Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Delgado property nominated for LEED Gold certification
• Proposals for green electricity procurement policy in German portfolio (starting 2024)
• Implementation of smart water-saving equipment in German portfolio

Social Achievements

• Social aspect considered critical in redevelopment projects of Sablière and Arcueil, aligning with 2024 Paris building rule reforms to increase social housing

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Challenging financial, economic, and social changes in the office real estate sector
• Significant downward pressure on net asset values due to volatile economic conditions (high inflation and energy costs in the Eurozone)
• High vacancy rates in Arcueil and Neu-Isenburg properties
• Protracted City Hall approval process for Sablière redevelopment
• Maturing mortgage loans in 2023 and early 2024

Mitigation Strategies

• Suspension of REIT distributions to improve financial strength and flexibility
• Managing debt-to-gross book value ratio
• Seeking fixed-rate mortgages
• Selective capital expenditure improvements on properties with high vacancy
• Considering short and long-term rental opportunities for Sablière
• Negotiating new senior debt with short-term conditions to reassess financing terms with lower borrowing costs by the end of 2024
• Assessing best hedging options on unhedged contracts

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: LEED Gold (Delgado property)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental performance
• Human capital

Environmental Achievements

• Delgado property pursuing LEED Platinum certification (expected Q3 2024)
• Implementation of smart water-saving equipment in German portfolio
• Offers for a green electricity procurement policy expected in 2024 for German portfolio

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decreased and restrictive lending by financial institutions in Europe due to uncertainty in the European political landscape
• Tightening of credit coinciding with an economic slowdown
• High inflation and energy costs in the Euro-zone impacting net asset values

Mitigation Strategies

• Implementing short-term leasing initiatives for properties in the Asset Recycling Plan
• Maintaining a conservative debt-to-gross-book value ratio (currently 48%)
• Seeking financing opportunities through banking networks in Europe

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: LEED Platinum (Delgado property)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental performance
• Human capital

Environmental Achievements

• Delgado property pursuing LEED Platinum certification (expected to be received)
• Implementation of smart water-saving equipment in German portfolio
• Offers for a green electricity procurement policy expected in 2024 for German portfolio

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increased vacancy at Bad Homburg and Metropolitain properties
• Increased non-recoverable expenses on vacant spaces
• Bad debt allowance on Gaia property
• Departure of sole tenant of Arcueil property
• Temporary 20% vacancy at Duisburg property due to construction
• Downward pressure on net asset values due to geopolitical tensions, high inflation, and energy costs
• Increased finance costs for Trio and Stuttgart mortgage loans
• One-time capex paid as part of a new ten-year lease agreement at the Duisburg property
• Decrease in recovery of escalating property operating costs due to increased vacancy

Mitigation Strategies

• Asset recycling plan (sale of Sablière, Arcueil, and Baldi properties)
• Selective consideration of tenant improvements to attract tenants
• Marketing of Arcueil and Baldi properties for sale
• Consideration of using proceeds from property sales to pay down debt, make capital investments, or invest in redevelopment opportunities
• Obtained municipal approval for Arcueil property redevelopment project
• Paused marketing of Stuttgart and Duisburg properties to allow financing opportunities to improve
• Repositioning of Duisburg property
• Waived Daimler’s break options on Stuttgart
• Secured a new ten-year tenancy with DP World at Duisburg property
• Signed extension of debt maturities for Stuttgart, Neu-Isenburg, and Kosching properties
• Maintaining a conservative debt-to-gross-book value ratio (currently 49%)
• Implementing short-term leasing initiatives for properties in the Asset Recycling Plan

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: LEED Platinum (Delgado property)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed