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yogibearbull
Valued Contributor

TIAA Real Estate Account VA, 10-Q for 9/30/19

https://www.sec.gov/Archives/edgar/data/946155/000162828019013594/tiaa-realestate09302019x10q.htm

At 9/30/19:

Gross Assets  $29.627 billion

Liabilities  $2.590 billion

Net Assets  $27.037 billion  [used for NAV of $435.222]

Loans Receivable  $1.308 billion; 4.2% of Gross Assets, 4.6% of Net Assets

Line of Credit  $500 million for annual fee 0.20%; remains unused

TR  4.27% for 9 months, 5.69% annualized

Income 2.94% annualized

ER  0.80% annualized

Real-Estate Securities  2.9% of Gross Assets, 3.18% of Net Assets

Treasuries/Agencies  10.5% of Gross Assets, 11.51% of Net Assets

Corporate Bonds  3.9% of Gross Assets, 4.27% of Net Assets [This is new]

Recent Transactions are on pg 60-62.

Subsequect Transactions - not found

Note - Some of the decreases in real-estate securities and Treasuries Agencies went into loans-receivable and corporate bonds [new]. This is a good development, IMO. Still unclear about the unused credit line with an annual commitment fee; there is so much liquidity already and TIAA Liquidity Guarantee [at a fee] on top of that.

YBB
6 Replies
GLI2019
Contributor ○

Re: TIAA Real Estate Account VA, 10-Q for 9/30/19

Ah. Now I see what happened with 4th & Madison in Seattle. Nice gain selling ca. 50% ownership.

Thanks for posting, Yogi.

The corporate bonds are interesting but may make the NAV more volatile as fixed income is whipsawed. 

Bob

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Learner
Participant ○

Re: TIAA Real Estate Account VA, 10-Q for 9/30/19

I wondered what average duration of those corporate bonds is.  I did not see a figure in the document; maybe it is buried somewhere.  Their maturity dates are between 2019 and 2023 so we can see that duration is short, which is good in my opinion.

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yogibearbull
Valued Contributor

Re: TIAA Real Estate Account VA, 10-Q for 9/30/19


@Learner wrote:

I wondered what average duration of those corporate bonds is.  I did not see a figure in the document; maybe it is buried somewhere.  Their maturity dates are between 2019 and 2023 so we can see that duration is short, which is good in my opinion.


Agencies are cut drastically. I also see some Treasury Notes [with longer maturities] - Agencies/Treasuries used to have under 1 yr maturity [like cash]. New corporates are short-term but several with longer than 1 yr maturities. Some loans-receivable have lower credit ratings.

Term duration isn't found in the 10-Q.

Seems that T-REA is betting on continued strong economy and may be another Fed rate cut. After all, Ferguson used to be the Fed VC and he may know things that we don't. Timing for all this seems a bit off.

YBB
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yogibearbull
Valued Contributor

Re: TIAA Real Estate Account VA, 10-Q for 9/30/19

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Juris2
Explorer ○○○

Re: TIAA Real Estate Account VA, 10-Q for 9/30/19

Thank you for these documents, Yogi.

I don't see any reason for TREA not to remain in my 403b, at 11.3% of the account's valuation.

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atom
Follower ○○○

Re: TIAA Real Estate Account VA, 10-Q for 9/30/19

I concur with Juris2, and have had TREA at about 16% of my retirement assets for a very long time.  TREA just keeps plodding along.

I'd reconsider should we move into a recession, but see no signs of that happening in the near future.

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