2020 Annual Report Leading Through Crisis Our Mission

The Real Estate Roundtable brings together leaders of the nation’s top publicly-held and SULYDWHO\RZQHGUHDOHVWDWHRZQHUVKLSGHYHORSPHQWOHQGLQJDQGPDQDJHPHQWĬUPV with the leaders of major national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy. By identifying, analyzing and coordinating policy positions, The Roundtable’s business and trade association leaders seek to ensure a cohesive industry voice is heard by government RİFLDOVDQGWKHSXEOLFDERXWUHDOHVWDWHDQGLWVLPSRUWDQWUROHLQWKHJOREDOHFRQRP\ The Roundtable’s membership represents nearly 3 million people working in real estate; DERXWELOOLRQVTXDUHIHHWRIRİFHDQGLQGXVWULDOVSDFHRYHUPLOOLRQDSDUWPHQWVDQG nearly 3 million hotels rooms. The collective value of assets held by Roundtable members is approximately $3 trillion. Who We Are

Asset Managers 3% Owners 67% Financial Services 55% Private 20% 45% Public %DQNV FRPPHUFLDO LQYHVWPHQW 46% Mixed 26% Insurers 2İFH 0RUWJDJH%DQNHUV 13% Retail 12% Hotel 11% Housing 4% Industrial Real Estate Trade Organizations 10% Copyright © 2020 by $PHULFDQ+RWHO /RGJLQJ$VVRFLDWLRQ $+/$  The Real Estate • American Resort Development Association Roundtable Annual $5'$ • Association of Foreign Investors in Real Report 2020 (VWDWH $),5( •%XLOGLQJ2ZQHUVDQG0DQDJHUV $VVRFLDWLRQ,QWŔO %20$ •&&,0,QVWLWXWH &&,0 • CRE Finance The Roundtable liberally grants &RXQFLO &5()& • &5(:1HWZRUN &5(: • International Council of permission to quote and reprint 6KRSSLQJ&HQWHUV ,&6& •0RUWJDJH%DQNHUV$VVRFLDWLRQ 0%$ • NAIOP, the from its publications. Please &RPPHUFLDO5HDO(VWDWH'HYHORSPHQW$VVRFLDWLRQ 1$,23 • National Apartment contact our communications $VVRFLDWLRQ 1$$ •1DWLRQDO$VVRFLDWLRQRI+RPH%XLOGHUV 1$+% • National VWDıDWIRUPRUH $VVRFLDWLRQRI5HDO(VWDWH,QYHVWPHQW0DQDJHUV 1$5(,0 •1DUHLW 1$5(,7 • information. National Association of Realtors® 1$5 • National Multifamily Housing Council 10+& •3HQVLRQ5HDO(VWDWH$VVRFLDWLRQ 35($ • Real Estate Executive Council 5((& •8UEDQ/DQG,QVWLWXWH 8/, Table of Contents

4 Introduction 6 The Roundtable’s COVID-19 Engagement Timeline 8 Repairing the “Rent Obligation Chain” 10 Tax Policy 28 Roundtable Members 14 Capital & Credit 34 President’s Council 18 Energy & Climate Members 22 Infrastructure & Housing 37 Board of Directors 26 Homeland Security 39 6WDı 39 Committees

The Real Estate Roundtable 3 Meeting the Current Challenge

We begin our 21st year as the Real Estate the same longstanding commitment to sound, Roundtable with the nation’s economy in deep evidence-based, nonpartisan policy that distress due to the COVID-19 health crisis and undergirds all of our work and success— Americans’ rising up in civil protest to express from our response to the economic crisis in anger and frustration around racial injustice. 2009, to the passage of tax reform in 2017, to Our industry, and The Real Estate Roundtable, the establishment of terrorism risk insurance PXVWRıHUDSRVLWLYHYRLFHDWWKLVFULWLFDOWLPH and its long-term extension. We know from With hard work and strong policy assistance, experience that there is a path to recovery. solutions to the economic challenges we now And it is made more robust by appropriate face will come. Jobs will return. The economy policy measures adopted in short order. We will reset on a positive path. The same optimism now understand the unquestionable need for is not readily apparent regarding systemic a national pandemic insurance plan. And for racism, bias and inequality in our society. reasonable protections from liability for those We stand with peaceful protesters demanding who act with reasonable care. And for a program change. We do not condone violence. As leaders to address the threat to income streams and in the real estate industry we must speak out unmet obligations—be they rent or payroll or against racism when we infrastructure expenses—that a public health see it, take deliberate crisis creates. actions to encourage and promote diversity, equity Together, we are doing our part on behalf of and inclusion within and those we all serve, leading through innovation beyond our industry, our and problem-solving. :HKDYHRıHUHGQHZ homes, networks, and approaches to ensure the continued functioning communities. We must RIWKHĬQDQFLDOPDUNHWVZHKDYHWKRXJKWRI help political, business ways to make our buildings safe and to keep and community leaders RXUWHQDQWVKHDOWK\DQGZHRıHUEHVWSUDFWLFH come together and approaches for building operations and take concrete actions management to address the environment in WRVLJQLĬFDQWO\DQG which we all now live. In light of recent events, measurably combat the we have called for political, business and widening inequality and community leaders to join in actions that will systemic racism that has measurably combat the long-standing abuse and plagued our nation for prejudice, particularly when based on race or far too long. We pledge to gender. We do all this voluntarily, as we always take action and be part have, because it is consistent with our values of the solution. DQGUHĭHFWVRXUFRPPLWPHQWWRWKHORQJWHUP VDIHW\VHFXULW\HİFLHQF\DQGUHVLOLHQFHRIWKH Although the challenges buildings we create, own, and operate. Roundtable Chair Debra in these times are A. Cafaro (Chairman & unprecedented, our Policymakers must do their part too. CEO, Ventas, Inc.) response is based on As always, there are aspects of current law

4 2020 ANNUAL REPORT and regulations that limit the potential for appropriately-priced insurance product to recovery from COVID-19. And there are policy maintain their operations. The Roundtable opportunities that, if put in place, would facilitate is working diligently on plans for a national and improve the potential for recovery and Pandemic Risk Insurance Program. long-term economic growth. We are working • Establish Operational Guidance and hard, with your support and input through our Standards For the country to recover Roundtable committees, to accomplish the safely, building owners and operators following three primary goals, essential to must be able to refer to and adopt a set of our nation’s economic recovery. approved standards of care. Local, state, and/or federal guidance should set forth • Repair the “Rent Obligation Chain” The appropriate measures and guidelines to basic requirement of a strong economy ensure the safety of those who rely on our is that its participants can meet their hospitals, schools, recreational facilities, obligations to one another. Because stadiums and buildings. Voluntary many cannot live up to their financial compliance with agreed-upon standards commitments under the current should be incentivized and rewarded with circumstances, policymakers must offer a “safe harbor” from liability. meaningful relief so that a short-term tear in the fabric does not produce an irreversible collapse. Congress must fully Under the best of circumstances, our national bridge the nation’s economy through the recovery will take time and we must be patient. Our work is to prepare for that long recovery period of the virus and its impacts on value now, and to do so pragmatically. We remain and income. We must immediately address proud to represent such a uniquely broad range the rate of default on rental payments of real estate stakeholders, along with our 19 and do more than merely postpone the peer trade associations. With your support massive impacts of delinquency. In the and participation, we are eager to continue short term, unpaid rents quickly become our collective approach to secure our nation’s unpaid maintenance and security, payrolls, continued economic growth, reduce economic utility bills, state and local taxes and unmet disparities, and improve opportunities for budgets to fund education, first responders all Americans. like fire and emergency medical systems, and other government services. In the long term, the entire financial system is at risk and recovery becomes less likely. Roundtable • Secure Federally-Backed Insurance The President and CEO current circumstances, like those that Jeffrey D. DeBoer followed the attack of 9/11, create risk that the private insurance market is ill- equipped to calculate and insure. Without insurance, the majority (if not the entirety) of real estate owners and investors will not be able to operate in a post-COVID environment. The government must offer a fair market option for those who require an

The Real Estate Roundtable 5 From Crisis toward Recovery: Supporting Public Policy for a Post-Pandemic Environment

FEBRUARY 25 Joins to ask the National Association 28 “Roundtable Weekly” begins weekly coverage of Insurance Commissioners to specify of COVID-19 proposed relief for mortgage loan modifications Tax Policy Advisory Committee convenes to discuss tax issues associated with COVID-19 25 Jeff DeBoer shares industry views and perspectives in GlobeSt, “Where CRE MARCH Liquidity Stands Today” 5-6 Jeff DeBoer discusses effects at theension P Real Estate Association 26 Homeland Security Task Force hosts Deputy Director for Infectious Diseases with the CDC 9 Commissions research to track federal policymakers’ views of COVID-19 27 Releases a full analysis of the CARES Act on the day of its passage, and real estate 18 Urges White House, Nancy Pelosi, and Mitch implications McConnell to minimize businesses closures and unemployment 31 Joins in writing President Trump, Steven Mnuchin, Mitch McConnell, Chuck Schumer, 20 Encourages Treasury and IRS to provide Nancy Pelosi, and Kevin McCarthy in support temporary relief and flexibility for debt of a recovery fund restructurings APRIL 23 Asks Treasury to postone deadlines for like- 1 Asks the Financial Accounting Standards kind exchange transactions Board and SEC to suspend new Current Expected Credit Losses accounting standard 23 Roundtable members host a “Townhall” conference call to address pandemic priorities 2 Sustainability Policy Advisory Committee convenes to discuss CDC and EPA cleaning 24 Joins in writing the Federal Reserve, protocol changes in energy use and Treasury, and Federal Housing Finance occupancy Agency to reestablish liquidity, stabilize asset prices, and expand TALF to include non- 3 Roundtable Chair Debra Cafaro releases agency CMBS a COVID-19 Video Alert detailing how the industry is working to repair frozen liquidity 24 Calls on owners and operators to proactively conditions engage tenants respecting rent obligations and for regulators to encourage lender- 4 Urges Treasury to issue critical tax guidance borrower cooperation to achieve ensuring partnerships and real estate debt restructuring businesses can access tax relief enacted in CARES Act

6 2020 ANNUAL REPORT 4 Joins a financial industry oalitionc and 6 Dr. Joseph Allen, Assistant Professor at affordable housing advocates in support of a Harvard’s School of Public Health and source for liquidity to mortgage servicers Director of its Healthy Buildings Program, joins Jeff DeBoer in a webinar conversation 8 Submits an 8-Point Plan to improve the Payroll Protection Program 6 Jeff DeBoer participates in the Urban Lab Podcast to discuss the pandemic’s ongoing 9 Supplements annual membership survey to impact on CRE, recommendations for collect perspectives and priorities in light of reforming the PPP, pandemic risk insurance COVID-19 and the “rent obligation chain”

10 Urges the Financial Condition Committee 14 Dan Neidich, former Roundtable Chairman, of the National Association of Insurance joins Jeff DeBoer to discuss responses to Commissioners to expand the Guidance for COVID-19 with the Stanford Alumni Real Troubled Debt Restructurings Estate Council

14 Urges for more immediate action from 15 Convenes leaders of the property and Treasury, the Fed, and the Federal Housing casualty insurance industry to strategize Finance Agency a risk insurance program responsive to pandemic risk 14 President Trump names ten Roundtable members to a task force of business leaders 19 Surveys SPAC members to inform US-EPA to guide the reopening of the U.S. economy ENERGY STAR policies in light of lower building occupancy levels 16 Urges the SBA to issue guidance confirming that developers and landlords qualify for PPP 20 Commissions third-party researchers to engage senior federal policymakers to track 19 Establishes Building Re-Entry Working Group their perceptions of the real estate sector as government authorities begin re-entry and priority policies for recovery protocols 27 Joins coalition urging Congressional leaders 20 Asks Steven Mnuchin to clarify, under his to provide “safe harbor“ to businesses disaster tax authority, the scope of the against frivolous COVID-19 lawsuits. deadline extension for like-kind exchange transactions JUNE 1 Supplements its annual membership 22 Joins NAREIT to urge Steven Mnuchin and research with interviews across the Fed Chairman Powell to expand the Main membership to better track member Street Lending Programs priorities and perspectives on COVID-19

30 Jeff DeBoer joins BisNow to share 8 Urges House Financial Services Committee perspectives on PPP, liability protection, to develop rental assistance programs for and Pandemic Risk Insurance residential and business tenants impacted by COVID-19. MAY 5 RER Senior Vice Presidents participate in “The Policy Response to COVID-19: Implications for Real Estate,” hosted by the Pension Real Estate Association

The Real Estate Roundtable 7 Repairing the “Rent Obligation Chain”

Congress has provided unprecedented levels families that rent their homes will also face of financial support to American families and increasing needs for rental assistance. workers impacted by COVID-19. However, there Going forward, Congress should craft a is no federal program solely focused on helping program that helps low-income and workforce American businesses meet their operating households meet their monthly rent obligations. expenses like rents and mortgages. Especially for retail and hospitality sector tenants Congress should restore the “Obligation Chain” shuttered as a result of government mandates, that underpins the U.S. economy by helping rent collections have declined drastically since impacted businesses and families pay their rent. the start of the crisis. An economic “obligation chain” underpins the Simply put, American workers will not be able rental and mortgage systems. Failure in any to return to work if American employers are one of the links will cause harmful upstream unable to pay their rent obligations. The last and downstream effects on employment, state thing shuttered businesses need as they start and municipal tax receipts, infrastructure and security, and retirement savings. to re-open, after weeks of being closed, is to be saddled with paying substantial “legacy” • If rents go unpaid, then landlords cannot rent obligations. support their own workforce of cleaning crews, security staff, maintenance As CARES Act programs (like expanded workers, landscapers, building engineers unemployment benefits) face expiration, and property managers – the essential

Business Defaults on Rent

Utilities, Security Services, Infrastructure Is Unpaid

Investors (e.g., pension funds) Lower Returns

Real Estate Workers Property Values and Are Laid Off Tax Revenues Fall

8 2020 ANNUAL REPORT workforce that keeps our building • The program should be structured to ecosystems clean, safe, and functioning. encourage partial rent payments where • Unpaid rent also leaves landlords without tenants have the economic wherewithal the liquidity to pay power, heating, water, to do so. Internet delivery, and other utilities upon • For residential rent assistance, ample which their business tenants depend. support should be provided for both • Unpaid rents will diminish commercial qualifying low- and middle-income property values, which then affect households. property tax revenues that fund first • For business rent assistance, tenants and responders, schools, public hospitals, landlords should have “skin in the game” infrastructure, and other necessary and remain obligated to pay and forgive, community services. respectively, some portion of due and • A cascade of foreclosures on commercial owing rent. Businesses in economically buildings would affect the financial distressed areas should be eligible for security of lenders and investors– higher levels of temporary rent support. community banks, life insurance companies, mortgage servicers, state and employee pension funds, public debt markets, and others.

Proposal for a Temporary Rent Assistance Program to Assist Families and Businesses

The Roundtable recommends that complementary assistance programs for both residential and business tenants should be included in further Congressional responses that help our economy recover from COVID-19:

• Tenants should certify as to negative economic impacts from the virus (e.g., lost job, business closed by government order). • Any assistance should go directly to residential or business tenants. Source: Datex Property Solutions; CoStar Risk Analytics; Green Street Advisors • Qualifying tenants should not be subject to any credit score or rating downgrade if they receive rent assistance.

The Real Estate Roundtable 9 interest for real estate businesses despite the enactment of an otherwise broad-based Tax Policy limitation on the business interest deduction. The final law, however, delegated significant The Roundtable played a central role in the rulemaking authority to the Treasury Secretary. passage of key elements of the Tax Cuts and The Roundtable has actively engaged the Treasury Jobs Act of 2017 (TCJA) that promote real estate Department regarding the new limitation on investment and job growth. By preserving a sound, business interest deductibility. For example, structural foundation of tax rules for real estate, The Roundtable successfully advocated for TCJA helped ensure that real estate entered the regulations that allow partners to deduct interest COVID-19-induced economic downturn in a strong payments on loans if the loan proceeds are and healthy position. subsequently invested in a partnership engaged in a real property trade or business. The Treasury Since then, the Roundtable has worked with Department is currently finalizing the proposed policymakers to ensure the 2017 reforms regulations for the business interest limitation. are implemented as Congress intended. The The Roundtable is working to ensure that those Roundtable is also building the necessary regulations retain the deductibility of business foundation to ensure that policymakers have interest in all types of real estate ownership the right data and analysis to understand how arrangements. potential future reforms are likely to affect real estate investment and jobs, as well as the broader economy, especially during the period of pandemic Foreign Investment in U.S. and economic recovery. The Roundtable continues Real Estate to produce objective, fact- and economic-based The Foreign Investment in Real Property Tax Act research on the role and importance of rational (FIRPTA) imposes capital gains tax on the sale cost recovery rules, like-kind exchanges, the of U.S. real estate owned by a foreign investor. deductibility of business interest, and carried Originally, FIRPTA was meant to deter foreign interest as an incentive for entrepreneurial risk- purchases of U.S. agricultural and ranch land. It taking. In 2020, our focus remains on promoting has since become a major impediment to the flow tax policies that support of foreign equity investment to U.S. real estate sustainable economic growth, and infrastructure, generally. FIRPTA places a job creation, and healthy, discriminatory tax on real estate investment. In livable communities. recent years, Roundtable advocacy has helped mitigate the harm of FIRPTA through legislation Deductibility and rule-making, and we continue to push for of Business additional reforms and repeal. Interest FIRPTA Foreign Pension Fund The health and stability of Exemption House Ways and Means real estate markets rely on Committee Chairman Richard Congress passed meaningful reforms to FIRPTA the ability to borrow without Neal (D-MA) discusses the in 2015, exempting foreign pension funds from a tax penalty. The focused the tax and doubling the amount a foreign interest prospects for additional tax advocacy of The Roundtable may invest in a U.S. publicly traded REIT. changes and legislation, and during the Tax Cuts and Jobs Those changes are still being implemented the importance of commercial Act debate helped preserve today. Pension systems vary widely across the real estate to the economy. the deductibility of business globe. After advocating for enactment of the

10 2020 ANNUAL REPORT foreign pension fund exemption, The Roundtable Invest in America Act has worked to ensure that the exemption covers In April 2019, Representatives John Larson (D- the broad range of retirement arrangements in CT) and Kenny Marchant (R-TX) introduced the other countries, including Social Security-type bipartisan Invest in America Act to fully repeal IXQGV7KLVHıRUWFXOPLQDWHGLQWKHHQDFWPHQW FIRPTA. The legislation seeks to build on the of technical corrections to the foreign pension 2015 FIRPTA reforms included in the Protecting exemption in 2018 and the issuance of favorable Americans from Tax Hikes (PATH) Act. The proposed regulations for the exemption by the PATH Act resulted in a 33% increase in global Treasury Department in 2019. investment in U.S. real estate. However, even in its revised form, FIRPTA continues to hinder job The recent regulations further clarify the scope growth and infrastructure improvements. of the pension fund exemption and resolve most It also serves as an anti-competitive tax barrier of foreign investors’ remaining concerns. Among WKDWGHĭHFWVJOREDOFDSLWDOWRRWKHUFRXQWULHV other improvements, the regulations adopt a The passage of the Invest in America Act would EURDGYLHZRQZKDWFRQVWLWXWHVDŕTXDOLĬHGIRUHLJQ help put Americans back to work by spurring SHQVLRQIXQGŖDQGFRQĬUPWKDWHQWLWLHVZKROO\ construction and development of productive U.S. owned by multiple foreign pension funds can real estate and infrastructure. Its enactment qualify for the exemption. is a key tax policy priority for The Roundtable and a broad coalition of business and labor IRS Notice 2007-55 organizations. Poorly drafted sub-regulatory tax guidance issued in 2007 (IRS Notice 2007-55) creates Opportunity Zones unwarranted FIRPTA liability for certain inbound investments in U.S. real estate and infrastructure Opportunity Zones, created in the Tax Cuts and structured through domestically controlled REITs. Jobs Act (TCJA) of 2017, use capital gains tax The Notice subjects the liquidating distribution incentives to promote long-term investment in of a domestically controlled REIT as a sale of economically struggling, low-income communities. the REIT’s underlying assets, rather than a sale After passage of TCJA, The Roundtable created of its stock—the customary treatment. For a working group to develop recommendations several years, The Roundtable has encouraged aimed at maximizing the positive economic policymakers to help spur greater foreign impact of the program. Many of The Roundtable’s investment and job creation by revisiting its misguided Notice. Last year, a bipartisan group of Senators from the Finance Committee wrote to the U.S. Treasury Department urging the withdrawal of IRS Notice 2007-55. In February 2020, a group of House members submitted a similar letter.

Repealing IRS Notice 2007-55 would restore the intent of Congress, provide parity to investors, and increase direct foreign investment in U.S. commercial real estate and infrastructure. The (R-L) Governor Gina Raimondo of Rhode Island and Rep. Roundtable will continue raising awareness of the 6WHSKDQLH0XUSK\ ')/ DPHPEHURIWKH+RXVH:D\VDQG harm caused by the Notice and ensure that it is 0HDQV&RPPLWWHHRXWOLQHGHıRUWVWRZRUNDFURVVWKHDLVOH revisited by tax authorities. EXLOGLQJDVROXWLRQVRULHQWHGDSSURDFKWRWD[SROLF\

The Real Estate Roundtable 11 recommendations were included in the proposed • Spur productive real estate investment in regulations, such as a working capital safe low-income communities by providing that harbor for real estate and other projects that take a 50% increase in the basis of a building considerable time to complete. Treasury issued constitutes a substantial improvement. ĬQDOUHJXODWLRQVLQ'HFHPEHUWKDWLQFOXGHG • Strengthen the economic incentives by a number of additional improvements advocated codifying the tax rate on—and extending E\7KH5RXQGWDEOH$PRQJWKHFKDQJHVWKHĬQDO the recognition date for—deferred gain, rules clarify the types of gain that investors may and consequently, the deadlines that must roll over into opportunity funds, allow multi-asset be met in order to qualify for the increase opportunity funds to sell individual assets after 10 in basis for gain rolled into an opportunity \HDUVZLWKRXWORVLQJWD[EHQHĬWVDQGOLEHUDOL]HWKH fund. rules that relate to the improvement of existing, vacant properties located in Opportunity Zones. Implemented wisely, Opportunity Zones should be Taxpayers have invested an estimated $20-30 a powerful catalyst for transformative real estate billion in opportunity funds through April 2020. investment in parts of the country that In May, The Roundtable and ten other national are struggling economically. real estate organizations wrote to Members of Congress and urged them to consider Opportunity LIBOR Zone rule changes that could spur investment, In the last year, The Roundtable successfully promote capital formation and bolster job growth advocated for Treasury regulations that remove in economically disadvantaged communities potential tax liability associated with the phasing impacted by the COVID-19 pandemic. out of LIBOR (the London Inter-bank Rate) by the The changes would: end of 2021. In June 2019, The Roundtable asked the Treasury Department and the IRS for guidance • Allow opportunity funds to raise capital from on the tax treatment of the LIBOR transition. all sources, not just gain rolled over from a Guidance is needed in order to reduce the risk of recently disposed investment.

Auto/Travel, $950M An IRS study Other, $65B Interest found that Commissions,$1.8B Expense, 1.48 million $114B Advertising, $2.6B real estate partnerships Insurance, $12.5B collected Cleaning &

$524 billion Maintenance, $19B in gross rent Wages & Salaries, and incurred $19.5B $483 billion in Repairs, $26B Depreciation, expenses: $109B

Legal& Professional Expenses, $29B Source: Internal Revenue Service

Utilities, $31B Taxes, $52B 12 2020 ANNUAL REPORT Progress on Real Estate Tax Priorities in FY 2020

1. Proposed business interest regulations allow 6. CARES Act temporarily increases limit on partners to deduct interest on loans used to business interest deductibility; allows real estate finance real estate partnerships businesses to revoke prior elections 2. Proposed tax regulations allow real estate 7. Treasury guidance grants real estate borrowers and lenders to replace LIBOR partnerships temporary authority to file in financial contracts without a deemed amended tax returns to benefit from tax relief in modification of the loan that triggers tax liability CARES Act 3. Final Opportunity Zones regulations include key 8. Treasury guidance allows REITs to temporarily provisions encouraging real estate rehab. and reduce cash distributions in light of pandemic new construction in distressed communities 9. Treasury guidance extends deadlines for 1031 4. Proposed FIRPTA regulations clarify and expand transactions, Opportunity Zone investments due pension fund exemption to pandemic 5. CARES act retroactively clarifies nonresidential 10. 15 national real estate organizations real estate improvements qualify for 15-year commission updated academic study on depreciation; allows real estate businesses to economic benefits of real estate like-kind carry back 2018-2020 losses for 5 years; claim exchanges refunds for prior years market disruption and to clarify how the IRS will treat financial contracts when they replace the Like-kind Exchanges expiring LIBOR with a substitute reference rate. The landmark Tax Cuts and Jobs Act preserved like-kind exchanges for real estate while repealing LIBOR is used in about $200 trillion of financial exchanges (section 1031) for all other types of contracts, including $1.3 trillion of commercial assets. The Roundtable worked closely with real estate loans. The replacement of LIBOR in industry partners to demonstrate the economic existing agreements presents significant tax benefits of section 1031. The industry sponsored risks. Tax authorities could view the replacement an unprecedented academic study that examined of LIBOR as a debt modification that triggers and analyzed 1.6 million commercial real estate taxable gain or loss for a lender, as well as debt transactions over a 14-year period to assess the discharge income for a borrower. The Roundtable impact of section 1031 on investment, liquidity, recommended that the Treasury give borrowers holding periods, capex, tax revenue, and jobs. and lenders flexibility to replace LIBOR with an The study by Professors David Ling (Univ. Fla.) index that reflects objective changes in the cost and Milena Petrova (Syracuse U.) provided clear, of borrowing money, such as a broad index of empirical evidence of the importance of real estate Treasury or corporate borrowing rates, in addition exchanges to the U.S. economy. to a list of rates suggested by various regulators. Today, however, like-kind exchanges remain In October 2019, Treasury issued proposed a target among certain policymakers. The regulations that largely align with The Roundtable and 14 other organizations have Roundtable’s recommendations. The proposed commissioned Professors Ling and Petrova to rules include a reasonable safeguard to prevent update their highly-regarded research on real potential abuse–they require that the fair market estate like-kind exchanges. The study will provide value of the modified financial instrument be an even more comprehensive dataset to assess “substantially equivalent” to its value before the role and importance of like-kind exchanges in modification. supporting real estate jobs and investment.

The Real Estate Roundtable 13 Capital & Credit

7KH5HDO(VWDWH5RXQGWDEOHOHDGVDQGVXSSRUWVHıRUWVWRPDLQWDLQDSSURSULDWHOHYHOVRIFUHGLWFDSDFLW\ DQGFDSLWDOPDUNHWOLTXLGLW\IRUWKHFRPPHUFLDODQGPXOWLIDPLO\UHDOHVWDWHLQGXVWU\ZKLOHUHĭHFWLQJ sound underwriting and rational pricing of economic risk. The Roundtable is actively engaged with policymakers to encourage the essential elements of a reliable credit system, such as measures that promote stable valuations, appropriate transparency, appropriate systemic safeguards and risk management tools that maintain liquidity.

TRIA stabilize the market following 9/11 and to ensure the continued availability of terrorism coverage The Terrorism Risk Insurance Act (TRIA) was for commercial policyholders in the future. created as a response to the inability of insurance markets to appropriately quantify the risks DVVRFLDWHGZLWKWHUURULVPDQGWRRıHUFRYHUDJH GSEs to commercial policyholders. TRIA was enacted Nearly a dozen years after government sponsored in 2002 and reauthorized in 2005, 2007 and enterprises (GSEs) Fannie Mae and Freddie Mac again in 2015. In December 2019, the House and were put into conservatorship, the GSEs have Senate approved a seven-year reauthorization of not been reformed. Last year, The Roundtable TRIA. The Roundtable actively pushed for a clean engaged the Senate Committee on Banking, reauthorization of TRIA—a feat achieved a full year +RXVLQJDQG8UEDQ$ıDLUVWRDGYRFDWHIRUWKH before the legislation was supposed to sunset. UHIRUPRIWKHQDWLRQŔVKRXVHĬQDQFHV\VWHP TRIA is essential for commercial real estate as The Roundtable urged the Treasury and the lenders require “all risk” insurance coverage, Federal Housing Finance Agency (FHFA) to work including terrorism coverage, to cover the risk of with Congress to end conservatorship through loss to collateral. TRIA continues to be extremely comprehensive, bipartisan legislative reforms. HıHFWLYHLQDFKLHYLQJLWVSULPDU\SXUSRVHVWR GSE reform has been a top priority for the Trump Administration, Senate Banking Committee Chair Mike Crapo (R-ID), and House Financial Services Terrorism Risk Insurance Act Committee Chairwoman Maxine Waters (D-CA). Loss Sharing Changes The Roundtable is actively engaged with senior VWDıDQGHOHFWHGRİFLDOVWRHQVXUHVHQVLEOHGDWD 10% based reform. 20% %HQHĬFLDO2ZQHUVKLS 90% 80% Last year, the U.S. House of Representatives passed the Corporate Transparency Act of 2019, which requires certain corporations and 2003 2020 limited liability companies (LLCs) to disclose Coshare Insurer Government LQIRUPDWLRQDERXWWKHLUEHQHĬFLDORZQHUVWR the Treasury Department’s Financial Crimes Source: GAO analysis of Terrorism Risk Insurance Act (TRIA), its reauthorizations, and Department of the Treasury data. Enforcement Network (FinCEN). Although the bill GAO-20-348

14 2020 ANNUAL REPORT /5 5RXQGWDEOHPHPEHU:LOOLDP:DONHU :DONHU 'XQORS )HGHUDO+RXVLQJ)LQDQFH$JHQF\'LUHFWRU0DUN&DODEULDDQG+RXVH )LQDQFLDO6HUYLFHV&RPPLWWHH5DQNLQJ0HPEHU5HS3DWULFN0F+HQU\ 51& GLVFXVVWKHRYHUVLJKWRI)DQQLH0DHDQG)UHGGLH 0DFŝWKH*RYHUQPHQW6SRQVRUHG(QWHUSULVHV *6(V ŝZKRRZQRUJXDUDQWHHWULOOLRQLQVLQJOHDQGPXOWLIDPLO\PRUWJDJHV

UHĭHFWV&RQJUHVVŔVXSSRUWIRUODZHQIRUFHPHQW in the United States (CFIUS) review process and investigations into shell companies engaged in UHSUHVHQWVWKHĬUVWXSGDWHWRWKH&),86VWDWXWH money laundering, tax evasion, and terrorism in more than a decade. On February 13, 2020, ĬQDQFLQJLWSODFHVPDQ\FRVWVDQGOHJDOEXUGHQV two sets of enhanced regulations governing the on small businesses, especially those in the real &),86EHFDPHHıHFWLYHLPSOHPHQWLQJ),550$Ş estate industry. one covering certain real estate transactions and one covering other investments involving The Senate introduced its own bills addressing U.S. businesses. The real estate regulation EHQHĬFLDORZQHUVKLSŞWKH7UXH,QFRUSRUDWLRQ permits the CFIUS to review certain purchases, Transparency for Law Enforcement (TITLE) Act leases and concessions of real estate by foreign and the Corporate Transparency Act of 2019. The persons—including REITs—irrespective of whether Roundtable engaged the House Financial Services such transactions involve a U.S. business. Their Committee senior leadership and the Senate authority to review real estate transactions is Committee on Judiciary to share—in coalition limited to those transactions involving property with other organizations—the reasons why the near sensitive U.S. locations, such as airports, proposed legislation would impose burdensome, maritime ports, and military installations, and duplicative reporting burdens on approximately WKDWDıRUGWKHIRUHLJQLQYHVWRUZLWKFHUWDLQULJKWV 4.9 million small businesses in the United States related to the property. The Roundtable submitted and threaten the privacy of law-abiding, legitimate comments to the Treasury regarding the proposed small business owners. The Roundtable continues regulations and held follow-up meetings with to work with lawmakers in support of a balanced approach to the issue that would inhibit illicit money laundering activity without the imposition of additional and costly reporting requirements on non-bank businesses, especially those in the real estate industry. Committee on Foreign Investment in U.S. (CIFIUS) Reform The Foreign Investment Risk Review +RXVH)LQDQFLDO6HUYLFHV&RPPLWWHH&KDLUZRPDQ0D[LQH Modernization Act (FIRRMA) reforms and :DWHUV '&$ SOD\HGDNH\UROHLQWKHUHDXWKRUL]DWLRQRIWKH modernizes the Committee on Foreign Investment 7HUURULVP5LVN,QVXUDQFH3URJUDP

The Real Estate Roundtable 15 7UHDVXU\VWDı:KLOHWKH5RXQGWDEOHSUDLVHG The Roundtable has been working to develop and HıRUWVE\&),86DQGWKH867UHDVXU\WRSURWHFW enact measures to address the COVID-19 crisis, and safeguard investment in U.S. markets, it restore credit capacity and capital market liquidity. raised concerns about the need for regulatory Consistent with Roundtable recommendations, ĭH[LELOLW\DQGFHUWDLQDVSHFWVRIWKHUXOHVWKDWDUH the U.S. government and the Federal Reserve not only unnecessarily complex but undermine have taken unprecedented steps to address predictability and transparency the COVID-19 crisis. The Fed cut its target for from the standpoint of investors. the federal funds rate, the rate banks pay to borrow from each other overnight, by a total of CECL 1.5 percentage points since March 3, bringing it down to a range of 0 percent to 0.25 percent. At the beginning of 2020, the Financial Accounting The Fed has also resumed purchasing massive Standards Board (FASB) began to require that amounts of securities—including mortgage backed banks estimate and report loan losses. This securities—a key tool employed during the Great accounting rule was issued by the FASB in 2016 Recession, when the Fed bought trillions of long- DVDUHVXOWRIWKHĬQDQFLDOFULVLV&XUUHQW term securities. Expected Credit Loss (CECL) standards impact the way banks calculate reserves on assets and In addition, Title IV of the Coronavirus Aid, Relief expected loss over the life of a loan. The new and Economy Security Act (CARES Act)—Economic CECL standard changes the way banks calculate 6WDELOL]DWLRQDQG$VVLVWDQFHWR6HYHUHO\'LVWUHVVHG UHVHUYHVRQDVVHWVUHTXLULQJFHUWDLQĬQDQFLDO 6HFWRUVRIWKH8QLWHG6WDWHV(FRQRP\—allocates institutions to estimate expected loss over the $454 billion through the Treasury to support some life of a loan. Real estate stakeholders worry that nine Federal Reserve credit facilities, established banks may reduce lending volumes as they build under Section 13(3) of the Federal Reserve Act, up additional capital reserves to comply with to boost lending to distressed sectors of the CECL. The Roundtable continues to work with the economy. This can be levered by the Federal FASB and the SEC to ensure that credit capacity is Reserve to support $4.5 trillion in lending. One of not impaired. the nine credit facilities is the Term Asset-Backed Securities Lending Facility (TALF), which now In light of the COVID-19 crisis, The Coronavirus includes AAA-rated legacy agency and non-agency Aid, Relief, and Economic Security (CARES) commercial mortgage-backed securities (CMBS) Act permits an insured depository institution, and commercial mortgages as eligible collateral. EDQNKROGLQJFRPSDQ\RUDQ\DİOLDWHWKHUHRI Another credit facility—the Main Street Lending to temporarily delay measuring credit losses Program (MSLP)—aims to support businesses RQĬQDQFLDOLQVWUXPHQWVXVLQJWKHQHZ&XUUHQW too large for the Small Business Administration’s Expected Credit Losses (CECL) accounting Paycheck Protection Program (PPP) and too small standard until December 31, 2020, or the date on for the Fed’s two corporate credit facilities. The which the coronavirus-related national emergency Roundtable continues to encourage policymakers declaration terminates. WRUHĬQHWKH7$/)DQG06/3WRSURYLGHHVVHQWLDO liquidity for the commercial real estate sector. Restoring Liquidity in Real Estate Credit and Capital Regulatory Forbearance Markets ,PSRUWDQWO\WKHĬQDQFLDOUHJXODWRU\DJHQFLHV issued a 5HYLVHG,QWHUDJHQF\6WDWHPHQWRQ/RDQ

16 2020 ANNUAL REPORT Modifications by Financial Institutions Working continuity insurance availability raises concerns with Customers Affected by the Coronavirus, for policyholders, so it is important to enact an which encourages financial institutions to work effective federal program to address these gaps. constructively with borrowers affected by Working with industry partners, The Roundtable COVID-19 and views prudent loan modification has assembled a coalition to develop and enact programs to financial institution customers an effective program. As policymakers consider affected by COVID-19 as positive actions that additional stimulus measures, it is important can effectively manage or mitigate adverse to enact measures that provide liquidity to put impacts on borrowers, and lead to improved loan American workplaces in a position to reopen performance and reduced credit risk. Additionally, and rehire. Looking forward, a Federal business under Sections 4013 of the CARES Act—Temporary continuity insurance program should be put into Relief From Troubled Debt Restructurings— place before there is a recurrence of pandemic provides banks the option to temporarily suspend or government-ordered shutdown in response to certain requirements under U.S. GAAP related to other phenomena. To address this dilemma, there troubled debt restructurings (TDR) for a limited are a number of preliminary legislative proposals period of time to account for the effects of being developed—some prospective and some COVID-19. Section 4022 grants up to 180 days of both retrospective and prospective—including the forbearance to borrowers with federally-backed Workplace Recovery Act and the Pandemic Risk residential mortgage loans. Section 4023 permits Insurance Act. The Roundtable is working with a multifamily borrower (5+ units) with a federally- policymakers and stakeholders to help develop backed multifamily mortgage loan to request an effective pandemic risk, business continuity forbearance for a 30-day period, with up to two insurance program that addresses the current 30-day extensions. crisis and provides the economy with the coverage it needs to address future pandemics. The Roundtable, along with a broad coalition of industry organizations, continues to urge Paycheck Protection policymakers to accommodate the present economic reality and enact measures that Program (PPP) provide vital liquidity to distressed sectors of the The PPP is one of the key CARES Act programs economy impacted by COVID-19. The Roundtable’s to help small businesses through the economic Real Estate Capital and Credit Policy Advisory fallout from COVID-19. While the program’s Committee (RECPAC) continues to provide roll-out has been hampered by questions of what constructive recommendations to policymakers kinds of businesses are eligible for forgivable while communicating the industry’s ongoing PPP loans, The Roundtable supports the platform concerns about the crisis. primarily as a means to help small establishments and business tenants stay afloat and keep their Development of A Federal workers on payroll. Elements of The Roundtable’s “8-Point Plan to Reform the PPP” sent to policy Pandemic Risk-Business makers shortly after the CARES Act’s passage Continuity Program have been adopted – such as extension of the loan forgiveness period and more flexibility The COVID-19 crisis has highlighted the lack of to allow PPP proceeds to be used for ordinary insurance availability for catastrophic pandemic business expenses like monthly payments on rent, events. Most business interruption (BI) insurance mortgage interest, and utility bills. policies fail to cover pandemic risk related claims. The lack of commercial pandemic risk/business

The Real Estate Roundtable 17 Energy & Climate

The country’s economic recovery and future regarding an omnibus proposal that included growth will depend more than ever on improved the following energy and climate policy energy efficiency and reliable, cost-efficient recommendations, discussed at more clean energy sources. length below:

Over the last decade, the commercial building • Improving the process for establishing stock has become far more energy efficient building energy codes. and increasingly reliant on renewable energy • Enhancing EPA’s ENERGY STAR incentive sources. The significant progress thus far in programs for both commercial buildings the built environment’s clean energy transition and tenants. has not been driven by federal-level energy • Ensuring data quality and integrity in mandates on private buildings, but rather on the federal Commercial Building Energy national voluntary guidelines, standards and Consumption Survey. recognition programs that have spurred market • Accelerating depreciation to encourage the transformation. many economic benefits of investment in high-performance equipment for existing The Roundtable remains committed to policies commercial and multifamily buildings. that promote optimal and cost-effective energy • Fostering public-private partnerships efficiency investments in buildings. In November to finance safety and resiliency 2019, The Roundtable sent a comment letter improvements to the electricity grid, the to the Chair and Ranking Member of the natural gas pipeline network, and other House Select Committee on the Climate Crisis energy infrastructure assets.

U.S. Total Energy Production and Consumption (1950-2020) In quadrillion British thermal units (Quads)

120 101.0 quads 100 consumption 100.2 quads 80

60 production 40

20

0 1950 1960 1970 1980 1990 2000 2010 2020

Source: U.S. Energy Information Administration, Monthly Energy Review

18 2020 ANNUAL REPORT Enhancing EPA’s ENERGY “ENERGY STAR for Tenants” program, which RıHUVIHGHUDOŝOHYHOUHFRJQLWLRQIRU7HQDQWVŔ STAR programs for responsible energy use. The Roundtable urges commercial buildings EPA to expand version 2.0 of “ENERGY STAR and tenants. for Tenants” program to include retail tenants in 2020. 7KH5RXQGWDEOH&RQWLQXHVWR6XSSRUW)XQGLQJ for EPA’s ENERGY STAR and “ENERGY STAR for Tenants” Programs. Improving the process for establishing building The Roundtable has long supported the EPA energy codes. ENERGY STAR and “ENERGY STAR for Tenants” programs, both of which encourage energy 7KH5RXQGWDEOH-RLQV,QGXVWU\DQG(QYLURQPHQWDO /HDGHUV,Q6XSSRUWLQJWKH(QHUJ\6DYLQJVDQG HİFLHQF\KHOSUHVXOWLQORZHURSHUDWLQJFRVWV Industrial Competitiveness (ESIC) Act. better mortgage terms for real estate owners and correlate to higher sales prices or rental The Roundtable also supports the bipartisan rates. The Roundtable continues to advocate for Energy Savings and Industrial Competitiveness &RQJUHVVWRDSSURSULDWHVXİFLHQWIXQGVIRUWKH (ESIC) Act, which brings much-needed existing ENERGY STAR program, and to improve transparency to the process by which the and update the current “scoring” process under U.S. Department of Energy (DOE) helps shape which buildings may qualify for ENERGY STAR model building energy codes. The Act directs status. The Roundtable recently completed DOE to consider comments from real estate a year-long study, under the guidance of our Sustainability Policy Advisory Committee (SPAC), VWDNHKROGHUVUHJDUGLQJWKHFRVWVĬQDQFLDO returns, and small business impacts associated which yielded recommendations to ensure a fair with code developments that drive building scoring model for ENERGY STAR recognition. investments in HVAC, lighting, insulation and windows. The Roundtable was among a group This year, The Roundtable will continue of prominent industry and environmental to support the EPA’s development of the

Sen. Rob Portman (R-OH) has championed 5RXQGWDEOHEDFNHGSROLFLHVWKURXJKRXWWKH \HDUVVXFKDV(1(5*<67$5OHJLVODWLRQDQG PRVWUHFHQWO\WKHELSDUWLVDQ(QHUJ\6DYLQJV and Industrial Competitiveness (ESIC) Act.

The Real Estate Roundtable 19 leaders to show their support of the ESIC Act at Furthermore, the COVID-19 pandemic has a press conference held by Republican Senator FDXVHGVLJQLĬFDQWFKDQJHVLQEXLOGLQJ Rob Portman and Democratic Senator Jeanne occupancy and associated energy use. Shaheen last summer. The Roundtable will The Roundtable will work with EPA and EIA to continue to support the ESIC Act to incentivize ensure that federal-level energy consumption higher energy performance in real estate data collected during the pandemic does not while simultaneously allowing for appropriate skew results of CBECS estimates or ENERGY ĭH[LELOLW\DQGFRQVLGHUDWLRQIRUWKHHFRQRPLF STAR benchmarking practices. HıHFWVRIHQHUJ\UHGXFWLRQFRGHWDUJHWV Encouraging federal Ensuring data quality coordination with state/ and integrity in the local climate laws. federal Commercial An increasing number of states and localities Building Energy are establishing regulatory programs that Consumption Survey. do not simply require buildings to disclose HQHUJ\XVDJHRUPHHWHİFLHQF\WDUJHWVEXWWR The Roundtable Supports Data Sharing and also require that buildings draw power from ,QWHJULW\%HWZHHQ)HGHUDO$JHQFLHV renewable energy sources. Support from the federal government through the Environmental High quality data regarding buildings’ energy Protection Agency, the Department of Energy, consumption is critical now more than ever in and the Federal Energy Regulatory Commission the COVID-19 era. must help enable—and not hinder—building owners’ compliance with these state and The U.S. Energy Information Administration local laws. (EIA)—the federal Energy Department’s data- gathering arm—periodically conducts the Commercial Building Energy Consumption Accelerating depreciation Survey (CBECS). CBECS is the only nationwide, to encourage investment random-sample survey that estimates in high-performance energy use across U.S. commercial building infrastructure. The Roundtable regularly equipment for commercial encourages coordination between the EPA and multifamily buildings. and EIA to ensure that the data each agency 7KH5RXQGWDEOH(QFRXUDJHV3ROLF\WKDW separately collects are of the highest quality. ,QFHQWLYL]HV,QYHVWPHQWVLQ+LJK3HUIRUPDQFH To ensure data integrity and consistency, The (TXLSPHQW(FRQRPLF*URZWK(QHUJ\ Roundtable has been a strong advocate for Independence, and Reduced Carbon Emissions Section 103 of the ESIC Act, which calls for an explicit data-sharing agreement between The Roundtable continues to work closely the two agencies. The Roundtable advocates with leaders in the private and public sectors for high quality CBECS data on building-level to establish an accelerated depreciation energy statistics as well as the creation of an VFKHGXOHIRUDQHZFDWHJRU\RI(QHUJ\(İFLHQW analog dataset on commercial tenant-level 4XDOLĬHG,PSURYHPHQW3URSHUW\LQVWDOOHGLQ energy used in leased spaces within buildings.

20 2020 ANNUAL REPORT buildings (E-QUIP). The Roundtable supports other energy infrastructure a uniform E-QUIP 10-year recovery period to encourage high-performance upgrades in assets. commercial and multifamily buildings. E-QUIP The Roundtable Supports and Encourages Public- ZRXOGFRYHUWKHPDLQV\VWHPVWKDWDıHFWD 3ULYDWH3DUWQHUVKLSVWR,PSURYHWKH6DIHW\DQG building’s energy consumption, such as heating 5HVLOLHQFHRIWKH1DWLRQŔV(QHUJ\,QIUDVWUXFWXUH DQGFRROLQJOLJKWVDQGWKHZLQGRZDQGURRĬQJ “envelope.” Eligible E-QUIP components would The Transportation Infrastructure Finance surpass minimum code requirements to achieve Innovation Act (TIFIA) encourages private more ambitious and aggressive levels of capital investments in surface transportation HQHUJ\HİFLHQF\ SURMHFWV$VLPLODUSURJUDPVKRXOGKHOSĬQDQFH improvements to safety and resiliency in our Over the past year, The Roundtable helped drive nation’s energy infrastructure. Policies that a major research project to estimate the energy encourage public-private partnerships (P3s) savings, carbon reduction, and job creation leverage capital, improve budget certainty and EHQHĬWVVKRXOGWKHIHGHUDOWD[FRGHLQFOXGHDQ predictability, accelerate project delivery, and E-QUIP accelerated depreciation provision—with FUHDWHHİFLHQFLHVDQGLQQRYDWLRQVLQSURMHFW an eye to use this research to support eventual design and construction. bill introduction. The Roundtable supports a TIFIA-type pilot Fostering public-private SURJUDPWRHQFRXUDJH3ĬQDQFLQJIRUHQHUJ\ infrastructure. In order to successfully overhaul SDUWQHUVKLSVWRĬQDQFH our country’s existing energy infrastructure safety and resiliency successfully, Congress must bring together improvements to the government agencies, power commissions, utilities, real estate and other stakeholders electricity grid, the natural to explore co-investment in a cleaner, more gas pipeline network, and reliable, and more resilient electric grid.

Electric Power Markets Source: Federal Energy Regulatory Commission Infrastructure & Housing

Infrastructure • Permit system reforms. • Streamlining and expanding the TIFIA loan The Roundtable’s advocacy in Washington program to encourage appropriate public- continually emphasizes how essential a healthy private partnerships. and thriving real estate market is to public and private investments in roads, bridges, transit, • Prioritization of proceeds from the Highway Trust Fund with a “Fix it First” telecommunications, power delivery, and other strategy. infrastructure systems that our communities need to function and thrive—before, during, and • Increased support for sustainable mass after a national crisis like the current pandemic. transit and innovative projects of regional Our national recovery will depend on stable DQGQDWLRQDOVLJQLĬFDQFH national infrastructure. • A sensible plan to make our energy infrastructure safe, reliable, and resilient. The Roundtable Regularly • Parameters to capture the value of the Engages with Congress and the “transit premium” on real estate located Administration to Encourage QHDUPDVVWUDQVLWWRKHOSĬQDQFHQHDUE\ Investment to Repair and Modernize infrastructure. American Infrastructure The Roundtable urges a holistic approach to The Roundtable has engaged Members of infrastructure modernization, which will create &RQJUHVVDQGNH\$GPLQLVWUDWLRQRİFLDOVLQ American jobs, boost economic growth, address support of the critical infrastructure policies climate threats, and respond to demands that including the following: UHĭHFWRXUQDWLRQŔVFKDQJLQJGHPRJUDSKLF patterns.

Sources of Highways and Roads Federal Expenditures $47B Billions of Dollars by Level of Government, Fiscal Year 2017

Source: Urban Institute, State & Local Government State/Local Finance Data Query System $135B

22 2020 ANNUAL REPORT 6HFUHWDU\RIWKH86'HSDUWPHQWRI+RXVLQJDQG8UEDQ'HYHORSPHQW +8' 'U%HQMDPLQ6&DUVRQ650'EULHIV 7KH5RXQGWDEOHRQWKH$GPLQLVWUDWLRQŔVHıRUWVWRUHVKDSHWKHUROHRIWKH*RYHUQPHQW6SRQVRUHG(QWHUSULVHV *6(V E\ FDSLWDOL]LQJ)DQQLH0DHDQG)UHGGLH0DFEHIRUHHQGLQJWKHLUJRYHUQPHQWFRQVHUYDWRUVKLS

Reauthorization of the Highway for projects of national and regional Trust Fund VLJQLĬFDQFH The Roundtable has urged Congress to • enhanced opportunities for appropriate private investment in U.S. infrastructure; reauthorize the Highway Trust Fund as a top and infrastructure policy priority this year. The Fund is the nation’s main source of spending • FUHDWLRQRIHİFLHQWV\VWHPVIRUWKH for roads and mass transit and will expire in federal permitting process—with the purpose of promoting key environmental September 2020. The Roundtable joined 150 protections. national trade associations in the “Infrastructure Working Group” to call for: The Roundtable continues to advocate for policy • an increase in federal investments for WKDWZLOOĬQDQFHDVWDEOHQDWLRQDOLQIUDVWUXFWXUH infrastructure; network. The Roundtable strongly recommends • a sustainable solution to the recurring the repeal of the Foreign Investment in Real challenges and shortages in the Fund, Property Tax Act (FIRPTA), which imposes a such as through a reasonable increase discriminatory layer of capital gains tax on in the federal gas “user fee” and foreign real investment—a tax burden that does consideration of a vehicle miles travelled not apply to any other asset class. Repealing fee; ),537$ZRXOGFDWDO\]HPDUNHWGULYHQĬQDQFLQJ • allocation of federal, state and local cost and improvement in our nation’s infrastructure. share arrangements to secure funding

The Real Estate Roundtable 23 The federal government guaranteed $5 trillion in Fannie Mae and Freddie Mac mortgage-backed securities in 2017

Fannie Mae Freddie Mac 5

4 s n 3 illio n tr i

s r 2 Dolla

1

0

Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: GAO analysis of Federal Housing Finance Agency Data

Housing Request for Information seeking public feedback on laws, regulations, land use The Roundtable supports policies that will help requirements and administrative practices EULQJVDIHGHFHQWDQGDıRUGDEOHKRXVLQJPRUH SRVLQJEDUULHUVWRKRXVLQJDıRUGDELOLW\DQG within reach of households across income availability. The Roundtable encouraged HUD to levels—from families in extreme need to the amplify programs to secure safe, decent, and WHDFKHUVĬUVWUHVSRQGHUVDQGRWKHUFULWLFDO DıRUGDEOHKRXVLQJWR$PHULFDQVLQQHHG:H contributors to the U.S. workforce. Last year, also recommended that policy makers focus on The Roundtable engaged the Senate Committee the scarcity of homes accessible to middle-class RQ%DQNLQJ+RXVLQJDQG8UEDQ$ıDLUVDQGWKH families, and recommended policies to increase House Financial Services Committee, outlining both purchase and rental workforce housing the need for Congressional guidance on options. The Roundtable also challenges the KRXVLQJĬQDQFHUHIRUPZKLOHDOVRFDOOLQJIRUD HİFDF\RIUHQWFRQWURODVDORQJWHUPVROXWLRQ ELSDUWLVDQHıRUWWRHQGFRQVHUYDWRUVKLSRIWKH WRKRXVLQJDıRUGDELOLW\7KH5RXQGWDEOHŔVNH\ GSEs. policy recommendations include the following:

This year, The Roundtable submitted detailed • Reform the Community Reinvestment comments to the Department of Housing and Act (CRA), so banks can receive “credit” Urban Development in response to HUD’s when they serve lending needs and increase housing supply in middle class

24 2020 ANNUAL REPORT neighborhoods (80-120 percent of Area Early this year the Roundtable joined a coalition Median Income). in support of the “Yes in My Backyard” (YIMBY) • Promote a “Yes in My Backyard”—or Act. The YIMBY Act encourages communities to “YIMBY”—environment whereby states eliminate discriminatory land-use policies and and cities are encouraged by the “carrot” remove barriers that prevent the production of of federal grants to oblige localities to housing needed in communities throughout the implement land-use laws permitting the United States. high-density zoning designations needed WRHQWLWOHDıRUGDEOHKRXVLQJDQGWUDQVLW The Roundtable supports the “Build More oriented projects. Housing Near Transit Act,” to prioritize a • Promote manufactured housing commitment to changing local land use policies production as a high quality, less costly in project station areas to accommodate alternative to site-built homes. DıRUGDEOHDQGPDUNHWUDWHKRXVLQJ • Push the General Services Administration development. to dispose of excess and under-utilized federal properties and re-purpose them to The Roundtable continues to work with a diverse LQFUHDVHDıRUGDEOHKRXVLQJVXSSOLHV group of stakeholders to elevate housing reform • Expand the Low-Income Housing Tax and enhance market opportunities to spur Credit (LIHTC) program, and create a economic growth. similar tax incentive focused on housing development for America’s middle class. • Use GSE reform to re-focus the mission of Fannie Mae and Freddie Mac on liquidity in the mortgage markets for low- and middle-income home buyers, while also encouraging GSE interventions to enhance to access middle-class rental housing.

6HQ7LP6FRWW 56& ZKR VHUYHVRQWKH6HQDWH%DQNLQJ +RXVLQJDQG8UEDQ$ıDLUVDQG )LQDQFH&RPPLWWHHVGLVFXVVHV the ongoing development RIWKH2SSRUWXQLW\=RQHV program, designed to channel investment and spur economic GHYHORSPHQWDQGDıRUGDEOH housing in distressed areas across the U.S.

25 Homeland Security

As a critical part of the nation’s infrastructure, and safety of the general public as efforts to real estate continues to face an array of threats navigate the crisis continue. not only from global public health events like COVID-19, but also civil unrest, increasingly Building Re-Entry Working frequent natural disasters, international and domestic terrorism, criminal activity, cyber- Group attacks and weakened border security. To As many jurisdictions begin the process address such threats, Roundtable members of restarting the economy, our Building play a vital role in developing and implementing Re-Entry Working Group is working with our strategies and tactics to make the commercial industry partners, building owners, managers facilities sector more secure and resilient. and security staff to develop a strategy Strengthening the security and resilience of for building re-entry and address legal the commercial facilities sector is an important liability issues. With the Federal Emergency aspect of managing any facility where people Management Agency (FEMA), the Centers for live, work, shop, and play. Disease Control and Prevention (CDC) and the Environmental Protection Agency (EPA), we are As the pandemic continues and eventually working to develop health-related standards subsides, The Roundtable remains in contact and essential measures to safely enable tenants with senior policymakers in all branches of and customers to safely re-enter commercial government to ensure proper guidance on properties. the creation of parameters around the health

Distribution 25 of Security Industry percentage of reported breaches Breaches Industry percentage of 2016 GDP 20 by Industry (Percentage of 2016 GDP and 15 Breaches) Source: Executive Office of the 10 President of the United States 5

0

Public Retail Trade Mining Finance Utilities Education Real Estate Healthcare Information Agriculture Professional Construction Management Manufacturing TransportationAdministrativeOther Services Entertainment Accommodations

26 2020 ANNUAL REPORT The Real Estate current and future security-related challenges by analyzing threats, sharing information, and Information Sharing and fostering resilience through a broad threat Analysis Center (RE-ISAC) matrix of physical, health and cyber risks. The Roundtable’s Real Estate Information The HSTF meets regularly and coordinates Sharing and Analysis Center (RE-ISAC) is EULHĬQJVZLWKWKH2İFHRIWKH'LUHFWRURI a public-private partnership between the National Intelligence (ODNI), the Federal U.S. commercial facilities sector and federal Bureau of Investigation (FBI), the Department of Homeland Security (DHS), and other agencies KRPHODQGVHFXULW\RİFLDOVĬUVWRUJDQL]HG by the Roundtable in 2003. Systematic and to discuss potential threats to the sector and to sustained information sharing continues enhance risk mitigation. WREHRQHRIWKHPRVWHıHFWLYHZHDSRQVLQ protecting the nation’s critical infrastructure. The Roundtable’s Homeland Security Task The RE-ISAC serves as the primary conduit Force and Real Estate Information Sharing of terrorism, cyber, pandemic and natural and Analysis Center remain focused on hazard warning and response information measures that businesses can take during between the government and the commercial the pandemic crisis and the recovery that will facilities sector. The RE-ISAC proactively strengthen infrastructure so that it is resistant manages risk and strengthens the security and to physical damage and cyber breaches, and resilience of the US commercial facilities sector increase cross-agency information sharing infrastructure to aid protection and prevention. and cooperation with key law enforcement and intelligence agencies. Homeland Security Task Force (HSTF) The Roundtable’s Homeland Security Task Force (HSTF) continues to focus on enhancing the commercial facilities sector’s ability to meet its

6HQ-DFN\5RVHQ '19  SOD\VDNH\UROHLQQDWLRQDO SROLF\PDNLQJDVDPHPEHU of the Senate Homeland 6HFXULW\DQG*RYHUQPHQWDO $ıDLUV&RPPHUFH6FLHQFH DQG7UDQVSRUWDWLRQ 6PDOO%XVLQHVVDQG (QWUHSUHQHXUVKLS+HDOWK Education, Labor and Pensions (HELP) Committees.

27 Roundtable Members Board Members*

David Adelman Charles R. Brindell, Jr. Stephen J. Congel CEO Executive Chairman &KLHI([HFXWLYH2İFHU Campus Apartments Mill Creek Residential Trust LLC The Pyramid Companies

Robert A. Alter Angel Brunner James B. Connor CEO CEO, Founder &KDLUPDQDQG&KLHI([HFXWLYH2İFHU Seaview Investors, LLC EB5 Capital Duke Realty Corporation

Dr. Thomas R. Arnold* Reisa Bryan Terry Considine Global Head of Real Estate Managing Director, Global COO &KDLUPDQDQG&KLHI([HFXWLYH2İFHU Abu Dhabi Investment Authority Nuveen Real Estate AIMCO

Peter E. Baccile Marty Burger Edward C. Coppola 3UHVLGHQWDQG&KLHI([HFXWLYH2İFHU &KLHI([HFXWLYH2İFHU President First Industrial Realty Silverstein Properties Macerich

*HRı%DOORWWL Sean Burton Michael A. Covarrubias President & CEO &KDLUPDQDQG&KLHI([HFXWLYH2İFHU &KDLUPDQDQG&KLHI([HFXWLYH2İFHU Wyndham Hotels & Resorts Cityview TMG Partners Chairman, American Hotel & Lodging Association Benjamin S. Butcher Frank G. Creamer, Jr. &KLHI([HFXWLYH2İFHU3UHVLGHQW Managing Director Thomas J. Baltimore, Jr. and Chairman of the Board FGC Advisors, LLC Chairman, President & CEO STAG Industrial, Inc. Park Hotels & Resorts John C. Cushman, III Tim Byrne* Chairman, Global Transactions Albert P. Behler 3UHVLGHQWDQG&KLHI([HFXWLYH2İFHU &XVKPDQ :DNHĬHOG,QF Chairman, CEO & President Lincoln Property Company Paramount Group, Inc. Secretary, The Real Estate Edward Czuker Roundtable Chairman & CEO Ted Bigman Legado Head of Listed Real Assets Debra A. Cafaro* Morgan Stanley Investment Chairman & CEO Steven DeFrancis Management Ventas, Inc. &KLHI([HFXWLYH2İFHU Chair, The Real Estate Roundtable Cortland Eddie D. Blanton Senior Principal/Advisor Martin J. Cicco Christoph Donner Tradd Commercial Real Estate Senior Managing Director & Head of &KLHI([HFXWLYH2İFHU President, CCIM Institute Real Estate Advisory Allianz Real Estate of America Evercore Partners -Hı7%ODX  Robert Duncan CEO -HıUH\%&LWULQ Chairman Related Companies Vice Chairman/Senior Advisor Transwestern Square Mile Capital Management Neil G. Bluhm LLC Dan A. Emmett Managing Principal Executive Chairman of the Board Walton Street Capital Richard B. Clark* Douglas Emmett, Inc. Chairman %URRNĬHOG3URSHUW\*URXS

28 2020 ANNUAL REPORT Todd Everett Susan Givens Lonny Henry &KLHI([HFXWLYH2İFHU 3UHVLGHQW &KLHI([HFXWLYH2İFHU Global Chairman of Investment Principal Real Estate Investors New Senior Investment Group Banking J.P. Morgan Peter Falco Alexandra S. Glickman Senior Strategic Advisor, Partner Area Vice Chairman, Senior Denis Hickey Emeritus Managing Director - Global Practice CEO Rockwood Capital, LLC Leader, Real Estate & Hospitality Lendlease Americas Inc. Practice Kathleen Sullivan Farrell Arthur J. Gallagher & Co. James Hime Executive Vice President, CRE &KLHI2SHUDWLQJ2İFHU Truist Michael P. Glimcher USAA Real Estate &KLHI([HFXWLYH2İFHU John F. Fish* Starwood Retail Partners Leslie W. Himmel Chairman & CEO Managing Partner SUFFOLK Christine Gorham* +LPPHO0HULQJRı3URSHUWLHV//& Director of Development Kenneth Fisher Caddis Healthcare Real Estate Elizabeth I. Holland Co-Managing Partner 2020 President, CREW Network CEO/General Counsel Fisher Brothers Abbell Associates Michael J. Graziano Thomas M. Flexner* Managing Director Gary Holmes Vice Chairman and Global Head of Goldman, Sachs & Co. CEO and President Real Estate CSM Corporation Citigroup Thomas A. Grier Treasurer, The Real Estate Managing Director Mike Holmes Roundtable J.P. Morgan Securities LLC President Easland Management Conor Flynn Steven Grimes Chairman, National Apartment &KLHI([HFXWLYH2İFHU CEO Association Kimco Realty Corporation Retail Properties of America, Inc. -HıUH\+RURZLW] Jason Fox Greta Guggenheim Managing Director and Global Head CEO CEO of Real Estate, Gaming & Lodging W.P. Carey Inc. TPG Real Estate Finance Trust Investment Banking Bank of America Merrill Lynch Adam Gallistel John S. Hagestad Managing Director Senior Managing Director Jackson Hsieh GIC Real Estate SARES/REGIS Group &KLHI([HFXWLYH2İFHUDQG3UHVLGHQW Spirit Realty Capital, Inc. Christopher M. George Leslie D. Hale Founder, President & CEO President and CEO Daniel B. Hurwitz CMG Financial RLJ Lodging Trust Founder and CEO Chairman, Mortgage Bankers Raider Hill Advisors Association Steven Hason Chair, International Council of Managing Director, Head of Real Shopping Centers Gregg Gerken Assets, Americas Head of U.S. Commercial Real Estate APG Asset Management US Inc. Thomas J. Hutchison, III TD Bank CEO -HıHU\5+D\ZDUG Hutchison Advisors, Inc. Richard I. Gilchrist Executive Vice President and Head of Senior Advisor Multifamily William S. Janes Irvine Company Fannie Mae Managing Partner Iron Point Partners, LLC

The Real Estate Roundtable 29 Geordy Johnson John Kilroy Paul H. Layne CEO Chairman of the Board & Chief &KLHI([HFXWLYH2İFHU Johnson Development Associates, ([HFXWLYH2İFHU The Howard Hughes Corporation Inc. Kilroy Realty Corporation Chuck Lee Sheila C. Johnson Alex Klatskin Head of CRE Securitization and Founder and CEO General Partner Warehouse Finance Salamander Hotels & Resorts Forsgate Industrial Partners Credit Suisse Securities (USA) LLC Chairman, Commercial Real Estate Scott O. Jones* James D. Kuhn Finance Council Vice President President Jacobs Newmark Knight Frank Harrison T. LeFrak, Esq. &KDLUDQG&KLHI(OHFWHG2İFHU Vice Chairman Building Owners and Managers John Z. Kukral LeFrak Association, International CEO/President Northwood Investors Michael Levy Chaim Katzman &KLHI([HFXWLYH2İFHU Chairman of the Board 0LNH/DĬWWH Crow Holdings Gazit Group USA Inc. Global CEO, Real Estate Investments CBRE David Lichtenstein Alan Kava Chairman Managing Director Benjamin V. Lambert Lightstone Goldman Sachs Chairman Eastdil Secured Douglas T. Linde W. Matthew Kelly NRC Chair Emeritus President &KLHI([HFXWLYH2İFHU Boston Properties JBG SMITH Larry A. Lance Executive Vice President - Dennis Lopez Richard A. Kessler Development and Asset Services &KLHI([HFXWLYH2İFHU &KLHI2SHUDWLQJ2İFHU EverWest Real Estate Investors QuadReal Property Group Benenson Capital Partners, LLC Chairman, NAIOP, the Commercial Real Estate Development Association

30 2020 ANNUAL REPORT Michael H. Lowe Bryan McDonnell Shawn F. Mobley Co-CEO Managing Director &KLHI([HFXWLYH2İFHU$PHULFDV Lowe PGIM Real Estate &XVKPDQ :DNHĬHOG

Robert J. Lowe Michael R. McElroy Daniel J. Moore Chairman &KLHI,QYHVWPHQW2İFHU 3UHVLGHQWDQG&KLHI([HFXWLYH2İFHU Lowe Ryan Companies US, Inc. Rockefeller Group International, Inc. Chairman Emeritus, The Real Estate Roundtable G. Christopher McGibbon Thomas F. Moran Managing Director, Head of Americas Co-Chairman Peter Lowy TIAA Moran & Company Principal LFG Ken McIntyre Mark Myers David Lukes &KLHI([HFXWLYH2İFHU Retired Executive Vice President, 3UHVLGHQW &KLHI([HFXWLYH2İFHU Real Estate Executive Council Group Head Commercial Real Estate SITE Centers Corp. Wells Fargo Jodie W. McLean* Matthew J. Lustig &KLHI([HFXWLYH2İFHU Hessam Nadji Chairman of Investment Banking, EDENS 3UHVLGHQWDQG&KLHI([HFXWLYH2İFHU N.America; Head of Real Estate & Marcus & Millichap Real Estate Lodging William J. McMorrow Investment Services Lazard Chairman and CEO Kennedy Wilson Christopher J. Nassetta Elie Maalouf President & CEO &KLHI([HFXWLYH2İFHU$PHULFDV Michael J. McNamara Hilton Worldwide InterContinental Hotels Group Global Head of Real Estate Chairman Emeritus, The Real Estate Investments Roundtable Benjamin S. Macfarland, III John Hancock/Manulife &KLHI([HFXWLYH2İFHU Timothy J. Naughton SROA Capital Kara McShane &KDLUPDQ&KLHI([HFXWLYH2İFHU Head of Commercial Real Estate and President Anthony E. Malkin* Wells Fargo AvalonBay Communities, Inc. Chairman and CEO Empire State Realty Trust, Inc. Robert R. Merck* Lee S. Neibart Senior Managing Director / Global CEO Roy Hilton March* Head of Real Estate HBS Global Properties &KLHI([HFXWLYH2İFHU MetLife Investment Management Eastdil Secured Daniel M. Neidich Guy A. Metcalfe &KLHI([HFXWLYH2İFHU Joel S. Marcus Managing Director & Global Dune Real Estate Partners LP Executive Chairman & Founder Chairman, Real Estate Chairman Emeritus, The Real Estate Alexandria Real Estate Equities, Inc. Morgan Stanley & Co., LLC Roundtable

Seth Martin James H. Miller Bob Nicolls President 3UHVLGHQWDQG&KLHI([HFXWLYH2İFHU CEO & Owner Pritzker Realty Group, LLC Miller Global Properties Monarch Investment & Management Group Kathleen McCarthy* E. Nelson Mills Global Co-Head of Blackstone Real President, CEO and Director Leeny Oberg Estate Columbia Property Trust Executive Vice President & Chief Blackstone )LQDQFLDO2İFHU Howard P. Milstein Marriott International Chairman of the Board Emigrant Bank/Milstein Properties

The Real Estate Roundtable 31 Jonathan J. Ofer George Rizk Fred A. Seigel CEO Partner and Co-Head of Private 3UHVLGHQW &KLHI2SHUDWLQJ2İFHU Global Holdings Management (US) Investments Beacon Capital Partners, LLC The Baupost Group Charlie Oppler* John Sevo COO Anthony Rokovich Managing Director Prominent Properties Sotheby’s Managing Director Spectrum Retirement Communities, International Realty Moelis & Company LLC 2020 President-Elect, National Association of Realtors® Amy Rose* Glenn A. Shannon 3UHVLGHQW&KLHI([HFXWLYH2İFHU Vice Chairman Steven E. Orbuch Rose Associates, Inc. Shorenstein Properties LLC Founder and President Sculptor Real Estate Ralph Rosenberg Avraham Shemesh Partner, Global Head of Real Estate Principal and Founder Coburn Packard KKR CIM Group Partner Chair, Pension Real Estate MSD Partners, L.P. Association Kevin A. Shields &KDLUPDQDQG&KLHI([HFXWLYH2İFHU Mark J. Parrell Edward P. Roski, Jr. *ULİQ&DSLWDO&RPSDQ\//& 3UHVLGHQW &KLHI([HFXWLYH2İFHU President & Chairman of the Board Equity Residential Majestic Realty Co. Barry Sholem Partner Ross Perot, Jr.* Steven Roth MSD Partners, L.P. Chairman Chairman & CEO Hillwood Vornado Realty Trust Brandon Shorenstein &KDLUPDQDQG&KLHI([HFXWLYH2İFHU Amy Price Stuart Rothstein Shorenstein Properties Managing Partner, Co-Head of US 3DUWQHU &KLHI2SHUDWLQJ2İFHU BentallGreenOak Principal Finance & Real Estate David Simon Chair, National Association of Real Apollo Global Management &KDLUPDQ &KLHI([HFXWLYH2İFHU Estate Investment Managers Simon Property Group Randall K. Rowe Scott Rechler Chairman Gordon Smith Chairman & CEO Green Courte Partners, LLC &KLHI([HFXWLYH2İFHU RXR Realty Chairman Emeritus, The Real Estate Biproxi Roundtable Eugene F. Reilly Rob Speyer* &KLHI,QYHVWPHQW2İFHU William C. Rudin* President and CEO Prologis Co-Chairman and CEO Tishman Speyer Rudin Management Company, Inc. Eric C. Resnick Immediate Past Chair, The Real Robert A. Spottswood* &KLHI([HFXWLYH2İFHU Estate Roundtable Chairman & CEO KSL Capital Partners Spottswood Companies, Inc. Sheridan Schechner Chairman of the Board, American Nelson C. Rising Managing Director Resort Development Association Chairman & CEO Barclays Rising Realty Partners Martin E. Stein, Jr. Chairman Emeritus, The Real Estate David Schwartz Executive Chairman Roundtable CEO Regency Centers Waterton James (Jim) F. Risoleo Chair, National Multifamily Housing 3UHVLGHQWDQG&KLHI([HFXWLYH2İFHU Council Host Hotels & Resorts, Inc.

32 2020 ANNUAL REPORT A. William Stein Owen D. Thomas* Earl E. Webb Chief Executive Officer Chief Executive Officer President, U.S. Operations Digital Realty Trust Boston Properties Avison Young Chair, Nariet Gary M. Tischler Skip Wells Barry Sternlicht* Founder & Managing Partner Co-Head of Real Estate Chairman & CEO Vanbarton Group LLC State Street Global Advisors Starwood Capital Group Jaap L. Tonckens Gilbert Winn James Stewart Group Chief Financial Officer Chief Executive Officer CEO Unibail-Rodamco-Westfield WinnCompanies MGM Growth Properties Thomas W. Toomey Donald Wise Robert G. Stuckey Chairman and CEO Chief Executive Officer Managing Director UDR Metzler Real Estate The Carlyle Group Chairman of the Board, Association Rudy Prio Touzet of Foreign Investors in Real Estate Jay Sugarman Founder and Chief Executive Officer Chairman and CEO Banyan Street Capital Steven C. Witkoff iStar Inc. Chairman & CEO Anne Walker The Witkoff Group Gerard H. (Jerry) Sweeney Global Real Estate and Strategic President and CEO Initiatives Executive Richard S. Ziman Brandywine Realty Trust Bank of America Chairman Rexford Industrial Realty, Inc. Robert S. Taubman Willy Walker Chairman, President & CEO Chairman & CEO Taubman Centers, Inc. Walker & Dunlop Chairman Emeritus, The Real Estate Roundtable

The Real Estate Roundtable 33 President’s Council Members

CJ Aberin Byron Carlock William J. Ferguson Principal National Partner, US Real Estate Co-Chairman and CEO KBKG Leader FPL Associates PricewaterhouseCoopers LLP Frederick Allen Gregory Fine Founder Emeritus Oliver Carr CEO Allen, Matkins, Leck, Gamble, Mallory &KLHI([HFXWLYH2İFHU CCIM Institute & Natsis, LLP Carr Properties Andy Florance -HıUH\$OSDXJK Lynn Cherney &KLHI([HFXWLYH2İFHUDQG)RXQGHU Global Real Estate Practice Leader Global Real Estate Practice CoStar Group, Inc. Marsh & McLennan Spencer Stuart David V. Fowler Riprand Count Arco Mukang Cho Managing Director - Division Head - Founder & Chairman CEO and Managing Principal RE & Mortgage Banking Division American Asset Corporation Morning Calm Management BNY Mellon

Gary Barnett John Cibinic Ronald S. Gart Founder and Chairman Partner Partner Extell Development Beekman Advisors, Inc. Seyfarth Shaw LLP

Scott Bassin Toby Cobb Julio Gonzalez EVP & Co-Head Managing Partner CEO PNC Real Estate 3650 REIT Engineered Tax Services

Phil Belling Peter D’Arcy John S. Grassi Managing Principal Senior VP, Area Executive / Head of &KLHI([HFXWLYH2İFHU LBA Realty Commercial Real Estate Spear Street Capital M&T Bank Stuart Boesky 7KRPDV(*ULİQ &KLHI([HFXWLYH2İFHU Joseph A. DeLuca President, National Investor Pembrook Capital Management Principal Accounts Joseph A. DeLuca, Inc. JLL Gil Borok 3UHVLGHQWDQG&KLHI([HFXWLYH2İFHU Annemarie DiCola Mark Grinis Colliers International CEO Partner, Global Real Estate, Trepp LLC Hospitality & Construction Leader J. Murry Bowden Ernst & Young LLP Founder and Executive Chairman Douglas Durst Hanover Company Chairman Emile Haddad The Durst Organization Chairman and CEO David Brainerd Fivepoint Holdings Principal Albert J. Dwoskin Madison Marquette President and CEO Melissa Hall A.J. Dwoskin & Associates Senior Vice President Matthew M. Bronfman Fidelity National Financial &KLHI([HFXWLYH2İFHU Jay Epstien Jamestown Properties DLA Piper US LLP

34 2020 ANNUAL REPORT Charles B. Harrison Mark Kroll Thomas E.D. (Ted) Millspaugh President Managing Director, Co-Founder Partner, Chair - Real Estate REIT Funding, LLC SARES REGIS Group of Northern Venable LLP California, LLC Christopher D. Hughes (GZDUG-0LQVNRı Senior Managing Director, CEO Mira Leonard President Capital Markets & East Region Head of Client and Business (GZDUG-0LQVNRı(TXLWLHV,QF Hines Development Alvarez & Marsal Taxand, LLC -D\$1HYHORı Stanley L. Iezman Partner, Real Estate Chair &KDLUPDQ &KLHI([HFXWLYH2İFHU Richard M. Lipton Kramer Levin Naftalis & Frankel LP American Realty Advisors Partner Baker & McKenzie LLP Robert T. O’Brien Mark F. Irgens Partner and Global Real Estate CEO/Manager Anthony J. LoPinto Leader Irgens Partners, LLC Global Sector Leader, Real Estate; Deloitte LLP Managing Partner, New York Robert J. Ivanhoe 5HJLRQDO2İFH William O’Connor Vice Chairman Korn Ferry CEO Greenberg Traurig, LLP O’Connor Capital Partners Bruce W. MacEwen Richard D. Jones Vice President and Senior Advisor Mark S. Opper Real Estate and Finance Group Portman Financial, LLC Partner Dechert LLP Goodwin Procter LLP Harry Macklowe Michael Katz Chairman Robin Panovka Senior Partner Macklowe Properties Partner, Chairman of Real Estate Sterling Equities Wachtell Lipton Rosen & Katz Gary Magnuson Edmond A. Kavounas Executive Vice President - Head of Christopher L. Pennington Managing Partner Commercial Real Estate Partner East Beach Capital Citizens Bank Proskauer Rose LLP

-HıUH\5.HLWHOPDQ Catherine Marcus Robert J. Persico Co-Managing Partner *OREDO&KLHI2SHUDWLQJ2İFHUDQG Managing Director Stroock Head of US Equity MUFG Union Bank PGIM Real Estate Yan Khamish William M. Petak Co-Founder Jonathan Mechanic 3UHVLGHQWDQG&KLHI([HFXWLYH2İFHU biproxi Chairman of Real Estate Department Nassau CorAmerica LLC Fried, Frank, Harris, Shriver & -RVHSK.RUı Jacobson Stephen D. Plavin President and Founder CEO The Arc Companies Nancy L. Mehlman Blackstone Mortgage Trust, Inc. Partner -HıUH\3.UDVQRı Simpson Thacher & Bartlett LLP David Polster &KLHI([HFXWLYH2İFHU Partner, Tax Rialto Capital Management LLC Alexander R. Mehran Skadden, Arps, Slate, Meagher & Chairman of the Board Flom LLP Heather Kreager Sunset Development Company &KLHI([HFXWLYH2İFHU Ameek Ashok Ponda Sammons Enterprises, Inc. Roland S. Merchant, Jr. Partner Senior Managing Director Sullivan & Worcester LLP Jones Lang LaSalle Americas, Inc.

The Real Estate Roundtable 35 Thomas Regnell Craig H. Solomon Christopher J. Vallace President & CEO &KLHI([HFXWLYH2İFHU Principal The Chevy Chase Land Company Square Mile Capital Management, M3 Capital Partners LLC LLC Jonathan Resnick William H. Walton President Donald B. Susswein Managing Member Jack Resnick & Sons, Inc. Principal Rockpoint RSM US LLP David Rothenberg -RKQ(:HVWHUĬHOG President Steve Szymanski &KLHI([HFXWLYH2İFHU Tishman Realty Corporation Senior Vice President, Tax Mitsui Fudosan America, Inc. American Tower Corporation Sheslie Royster James Whelan Partner Robert K. Tanenbaum President CohnReznick Principal Real Estate Board of New York Lerner Enterprises Rex E. Rudy Gregory L. Williams Executive Vice President and Head of John A. Taylor National Sector Leader / Building, Commercial Real Estate Global Head of Commercial Real Construction & Real Estate US Bank Commercial Real Estate Estate KPMG Pine River Capital Management L.P. Mitchell Sabshon J. Gregory Winchester &KLHI([HFXWLYH2İFHU 3UHVLGHQW Joe B. Thornton, Jr. CEO & Founder Inland Real Estate Investment President, Americas Summit Investors, LLC Corporation JLL Capital Markets David L. Winstead Eric Schake Daniel R. Tishman Attorney at Law Executive Vice President Principal & Vice Chairman Ballard Spahr LLP Willis Towers Watson Tishman Realty Corporation Kimball Wood Adam Schwartz Christopher Tognola Partner &R&KLHI,QYHVWPHQW2İFHU+HDGRI Managing Director, Head of Real Crown Advisors Real Estate Estate Banking Angelo Gordon Brean Capital, LLC

Paul Scialla Stephen G. Tomlinson Founder and CEO Partner Delos Living LLC Kirkland & Ellis LLP

Jay H. Shah Vik Uppal &KLHI([HFXWLYH2İFHU &KLHI([HFXWLYH2İFHU Hersha Hospitality Trust Terra Capital Partners

36 2020 ANNUAL REPORT Board of Directors

Chair Richard B. Clark Debra A. Cafaro Chairman Chairman and CEO Brookfield Property Group Ventas, Inc.

John F. Fish President and CEO Jeffrey D. DeBoer Chairman & CEO SUFFOLK

Treasurer Christine Gorham Thomas M. Flexner Director of Development Vice Chairman and Global Caddis Healthcare Real Head of Real Estate Estate Citigroup 2020 President, CREW Network

Scott O. Jones, P.E. Secretary Vice President Tim Byrne Jacobs President and CEO Chair and Chief Elected Officer Lincoln Property Company Building Owners & Managers Association, International

Dr. Thomas R. Arnold Anthony E. Malkin Global Head of Real Estate Chairman and CEO Abu Dhabi Investment Empire State Realty Trust, Authority Inc.

Jeff T. Blau Roy Hilton March CEO Chief Executive Officer Related Companies Eastdil Secured

The Real Estate Roundtable 37 William C. Rudin Kathleen McCarthy Co-Chairman and CEO Global Co-Head of Rudin Management Blackstone Real Estate Company, Inc. Blackstone Immediate Past Chair The Real Estate Roundtable

Jodie W. McLean Rob Speyer &KLHI([HFXWLYH2İFHU President and CEO EDENS Tishman Speyer

Robert R. Merck Robert A. Spottswood President Senior Managing Director / Spottswood Companies, Inc. Global Head of Real Estate MetLife Investment &KDLUPDQRIWKH%RDUG American Resort Management Development Association

Charlie Oppler COO Prominent Properties Barry Sternlicht Sotheby’s International Realty Chairman and CEO 2020 President-Elect Starwood Capital Group National Association of Realtors®

Ross Perot, Jr. Owen D. Thomas Chairman &KLHI([HFXWLYH2İFHU Hillwood Boston Properties

Amy Rose President, Chief Executive 2İFHU Rose Associates, Inc.

38 2020 ANNUAL REPORT 6WDı

-HıUH\''H%RHU Scott M. Sherwood Michelle M. Reid 3UHVLGHQW &KLHI([HFXWLYH2İFHU Vice President, Communications Director, Meetings and Membership Services and Executive Assistant Duane J. Desiderio Abigail W. Grenadier Senior Vice President & Counsel Communications Director Nancy G. Pitcher Director of Administration Ryan P. McCormick Elizabeth A. Hoopes Senior Vice President & Counsel Director, Information Systems

Clifton E. (Chip) Rodgers, Jr. Senior Vice President Committees

HOMELAND SECURITY TASK RESEARCH COMMITTEE TAX POLICY ADVISORY FORCE (HSTF) Co-Chair COMMITTEE (TPAC) Co-Chair Michael Bilerman Chair Dan Kennedy Citi Investment Research Frank G. Creamer, Jr. 8QLEDLO5RGDPFR:HVWĬHOG FGC Advisors, L.L.C. Co-Chair Co-Chair W. Edward Walter Vice Chair Charlie McGonigal Urban Land Institute Kathleen M. Weiden %URRNĬHOG3URSHUWLHV LeFrak

SUSTAINABILITY POLICY REAL ESTATE CAPITAL ADVISORY COMMITTEE REAL ESTATE ROUNDTABLE POLICY ADVISORY (SPAC) POLITICAL ACTION COMMITTEE (RECPAC) Chair COMMITTEE (REALPAC) Co-Chair Anthony E. Malkin Co-Chair Dennis Lopez Empire State Realty Trust Martin J. Cicco QuadReal Property Group Evercore Partners Vice Chair Co-Chair Daniel Egan Co-Chair Mark Myers Vornado Realty Trust Scott Rechler Wells Fargo RXR Realty

Co-Chair Glenn A. Shannon Shorenstein Properties LLC

The Real Estate Roundtable 39 Market Square West 801 Pennsylvania Ave NW Suite 720 Washington DC 20004 t: 202.639.8400 f: 202.639.8442 www.rer.org