X Facilities Energy Management Alexis Wong, Kiran Singh, Quan Luu, Sam Hein ITEC 200- ITR 2014

Properties No. Of Properties Sq. Ft (M) Total Malls / Open-Air Outlet Centers Associated Centers Community Centers Offices 3rd Party / Other CBL: A Leading Diversified Real Estate Investment Trust

The Bottom Line CBL’s Investors require financial and environmental outperformance What strategies should CBL consider to ensure that these goals are complementary?

What WegoWise Does Reads your utility bills: electricity, gas, water Simple data visualization tools Identifies usage spikes Benchmarks against peers Projects and measures savings

Log onto your WegoWise account Track your energy usage

Benchmarking

Data Analysis Shows a typical water retrofit for multi-occupant building in WegoWise database Low flow toilets were installed in 2009 after WegoWise identified a wasteful energy source Transforming data to polar coordinates can illustrate how much excess water usage is now eliminated Flushing away excess water usage

WegoWise is Extremely Cost-Effective

WegoWise Changes the Economics of FEM Product Market Only 5% of the potential market reached by “total” approaches Several barriers to adoption 2011 Empire State Building Retrofit (Johnson Controls) 38% Reduction in energy consumption $13MM Upfront capital commitment $4.2MM Annual energy savings 3.1 Year payback This formula doesn’t work for a lot of firms

WegoWise and CBL: An Incremental Approach No hardware = No upfront capital commitment Issue Discovery Data leads to ROI Prioritization Ongoing monitoring and benchmarking WegoWise is cost-effective enough to monitor any FEM installations

Why should REITs like CBL pay attention to energy efficiency? ~ 1/3 of typical building operating budgets NOI/NAV effects Occupant comfort 20% of USA’s greenhouse gas emissions Regulatory compliance CSR goals

CBL’s Form 10-K 30% of energy in buildings is used inefficiently or unnecessarily 14%

10% Reduction in energy consumption Pays $2 / square foot 200,000 Square foot property Lets Talk Numbers + $40,000 + $500,000 + $231M At 8% “cap” rate, this can mean an asset value boost of CBL’s net asset value by

Able to save 500 million gallons per month If the energy efficiency of commercial and industrial buildings improve by 10%, the collected savings would be over $2 billion in 20 years CBL’s CSR Program

Now Is the Time to Invest