To our stakeholders:

I am pleased to confirm that FPA Multifamily reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Enviornment and Anti-Corruption.

In this annual Communication on Progress, we describe our actions to continually improve the integration of the Global Impact and its principles into our business strategy, culture, and daily operations. We also commit to sharing this information with our stakeholders using our primary channels of communication.

Sincerely yours,

Michael B. Earl
CEO

FPA Multifamily is committed to providing safe and healthy living conditions for residents, cultivating a safe and just work environment for team members, and strengthening the communities in which we operate.

In order to ensure that homes are safe and healthy for our residents, we institute neighborhood watch programs to minimize crime and we minimize possible toxin exposure by utilizing low-VOC paints and and non-toxic cleaning and pest treatment services. Additionally, in order to enhance educational opportunity and success for all of our residents, we’re beginning to roll out state-of-the-art study lounges in communal areas across our portfolio. Select properties have partnered with Big Brothers Big Sisters for bi-weekly afternoon tutoring and STEM project sessions on-site.

In order to ensure team members are safe in the workplace, we mandate sexual harassment and safety training with the onboarding of each new team member.

In order to better serve the communities in which we operate, each year, a non-profit partner is selected, and residents are empowered to donate when they submit online rent payments. FPA matches each donation, dollar for dollar. In partnership with community, we’ve raised $71,440 altogether. Additionally, FPA awards team members eight hours of Volunteer Time Off each year to engage in community efforts close to their heart. Team members also regularly participate in Habitat for Humanity build days.

We utilize internal metrics to monitor community impact, employee engagement and satisfaction, and diversity, equity, and inclusion.The ESG Committee monitors the progress of the social metrics and adjusts and develops ESG initiatives correspondingly. We are proud of our record of 15 years without any workplace injuries.

FPA feels strongly that diversity, equity, and inclusion are foundational to success, and our team members are an extension of our renters. It’s important that our team members are as diverse as the communities we manage.

In order to cultivate a safe and just work environment for team members, it's important that all team members receive a living wage and health benefits. To further strengthen FPA’s diversity, equity, and inclusion efforts, we are in the process of developing a new Culture and Employee Engagement team. They will be tasked with setting DEI goals, tracking metrics of progress, illuminating clear career progression and training tracks to set all team members up for growth and success, developing cutting edge hiring and evaluation processes to minimize unconscious bias in hiring and promotions, and more. Additionally, our firm belief in equitable educational opportunity led to the development of scholarship programs for employees and their dependents and training initiatives that compensate team members for taking and excelling in supplemental training courses and trade certifications. The Fowler Family Foundation has invested over $1.0M in its Scholarship and Internship programs. The Fowler Family Scholarship Program is committed to providing educational opportunities, with an emphasis on assisting first generation college students. Scholarships are awarded to qualifying team members and their dependents seeking higher education. The Scholarship Program was recently expanded to include training for skilled trade certifications. Additionally, we actively recruit first-generation scholars for our Real Estate Internship & Future Leadership Programs, which provide hands-on real estate experience that incorporates a diverse array of roles and responsibilities. We are actively involved in curriculum development for Real Estate Management through NMHC and a member of several University Real Estate Programs.

We utilize internal metrics to monitor community impact, employee engagement and satisfaction, and diversity, equity, and inclusion.The ESG Committee monitors the progress of the social metrics and adjusts and develops ESG initiatives correspondingly. Currently, 47% of employees across the company are women and 62% are people of color.

The Firm has adapted an ESG Policy and is committed to annual reporting of ESG initiatives and impact. Rigorous supply chain management, strategic waste management, thoughtful material selection, and stakeholder engagement are paramount to the overall success and efficacy of FPA’s environmental programs. As a ULI Greenprint member, FPA has committed to reduce greenhouse gas emissions by 50% by 2030, in line with the Paris Agreement. We are in the process of collecting resource consumption, waste, and greenhouse gas emission data across the portfolio in order to set additional sustainability targets.

We evaluate new initiatives based upon their return on investment, materiality, alignment with our core company values of trust, teamwork, and leadership, and their ability to move the needle forward for the UN Sustainable Development Goals most closely tied to our global citizenship priorities; Quality Education (SDG #4), Decent Work and Economic Growth (SDG #8), Industry, Innovation, and Infrastructure (SDG #9), and Responsible Consumption and Production (SDG #12). The ESG Committee, spearheaded by our ESG Director and comprised of representatives from our construction team, our Green Team, regional management, marketing and training, and technology divisions, meet monthly to monitor progress and evaluate and implement new initiatives.

Our Green Team implements energy-saving updates, such as LED bulbs, solar screens, motion sensor lighting, and Energy Star appliances, across the entire portfolio. We're also working to to identify deep energy efficiency retrofits and solar energy strategies at select properties that have been determined as having the greatest potential for energy reduction. We’ve installed our first EV charging station and aim to install 5-12 more EV charging stations across our portfolio by the end of 2020 in order to enable more residents to transition to electric vehicles. While we work diligently to decrease our energy consumption and greenhouse gas emissions as much as possible, we are committed to offsetting what we cannot reduce. Through our commitment to 1% for the Planet, we will be donating to the Bonneville Environmental Foundation to balance our environmental footprint through carbon offset and renewable energy certificates. We strive to become certified Climate Neutral in 2020. - Whenever possible, construction material is salvaged and repurposed during the retrofit process. We are constantly searching for new ways to integrate circular economy principles into our construction and maintenance practices. We’ve implemented recycling programs across our portfolio and are beginning to implement on-site composting programs, as well.

We diligently track the impact of our Green Team initiatives and have saved about 696,461,748 gallons of water and 13,589,156 kWh’s to date.
Our ESG Director is currently evaluating sustainability data management platforms that best suit our needs. It will be critical to our benchmarking, reporting, and science-based target-setting efforts to collect data with great accuracy.

At FPA, we believe integrity and honesty are imperative to achieve our strategic goals. We strive to attain high standards of governance, creating an accountable and transparent relationship with investors.

The Firm is a Registered Investment Advisor with SEC. We have an internal audit team that assess properties to ensure that all of the right anti-corruption processes are in place. We have also developed a state of the art cybersecurity program to protect data and minimize the possibility of all forms of corruption.

Our internal audit team monitors anti-corruption measures and performance.