X

Facilities Energy ManagementAlexis 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 CentersCommunity CentersOffices3rd Party / Other

158833

32101417

92.772.41.04.92.70.8

10.9

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 DoesReads your utility bills: electricity, gas, water

Simple data visualization tools

Identifies usage spikes

Benchmarks against peers

Projects and measures savings

Log onto your WegoWise accountTrack 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 MarketOnly 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 ApproachNo hardware = No upfront capital commitment

Issue DiscoveryData leads to ROI Prioritization

Ongoing monitoring and benchmarkingWegoWise 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