History

The AFL-CIO Building Investment Trust (the "Trust") was established in 1988 as a vehicle for the prudent investment of pension funds in a diversified real estate portfolio. Its creation offered Taft-Hartley and public employee pension plans an attractive option for investment in the area of commercial real estate - expanding the scope of the AFL-CIO Investment Program beyond its original focus on housing.

Today the Trust is one of two investment options in the AFL-CIO Investment Program’s family of funds. Its companion fund is the AFL-CIO Housing Investment Trust.

Achievements

Since 1988, the Trust has built a consistent record of providing its participants competitive risk-adjusted returns and a high degree of security. At the same time it has been successful in achieving important secondary investment objectives, including:

• Strengthening the economy with participation in over $6 billion in real estate investment transactions (office, retail, multifamily, hotel, warehouse and mixed-use) across the U.S.
• Financing over 150 office, industrial, hotel, and apartment projects.
• Generating over 30 million hours of employment for members of the building and construction trades unions.
• Creating union employment in the maintenance and operation of its equity properties.

Performance

The operating history of the Trust testifies to the success of its investment strategy. The Trust has focused on supply-constrained markets and credit tenants to build a high-quality real estate portfolio. As the portfolio matured during the 1990s, the Trust added real estate equity holdings to the construction and mortgage financing in the portfolio, giving it flexibility in changing markets to invest in debt or equity instruments. While continuing to be an active participant in new development, the Trust expects to continue to increase its equity investments, consistent with market conditions, with the goal of increasing overall returns while balancing risks.

With its portfolio of well-located properties with quality tenants, the Trust held its own during the real estate downturn of the early 1990s and also performed well in the rising markets that followed. In the 2001 recession, the performance of the Trust compared favorably to other real estate investment vehicles.

Growth

The BIT has grown dramatically in the 15 years ended September 30, 2007, with its net assets growing from $315 million to over $2.8 billion. The investment of 161 participants is a clear reflection of continuing investor confidence in the BIT's investment strategy.

With its growing assets, the Trust has become a significant source of capital for commercial real estate development.