1. Portfolio Management December 2007

2. 2 Vision To achieve a flexible, responsive and synchronized portfolio that meets the short and long term needs of GoC program objectives… …to provide best value and to allow maximum use of program dollars for its intended use.

3. 3 Objectives Cost effective, balanced, diversified and sustainable portfolio Prioritization of capital Investments synchronized with our capacity to deliver Optimum matching of supply and demand Quality accommodation Timely delivery Client program objectives Robust strategic portfolio decision making process

4. Portfolio Supply Solutions Crown Owned/Lease purchased Leased Space Common Use/Special Purpose Engineering Assets Consists of… 389 buildings (lease-purchased buildings included) 50 year average age 3.9 million m 2 rentable in total Data Centres Labs Conference Centres Central Heating and Cooling Plants 7 bridges 4 dams 8 specialized assets & marine assets 2,000 leases 2.9 million m2 Strategies Divestiture Stewardship Risk mitigation strategies National Portfolio Mgmt Plan framework 5 yr strategic Portfolio Plan Portfolio Tiering Planned Leasing Actions Rpt National Office Leasing Strat. Supply solutions Aggregate demand Sale / Leaseback Lease Purchase Real Estate Study P3’s Divestiture Stewardship Risk mitigation strategies Define specific categories of space needs Clients relative to space AFD “Back-office” strategies DemandAssets Space Infrastructure Real Property Branch Portfolio

5. 5 Better understanding of client departments’ accommodation needs Better planning, information, tools and performance indicators More responsive delivery Continue to support broader government objectives Key Overall Strategies

6. 6 Desired State A portfolio of space which is forward looking, yet timely and flexible in addressing the immediate and changing needs of our clients, workforce and industry… …while respecting GoC policies and objectives.

7. Define Client and Portfolio Demand (i.e. core, variable, flexible or undefined and asset) Developed Supply Solutions (i.e. long term solutions, partnerships, “just-in-time”) Portfolio Management Approach to Achieving the Desired State Desired State Drivers Enablers Drivers Enablers Drivers Enablers

8. 8 Desired State of the Portfolio Reflects client needs (demand) Leverages technology Meets governments social policy objectives Exhibits federal presence

9. 9 Develop a better understanding of client department’s accommodation and RPB’s assets’ needs Develop offices that integrate modern technology with real estate to provide more effective workplace solutions for federal government organizations Develop prioritization methodology linking recapitalization and capital investments to improved portfolio performance Define Demand

10. 10 Define Demand Develop and implement service level agreements Obtain detailed information of client’s space needs through an Account Executive network To use accommodation to assist clients in: Attracting and retaining qualified staff Improving employee productivity Reducing the costs associated with organizational churn

11. 11 Better planning, information, tools and performance indicators Gain better market knowledge Modernize the Investment Analysis Framework Identify Drivers and Enablers

12. 12 Improve systems and information for… Improve performance indicators and reporting for… Take an integrated national approach to portfolio management Identify Drivers and Enablers

13. 13 Support government objectives of… Measure investments to improving the economic, social and environmental characteristics of the Portfolio Provide flexible, innovative long term, “just-in- time” and “surprise free” supply solutions Respect the Federal Identity Program (FIP) Define Supply

14. 14 Develop additional opportunities and options to “green” the portfolio including green leasing strategies, improved fit-up/base building controls, review of inventory for underperforming assets, etc. Improve accessibility to both owned and leased components of portfolio Advance the government’s achievement of the “75/25” objective for offices in the Ottawa/Gatineau area Define Supply

15. 15 Summary Using a modern corporate real estate model, RPB will manage its portfolio using a comprehensive, integrated approach that incorporates the concepts of aggregate demand and supply, and uses modern performance management techniques

16. Better demand management Having the right tools, information systems, models & plans Better supply management Desired state Summary

17. Portfolio Assessment