BIT Beats Industry Benchmark
The AFL-CIO Building Investment Trust (BIT) is off to a strong start in 2012, outperforming its benchmark, the NCREIF Fund Index - Open-End Diversified Core Equity - Equal Weight (NFI-ODCE-EW) by 104 basis points on a gross basis for the first quarter. The BIT's gross and net returns for the quarter were 3.86% and 3.61%, respectively, while the fund continued to outperform the NFI-ODCE-EW over the long-term. For the periods ended March 31, 2012, the BIT's gross returns exceeded the NFI-ODCE-EW by 61, 26, and 118 basis points on the one-year, three-year, and five-year basis, respectively.
"It's this type of performance that demonstrates the BIT's ability to provide competitive risk-adjusted returns for our investors while also maintaining one of the most comprehensive labor policies in the real estate industry," says Mike Stotz, President and Managing Director of the AFL-CIO Investment Trust Corporation.
Over the past 18 months, the BIT has accelerated its investment activity, committing to 5 new multifamily development projects with an estimated combined total development cost of $429 million. Recent additions tot he BIT portfolio have included Youngstown Flats in Seattle, Washington; 500 Lake Shore Drive in Chicago, Illinois; Flux Apartments in Minneapolis, Minnesota; and the Tyson's Corner Office Portfolio in McLean, Virginia.
"We feel the BIT is well positioned with a healthy balance sheet and a strong pipeline of attractive investment opportunities," says Kevin McCarthy, President of PNC Realty Investors (PRI), investment advisor to the BIT. "With the continued support of our investors, we believe we can continue to generate solid returns by investing in new development projects."