afl-cio investment program presents to regional roundtable on public pension funds and targeted...

AFL-CIO Investment Program

presents to

Regional Roundtable On Public Pension Funds and Targeted Investing

Federal Reserve Bank of BostonBoston, Massachusetts

December 6, 2006

AFL-CIO Investment Program Achievements

AFL-CIOHousing Investment

Trust

• 80,000 Multifamily

Units

• 15,000 Single Family

Units

• $5 Billion in

Commitments

• $8 Billion Present Value

of Real Estate

Investments

• 480 Projects

• 69,712,000 Hours of Union

Work Created

AFL-CIOBuilding Investment

Trust

• 120,000,000 Square

Feet of Development

• $3.5 Billion in

Commitments

• $5.7 Billion Present

Value of Real Estate

Investments

• 158 Projects

• 36,318,000 Hours of Union

Work Created

1

BIT

HIT

$6 Billion

3.88%3.49%

5.03%

6.70%7.11%

5.43%

4.31%3.88%

3.38%

6.42%

4.81%

3.67%

1 Year 3 Year 5 Year 10 Year

HIT Gross HIT Net Lehman Aggregate

HIT TOTAL RETURNS

17.08%

13.19%

10.23%9.29% 9.03%

15.90%

12.08%

8.78%7.91%

9.15%

1 Year 3 Year 5 Year 10 Year SinceInception

BIT Gross Return BIT Net Return

BIT TOTAL RETURNS

Returns as of Sept. 30, 2006, annualized

$3.63 Billion

$2.34 Billion

AFL-CIO Investment ProgramSteady Growth, Strong Performance

2

Our Investors

Building Trades52.5%

Public22.9%

Other24.6%

* As of Sept. 30, 2006

107 12

278

AFL-CIO Housing Investment Trust

Central Pension Fund of the IUOE And Participating Employers

$176.30

Contra Costa County Employees' Retirement Association $167.2

2

New York City Employees' Retirement System $98.81

California Public Employees' Retirement System $97.67

Ohio Public Employees Retirement System $97.19

San Francisco City And County Employees' Retirement System $95.53

SEIU Pension Plans Master Trust $95.16

Transit Employees' Retirement Plan (Washington, DC) $88.82

The Teachers' Retirement System For The City Of New York $87.83

Milwaukee And Vicinity Building Trades United Pension Trust Fund $79.88

% of HIT Assets Held Top 10 Investors$ millions

3

Our Investors

Building Trades66.0%

Public7.4%

Other26.6%

* As of Oct. 1, 2006

302

121

AFL-CIO Building Investment Trust

Bakery and Confectionery Union and Industry Int’l Pension Fund

$200.84

California Public Employees Retirement System$152.4

4

Int’l Brotherhood of Painters and Allied Trades Union & Industry Pension Fund

$141.02

Plumbers and Pipefitters National Pension Fund$122.8

5

Service Employees International Union Master Pension Trust

$113.54

National Roofing Industry Pension Fund $89.25

National Electrical Annuity Plan $67.48

Southern Nevada Culinary & Bartenders Pension Trust $64.97

Local 705 Int’l Brotherhood of Teamsters Pension Trust Fund $55.23

Annuity Plan of the Electrical Industry $51.43

% of BIT Assets Held Top 10 Investors$ millions

4

Historical Investments in the Boston Area

AFL-CIOHousing Investment

Trust

• 1,563 Total Multifamily

Units

• 1,022 Affordable Units

• $164 Million in

Commitments

• $238 Million Total Development Cost

• 16 Projects

• 2.1 Million Hours of Union Work Created

AFL-CIOBuilding Investment

Trust

• 836,000 Square Feet of Development

• 302 Multifamily Units

• 150 Hotel Rooms

• $200 Million in

Commitments

• $451 Million Total Development Cost

• 8 Projects

• 3.4 Million Hours of Union Work Created

5

Total Development Cost$49.9

Million

HIT Construction Financing $27.3

Million

HIT Purchase of Participation Certificate (FHA Risk Sharing Program)

$2.9 Million

Total Units, Including Condos and Rental Apartments 86

Market Rate Units 36

Moderate and Low Income Units 50

Financing Structure – Financing combined a conventional construction loan provided by the HIT and a local lender and a taxable permanent loan structured through MassHousing’s FHA Sec. 542(c) Risk Sharing Loan Program. Financing also included city, state and private funds, including low-income housing tax credits.

A Major Multifamily Development in Boston’s South End

Developed by the Planning Office for Urban Affairs and dedicated in 2003.

Rollins SquareAFL-CIO Housing Investment Trust

6

New York Achieved over $2 billion in total real estate activity9.3 million hours of work for union members

National Apartment Initiative

Achieved $1.6 billion in total real estate activity16.3 million hours of work for union members

Chicago Targeting $750 million in total real estate activity5.6 million hours of work for union members

New Orleans Targeting $1 billion in total real estate activity6.5 million hours of work for union members

Initiatives Focus on Economic Development and

Job Creation in Specific Markets

7

New York City Community Investment Initiative

AFL-CIOHousing Investment

Trust

• 12,737 Total Multifamily

Units

• 11,624 Affordable Units

• 2,526 Homeownership Loans

• $508 Million in Mortgage

Loans

• $273 Million in Multifamily Finance

• $1.2 Billion Estimated Value of Real Estate Investments

• 13 Projects

107

278

Since January 2002

AFL-CIOBuilding Investment

Trust

• 69,000 Square Feet of Development

• $255.4 Million in Commitments

• $821 Billion Estimated Value of Real Estate Investments

• 5 Projects8

Report Card

AFL-CIO Housing Investment Trust

(Debt Instruments)

BIT (Equity Instruments)

On Site Union Construction 100%

Covered FacilitiesUnion Operation: Office 82% Hotels 100% Groceries 100% Parking 86%

Building Operations By Building 92% Total Dollars 72%

• 106 million hours of union work created over the life of the funds

• Currently $2.02 billion in total construction activity underway for both funds

• 223 signatory contracts representing 18 trades governing operations of BIT buildings

Union Labor Policies

HIT (Debt Instruments)

On Site Union Construction 100%

9

• Path of Destruction:

– 200,000 homes destroyed or severely damaged

– 500,000 people displaced

– Area affected the size of Great Britain

Gulf Coast Revitalization Program

10

Gulf Coast Revitalization Program

• Path of Reconstruction:

– $250 Million Multifamily Housing

– $250 Million Single Family Housing

– $100 Million Hospital and Healthcare Finance

– $100 Million Economic Development

– $200 Million Public/Private Leverage

HIT and BIT Activity Will Create $1 Billion in Investments.

11

• Planned unionized facility in New Orleans

• A new strategy for high road economic development

HousingOpportunity

Local Economic

Growth

Training

Jobs

Factory Built Housing

— 1,200 new housing units per year— 150-300 union jobs

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AFL-CIO Investment ProgramHistorical Data

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“What we are doing reflects the mission of the labor movement.

This is what the labor movement is all about.”John SweeneyPresident, AFL-CIONew Orleans, LAJune 14, 2006

AFLCIO Housing Investment Trust

1717 K Street, NW, Suite 707Washington, DC 20036

(202) 331-8055www.aflcio-hit.com

Boston OfficePaul Barrett, Regional Marketing Director

655 Summer St.Boston, MA 02210

(617) 261-4444

AFL-CIO Housing Investment Trust

AFL-CIO Building Investment Trust

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AFL-CIO Building Investment Trust

Mercantile-Safe Deposit & Trust CompanyTrustee

Two Hopkins PlazaBaltimore, MD 21201

(410) 237-5504