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Are You Leaving Money on the Roof Are You Leaving Money on the Roof? How to Leverage Solar Energy to Increase Real Estate Value

| About Us AltaE helps its clients navigate their way to achieving the benefits of renewable energy– we are a “Renewable Energy Navigator” For owners and managers of commercial and industrial real estate portfolios, we provide: Neutral, subject matter expertise Portfolio analysis and procurement/deployment services Holistic, long-term renewable energy strategy development

Solar Energy | Introduction Solar has become mainstream Costs have fallen by 70% over last decade Solar electricity is cheaper than utility electricity in more and more places Major corporation with solar: Target, Walmart, Prologis each with more than 100MW installed (>700 facilities) Apple, Costco, Walgreens, Macy’s, Kohl’s, GGP, FedEx, J&J, GM In 2016, more solar generation will be added in the US than ANY OTHER SOURCE of electricity

Solar Energy | Benefits for CRE Favorable Economics Increased NOI Positive returns – 7-15% IRR Tax incentives Multiple financial structures Sustainability CO2 emissions reductions LEED certification points Tenant Satisfaction Lower cost electricity Preference for green buildings Ancillary benefits, e.g. covered parking and EV charging with solar carports

CRE Solar | Structure Options Direct Purchase* Property Owner finances, owns system Tax incentives to Property Owner 30% ITC MACRS Depreciation Property Tax Exemption Electricity produced offsets utility electricity Common area loads Master meter (full service lease without submetering) Self perform or contract O&M IRR 7-15%, payback 4-10 yrs *Best economics with capital and tax appetite Property Owner Solar System Common Area Loads Master Meter (Full Service Lease) Master Meter (Sub-metered) Tenant Meters (Triple-net) Utility Bill Savings Tax Benefits Cash Payments Debt Service O&M Solar Electricity

CRE Solar | Structure Options Power Purchase Agreement (PPA)* Third Party finances, owns system Tax incentives to Third Party Solar electricity sold to Property Owner at discount to utility electricity Common area loads Master meter (full service lease without submetering) Tenant meters (triple-net) O&M provided by Third Party Savings 15-25%, 20 year contract Lease payment to Property Owner optional *No capital outlay required Cash Payments Debt Service O&M Tax Benefits Property Owner Third Party Utility Bill Savings Energy Payments Tenant Solar System Solar Electricity Common Area Loads Master Meter (Full Service Lease) Tenant Meters (Triple-net) Master Meter (Sub-metered)

CRE Solar | Structure Options Roof (or Parking Area) Lease* Third Party finances, owns system Tax incentives to Third Party Solar electricity sold to others Triple-net lease Tenants Utility feed-in-tariff (e.g., LADWP) O&M provided by Third Party Lease payments to Property Owner, ~$0.15 -$0.25 / ft per year *Simplest transaction for CRE Third Party Solar System Common Area Loads Master Meter (Sub-metered) Tenant Meters (Triple-net) Tax Benefits Cash Payments Debt Service O&M Property Owner Tenant Utility Bill Savings Energy Payments Electric Utility Lease Solar Electricity Master Meter (Full Service Lease)

CRE Solar | Project Implementation Customer Side Variables Market Side Variables Electricity Consumption Patterns Technology Manufacturers Establish Goals Analyze Portfolio Make Business Case Define Scope Select Provider(s) Execute Projects Monitor Portfolio Facility Details/Site Characteristics Installers/ Developers Financial Requirements/ Hurdle Rates Alternative Energy Suppliers Structure Preference & Restrictions Fed/State & Local Incentives Planning Time Horizon Local Utilities & Regulators 3rd Party & Constituency Requirements Financial Partners & Lenders Turn underutilized space (roof, parking, etc.) into sustainable, cash-generating assets

Case Study | Westfield Corp Westfield US 33 Shopping Centers 40 Million Square Feet 5800 Stores 8 States AltaE completed portfolio analysis and ranking of sites by IRR, providing ongoing monitoring 8 projects completed or underway, 10+ MW rooftops and carports Structure: Direct purchase to serve common area loads Cumulative savings >$40M ~10,000 metric tons/yr CO2 reduction

Case Study | Large Real Estate Portfolio Global real estate investment firm 400 properties 50 Million square feet Global footprint Initial project under development 2 upper level parking garage canopies with EV charging 1.4 MW Full offset energy requirement of common area amenities building Structure: Power Purchase Agreement with lease payment to serve common area loads $1M new lease revenue 300 metric tons/yr CO2 reduction

Conclusion | Solar works for CRE Those empty spaces can deliver more… Financial Performance Tenant Satisfaction Sustainability …you’ve got a portfolio of opportunity waiting to be tapped. Don’t leave that money on the roof!

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