TIAA Real Estate Account · NASDAQ:QREARX

TIAA Real Estate Account — Investor Presentation (2021)

14 slides from TIAA Real Estate Account's investor presentation, 2021

  1. Slide 1: 2020 NACUBO-TIAA Study of Endowments

    2020 NACUBO-TIAA Study of Endowments

  2. Slide 2: Summary observations from the 2020 NACUBO-TIAA Study of Endowments

    Summary observations from the 2020 NACUBO-TIAA Study of Endowments 705 $905 million colleges, universities, and education-related average endowment size reported, up 1.6% foundations completed the FY20 survey. from 12 months earlier. $637.7 billion 80% represented in the FY20 survey. of total market

  3. Slide 3: Diminishing returns: Era of muted returns perhaps has arrived

    Diminishing returns: “Era of muted returns” perhaps has arrived, with likely implications for financial strategies Standard target return for endowments: 7.5% If muted returns continue, endowments will need to consider all their possible levers to meet targeted hurdle rates. 2 Source: 2020 NACUBO-TI

  4. Slide 4: Endowment spending: Up 4% from FY2019

    Endowment spending: Up 4% from FY2019  Institutions spent $23.3 billion from endowments, up 4% from FY2019  70% of institutions increased endowment spending; an average increase of about $3.3 million  Endowments’ average effective annual spending rate in FY2020 was 4.59%, up from 4.36% in FY2019

  5. Slide 5: Endowment spending: Almost half increased support for institutional operating budgets

    Endowment spending: Almost half increased support for institutional operating budgets, while seeing cash flow and new gifting decline Endowments are a key instrument for institutional planning.  More than 40% reported institution’s cash flow declined  New gifting in FY2020 declined by about 16% vs

  6. Slide 6: Vast majority of institutions sought CARES Act relief

    Vast majority of institutions sought CARES Act relief Visit NACUBO.org/news for comprehensive coverage of the CARES Act and other pandemic relief aid. More than 80% of endowments said their institution sought CARES Act funding, including over 90% of private colleges and universities. Note: “Others”

  7. Slide 7: Asset allocations: Market realities could force a rethink (continued)

    Asset allocations: Market (especially interest rate) realities could force a rethink (continued) Smaller endowments were heavily concentrated in domestic public equities and investment-grade fixed income. Larger institutions used larger concentrations of alternative investments that may offer a coun

  8. Slide 8: Asset allocations: Market realities could force a rethink

    Asset allocations: Market (especially interest rate) realities could force a rethink In general, institutions will need to be especially thoughtful about their strategic/tactical positioning as pandemic impacts continue to play out amid an uneven global economic recovery and a persistent, low-rate e

  9. Slide 9: Asset allocations: Market realities could force a rethink (continued)

    Asset allocations: Market (especially interest rate) realities could force a rethink (continued) Smaller endowments reported significantly greater exposure to fixed income, particularly investment- grade securities, likely viewing bonds as a hedge against equity market volatility.  Example: The all

  10. Slide 10: Responsible investing: Opportunity to expand implementation

    Responsible investing: Opportunity to expand implementation Endowments generally have yet to integrate responsible investing criteria into portfolio construction in a meaningful way across asset classes.  Endowments are most likely to integrate responsible investing criteria into portfolio construc

  11. Slide 11: Diversity in asset management

    Diversity in asset management 6% of all survey respondents reported that their institution has a formal policy addressing diversity and inclusion related to investment manager selection. Institutions with the largest endowments are significantly more likely to have diverse managers in their portfoli

  12. Slide 12: NACUBO and TIAA

    NACUBO (@TIAA

  13. Slide 13: NACUBO-TIAA Study of Endowments

    2020 NACUBO-TIAA Study of Endowments

  14. Slide 14: Disclosure

    Disclosure ©2021 Teachers Insurance and Annuity Association of America-College Retirement Equities Fund, 730 Third Avenue, New York, NY 10017 TIAA-CREF Individual & Institutional Services, LLC, and Nuveen Securities, LLC, Members FINRA, distribute securities products. This material is for informatio

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