The AFL-CIO Building Investment Trust began operations July 1, 1988, as an open-end, commingled group trust.  Originally investing only 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 a fund investing primarily in equity real estate assets.  

The BIT's principal objectives in making real estate investments is to generate competitive risk-adjusted returns by investing in real estate investments that have the potential to offer current cash return, long-term capital appreciation, or both.

During 31 years of operation, the BIT has established a solid track record of competitive risk-adjusted returns, with an annualized gross return since inception of 7.77%.

The AFL-CIO Building Investment Trust (“BIT”) reported gross and net returns of 1.36% and 1.13%, respectively for the fourth quarter of 2019. Gross and net returns for the one-year period ended December 31, 2019 were 4.05% and 3.14%, respectively.

Adobe Flash Player Required

Get Adobe Flash player

*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.  Gross returns are calculated net of fund level expenses, except for Trustee fees.  Net returns are calculated net of all fund expenses.  Returns are calculated quarterly on a time-weighted basis using beginning-of-period values and reflect the reinvestment of all income.  All returns, with the exception of those for the current quarter, are annualized.  Income is the dividends, interest, and rents net of operating expense from BIT investments and other sources (except realized and unrealized losses from investments).  Net appreciation is the realized and unrealized gains and losses from BIT real estate investments calculated based on fair values determined utilizing independent real estate appraisals.  Each year, the consolidated financial statements of the BIT are audited by an independent firm, and financial statements based upon such audit are delivered to each Participant.  The fair market value of each real estate investment as reflected in such audited financial statements is derived using the same information and methodology as discussed above.  Additional information is available in the Investment Memorandum of the BIT or otherwise available upon request.

Effective, April 1, 2017, performance of the BIT is measured against the NCREIF Fund Index–Open End Diversified Core Equity (“NFI-ODCE”) on a market-weighted basis. NFI-ODCE is a capitalization-weighted, time-weighted, gross of fee return index of open-end commingled funds pursuing a core investment strategy. The return is time weighted. The market-weighted NFI-ODCE return calculation considers size of the funds in the index based on net investment capital. Through March 31, 2017 the BIT was measured against NFI-ODCE on an equal-weighted basis. The equally-weighted NFI-ODCE return represents the index return calculated without consideration to size of each of the funds in the index. The NFI-ODCE performance for all periods is shown on the market-weighted basis for comparable purposes.

**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.

†Transactions listed here are not a complete list of transactions but contain a sampling of transactions in the portfolio. A complete list of transactions may be provided on request.