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
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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
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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.
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• 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