Arch. Simone Spreafico Engagement Director, Investment, Advisory & Valuation Division

1. GREEN BUILDINGS: INSTRUCTIONS FOR USE Arch. Simone Spreafico Engagement Director, Investment, Advisory & ValuationDivision

2. GREEN BUILDINGS: INSTRUCTIONS FOR USE AGENDA • MARKET PERFORMANCE: THE LINK BETWEEN BUILDING AND FINANCIAL PERFORMANCE • CURRENT VERSUS GREEN CONTRACTS • REAG & ECOMAG :A JOIN TO SATISFY ALL STAKEHOLDERS

3. GREEN BUILDINGS: INSTRUCTIONS FOR USE Beni Stabili Towers= 45.000 square meters Energy Park = 57.500 square meters Porta Nuova= 360.000 square meters Laurentina = 6.500 square meters

4. GREEN BUILDINGS: INSTRUCTIONS FOR USE ECONOMICS, FINANCIAL, ENVIRONMENTAL AND SOCIAL EFFICIENCY ECONOMICS, ENVIRONMENTAL AND SOCIAL EFFICIENCY • ENERGY EFFICIENCY • RENEWABLE ENERGIES • POLLUTION REDUCTION • HEALTH & SAFETY • INDOOR AIR QUALITY • LOCAL MATERIALS • SPACE PLANNING EFFICIENCY • PUBLIC BENEFITS • RISK MITIGATIONS • ENERGY EFFICIENCY • RENEWABLE ENERGIES • POLLUTION REDUCTION • HEALTH & SAFETY • INDOOR AIR QUALITY • LOCAL MATERIALS ECONOMICS AND ENVIRONMENTAL EFFICIENCY • ENERGY EFFICIENCY • RENEWABLE ENERGIES ENERGY EFFICIENCY BUILDINGS SUSTAINABLE BUILDINGS GREEN BUILDINGS

5. GREEN BUILDINGS: INSTRUCTIONS FOR USE • HANDS ON GREEN BUILDINGS • Green Building FeasibilityStudy • Green Building Advisory • Green Building RiskAnalysis • Costs - Savings Green Building Analysis • Green Building Financial Performance • HVAC InstallationQuality Control • Sustainable Building Certification • Performance monitoringanalysis • on site construction

6. GREEN BUILDINGS: INSTRUCTIONS FOR USE SHOULD INVESTORS CONSIDER GREEN BUILDINGS IN THEIR PROPERTY DECISION? • ENERGY AUDIT • SUSTAINABILITY CERTIFICATIONS • SUSTAINABLE DUE DILIGENCE • ECONOMIC ANALYSIS • FINANCIAL ANALYSIS • RISK ANALYSIS

7. GREEN BUILDINGS: INSTRUCTIONS FOR USE THE INVESTORS MAY CONSIDER BOTH: BUILDING FEATURES OUTCOMES AND FINANCIAL OUTCOMES • DCF ANALYSIS • TANGIBLE AND INTANGIBLE REVENUES • POSITIVE AND NEGATIVE RISKS • PAYBACK, IRR AND ROI • SENSITIVITY ANALYSES FOR DIFFERENT STAKEHOLDERS • SUSTAINABLE SITES • WATER EFFICIENCY • ENERGY & ATMOSPHERE • MATERIAL & RESOURCES • INDOOR ENVIRONMENTAL QUALITY • INNOVATION & DESIGN PROCESS

8. GREEN BUILDINGS: INSTRUCTIONS FOR USE MARKET PERFORMANCE: THE LINK BETWEEN BUILDING AND FINANCIAL PERFORMANCE BUILDING PERFORMANCE MARKET PERFORMANCE FINANCIAL PERFORMANCE • Analysis on 59 LEED* USA Existing Buildings • IRR minimum = 11% • maximum PBP = 9 years • Implementation costs= 0,08$ sf • Sales price premium: 5,8%-31% Energy Star • Sales price premium: 9,9%-35% LEED • REGULATORS • SPACE USERS • INVESTORS * Envision Realti, June 2009

9. GREEN BUILDINGS: INSTRUCTIONS FOR USE IN USA THE MOST LEASES ARE ON A FULL SERVICE BASIS • POTENTIAL GROSS INCOME • + BaseRentalIncome • + OperatingExpenses • + HVAC and electricIncome • + Others • POTENTIAL GROSS INCOME • - Vacancy & CollectionLoss • - Property Management • OperatingExpenses • - MunicipalityTaxes • - Agency • TOTAL OPERATING EXPENSES And in ITALY? AT THE MOMENT CONTRACTS ARE BASED ON THE AREA BUT IN FUTURE THEY CAN BE ALSO ON UTILITIES BASIS

10. GREEN BUILDINGS: INSTRUCTIONS FOR USE A GOOD THING TO DO IS TO CHANGE THE RENT AND LEASE UP CONTRACTS • REAL ESTATE ENTREPRENEUR • RENEWABLE ENERGY ENTREPRENEUR AT THE MOMENT IN FUTURE PROPERTY RENT ON AN AREA BASIS PROPERTY RENT ON A FULL SERVICES BASIS

11. GREEN BUILDINGS: INSTRUCTIONS FOR USE • CASH FLOW ANALYSIS 1 2 … … n-1 n • + Base Rental Revenue • - Base Rent Abatements • BASE RENTAL INCOME • ADD: • + Energy Saving • + Water Saving • + Space saving • + Health and Worker Saving Costs (Productivity) • + Energy Producing • + Government Incentives • (+ Green Certification sell) • + Turnover Vacancy • Capital expenditures • POTENTIAL GROSS INCOME • - Vacancy & Collection Loss • EFFECTIVE GROSS INCOME • Operating Expenses • Real Estate Taxes • (+ Green Design, Construction & Contracts) • - Property & Agency • - Insurance cost • - Maintenance Costs • NET OPERATING INCOME LEASE CONTRACTS MAY GAIN BENEFITS FROM BETTER BUILDING PERFORMANCE AND FINANCIAL PERFORMANCE % OWNER 100% CONTRACT % TENANT

12. GREEN BUILDINGS: INSTRUCTIONS FOR USE A case study in Rome ?% OWNER 100 % CONTRACT ? % TENANT

13. GREEN BUILDINGS: INSTRUCTIONS FOR USE REAG ValuationAnalysis on a fewItalianBuildings • IRR = 11% • ROI= 10% • Pay Back Period = 11 years • Implementationinitialcosts= 300 euro/s.m. • Sales Price premium: up to +16% • Rent Price premium : up to 8%

14. CONVENTIONAL BUILDING GREEN BUILDING GREEN BUILDINGS: INSTRUCTIONS FOR USE • What about INITIATIVE RISK for Office Property? LOCATION REGULATION LOCATION REGULATION MAINTENANCE RISK OUT MAINTENANCE RISK OUT USE PROCESS PERFORMANCE USE PROCESS PERFORMANCE MARKET BUILDING PERFORMANCE MARKET BUIDING PERFORMANCE THE GREEN BUILDING RISK IMPACT ON DISCOUNT RATE WOULD BE LESS

15. GREEN BUILDINGS: INSTRUCTIONS FOR USE • REDUCED INFRASTRUCTURE COSTS , PUBLIC GRANTS, FAVORABLE FINANCING AND TAX BENEFITS • ADDED VALUE RELATED TO HIGHER BUILDING PERFORMANCE BENEFITS AND FINANCIAL BENEFITS • VACANCY REDUCTION AND FASTER BUILDING OCCUPATIONS • BRAND AND RETURN ON IMAGE • DEVELOPMENT RISK REDUCTION • MAXIMIZING OF ROE AND FASTER PAYBACK WHO SHOULD INVEST IN GREEN BUILDINGS AND WHY? • IMPROVED MARKET VALUE • EMPLOYEE HEALTH • PRODUCTIVITY • SKILLED WORKERS RETENTION • SAVING OPERATING COSTS • LESS RISK IN THE LONG RUN • BETTER SURETY IN REFUNDABLE THANKS TO VACANCY REDUCTION • HIGHER TRANSPARENCY IN DOCUMENTATIONS THANKS TO GREEN RATING • HIGHER STABILITY IN REVENUES/DEBITS RATIO • PARTNERSHIP • EUROPEAN FUNDINGS • SUSTAINABLE CERTIFICATION LABELS • HIGHER EFFICIENCY AND MANAGEMENT CONTROL • SAVING CONSUMPTION • LESS CO2 EMISSIONS • HIGHER PRODUCTIVITY FOR HIGHER INNER AIR QUALITY • HIGHER ATTRACTION OF SKILLED WORKERS • IMPROVED MARKET VALUE • OPERATIONS AND MAINTENANCE COSTS SAVING • NEW MARKET ENTERING • PARTNERSHIP • EUROPEAN FUNDINGS • GOVERNMENT INCENTIVES & BENEFITS • SUPPORT TO COMPANIES • RETURN ON “IMAGE” • HIGHER OCCUPATIONS RATE • HIGHER PIL • TERRITORY VALORIZATION • REQUALIFICATION OF OBSOLETE PUBLIC REAL ESTATE ( Project Financing) • FOREIGN CAP ATTRACTION • MORE STABLE RETURNS DUE TO LESS VACANCY IN THE LONG RUN • HIGHER VALUE IN COMPARISON WITH TRADITIONAL BUILDING • HIGH PROFILE COMPANY ATTRACTION • HIGHER SPACES FLEXIBILITY AND RATIONALITY • HIGHER TENANTS RETENTION • HIGHER BUILDINGS PRICE (sell/rent) • LESS OPERATIONAL AND MAINTENANCE COSTS • GOVERNMENT INCENTIVES