Institutional Real Estate, Inc.

ESG Means Business 17 From responsible property investing to return on investment… P rincipal Real Estate Investors has demonstrated leadership in responsible property investing through our continued positive results in GRESB, UN PRI, and CDP, our recognition as an ENERGY STAR Partner of the Year, and our 14% reduction of energy across the portfolio since 2008. We recognize the many challenges and opportunities in today's real estate market. On behalf of our investors and clients, it is our responsibility to anticipate market changes and execute strategies that best position our investments for potential success. We see responsible property investing as a key strategy to enhance value and meet our fiduciary obligations. Our Pillars of Responsible Property Investing (PRPI) initiative is a portfolio-level framework that strives to deliver positive financial and environmental results and focuses on market resilience, corporate governance, and property performance. Through PRPI, we are committed to responsible property investing, distinguishing ourselves as a leader in the marketplace. SPONSORED CONTENT For more information: www.principalglobal.com/RPI ©2017 Principal Financial Services, Inc. Principal, Principal and the symbol design and Principal Financial Group are registered trademarks and service marks of Principal Financial Services, Inc., a Principal Financial Group company. Principal Global Investors is the asset management arm of Principal Financial Group. Principal Real Estate Investors is the dedicated real estate asset management group of Principal Global Investors. About GRESB GRESB is an investor-driven organization that is transforming the way institutional investors assess the environmental, social and governance (ESG) performance of real assets globally, including real estate portfolios and infrastructure assets. More than 250 members, of which about 60 are pension funds and their fiduciaries, use the GRESB data in their investment management and engagement process, with a clear goal to optimize the risk/return profile of their investments. GRESB has assessed nearly 1,000 property companies and funds, jointly representing more than USD 7.5 trillion in assets under management, as well as almost 200 infrastructure assets and funds. GRESB's objective is to provide real assets investors and managers with the tools they need to accurately monitor and manage sustainability performance of participating funds and companies, and to prepare for increasingly rigorous ESG obligations. Institutional investors use GRESB to acquire credible quantitative data, based on relevant metrics, useful to investment decision-making processes to identify portfolio risks and opportunities. The global property and infrastructure sectors are at the heart of the most important and far-reaching issues of our time including urbanization, demographic change, resource constraints, environmental impacts and emerging technologies. The design, construction and operation of assets reflects, drives and potentially mitigates the impact of all of these issues on occupants, owners, communities and the society at large. Investors can create better places for people and communities — places that reduce environmental impacts, improve social practices, are healthier for occupants — and set high standards for corporate governance. Crucially, leadership on ESG issues can be done in a profitable way, reducing investment risk and driving solid business metrics while also rewarding innovation. INSTITUTIONAL REAL ESTATE, INC. This special report was published by Institutional Real Estate, Inc. in conjunction with GRESB. Publisher & Editor-in-Chief: Geoffrey Dohrmann, g.dohrmann@irei.com; SVP, Managing Director of Global Business Development: Jonathan Schein, j.schein@ irei.com, Editorial Director: Larry Gray, l.gray@irei.com; Special Projects Editor: Denise DeChaine, d.dechaine@ irei.com; Art Director: Susan Sharpe, s.sharpe@irei.com, Senior Account Executive, Advertising/Fundtracker Database: Cynthia Kudren, c.kudren@irei.com. Copyright © 2017 by Institutional Real Estate, Inc., 2274 Camino Ramon, San Ramon, CA 94583. Material may not be reproduced in whole or in part without the express writ- ten permission of the publisher. The publisher of this special report is not engaged in rendering tax, accounting or other professional advice through this publication. No statement in this report is to be construed as a recommendation to buy or sell any security or other investment.

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• ESG means business