AFL-CIO Building Investment Trust

AFL-CIO Building Investment TrustOverview

Youngstown Flats in Seattle, WA

The AFL-CIO Building Investment Trust (BIT)(PNC Bank, Trustee)

The BIT is an open-end core commingled commercial real estatecollective investment fund serving qualified pension funds andretirement plans with union member beneficiaries.

MissionThe primary objective of the BIT is to provide competitive risk-adjusted returns for its pension and retirement plan participantsthrough investments in institutional quality commercial real estate.As a collateral objective, the BIT creates union jobs and BITinvestments promote economic development.

StrategyThe BIT’s long-term strategy is to build and maintain a stable anddiversified pool of assets through the development and acquisitionof core properties in target markets throughout the United States.

ObjectiveThe BIT’s objective is to exceed its industry’s benchmark, the NCREIFFund Index – Open-End Diversified Core Equity (“NFI-ODCE”) (EqualWeight).

Construction on 500 Lake Shore Drive in Chicago, IL

Overview

Overview

Core Equity Real EstateCore real estate can provide income-generating,inflation-hedging total returns that offer anopportunity to help both meet returnrequirements and reduce total portfolio risk. TheBIT fits this mold, while historically maintaining astrong balance sheet, high occupancies andconsistent income streams.

Competitive ReturnsBIT has outperformed the NCREIF Fund Index –Open-End Diversified Core Equity (“NFI-ODCE”)(Equal Weight) for the ten-year period endedSeptember 30, 2016. Annualized gross return sinceBIT inception of 7.99 percent also outperforms theNFI-ODCE Equal Weight Index. The BIT annualizednet return since inception for the period endedSeptember 30, 2016 was 6.91 percent.

Professional Management TeamPNC Bank/PNC Realty Investors, Inc. have acombined team of 30 total professionals dedicatedto managing the BIT. Several senior managers onPRI’s staff have worked with the BIT for more thana decade.

High Quality AssetsThe BIT maintains a diversified portfolio of assetslocated throughout the United States, primarily inmajor cities. The diverse portfolio includes all majorproperty types and is intended to offer highoccupancy rates, long-term leases and a diversifiedtenant base.

Comprehensive Labor PracticesOn-site construction labor is to be provided bysignatory union contractors and subcontractors.When available, maintenance and ongoingoperations of BIT-owned buildings is provided byunion contractors, while certain types of tenantsmust commit to neutrality or “card-check”agreements.

500 Lake Shore Drive in Chicago, IL

PNC Bank, National Association (PNC Bank) – Trustee(indirect subsidiary of The PNC Financial Services Group, Inc.)

(source www.PNC.com)

PNC Realty Investors, Inc. (PRI) – Investment Advisor(indirect subsidiary of The PNC Financial Services Group, Inc.)

• One of the nation’s leading financial services companies. • $369 billion in assets and $46 billion in capital as of September 30, 2016. • $260 billion in deposits and $138 billion in discretionary assets under

management at September 30, 2016.

• Focused exclusively on real estate investment management for the BIT.• PNC Bank/PRI, collectively, have 30 professionals total dedicated to the

operation and management of the BIT account.• Several of its senior managers have been on the BIT account for over 10

years. • Retained and paid by PNC Bank.

AFL-CIO Investment Trust Corporation (ITC) –Marketing, Investor Relations, Labor Relations

• $1.6 billion in capital raised from eligible investors for investment in the BIT.• 10 professional staff with more than 70 combined years in service to the BIT.• Retained and paid by PNC Bank

500 Lake Shore Drive in Chicago, IL

Senior Management

PNC Bank & PNC Realty Investors, Inc. (PRI) Rinse A. Brink Senior Vice President of PNC Bank and Managing Principal of PRI• Over 30 years commercial real estate experience• B.S., Business Administration, University of Arkansas, 1982• MBA, Finance, University of Houston, 1983• Mr. Brink is the portfolio manager of the BIT, responsible for overall

performance of the BIT portfolio. He is also responsible for strategicplanning, asset management, and acquisition and dispositionactivities for the portfolio. He is a member of the PRI InvestmentCommittee.

Clayton M. FlanaganSenior Vice President of PNC Realty Investors• Over 20 years commercial real estate experience• B.A., University of California, Berkeley, 1993• Masters in Urban Planning, University of Virginia, 1998• Mr. Flanagan is the Chief Transactions Officer for BIT with overall

responsibility for sourcing and evaluating new real estateinvestments. He is also a member of the PRI InvestmentCommittee.

AFL-CIO Investment Trust Corporation (ITC)

Michael J. Stotz President and Managing Director, ITC• Over 30 years commercial real estate experience• B.A., Finance, The Catholic University of America, 1981• Mr. Stotz has overall responsibility for marketing, investor

relations and labor relations for the BIT.

William LittleSenior Vice President and Managing Marketing Director, ITC• 9 years commercial real estate experience• B.A., History, George Washington University• M.B.A., Finance, American University• Mr. Little is responsible for the overall business development and

client services for the BIT.

PNC and PRI believe that disciplined assetselection in real estate investing can provideattractive risk-adjusted returns over a fullinvestment cycle, including periods of marketexpansion and contraction.

We focus on properties that:• are located in some of the most liquid

U.S. primary markets• Offer the potential for stable cash flows

over a longer-term horizon• create capital appreciation opportunities

Our goal is to outperform the benchmark forthe BIT (NCREIF Fund Index – Open EndDiversified Core Equity, equal weighted, or NFI-ODCE EW) over the full investment cycle withlower risk.

Investment Philosophy

Bravern Office Commons in Bellevue, WA

A strategic plan determining the top down allocation and composition of the portfolio isprepared by PRI and is approved by the PRI and BIT investment committees. The strategicplan determines product type, geographic focus, and targeted investment returns, whileindividual asset management plans set out leasing objectives, capital investments,financings, and dispositions – all with a rolling three-year time horizon in mind.

Investment StrategyTop Down Allocation

Investment Strategy

Bottom up asset selection plans are developed based on ground-up market intelligence. The process of asset selection is centered on:

Bottom Up Asset Selection

• A Commitment to Major Markets and Large Assets• An Overweight to Multifamily Properties• Where Prudent, We Will “Develop to Core” Up to approximately 20% of the Portfolio

Quarter

(7/1/16-9/30/16)

One-Year Return (10/1/15-9/30/16)

Three-Year Return (10/1/13-9/30/16)

Five-Year Return (10/1/11-9/30/16)

Ten-Year Return (10/1/06-9/30/16)

Since BIT Inception

(7/1/88-9/30/16)

BIT Gross 1.92% 9.56% 12.39% 12.22% 6.11% 7.99%

BIT Net 1.69% 8.57% 11.36% 11.17% 5.10% 6.91%

NFI-ODCE Equal-Weight Gross

2.18% 10.62% 12.59% 12.40% 5.79% 7.01%

0%

2%

4%

6%

8%

10%

12%

14%

16%Quarter 1-year 3-year 5-year 10-year

Sinceinception

BIT Gross

BIT Net

NFI-ODCEEqual-WeightGrossWorker at Riverside Center

in New York, NY

Performance is for periods ended 9/30/16.Past performance does not guarantee future results. Given the inherent uncertainties and risks associated with projections or other forward looking statements, actual events, results or performance may differ from those reflected or contemplated.

The AFL-CIO Building Investment Trust (“BIT”) reported gross and net returns of 1.92% and1.69%, respectively for the third quarter of 2016. Gross and net returns for the one-yearperiod ended September 30, 2016 were 9.56% and 8.57%, respectively.

BIT net property valuation increases totaled $41 million for the third quarter. Office assetsprovided approximately 44% of total fund appreciation for the quarter. On a portfolio basis,weighted average discount rates were two basis points lower, and weighted averageterminal cap rates were unchanged in comparison to the second quarter. As of the end ofthe third quarter, commercial portfolio occupancy was 93.7%, down slightly from the priorquarter. Occupancy for the stabilized multifamily portfolio decreased 70 basis points fromthe second quarter 2016, to 94.9%.

During the third quarter 2016, the BIT, along with a joint venture partner, committed to thedevelopment of Wolf Point East, a proposed 707 unit multifamily tower in downtownChicago. In August the BIT closed on the acquisition of Louden Lane, a 168,000 sf industrialproperty in Los Angeles, California.

The BIT sold the Wilsonville Business Center in Portland, Oregon in early July, and in earlyOctober sold two of the five buildings comprising the Tysons East office investment in TysonsCorner, Virginia.

Active construction continued on Culver City Office, Los Feliz, and Encore at Forest Parkduring the third quarter. Culver City Office is a 281,400 sf office development in Culver City,California; Los Feliz is a 220-unit multifamily development in Glendale, California; and Encoreat Forest Park is a 247-unit multifamily development in St. Louis, Missouri. Construction isnearly complete and leasing is underway at Riverside Center, a 616-unit multifamilydevelopment in New York City. T-3, a 221,500 sf office development in Minneapolis, is nowsubstantially complete and is in lease up.

Fremont Office in San Francisco, CA

Portfolio Overview

Gross Asset Value $5.808 billion

Net Asset Value $4.608 billion

Number of Properties 61

Total Square Feet 11.7 million

Multifamily Units 7,866

Occupancy, Commercial 93.7%

Occupancy, Multifamily 94.9%

Portfolio Leverage 20.7%

Cash 2.1%

As of September 30, 2016

Fremont Office in San Francisco, CA

Riverside CenterNew York, NY

• LEED-certified multi-family site under development in Manhattan'sUpper West Side, within easy walking distance of subway stationsand Central Park

• Class A amenities package will include walking paths, an Olympic-sized swimming pool, a children’s playground, and exercise facility

• Property is scheduled for completion in Fall 2016 and will include616 rental units in a 43 story tower

• Lower level features will include 25,000 square feet of retail and a110,000 square foot public school on the first five floors of thefacility

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Wolf PointChicago, IL

• Multi-family site in downtown Chicago, centrally located withinwalking distance of transportation hubs, employment centers inthe Loop, restaurants, and entertainment options

• Class A amenities package includes fitness center, resident lounge,indoor sauna and spa, integrated Wi-Fi, business center, andtheatre room

• Unit improvements includes stainless steel appliances, floor toceiling windows, washer/dryers in all unites, and balconies in 60%of the units

• Property was completed in early 2016 and includes 509 rental unitsin 46 story tower

• Multi-family site in downtown San Jose, within walkingdistance of area museums, downtown restaurants, and theHP Pavilion, home to the NHL’s San Jose Sharks

• Class A amenities package includes a fitness center, mediaroom, outdoor pet area and barbeque stations, conferencefacilities, and business center

• Unit improvements include solid surface countertops, 9 footceilings, and patios or decks in most units

• Property opened for rental in late 2015, and includes 347rental units and street level retail in a 21 story tower

San Pedro Square ApartmentsSan Jose, CA

T-3Minneapolis, MN

• Office site in the North Loop District downtownMinneapolis within walking distance of publictransportation options and easy access to local highways

• Seven-story, 221,500 square foot office building of heavytimber construction over a concrete foundation

• Amenities will include 12 foot ceilings with exposedwood beams, fitness center, high roof top terrace withoutdoor grills, community conference center, and acovered bike pavilion

• Substantial completion achieved in September 2016

Bravern Office CommonsBellevue, WA

• 750,000 square foot office property comprised of twotowers

• 100% occupied by Microsoft, a corporation with a AAAcredit rating by Standard & Poors

• Towers are connected to a 309,000 square foot retailpodium, offering a variety of easily accessibleshopping and dining options

• Property is located one block from the BellevueTransit Center and enjoys easy access to major roadsnetworks in the Seattle area

333 West WackerChicago, IL

• Iconic, 868,000 square foot office building in downtown Chicago

• 95% leased to multiple tenants with over 8 years of average lease termremaining

• Glass and steel frame 36 story building with recent renovations to thelobby, elevators, fitness center, restrooms, tenant lounge, andconference center

• Transit oriented location with convenient access to several modes oftransportation, including Ogilvie Transportation Center (commuter train),and all 7 Chicago Transit Authority “L” lines

• Completion of the Chicago Riverwalk project in 2016 will provide acontinuous pedestrian pathway from the property to Lake Michigan

Important NoticeThe AFL-CIO Building Investment Trust (the “BIT” or the “Trust”) is a bank collective trust for which PNC Bank, National Association (“PNC Bank”) is the trustee. PNC Bank is a subsidiary of The PNC Financial Services Group, Inc. (“PNC”). PNC may use the service mark “PNC Institutional Asset Management” in connection with certain activities of the Trust. PNC Bank has retained PNC Realty Investors, Inc. (“PRI”) to provide real estate investment advisory and management services, and the AFL-CIO Investment Trust Corporation (the “ITC”) to provide marketing and investor and labor relation services, in connection with the BIT. PNC Bank licenses the ability to use the “AFL-CIO” name in the name of the Trust and in connection with the activities of the Trust.

The BIT was managed by a trustee unaffiliated with PNC Bank from July 1, 1988 through December 31, 1991, and PNC Bank is relying on data provided by this prior trustee for this time frame.

A participant’s investment in the BIT are not bank deposits, nor are they backed or guaranteed by PNC or any of its affiliates, and are not issued by, insured by, guaranteed by, or obligations of the FDIC, the Federal Reserve Board, or any government agency. Investment in the BIT involves risk. Investment return and principal value of an investment in the BIT will fluctuate so that a participant’s investment, when redeemed, may be worth more or less than the original investment. A participant’s redemption of its investment or units in the Trust, or a portion thereof, may be delayed by Trustee for one year (or longer if permissible under applicable law) from the date of the request for such redemption.

The BIT generally invests directly or indirectly in commercial real estate through equity investment and occasionally through the provision of financing. Equity investments are subject to risks inherent in or customarily associated with the ownership of income-producing real estate, and real estate financing involves risks inherent in or customarily associated with the risks of financing secured directly or indirectly by income producing real estate. Due to such inherent risks, investment returns can be expected to fluctuate and operating cash flow and the Trust's ability to make redemptions or distributions could be adversely affected. Moreover, due to the nature of real estate, investments may be illiquid. Such illiquidity may affect the Trust’s operating cash flow, which, in turn, may delay the ability to satisfy redemption requests. Additionally, the BIT or its investments may obtain financing. Such investments are subject to the inherent risks arising from the use of financing, and such risks may increase volatility of a fund’s performance and may increase the fund’s losses.

The information contained in this material is not intended to be a comprehensive description of any investment product or capability. Neither the information herein, nor any opinion expressed herein, constitutes an offer to buy or sell, nor a recommendation to buy or sell, any security or financial instrument, including an interest in the BIT, and is not intended to serve as a primary basis for a decision with regard to whether to invest in any security or financial instrument, including an interest in the BIT. Investors in, or potential investors of the BIT should consider carefully the BIT’s investment objectives, risks and expenses before investing therein. Investors should consult their own advisors and investment professionals to evaluate the merits and risks of investment.

Except as otherwise disclosed, the materials, representations and opinions presented herein are those of PNC Bank, and are of a general nature and do not constitute the provision by PNC of investment, legal, tax, or accounting advice to any person. Opinions expressed herein are subject to change without notice. The information was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy. The BIT was managed by a trustee unaffiliated with PNC Bank from July 1, 1988 through December 31, 1991, and PNC Bank is relying on data provided by this prior trustee for this time frame

Information contained in the material above herein regarding or providing past performance should not be considered representative, and is no guarantee, of future performance or results. Forward looking statements contained in the material above involve certain assumptions, including but not limited to the performance of the real estate market, which could cause actual outcomes and results to differ materially from the views expressed in the material above.

For more information regarding the investments, risks, and expenses of the BIT, copies of the latest investment memorandum and the applicable plan documents for the BIT, including the trust agreement and a form of participation agreement, may be obtained by contacting 855-530-0640 or BITTrustOfficer@pnc.com. Please read the investment memorandum carefully before investing in the BIT.

PNC does not provide legal, tax or accounting advice and does not provide services in any jurisdiction in which it is not authorized to conduct business. PNC Bank is not registered as a municipal advisor under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Not FDIC Insured. No Bank Guarantee. May Lose Value. For Institutional Use Only- Not for Use with Retail Investors.

© 2017 The PNC Financial Services Group, Inc. All rights reserved.

Contact Information

AFL-CIO Investment Trust Corporation(Marketing, Investor Relations, & Labor Relations)

815 Connecticut Avenue, NWSuite 320Washington, DC 20006Phone: 202-898-9190www.aflcio-bit.com

Gallery Place in Washington, D.C.