AFL-CIO HOUSING INVESTMENT TRUST
1995 ANNUAL REPORT
A Message from the President of the AFL-CIO
The entire labor movement can take pride in the achievements of the
AFL-CIO Housing Investment Trust in 1995. May marked the 30th
anniversary of the AFL-CIO Investment Program. That same month, the
Trust's assets topped the historic $1 billion mark. The year saw the
Trust's performance reach record levels, both in terms of returns to
investors and lending activity. More than $400 million of union pension
funds were placed in projects nationwide, creating more than 7,200
housing units.
As a board member for 15 years, I have seen firsthand the Trust's
growth as its investment programs brought solid returns to investors,
promoted union jobs, created housing and improved communities throughout
the nation. I witnessed the Trust establish itself as one of the best
managed investment programs in the United States. Now, as the AFL-CIO
president and a member of the Trust's Executive Committee, I'll work to
advance HIT's mission of combining union pension funds with prudent and
rewarding investments in America.
The labor movement has always been interested in building bridges to
give each union member the chance to reach new opportunities, wherever
they might be. Building bridges to prosperity is what the AFL-CIO
Housing Investment Trust is all about. Through working in partnership
with developers, community groups, non-profits and labor organizations,
the Trust creates a nationwide network which links union pension funds
with solid investments.
I am confident that together, the AFL-CIO and its Housing Investment
Trust will continue to meet their shared goal of building bridges to
prosperity for union members everywhere.
/s/ John J. Sweeney
John J. Sweeney
<PAGE>
AFL-CIO HOUSING INVESTMENT TRUST
1995 ANNUAL REPORT
Report to Participants
With thirty years of investing experience behind it, the AFL-CIO
Housing Investment Trust has proved itself to be one of the strongest
long-term performers available to pension investors today.
We take pride in the record accomplishments of the past year, when
the Trust showed its ability to capitalize on favorable market conditions
and achieve unprecedented returns for participants. But of even greater
importance to our participants is the Trust's impressive long-term
record. The Housing Investment Trust's performance over the long run has
consistently been highly competitive with leading fixed-income indices
typically used by the industry as performance benchmarks. As a case in
point, the Trust's three, five and ten year annualized rates of return
exceed both the Salomon Brothers Mortgage Index and the Lehman Brothers
Aggregate Bond Index.
What this demonstrates is that the Trust is an excellent vehicle for
investors concerned about growth and performance over time. In its
thirty years, the AFL-CIO Investment Program has witnessed many market
cycles. It has been through economic upturns and downturns and has seen
interest rates rise and fall. Through these cycles, the Trust has
maintained its steady growth. It has assumed an active investment
management strategy which enables it to take effective advantage of
changing market conditions. It has developed a national network of
investment partners, which assures the Trust's ready access to
competitive investment partners, which assures the Trust's ready access
to competitive investment opportunities for its growing assets,
while its stringent underwriting criteria provide for the security of
these investments.
We are pleased to present the 1995 Annual Report. As a result of
last year's success, the Trust is in the best position ever to meet the
expectations of America's working men and women who look to it for a
secure investment future. To our participants, we pledge our continued
best efforts to provide you the highest level of professional investment
management services you rightfully expect and deserve.
/s/ Richard Ravitch
Richard Ravitch
Chairman, Board of Trustees
<PAGE>
Setting New Performance Records
-------------------------------
The year ended December 31, 1995 proved truly noteworthy for the
AFL-CIO Housing Investment Trust.
The Trust's active management approach took full advantage of the
year's favorable economic climate -- and declining long-term interest
rates -- to bring investors impressive returns that not only surpassed
HIT's previous single-year record, but exceeded the leading fixed-income
indices.
The Trust's gross return on investment of 20.11 percent for the year
ended December 31, 1995, put its performance above the 16.80 percent
reported by the Salomon Brothers Mortgage Index, as well as the 18.50
percent for the Lehman Brothers Aggregate Bond Index. The Trust's gross
rate of return does not reflect the deduction of administrative expenses
for the year which were 0.51 percent of average net assets.
While such single-year gains are notable, earning competitive
long-term returns for participating pension fund investors remained the
principal focus of the Trust. For the three, five and ten year periods
ended December 31, 1995, the Trust achieved total annualized rates of
return of 8.99 percent, 9.59 percent and 10.10 percent, respectively.
The Trust's long-term rates of return also compared favorably to leading
fixed-income indices.
CELEBRATING A LANDMARK YEAR
In May 1995, the Trust celebrated the 30th anniversary of the
AFL-CIO Investment Program. One of the first vehicles for the joint
investment of labor-management pension funds in real estate projects, the
Trust was founded on the idea that the secure investment of union capital
could be a catalyst for increased housing, job generation and economic
development nationwide.
From its first mortgage, issued in 1965 for an urban rehabilitation
project in Washington, D.C., to the financing of its 40,000th housing
unit in May 1995, the Trust has grown to surpass its founders' vision.
Today, the Trust is an industry leader in providing prudent investment
opportunities for union pension funds -- and in building and bettering
America's communities.
<PAGE>
Report to Participants
--------------------------------------
REACHING NEW HEIGHTS IN ASSETS The Trust's total net assets climbed to
historic levels in 1995, exceeding $1 billion for the first time by
mid-year and eventually reaching $1.17 billion by the year's end. The
rise represented a 25 percent increase in net assets since the end of
1994. In a strong show of continuing confidence in the Trust's programs,
a total of $128 million was generated from new investments and the
reinvestment of income. Less than one percent of total net assets were
redeemed, a further measure of participants' on-going approval of the
Trust's philosophy and performance. By year's end, the total number of
Trust participants stood at 387, including the addition of 17 new
investors.
GAINING PORTFOLIO STRENGTH THROUGH DIVERSITY Guiding the Trust's
investments during 1995 was a portfolio management strategy well poised
to maximize the advantages presented by the year's favorable interest
rates. The short term holdings of the Trust stood at 4.4 percent of the
portfolio as of December 31, 1995, with mortgage-backed securities
accounting for 41.5 percent of the holdings. The portion of the
portfolio devoted to FHA mortgages was 35.1 percent and FHA construction
loans, 17.9 percent. The remaining 1.1 percent of the Trust's portfolio
were local initiatives, investments consisting of conventional mortgages
with a loan-to-value ratio of under 50 percent that receive partial
financing from local or state governments or housing finance agencies.
For participants, each of the Trust's investments offered a high
assurance of security. At year's end, 98.8 percent of the Trust's
long-term portfolio was either insured or guaranteed by the U.S.
government or government-sponsored enterprises.
<TABLE>
<CAPTION>
LOAN PRODUCTION VOLUME
YEAR DOLLAR VOLUME IN MILLIONS
SINGLE FAMILY MULTI-FAMILY TOTAL
----------------------------------------------------------------
<C> <C> <C> <C>
1992 $102 $ 67 $169
1993 42 103 145
1994 51 161 212
1995 70 258 328
</TABLE>
<TABLE>
<CAPTION>
PORTFOLIO ALLOCATION AS OF DECEMBER 31, 1995
<S> <C>
MORTGAGE BACKED SECURITIES 41.5%
FHA CONSTRUCTION LOANS 17.9%
LOCAL INITIATIVES 1.1%
FHA MORTGAGES 35.1%
FHA CONSTRUCTION LOANS 17.9%
SHORT TERM 4.4%
</TABLE>
<PAGE>
Report to Participants
--------------------------------------
BREAKING NEW GROUND IN INVESTMENTS Surpassing projected goals by 46
percent, the Trust issued more than $328 million in new investment
commitments in 1995, encompassing over 7,200 housing units in a diverse
mix of single and multi-family developments. Those new commitments
formed the financial foundation for 27 multi-family projects nationwide.
Altogether in 1995, the Trust funded more than $407 million. The
projects spanned the production spectrum, including:
The Imperial Hotel in Atlanta, Georgia, converting a historic
property near the central business district into 120 single room
occupancy and one-bedroom residences, with the Trust's $1.7 million
permanent mortgage leveraging nearly $7.5 million in additional
development financing;
Lowell Square in Boston, Massachusetts, a $30 million mixed-income
cooperative to be constructed in the city's historic West End enabled by
a $12.1 million construction loan and permanent financing from the Trust;
and
Market Heights Apartments in San Francisco, California, a high
quality, affordable housing development and the first project completed
under the Trust-HUD Section 8 initiative.
Building upon the considerable expertise and continuing efficiency of its
professional staff, the Trust was able to target and close such complex
financing arrangements while maintaining an exceptionally low expenses to
net assets ratio of only half of one percent. At the same time, the
total cost-per-unit for expenses dropped from $5.47 a year ago to $5.38.
<TABLE>
<CAPTION>
HOUSING UNITS PRODUCED
NUMBER OF UNITS
YEAR SINGLE FAMILY MULTI-FAMILY TOTAL
----------------------------------------------------
<S> <C> <C> <C>
1992 916 1708 2624
1993 366 1800 2166
1994 510 2862 3372
1995 659 6580 7239
</TABLE>
<PAGE>
Report to Participants
--------------------------------------
FORGING NEW PARTNERSHIPS Over the past three decades, the Trust has
added to the strength of its own management staff by forging key
alliances with leading organizations throughout the housing industry.
The success of the Trust's investment strategies during 1995 was due
in part to the impact of its innovative National Partnership for
Community Investment (National Partnership). Begun in 1993 with the
endorsement of the AFL-CIO Executive Council and the U.S. Conference of
Mayors, the Partnership has played an influential role in coordinating
public and private investments in housing and community development
efforts in cities across the country.
During 1995, the Trust invested over $225 million through the
National Partnership initiative, creating over 5,500 housing units.
These units accounted for almost 76 percent of the Trust's total
investment activity for the year. As a result of almost three years of
activity, the National Partnership has generated over 3,500 construction
jobs and more than 9,200 dwelling units in 44 housing developments.
The alliances forged in 1995 strengthened the Trust's ability to
make sound, secure investments on behalf of its investors -- and enhanced
its reputation for innovation in housing development and finance.
<TABLE>
<CAPTION>
AVERAGE COMMITMENT
MULTI-FAMILY PROJECTS
YEAR DOLLARS PER PROJECT
---------------------------------------------
<S> <C>
1992 $ 4,187,500.00
1993 7,357,143.00
1994 8,944,444.00
1995 10,750,000.00
</TABLE>
<TABLE>
<CAPTION>
TOTAL NET ASSET GROWTH 1985 - 1995
FISCAL YEAR APPROXIMATE FISCAL YEAR-END ASSETS IN $ MILLIONS
---------------------------------------------------------------
<C> <C>
1985 $ 129
1986 151
1987 202
1988 228
1989 285
1990 366
1991 529
1992 662
1993 846
1994 935
1995 1,170
</TABLE>
<PAGE>
Report to Participants
--------------------------------------
BUILDING BRIDGES TO THE FUTURE For the Trust and its investors, the
view ahead looks promising. Building on past successes, the Board of
Trustees recently adopted an ambitious blueprint for sustaining the
Trust's steady performance in the years ahead.
As the AFL-CIO Housing Investment Trust enters its fourth decade of
service, its new initiatives and working partnerships promise to build
bridges of prosperity that will ensure that the Trust meets its
obligation to its participants -- to provide secure, competitive
investment opportunities as well as jobs and affordable housing.
<TABLE>
<CAPTION>
TOTAL RATE OF RETURN - 1 YEAR
<S> <C>
HOUSING INVESTMENT TRUST 20.11%
LEHMAN BROTHERS AGGREGATE BOND INDEX 18.50%
SALOMON BROTHERS MORTGAGE INDEX 16.80%
</TABLE>
<TABLE>
<CAPTION>
ANNUALIZED GROSS RATES OF RETURN - 3, 5 AND 10 YEAR
3 YEAR 5 YEAR 10 YEAR
------------------------------------------------------------------------
<S> <C> <C> <C>
HOUSING INVESTMENT TRUST 8.99% 9.59% 10.10%
LEHMAN BROTHERS AGGREGATE BOND INDEX 8.10% 9.50% 9.60%
SALOMON BROTHERS MORTGAGE INDEX 7.20% 8.90% 9.60%
</TABLE>
<PAGE>
1995 PARTICIPANTS MEETING
------------------------------------------
The 1995 Annual Meeting of Participants was held in Washington D.C. on
May 22, 1995. The following matters were put to a vote of Participants,
through the solicitation of proxies, at the meeting:
- Richard Ravitch was re-elected to chair the Board of Trustees by a
vote of 642,381.5942 for, 9,964.1511 against, 5,906.0005 abstentions,
and 308,394.6158 votes not cast.
- The following schedule details votes pertaining to Trustees who were
elected to three-year terms:
<TABLE>
<CAPTION>
VOTES VOTES VOTES VOTES
TRUSTEE FOR AGAINST ABSTAINED NOT CAST
- ------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
John J. Sweeney 652,438.7222 0 5,813.0236
308,394.6158
Arthur J. Coia 652,315.7603 122.9619 5,813.0236
308,394.6158
Frank Hurt 652,438.7222 0 5,813.0236
308,394.6158
A.L."Mike" Monroe 652,695.9405 0 5,555.8053
308,394.6158
Terrence R. Duvernay 651,907.8349 0 6,343.9109
308,394.6158
Tony Stanley 652,165.0532 0 6,086.6926
308,394.6158
Patricia F. Wiegert 651,907.8349 0 6,343.9109
308,394.6158
</TABLE>
- The following schedule details votes pertaining to Trustees who were
elected to two-year terms.
<TABLE>
<CAPTION>
VOTES VOTES VOTES VOTES
TRUSTEE FOR AGAINST ABSTAINED NOT CAST
- ------------------------------------------------------------------------------
<C> <C> <C> <C> <C>
Anthony R. Presutto 651,907.8349 0 6,343.9109
308,394.6158
Marlyn J. Spear 651,907.8349 0 6,343.9109
308,394.6158
</TABLE>
Other members of the Board of Trustees listed on the inside back cover
were not up for election in 1995. Their terms continued after the date
of the Annual Meeting.
- KPMG Peat Marwick LLP was ratified as the Trust's Public Accountants
by a vote of 652,464.3849 for, 231.5556 against, 5,555.8053
abstentions, and 308,394.6148 votes not cast.
<PAGE>
- -----------------------------------------
AMERICAN FEDERATION OF LABOR AND
CONGRESS OF INDUSTRIAL ORGANIZATIONS
HOUSING INVESTMENT TRUST
FINANCIAL STATEMENTS
DECEMBER 31, 1995
(With Independent Auditors' Report Thereon)
<PAGE>
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
[CAPTION]
<TABLE>
ASSETS
- ------------------------------------------------------------------------------
<S> <C>
Investments, at value (amortized cost $1,112,194,484) $1,159,401,686
Cash 743,284
Accrued interest receivable 8,758,909
Accounts receivable (note 2) 1,157,536
Prepaid expenses and other assets 965,131
- ------------------------------------------------------------------------------
TOTAL ASSETS $1,171,026,546
- ------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------
Accounts payable and accrued expenses 579,941
Redemptions payable -
Refundable deposits 434,647
Income distribution payable,
net of dividends reinvested of $17,140,760 3,118,487
- ------------------------------------------------------------------------------
TOTAL LIABILITIES 4,133,075
- ------------------------------------------------------------------------------
Net assets applicable to participants' equity (certificates
of participation - authorized unlimited; outstanding
1,062,234 units) (note 5) 1,166,893,471
- ------------------------------------------------------------------------------
Net asset value per unit of participation $1,098.53
- ------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1995
[CAPTION]
<TABLE>
FHA MORTGAGES (35.1%)
- ------------------------------------------------------------------------------
Interest Rate Maturity Face Amount Amortized Cost Value
- ------------------------------------------------------------------------------
SINGLE FAMILY
<C> <C> <C> <C> <C>
5.39% Dec-1995 - Nov-1996 $13,843 13,843 13,797
7.75 Jul-2021 - Aug-2021 2,924,958 2,924,958 2,992,320
8.00 Jul-2021 2,550,387 2,563,502 2,643,764
10.31 Feb-2016 80,625 79,834 87,863
11.00 Dec-2017 120,251 120,251 119,049
11.31 Mar-2016 91,561 91,561 101,166
- ------------------------------------------------------------------------------
5,781,625 5,793,949 5,957,959
- ------------------------------------------------------------------------------
MULTI-FAMILY
7.25% Dec-2028 - Feb-2029 34,288,849 34,895,251 34,324,259
7.40 May-2035 4,979,556 4,798,853 5,011,846
7.43 May-2023 18,383,132 18,803,141 18,660,358
7.50 Nov-2022 7,811,097 8,026,708 7,942,909
7.55 Aug-2012 1,020,826 743,396 1,020,826
7.60 Nov-2030 11,416,100 11,480,288 11,750,816
7.65 Dec-2030 2,252,012 2,252,012 2,237,618
7.70 Jan-2028 8,929,712 8,951,817 9,266,096
7.75 Apr-2029 23,492,660 23,492,660 24,438,488
7.80 Nov-2035 4,443,100 4,454,115 4,642,760
7.85 Jun-2024 11,223,700 11,338,480 11,448,174
7.93 Jul-2035 19,824,330 19,834,220 20,717,675
8.00 May-2029 - Aug-2030 12,126,538 12,110,483 12,860,126
8.13 Oct-2032 2,102,679 2,113,019 2,241,922
8.25 Jun-2034 - Sept-2035 18,345,289 18,354,134 18,953,520
8.30 Sep-2033 4,714,386 4,717,039 5,044,393
8.38 Jan-2027 - Nov-2034 39,741,071 39,760,321 42,403,015
8.40 Apr-2012 - Jan-2028 15,039,881 14,645,420 16,006,315
8.50 Apr-2012 - Feb-2035 13,388,432 13,219,242 14,053,561
8.60 Jan-2028 2,083,996 2,087,494 2,229,876
8.63 Dec-2029 4,303,846 4,307,681 4,605,115
8.64 Sep-2028 4,345,665 4,216,273 4,410,850
8.65 Jul-2022 1,458,915 1,459,799 1,561,039
8.70 Jan-2027 - Feb-2033 13,446,545 13,584,890 13,866,026
8.80 Oct-2032 5,701,444 5,704,935 5,815,473
(continued)
</TABLE>
<PAGE>
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1995
[CAPTION]
<TABLE>
FHA MORTGAGES (35.1%)(CONTINUED)
- ------------------------------------------------------------------------------
Interest Rate Maturity Face Amount Amortized Cost Value
- ------------------------------------------------------------------------------
MULTI-FAMILY
<C> <C> <C> <C> <C>
8.88% Sep-2029 - Jun-2034 $20,741,252 20,750,609 22,190,849
9.00 Mar-2029 - Jun-2034 15,442,982 15,315,266 16,478,104
9.13 Jul-2031 - May-2035 16,560,691 16,525,301 17,554,770
9.25 Jun-1998 - Jun-2034 17,114,169 17,210,594 17,723,400
9.31 Dec-2032 188,091 184,615 201,257
9.38 Jun-2032 - Jun-2034 6,862,657 6,952,871 7,343,043
9.50 Jul-2027 384,518 395,765 411,434
9.73 Jan-2035 6,469,783 6,471,620 6,793,272
9.75 Apr-2017 - Jan-2033 6,773,388 6,746,432 7,228,423
10.00 Mar-2031 5,900,965 5,900,965 6,018,985
10.15 Mar-2034 1,979,573 1,979,573 2,098,347
10.45 Jan-2030 1,230,156 1,231,649 1,303,966
11.39 Sep-2028 377,142 372,053 382,800
- ------------------------------------------------------------------------------
384,889,128 358,388,984 401,331,706
- ------------------------------------------------------------------------------
TOTAL FHA MORTGAGES $390,670,753 391,182,933 407,289,665
- ------------------------------------------------------------------------------
(continued)
</TABLE>
<PAGE>
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
FHA CONSTRUCTION LOANS (17.9%)
- --------------------------------------------------------------------------------
- ----------
Interest Rates
Construction Permanent Maturity* Commitment Face Amount Amortized Cost
Value
- --------------------------------------------------------------------------------
- ----------
<C> <C> <C> <C> <C> <C> <C>
6.50% 6.50% Aug-2004 $22,086,600 21,136,561 21,136,561
20,410,052
7.75 7.75 Oct-2037 22,250,000 - -
725,012
7.88 7.88 Apr-2035 11,977,000 11,470,765 11,477,224
11,599,290
7.88 7.88 Feb-2037 13,714,100 9,186,571 9,392,283
9,388,239
7.88 7.88 Mar-2037 4,275,000 440,441 440,441
502,619
7.90 7.25 Sep-2035 12,395,200 9,258,170 8,864,919
9,128,269
8.13 8.13 Aug-2037 15,013,200 1,179,873 1,179,873
1,510,974
8.13 8.13 Jul-2029 14,037,000 11,191,167 11,128,143
11,481,433
8.13 8.13 Aug-2037 12,081,700 - -
279,021
8.13 7.90 Feb-2038 41,836,000 2,992,569 2,785,442
3,610,008
8.25 8.25 Nov-2036 3,645,000 55,140 55,140
177,087
8.30 8.30 Jun-2036 2,702,300 1,596,326 1,596,326
1,650,372
8.50 8.25 Feb-2037 5,265,000 336,340 337,420
533,189
8.50 8.13 Jul-2034 4,075,300 3,872,595 3,875,618
4,066,211
8.65 8.18 Nov-2036 10,079,100 6,632,945 6,506,181
6,881,928
8.65 8.18 Nov-2036 26,999,500 17,675,835 17,278,139
18,342,800
8.65 8.18 Feb-2036 4,247,200 3,219,881 3,157,441
3,324,607
8.75 8.75 Dec-2025 28,902,700 27,442,151 27,448,084
29,465,340
8.75 8.75 May-2036 3,861,700 2,036,446 2,052,165
2,306,765
8.80 8.75 Mar-2037 29,095,200 6,723,596 6,730,005
8,891,096
8.88 8.75 Jan-2036 8,562,900 7,163,120 7,044,816
7,805,338
8.88 8.88 Jun-2036 2,512,100 1,648,665 1,593,621
1,824,512
8.88 8.88 Sep-2035 9,194,900 6,921,606 6,927,682
7,540,490
8.90 7.95 Apr-2036 7,254,600 5,556,795 5,500,740
5,745,807
9.00 9.00 Nov-2035 7,306,500 6,967,289 6,867,291
7,483,539
9.25 9.25 May-2036 20,599,900 14,363,167 14,369,212
15,805,160
9.25 9.20 Nov-2032 3,527,800 1,020,561 981,436
1,010,356
9.25 9.25 Sep-1996 10,106,000 7,093,261 7,104,034
7,218,129
9.40 9.40 Jan-2036 9,706,400 5,647,957 5,653,580
6,555,086
10.00 9.90 Oct-2032 2,261,500 2,185,853 2,185,895
2,322,180
- --------------------------------------------------------------------------------
- ---------
TOTAL FHA CONSTRUCTION LOANS $195,015,646 193,669,712
207,584,909
- --------------------------------------------------------------------------------
- ----------
*Permanent mortgage maturity date
(continued)
</TABLE>
<PAGE>
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1995
[CAPTION]
<TABLE>
GNMA SECURITIES (29.8%)
- ------------------------------------------------------------------------------
Interest Rate Maturity Face Amount Amortized Cost Value
- ------------------------------------------------------------------------------
SINGLE FAMILY
<C> <C> <C> <C> <C>
8.00% Mar-2017 - Nov-2025 $62,517,654 63,757,314 64,674,275
8.50 Jul-2021 - Jun-2022 15,140,205 15,763,293 15,939,026
8.75 Mar-2025 4,091,852 4,264,828 4,317,543
9.00 May-2016 - Jun-2025 9,958,733 10,162,843 10,486,149
9.25 May-2016 - Jan-2025 2,911,270 3,064,723 3,105,506
9.50 Aug-2016 - Jun-2025 9,825,912 10,399,525 10,570,264
10.00 Jun-2019 62,238 62,238 67,742
11.00 Jul-2015 - Sep-2016 256,715 256,384 286,403
11.25 Oct-2015 91,504 91,015 103,342
12.00 Jun-2015 - Aug-2015 73,496 73,339 84,179
12.25 Apr-2015 17,023 17,023 19,369
13.00 Jul-2014 7,196 7,196 8,194
13.25 Dec-2014 8,311 8,311 9,436
13.50 Aug-2014 8,779 8,779 9,937
- ------------------------------------------------------------------------------
104,970,888 107,936,811 109,681,365
- ------------------------------------------------------------------------------
MULTI-FAMILY
6.75% Nov-2028 13,318,210 13,359,852 13,075,882
6.88 Jan-2029 22,716,427 22,800,934 22,865,138
7.50 Apr-2029 3,861,646 3,863,209 4,051,358
7.75 Aug-2030 12,018,776 11,975,319 12,199,058
7.88 Sep-2029 - Oct-2030 27,034,441 26,981,418 27,735,989
8.00 Jun-2030 21,593,939 21,593,985 22,266,904
8.13 Jun-2024 - May-2029 11,936,185 11,860,773 12,174,908
8.25 May-2032 4,660,999 4,742,655 4,736,236
8.50 Jan-2027 - Jul-2029 13,512,621 13,636,849 14,402,740
8.75 Dec-2026 4,452,225 4,413,279 4,592,470
9.00 Jun-2030 - May-2031 12,808,391 12,151,234 13,652,382
9.25 Dec-2030 10,909,797 10,846,060 11,127,993
9.50 Nov-2027 4,647,071 4,647,071 4,845,269
9.63 Feb-2029 17,014,555 17,014,942 17,014,555
9.75 Oct-2032 9,739,197 9,740,180 10,420,940
9.80 Mar-2028 - Oct-2031 11,976,441 11,978,929 12,652,937
9.88 Jul-2031 4,775,444 4,733,288 5,109,725
10.05 May-2026 1,273,104 1,273,104 1,311,297
10.25 Nov-2025 3,922,284 3,856,803 4,025,244
12.55 Jun-2025 6,164,273 6,054,836 6,395,436
- ------------------------------------------------------------------------------
218,336,026 217,524,720 224,656,461
- ------------------------------------------------------------------------------
(continued)
</TABLE>
<PAGE>
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1995
[CAPTION]
<TABLE>
GNMA SECURITIES (29.8%)(CONTINUED)
- --------------------------------------------------------------------------------
- ----------
Interest Rates
Construction Permanent Maturity* Commitment Face Amount Amortized Cost
Value
- --------------------------------------------------------------------------------
- ----------
CONSTRUCTION LOANS
<C> <C> <C> <C> <C> <C> <C>
6.75% 6.75% Jan-2034 $3,733,300 1,531,729 990,614
1,584,961
7.70 7.85 Mar-2037 9,041,900 1,881,606 1,890,977
1,803,861
7.75 8.90 Nov-2034 7,984,400 5,491,338 5,180,495
5,579,594
8.25 8.25 Sep-2036 3,272,600 1,746,385 1,746,386
1,939,239
- --------------------------------------------------------------------------------
- ----------
10,651,058 9,808,472
10,907,655
- --------------------------------------------------------------------------------
- ----------
TOTAL GNMA SECURITIES $333,957,972 335,270,003
345,245,481
- --------------------------------------------------------------------------------
- ----------
*Permanent mortgage maturity date
FNMA SECURITIES (8.3%)
- --------------------------------------------------------------------------------
- ----------
Interest Rate Maturity Commitment Face Amount Amortized Cost Value
- --------------------------------------------------------------------------------
- ----------
SINGLE FAMILY
<C> <C> <C> <C> <C> <C>
7.50% Jul-2024 - Dec-2025 $9,515,625 9,653,473
9,750,542
8.00 May-2015 - Aug-2025 48,107,185 48,310,734
49,836,037
8.25 Oct-2021 335,170 330,902
348,524
8.50 Oct-2021 - Apr-2023 1,120,863 1,118,164
1,169,900
- --------------------------------------------------------------------------------
- ----------
$59,078,843 59,413,273
61,105,003
- --------------------------------------------------------------------------------
- ----------
MULTI-FAMILY
8.00 Nov-2019 - May-2020 7,401,752 7,348,133
7,851,657
8.13 May-2020 8,564,863 8,494,504
9,163,887
8.25 Jun-2008 - Mar-2014 4,153,528 - -
147,827
8.50 Aug-2006 - May-2012 2,850,541 - -
162,510
8.63 Feb-2006 790,000 - -
43,436
8.75 Sep-2025 10,471,368 - -
314,341
9.00 Aug-2021 1,138,553 - -
56,546
9.13 Jul-2012 - Feb-2026 13,210,225 13,167,978
14,704,953
9.25 May-2018 5,514,000 - -
329,291
9.75 Feb-2023 2,008,592 1,982,154
2,209,452
- --------------------------------------------------------------------------------
- ---------
31,185,432 30,992,769
34,983,900
- --------------------------------------------------------------------------------
- ----------
TOTAL FNMA SECURITIES $90,264,275 90,406,042
96,088,903
- --------------------------------------------------------------------------------
- ----------
(continued)
</TABLE>
<PAGE>
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1995
[CAPTION]
<TABLE>
FHLMC SECURITIES (3.4%)
- --------------------------------------------------------------------------------
- ----------
Interest Rate Maturity Face Amount Amortized Cost Value
- --------------------------------------------------------------------------------
- ----------
SINGLE FAMILY
<C> <C> <C> <C> <C>
7.50% Aug-2024 - Dec-2025 $4,730,610 4,778,098
4,850,354
8.00 Jun-2024 - Nov-2025 8,794,184 8,894,504
9,115,721
8.25 Dec-2022 674,366 669,470
701,551
8.50 Jul-2024 - Jun-2025 11,729,947 11,837,203
12,246,797
9.00 Mar-2025 2,744,504 2,794,147
2,887,734
- --------------------------------------------------------------------------------
- ----------
28,673,611 28,973,422
29,802,157
- --------------------------------------------------------------------------------
- ----------
MULTIFAMILY
8.00% Feb-2009 9,068,091 8,996,617
9,249,452
- --------------------------------------------------------------------------------
- ----------
TOTAL FHLMC SECURITIES $37,741,702 37,970,039
39,051,609
- --------------------------------------------------------------------------------
- ----------
</TABLE>
[CAPTION]
<TABLE>
LOCAL INITIATIVES (1.1%)
- --------------------------------------------------------------------------------
- ----------
Interest Rate Maturity* Commitment Face Amount Amortized Cost
Value
- --------------------------------------------------------------------------------
- ----------
CONSTRUCTION LOANS
<C> <C> <C> <C> <C> <C>
8.38% Feb-2007 $995,894 995,894 995,894
1,010,364
9.50 Dec-1995 1,000,000 366,093 369,943
376,552
PERMANENT LOANS
8.00% Dec-2023 998,013 993,483
1,030,616
8.00 May-2025 5,016,300 4,998,289
5,180,478
8.50 Jan-2005 1,016,160 - -
43,548
8.63 Jun-2025 1,464,712 1,464,712
1,460,464
9.13 May-2017 721,823 728,346
757,914
9.50 Apr-2024 753,978 762,337
791,677
9.50 Dec-2011 912,198 920,137
957,808
9.50 Aug-2012 1,492,221 1,498,380
1,566,833
- --------------------------------------------------------------------------------
- ----------
TOTAL LOCAL INITIATIVES $12,721,232 12,731,521
13,176,254
- --------------------------------------------------------------------------------
- ----------
*Permanent mortgage loan maturity date.
(continued)
</TABLE>
<PAGE>
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1995
[CAPTION]
<TABLE>
SHORT-TERM INVESTMENTS (4.4%)
- --------------------------------------------------------------------------------
- ----------
Description Interest Rate Face Amount Amortized Cost Value
- --------------------------------------------------------------------------------
- ----------
<S> <C> <C> <C> <C>
Repurchase Agreement
NationsBank, due 1/2/96 5.75% $ 6,155,000 6,155,000
6,155,000
- --------------------------------------------------------------------------------
- ----------
- --------------------------------------------------------------------------------
- ----------
Commercial Paper
Merrill Lynch & Co., due 1/10/96 5.76 5,000,000 4,992,800
4,992,800
Bear, Stearns & Co., Inc., due 1/16/96 5.77 5,000,000 4,987,979
4,987,979
GW University, due 1/19/96 5.80 5,000,000 5,000,000
5,000,000
BI Funding, Inc., due 1/24/96 5.70 5,000,000 4,981,792
4,981,792
Clipper Receivables Corp., due 1/30/96 5.87 5,000,000 4,976,357
4,976,357
American General Corp., due 2/9/96 5.65 5,000,000 4,969,396
4,969,396
McKenna Triangle National, due 2/13/96 5.66 5,000,000 4,966,197
4,966,197
Falcon Asset Security Corp., due 2/14/96 5.75 5,000,000 4,964,861
4,964,861
American Express Credit, due 3/8/96 5.65 5,000,000 4,947,424
4,948,055
- --------------------------------------------------------------------------------
- ----------
$45,000,000 44,786,806
44,787,437
- --------------------------------------------------------------------------------
- ----------
Money Market Account
NationsBank 3.41 22,428 22,428
22,428
- --------------------------------------------------------------------------------
- ----------
TOTAL SHORT-TERM INVESTMENTS 51,177,428 50,964,234
50,964,865
- --------------------------------------------------------------------------------
- ----------
TOTAL INVESTMENTS $1,111,549,008 1,112,194,484
1,159,401,686
- --------------------------------------------------------------------------------
- ----------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
STATEMENT OF OPERATIONS
DECEMBER 31, 1995
[CAPTION]
<TABLE>
INVESTMENT INCOME:
- -----------------------------------------------------------------------------
<S>
<C> <C>
INTEREST:
FHA Mortgages $ 28,829,497
FHA Construction Loans 11,858,135
GNMA Securities 27,150,162
FNMA Securities 8,123,388
FHLMC Securities 3,692,242
Local Initiatives 927,185
Short-term investments 5,608,826
Discount amortization and other income 106,890
- -----------------------------------------------------------------------------
TOTAL INCOME 86,296,325
- -----------------------------------------------------------------------------
EXPENSES:
Salaries and fringe benefits 3,118,496
Legal 212,781
Consultant Fees 114,198
Auditing and tax accounting fees 74,725
Insurance 142,054
Marketing and sales promotion 465,765
Program development 97,333
Trustee expenses 37,309
General expenses 1,100,924
- -----------------------------------------------------------------------------
TOTAL EXPENSES 5,363,285
- ------------------------------------------------------------------------------
Investment Income - net 80,933,040
- ------------------------------------------------------------------------------
Net realized gain on sale of investments 269,303
Change in unrealized appreciation
on investments for the year (note 4) 105,054,153
- ------------------------------------------------------------------------------
Net gain on investments 105,323,456
- ------------------------------------------------------------------------------
Net increase in net assets resulting from operations $186,256,496
- ------------------------------------------------------------------------------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
DECEMBER 31, 1995
YEARS ENDED DECEMBER 31, 1995 AND 1994
[CAPTION]
<TABLE>
1995
1994
- --------------------------------------------------------------------------------
- ----------
<S> <C> <C>
Increase in net assets from operations:
Investment income - net $80,933,040
69,311,819
Net realized gain (loss) on sale of investments 269,303
(1,035,485)
Change in unrealized appreciation (depreciation) 105,054,153
(91,731,825)
- --------------------------------------------------------------------------------
- ----------
Net increase (decrease) in net assets resulting from
operations $186,256,496
(23,455,491)
- --------------------------------------------------------------------------------
- ----------
Distributions paid to participants or reinvested from:
Investment income - net (80,582,576)
(69,311,869)
Increase in net assets from share transactions:
Proceeds from the sale of 57,062 and 125,467 units of
participation in 1995 and 1994, respectively 59,904,702
130,567,310
Dividend reinvestment of 64,132 and 61,387 units of
participation in 1995 and 1994, respectively 68,442,605
62,555,266
Payments for redemption of 2,337 and 10,578 units of
participation in 1995 and 1994, respectively (2,391,945)
(10,884,619)
- --------------------------------------------------------------------------------
- ----------
Net increase from share transactions 125,955,362
182,237,957
- --------------------------------------------------------------------------------
- ----------
Total increase 231,629,282
89,470,597
- --------------------------------------------------------------------------------
- ----------
Net assets at beginning of year 935,264,189
845,793,592
- --------------------------------------------------------------------------------
- ---------
Net assets at end of year $1,166,893,471
935,264,189
- --------------------------------------------------------------------------------
- ---------
See accompanying notes to financial statements.
</TABLE>
<PAGE>
AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENT
DECEMBER 31, 1995
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- ------------------------------------------------------------------------------
The American Federation of Labor and Congress of Industrial Organizations
(AFL-CIO) Housing Investment Trust (the Trust) is a common law trust created
under the laws of the District of Columbia and is registered under the
Investment Company Act of 1940 as a no-load, open-end investment company. The
Trust has obtained certain exemptions from the requirements of the Investment
Company Act of 1940 which are described in the Trust's prospectus.
Participation in the Trust is limited to labor organizations and eligible
pension, welfare, and retirement plans which have beneficiaries who are
represented by labor organizations.
The following is a summary of significant accounting policies followed by
the Trust in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles.
INVESTMENT VALUATION
Investments are presented at value. Value determinations are summarized
by specific category of investment as follows:
Long-term investments consisting of permanent mortgages, mortgage-backed
securities, construction loans and participation certificates are valued using
published prices or dealer bids, supported by the present value of the
projected cash flows discounted using market based discount and prepayment
rates, developed individually for each security. The market-based discount
rate is composed of the sum of a risk-free yield (i.e., a U.S. Treasury Note
with a weighted average life comparable to the security being valued) and
adjusted for an appropriate risk premium. The risk premium reflects actual
premiums in the marketplace over the yield on U.S. Treasury securities of a
comparable risk and maturity to the security being valued. On loans for which
the Trust finances the construction and permanent mortgage, value is
determined based upon the total amount of the commitment for the term of the
construction loan plus the permanent mortgage loan. For construction only
loans, the outstanding principal balance of the loan is used to approximate
value, assuming no decline in credit quality.
Short-term investments consisting of repurchase agreements, commercial
paper and money market accounts which mature less than 60 days from the
balance sheet date are valued at amortized cost, which approximates value.
Short-term investments which mature more than 60 days from the balance sheet
date are valued at the last reported sales price on the last business day of
the month or the mean between the reported bid and ask price if there was no
<PAGE>
sale. Short-term investments maturing more than 60 days from the balance sheet
date for which there are no quoted market prices are valued to reflect current
market yields for securities with comparable terms and interest rates.
Additional information relative to investment terms and credit risk are
described more fully in the Trust's prospectus.
FEDERAL INCOME TAXES
The Trust's policy is to comply with the requirements of the Internal
Revenue Code that are applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders. Therefore, no
federal income tax provision is required.
The total cost of the portfolio of investments for federal income tax
purposes, approximates the cost of all investments for financial statement
purposes.
DISTRIBUTIONS TO PARTICIPANTS
At the end of each calendar quarter (March 31, June 30, September 30, and
December 31), net investment income earned in the preceding three months is
distributed to existing participants based on a pro rata basis. Net realized
gains are distributed to existing participants at year end on a pro rata
basis. Amounts distributable, but not disbursed, as of the balance sheet date
are classified as income distribution payable.
Participants redeeming their certificates are paid their pro rata share
of undistributed net income accrued to the month-end of redemption.
The Trust offers an income reinvestment plan which allows current
participants to automatically reinvest their income distribution into the
Trust's units of participation. Total reinvestment of distributable income
quarterly approximated 85 percent for the year ended December 31, 1995.
INVESTMENT INCOME
Interest income is recognized on an accrual basis. Commitment fees, points
and other discounts or premiums resulting from the funding or acquisition of
mortgage loans or mortgage-backed securities are accounted for as an
adjustment to the cost of the investment and amortized over the estimated life
of the mortgage loan or mortgage-backed security, using an amortization method
which approximates the effective interest method. Realized gains and losses
from investment transactions are recorded on the trade date using an
identified cost basis.
(2) TRANSACTIONS WITH AFFILIATES
- ------------------------------------------------------------------------------
During the year ended December 31, 1995, certain members of the Trust's
management provided services to the AFL-CIO Building Investment Trust, a
Maryland Group Trust managed by a Maryland state bank insured by the federal
Deposit Insurance Corporation. The AFL-CIO has granted permission to use its
name. The total cost of these services to the Trust and related expenses,
<PAGE>
during fiscal year 1995, amounted to $937,365. The Trust was reimbursed for
$606,068 of these costs with the remaining amount of $331,297 included in the
accompanying financial statements as accounts receivable.
(3) COMMITMENTS
- ------------------------------------------------------------------------------
The assets of the Trust are invested in short-term investments until they are
required to fund commitments for construction loans, mortgage-backed
securities, participation certificates or permanent mortgages. At December
31, 1995, the Trust had remaining unfunded commitments of approximately
$283,166,000 to fund construction and permanent mortgages and other
investments. The Trust is required to maintain a segregated account of
securities in an amount no less than the total unfunded commitments less
short-term investments.
<PAGE>
AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENT
DECEMBER 31, 1995
(4) INVESTMENT TRANSACTIONS
- ----------------------------------------------------------------------------
A summary of long-term investment transactions, at amortized cost for the
separate instruments included in the Trust's investment portfolio, at
amortized cost, for the year ended December 31, 1995, follows:
[CAPTION]
<TABLE>
FHA
FHA Construction GNMA FNMA FHLMC
Local
Mortgages Loans Securities Securities Securities
Initiatives
- --------------------------------------------------------------------------------
- -------
<S> <C> <C> <C> <C>
<C> <C>
Balance,
January 1, 1995 314,284,670 125,749,219 300,858,660
138,316,083 66,168,222 10,355,237
Purchases and construction
loan advances, net of discounts 73,816,822 144,868,289 131,478,621
36,193,945 18,381,348 2,440,734
Amortization of
discounts(premiums) 1,524,539 87,870 218,591
(69,203) (90,388) 27,065
Transfers Principal reductions 71,054,840 (71,054,840) - -
- -
(69,497,938) (5,980,826)
(97,285,869)(84,034,783) (46,489,143) (91,515)
- --------------------------------------------------------------------------------
- --------------------------------
Balance,
December 31, 1995 $391,182,933 193,669,712 335,270,003
90,406,042 37,970,039 12,731,521
- --------------------------------------------------------------------------------
- --------------------------------
</TABLE>
[CAPTION]
<TABLE>
For the year ended December 31, 1995, the changes in gross unrealized
appreciation and depreciation in the value of investments were:
<S> <C>
Unrealized appreciation $113,725,515
Unrealized depreciation (8,671,362)
- ------------------------------------------------------------------------------
NET UNREALIZED APPRECIATION CHANGE $105,054,153
- -----------------------------------------------------------------------------
</TABLE>
As of December 31, 1995, the accumulated unrealized appreciation of securities
was $47,207,204; accumulated undistributed net realized loss on investment
transactions totaled ($844,004).
<PAGE>
AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
NOTES TO FINANCIAL STATEMENT
DECEMBER 31, 1995
(5) PARTICIPANTS' EQUITY
- ------------------------------------------------------------------------------
[CAPTION]
<TABLE>
Participants' equity consisted of the following at December 31, 1995
<S> <C>
Amount invested and reinvested by current participants $1,120,231,281
Excess of redemption over issue price for units of participation (51,474)
Accumulated unrealized appreciation in the value of investments 47,207,204
Accumulated undistributed net realized loss on investments
(844,004)
Accumulated undistributed investment income - net 350,464
- ------------------------------------------------------------------------------
$1,166,893,471
- ------------------------------------------------------------------------------
</TABLE>
(6) RETIREMENT AND DEFERRED COMPENSATION PLANS
- -------------------------------------------------------------------------------
The Trust participates in the AFL-CIO Staff Retirement Plan, which is a
multi-employer defined benefit pension plan, covering substantially all
employees. This plan was funded by employer contributions, at rates
approximating 17.7 percent of employees' salaries during 1995. The total
Trust pension expense for 1995 was approximately $437,000.
The Trust also participates in a deferred compensation plan, referred to as a
401(k) plan, covering substantially all employees. This plan permits an
employee to defer the lesser of 10 percent of their annual salary or the
applicable IRS limit. The Trust matches dollar-for-dollar the first $1,050 of
employee contributions. The Trust's 401(k) matching contribution expense for
1995 was approximately $42,000.
<PAGE>
AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL
ORGANIZATIONS HOUSING INVESTMENT TRUST
SUPPLEMENTARY INFORMATION - SELECTED PER SHARE DATA AND RATIOS
DECEMBER 31, 1995
[CAPTION]
<TABLE>
YEARS ENDED DECEMBER 31, 1995, 1994, 1993, 1992, AND 1991
- -------------------------------------------------------------------------------
1995 1994 1993 1992 1991
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Per share data
Investment income $86.50 87.13 91.83 87.28 98.43
Expenses (5.38) (5.47) (5.90) (5.74) (6.44)
- --------------------------------------------------------------------------------
Investment income - net 81.12 81.66 85.93 81.54 91.99
Distributions from
investment income - net (80.77) (81.66) (83.64) (81.54) (91.99)
Distributions from realized
gains on investments - - (2.29) - -
- --------------------------------------------------------------------------------
Net asset value:
Beginning of period 991.40 1,102.58 1,086.40 1,106.90 1,054.91
Net realized and unrealized
gain (loss) on investments.
Net increase (decrease)
in net asset value 107.13 (111.18) 16.18 (20.50) 51.99
- -------------------------------------------------------------------------------
END OF PERIOD $1,098.53 991.40 1,102.58 1,086.40 1,106.90
- -------------------------------------------------------------------------------
</TABLE>
Ratios
Ratio of expenses to average net
assets .5% .5% .5% .5% .6%
- -----------------------------------------------------------------------------
Ratio of net investment income to
average net assets 7.6% 7.8% 7.5% 7.4% 8.4%
- -----------------------------------------------------------------------------
Portfolio turnover rate 31.2% 27.5% 24.2% 22.1% 9.5%
- -----------------------------------------------------------------------------
Number of units outstanding
at end of period 1,062,234 943,378 767,101 609,295 477,668
- ------------------------------------------------------------------------------
<PAGE>
INDEPENDENT AUDITORS' REPORT
- ------------------------------------------------------------------------------
TO THE PARTICIPANTS AND TRUSTEES OF THE AMERICAN FEDERATION
OF LABOR AND CONGRESS OF INDUSTRIAL ORGANIZATIONS HOUSING
INVESTMENT TRUST:
We have audited the accompanying statement of assets and liabilities of the
American Federation of Labor and Congress of Industrial Organizations Housing
Investment Trust, including the schedule of portfolio investments, as of
December 31, 1995, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in
the
period then ended, and the selected per share data and ratios for each of the
five years in the period then ended. These financial statements and per
share
data and ratios are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and per
share data and ratios based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and per share data and ratios are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
verification by examination, or confirmation by correspondence with the
custodians, of investments owned at December 31, 1995. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and selected per share data and
ratios referred to above present fairly, in all material respects, the
financial position of the American Federation of Labor and Congress of
Industrial Organizations Housing Investment Trust as of December 31, 1995,
and the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and the
selected per share data and ratios for each of the five years in the period
then ended, in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
JANUARY 26, 1996
<PAGE>
AFL-CIO HOUSING INVESTMENT TRUST
BOARD OF TRUSTEES AND OFFICERS
TRUSTEES
--------------------------
RICHARD RAVITCH, CHAIRMAN SIGURD LUCASSEN
Chairman* Former President
Ravitch & Rice United Brotherhood of
Carpenters and Joiners of America
JOHN J. SWEENEY
President* GEORGE A. MILLER
AFL-CIO Executive Vice President
Mason Contractors Association
RICHARD L. TRUMKA of America
Secretary-Treasurer
AFL-CIO GERALD W. McENTEE
President
CATHERINE BAKER KNOLL American Federation of State,
Treasurer County and Municipal Employees
Commonwealth of Pennsylvania
A.L. "MIKE" MONROE
ARTHUR A. COIA President
President International Brotherhood of
Laborers' Internation Union Painters and Allied Trades
of North America
JACK F. MOORE
TERRENCE R. DUVERNAY Secretary
Legg Mason Public Finance International Brotherhood of
Electrical Workers
ALFRED J. FLEISCHER
Chairman MARLYN J. SPEAR
Fleisher-Seegar Construction Investment Coordinator
Company Milwaukee & Vicinity Building
Trades United Pension Trust Fund
ROBERT A. GEORGINE
President TONY STANLEY
Building and Construction Vice President*
Trades Department, AFL-CIO TransCon Builders, Inc.
FRANK HANLEY PATRICIA F. WIEGERT
President Retirement Administrator
International Union Contra Costa County Employees'
of Operating Engineers Retirement Association
FRANK HURT
President IN MEMORIAM
Bakery, Confectionery & Tobacco ANTHONY R. PRESUTTO
Workers International Union Director of Labor Relations
Entenmann's, Inc.
JOHN T. JOYCE 1932-1996
President
International Union of Bricklayers
and Allied Craftsworkers
*Executive Committee Members
H.D. LAVERE
President During the year, Board members Lane
Michigan Carpentry, Inc. & Kirkland and Thomas R. Donahue
Thunderbird Homes resigned. In December the Board
elected Richard Trumka to fulfill
the remainder of Mr.Kirkland's term.
<PAGE>
EXECUTIVE OFFICERS
------------------------
STEPHEN COYLE
Chief Executive Officer
WILLIAM C. TUTT
Financial Manager
MICHAEL M. ARNOLD
Director of Investor Relations
HELEN R. KANOVSKY
General Counsel
REGIONAL OFFICES
-------------------------
NATIONAL OFFICE
Byron Giltz
Northeast Regional Executive
1717 K Street, NW
Suite 707
Washington, DC 20006
202/331-8055
MIDWEST OFFICE
Phil Couture
Midwest Regional Executive
5515 Southwyck Blvd., Suite 100
Toledo, Ohio 43614
419/865-0048
WEST COAST OFFICE
Jeffrey Greendorfer
Western Regional Executive
650 California Street, 9th Floor
San Francisco, CA 94108
415/433-3044
---------------------------------
COUNSEL OF RECORD INVESTMENT ADVISER
Swidler & Berlin, Chartered Wellington Management Company
Washington, D.C. Boston, Massachusetts
CERTIFIED PUBLIC ACCOUNTANTS VALUATION CONSULTANTS
KPMG Peat Marwick LLP Chartered Capital Advisers, Inc.
Washington, D.C. New York, New York
