Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Risks associated with real estate investments and the real estate industry.
• Significant competition.
• Decrease in demand for commercial space and/or increase in operating costs.
• Failure by major tenants to make rental payments.
• Challenging economic conditions.
• Failure to generate sufficient cash to service debt obligations.
• Inability to borrow or raise sufficient capital.
• Increased interest rates and/or borrowing costs.
• Potential losses from adverse weather conditions, natural disasters, and title claims.
• Competition for acquisitions.
• Inability to complete acquisitions or dispositions.
• Risks associated with investing in unfamiliar markets.
• Reliance on third-party property managers and brokers.
• Decreased supply and/or demand for single-family homes.
• Failure to continue to qualify as a REIT.
• Certain provisions of Maryland law.
• Inability to make cash distributions at expected levels.
• Lack of a public market for common stock.

Mitigation Strategies

• Diversified tenant base to limit exposure to single industries.
• Active asset management to increase occupancy and rent.
• Opportunistic sale of properties to recycle capital.
• Triple-net lease agreements for model homes to alleviate costs and risks.
• Geographic clustering of properties to minimize operating costs.
• Focus on regionally dominant markets with attractive growth dynamics.
• Extensive broker and seller relationships for acquisitions.
• Seeking additional capital through equity and/or debt securities sales.
• Insurance coverage for properties.
• Non-recourse financing to limit exposure to debt.
• Professional environmental inspections and testing.
• Conservative posture toward accepting environmental risks.

Supply Chain Management

Climate-Related Risks & Opportunities