IBEW/NECA Employee Benefits Conference

February 1, 2013

AFL- CIO

HOUSING INVESTMENT TRUST

IBEW/NECA Employee

Benefits Conference

Lesyllee White, Esq.

Senior Vice President & Managing Director of Marketing

National Office

2401 Pennsylvania Avenue, NW, Suite 200

Washington, DC 20037 • (202) 331-8055

www.aflcio-hit.com

AFL-CIO Housing Investment Trust 1

About the AFL-CIO Housing Investment Trust

• Open-end institutional mutual fund

• $4.6 billion investment grade fixed-income portfolio

• 368 investors, including 91 IBEW affiliated funds, as of

December 31, 2012

• 100% union construction requirement


HIT Objective and Strategy

OBJECTIVE:

Generate competitive risk-adjusted fixed-income returns, while

financing housing, including affordable and workforce housing, and

creating good union jobs

STRATEGY:

• Construct and manage a portfolio with superior credit quality, higher

yield and similar interest rate risk relative to the Barclays Aggregate

benchmark

• Specialize and overweight in government/agency multifamily MBS,

with a focus on construction-related investments


HIT Track Record - Returns

The performance data quoted represents past performance and is no guarantee of future results. Periods over one year are annualized. Investment results and principal value will fluctuate so that units in the HIT, when redeemed, may be worth more or less than the original cost. The HIT’s current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available from the HIT’s website at www.aflcio-hit.com. Gross performance figures do not reflect the deduction of HIT expenses. Net performance figures reflect the deduction of HIT expenses and are the performance figures investors experience in the HIT. Information about HIT expenses can be found on page 1 of the HIT’s current prospectus.

4.7

1%

6.5

5%

6.4

1%

5.6

0%

4.2

7%

6.0

9%

5.9

6%

5.1

7%

4.2

2%

6.1

9%

5.9

5%

5.1

8%

0%

2%

4%

6%

8%

1-year 3-year 5-year 10-year

HIT Gross HIT Net Barclays Aggregate

Annualized Total Returns vs. Benchmark

As of December 31, 2012

Competitive returns – 20 consecutive calendar years of gross returns exceeding

Barclays Capital Aggregate Bond Index (13 of those years on a net basis)


HIT Track Record – Returns & Diversification

Since 2000, the HIT has provided a significant positive return, whereas the same investment in major stock and

corporate bond indices, would be worth less than the HIT investment and, in some cases, less than the original value. In

addition, the HIT provides diversification lacking in many other fixed-income funds because it does not hold corporate

bonds.

December 31, 1999 - December 31, 2012 Ending Value

(Millions) % Change

HIT $22.45 125%

Barclays Capital Aggregate $22.12 121%

Dow Investment Grade Corporate Index $12.63 26%

U.S. NYSE $12.28 23%

U.S. Dow Jones $11.40 14%

U.S. S&P $9.71 -3%

United Kingdom FTSE 100 $8.51 -15%

Japan Nikkei 225 $5.49 -45%

Growth of $10 Million Invested

Source: Haver Analytics, Bloomberg and the HIT


HIT Track Record – Jobs and Housing*

Since Inception

HIT Commitments – Workers’ Capital Invested $6.6 billion

Total Development Value $10.4 billion

Housing & Healthcare Total Units 106,000

Affordable Units 65,900

Union Jobs 73,900

*Includes HIT’s subsidiary Building America


HIT’s Construction Jobs Initiative

• Launched in 2009 to put union construction workers back on the

job

• New goal is to create 20,000 jobs before the end of 2013

• Large pipeline of projects should add to construction-related

investments going forward

• HIT generated a cumulative 29.1% gross return and a cumulative

26.9% net return from 2009 through 2012

The performance data quoted represents past performance and is no guarantee of future results. Periods over one year are annualized. Investment results and principal value will fluctuate so that units in the HIT, when redeemed, may be worth more or less than the original cost. The HIT’s current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available from the HIT’s website at www.aflcio-hit.com. Gross performance figures do not reflect the deduction of HIT expenses. Net performance figures reflect the deduction of HIT expenses and are the performance figures investors experience in the HIT. Information about HIT expenses can be found on page 1 of the HIT’s current prospectus.


HIT’s Achievements Since 2009

• 16,000 union construction jobs created

• $1.3 billion of workers’ pension capital invested

• $2.9 billion of development

• 56 projects

• Projects in 29 cities

• 17,000 housing units

• 80% affordable housing for working men and women


IBEW Estimated Hours of Work on HIT Projects

2002 to 2012

• Total hours of IBEW work generated: 6.40 million

• Total hours of union work generated: 60.33 million

Under Construction Jobs Initiative (2009 - 2012)

• Total hours of IBEW work generated: 3.54 million

• Total hours of union work generated: 33.42 million


HIT’s Investments

Electchester Housing Companies

Queens, NY

Substantial Rehabilitation

Electchester Housing Companies

HIT Commitment $49,000,000

Total Development Cost $49,000,000

Total Housing Units 2,399

Estimated Union Jobs 175


HIT’s Investments

Charlesview Apartments

Boston, MA

Charlesview Apartments



Total Housing Units 240



HIT’s Investments

333 Harrison Apartments

San Francisco, CA

333 Harrison Apartments






HIT’s Investments

Coquille Valley Hospital

Coquille, OR

Coquille Valley Hospital






HIT’s Investments

The Moderne

Milwaukee, WI

The Moderne






HIT’s Internal Management

HIT

Portfolio Management Marketing

• Market to Taft-

Hartley and Public

Funds

• Investor Relations

• Risk Management

• Investment

Pricing/Structuring

• Trading

Multifamily Investments

• Identify and Source

Construction-

Related Projects

• Work with Mortgage

Bankers,

Developers, Housing

Finance Agencies,

Labor/Community

Organizations, etc.


HIT’s Deal Sourcing & Investment Process

HIT Initial Screening

Proposed

Housing Projects

Referred to HIT

Mortgage Bankers

Developers

• Housing/Healthcare

Development

• 100% Union Labor

• Credit Criteria Met

• Market Interest Rate

on HIT Investment Labor/Community

Organizations

Housing Finance

Agencies

Fails to meet

initial

requirements


HIT’s Deal Sourcing & Investment Process (continued)

Portfolio

Investment

Pricing &

Structuring

HIT Review & Analysis

• Development Team

• Market & Deal

Analysis

• Property

Characteristics

• Labor Concurrence

• Rate

• Size

• Prepayment

• Maturity

• Credit

Enhancement

• Interest Rate

Risk

Management

• Credit Monitor

• Liquidity

• Relative Value

• Trading

Me

ets

init

ial

req

uir

em

en

ts


Market Outlook

Source: US Census Bureau

63

64

65

66

67

68

69

70

Pe

rce

nt

Steady Decline in Home Ownership Since 2004


Market Outlook

Source: US Census Bureau

0

100

200

300

400

500

600

Recent Increase in Demand for Multifamily Housing

(Six-Month Moving Average of Multifamily Starts

at Annual Rate in thousands)


Multifamily/Rental Housing Demand Facts

• Hard to access mortgage credit for single home buyers

• Americans switching to renting vs. owning

• Household formation of 1.2 million per year in a normal

economy

• Nearly 3 million households have become renters since the

housing meltdown – at least 3 million more expected by 2015

• Aging multifamily projects will need substantial rehab in dense

urban markets


HIT Positioned Well

• Strong pipeline and robust multifamily/rental development going forward

• FHA and GSEs still the most competitive source for financing multifamily

development projects

• Portfolio has a strong yield advantage versus the benchmark

• Portfolio has high credit quality versus the benchmark, and is 99% liquid

with emphasis on government guaranteed mortgage securities

• Portfolio has strong prepayment protection

• HIT will continue to help create union jobs and stimulate local economies

Investors should consider the HIT’s investment objectives, risks and expenses carefully before investing. A prospectus containing more complete information may be obtained from the HIT by calling the Marketing and Investor Relations Department collect at 202-331-8055 or by viewing the HIT’s website at www.aflcio-hit.com. The prospectus should be read carefully before investing.

This document contains forecasts, estimates, opinions, and/or other information that is subjective. Statements concerning economic, financial, or market trends are based on current conditions, which will fluctuate. There is no guarantee that such statements will be applicable under all market conditions, especially during periods of downturn. It should not be considered as investment advice or as a recommendation of any kind.


Contact information

2401 Pennsylvania Avenue, NW, Suite 200

Washington, DC 20037

(202) 331-8055

www.aflcio-hit.com

Chang Suh, CFA, Senior Executive Vice President - Chief Portfolio Manager

Lesyllee White, Senior Vice President and Managing Director of Marketing

Paul Sommers, Midwest Regional Marketing Director

Emily Johnstone, Western Regional Marketing Director


Thank you!

Documents

IBEW/NECA Employee Benefits Conference