-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QoQaSlafuGgZ6T2OTrUyAM8Fth4gPLoNDtF6vWAHquMKk50LKQ2ibzKYoHXT3Lqi H3yIwlI2gHLER19n0F2Iag== 0000225030-96-000005.txt : 19960329 0000225030-96-000005.hdr.sgml : 19960329 ACCESSION NUMBER: 0000225030-96-000005 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960311 DATE AS OF CHANGE: 19960328 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AFL CIO HOUSING INVESTMENT TRUST CENTRAL INDEX KEY: 0000225030 STANDARD INDUSTRIAL CLASSIFICATION: IRS NUMBER: 526220193 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1934 Act SEC FILE NUMBER: 811-03493 FILM NUMBER: 96534536 BUSINESS ADDRESS: STREET 1: 1717 K STREET NW STREET 2: STE 707 CITY: WASHINGTON STATE: DC ZIP: 20006 BUSINESS PHONE: 2023318055 MAIL ADDRESS: STREET 1: 1717 K ST NW SUITE 707 CITY: WASHINGTON STATE: DC ZIP: 20006 ARS 1 AFL-CIO HOUSING INVESTMENT TRUST - - - -------------------------------- February 28, 1996 MEMORANDUM - - - ---------- TO: Participants, AFL-CIO Housing Investment Trust FROM: Michael M. Arnold, Director of Investor Relations SUBJECT: 1995 Audited Financial Statements - - - ------------------------------------------------------------------------------ I am pleased to enclose a copy of the Audited Financial Statements and Independent Auditors' Report covering the operations of the AFL-CIO Housing Investment Trust for the year ended December 31, 1995. 1995, the 30th anniversary of the AFL-CIO Investment Program, was a landmark year for the Housing Investment Trust, with assets topping $1 billion for the first time and investments in single and multi-family housing at record levels. As of December 31, there were $1.17 billion in total net assets and 387 participants in the Trust. The Trust placed over $400 million in housing projects last year and issued $258 million in new financing commitments. The Trust's 1995 Annual Report is being finalized and will be ready for distribution in March. In the meantime, if you have any questions or need additional information, please do not hesitate to contact me. MMA/spt opeiu #3,afl-cio Enclosure - - - -------------------- 1717 K Street NW, Suite 707, Washington D.C. 20006 202/331-8055 Fax 202/331-8190 - - - ----------------------------------------- AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST FINANCIAL STATEMENTS DECEMBER 31, 1995 (With Independent Auditors' Report Thereon) AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST STATEMENT OF ASSETS AND LIABILITIES DECEMBER 31, 1995 [CAPTION] ASSETS - - - ------------------------------------------------------------------------------ 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.
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1995 [CAPTION] FHA MORTGAGES (35.1%) - - - ------------------------------------------------------------------------------ Interest Rate Maturity Face Amount Amortized Cost Value - - - ------------------------------------------------------------------------------ SINGLE FAMILY 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)
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1995 [CAPTION] FHA MORTGAGES (35.1%)(CONTINUED) - - - ------------------------------------------------------------------------------ Interest Rate Maturity Face Amount Amortized Cost Value - - - ------------------------------------------------------------------------------ MULTI-FAMILY 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)
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1995
FHA CONSTRUCTION LOANS (17.9%) - - - -------------------------------------------------------------------------------- - - - ---------- Interest Rates Construction Permanent Maturity* Commitment Face Amount Amortized Cost Value - - - -------------------------------------------------------------------------------- - - - ---------- 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)
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1995 [CAPTION] GNMA SECURITIES (29.8%) - - - ------------------------------------------------------------------------------ Interest Rate Maturity Face Amount Amortized Cost Value - - - ------------------------------------------------------------------------------ SINGLE FAMILY 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)
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1995 [CAPTION] GNMA SECURITIES (29.8%)(CONTINUED) - - - -------------------------------------------------------------------------------- - - - ---------- Interest Rates Construction Permanent Maturity* Commitment Face Amount Amortized Cost Value - - - -------------------------------------------------------------------------------- - - - ---------- CONSTRUCTION LOANS 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 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)
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1995 [CAPTION] FHLMC SECURITIES (3.4%) - - - -------------------------------------------------------------------------------- - - - ---------- Interest Rate Maturity Face Amount Amortized Cost Value - - - -------------------------------------------------------------------------------- - - - ---------- SINGLE FAMILY 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 - - - -------------------------------------------------------------------------------- - - - ----------
[CAPTION] LOCAL INITIATIVES (1.1%) - - - -------------------------------------------------------------------------------- - - - ---------- Interest Rate Maturity* Commitment Face Amount Amortized Cost Value - - - -------------------------------------------------------------------------------- - - - ---------- CONSTRUCTION LOANS 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)
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST SCHEDULE OF PORTFOLIO INVESTMENTS DECEMBER 31, 1995 [CAPTION] SHORT-TERM INVESTMENTS (4.4%) - - - -------------------------------------------------------------------------------- - - - ---------- Description Interest Rate Face Amount Amortized Cost Value - - - -------------------------------------------------------------------------------- - - - ---------- 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.
AMERICAN FEDERATION of LABOR and CONGRESS of INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST STATEMENT OF OPERATIONS DECEMBER 31, 1995 [CAPTION] INVESTMENT INCOME: - - - -------------------------------------------------------------------------------- - - - ---------- 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.
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] 1995 1994 - - - -------------------------------------------------------------------------------- - - - ---------- 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. 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 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, 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. 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:
FHA FHA Construction GNMA FNMA FHLMC Local Mortgages Loans Securities Securities Securities Initiatives - - - -------------------------------------------------------------------------------- - - - -------------------------------- 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 - - - -------------------------------------------------------------------------------- - - - --------------------------------
[CAPTION] For the year ended December 31, 1995, the changes in gross unrealized appreciation and depreciation in the value of investments were: Unrealized appreciation $113,725,515 Unrealized depreciation (8,671,362) - - - ------------------------------------------------------------------------------ NET UNREALIZED APPRECIATION CHANGE $105,054,153 - - - -----------------------------------------------------------------------------
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). AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST NOTES TO FINANCIAL STATEMENT DECEMBER 31, 1995 (5) PARTICIPANTS' EQUITY - - - ------------------------------------------------------------------------------ [CAPTION] Participants' equity consisted of the following at December 31, 1995 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 - - - ------------------------------------------------------------------------------
(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. AMERICAN FEDERATION OF LABOR AND CONGRESS OF INDUSTRIAL ORGANIZATIONS HOUSING INVESTMENT TRUST SUPPLEMENTARY INFORMATION - SELECTED PER SHARE DATA AND RATIOS DECEMBER 31, 1995 [CAPTION] YEARS ENDED DECEMBER 31, 1995, 1994, 1993, 1992, AND 1991 - - - -------------------------------------------------------------------------------- - - - ----------- 1995 1994 1993 1992 1991 - - - -------------------------------------------------------------------------------- - - - ----------- 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 - - - -------------------------------------------------------------------------------- - - - ----------
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 - - - ------------------------------------------------------------------------------ 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 -----END PRIVACY-ENHANCED MESSAGE-----