AFL-CIO Building Investment Trust

The AFL-CIO Building Investment Trust (BIT) began operations July 1, 1988, as an open-end, commingled group trust. Originally investing in real estate-related debt, the BIT's investment strategy has evolved as its assets have grown: first to a balanced debt and equity fund and today as a fund investing primarily in equity real estate assets.  One of the BIT's principal objectives in making real estate investments is to generate competitive income and long-term capital appreciation while protecting investor's capital and providing retirement security for union members.  The BIT also created and operates with one of the most comprehensive union labor policies in the U.S. real estate industry, helping to create union jobs throughout the country.

As an investment program endorsed by the AFL-CIO, the BIT indirectly provides wide-ranging benefits to union members and their communities:

  • Returns. The BIT has an established track record of competitive risk adjusted returns. As of June 30, 2019, the annualized gross and net rates of return since the inception of the fund are 7.86%* and 6.79%,** respectively.
  • Jobs. Subject to the satisfaction of its investment objectives and underwriting criteria, BIT investments support union jobs within construction and related industries. Under its union labor policy, one of the most comprehensive in the U.S. real estate industry, BIT investments have created overly 80 million hours of union construction work, plus thousands of union jobs in the maintenance and operation of BIT properties. 
  • Community Development.  The BIT invests in assets located in the communities where union families live and work.  The BIT has invested over $7.3 billion to finance over 42 million square feet of commercial real estate and just under 16,000 apartment units over the past 30 years. 
The BIT is managed and sponsored by PNC Bank, National Association (PNC Bank), as Trustee, with its headquarters located in Pittsburgh, Pennsylvania.  PNC Realty Investors ("PRI"), with an office located in Washington, DC, provides investment advisory and management services to PNC Bank in connection with the BIT.  PRI is indirectly owned by The PNC Financial Services Group, Inc. ("PNC").  PNC has retained the AFL-CIO Investment Trust Corporation ("ITC") located in Washington, DC, to provide investor and labor relations services.

 





*During First Quarter 2019, the BIT’s trustee identified a miscalculation in an investment valuation which resulted in an overstatement of the Net Asset Value of the BIT for Fourth Quarter 2018 by $8.10 per unit and a corresponding overstatement of the three month return of 0.11% through December 31, 2018. Since the adjustment to correct for the miscalculation falls below the materiality threshold established by the BIT’s independent auditors, correcting adjustments were made in First Quarter 2019. These adjustments made whole the Fund and all Participants, including those who transacted during Fourth Quarter 2018. The returns for First Quarter 2019 also reflect the correction due to the overstatement in Fourth Quarter of 2018.  

Performance data shown represents past performance. Past Performance does not guarantee future results. Returns presented are calculated gross and net, i.e., before and after deduction of the Trustee Fee. Both gross and net returns are calculated net of fund level expenses, as such expenses are reflected in net unrealized gain (loss). Returns are calculated quarterly on a time-weighted basis using beginning-of-period values and reflects the reinvestment of all income. All returns, with the exception of those for the current quarter, are annualized. Additional information is available in the Investment Memorandum of the BIT or otherwise available upon request. 

**The Net Asset Value or "NAV" is the value of all investments owned, plus cash, receivables, and other assets minus the sum of BIT's debt on wholly-owned investments and BIT's proportionate share of debt on joint venture investments.

 

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BIT News

Worker Appreciation Luncheon Held at The National Apartments in Old City Over 100 union tradespeople were honored at a worker appreciation luncheon hosted by the AFL-CIO Building Investment Trust ("BIT"), the Philadelphia Council AFL-CIO, and the Philadelphia Building & Construction Trades Council.
Construction Moves Above Ground in the Windy City Celebrate the 30th Anniversary of the BIT by viewing the BIT's latest joint venture project along the Chicago River, Wolf Point East
Recent Transactions Take a moment to look at some recent transactions of the BIT. As with all investments by the BIT, new acquisitions have to adhere to the BIT's union labor policies, which can help stimulate union job creation and economic growth in communities across America.