2025 ESG Report› Private Real Estate
Private Real Estate

Laying the Foundation
for Enduring Prosperity

Assessing sustainability across acquisitions, asset management, and impact measurement for private real estate portfolios.

Private Real Estate

Overview

Real estate is more than just bricks and mortar. Every local shopping center, industrial property, and rental housing investment plays a role in the way we live and work, creating a material environmental and social impact on the way communities exist. As such, these attributes are critical to the long-term, sustainable value associated with these assets. To appropriately quantify, measure, and track these impacts across our private real estate portfolio, we proactively integrate ESG metrics into our due diligence and asset management processes.

SDG 6 SDG 7 SDG 8 SDG 9 SDG 11 SDG 12 SDG 13
Pre-Investment

ESG Due Diligence: Assessing Sustainability in the Private Market

We have integrated sustainability into our due diligence process for private real estate investments in the form of an ESG checklist to generate a more complete picture of a property’s value and uncover risks to that value, or opportunities to enhance it by incorporating sustainability considerations into our business plans.

In 2025, we expanded our focus on climate risk by formalizing it as a core part of our due diligence and underwriting process. For every property evaluation, our team conducts dedicated climate risk screening to assess exposure to physical climate hazards such as flooding, heat, and storm risk, with findings incorporated directly into underwriting assumptions, capital planning, and Investment Committee materials. Where climate risks are identified, mitigation measures are built into the asset’s business plan from the outset. We also continued hands-on property-level initiatives, including appropriate landscaping in flood-prone areas to manage water flow, removal of dead and dry vegetation to mitigate wildfire risk, installation of native plants, and regular roof inspections to ensure resilience against storm damage.

Environmental Assessment
✓
Phase I / Phase II Environmental Site Assessment Findings
✓
Physical Water Assessment / Climate Related Physical Risks
✓
Access to Public Transit / Alternative Transportation
✓
Bicycle Facilities / Reduced Parking Footprint / EV Charging
✓
Indoor Air Quality Assessment / Smoke Control
✓
Storage and Collection of Recyclables
✓
Construction Activity Pollution Prevention
✓
Construction & Demolition Waste Management Planning
✓
Energy Monitoring / Performance
✓
Efficient Interior / Exterior Lighting
✓
Certified Green Building
✓
Building Energy Performance
✓
Indoor / Outdoor Water Use Reduction
✓
Solid Waste Management Planning & Policy
✓
Site Management / Site Improvement Plan
✓
Energy Efficiency / Renewable Energy / Green Power
✓
Green Cleaning — Materials, Equipment
✓
Rainwater Management
Social Assessment
✓
Responsible Contractor Policy Documentation & Signature
✓
Community Impact Assessment
✓
Walkable Streets / Connected & Open Community
✓
Tenant Health & Wellness
Governance Assessment
Background Checks
✓
Partners
✓
Sponsors
✓
Borrowers
✓
Entities with a significant financial interest in the property
Environmental Assessment
✓
Phase I / Phase II Environmental Site Assessment Findings
✓
Physical Water Assessment / Climate Related Physical Risks
✓
Access to Public Transit / Alternative Transportation
✓
Bicycle Facilities / Reduced Parking Footprint / EV Charging
✓
Indoor Air Quality Assessment / Smoke Control
✓
Storage and Collection of Recyclables
✓
Construction Activity Pollution Prevention
✓
Construction & Demolition Waste Management Planning
✓
Energy Monitoring / Performance
✓
Efficient Interior / Exterior Lighting
✓
Certified Green Building
✓
Building Energy Performance
✓
Indoor / Outdoor Water Use Reduction
✓
Solid Waste Management Planning & Policy
✓
Site Management / Site Improvement Plan
✓
Energy Efficiency / Renewable Energy / Green Power
✓
Green Cleaning — Materials, Equipment
✓
Rainwater Management
Social Assessment
✓
Responsible Contractor Policy Documentation & Signature
✓
Community Impact Assessment
✓
Walkable Streets / Connected & Open Community
✓
Tenant Health & Wellness
Governance Assessment
Background Checks
✓
Partners
✓
Sponsors
✓
Borrowers
✓
Entities with a significant financial interest in the property
Asset Management

Value-Added: Impact Measurement

When evaluating sustainability in private real estate, it’s important to understand the impact of our decisions not only from a sustainability perspective, but also how that generates financial value. Here, we work with Autocase to translate the sustainability attributes of our capital deployment into a triple-bottom-line net present value analysis that measures social, environmental, and financial impacts of the building design decisions included in our value-add business plan. The following table includes total triple bottom line impacts of new acquisitions during the 2025 calendar year:

CenterSquare Impact – 2025 Acquisitions
Category Impact NPV Total
Financial Energy Savings $5,731,921 Total Financial
$5,831,321
Water Savings $99,400
Social Heat Island Effect $2,106,700 Total Social
$3,085,900
Recreation $979,200
Environmental Carbon Emissions $1,683,830 Total Environmental
$1,931,735
Carbon Sequestration $63,100
Air Pollution $166,045
Water Scarcity $18,760
Triple Bottom Line Lifetime Value $10,848,956

Source: Autocase triple-bottom-line analysis, 2025.

Triple Bottom Line Metrics & Equivalencies
7,293
Metric Tons
of CO2e
1,701
Cars Off the Road
for 1 Year
120,590
Tree Seedlings
Grown for 10 Years
2,577
Tons of Waste Recycled
Rather Than Sent to a Landfill
CenterSquare Impact - 2025 Acquisitions
Category Impact NPV Total
Financial Energy savings $5,731,921 Total financial$5,831,321
Water savings $99,400
Social Heat island effect $2,106,700 Total social$3,085,900
Recreation $979,200
Environmental Carbon emissions $1,683,830 Total environmental$1,931,735
Carbon sequestration $63,100
Air pollution $166,045
Water scarcity $18,760
Triple bottom line lifetime value $10,848,956

Source: Autocase triple-bottom-line analysis, 2025.

Triple Bottom Line Metrics & Equivalencies
7,293
Metric Tons
of CO2e
1,701
Cars Off the Road
for 1 Year
120,590
Tree Seedlings
Grown for 10 Years
2,577
Tons of Waste Recycled
Rather Than Sent to a Landfill
"

"Lasting value and sustainability are two sides of the same coin. From assessing climate-related risks tied to a property's location to implementing energy-efficient upgrades, each factor carries a measurable financial weight that feeds directly into our broader analysis. The richer our data, the sharper our decisions — and the stronger the portfolio we build for the long run."

Victoria Bocanegra
Victoria Bocanegra
Vice President, Private Real Estate, CenterSquare Investment Management

The following examples demonstrate the triple bottom line impact of CenterSquare's value-add business plans.

Rental Housing
Sorrel Creek

Sorrel Phillips Creek Ranch is a 2015 vintage, 352-unit apartment community located in the Frisco submarket of Dallas, TX. The property aligns with CenterSquare's residential thesis by addressing the affordable housing crisis through providing rental housing options in high-quality, accessible suburban communities. Our value-add renovation program prioritizes sustainable improvements that enhance resident quality of life while driving long-term operational efficiency.

Impact to Date
Category Impact NPV Total
Financial Energy Savings $1,839,000 Total Financial
$1,880,600
Water Savings $41,600
Environmental Carbon Emissions $685,040 Total Environmental
$746,778
Air Pollution $60,748
Water Scarcity $990
Grand Total NPV $2,627,378
Triple Bottom Line Metrics & Equivalencies
2,771
Metric Tons of CO2e
646
Cars Off the Road for 1 Year
45,819
Tree Seedlings Grown for 10 Years
979
Tons of Waste Recycled
Essential Service Industrial
Houston Woodlands

Houston Woodlands is a 4-building, 244,946sf essential service industrial portfolio located in the Woodlands and Spring submarkets of Houston, TX. The portfolio supports surrounding communities by housing tenants that provide critical everyday services. Our capital improvement plan reflects our focus on enhancing long-term asset quality and operational efficiency.

Impact to Date
Category Impact NPV Total
Financial Energy Savings $241,720 Total Financial
$241,720
Water Savings $0
Environmental Carbon Emissions $214,300 Total Environmental
$233,130
Air Pollution $18,830
Grand Total NPV $474,850
Triple Bottom Line Metrics & Equivalencies
871
Metric Tons of CO2e
203
Cars Off the Road for 1 Year
14,402
Tree Seedlings Grown for 10 Years
308
Tons of Waste Recycled

The following examples demonstrate the triple bottom line impact of CenterSquare's value-add business plans.

Rental Housing
Sorrel Creek

Sorrel Phillips Creek Ranch is a 2015 vintage, 352-unit apartment community located in the affluent Frisco submarket of Dallas, TX. The property aligns with CenterSquare's residential thesis by addressing the affordable housing crisis through investment in high-quality, accessible suburban communities. Our value-add renovation program prioritizes sustainable improvements that enhance resident quality of life while driving long-term operational efficiency.

Impact to Date
Category Impact NPV Total
Financial Energy savings $1,839,000 Total financial$1,880,600
Water savings $41,600
Environmental Carbon emissions $685,040 Total environmental$746,778
Air pollution $60,748
Water scarcity $990
Grand total NPV $2,627,378
Triple Bottom Line Metrics & Equivalencies
2,771
Metric Tons of CO2e
646
Cars Off the Road for 1 Year
45,819
Tree Seedlings Grown for 10 Years
979
Tons of Waste Recycled
Essential Service Industrial
Houston Woodlands

Houston Woodlands is a 4-building, 244,946 square foot essential services industrial portfolio located in the Woodlands and Spring submarkets of Houston, TX. The portfolio supports surrounding communities by housing tenants that provide critical everyday services, aligning with CenterSquare's commitment to socially responsible investment. Our capital improvement plan reflects our focus on enhancing long-term asset quality and operational efficiency.

Impact to Date
Category Impact NPV Total
Financial Energy savings $241,720 Total financial$241,720
Water savings $0
Environmental Carbon emissions $214,300 Total environmental$233,130
Air pollution $18,830
Grand total NPV $474,850
Triple Bottom Line Metrics & Equivalencies
871
Metric Tons of CO2e
203
Cars Off the Road for 1 Year
14,402
Tree Seedlings Grown for 10 Years
308
Tons of Waste Recycled
Asset Management

Essential Service Retail

By nature, our Essential Service Retail (ESR) properties play a pivotal role in their communities. As a result, we believe it’s important for these properties to contribute to building a more sustainable and resilient community.

SDG 6 SDG 7 SDG 11 SDG 12 SDG 13

Environmental Stewardship

Our sustainability efforts in neighborhood shopping centers extend beyond the buildings themselves and into the parking lots and surrounding outdoor areas through strategies such as:

  • → Partnering with Tesla to install EV charging stations and expanding capabilities through other providers, creating additional income streams.
  • → Performing LED retrofits across parking lots to reduce energy consumption and costs.
  • → Integrating native plant species into landscaping to promote biodiversity and reduce water consumption.
  • → Performing Phase 1 Environmental Site Assessments (ESA) and Property Condition Assessments (PCA) to ensure compliance and identify areas for improvement.
  • → Engaging with tenants to reduce resource utilization and utility costs within their individual suites.

These strategies serve not only as sustainability enhancements at the asset level but also contribute to financial value creation across our portfolio.

Community Impact

The essential nature of the neighborhood shopping centers in our ESR portfolio make them integral to day-to-day life for the communities in which they reside. They are spaces for residents to gather to enjoy and celebrate their local communities and should reflect the important role they play. We collaborate with property managers, tenants, and local businesses through strategies such as:

  • → Utilizing local providers to perform work on our properties during the improvement stage.
  • → Selecting tenants through a void analysis that assesses the existing tenant mix to determine what new tenants could represent the best fit for the community.
  • → Prioritizing accessibility to all community members, making modifications to ensure ADA compliance.
  • → Sharing regular updates including announcements featuring new tenants or upcoming events, leveraging local publications for marketing and visibility.
  • → Hosting community events at our properties and promoting tenants. For example, when new tenant Chicken Salad Chick opened at Liberty Village, their grand opening drew such a large crowd that the event made local news.

Environmental Stewardship

Our sustainability efforts in neighborhood shopping centers extend beyond the buildings themselves and into the parking lots and surrounding outdoor areas through strategies such as:

  • → Partnering with Tesla to install EV charging stations and expanding capabilities through other providers, creating additional income streams.
  • → Performing LED retrofits across parking lots to reduce energy consumption and costs.
  • → Integrating native plant species into landscaping to promote biodiversity and reduce water consumption.
  • → Performing Phase 1 Environmental Site Assessments (ESA) and Property Condition Assessments (PCA) to ensure compliance and identify areas for improvement.
  • → Engaging with tenants to reduce resource utilization and utility costs within their individual suites.

These strategies serve not only as sustainability enhancements at the asset level but also contribute to financial value creation across our portfolio.

Community Impact

The essential nature of the neighborhood shopping centers in our ESR portfolio make them integral to day-to-day life for the communities in which they reside. They are spaces for residents to gather to enjoy and celebrate their local communities and should reflect the important role they play. We collaborate with property managers, tenants, and local businesses through strategies such as:

  • → Utilizing local providers to perform work on our properties during the improvement stage.
  • → Selecting tenants through a void analysis that assesses the existing tenant mix to determine what new tenants could represent the best fit for the community.
  • → Prioritizing accessibility to all community members, making modifications to ensure ADA compliance.
  • → Sharing regular updates including announcements featuring new tenants or upcoming events, leveraging local publications for marketing and visibility.
  • → Hosting community events at our properties and promoting tenants. For example, when new tenant Chicken Salad Chick opened at Liberty Village, their grand opening drew such a large crowd that the event made local news.
Capital Deployment

Enhancing Communities through Capital Deployment

The essential nature of rental housing communities in our portfolio makes them integral to the daily lives and well-being of the residents they serve. These properties are more than places to live, they are environments that shape quality of life, support community connection, and influence long-term resilience. We take this responsibility into account from due diligence through asset management, incorporating sustainability considerations that enhance efficiency, reduce environmental impact, and create healthier living spaces. In doing so, we collaborate with stakeholders to ensure our communities remain responsive to the evolving needs of those who call them home.

SDG 8 SDG 9 SDG 11
Lorimer House & Copper Lofts

Lorimer House & Copper Lofts are two adjacent 8-story Class A multifamily buildings at 255 Lorimer Street and 28 Boerum Street in South Williamsburg, Brooklyn, completed in 2024. The properties total 336 units and 8,895 SF of ground-floor retail, with 221 parking spaces.

Residences feature in-unit W/Ds, stainless-steel efficient appliances, and 9.5-ft ceilings, with select units offering balconies and floor-to-ceiling windows. Amenities include a part-time doorman, fitness center, lounges, rooftop deck, co-working space, pet spa, and bike storage. The buildings are steps from the J, M, and G trains and near the L at Montrose Ave, offering roughly 25-minute commutes to Downtown Brooklyn and Midtown Manhattan via public transit.

Interstate Crossing Building B

Interstate Crossing Building B is a newly constructed 618,000 SF Class A logistics facility at the intersection of I-84 and I-684 in Brewster, NY, delivered in Q4 2024.

The property's location is unique in that it allows tenants to service both the NY/NJ and New England markets, something not possible from properties in Newburgh west of the Hudson. The property includes 40-ft ceiling heights, 120 loading positions, and parking for 115 trailers and 511 cars. With a risk of landslide in this location, this asset’s enhanced resiliency measures include retention walls to mitigate this risk.

Strategic Capital

The Intersection of Public and Private Markets

CenterSquare’s Strategic Capital business represents the intersection of public and private real estate. As a result, sustainability initiatives in this area of our business span the practices used across our listed and private real estate strategies as appropriate for each unique investment.

SDG 7 SDG 9 SDG 12 SDG 13

Aligned Data Centers

Through our Strategic Capital platform, CenterSquare invested in Aligned Data, one of the largest and fastest growing private data center developers in the Americas. As data center expansion accelerates, sustainability concerns have also grown for tenants and communities alike, making them a key consideration in CenterSquare’s due diligence process.

Aligned is not only at the forefront of data center technology, but they’re also innovators when it comes to sustainable solutions to meet the high resource needs for data center operations. Their proprietary cooling technology, Delta Cube™ (Delta3), ensures efficiency in the cooling process, which accounts for nearly 40% of a typical data center's energy consumption1. Aligned's scalable design and patented Delta Cube cooling technology allow for the utilization of data center assets to their fullest extent, preventing idle systems from consuming electricity. This dynamic system supports different densities and variable power draws, capturing and removing heat efficiently. Delta3 absorbs heat at its source, enabling customers to scale vertically and horizontally without stranding capacity. Aligned's air-cooled solution accommodates densities up to 50 kW per rack, which is sufficient for some AI requirements. The DeltaFlow™ cooling technology also allows a seamless transition from air-cooled to liquid-cooled systems or a hybrid combination of both, ensuring systems are adaptable as technology evolves to enable higher computing power and subsequent density requirements. Further, Aligned employs a standard closed-loop system, significantly reducing water usage in the data hall.

Aligned's sustainable approach is consistent across their portfolio, with Three Green Globes awarded on three development projects to date. Their projects are designed with sustainability as a core principle, setting a standard for the industry.

1Source: International Energy Agency, Electricity 2024, Analysis and forecast to 2026.

Aligned Data Centers

Through our Strategic Capital platform, CenterSquare invested in Aligned Data, one of the largest and fastest growing private data center developers in the Americas. As data center expansion accelerates, sustainability concerns have also grown for tenants and communities alike, making them a key consideration in CenterSquare’s due diligence process.

Aligned is not only at the forefront of data center technology, but they’re also innovators when it comes to sustainable solutions to meet the high resource needs for data center operations. Their proprietary cooling technology, Delta Cube™ (Delta3), ensures efficiency in the cooling process, which accounts for nearly 40% of a typical data center's energy consumption1. Aligned's scalable design and patented Delta Cube cooling technology allow for the utilization of data center assets to their fullest extent, preventing idle systems from consuming electricity. This dynamic system supports different densities and variable power draws, capturing and removing heat efficiently. Delta3 absorbs heat at its source, enabling customers to scale vertically and horizontally without stranding capacity. Aligned's air-cooled solution accommodates densities up to 50 kW per rack, which is sufficient for some AI requirements. The DeltaFlow™ cooling technology also allows a seamless transition from air-cooled to liquid-cooled systems or a hybrid combination of both, ensuring systems are adaptable as technology evolves to enable higher computing power and subsequent density requirements. Further, Aligned employs a standard closed-loop system, significantly reducing water usage in the data hall.

Aligned's sustainable approach is consistent across their portfolio, with Three Green Globes awarded on three development projects to date. Their projects are designed with sustainability as a core principle, setting a standard for the industry.

1Source: International Energy Agency, Electricity 2024, Analysis and forecast to 2026.