Portfolio Commentary
Rinse Brink, PNC Realty Investors, Inc.
4th Quarter 2009

The AFL-CIO Building Investment Trust ("BIT") reported gross and net returns of -4.17% and -4.41%, respectively, for the fourth quarter of 2009. The gross return was comprised of an income return of 1.61% and an appreciation return of -5.78%. Gross and net returns for the one year period ended December 31, 2009 were -24.75% and -25.49% respectively. The gross one-year return was comprised of an income return of 6.39% and appreciation return of -29.67%. This performance compares favorably to gross returns for the NCREIF Open End Fund Index ("NFI-ODCE") of -3.48% and -29.76% for the quarter and one-year periods ended December 31, 2009. The BIT continues to be impacted by significant capital depreciation across most property sectors, although at a much slower pace in the prior quarters. It appears that a bottom is forming in commercial real estate asset valuations. The BIT portfolio remains well diversified across all major property sectors, regions, and industries. The occupancy level for the commercial portfolio stood at 88% as of December 31, 2009, and remains above national averages for all commercial property sectors. Occupancy for the BIT multifamily portfolio stood at 89%, down from 91% at the end of the third quarter and slightly below the national average of 92%. The BIT remains moderately leveraged with manageable near term debt maturities. The portfolio leverage ratio continues to increase however, as asset valuations decline. The BIT successfully sold three assets generating $56 million during the fourth quarter, as transaction volume is increasing while asset prices are stabilizing Materials, representations and opinions presented herein are those of PNC Realty Investors, Inc. (“PRI”), and are of a general nature. They do not constitute the provision by PRI of investment, legal, tax or accounting advice to any person or entity, or a recommendation to participate in the AFL-CIO Building Investment Trust (the ‘BIT”). Opinions expressed herein are subject to change without notice. Information and figures, upon which the materials, representations and opinions may be based, may be obtained from independent sources deemed reliable, but have not been independently verified by PRI, and their accuracy and completeness cannot be guaranteed. Past performance is no guarantee of future performance. The information is not intended to be a comprehensive description of any investment product or capability. Neither the information in this report nor any opinion expressed herein constitute an offer to buy or sell, nor a recommendation to buy or sell, any security or financial instrument or investment. Investors should consider BIT’s investment objectives, risks and expenses before investing therein. Investors should consult their own advisors and investment professionals to evaluate the merits and risks of investment. Any case, ruling, law or regulation discussed should be independently reviewed in its entirety before it is relied on in any particular situation. PRI is a subsidiary of The PNC Financial Services Group, Inc. (“PNC”). PNC provides investment and wealth management, fiduciary services, and FDIC-insured banking products and services and lending and borrowing of funds through its subsidiaries. Investments and interests in the BIT are not FDIC-insured, are not guaranteed by PNC Bank, any of its affiliates, or any Federal Government agency, and may lose value. ©2010 All rights reserved.