Within our broader underwriting and due diligence strategy, our ESG-related evaluations are two-fold. Our transactional due diligence serves as a starting point for our subsequent tenant engagement programs, including establishing a dialogue with key counterparts to learn about their ESG strategies and priorities, collaborating with respect to collecting and reporting sustainability data, and evaluating the sustainability, environmental impact, and climate risk readiness of the properties.

In evaluating potential transactions, we utilize our due diligence processes to assess the degree to which our potential counterparties have integrated environmental sustainability and social responsibility into their operations and management practices in light of their role as long-term stewards of our real estate assets.

In evaluating the real estate underlying a potential acquisition, we obtain customary due diligence reports, sustainability reports, and climate change risk assessments to evaluate risks related to environmental performance and potential environmental exposure or liability, regulatory, and zoning-related risks, as well as the long-term impact of climate change. We further improved this process in the first half of 2024 to develop a more streamlined process for environmental sustainability due diligence.

Last updated: September 9, 2024