Responsible Property Investing1

As an adviser and fiduciary to institutional clients, Inland Institutional Capital, LLC ("ICAP") believes that environmental, social, and governance (“ESG”) issues can impact the performance of our client’s assets. Therefore, the Company must be prepared to address these factors when acquiring, disposing, and managing real estate.

Strategy

ICAP’s strategy is to: (1) incorporate environmental, governmental, and social sustainability criteria into its real estate investment analysis and decision-making process; (2) establish management guidelines that consider the importance of ESG; (3) advocate for greater awareness of ESG issues within the commercial real estate industry; and (4) report to investors and clients on the Company’s progress to meet the aforementioned goals. The Company has a Responsible ESG Investment Committee that oversees the implementation and management of ESG related plans. ICAP believes that ESG initiatives should complement its fiduciary role and maximize the long term investment performance of its portfolio. Given the complexity of ESG, the Company recognizes that the strategy will take multiple years to fully implement.

Environment

ICAP considers environmental sustainability to be an important issue for real estate owners, tenants, and employees. By being a good steward of the environment, the Company believes it will enhance both the quality of its portfolio and its relationship with the global community. A key feature of the company’s environmental strategy is energy conservation. ICAP believes that by improving the overall energy efficiency of its portfolio, the Company will be able to reduce its environmental impact and lower property operating expenses.

Social

As a member of The Inland Real Estate Group of Companies Inc.,2 ICAP is part of a long tradition of social responsibility and development. Part of this tradition can be explained by a corporate culture that emphasizes the importance of ethics and integrity. The Company believes that all stakeholders must be respected, including investors, employees, tenants, and members of the community at large. Through both financial means and direct employee participation, Inland has actively promoted social and economic growth in local communities for years. Furthermore, Inland strongly supports employee diversity and development. Inland is proud that its executive team includes men and women from many backgrounds, with numerous staff members having enjoyed long tenure with the firm.

Governance

Over the past 40 years, Inland has distinguished itself as an owner, manager, and financier within the commercial real estate industry. Inland credits its long term success in part to a corporate philosophy that emphasizes integrity. At Inland, integrity is a core value and an essential quality. Ethical behavior is expected in all aspects of its business from real estate operations to investor relations. All ICAP employees pledge to follow the Company’s “Code of Business Conduct and Ethics” and thus act in a responsible manner that avoids conflicts of interest and unfair dealing.

Inland is proud of its record on corporate governance and business ethics. Three times within the past ten years (2009, 2014 and 2017), the Chicago and Northern Illinois chapter of the Better Business Bureau (“BBB”) gave Inland the Torch Award for Marketplace Ethics. Torch Award honorees are companies that exemplify ethical business practices and a superior commitment to exceptional standards that benefit their consumers, employees, suppliers, shareholders and surrounding communities. According to BBB, Inland is the only commercial real estate company to have earned this award. Inland has been a BBB member since 1973, and is rated an “A+” company, the BBB’s highest designated ranking.


1 Any references to a property or portfolio are meant to relate to any assets owned by funds or accounts managed by ICAP.

2 "Inland" refers to some of the entities that are a part of The Inland Real Estate Group of Companies, Inc. which is comprised of a group of independent legal entities some of which may be affiliates, share some common ownership or have been sponsored and managed by subsidiaries of Inland Real Estate Investment Corporation.