Portfolio Commentary
Rinse Brink, PNC Realty Investors, Inc.
March 2008

The AFL-CIO Building Investment Trust ("BIT") reported gross and net returns of 1.42% and 1.18%, respectively, for the first quarter of 2008. The gross return was comprised of an income return of 1.14% and an appreciation return of 0.28%. Gross and net returns for the one year period ended March 31, 2008 were 12.42% and 11.35%, respectively. The gross one-year return was comprised of an income return of 5.88% and appreciation return of 6.27%. This performance compares to gross returns for the NCREIF Property Index ("NPI Index") of 1.60% for the quarter and 13.58% for the one-year period ended March 31, 2008. Relative to the significant appreciation realized over the past several years, the BIT experienced modest appreciation during the first quarter. As we look to the balance of the year, we anticipate continued market weakness and rising capitalization rates. The impact on the portfolio suggests modest downward valuation adjustments in the periods ahead. The BIT portfolio remains diversified across all major property sectors and regions and we believe it should not be disproportionately impacted by troubles in any particular product sector or market. The commercial portfolio (office, industrial and retail) remains well leased at 93% as of March 31, 2008, and occupancy levels stood above national averages for all property sectors. The portfolio faces rollover of approximately 15% of total commercial space in 2008, and early indications as to renewal activity are encouraging, particularly in the industrial sector. The BIT will be a selective investor in 2008, and will focus on development opportunities in target markets where capital has become most scarce. BIT acquisition activity will be focused on key growth markets and will be highly selective. The BIT will continue to prudently sell assets in 2008, focusing on smaller holdings or investments located in markets with slow growth prospects. 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. ©2008 All rights reserved.