food trucks, monthly basis to ensure we are offering events
fitness classes, pet events, holiday celebrations, and benefits that increase resident satisfaction
and more. To encourage participation, QM and enhance their living experience. QM plans
rewards residents who attend events with to continue growing our partnership with
points that can be redeemed for gift cards. Apartment Life. In 2021, we added Apartment
QM also uses Apartment Life to gauge resident Life to 13 communities.
satisfaction. Apartment Life performs initial

56 | SOCIAL Resident Engagement | 57

 COMMUNITY Supporting Local QM teams also organized donation drives to
Quarterra Multifamily

support other mission-driven organizations,

Charities
ENGAGEMENT &
including The Salvation Army, Toys for Tots,
QM prioritizes philanthropy. Across the country, OneBlood, The Relatives, and the Sylvester

PHILANTHROPY
our teams organize donation drives and Cancer Center in Miami.
participate in events to support local charities Our Associates from across the country
that resonate with our company values. supported cancer research by taking part in
Sylvester Cancer Center’s 11th annual Dolphin
Cancer Challenge. Associates participated in
Several of our communities organized
various mid- and long-distance runs and bike
At QM, we aim to create a lasting positive impact on the communities we serve. We consider local food drives and contributed to local
rides to raise money for the center’s innovative
needs when developing properties and pursue meaningful ways to give back. From initial phases of food banks in 2021.
cancer research program. The 2021 event raised
property development to intentional acts of community care, QM emphasizes community throughout
• Our Irving office in Texas organized a record-breaking $6.3M for the organization.
every phase of our operations.
a lunch social that raised money
and encouraged food donations
Creating Great American Neighborhoods for Metrocrest Food Pantry
Our vertically integrated model promotes a highly collaborative development strategy. Prior to full design • Associates from our Chicago
efforts, our development and property management teams allot time for on-site Discovery Tours to teams volunteered at the local Feed
research the local neighborhoods and communities where we intend to build. Discovery Tours equip our My Starving Childrento help prepare
teams with the understanding to develop locations that blend harmoniously with the surrounding area and package meals for kids in need
and uplift the communities they serve.
• Our Pacific Northwest division
participated in The Ballard Food
Bank’s annual Harvest Food
Drive, helping spur the event’s
largest donation to date... 457
pounds of canned food
• Our Marisol team in Southern
California was so humbled by their
day volunteering for Jacobs and
Cushman Food Bank that the team
established a permanent donation
bin at their community to help
support families and children
living with food insecurity
• Our DC Metro team organized
a Thanksgiving food drive for the
Food for Others charity after several
Associates had participated in the
organization’s annual 5k fundraiser
58 | SOCIAL Community Engagement & Philanthropy | 59
Quarterra Multifamily

Focused Acts of Caring

Believing that global change starts in the backyard, QM teams across the country gave back to
numerous local charities to support and strengthen our communities.
• Alameda Humane Society (Northern California) • Noche En Blanco — Hance
Conservatory (Phoenix, AZ)
• American Red Cross Blood
Drives (Phoenix, AZ) • Oliver W. Holmes Elementary
School (Chicago, IL)
• Ballard Food Bank (Pacific Northwest)
• One Warm Coat (Northern California)
• Brighter Tomorrows Shelter (Dallas, TX)
• Phoenix Children’s Hospital (Phoenix, AZ)
• CASS Homeless Shelter Summer
Water Drive (Phoenix, AZ) • Read Across America (New York Metro, NY)

• Care Packages for the Troops (Herndon, VA) • Salazar Elementary School (Chicago, IL)

• DeLaney Organic Farms (Denver, CO) • Salvation Army (Texas)

• Dolphins Cancer Challenge (Florida) • Second Harvest Food Bank (Southeast)

• Families Assistance Ministries Thanksgiving • Senior Santa & Friends (Aliso Viejo, CA)
Food Drive (Aliso Viejo, CA)
• The Action Place (Denver, CO)
• Feed My Starving Children (Chicago, IL)
• The Relatives (Charlotte, NC)
• The Gathering Place (Denver, CO)
• The Sheridan Story (Minneapolis, MN)
• Lewisville Adopt an Angel (Texas)
• Toys4Tots (Atlanta, GA; Dallas, TX; Florida)
• Lions In Sight (Aliso Viejo, CA)
• Tri-City Volunteers Food Bank
• Mary’s Place — No Child Sleeps (Northern California)
Outside (Pacific Northwest)
• Nashville Humane Association (Southeast)

60 | SOCIAL Community Engagement & Philanthropy | 61

 SOCIAL SPOTLIGHT In addition to creating custom communities
Quarterra Multifamily

that accentuate a neighborhood’s vibes, QM is

DELIVERING
also advancing our Emblem Community program
to address the need for Class A communities

AFFORDABLE HOUSING
accessible to middle-income residents. To do this,
the QM Emblem Community initiative prioritizes
simplification and standardization, enabling cost

THROUGH QUALITY savings and streamlined operations that bring

outstanding, affordable communities to market in

AT SCALE
timely fashion.
To develop Emblem communities, we apply
our collaborative approach and development
expertise to create a model that can be replicated
nationwide. The consistency in design and
construction enables a scalable approach that
allows for reduced labor and material costs,
creating opportunity for more affordable housing.
While still featuring high-end interior features
and community amenities, the operational
efficiency behind Emblem communities makes
them suitable for residents who earn 80%–100%
of the region’s median income.

The Emblem
Community initiative
has gained significant
momentum since
starting in 2019.
As of October 2022, one Emblem community
has been built and stabilized, five are
under construction, and another 16 are in
predevelopment.

62 | SOCIAL Delivering Affordable Housing Through Quality At Scale | 63

 CASE STUDY
Quarterra Multifamily

PREPAREDNESS
SHINES IN TEXAS
FREEZE RESPONSE
While the blistering storm that swept through offices, provided warmth and security to those
Texas in February 2021 had widespread impact who couldn’t heat their apartment homes.
on the state’s infrastructure, QM communities, Our management teams remained on-site during
residents, and Associates fared remarkably well. the event and worked to ensure residents were
Our preparation for the storm and our teams’ as comfortable as possible, helping them relocate
commitment to service throughout enabled QM to community areas with power and providing
to get through the event with nothing more them with food and water.
than some frozen landscaping.
QM’s attention to risk management also helped
In preparation for the winter storm, we made our residents insulate themselves financially
sure all vacant homes had heat on, that faucets from the storm’s wrath. Understanding
were dripping, and that cabinets under sinks the potential for price volatility in Texas’
were opened. We alerted residents to take deregulated energy market, QM negotiated an
the same precautionary steps, especially if Electric Referral Program with one of the state’s
planning to leave town. Additionally, our electricity retail providers to help lock in energy
Service Supervisors ensured certain fire system rates. When the Great Texas Freeze hit, low
pipes were well insulated. Thanks to careful energy supply met high demand, which caused
preparation, the storm did not cause any energy prices to escalate rapidly. Fortunately,
busted pipes at our Texas communities. residents who took advantage of our program
Our teams went above and beyond to care for secured pre-negotiated pricing and were not
residents who experienced temporary power susceptible to those extreme price fluctuations.
loss. Backup generators and common area This enabled our residents to keep their homes
amenities, such as club rooms and leasing warm without facing exorbitant costs.

64 | SOCIAL Preparedness Shines in Texas Freeze Response | 65

 PARTNERSHIPS
Quarterra Multifamily

& PROGRAMS NATIONAL ASSOCIATION OF SOCIETY FOR HUMAN

HOME BUILDERS (NAHB) RESOURCE MANAGEMENT
(SHRM)
QM participates in NAHB ® and their
Strengthening QM’s ESG program year over year requires that we form strategic industry partnerships
National Green Building Program™, which QM takes part in the SHRM® organization,
to help us improve performance and advance our ESG goals and targets.
is the largest network of professionals in which creates better workplaces by empowering
the nation dedicated to building and people, advancing HR practices, and maximizing
enriching communities. human potential.

ENERGY STAR J TURNER RESEARCH NATIONAL MULTIFAMILY URBAN LAND INSTITUTE® (ULI)
HOUSING COUNCIL (NMHC )
QM utilizes ENERGY STAR Portfolio QM works with the leading, full-circle online QM benefits from a variety of ULI
Manager®, the premier tool for tracking reputation-management firm for multifamily QM is part of NMHC, a prominent sustainability resources that help to improve
energy, water, and waste data, as we work companies to enhance resident satisfaction organization for providing insight, advocacy, our sustainability programs and share
toward reducing the environmental impact and increase closing ratios. and action for members and the multifamily best practices with the greater real
of our portfolio. housing communities they build. estate community.

GRESB U.S. GREEN BUILDING OCCUPATIONAL SAFETY AND VERDANI PARTNERS

COUNCIL (USGBC ) HEALTH ADMINISTRATION
GRESB® is an investor-driven organization QM works with Verdani Partners,
(OSHA )
committed to assessing the ESG performance QM is a member of the USGBC® and a full-service sustainability and ESG
of real estate assets and infrastructure aims to align our properties with the QM actively engages OSHA standards to consulting firm, to develop and implement
investments around the world. sustainability best practices outlined in promote safe and healthful working conditions our ESG strategy, communications, and
USGBC’s LEED® rating system for efficient, for workers and provides access to training, building certifications.
healthy green buildings. education, and assistance for team members.

66 | SOCIAL Partnerships & Programs | 67

REPORTING
& DISCLOSURE
This annual ESG report was prepared by the Quarterra
Multifamily team with support from our sustainability
consultant, Verdani Partners. Reporting and disclosing our
portfolio-wide performance data and sustainability operations
allow us to benchmark and assess our performance against our
peers in the U.S. and around the world.
 REPORTING THE GLOBAL REPORTING
Quarterra Multifamily

METHODOLOGY INITIATIVE
The aim of this report is to share sustainability-related information that is material to QM’s
stakeholder groups including investors, residents, tenants, Associates, partners, and communities. About GRI
Our disclosure references the Global Reporting Initiative’s 2016 Standards. In addition, this publication GRI is an international, independent organization that helps businesses, governments, and other
includes information that references our second annual disclosure of ESG data to GRESB. organizations understand and communicate the impact of business on critical sustainability issues
Prior to this report, the most recent report was published in 2021 and covered calendar year 2020. such as climate change, human rights, governance, and social well-being. With thousands of reporters
To align with the previous report, the performance data and qualitative data in this report in over 100 countries, GRI provides the world’s most widely used standards on sustainability reporting
represent the 2021 calendar year unless otherwise stated. and disclosure, enabling businesses, governments, civil society, and citizens to make better decisions
based on information that represents global best practices on economic, environmental, governance,
Contact and social issues.

For questions about this report, please contact:

GRI Index
[email protected]
Number Description Page Reference

1: Organizational Profile

01 1) Cover Page
102-1 Name of the Organization
08 2) Company Profile

102-2 Activities, brands, products, and services 08 1) Company Profile

102-4 Location of operations 08-09 1) Company Profile

102-5 Ownership and legal form 08 1) Company Profile

1) Company Profile
102-6 Markets served 08-09
2) quarterra.com/communities

102-7 Scale of the organization 08-09 1) Company Profile

30-33 1) Environmental Risk Management

102-11 Precautionary Principle or approach
44-45 2) Case Study: Site Remediation In Emeryville, CA

102-13 Membership of associations 66-67 1) Partnerships & Programs

2. Strategy
102-14 Statement from senior decision-maker 02 1) Letter from the President

1) Business Risk Management

24
2) Environmental Risk Management
102-15 Key impacts, risks, and opportunities 30-33
3) Social Spotlight: Delivering Affordable
62-63
Housing Through Quality At Scale

Index continues on next page >>

70 | REPORTING & DISCLOSURE The Global Reporting Initiative | 71

Quarterra Multifamily

Number Description Page Reference Number Description Page Reference

3. Ethics and Integrity GRI 103: MANAGEMENT APPROACH 2016

Values, principles, standards 12-13 1) Approach to ESG 12-13 1) Approach to ESG

102-16 Explanation of the material topic and
and norms of behavior 23 2) Business Ethics, Policies, & Procedures 103-1 21 2) Quarterra Multifamily Sustainability Committee
its Boundary
28 3) Performance Metrics
102-17 Mechanisms for advice and concerns about ethics 23 1) Integrity By Design
12-13 1) Approach To ESG
4. GOVERNANCE
20-21 2) Governance Structure
102-18 Governance structure 20 1) Leadership Structure 24 3) Business Risk Management
28-29 4) Performance Metrics
102-19 Delegating authority 20-21 1) Governance Structure 103-2 The Management approach and its components
34-37 5) Sustainable Operations & Initiatives
48-51 6) Associate Engagement
Executive-level responsibility for economic,
102-20 20-21 1) Governance Structure 53 7) Diversity, Equity, & Inclusion
environmental, and social topics
58-60 8) Community Engagement & Philanthropy
Consulting stakeholders on economic,
102-21 20-21 1) Quarterra Multifamily Sustainability Committee 5 1) About This Report
environmental, and social topics 103-3 Evaluation of the management approach
70 2) Reporting Methodology
Role of highest governance body in setting GRI 302: ENERGY
102-26 20-21 1) Governance Structure
purpose, values, and strategy
302-3 Energy intensity 28 1) Performance Metrics
20-21 1) Governance Structure
Identifying and managing economic,
102-29 24 2) Business Risk Management
environmental, and social impacts
30-33 3) Environmental Risk Management
28-29 1) Performance Metrics
303-1 Interactions with water as a shared resource
Review of economic, environmental, and 35 2) Resource Conservation Strategies
102-31 21 1) Quarterra Multifamily Sustainability Committee
social topics
GRI 303: WASTE
Highest governance body’s role in 306-2 Management of significant waste-related impacts 34 1)Sustainable Operations & Initiatives
102-32 20-21 1) Governance Structure
sustainability reporting
306-4 Waste diverted from disposal 28 1) Performance Metrics
5. STAKEHOLDER ENGAGEMENT
GRI 303: EMPLOYMENT
11 1) Stakeholder Engagement
102-40 List of stakeholder groups Benefits provided to full-time employees that
66-67 2) Partnerships & Programs
401-2 are not provided to temporary or part-time 51 1) Health, Well-being, & Safety
11 1) Stakeholder Engagement employees
102-43 Approach to stakeholder engagement GRI 403: OCCUPATIONAL HEALTH AND SAFETY
12 2) Approach To ESG

6. REPORTING PRACTICE 403-3 Occupational health services 51 1) Health, Well-being, & Safety

5 1) About This Report 403-5 Worker training on occupational health and safety 51 1) Health, Well-being, & Safety
102-46 Defining report content and topic Boundaries
70 2) Reporting Methodology
403-6 Promotion of worker health 51 1) Health, Well-being, & Safety
102-47 List of material topics 12-13 1) Approach To ESG
403-9 Work-related injuries 51 1) Health, Well-being, & Safety
5 1) About This Report GRI 404: TRAINING AND EDUCATION
102-50 Reporting period
70 2) Reporting Methodology
Programs for upgrading employee skills and
102-51 Date of most recent report 5 1) About This Report 404-2 49 1) Training & Development
transition assistance programs
102-52 Reporting cycle 0 1) Cover Page GRI 405: DIVERSITY AND EQUAL OPPORTUNITY
102-53 Contact point for questions regarding the report 70 1) Reporting Methodology 405-1 Diversity of governance bodies and employees 22 1) Executive Management Diversity
Claims of reporting in accordance with GRI 413: LOCAL COMMUNITIES
102-54 70 1) Reporting Methodology
the GRI Standards
Operations with local community engagement,
413-1 58-61 1) Community Engagement & Philanthropy
102-55 GRI content index 71-73 1) GRI Index impact assessments, and development programs

72 | REPORTING & DISCLOSURE Reporting Methodology | 73

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