Achieving Financial And Environmental Success
PROPERTY PERFORMANCE: TANGIBLE RESULTS
A key component of the Pillars of Responsible Property Investing (PRPI) is the pursuit of Property Performance, which we define through financial and environmental success. The Principal Real Estate Investors team diligently tracks the progress of its near- and long-term investments. Since the start of the PRPI initiative and previous sustainability efforts in 2009, Principal Real Estate Investors has realized over $32 million in cumulative avoided energy costs.1 The portfolio is saving over $7 million annually in energy costs, which equates to $117.0 million in incremental asset value.2
Measurement is the first step to sustainable operations. Principal Real Estate Investors has benchmarked and continuously monitored the utility costs and consumption at more than 197 buildings, covering 35 million square feet of gross floor area. This group includes all eligible buildings in the office, retail, and multi-family portfolios.
ENERGY STAR EXCELLENCE
The U.S. Environmental Protection Agency (EPA) uses the 0 to 100 ENERGY STAR score to compare building energy efficiency across the country while accounting for occupancy and weather. A score of 50 represents median energy performance, while a score of 75 or better indicates that a building is a top performer and may be eligible for ENERGY STAR certification.3
At an average score of 82, the Principal Real Estate Investors office portfolio ranks among the top 16% of all U.S. buildings for energy efficiency.
Principal Real Estate Investors has been repeatedly recognized for continued high performance in the ENERGY STAR program.
Recently, Principal Real Estate Investors achieved three important milestones:
• Awarded the EPA’s ENERGY STAR Partner of the Year Award in 2016 and 2017.4
• 64 of our buildings had achieved ENERGY STAR certification, totaling more than 14 million square feet.
• Awarded one of the first ENERGY STAR certifications for a multi-family property nationwide.5
• Received recognition as an Executive Member of EPA’s Certification Nation, in honor of the significant number of properties certified to the ENERGY STAR Standard in 2014.6
LEED CERTIFIED PERFORMANCE
Awarded by the U.S Green Building Council, LEED, or Leadership in Energy & Environmental Design, is a green building certification program that recognizes best-in-class building strategies and practices. Approximately 68% of the office portfolio is LEED certified, with 60% certified to the Gold or Platinum level. The 197 buildings in the PRPI Initiative include 64 LEED certified buildings.
REDUCING GREENHOUSE GAS EMISSIONS
The PRPI initiative has achieved significant reductions in energy and greenhouse gas emissions. Since 2009, greenhouse gas emissions have been reduced by 122,319 metric tons, the equivalent of taking more than 25,830 cars off the road, zeroing out the energy from 12,910 homes, avoiding the consumption of 13.7 million gallons of gasoline, or planting 3.1 million tree saplings.7
THESE GREENHOUSE GAS REDUCTIONS STEM FROM COST-EFFECTIVE OPERATIONAL IMPROVEMENTS IN ENERGY EFFICIENCY, LEADING TO A CYCLE OF FINANCIAL AND ENVIRONMENTAL RETURNS.
MARKET RECOGNITION AND SUCCESS
BUILDING MOMENTUM, LOOKING FORWARD
OUR PILLARS OF RESPONSIBLE PROPERTY INVESTING INITIATIVE PROVIDES AN IMPORTANT FIDUCIARY FOUNDATION, ENABLING GREATER MARKET RESPONSIVENESS AND FINANCIAL OPPORTUNITY. WE ANTICIPATE CONTINUED EVOLUTION AND EXPANSION OF THIS INITIATIVE AS PART OF THE SERVICE WE PROVIDE TO OUR CLIENTS.
WE ARE PROUD TO HAVE ACHIEVED THE FOLLOWING MILESTONES AND AWARDS FOR WORK WE HAVE DONE TO DATE:
- Recognized as a Green Lease Leader by the Institute for Market Transformation and the U.S. Department of Energy's Better Building's Alliance (2017)8
- Received a performance band score of "A" by earning 47 out of 51 points in the UNPRI 2016 Assessment (2016)9
- Named as a World’s Most Ethical Company by the Ethisphere Institute (2016)
- Selected as an award winner for the Lighting Energy Efficiency in Parking (LEEP) Campaign (2015, 2016)
- Named to the CDP Climate Performance Leadership Index and Climate Disclosure Index which highlights S&P 500 companies committed to improving their impact on the environment (2014-2016)10
- Cited by Commercial Property Executive as being among the greenest U.S. real estate companies (2011 – 2015)11
- Achieved a perfect score in the management category from the GRESB Survey (2014-2016)12
- Received the Green Star designation from the Global Real Estate Sustainability Benchmark survey (2014-2016)12
- Our core property fund ranked in the top six among U.S. diversified property funds by the Global Real Estate Sustainability Benchmark (2014-2016)13
- Our core-plus commingled real estate strategy ranked in the top six among U.S. diversified property funds by the Global Real Estate Sustainability Benchmark (2010-2016)14
- Our value-add commingled strategy ranked in the top two among U.S. private property funds by the Global Real Estate Sustainability Benchmark (2013, 2014)15
- Received honorable mention for Sustainability Executive of the Year by Commercial Property Executive magazine (2013)
- Named Green Giant of the Year by Real Estate Finance & Investment (2008)
MEMBERSHIPS AND PROGRAM MILESTONES
- Launched a dedicated closed-end Green strategy for Private Real Estate Equity, one of the first institutional commercial real estate funds to adopt a holistic approach to integrating environmental, social, and governance principles (2009)
- Became an ENERGY STAR partner (2009)
- Became a signatory to the UN PRI (2010)
- Recognized as one of the BOMA STARS — an initiative of the Building Owners and Managers Association (BOMA) focused on voluntary efforts to address energy efficiency (2011)
- Expanded and formalized our Pillars of Responsible Property Investing initiative (2013)
- Launched a property assessment program to validate performance targets and identify future sustainability strategies (2013)
- Joined the Department of Energy’s Better Buildings Alliance (2014)
- Became a Global Real Estate Sustainability Benchmark (GRESB) member (2014)
- Launched a second dedicated closed-end Green strategy for Private Real Estate Equity (2014)
- Recognized as an Executive Member of EPA’s Certification Nation, in honor of the significant number of properties certified to the ENERGY STAR standard (2014)16
Seeking to continue building on past successes, Principal Real Estate Investors recently implemented several new programs targeting its environmental, social, and governance efforts. A Stakeholder Engagement Toolkit was issued to all property management teams, providing guidance and resources to better partner with tenants, residents, brokers, and service providers on sustainability issues. Additionally, the newly launched Property Performance Guidelines detail supplemental policies and practices for operational best practices. Together, these and other programs administered by Principal Real Estate Investors continue to strengthen the foundation of the PRPI initiative, leading to greater value for its real estate investments.