1The TIAA Real Estate Account is truly diversified within the larger asset class of commercial real estate. An investment in REA, when combined with other appropriate investments in different asset classes, can help an investor achieve portfolio diversification. Diversification is a technique to help reduce risk. It is not guaranteed to protect against loss.
2Returns are largely unaffected by movements in stock or bond markets since returns are generated by rental income and changes in property values. For the 10-year period ended June 30, 2019, REA correlation to the S&P 500 Index and Barclay’s Aggregate Bond Index was 0.09 and -0.11, respectively. Over this same period, correlation between the FTSE Nareit All Equity REIT Index and the S&P 500 Index was 0.61. You cannot invest directly in any index. Index returns do not reflect a deduction for fees and expenses.
3Direct real estate has delivered higher risk-adjusted returns than bonds since the account’s inception in 1995. As of June 30, 2019, the REA since-inception Sharpe ratio (a measure of risk-adjusted return) was 1.1, while the Bloomberg Barclays U.S. Aggregate Bond index was 0.9 over the same period. The REA inception date is 10/2/1995. You cannot invest directly in any index. Index returns do not reflect a deduction for fees and expenses. Past performance does not guarantee future results.
*Other payout options are available. Any guarantees under annuities issued by Teachers Insurance and Annuity Association of America are subject to its’ claims-paying ability. Payments from the TIAA Real Estate Account will rise or fall based on investment performance.
The TIAA Real Estate Account is a variable annuity product and an insurance separate account of TIAA.
Withdrawals of earnings are subject to ordinary income tax, plus a possible federal 10% penalty if you make a withdrawal before age 59 ½. Transfers out of the account to another TIAA or to a CREF account or into another investment option can be executed at any time, but are limited to once per calendar quarter, although some plans may allow systematic transfers that result in more than one transfer per calendar quarter, and certain other limited exceptions to this restriction apply.
The real estate industry is subject to various risks including fluctuations in underlying property values, expenses and income, and potential environmental liabilities.
In general, the value of the TIAA Real Estate Account will fluctuate based on the underlying value of the direct real estate or real estate-related securities in which it invests. The risks associated with investing in the Real Estate Account include the risks associated with real estate ownership including among other things fluctuations in underlying property values, higher expenses or lower income than expected, risks associated with borrowing and potential environmental problems and liability, as well as risks associated with participant flows and conflicts of interest. For more complete discussion of these and other risks, please consult the prospectus.
You should consider the investment objectives, risks, charge and expense carefully before investing. Please call 877-518-9161 or to go to TIAA.org/prospectuses for current product and fund prospectuses that contain this and other information. Please read prospectuses carefully before investing.
Past performance does not guarantee future results.
The TIAA Real Estate Account is an insurance separate account of Teachers Insurance and Annuity Association of America, New York, NY. TIAA-CREF Individual & Institutional Services, LLC, Member FINRA, distributes securities products.
For its stability, claims-paying ability and overall financial strength, Teachers Insurance and Annuity Association of America (TIAA) is a member of one of only three insurance groups in the United States to currently hold the highest rating available to U.S. insurers from three of the four leading insurance company rating agencies: A.M. Best (A++ as of 6/19), Fitch (AAA as of 4/20) and Standard & Poor's (AA+ as of 12/19), and the second highest possible rating from Moody's Investors Service (Aa1 as of 8/19). There is no guarantee that current ratings will be maintained. The financial strength ratings represent a company's ability to meet policyholders' obligations and do not apply to variable annuities or any other product or service not fully backed by TIAA's claims-paying ability. The ratings also do not apply to the safety or the performance of the variable accounts, which will fluctuate in value.