SEC Info  
  Home     Search     My Interests     Help     Sign In     Please Sign In  

Tiaa Real Estate Account · 10-Q · For 3/31/08

Filed On 5/15/08 5:31pm ET   ·   SEC File 33-92990   ·   Accession Number 930413-8-3224

  in   Show  and 
  As Of               Filer                 Filing     As/For/On Docs:Pgs              Issuer               Agent

 5/15/08  Tiaa Real Estate Account          10-Q        3/31/08    3:137                                    Command Financial...Corp

Quarterly Report   ·   Form 10-Q
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-Q        Quarterly Report                                    HTML    988K 
 2: EX-31       Certification per Sarbanes-Oxley Act (Section 302)  HTML     12K 
 3: EX-32       Certification per Sarbanes-Oxley Act (Section 906)  HTML      6K 


10-Q   ·   Quarterly Report
Document Table of Contents

Page (sequential) | (alphabetic) Top
 
11st Page   -   Filing Submission
3Statements of Assets and Liabilities
4Statements of Operations
5Statements of Changes in Net Assets
6Statements of Cash Flows
7Notes to the Financial Statements
18Statement of Investments

This is an EDGAR HTML document rendered as filed.  [ Alternative Formats ]

10-Q1st "Page" of 62TOCTopPreviousNextBottomJust 1st
 
Sponsored Ads...


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

 

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2008

 

OR

 

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________________ to ________________________

Commission file number: 33-92990; 333-149862

TIAA REAL ESTATE ACCOUNT
(Exact name of registrant as specified in its charter)

NEW YORK
(State or other jurisdiction of
incorporation or organization)

NOT APPLICABLE
(I.R.S. Employer Identification No.)

C/O TEACHERS INSURANCE AND
ANNUITY ASSOCIATION OF AMERICA
730 THIRD AVENUE
NEW YORK, NEW YORK 10017-3206
(Address of principal executive offices, including zip code)

Registrant’s telephone number, including area code: (212) 490-9000

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

 

 

 

YES x

NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or smaller reporting company. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

 

 

 

Large accelerated filer o

 

Accelerated filer o

 

 

 

Non-accelerated filer x

 

Smaller Reporting Company o

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

 

 

 

YES o

NO x




10-Q2nd "Page" of 62TOC1stPreviousNextBottomJust 2nd

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS.

INDEX TO UNAUDITED FINANCIAL STATEMENTS
TIAA REAL ESTATE ACCOUNT
MARCH 31, 2008

 

 

 

 

 

Page

 

 


 

 

 

Statements of Assets and Liabilities

 

3

 

 

 

Statements of Operations

 

4

 

 

 

Statements of Changes in Net Assets

 

5

 

 

 

Statements of Cash Flows

 

6

 

 

 

Notes to the Financial Statements

 

7

 

 

 

Statement of Investments

 

18

2


10-Q3rd "Page" of 62TOC1stPreviousNextBottomJust 3rd

TIAA REAL ESTATE ACCOUNT
 STATEMENTS OF ASSETS AND LIABILITIES
(In thousands, except per accumulation unit amounts)

 

 

 

 

 

 

 

 

 

 

March 31,
2008

 

December 31,
2007

 

 

 


 


 

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Investments, at value:

 

 

 

 

 

 

 

Real estate properties
(cost: $9,888,575 and $9,804,489)

 

$

12,110,602

 

$

11,983,715

 

Real estate joint ventures and limited partnerships
(cost: $2,294,816 and $2,260,919)

 

 

3,115,908

 

 

3,158,870

 

Marketable securities:

 

 

 

 

 

 

 

Real estate related
(cost: $442,958 and $439,154)

 

 

431,056

 

 

426,630

 

Other
(cost: $3,147,834 and $3,371,896)

 

 

3,148,714

 

 

3,371,866

 

Mortgage loan receivable
    (cost: $75,000 and $75,000)

 

 

73,106

 

 

72,520

 

 

 



 



 

Total investments
(cost: $15,849,183 and $15,951,458)

 

 

18,879,386

 

 

19,013,601

 

Cash

 

 

1,312

 

 

6,144

 

Due from investment advisor

 

 

 

 

11,196

 

Other

 

 

212,214

 

 

201,826

 

 

 



 



 

TOTAL ASSETS

 

 

19,092,912

 

 

19,232,767

 

 

 



 



 

LIABILITIES

 

 

 

 

 

 

 

Mortgage loans payable—Note 5

 

 

1,426,620

 

 

1,392,093

 

(principal outstanding: $1,427,261 and $1,427,857)

 

 

 

 

 

 

 

Payable for securities transactions

 

 

1,473

 

 

866

 

Due to investment advisor

 

 

25,285

 

 

 

Accrued real estate property level expenses

 

 

163,606

 

 

154,639

 

Security deposits held

 

 

24,593

 

 

24,632

 

 

 



 



 

TOTAL LIABILITIES

 

 

1,641,577

 

 

1,572,230

 

 

 



 



 

NET ASSETS

 

 

 

 

 

 

 

Accumulation Fund

 

 

16,944,927

 

 

17,160,703

 

Annuity Fund

 

 

506,408

 

 

499,834

 

 

 



 



 

TOTAL NET ASSETS

 

$

17,451,335

 

$

17,660,537

 

 

 



 



 

NUMBER OF ACCUMULATION UNITS
OUTSTANDING
— Notes 6 and 7

 

 

54,037

 

 

55,106

 

 

 



 



 

NET ASSET VALUE, PER ACCUMULATION UNIT — Note 6

 

$

313.58

 

$

311.41

 

 

 



 



 

See notes to the financial statements.

3


10-Q4th "Page" of 62TOC1stPreviousNextBottomJust 4th

TIAA REAL ESTATE ACCOUNT
 STATEMENTS OF OPERATIONS
(In thousands)
(Unaudited)

 

 

 

 

 

 

 

 

 

 

For the Three Months
Ended March 31,

 

 

 


 

 

 

2008

 

2007

 

 

 


 


 

INVESTMENT INCOME

 

 

 

 

 

 

 

Real estate income, net:

 

 

 

 

 

 

 

Rental income

 

$

242,841

 

$

245,537

 

 

 



 



 

Real estate property level expenses and taxes:

 

 

 

 

 

 

 

Operating expenses

 

 

63,556

 

 

66,566

 

Real estate taxes

 

 

33,328

 

 

31,227

 

Interest expense

 

 

20,845

 

 

21,577

 

 

 



 



 

Total real estate property level expenses and taxes

 

 

117,729

 

 

119,370

 

 

 



 



 

Real estate income, net

 

 

125,112

 

 

126,167

 

Income from real estate joint ventures and limited partnerships

 

 

30,891

 

 

19,540

 

Interest

 

 

34,451

 

 

25,906

 

Dividends

 

 

3,841

 

 

2,605

 

 

 



 



 

TOTAL INCOME

 

 

194,295

 

 

174,218

 

 

 



 



 

Expenses—Note 2:

 

 

 

 

 

 

 

Investment advisory charges

 

 

12,432

 

 

13,143

 

Administrative and distribution charges

 

 

22,061

 

 

15,458

 

Mortality and expense risk charges

 

 

2,194

 

 

1,798

 

Liquidity guarantee charges

 

 

7,021

 

 

1,098

 

 

 



 



 

TOTAL EXPENSES

 

 

43,708

 

 

31,497

 

 

 



 



 

INVESTMENT INCOME, NET

 

 

150,587

 

 

142,721

 

 

 



 



 

 

 

 

 

 

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND MORTGAGE LOANS PAYABLE

 

 

 

 

 

 

 

Net realized gain (loss) on investments:

 

 

 

 

 

 

 

Real estate properties

 

 

148

 

 

7,162

 

Real estate joint ventures and limited partnerships

 

 

(17

)

 

(611

)

Marketable securities

 

 

1,194

 

 

20,378

 

 

 



 



 

Total net realized gain on investments

 

 

1,325

 

 

26,929

 

 

 



 



 

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

 

 

 

Real estate properties

 

 

42,801

 

 

273,845

 

Real estate joint ventures and limited partnerships

 

 

(43,703

)

 

111,993

 

Marketable securities

 

 

4,789

 

 

2,798

 

Mortgage loan receivable

 

 

586

 

 

(167

)

Mortgage loans payable

 

 

(34,710

)

 

21,366

 

 

 



 



 

Net change in unrealized (depreciation) appreciation on
investments and mortgage loans payable

 

 

(30,237

)

 

409,835

 

 

 



 



 

NET REALIZED AND UNREALIZED
(LOSS) GAIN ON INVESTMENTS AND
MORTGAGE LOANS PAYABLE

 

 

(28,912

)

 

436,764

 

 

 



 



 

NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS

 

$

121,675

 

$

579,485

 

 

 



 



 

See notes to the financial statements.

4


10-Q5th "Page" of 62TOC1stPreviousNextBottomJust 5th

TIAA REAL ESTATE ACCOUNT
 STATEMENTS OF CHANGES IN NET ASSETS
(In thousands)
(Unaudited)

 

 

 

 

 

 

 

 

 

 

For the Three Months
Ended March 31,

 

 

 


 

 

 

2008

 

2007

 

 

 


 


 

FROM OPERATIONS

 

 

 

 

 

 

 

Investment income, net

 

$

150,587

 

$

142,721

 

Net realized gain on investments

 

 

1,325

 

 

26,929

 

Net change in unrealized (depreciation) appreciation on investments and mortgage loans payable

 

 

(30,237

)

 

409,835

 

 

 



 



 

NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS

 

 

121,675

 

 

579,485

 

 

 



 



 

FROM PARTICIPANT TRANSACTIONS

 

 

 

 

 

 

 

Premiums

 

 

285,039

 

 

300,544

 

Net transfers (to) from TIAA

 

 

(124,446

)

 

57,376

 

Net transfers (to) from CREF Accounts

 

 

(288,306

)

 

287,805

 

Net transfers to TIAA-CREF Institutional Mutual Funds

 

 

(30,851

)

 

(22,093

)

Annuity and other periodic payments

 

 

(24,950

)

 

(18,963

)

Withdrawals and death benefits

 

 

(147,363

)

 

(129,655

)

 

 



 



 

NET (DECREASE) INCREASE IN NET ASSETS RESULTING
FROM PARTICIPANT TRANSACTIONS

 

 

(330,877

)

 

475,014

 

 

 



 



 

NET (DECREASE) INCREASE IN NET ASSETS

 

 

(209,202

)

 

1,054,499

 

NET ASSETS

 

 

 

 

 

 

 

Beginning of period

 

 

17,660,537

 

 

14,132,693

 

 

 



 



 

End of period

 

$

17,451,335

 

$

15,187,192

 

 

 



 



 

See notes to the financial statements.

5


10-Q6th "Page" of 62TOC1stPreviousNextBottomJust 6th

TIAA REAL ESTATE ACCOUNT
 STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 

 

 

 

 

 

 

 

 

 

For the Three Months
Ended March 31,

 

 

 


 

 

 

2008

 

2007

 

 

 


 


 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

121,675

 

$

579,485

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

Purchase of real estate properties

 

 

(46,240

)

 

(338,637

)

Amortization of discount on debt

 

 

 

 

130

 

Capital improvements on real estate properties

 

 

(37,846

)

 

(37,141

)

Proceeds from sale of real estate properties

 

 

148

 

 

22,000

 

Decrease (increase) in other investments

 

 

223,951

 

 

(251,484

)

(Increase) decrease in other assets

 

 

(10,388

)

 

4,351

 

Increase in accrued real estate property level expenses and taxes

 

 

8,967

 

 

3,526

 

(Decrease) increase in security deposits held

 

 

(39

)

 

403

 

Increase (decrease) in payable for securities transactions

 

 

607

 

 

(1,219

)

Increase in due to (from) investment advisor

 

 

38,189

 

 

(17,019

)

Net realized gain on investments

 

 

(1,325

)

 

(26,929

)

Unrealized loss (gain) on investments and mortgage loans payable

 

 

30,237

 

 

(409,835

)

 

 



 



 

NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES

 

 

327,936

 

 

(472,369

)

 

 



 



 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

Principal payments of mortgage loans payable

 

 

(183

)

 

(140

)

Premiums

 

 

283,331

 

 

300,544

 

Net transfers (to) from TIAA

 

 

(124,446

)

 

57,376

 

Net transfers (to) from CREF Accounts

 

 

(288,306

)

 

287,805

 

Net transfers to TIAA-CREF Institutional Mutual Funds

 

 

(30,851

)

 

(22,093

)

Annuity and other periodic payments

 

 

(24,950

)

 

(18,963

)

Withdrawals and death benefits

 

 

(147,363

)

 

(129,655

)

 

 



 



 

NET CASH (USED IN) PROVIDED BY
FINANCING ACTIVITIES

 

 

(332,768

)

 

474,874

 

 

 



 



 

NET (DECREASE) INCREASE IN CASH

 

 

(4,832

)

 

2,505

 

CASH

 

 

 

 

 

 

 

Beginning of period

 

 

6,144

 

 

3,585

 

 

 



 



 

End of period

 

$

1,312

 

$

6,090

 

 

 



 



 

SUPPLEMENTAL DISCLOSURES:

 

 

 

 

 

 

 

Cash paid for interest

 

$

20,897

 

$

20,631

 

 

 



 



 

See notes to the financial statements.

6


10-Q7th "Page" of 62TOC1stPreviousNextBottomJust 7th

TIAA REAL ESTATE ACCOUNT
 NOTES TO THE FINANCIAL STATEMENTS

Note 1 — Organization and Significant Accounting Policies

Business: The TIAA Real Estate Account (“Account”) is a segregated investment account of Teachers Insurance and Annuity Association of America (“TIAA”) and was established by resolution of TIAA’s Board of Trustees on February 22, 1995, under the insurance laws of the State of New York, for the purpose of funding variable annuity contracts issued by TIAA. The investment objective of the Account is a favorable long-term rate of return primarily through rental income and capital appreciation from real estate investments owned by the Account. The Account holds real estate properties directly and through wholly-owned subsidiaries. The Account also holds interests in real estate joint ventures and limited partnerships in which the Account does not hold a controlling interest; as such, such interests are not consolidated for financial statement purposes. The Account also invests in mortgage loans receivable collateralized by commercial real estate properties. The Account also invests in publicly-traded securities and other instruments to maintain adequate liquidity levels for operating expenses, capital expenditures and benefit payments.

The financial statements were prepared in accordance with accounting principles generally accepted in the United States of America which may require the use of estimates made by management. Actual results may vary from those estimates. The following is a summary of the significant accounting policies of the Account.

Basis of Presentation: The accompanying financial statements include the Account and those subsidiaries wholly-owned by TIAA for the benefit of the Account. All significant intercompany accounts and transactions have been eliminated in consolidation.

Accounting Pronouncements Adopted: In September 2006, FASB issued Statement No. 157, “Fair Value Measurements.” This Statement defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles in the United States, and requires additional disclosures about fair value measurements. This Statement does not require any new fair value measurements, but the application of this Statement could change current practices in determining fair value. This Statement is effective as of January 1, 2008 for the Account. The adoption of Statement No. 157 did not have a material impact on the Account’s financial position or results of operations.

In February 2007, FASB issued Statement No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities.” This Statement permits entities to choose to measure financial instruments and certain other items at fair value and is expected to expand the use of fair value measurement when warranted. The Account adopted Statement No. 159 on January 1, 2008 and plans to report all existing and future mortgage loans payable at fair value using this Statement. Historically, the Account recorded mortgage loans payable at fair value. The adoption of Statement 159 did not have a material impact on the Account’s financial position or results of operations.

Valuation Hierarchy: In accordance with FASB Statement No.157, “Fair Value Measurements”, the Account groups financial assets and certain financial liabilities measured at fair value into three levels, based on the markets in which the assets and liabilities are traded, if any, and the observability of the assumptions used to determine fair value. These levels are:

Level 1 — Valuations using unadjusted quoted prices for assets traded in active exchange markets, such as stocks listed on the New York Stock Exchange. Level 1 includes Real Estate related Marketable Securities.

Level 2 — Valuations for assets and liabilities traded in less active, dealer or broker markets. Fair values are primarily obtained from third party pricing services for identical or comparable assets or liabilities. Level 2 inputs for fair value measurements are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include:

 

 

 

a. Quoted prices for similar assets or liabilities in active markets;

7


10-Q8th "Page" of 62TOC1stPreviousNextBottomJust 8th

 

 

 

b. Quoted prices for identical or similar assets or liabilities in markets that are not active (that is, markets in which there are few transactions for the asset (or liability), the prices are not current, price quotations vary substantially either over time or among market makers (for example, some brokered markets), or in which little information is released publicly);

 

 

 

c. Inputs other than quoted prices that are observable within the market for the asset (or liability) (for example, interest rates and yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates that are observable at commonly quoted intervals);

 

 

 

d. Inputs that are derived principally from or corroborated by observable market data by correlation or other means (for example, market-corroborated inputs).

Examples of securities which may be held by the Account and included in Level 2 include Certificates of Deposit, Commercial Paper, Government Agency Bonds and Variable Notes.

Level 3 — Valuations for assets and liabilities that are derived from other valuation methodologies, including pricing models, discounted cash flow models and similar techniques, and are not based on market, exchange, dealer, or broker-traded transactions. Level 3 valuations incorporate certain assumptions and projections that are not observable in the market and significant professional judgment in determining the fair value assigned to such assets or liabilities.

An investment’s categorization within the valuation hierarchy described above is based upon the lowest level of input that is significant to the fair value measurement.

The Account’s investments and mortgage loans payable are stated at fair value. Effective January 1, 2008, in connection with the adoption of SFAS No. 159, “The Fair Value Option for Financial Assets and Liabilities”, the Account plans to report all existing and future mortgage loans payable and will continue to report these payables at fair value. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon vendor-provided, evaluated prices or internally-developed models that primarily use market-based or independently-sourced market data, including interest rate yield curves, market spreads, and currency rates. Valuation adjustments may be made to reflect credit quality, the Account’s creditworthiness, liquidity, and other observable and unobservable data that are applied consistently over time.

The methods described above are considered to produce fair values that represent a good faith estimate of what an unaffiliated buyer in the market place would pay to purchase the asset or would receive to transfer the liability. Since fair value calculations involve significant professional judgment in the application of both observable and unobservable attributes, actual realizable values or future fair values may differ from amounts reported.

The adoption of SFAS 157 and 159 did not have a material impact upon the Account’s financial position or its results of operations.

The following is a description of the valuation methodologies used for investments measured at fair value.

Valuation of Real Estate Properties: Investments in real estate properties are stated at fair value, as determined in accordance with procedures approved by the Investment Committee of the TIAA Board of Trustees and in accordance with the responsibilities of the Board as a whole; accordingly, the Account does not record depreciation. Fair value for real estate properties is defined as the most probable price for which a property will sell in a competitive market under all conditions requisite to a fair sale. Determination of fair value involves judgment because the actual market value of real estate can be determined only by negotiation between the parties in a sales transaction. Real estate properties owned by the Account are initially valued based on an independent appraisal at the time of the closing of the purchase, which may result in a potential unrealized gain or loss reflecting the difference between an investment’s fair value (i.e., exit price) and its cost basis (which is inclusive of transaction costs).

8


10-Q9th "Page" of 62TOC1stPreviousNextBottomJust 9th

Further, management reserves the right to order an appraisal and/or conduct another valuation outside of the normal quarterly process when facts or circumstances at a specific property change.

Subsequently, the properties are valued on a quarterly cycle with an independent third party appraisal completed for each real estate property at least once a year. An independent fiduciary, Real Estate Research Corporation has been appointed by a special subcommittee of TIAA’s Board of Trustees. The Account’s independent fiduciary, Real Estate Research Corporation, must approve all independent appraisers used by the Account. TIAA’s appraisal staff performs the other quarterly valuations for each real estate property and updates the property value as appropriate. The appraisals are performed in accordance with Uniform Standards of Professional Appraisal Practices (USPAP), the real estate appraisal industry standards created by The Appraisal Foundation. Real estate appraisals are estimates of property values based on a professional’s opinion.

The independent fiduciary can also require additional appraisals if a property’s value has changed materially and such change is not reflected in the quarterly valuation review, or otherwise to ensure that the Account is valued appropriately. The independent fiduciary must also approve any valuation change where a property’s value changed by more than 6% from the most recent independent annual appraisal, or if the value of the Account would change by more than 4% within any calendar quarter or more than 2% since the prior month. When a real estate property is subject to a mortgage, the mortgage is valued independently of the property and its fair value is reported separately. The independent fiduciary reviews and approves mortgage valuation adjustments which exceed certain prescribed limits before such adjustments are recorded by the Account. The Account continues to use the revised value for each real estate property and mortgage loan payable to calculate the Account’s daily net asset value until the next valuation review or appraisal. The Account’s real estate properties are generally classified within level 3 of the valuation hierarchy.

Valuation of Real Estate Joint Ventures and Limited Partnerships: Real estate joint ventures and certain limited partnerships are stated at the fair value of the Account’s ownership interests of the underlying entities. The Account’s ownership interests are valued based on the fair value of the underlying real estate, any related mortgage loans payable, and other factors, such as ownership percentage, ownership rights, buy/sell agreements, distribution provisions and capital call obligations. Upon the disposition of all real estate investments by an investee entity, the Account will continue to state its equity in the remaining net assets of the investee entity during the wind down period, if any, that occurs prior to the dissolution of the investee entity. The Account’s real estate joint ventures and limited partnerships are generally classified within level 3 of the valuation hierarchy.

Valuation of Marketable Securities: Equity securities listed or traded on any national market or exchange are valued at the last sale price as of the close of the principal securities exchange on which such securities are traded or, if there is no sale, at the mean of the last bid and asked prices on such exchange, exclusive of transaction costs. Such marketable securities are classified within level 1 of the valuation hierarchy.

Debt securities, other than money market instruments, are generally valued at the most recent bid price or the equivalent quoted yield for such securities (or those of comparable maturity, quality and type). Money market instruments, with maturities of one year or less, are valued in the same manner as debt securities or derived from a pricing matrix. Debt securities are generally classified within level 2 of the valuation hierarchy.

Certain limited partnership interests for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Investment Committee of the TIAA Board of Trustees and in accordance with the responsibilities of the Board as a whole. These investments are generally classified within level 3 of the valuation hierarchy.

Valuation of Mortgage Loan Receivable: The mortgage loan receivable is stated at fair value. The mortgage loan receivable is valued quarterly based on market factors, such as market interest rates and spreads for comparable loans, and the performance of the underlying collateral. The Account’s mortgage loan receivable is classified within level 3 of the valuation hierarchy.

9


10-Q10th "Page" of 62TOC1stPreviousNextBottomJust 10th

Valuation of Mortgage Loans Payable: Mortgage loans payable are stated at fair value. The estimated fair value of mortgage loans payable is based on the amount at which the liability could be transferred exclusive of transaction costs. The Account’s mortgage loans payable are generally classified within level 3 of the valuation hierarchy. Interest expense for mortgage loans payable is recorded on the accrual basis taking into account the outstanding principal and contractual interest rates.

Foreign currency transactions and translation: Portfolio investments and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of securities, income receipts and expense payments made in foreign currencies are translated into U.S. dollars at the exchange rates prevailing on the respective dates of the transactions. The effect of any changes in foreign currency exchange rates on portfolio investments and mortgage loans payable is included in net realized and unrealized gains and losses on investments and mortgage loans payable. Net realized gains and losses on foreign currency transactions include maturities of forward foreign currency contracts, disposition of foreign currencies, and currency gains and losses between the accrual and receipt dates of portfolio investment income and between the trade and settlement dates of portfolio investment transactions.

Accumulation and Annuity Funds: The accumulation fund represents the net assets attributable to participants in the accumulation phase of their investment (“Accumulation Fund”). The annuity fund represents the net assets attributable to the participants currently receiving annuity payments (“Annuity Fund”). The net increase or decrease in net assets from investment operations is apportioned between the accounts based upon their relative daily net asset values. Once an Account participant begins receiving lifetime annuity income benefits, monthly payment levels cannot be reduced as a result of the Account’s adverse mortality experience. In addition, the contracts are required to stipulate the maximum expense charge that can be assessed, which is equal to 2.50% of average net assets per year. The Account pays a fee to TIAA to assume these mortality and expense risks.

Accounting for Investments: Real estate transactions are accounted for as of the date on which the purchase or sale transactions for the real estate properties close (settlement date). The Account recognizes a realized gain on the sale of a real estate property to the extent that the contract sales price exceeds the cost-to-date of the property being sold. A realized loss occurs when the cost-to-date exceeds the sales price. Any accumulated unrealized gains and losses are reversed in the calculation of realized gains and losses.

Rent from real estate properties consists of all amounts earned under tenant operating leases, including base rent, recoveries of real estate taxes and other expenses and charges for miscellaneous services provided to tenants. Rental income is recognized in accordance with the billing terms of the lease agreements. The Account bears the direct expenses of the real estate properties owned. These expenses include, but are not limited to, fees to local property management companies, property taxes, utilities, maintenance, repairs, insurance, and other operating and administrative costs. An estimate of the net operating income earned from each real estate property is accrued by the Account on a daily basis and such estimates are adjusted when actual operating results are determined.

The Account has limited ownership interests in various real estate funds (limited partnerships and one limited liability corporation) and a private real estate investment trust (“REIT”) (collectively, the “limited partnerships”). The Account records its contributions as increases to the investments, and distributions from the investments are treated as either income or return of capital, as determined by the management of the limited partnerships. Unrealized gains and losses are calculated and recorded when the financial statements of the limited partnerships are received by the Account.

Income from real estate joint ventures is recorded based on the Account’s proportional interest of the income distributed by the joint venture. Income earned by the joint venture, but not yet distributed to the Account by the joint venture investment, is recorded as unrealized gains and losses on real estate joint ventures.

Transactions in marketable securities are accounted for as of the date the securities are purchased or sold (trade date). Interest income is recorded as earned. Dividend income is recorded on the ex-dividend date

10


10-Q11th "Page" of 62TOC1stPreviousNextBottomJust 11th

or as soon as the Account is informed of the dividend. Realized gains and losses on securities transactions are accounted for on the specific identification method.

Federal Income Taxes: Based on provisions of the Internal Revenue Code, Section 817, the Account is taxed as a segregated asset account of TIAA and as such, the Account should incur no material federal income tax attributable to the net investment activity of the Account.

Reclassifications: Certain prior period amounts have been reclassified to conform to the current presentation. These reclassifications did not affect the total assets, total net assets or net increase in net assets previously reported.

Note 2 — Management Agreements and Arrangements

Investment advisory services for the Account are provided by TIAA employees, under the direction of TIAA’s Board of Trustees and its Investment Committee, pursuant to investment management procedures adopted by TIAA for the Account. TIAA’s investment management decisions for the Account are subject to review by the Account’s independent fiduciary. TIAA also provides all portfolio accounting and related services for the Account.

Through December 31, 2007, administrative and distribution services for the Account were provided by TIAA-CREF Individual & Institutional Services, LLC (“Services”) pursuant to a combined Distribution and Administrative Services Agreement with the Account. Services, a wholly-owned subsidiary of TIAA, is a registered broker-dealer and a member of the Financial Industry Regulatory Authority.

Effective January 1, 2008, the Account entered into a Distribution Agreement for the Contracts Funded by the TIAA Real Estate Account (the “New Distribution Agreement”), dated as of January 1, 2008, by and among TIAA, for itself and on behalf of the Account, and Services.

Pursuant to the New Distribution Agreement, Services performs distribution services for the Account, which include, among other things, (i) distribution of annuity contracts issued by TIAA and funded by the Account, (ii) advising existing annuity contract owners in connection with their accumulations, and (iii) helping employers implement and manage retirement plans.

Also effective January 1, 2008, TIAA performs administrative functions previously performed for the Account by Services, which include, among other things, (i) computing the Account’s daily unit value, (ii) maintaining accounting records and performing accounting services, (iii) receiving and allocating premiums, (iv) calculating and making annuity payments, (v) processing withdrawal requests, (vi) providing regulatory compliance and reporting services, (vii) maintaining the Account’s records of contract ownership, and (viii) otherwise assisting generally in all aspects of the Account’s operations.

The New Distribution Agreement is terminable by either party upon 60 days written notice and terminates automatically upon any assignment thereof.

Both distribution services (pursuant to the New Distribution Agreement) and administrative services continue to be provided to the Account by Services and TIAA, as applicable, on an at cost basis.

TIAA and Services provide their services at cost. TIAA and Services receive payments from the Account on a daily basis according to formulas established each year with the objective of keeping the payments as close as possible to the Account’s expenses actually incurred. Any differences between actual expenses and the amounts paid by the Account are adjusted quarterly.

TIAA also provides a liquidity guarantee to the Account, for a fee, to ensure that sufficient funds are available to meet participant transfer and cash withdrawal requests in the event that the Account’s cash flows and liquid investments are insufficient to fund such requests. TIAA would fund any such transfer and

11


10-Q12th "Page" of 62TOC1stPreviousNextBottomJust 12th

withdrawal requests by purchasing accumulation units in the Account. TIAA also receives a fee for assuming certain mortality and expense risks.

The expenses for the services noted above that are provided to the Account by TIAA and Services are identified in the accompanying Statements of Operations and are reflected in the Condensed Financial Information disclosed in Note 6.

Note 3 — Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following are the major categories of assets and liabilities measured at fair value on a recurring basis during the three months ended March 31, 2008, using unadjusted quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3) (in thousands, unaudited):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Description

 

Level 1:
Quoted
Prices in
Active Markets
for Identical
Assets

 

Level 2:
Significant
Other
Observable
Inputs

 

Level 3:
Significant
Unobservable
Inputs

 

Total at
March 31,
2008

 


 


 


 


 


 

Real estate properties

 

$

 

$

 

$

12,110,602

 

$

12,110,602

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate joint ventures and limited partnerships

 

 

 

 

 

 

3,115,908

 

 

3,115,908

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities-real estate related

 

 

431,056

 

 

 

 

 

 

431,056

 

Marketable securities-other

 

 

 

 

3,148,714

 

 

 

 

3,148,714

 

Mortgage loan receivable

 

 

 

 

 

 

73,106

 

 

73,106

 

 

 



 



 



 



 

 

 

Total Investments

 

$

431,056

 

$

3,148,714

 

$

15,299,616

 

$

18,879,386

 

 

 



 



 



 



 

Mortgage loans payable

 

$

 

$

 

$

1,426,620

 

$

1,426,620

 

 

 



 



 



 



 

The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three month period ended March 31, 2008 (in thousands, unaudited):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate
Properties

 

Real Estate
Joint Ventures
and Limited
Partnerships

 

Mortgage
Loan
Receivable

 

Total
Level 3
Investments

 

Mortgage
Loans
Payable

 

 

 


 


 


 


 


 

Beginning balance January 1, 2008

 

$

11,983,715

 

$

3,158,870

 

$

72,520

 

$

15,215,105

 

$

(1,392,093

)

Total realized and unrealized gains (losses) included in changes in net assets

 

 

42,949

 

 

(43,720

)

 

586

 

 

(185

)

 

(34,710

)

Purchases, issuances, and settlements(1)

 

 

83,938

 

 

758

 

 

 

 

84,696

 

 

183

 

 

 



 



 



 



 



 

Ending balance March 31, 2008

 

$

12,110,602

 

$

3,115,908

 

$

73,106

 

$

15,299,616

 

$

(1,426,620

)

 

 



 



 



 



 



 


 

 

(1)

This line includes the net of contributions, distributions and accrued operating income for real estate joint ventures and limited partnerships.

12


10-Q13th "Page" of 62TOC1stPreviousNextBottomJust 13th

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate
Properties

 

Real Estate
Joint Ventures
and Limited
Partnerships

 

Mortgage Loan
Receivable

 

Total
Level 3
Investments

 

Mortgage
Loans
Payable

 

 

 


 


 


 


 


 

The amount of total gains (losses) for the three months ended March 31, 2008, included in changes in net assets attributable to the change in unrealized gains (losses) relating to assets still held as of the reporting date (in thousands, unaudited)

 

 

$

42,801

 

 

 

$

(43,703

)

 

 

$

586

 

 

 

$

(316

)

 

 

$

(34,710

)

 

 

 

 



 

 

 



 

 

 



 

 

 



 

 

 



 

 

Note 4 — Investments in Joint Ventures and Limited Partnerships

The Account owns interests in several real estate properties through joint ventures and receives distributions and allocations of profits and losses from the joint ventures based on the Account’s ownership interest percentages. Several of these joint ventures have mortgage loans payable on the properties owned. At March 31, 2008, the Account held 12 joint venture investments (and one remaining equity interest in a joint venture) with non-controlling ownership interest percentages that ranged from 50% to 85%. Certain joint venture and limited partnerships are subject to adjusted distribution percentages when earnings in the investment reach a pre-determined threshold. The Account’s allocated portion of the mortgage loans payable was $2,034.55 million and $1,991.78 million at March 31, 2008 and December 31, 2007, respectively. The Account’s equity in the joint ventures at March 31, 2008 and December 31, 2007 was $2,787.22 million and $2,827.51 million, respectively. A condensed summary of the financial position and results of operations of the joint ventures is shown below (in thousands).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2008

 

December 31, 2007

 

 

 


 


 

 

 

(Unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

Real estate properties, at value

 

 

$

7,043,696

 

 

 

$

7,001,688

 

 

Other assets

 

 

 

140,345

 

 

 

 

99,798

 

 

 

 

 



 

 

 



 

 

Total assets

 

 

$

7,184,041

 

 

 

$

7,101,486

 

 

 

 

 



 

 

 



 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

 

 

 

Mortgage loans payable, at value

 

 

$

2,767,854

 

 

 

$

2,707,161

 

 

Other liabilities

 

 

 

65,772

 

 

 

 

64,738

 

 

 

 

 



 

 

 



 

 

Total liabilities

 

 

 

2,833,626

 

 

 

 

2,771,899

 

 

Equity

 

 

 

4,350,415

 

 

 

 

4,329,587

 

 

 

 

 



 

 

 



 

 

Total liabilities and equity

 

 

$

7,184,041

 

 

 

$

7,101,486

 

 

 

 

 



 

 

 



 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three
Months Ended
March 31, 2008

 

Year Ended
December 31, 2007

 

 

 


 


 

 

 

(Unaudited)

 

 

 

Operating Revenues and Expenses

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 

$

137,102

 

 

 

$

534,469

 

 

Expenses

 

 

 

83,002

 

 

 

 

315,077

 

 

 

 

 



 

 

 



 

 

Excess of revenues over expenses

 

 

$

54,100

 

 

 

$

219,392

 

 

 

 

 



 

 

 



 

 

The Account invests in limited partnerships that own real estate properties and receives distributions from the limited partnerships based on the Account’s ownership interest percentages. At March 31, 2008, the Account held four limited partnership investments and one private real estate equity investment trust (all of which featured non-controlling ownership interests) with ownership interest percentages that ranged from 5.27% to 18.45%. The Account’s investment in limited partnerships was $328.68 million and $331.36 million at March 31, 2008 and December 31, 2007, respectively.

13


10-Q14th "Page" of 62TOC1stPreviousNextBottomJust 14th

Note 5 — Mortgage Loans Payable

At March 31, 2008, the Account had outstanding mortgage loans payable on the following properties (in thousands):

 

 

 

 

 

 

 

 

 

Property

 

Interest Rate and
Payment Frequency

 

Amount
March 31, 2008

 

Due

 


 


 


 


 

 

 

 

 

(Unaudited)

 

 

 

50 Fremont

 

6.40% paid monthly

 

$

135,000

 

August 21, 2013

 

Ontario Industrial Portfolio(a)

 

7.42% paid monthly

 

 

8,864

 

May 1, 2011

 

Fourth & Madison

 

6.40% paid monthly

 

 

145,000

 

August 21, 2013

 

1001 Pennsylvania Ave

 

6.40% paid monthly

 

 

210,000

 

August 21, 2013

 

99 High Street

 

5.52% paid monthly

 

 

185,000

 

November 11, 2015

 

Reserve at Sugarloaf(a)

 

5.49% paid monthly

 

 

25,801

 

June 1, 2013

 

1 & 7 Westferry Circus(b)

 

5.40% paid quarterly

 

 

266,775

 

November 15, 2012

 

Lincoln Centre

 

5.51% paid monthly

 

 

153,000

 

February 1, 2016

 

Wilshire Rodeo Plaza

 

5.28% paid monthly

 

 

112,700

 

April 11, 2014

 

1401 H Street

 

5.97% paid monthly

 

 

115,000

 

December 7, 2014

 

South Frisco Village

 

5.85% paid monthly

 

 

26,251

 

June 1, 2013

 

Pacific Plaza(a)

 

5.55% paid monthly

 

 

8,870

 

September 1, 2013

 

Publix at Weston Commons

 

5.08% paid monthly

 

 

35,000

 

January 1, 2036

 

 

 

 

 



 

 

 

Total principal outstanding

 

 

 

 

1,427,261

 

 

 

Fair value adjustment

 

 

 

 

(641

)

 

 

 

 

 

 



 

 

 

Total mortgage loans payable

 

 

 

$

1,426,620

 

 

 

 

 

 

 



 

 

 

 

 

 

(a)

The mortgage is adjusted monthly for principal payments.

 

 

(b)

The mortgage is denominated in British pounds and the principal has been converted to U.S. dollars using the exchange rate as of March 31, 2008. The quarterly payments are interest only, with a balloon payment at maturity. The interest rate is fixed. The cumulative foreign currency translation adjustment was an unrealized loss of $34 million.

14


10-Q15th "Page" of 62TOC1stPreviousNextBottomJust 15th

Note 6 — Condensed Financial Information

Selected condensed financial information for an Accumulation Unit of the Account is presented below.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ended

 

Years Ended December 31,

 

 

 

March 31,

 


 

 

 

2008(1)

 

2007

 

2006

 

2005

 

2004

 

 

 


 


 


 


 


 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Accumulation Unit data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental income

 

$

4.319

 

$

17.975

 

$

16.717

 

$

15.604

 

$

13.422

 

Real estate property level expenses and taxes

 

 

2.094

 

 

8.338

 

 

7.807

 

 

7.026

 

 

5.331

 

 

 



 



 



 



 



 

Real estate income, net

 

 

2.225

 

 

9.637

 

 

8.910

 

 

8.578

 

 

8.091

 

Other income

 

 

1.230

 

 

4.289

 

 

3.931

 

 

3.602

 

 

3.341

 

 

 



 



 



 



 



 

Total income

 

 

3.455

 

 

13.926

 

 

12.841

 

 

12.180

 

 

11.432

 

Expense charges(2)

 

 

0.777

 

 

2.554

 

 

1.671

 

 

1.415

 

 

1.241

 

 

 



 



 



 



 



 

Investment income, net

 

 

2.678

 

 

11.372

 

 

11.170

 

 

10.765

 

 

10.191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized and unrealized gain (loss) on investments and mortgage loans payable

 

 

(0.514

)

 

26.389

 

 

22.530

 

 

18.744

 

 

13.341

 

 

 



 



 



 



 



 

Net increase in Accumulation Unit Value

 

 

2.164

 

 

37.761

 

 

33.700

 

 

29.509

 

 

23.505

 

Accumulation Unit Value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning of year

 

 

311.414

 

 

273.653

 

 

239.953

 

 

210.444

 

 

186.939

 

 

 



 



 



 



 



 

End of year

 

$

313.578

 

$

311.414

 

$

273.653

 

$

239.953

 

$

210.444

 

 

 



 



 



 



 



 

 

Total return

 

 

0.69

%

 

13.80

%

 

14.04

%

 

14.02

%

 

12.57

%

Ratios to Average Net Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses(2)

 

 

0.25

%

 

0.87

%

 

0.67

%

 

0.63

%

 

0.63

%

Investment income, net

 

 

0.86

%

 

3.88

%

 

4.49

%

 

4.82

%

 

5.17

%

 

Portfolio turnover rate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate properties

 

 

0.01

%

 

5.59

%

 

3.62

%

 

6.72

%

 

2.32

%

Marketable securities

 

 

0.44

%

 

13.03

%

 

51.05

%

 

77.63

%

 

143.47

%

Accumulation Units outstanding at end of year (in thousands)

 

 

54,037

 

 

55,106

 

 

50,146

 

 

42,623

 

 

33,338

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net assets end of year (in thousands)

 

$

17,451,335

 

$

17,660,537

 

$

14,132,693

 

$

10,548,711

 

$

7,245,550

 


 

 

(1)

Per share amounts and percentages for the interim period have not been annualized.

 

 

(2)

Expense charges per Accumulation Unit and the Ratio of Expenses to Average Net Assets reflect Account-level expenses and exclude real estate property level expenses which are included in net real estate income. If the real estate property level expenses were included, the expense charge per Accumulation Unit for the three months ended March 31, 2008 would be $2.871 ($10.892, $9.478, $8.441, and $6.572, for the years ended December 31, 2007, 2006, 2005, and 2004, respectively), and the Ratio of Expenses to Average Net Assets for the three months ended March 31, 2008 would be 0.917% (3.71%, 3.81%, 3.78%, and 3.33% for the years ended December 31, 2007, 2006, 2005, and 2004, respectively).

15


10-Q16th "Page" of 62TOC1stPreviousNextBottomJust 16th

Note 7 — Accumulation Units

Changes in the number of Accumulation Units outstanding were as follows (in thousands):

 

 

 

 

 

 

 

 

 

 

For the
Three Months
Ended
March 31, 2008

 

For the Year Ended
December 31, 2007

 

 

 


 


 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Credited for premiums

 

899

 

 

3,795

 

 

Net units credited (cancelled) for transfers, net disbursements and amounts applied to the Annuity Fund

 

(1,968

)

 

1,165

 

 

Outstanding:

 

 

 

 

 

 

 

Beginning of period

 

55,106

 

 

50,146

 

 

 

 


 

 


 

 

End of period

 

54,037

 

 

55,106

 

 

 

 


 

 


 

 

Note 8 — Commitments and Subsequent Events

During the normal course of business, the Account enters into discussions and agreements to purchase or sell real estate properties. On April 4, 2008, the Account purchased two industrial distribution buildings with an aggregate of 1.37 million square feet in Rancho Cucamonga and Fontana, California for approximately $117.9 million.

In April 2008, pursuant to the terms and conditions of the mortgage, the borrower notified the Account of its intent to repay, in full, the mortgage loan receivable in the amount of approximately $75 million on or about June 30, 2008.

As of March 31, 2008 the Account has outstanding commitments to purchase interests in five limited partnerships and to purchase shares in a private real estate equity investment trust, of which $86.6 million remains to be funded under these commitments.

The Account is party to various other claims and routine litigation arising in the ordinary course of business. Management of the Account does not believe that the results of any such claims or litigation, individually, or in the aggregate, will have a material effect on the Account’s business, financial position, or results of operations.

Note 9 — New Accounting Pronouncements

In September 2006, FASB issued Statement No. 157, “Fair Value Measurements.” This Statement defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles in the United States, and requires additional disclosures about fair value measurements. This Statement does not require any new fair value measurements, but the application of this Statement could change current practices in determining fair value. This Statement is effective as of January 1, 2008 for the Account. The adoption of Statement No. 157 did not have a material impact on the Account’s financial position or results of operations.

In February 2007, FASB issued Statement No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities.” This Statement permits entities to choose to measure financial instruments and certain other items at fair value and is expected to expand the use of fair value measurement when warranted. The Account adopted Statement No. 159 on January 1, 2008 and plans to report all existing and future mortgage loans payable at fair value using this Statement. Historically, the Account recorded mortgage loans payable at fair value. The adoption of Statement 159 did not have a material impact on the Account’s financial position or results of operations.

16


10-Q17th "Page" of 62TOC1stPreviousNextBottomJust 17th

In June 2007, the Accounting Standards Executive Committee (“ACSEC”) of the American Institute of Certified Public Accountants (“AICPA”) issued Statement of Position (SOP) 07-1, “Clarification of the Scope of the Audit and Accounting Guide Investment Companies, and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies.” The SOP clarifies which entities are required to apply the provisions of the Investment Companies Audit and Accounting Guide (“Guide”) and provides guidance on accounting by parent companies and equity method investors for investments in investment companies. The SOP was effective for fiscal years beginning on or after December 15, 2007. In February 2008, FASB issued Staff Position (“FSP”) SOP 07-1-1 indefinitely delaying the effective date of SOP 07-1 to allow FASB time to consider significant issues related to the implementation of SOP 07-1. Management of the Account will continue to monitor FASB developments and will evaluate the financial reporting implications to the Account, as necessary.

In December 2007, FASB issued Statement No. 141(R), “Business Combinations,” which establishes principles and requirements for how the acquirer shall recognize and measure in its financial statements the identifiable assets acquired, liabilities assumed, any noncontrolling interest in the acquiree and goodwill acquired in a business combination or a gain from a bargain purchase. This Statement is effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The Account is currently assessing the impact that Statement No. 141(R) will have on its financial position and results of operations.

In December 2007, FASB issued Statement No. 160, “Noncontrolling Interests in Consolidated Financial Statements – an Amendment of ARB No. 51,” which establishes and expands accounting and reporting standards for minority interests, which will be recharacterized as noncontrolling interests, in a subsidiary and the deconsolidation of a subsidiary. This Statement is effective for fiscal years beginning on or after December 15, 2008. The Account is currently assessing the potential impact that Statement No. 160 will have on its financial position and results of operations.

17


10-Q18th "Page" of 62TOC1stPreviousNextBottomJust 18th

TIAA REAL ESTATE ACCOUNT
 STATEMENT OF INVESTMENTS
March 31, 2008 and December 31, 2007
(In thousands)

REAL ESTATE PROPERTIES—64.15% and 63.03%

 

 

 

 

 

 

 

 

 

 

Value

 

 

 


 

Location / Description

 

2008

 

2007

 


 


 


 

 

 

(Unaudited)

 

 

 

 

Alabama:

 

 

 

 

 

 

 

Inverness Center—Office building

 

$

128,600

 

$

125,522

 

Arizona:

 

 

 

 

 

 

 

Camelback Center—Office building

 

 

71,300

 

 

80,000

 

Kierland Apartment Portfolio—Apartments

 

 

165,297

 

 

170,084

 

Phoenix Apartment Portfolio—Apartments

 

 

148,088

 

 

156,110

 

California:

 

 

 

 

 

 

 

3 Hutton Centre Drive—Office building

 

 

64,199

 

 

64,200

 

50 Fremont—Office building

 

 

478,809

(1)

 

478,000

(1)

88 Kearny Street—Office building

 

 

124,800

 

 

123,822

 

275 Battery—Office building

 

 

282,031

 

 

271,917

 

980 9th Street and 1010 8th Street—Office building

 

 

178,000

 

 

178,000

 

Rancho Cucamonga Industrial Portfolio—Industrial building

 

 

136,000

 

 

133,000

 

Capitol Place—Office building

 

 

53,500

 

 

53,539

 

Centerside I—Office building

 

 

67,750

 

 

67,500

 

Centre Pointe and Valley View—Industrial building

 

 

34,800

 

 

34,143

 

Larkspur Courts—Apartments

 

 

95,000

 

 

97,000

 

Northern CA RA Industrial Portfolio—Industrial building

 

 

70,099

 

 

69,602

 

Ontario Industrial Portfolio—Industrial building

 

 

367,000

(1)

 

355,399

(1)

Pacific Plaza—Office building

 

 

127,000

(1)

 

127,130

(1)

Regents Court—Apartments

 

 

69,084

 

 

69,000

 

Southern CA RA Industrial Portfolio—Industrial building

 

 

116,235

 

 

110,718

 

The Legacy at Westwood—Apartments

 

 

127,525

 

 

126,580

 

Wellpoint—Office building

 

 

51,200

 

 

51,000

 

Westcreek—Apartments

 

 

39,114

 

 

39,190

 

West Lake North Business Park—Office building

 

 

69,209

 

 

68,622

 

Westwood Marketplace—Shopping center

 

 

100,188

 

 

96,562

 

Wilshire Rodeo Plaza—Office building

 

 

232,406

(1)

 

230,439

(1)

Colorado:

 

 

 

 

 

 

 

Palomino Park—Apartments

 

 

191,700

 

 

194,001

 

The Lodge at Willow Creek—Apartments

 

 

44,100

 

 

43,500

 

The Market at Southpark—Shopping center

 

 

36,200

 

 

35,800

 

Connecticut:

 

 

 

 

 

 

 

Ten & Twenty Westport Road—Office building

 

 

184,200

 

 

183,006

 

Florida:

 

 

 

 

 

 

 

701 Brickell—Office building

 

 

282,001

 

 

275,942

 

4200 West Cypress Street—Office building

 

 

48,319

 

 

48,044

 

Plantation Grove—Shopping center

 

 

15,400

 

 

15,400

 

Pointe on Tampa Bay—Office building

 

 

61,675

 

 

60,972

 

Publix at Weston Commons—Shopping center

 

 

55,200

(1)

 

55,200

(1)

Quiet Waters at Coquina Lakes—Apartments

 

 

26,206

 

 

26,205

 

Royal St George—Apartments

 

 

24,000

 

 

27,000

 

Seneca Industrial Park—Industrial building

 

 

122,200

 

 

122,334

 

South Florida Apartment Portfolio—Apartments

 

 

71,831

 

 

68,249

 

Suncrest Village—Shopping center

 

 

18,100

 

 

19,500

 

The Fairways of Carolina—Apartments

 

 

27,203

 

 

27,208

 

See notes to the financial statements.

18


10-Q19th "Page" of 62TOC1stPreviousNextBottomJust 19th

TIAA REAL ESTATE ACCOUNT
STATEMENT OF INVESTMENTS
March 31, 2008 and December 31, 2007
(In thousands)

 

 

 

 

 

 

 

 

 

 

Value

 

 

 


 

Location / Description

 

2008

 

2007

 


 


 


 

 

 

(Unaudited)

 

 

 

 

Florida: (continued)

 

 

 

 

 

 

 

The North 40 Office Complex—Office building

 

$

67,025

 

$

67,004

 

Urban Centre—Office building

 

 

139,192

 

 

135,577

 

France:

 

 

 

 

 

 

 

Printemps De L’Homme—Shopping center

 

 

306,567

 

 

279,078

 

Georgia:

 

 

 

 

 

 

 

1050 Lenox Park—Apartments

 

 

85,500

 

 

85,500

 

Atlanta Industrial Portfolio—Industrial building

 

 

58,400

 

 

58,300

 

Glenridge Walk—Apartments

 

 

52,900

 

 

52,900

 

Reserve at Sugarloaf—Apartments

 

 

52,014

(1)

 

52,000

(1)

Shawnee Ridge Industrial Portfolio—Industrial building

 

 

75,853

 

 

76,742

 

Illinois:

 

 

 

 

 

 

 

Chicago Caleast Industrial Portfolio—Industrial building

 

 

78,122

 

 

77,643

 

Chicago Industrial Portfolio—Industrial building

 

 

86,505

 

 

86,421

 

East North Central RA Industrial Portfolio—Industrial building

 

 

38,934

 

 

38,016

 

Oak Brook Regency Towers—Office building

 

 

85,293

 

 

86,892

 

Parkview Plaza—Office building

 

 

65,998

 

 

66,067

 

Maryland:

 

 

 

 

 

 

 

Broadlands Business Park—Industrial building

 

 

35,500

 

 

35,500

 

FEDEX Distribution Facility—Industrial building

 

 

10,800

 

 

9,900

 

GE Appliance East Coast Distribution Facility—Industrial building

 

 

48,400

 

 

48,000

 

Massachusetts:

 

 

 

 

 

 

 

99 High Street—Office building

 

 

343,488

(1)

 

344,688

(1)

Needham Corporate Center—Office building

 

 

33,459

 

 

33,275

 

Northeast RA Industrial Portfolio—Industrial building

 

 

33,100

 

 

33,300

 

The Newbry—Office building

 

 

380,172

 

 

389,880

 

Minnesota:

 

 

 

 

 

 

 

Champlin Marketplace—Shopping center

 

 

18,400

 

 

18,375

 

Nevada:

 

 

 

 

 

 

 

UPS Distribution Facility—Industrial building

 

 

15,400

 

 

15,900

 

New Jersey:

 

 

 

 

 

 

 

Konica Photo Imaging Headquarters—Industrial building

 

 

22,200

 

 

23,500

 

Marketfair—Shopping center

 

 

94,541

 

 

95,500

 

Morris Corporate Center III—Office building

 

 

112,272

 

 

119,600

 

NJ Caleast Industrial Portfolio—Industrial building

 

 

49,105

 

 

42,225

 

Plainsboro Plaza—Shopping center

 

 

49,300

 

 

51,000

 

South River Road Industrial—Industrial building

 

 

52,900

 

 

53,400

 

New York:

 

 

 

 

 

 

 

780 Third Avenue—Office building

 

 

375,000

 

 

375,000

 

The Colorado—Apartments

 

 

161,000

 

 

113,033

 

Ohio:

 

 

 

 

 

 

 

Columbus Portfolio—Office building

 

 

23,800

 

 

26,315

 

Pennsylvania:

 

 

 

 

 

 

 

Lincoln Woods—Apartments

 

 

37,900

 

 

37,917

 

See notes to the financial statements.

19


10-Q20th "Page" of 62TOC1stPreviousNextBottomJust 20th

TIAA REAL ESTATE ACCOUNT
STATEMENT OF INVESTMENTS
March 31, 2008 and December 31, 2007
(In thousands)

 

 

 

 

 

 

 

 

 

 

Value

 

 

 


 

Location / Description

 

2008

 

2007

 


 


 


 

 

 

(Unaudited)

 

 

 

Tennessee:

 

 

 

 

 

 

 

Airways Distribution Center—Industrial building

 

$

22,700

 

$

24,300

 

Summit Distribution Center—Industrial building

 

 

25,500

 

 

27,500

 

Texas:

 

 

 

 

 

 

 

Dallas Industrial Portfolio—Industrial building

 

 

162,839

 

 

154,056

 

Four Oaks Place—Office building

 

 

477,763

 

 

419,270

 

Houston Apartment Portfolio—Apartments

 

 

297,305

 

 

296,241

 

Lincoln Centre—Office building

 

 

318,000

(1)

 

305,000

(1)

Park Place on Turtle Creek—Office building

 

 

48,008

 

 

48,283

 

Pinnacle Industrial/DFW Trade Center—Industrial building

 

 

46,100

 

 

46,700

 

Preston Sherry Plaza—Office building

 

 

45,500

 

 

45,500

 

South Frisco Village—Shopping center

 

 

49,000

(1)

 

48,500

(1)

The Caruth—Apartments

 

 

67,000

 

 

65,427

 

The Maroneal—Apartments

 

 

40,041

 

 

40,034

 

United Kingdom:

 

 

 

 

 

 

 

1 & 7 Westferry Circus—Office building

 

 

409,296

(1)

 

436,127

(1)

Virginia:

 

 

 

 

 

 

 

8270 Greensboro Drive—Office building

 

 

62,997

 

 

63,500

 

Ashford Meadows—Apartments

 

 

94,000

 

 

94,060

 

One Virginia Square—Office building

 

 

57,015

 

 

59,539

 

The Ellipse at Ballston—Office building

 

 

92,600

 

 

92,504

 

Washington:

 

 

 

 

 

 

 

Creeksides at Centerpoint—Office building

 

 

40,000

 

 

42,000

 

Fourth & Madison—Office building

 

 

470,000

(1)

 

487,000

(1)

Millennium Corporate Park—Office building

 

 

162,000

 

 

158,000

 

Northwest RA Industrial Portfolio—Industrial building

 

 

24,534

 

 

23,402

 

Rainier Corporate Park—Industrial building

 

 

82,023

 

 

81,161

 

Regal Logistics Campus—Industrial building

 

 

69,000

 

 

71,000

 

Washington DC:

 

 

 

 

 

 

 

1001 Pennsylvania Avenue—Office building

 

 

645,002

(1)

 

640,150

(1)

1401 H Street, NW—Office building

 

 

224,076

(1)

 

224,573

(1)

1900 K Street—Office building

 

 

286,500

 

 

285,000

 

Mazza Gallerie—Shopping center

 

 

97,194

 

 

97,000

 

 

 



 



 

TOTAL REAL ESTATE PROPERTIES
(Cost $9,888,575 and $9,804,489)

 

 

12,110,602

 

 

11,983,715

 

 

 



 



 

See notes to the financial statements.

20


10-Q21st "Page" of 62TOC1stPreviousNextBottomJust 21st

TIAA REAL ESTATE ACCOUNT
STATEMENT OF INVESTMENTS
March 31, 2008 and December 31, 2007
(In thousands)

OTHER REAL ESTATE-RELATED INVESTMENTS—16.50% and 16.61%

 

 

 

 

 

 

 

 

 

 

Value

 

 

 


 

Location / Description

 

2008

 

2007

 


 


 


 

 

 

(Unaudited)

 

 

 

REAL ESTATE JOINT VENTURES—14.76% and 14.87%

 

 

 

 

 

 

 

CA—Colorado Center LP

 

 

 

 

 

 

 

Yahoo Center (50% Account Interest)

 

$

369,174

(3)

$

369,402

(3)

CA—Treat Towers LP

 

 

 

 

 

 

 

Treat Towers (75% Account Interest)

 

 

119,260

 

 

118,997

 

GA—Buckhead LLC

 

 

 

 

 

 

 

Prominence in Buckhead (75% Account Interest)

 

 

107,843

 

 

115,427

 

Florida Mall Associates, Ltd

 

 

 

 

 

 

 

The Florida Mall (50% Account Interest)

 

 

303,042

(3)

 

296,486

(3)

IL—161 Clark Street LLC

 

 

 

 

 

 

 

161 North Clark Street (75% Account Interest)

 

 

1,116

(4)

 

3,151

(4)

MA—One Boston Place REIT

 

 

 

 

 

 

 

One Boston Place (50.25% Account Interest)

 

 

244,907

 

 

246,440

 

DDR TC LLC

 

 

 

 

 

 

 

DDR Joint Venture—Various (85% Account Interest)

 

 

1,000,908

(3,5)

 

1,028,297

(3,5)

Storage Portfolio I, LLC

 

 

 

 

 

 

 

Storage Portfolio (75% Account Interest)

 

 

78,692

(3,5)

 

81,943

(3,5)

Strategic Ind Portfolio I, LLC

 

 

 

 

 

 

 

IDI Nationwide Industrial Portfolio (60% Account Interest)

 

 

73,350

(3,5)

 

76,536

(3,5)

Teachers REA IV, LLC

 

 

 

 

 

 

 

Tyson’s Executive Plaza II (50% Account Interest)

 

 

44,549

 

 

44,178

 

TREA Florida Retail, LLC

 

 

 

 

 

 

 

Florida Retail Portfolio (80% Account Interest)

 

 

260,762

 

 

260,879

 

West Dade Associates

 

 

 

 

 

 

 

Miami International Mall (50% Account Interest)

 

 

113,841

(3)

 

109,945

(3)

West Town Mall, LLC

 

 

 

 

 

 

 

West Town Mall (50% Account Interest)

 

 

69,780

(3)

 

75,827

(3)

 

 



 



 

TOTAL REAL ESTATE JOINT VENTURES

 

 

 

 

 

 

 

(Cost $2,040,127 and $2,005,340)

 

 

2,787,224

 

 

2,827,508

 

 

 



 



 

LIMITED PARTNERSHIPS—1.74% and 1.74%

 

 

 

 

 

 

 

Cobalt Industrial REIT (10.998% Account Interest)

 

 

32,324

 

 

32,840

 

Colony Realty Partners LP (5.27% Account Interest)

 

 

31,614

 

 

32,505

 

Heitman Value Partners Fund (8.43% Account Interest)

 

 

24,349

 

 

24,489

 

Lion Gables Apartment Fund (18.45% Account Interest)

 

 

205,162

 

 

205,162

 

MONY/Transwestern Mezz RP II (16.67% Account Interest)

 

 

35,235

 

 

36,366

 

 

 



 



 

TOTAL LIMITED PARTNERSHIPS

 

 

 

 

 

 

 

(Cost $254,689 and $255,579)

 

 

328,684

 

 

331,362

 

 

 



 



 

TOTAL REAL ESTATE JOINT VENTURES AND LIMITED PARTNERSHIPS

 

 

 

 

 

 

 

(Cost $2,294,816 and $2,260,919)

 

 

3,115,908

 

 

3,158,870

 

 

 



 



 

See notes to the financial statements.

21


10-Q22nd "Page" of 62TOC1stPreviousNextBottomJust 22nd

TIAA REAL ESTATE ACCOUNT
STATEMENT OF INVESTMENTS
March 31, 2008 and December 31, 2007
(In thousands)

MARKETABLE SECURITIES—18.96% and 19.97%
REAL ESTATE-RELATED MARKETABLE SECURITIES—2.28% and 2.24%

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

Value


 

 

 


2008

 

2007

 

Issuer

 

2008

 

2007


 


 


 


 


 

 

 

 

 

 

(Unaudited)

 

 

 

51,200

 

 

51,200

 

Acadia Realty Trust

 

$

1,236

 

$

1,311

 

3,300

 

 

3,300

 

Alexander’s Inc.

 

 

1,170

 

 

1,166

 

53,100

 

 

53,100

 

Alexandria Real Estate Equities Inc.

 

 

4,923

 

 

5,399

 

164,585

 

 

164,585

 

AMB Property Corp.

 

 

8,957

 

 

9,474

 

45,100

 

 

45,100

 

American Campus Communities Inc.

 

 

1,234

 

 

1,211

 

214,600

 

 

214,600

 

American Financial Realty Trust

 

 

1,704

 

 

1,721

 

159,721

 

 

159,700

 

Apartment Investment & Management Co.

 

 

5,720

 

 

5,546

 

200,000

 

 

200,000

 

Ashford Hospitality Trust Inc.

 

 

1,136

 

 

1,438

 

27,500

 

 

27,500

 

Associated Estates Realty Corp.

 

 

315

 

 

260

 

128,300

 

 

132,200

 

AvalonBay Communities Inc.

 

 

12,384

 

 

12,445

 

109,100

 

 

109,100

 

BioMed Realty Trust Inc.

 

 

2,606

 

 

2,528

 

198,600

 

 

198,600

 

Boston Properties Inc.

 

 

18,285

 

 

18,233

 

148,100

 

 

148,100

 

Brandywine Realty Trust

 

 

2,512

 

 

2,655

 

85,300

 

 

86,500

 

BRE Properties Inc.

 

 

3,886

 

 

3,506

 

341,650

 

 

341,650

 

Brookfield Properties Corp.

 

 

6,597

 

 

6,577

 

87,900

 

 

93,500

 

Camden Property Trust

 

 

4,413

 

 

4,502

 

110,900

 

 

110,900

 

CBL & Associates Properties Inc.

 

 

2,609

 

 

2,652

 

74,900

 

 

74,900

 

Cedar Shopping Centers Inc.

 

 

875

 

 

766

 

75,400

 

 

75,400

 

Colonial Properties Trust

 

 

1,813

 

 

1,706

 

79,500

 

 

79,500

 

Corporate Office Properties Trust

 

 

2,672

 

 

2,504

 

69,000

 

 

71,100

 

Cousins Properties Inc.

 

 

1,705

 

 

1,571

 

281,100

 

 

281,100

 

DCT Industrial Trust Inc.

 

 

2,800

 

 

2,617

 

199,400

 

 

205,000

 

Developers Diversified Realty Corp.

 

 

8,351

 

 

7,849

 

157,000

 

 

157,000

 

DiamondRock Hospitality Co.

 

 

1,989

 

 

2,352

 

99,000

 

 

99,000

 

Digital Realty Trust Inc.

 

 

3,515

 

 

3,799

 

179,700

 

 

164,400

 

Douglas Emmett Inc.

 

 

3,964

 

 

3,717

 

243,000

 

 

243,000

 

Duke Realty Corp.

 

 

5,543

 

 

6,337

 

59,100

 

 

51,700

 

Dupont Fabros Technology

 

 

975

 

 

1,013

 

39,400

 

 

39,400

 

EastGroup Properties Inc.

 

 

1,831

 

 

1,649

 

49,900

 

 

49,900

 

Education Realty Trust Inc.

 

 

627

 

 

561

 

37,300

 

 

37,300

 

Equity Lifestyle Properties Inc.

 

 

1,842

 

 

1,703

 

60,800

 

 

60,800

 

Equity One Inc.

 

 

1,457

 

 

1,400

 

452,300

 

 

452,300

 

Equity Residential

 

 

18,766

 

 

16,495

 

42,000

 

 

42,000

 

Essex Property Trust Inc.

 

 

4,787

 

 

4,095

 

108,700

 

 

108,700

 

Extra Space Storage Inc.

 

 

1,760

 

 

1,553

 

98,100

 

 

93,700

 

Federal Realty Investment Trust

 

 

7,647

 

 

7,697

 

101,300

 

 

101,300

 

FelCor Lodging Trust Inc.

 

 

1,219

 

 

1,579

 

72,500

 

 

74,700

 

First Industrial Realty Trust Inc.

 

 

2,240

 

 

2,585

 

41,600

 

 

41,600

 

First Potomac Realty Trust

 

 

639

 

 

719

 

384,500

 

 

384,500

 

General Growth Properties Inc.

 

 

14,676

 

 

15,834

 

62,700

 

 

62,700

 

Glimcher Realty Trust

 

 

750

 

 

896

 

64,200

 

 

64,200

 

GMH Communities Trust

 

 

557

 

 

354

 

360,900

 

 

360,900

 

HCP Inc

 

 

12,202

 

 

12,552

 

147,500

 

 

141,700

 

Health Care REIT Inc

 

 

6,657

 

 

6,333

See notes to the financial statements.

22


10-Q23rd "Page" of 62TOC1stPreviousNextBottomJust 23rd

TIAA REAL ESTATE ACCOUNT
STATEMENT OF INVESTMENTS
March 31, 2008 and December 31, 2007
(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

Value


 

 

 


2008

 

2007

 

Issuer

 

2008

 

2007


 


 


 


 


 

 

 

 

 

 

(Unaudited)

 

 

 

84,600

 

 

84,600

 

Healthcare Realty Trust Inc

 

$

2,212

 

$

2,148

 

70,900

 

 

70,900

 

Hersha Hospitality Trust

 

 

640

 

 

674

 

94,600

 

 

96,300

 

Highwoods Properties Inc.

 

 

2,939

 

 

2,829

 

54,300

 

 

55,500

 

Home Properties Inc.

 

 

2,606

 

 

2,489

 

155,800

 

 

155,800

 

Hospitality Properties Trust

 

 

5,300

 

 

5,020

 

869,070

 

 

869,070

 

Host Hotels & Resorts Inc.

 

 

13,836

 

 

14,809

 

375,400

 

 

375,400

 

HRPT Properties Trust

 

 

2,526

 

 

2,902

 

95,300

 

 

95,300

 

Inland Real Estate Corp.

 

 

1,450

 

 

1,349

 

54,100

 

 

54,100

 

Kilroy Realty Corp.

 

 

2,657

 

 

2,973

 

365,921

 

 

365,921

 

Kimco Realty Corp.

 

 

14,333

 

 

13,320

 

47,600

 

 

47,600

 

Kite Realty Group Trust

 

 

666

 

 

727

 

66,600

 

 

66,600

 

LaSalle Hotel Properties

 

 

1,913

 

 

2,125

 

151,900

 

 

151,900

 

Liberty Property Trust

 

 

4,726

 

 

4,376

 

121,000

 

 

121,000

 

Macerich Co./The

 

 

8,503

 

 

8,598

 

109,200

 

 

111,900

 

Mack-Cali Realty Corp.

 

 

3,900

 

 

3,805

 

59,900

 

 

59,900

 

Maguire Properties Inc.

 

 

857

 

 

1,765

 

42,300

 

 

42,300

 

Mid-America Apartment Communities

 

 

2,108

 

 

1,808

 

159,000

 

 

155,200

 

Nationwide Health Properties Inc.

 

 

5,366

 

 

4,869

 

25,400

 

 

25,400

 

Parkway Properties Inc./Md

 

 

939

 

 

939

 

65,900

 

 

65,900

 

Pennsylvania Real Estate Investment Trust

 

 

1,607

 

 

1,956

 

72,200

 

 

72,200

 

Post Properties Inc.

 

 

2,788

 

 

2,536

 

427,900

 

 

427,900

 

Prologis

 

 

25,186

 

 

27,120

 

25,300

 

 

26,900

 

PS Business Parks Inc.

 

 

1,313

 

 

1,414

 

214,614

 

 

214,614

 

Public Storage Inc.

 

 

19,019

 

 

15,755

 

31,500

 

 

31,500

 

Ramco-Gershenson Properties

 

 

665

 

 

673

 

115,100

 

 

115,100

 

Regency Centers Corp.

 

 

7,454

 

 

7,423

 

19,300

 

 

19,300

 

Saul Centers Inc.

 

 

970

 

 

1,031

 

156,800

 

 

139,600

 

Senior Housing Properties Trust

 

 

3,716

 

 

3,166

 

372,621

 

 

373,221

 

Simon Property Group Inc.

 

 

34,620

 

 

32,418

 

98,507

 

 

98,507

 

SL Green Realty Corp.

 

 

8,025

 

 

9,207

 

36,500

 

 

36,500

 

Sovran Self Storage Inc.

 

 

1,559

 

 

1,464

 

124,300

 

 

124,300

 

Strategic Hotels & Resorts Inc.

 

 

1,632

 

 

2,080

 

27,800

 

 

27,800

 

Sun Communities Inc.

 

 

570

 

 

586

 

98,200

 

 

98,200

 

Sunstone Hotel Investors Inc.

 

 

1,572

 

 

1,796

 

52,300

 

 

52,300

 

Tanger Factory Outlet Centers

 

 

2,012

 

 

1,972

 

87,700

 

 

88,800

 

Taubman Centers Inc.

 

 

4,569

 

 

4,368

 

224,000

 

 

224,000

 

UDR, Inc.

 

 

5,492

 

 

4,446

 

17,000

 

 

17,000

 

Universal Health Realty Income Trust

 

 

566

 

 

602

 

78,500

 

 

78,500

 

U-Store-It Trust

 

 

889

 

 

719

 

229,500

 

 

221,800

 

Ventas Inc.

 

 

10,307

 

 

10,037

 

237,100

 

 

237,100

 

Vornado Realty Trust

 

 

20,440

 

 

20,853

 

77,700

 

 

77,700

 

Washington Real Estate Investment

 

 

2,597

 

 

2,441

 

129,600

 

 

133,000

 

Weingarten Realty Investors

 

 

4,465

 

 

4,182

 

 

 

 

 

 

 

 



 



TOTAL REAL ESTATE-RELATED MARKETABLE SECURITIES
(Cost $442,958 and $439,154)

 

 

431,056

 

 

426,630

 

 



 



See notes to the financial statements.

23


10-Q24th "Page" of 62TOC1stPreviousNextBottomJust 24th

TIAA REAL ESTATE ACCOUNT
STATEMENT OF INVESTMENTS
March 31, 2008 and December 31, 2007
(In thousands)

OTHER MARKETABLE SECURITIES—16.68% and 17.73%
BANKERS ACCEPTANCE—0.50% and 0.20%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

 

 

Value

 


 

 

 


 

2008

 

2007

 

Issuer, Maturity Date and Yield(6)

 

2008

 

2007

 


 


 


 


 


 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

 

$

 

$

4,359

 

JPMorgan Chase Bank
1/18/08 4.400%

 

$

 

$

4,349

 

 

10,000

 

 

10,000

 

Wachovia Bank
4/21/08 4.441%

 

 

9,984

 

 

9,851

 

 

25,000

 

 

25,000

 

Wachovia Bank
5/7/08 4.360%

 

 

24,930

 

 

24,570

 

 

4,670

 

 

 

JPMorgan Chase Bank
4/21/08 3.194%

 

 

4,662

 

 

 

 

20,000

 

 

 

Wachovia Bank
6/5/08 4.056%

 

 

19,901

 

 

 

 

35,000

 

 

 

Wachovia Bank
8/1/08 2.738%

 

 

34,675

 

 

 

 

 

 

 

 

 

 

 



 



 

TOTAL BANKERS ACCEPTANCE
(Cost $94,065 and $38,836)

 

 

94,152

 

 

38,770

 

 

 

 

 

 

 

 

 



 



 

CERTIFICATES OF DEPOSIT—1.89% and 2.22%

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuer, Maturity Date and Interest Rate

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

30,000

 

 

 

Abbey National PLC
5/6/08 3.800%

 

 

30,028

 

 

 

 

14,030

 

 

 

Abbey National PLC
6/9/08 2.750%

 

 

14,029

 

 

 

 

 

 

25,000

 

American Express Centurion Bank
2/4/08 4.750%

 

 

 

 

25,002

 

 

 

 

20,000

 

American Express Centurion Bank
2/5/08 4.750%

 

 

 

 

20,002

 

 

10,000

 

 

 

Banco Bilbao Vizcaya Argentaria SA
4/4/08 4.630%

 

 

10,002

 

 

 

 

20,000

 

 

 

Banco Bilbao Vizcaya Argentaria SA
4/14/08 4.255%

 

 

20,011

 

 

 

 

10,000

 

 

 

Banco Bilbao Vizcaya Argentaria SA
6/16/08 4.140%

 

 

10,028

 

 

 

 

 

 

10,000

 

Bank of Montreal
2/14/08 5.030%

 

 

 

 

10,004

 

 

 

 

45,000

 

Bank of Montreal
3/7/08 5.100%

 

 

 

 

45,031

 

 

25,000

 

 

 

Bank of Montreal
5/16/08 3.040%

 

 

25,006

 

 

 

 

30,000

 

 

 

Bank of Nova Scotia
4/9/08 4.310%

 

 

30,011

 

 

 

 

 

 

25,000

 

Bank of Nova Scotia
1/16/08 5.060%

 

 

 

 

25,004

 

 

 

 

25,000

 

Barclays Bank
2/27/08 4.990%

 

 

 

 

25,013

 

See notes to the financial statements.

24


10-Q25th "Page" of 62TOC1stPreviousNextBottomJust 25th

TIAA REAL ESTATE ACCOUNT
STATEMENT OF INVESTMENTS
March 31, 2008 and December 31, 2007
(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Principal

 

 

 

Value

 


 

 

 


 

2008

 

2007

 

Issuer, Maturity Date and Interest Rate

 

2008

 

2007

 


 


 


 


 


 

 

 

 

 

 

 

(Unaudited)

 

 

 

$

50,000

 

$

 

Calyon
6/17/08 2.740%

 

$

49,995

 

$

 

 

20,000

 

 

 

Calyon
6/19/08 2.480%

 

 

19,987

 

 

 

 

 

 

10,000

 

Calyon
1/31/08 4.820%