UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2017March 31, 2019
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from__________to __________
Commission file number: 33-92990; 333-216849333-223713

TIAA REAL ESTATE ACCOUNT
(Exact name of registrant as specified in its charter)
NEW YORK
(State or other jurisdiction
of incorporation or organization)
NOT APPLICABLE
(I.R.S. Employer Identification No.)
C/O TEACHERS INSURANCE AND
ANNUITY ASSOCIATION OF AMERICA
730 THIRD AVENUE
NEW YORK, NEW YORK 10017-3206
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (212) 490-9000
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
YES ý  NO o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
YES ý  NO o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer o
 
Accelerated filer o
Non-accelerated filer ý (Do not check if a smaller reporting company)
 
Smaller Reporting Company o
  
Emerging Growth Company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
YES o  NO ý



TABLE OF CONTENTS
   Page
Part IFinancial Information 
 Item 1.Unaudited Consolidated Financial Statements 
  
     Consolidated Statements of Assets and Liabilities
3
  
     Consolidated Statements of Operations
4
  
     Consolidated Statements of Changes in Net Assets
5
  
     Consolidated Statements of Cash Flows
6
  
     Notes to the Consolidated Financial Statements
7
  
     Consolidated Schedules of Investments
2427
 Item 2.Management's Discussion and Analysis of the Account's Financial Condition and Results of Operations3941
 Item 3.Quantitative and Qualitative Disclosures about Market Risk5955
 Item 4.Controls and Procedures6056
Part IIOther Information 
 Item 1.Legal Proceedings6157
 Item 1A.Risk Factors6157
 Item 2.Unregistered Sales of Equity Securities and Use of Proceeds6157
 Item 3.Defaults Upon Senior Securities6157
 Item 4.Mine Safety Disclosures6157
 Item 5.Other Information6157
 Item 6.Exhibits6258
Signatures 6360



PART I. FINANCIAL INFORMATION

ITEM 1. UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

TIAA REAL ESTATE ACCOUNT
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(In millions, except per accumulation unit amounts)
September 30, December 31,March 31, December 31,
2017 20162019 2018
(Unaudited)   (Unaudited)   
ASSETS        
Investments, at fair value:        
Real estate properties
(cost: $12,944.7 and $12,818.1)		$15,654.2
 $15,452.8
 
Real estate joint ventures and limited partnerships
(cost: $4,540.2 and $4,530.4)
5,816.1
 5,759.9
 
Real estate properties
(cost: $13,051.4 and $12,687.8)		$15,968.6
 $15,531.1
 
Real estate joint ventures and limited partnerships
(cost: $5,301.0 and $5,207.8)
6,606.4
 6,532.5
 
Marketable securities:        
Real estate-related
(cost: $889.5 and $883.9)		1,121.0
(1) 
 1,081.5
(1) 
Other
(cost: $4,293.3 and $4,054.0)		4,293.4
 4,053.8
 
Loans receivable
(cost: $296.5 and $294.8)		298.8
 295.7
 
Total investments
(cost: $22,964.2 and $22,581.2)		27,183.5
  26,643.7
 
Real estate-related
(cost: $906.1 and $1,274.7)		1,128.9
(1) 
 1,415.1
(1) 
Other
(cost: $4,268.2 and $4,088.9)		4,268.3
 4,088.7
 
Loans receivable
(cost: $963.7 and $910.6)		967.3
 913.0
 
Total investments
(cost: $24,490.4 and $24,169.8)		28,939.5
  28,480.4
 
Cash and cash equivalents6.8
 3.0
 38.1
 3.8
 
Due from investment manager4.8
 5.9
 10.0
 2.2
 
Other227.6
(2) 
 332.6
(2) 
251.4
(2) 
 331.8
(2) 
TOTAL ASSETS27,422.7
  26,985.2
 29,239.0
  28,818.2
 
LIABILITIES        
Mortgage loans payable, at fair value
(principal outstanding: $2,284.8 and $2,316.5)
2,311.0
 2,332.1
 
Mortgage loans payable, at fair value
(principal outstanding: $2,683.4 and $2,688.1)
2,632.9
 2,608.0
 
Accrued real estate property expenses211.7
 202.2
 225.1
 222.4
 
Payable for collateral for securities loaned5.6
 93.0
 2.3
 68.8
 
Other54.6
 53.2
 57.0
 76.4
 
TOTAL LIABILITIES2,582.9
  2,680.5
 2,917.3
  2,975.6
 
COMMITMENTS AND CONTINGENCIES
 
 
 
 
NET ASSETS        
Accumulation Fund24,333.5
 23,813.5
 25,793.0
 25,320.1
 
Annuity Fund506.3
 491.2
 528.7
 522.5
 
TOTAL NET ASSETS$24,839.8
  $24,304.7
 $26,321.7
  $25,842.6
 
NUMBER OF ACCUMULATION UNITS OUTSTANDING61.9
  62.4
 60.8
  60.7
 
NET ASSET VALUE, PER ACCUMULATION UNIT$393.257
  $381.636
 $424.573
  $417.416
 
(1) Includes securities loaned of $5.5$2.2 million at September 30, 2017March 31, 2019 and $91.2$67.4 million at December 31, 2016.2018.
(2) Includes cash collateral for securities loaned of $5.6$2.3 million at September 30, 2017March 31, 2019 and $93.0$68.8 million at December 31, 2016.2018.




See notes to the consolidated financial statements

TIAA REAL ESTATE ACCOUNT
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions)
(Unaudited)
For the Three Months Ended September 30, For the Nine Months Ended September 30,For the Three Months Ended March 31,
2017 2016 2017 20162019 2018
INVESTMENT INCOME          
Real estate income, net:          
Rental income$267.9
 $257.4
 $791.6
 $755.9
$262.6
 $272.0
Real estate property level expenses and taxes:          
Operating expenses56.9
 54.8
 164.9
 163.5
59.2
 57.3
Real estate taxes43.2
 40.4
 127.3
 116.9
46.6
 44.9
Interest expense22.5
 22.4
 67.3
 63.3
25.7
 23.8
Total real estate property level expenses and taxes122.6
 117.6
 359.5
 343.7
131.5
 126.0
Real estate income, net145.3
 139.8
 432.1
 412.2
131.1
 146.0
Income from real estate joint ventures and limited partnerships60.9
 33.5
 154.3
 111.8
49.7
 54.9
Interest15.9
 6.3
 37.6
 17.8
41.1
 18.1
Dividends7.9
 9.2
 15.7
 19.9
4.4
 9.7
TOTAL INVESTMENT INCOME230.0
 188.8
 639.7
 561.7
226.3
 228.7
Expenses:          
Investment management charges15.5
 17.6
 52.9
 51.8
19.5
 14.6
Administrative charges14.7
 17.0
 46.0
 48.4
13.3
 14.8
Distribution charges6.4
 7.2
 19.6
 21.3
7.9
 6.9
Mortality and expense risk charges0.3
 0.3
 0.9
 0.9
0.3
 0.3
Liquidity guarantee charges12.5
 10.2
 34.5
 28.1
12.9
 12.2
TOTAL EXPENSES49.4
 52.3
 153.9
 150.5
53.9
 48.8
INVESTMENT INCOME, NET180.6
 136.5
 485.8
 411.2
172.4
 179.9
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND MORTGAGE LOANS PAYABLE          
Net realized gain (loss) on investments:          
Real estate properties75.2
 16.4
 58.4
 26.5
—
 (11.8)
Real estate joint ventures and limited partnerships(8.6) 0.2
 (8.6) 0.4
5.1
 0.2
Marketable securities2.6
 3.1
 15.3
 21.6
141.0
 3.0
Net realized gain on investments69.2
 19.7
 65.1
 48.5
Net realized gain (loss) on investments146.1
 (8.6)
Net change in unrealized appreciation (depreciation) on:          
Real estate properties(9.4) 36.9
 74.8
 242.2
73.9
 102.3
Real estate joint ventures and limited partnerships26.9
 24.3
 88.7
 152.3
2.5
 24.3
Marketable securities2.2
 (26.0) 34.2
 84.2
76.3
 (90.8)
Loans receivable1.4
 0.1
 1.4
 0.1
1.2
 0.1
Mortgage loans payable(4.1) (29.1) (10.6) (54.8)(29.6) 27.7
Net change in unrealized appreciation on
investments and mortgage loans payable
17.0
 6.2
 188.5
 424.0
124.3
 63.6
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND MORTGAGE LOANS PAYABLE86.2
 25.9
 253.6
 472.5
270.4
 55.0
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS$266.8
 $162.4
 $739.4
 $883.7
$442.8
 $234.9



See notes to the consolidated financial statements

TIAA REAL ESTATE ACCOUNT
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(In millions)
(Unaudited)
For the Three Months Ended September 30, For the Nine Months Ended September 30,For the Three Months Ended March 31,
2017 2016 2017 20162019 2018
FROM OPERATIONS          
Investment income, net$180.6
 $136.5
 $485.8
 $411.2
$172.4
 $179.9
Net realized gain on investments69.2
 19.7
 65.1
 48.5
Net realized gain (loss) on investments146.1
 (8.6)
Net change in unrealized appreciation on investments and mortgage loans payable17.0
 6.2
 188.5
 424.0
124.3
 63.6
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS
266.8
 162.4
 739.4
 883.7
442.8
 234.9
FROM PARTICIPANT TRANSACTIONS          
Premiums552.4
 757.8
 1,980.6
 2,349.2
677.4
 669.1
Annuity payments(10.8) (10.3) (32.3) (30.3)(11.5) (11.2)
Withdrawals and death benefits(777.5) (576.6) (2,152.6) (1,551.1)(629.6) (961.5)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM PARTICIPANT TRANSACTIONS
(235.9) 170.9
 (204.3) 767.8
36.3
 (303.6)
NET INCREASE IN NET ASSETS30.9
 333.3
 535.1
 1,651.5
NET INCREASE (DECREASE) IN NET ASSETS479.1
 (68.7)
NET ASSETS          
Beginning of period24,808.9
 23,678.2
 24,304.7
 22,360.0
25,842.6
 24,942.6
End of period$24,839.8
 $24,011.5
 $24,839.8
 $24,011.5
$26,321.7
 $24,873.9



























See notes to the consolidated financial statements

TIAA REAL ESTATE ACCOUNT
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)millions, Unaudited)
For the Nine Months Ended September 30,For the Three Months Ended March 31,
2017 20162019 2018
CASH FLOWS FROM OPERATING ACTIVITIES      
Net increase in net assets resulting from operations$739.4
 $883.7
$442.8
 $234.9
Adjustments to reconcile net changes in net assets resulting from operations to net cash provided by (used in) operating activities:   
Net realized gain on investments(65.1) (48.5)
Adjustments to reconcile net changes in net assets resulting from operations to net cash (used in) provided by operating activities:   
Net realized (gain) loss on investments(146.1) 8.6
Net change in unrealized appreciation on investments
and mortgage loans payable
(188.5) (424.0)(124.3) (63.6)
Purchase of real estate properties(298.4) (378.0)(301.0) (168.3)
Capital improvements on real estate properties(95.0) (125.2)(54.7) (41.7)
Proceeds from sale of real estate properties340.7
 152.9
3.1
 143.4
Purchases of long term investments(342.5) (1,134.0)(105.6) (221.7)
Proceeds from long term investments376.3
 51.6
542.5
 148.9
Increase in loans receivable(1.7) (69.0)
Purchases and originations of loans receivable(74.4) (20.1)
Proceeds from payoffs of loans receivable21.3
 —
Increase in other investments(239.3) (203.8)(179.3) (107.3)
Change in due to (from) investment manager1.1
 (4.9)
(Increase) decrease in other assets105.0
 (121.4)
Increase (decrease) in other liabilities(74.5) 141.3
Change in due from investment manager(7.8) (7.0)
Decrease in other assets79.6
 11.4
Decrease in other liabilities(94.2) (2.3)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES257.5
 (1,279.3)1.9
 (84.8)
CASH FLOWS FROM FINANCING ACTIVITIES      
Mortgage loan proceeds received—
 563.5
—
 386.0
Payments of mortgage loans(49.4) (34.7)(4.7) (2.4)
Premiums1,980.6
 2,349.2
677.4
 669.1
Annuity payments(32.3) (30.3)(11.5) (11.2)
Withdrawals and death benefits(2,152.6) (1,551.1)(629.6) (961.5)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES(253.7) 1,296.6
NET INCREASE IN CASH AND CASH EQUIVALENTS3.8
 17.3
CASH AND CASH EQUIVALENTS   
Beginning of period3.0
 11.9
End of period$6.8
 $29.2
NET CASH PROVIDED BY FINANCING ACTIVITIES31.6
 80.0
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH33.5
 (4.8)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH   
Beginning of period cash, cash equivalents and restricted cash47.3
 54.0
Net increase (decrease) in cash, cash equivalents and restricted cash33.5
 (4.8)
End of period cash, cash equivalents and restricted cash$80.8
 $49.2
SUPPLEMENTAL DISCLOSURES:      
Cash paid for interest$67.3
 $61.6
$26.2
 $23.9
Debt assumed as part of real estate acquisition$17.7
 $—

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows (in millions):


 As of March 31,
 2019 2018
Cash and cash equivalents$38.1
 $9.1
Restricted cash(1)
42.7
 40.1
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH$80.8
 $49.2





(1) Restricted cash is included within other assets in the Consolidated Statements of Assets and Liabilities.



See notes to the consolidated financial statements

TIAA REAL ESTATE ACCOUNT
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)
Note 1—Organization and Significant Accounting Policies
Business: The TIAA Real Estate Account (“Account”) is an insurance separate account of Teachers Insurance and Annuity Association of America (“TIAA”) and was established by resolution of TIAA’s Board of Trustees (the “Board”) on February 22, 1995, under the insurance laws of the State of New York, for the purpose of funding variable annuity contracts issued by TIAA. The Account offers individual and group accumulating annuity contracts (with contributions made on a pre-tax or after-tax basis), as well as individual lifetime and term-certain variable payout annuity contracts (including the payment of death benefits to beneficiaries). Investors are entitled to transfer funds to or from the Account, and make withdrawals from the Account on a daily basis, under certain circumstances. Funds invested in the Account for each category of contract are expressed in terms of units, and unit values will fluctuate depending on the Account’s performance.
The investment objective of the Account is to seek favorable long-termtotal returns primarily through the rental income and appreciation of a diversified portfolio of directly held, private real estate investments and real estate-related investments owned by the Account.while offering investors guaranteed, daily liquidity. The Account holds real estate properties directly and through subsidiaries wholly-owned by TIAA for the sole benefit of the Account. The Account also holds limited interests in real estate joint ventures and limited partnerships, as well as investments in loans receivable with commercial real estate properties as underlying collateral. Additionally, the Account invests in real estate-related and non-real estate-related publicly traded securities, cash and other instruments to maintain adequate liquidity levels for operating expenses, capital expenditures and to fund benefit payments (withdrawals, transfers and related transactions).
The Consolidated Financial Statements were prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), which requires the use of estimates made by management. Actual results may vary from those estimates and such differences may be material.
The Consolidated Financial Statements of the Account as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 are unaudited and include all adjustments necessary to present a fair statement of results for the interim periods presented. Results of operations for the interim periods are not necessarily indicative of results for the entire year. These Consolidated Financial Statements have been prepared in accordance with the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted from this report pursuant to the rules of the SEC. As a result, these Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Account’s annual report on Form 10-K for the year ended December 31, 2018.
The following is a summary of the significant accounting policies of the Account.
Basis of Presentation: The accompanying Consolidated Financial Statements include the Account and those subsidiaries wholly-owned by TIAA for the sole benefit of the Account. All significant intercompany accounts and transactions between the Account and such subsidiaries have been eliminated.
The Accumulation Unit Value (“AUV”) used for financial reporting purposes may differ from the AUV used for processing transactions. The AUV used for financial reporting purposes includes security and participant transactions effective through the period end date to which this report relates. Total return is computed based on the AUV used for processing transactions.
Determination of Investments at Fair Value: The Account reports all investments at fair value in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 946, Financial Services—Investment Companies. Further in accordance with the adoption of the fair value option allowed under ASC 825, Financial Instruments, and at the election of Account management, mortgage loans payable and a line of credit are reported at fair value. The FASB has defined fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.participants excluding transaction costs.

The following is a description of the valuation methodologies used to determine the fair value of the Account’s investments and investment related mortgage loans payable.
Valuation of Real Estate Properties—Investments in real estate properties are stated at fair value, as determined in accordance with policies and procedures reviewed by the Investment Committee of the Board and in accordance with the responsibilities of the Board as a whole. Accordingly, the Account does not record depreciation. Determination of fair value involves significant levels of judgment because the actual fair value of real estate can be determined only by negotiation between the parties in a sales transaction.

The Account’s primary objective when valuing its real estate investments will beis to produce a valuation that represents a reasonable estimate of the fair value of its investments. Implicit in the Account’s definition of fair value are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:
Buyer and seller are typically motivated;
Both parties are well informed or well advised, and acting in what they consider their best interests;
A reasonable time is allowed for exposure in the open market;
Payment is made in terms of cash or in terms of financial arrangements comparable thereto; and
The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
Property and investment values are affected by, among other things, the availability of capital, occupancy rates, rental rates, and interest and inflation rates. As a result, determining real estate and investment values involves many assumptions. Key inputs and assumptions include rental income and expense amounts, related rental income and expense growth rates, capital expenditures, discount rates and capitalization rates. Valuation techniques include discounted cash flow analysis, prevailing market capitalization rates or multiples applied to earnings from the property, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties. Amounts ultimately realized from each investment may vary significantly from the fair value presented.
Real estate properties owned by the Account are initially valued based on an independent third party appraisal, as reviewed by TIAA’s internal appraisal staff and as applicable by the Account’s independent fiduciary at the time of the closing of the purchase. Such initial valuation may result in a potential unrealized gain or loss reflecting the difference between an investment’s fair value (i.e., exit price) and its cost basis (which is inclusive of transaction costs).
Subsequently, each property is appraised each quarter by an independent third party appraiser, reviewed by TIAA’s internal appraisal staff and as applicable the Account’s independent fiduciary. In general, the Account obtains appraisals of its real estate properties spread out throughout the quarter, which is intended to result in appraisal adjustments, and thus, adjustments to the valuations of its holdings (to the extent such adjustments are made) that happen regularly throughout each quarter and not on one specific day or month in each period.
Further, management reserves the right to order an appraisal and/or conduct another valuation outside of the normal quarterly process when facts or circumstances at a specific property change. For example, under certain circumstances a valuation adjustment could be made when the account receives a bona fide bid for the sale of a property held within the Account or one of the Account’s joint ventures. Adjustments may be made for events or circumstances indicating an impairment of a tenant’s ability to pay amounts due to the Account under a lease (including due to a bankruptcy filing of that tenant). Alternatively, adjustments may be made to reflect the execution or renewal of a significant lease. Also, adjustments may be made to reflect factors (such as sales values for comparable properties or local employment rate) bearing uniquely on a particular region in which the Account holds properties. TIAA’s internal appraisal staff oversees the entire appraisal process, in conjunction with the Account’s independent fiduciary (the independent fiduciary is more fully described in the following paragraph). Any differences in the conclusions of TIAA’s internal appraisal staff and the independent appraiser will be reviewed by the independent fiduciary, which will make a final determination on the matter (which may include ordering a subsequent independent appraisal).
The Account's independent fiduciary, RERC, LLC, has beenwas initially appointed in March 2006 by a special subcommittee of the Investment Committee of the Board to, among other things, oversee the entire appraisal process. In March 2018, RERC, LLC, was re-appointed as the Account's independent fiduciary for a term expiring in February 2021. The

independent fiduciary must approve all independent appraisers used by the Account. All appraisals are performed in accordance with Uniform Standards of Professional Appraisal Practices, the real estate appraisal industry standards created by The Appraisal Foundation. Real estate appraisals are estimates of property values based on a professional’s opinion. Appraisals of properties held outside of the U.S. are performed in accordance with industry standards commonly applied in the applicable jurisdiction. These independent appraisers are always expected to be MAI-designated members of the Appraisal Institute (or its European equivalent, Royal Institute of Chartered Surveyors) and state certified appraisers from national or regional firms with relevant property type experience and market knowledge. Under the Account’s current procedures, each independent appraisal firm will be rotated off of a particular property at least every three years, although such appraisal firm may perform appraisals of other Account properties subsequent to such rotation.

Also, the independent fiduciary may require additional appraisals if factors or events have occurred that could materially change a property’s value (including those identified previously) and such change is not reflected in the quarterly valuation review, or otherwise to ensure that the Account is valued appropriately. The independent fiduciary must also approve any valuation change of real estate-related assets where a property’s value changed by more than 6% from the most recent independent annual appraisal, or if the value of the Account would change by more than 4% within any calendar quarter or more than 2% since the prior calendar month. When a real estate property is subject to a mortgage, the property is valued independently of the mortgage and the property and mortgage fair values are reported separately (see Valuation of Mortgage Loans Payable). The independent fiduciary reviews and approves all mortgage valuation adjustments before such adjustments are recorded by the Account. The Account continues to use the revised value for each real estate property and mortgage loan payable to calculate the Account’s daily net asset value until the next valuation review or appraisal.
Valuation of Real Estate Joint Ventures—Real estate joint ventures are stated at the fair value of the Account’s ownership interests of the underlying entities. The Account’s ownership interests are valued based on the fair value of the underlying real estate, any related mortgage loans payable, and other factors, such as ownership percentage, ownership rights, buy/sell agreements, distribution provisions and capital call obligations. The fair value of real estate and mortgage loans payable held by joint ventures is determined in the same manner described above in Valuation of Real Estate Properties. The independent fiduciary reviews and approves all valuation adjustments before such adjustments are recorded by the Account. Upon the disposition of all real estate investments by an investee entity, the Account will continue to state its equity in the remaining net assets of the investee entity during the wind down period, if any, which occurs prior to the dissolution of the investee entity.
Valuation of Real Estate Limited Partnerships—Limited partnership interests are stated at the fair value of the Account’s ownership in the partnership which are recorded based uponpartnership. Management uses net asset value information provided by limited partners as a practical expedient to estimate fair value. The Account receives estimates from limited partners on a quarterly basis, and audited information is provided annually. Upon receipt of the changes ininformation, management reviews and concludes on whether the net asset values provided are an appropriate representation of the fair value of the Account's interests in the limited partnerships and makes valuation adjustments as determined from the financial statementsnecessary. Valuation of the limited partnerships when received by the Account. Prior to the receipt of the financial statements from the limited partnerships, the Account estimates the value of its interest in good faith and will from time to time seek input from the issuer or the sponsor of the investments. Since market quotations are not readily available, the limited partnership interests are valued at fair value as determined in good faithis conducted by management under the direction of the Investment Committee of the Board andBoard. Such valuation is also conducted in accordance with the responsibilities of the Board as a whole.
Valuation of Marketable Securities—Equity securities listed or traded on any national market or exchange are valued at the last sale price as of the close of the principal securities market or exchange on which such securities are traded or, if there is no sale, at the mean of the last bid and asked prices on such market or exchange, exclusive of transaction costs.
Valuation of Debt Securities—Debt securities with readily available market quotations, other than money market instruments, are generally valued at the most recent bid price or the equivalent quoted yield for such securities (or those of comparable maturity, quality and type). Debt securities for which market quotations or values from independent pricing services are not readily available or are not considered reliable, are valued at fair value as determined in good faith by management and the Investment Committee of the Board and in accordance with the responsibilities of the Board as a whole.
Short-term investments are valued in the same manner as debt securities, as described above.

Money market instruments are valued at amortized cost, which approximates fair value.
Equity and fixed income securities traded on a foreign exchange or in foreign markets are valued using their closing values under the valuation methods generally accepted in the country where traded, as of the valuation date. This value is converted to U.S. dollars at the exchange rate in effect on the valuation day. Under certain circumstances (for example, if there are significant movements in the U.S. markets and there is an expectation the securities traded on foreign markets will adjust based on such movements when the foreign markets open the next day), the Account may adjust the value of equity or fixed income securities that trade on a foreign exchange or market after the foreign exchange or market has closed.
Valuation of Loans Receivable (i.e., the Account as a creditor)—Loans receivable are stated at fair value and are initially valued at the face amount of the loan funding. Subsequently, loans receivable are valued at least quarterly by TIAA’s internal valuation department based on market factors, such as market interest rates and spreads for comparable loans, the liquidity for loans of similar characteristics, the performance of the underlying collateral (such as the loan-to-value ratio and the cash flow of the underlying collateral) and the credit quality of the counterparty. The independent

fiduciary reviews and approves all loan receivable valuation adjustments before such adjustments are recorded by the Account. The Account continues to use the revised value for each loan receivable to calculate the Account’s daily net asset value until the next valuation review.
Valuation of Mortgage Loans Payable (i.e., the Account as a debtor)—Mortgage or other loans payable are stated at fair value. Thevalue.The estimated fair valuesvalue of mortgage loans payable areis generally based on the amount at which the liability could be transferred toin a third partycurrent transaction, exclusive of transaction costs. Mortgage loans payableFair values are valued internally by TIAA’s internal valuation department, as reviewed by the Account’s independent fiduciary, at least quarterlyestimated based on market factors, such as market interest rates and spreads foron comparable loans, the liquidity for mortgage loans of similar characteristics, the performance of the underlying collateral (such as the loan-to-value ratio and the cash flow of the underlying collateral), the liquidity for mortgage loans of similar characteristics, the maturity date of the loan, the return demands of the market, and the credit quality of the Account. Different assumptions or changes in future market conditions could significantly affect estimated fair values. At times, the Account may assume debt in connection with the purchase of real estate (including under the Account's line of credit or additional credit facilities). The independent fiduciary reviews and approves all mortgage valuation adjustments before such adjustments are recorded by the return demands of the market.Account.
See Note 45—Assets and Liabilities Measured at Fair Value on a Recurring Basis for further discussion and disclosure regarding the determination of the fair value of the Account’s investments.
Foreign Currency Transactions and Translation: Portfolio investments and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing at the end of the period. Purchases and sales of securities, income receipts and expense payments made in foreign currencies are translated into U.S. dollars at the exchange rates prevailing on the respective dates of the transactions. The effect of any changes in foreign currency exchange rates on portfolio investments and mortgage loans payable are included in net realized and unrealized gains and losses on real estate properties and mortgage loans payable. Net realized gains and losses on foreign currency transactions include disposition of foreign currencies, and currency gains and losses between the accrual and receipt dates of portfolio investment income and between the trade and settlement dates of portfolio investment transactions.
Accumulation and Annuity Funds: The accumulation fund represents the net assets attributable to participants in the accumulation phase of their investment (“Accumulation Fund”). The annuity fund represents the net assets attributable to the participants currently receiving annuity payments (“Annuity Fund”). The net increase or decrease in net assets from investment operations is apportioned between the funds based upon their relative daily net asset values. Once an Account participant begins receiving lifetime annuity income benefits, payment levels cannot be reduced as a result of the Account’s actual mortality experience. In addition, the contracts pursuant to which the Account is offered are required to stipulate the maximum expense charge for all Account level expenses that can be assessed, which is not to exceed 2.5% of average net assets per year. The Account pays a fee to TIAA to assume mortality and expense risks.
Accounting for Investments: The investments held by the Account are accounted for as follows:
Real Estate Properties—Rent from real estate properties consists of all amounts earned under tenant operating leases, including base rent, recoveries of real estate taxes and other expenses and charges for miscellaneous services provided to tenants. Rental income is recognized in accordance with the billing terms of the lease agreements. The Account bears the direct expenses of the real estate properties owned. These expenses include, but are not limited to, fees to local property management companies, property taxes, utilities, maintenance, repairs, insurance, and other operating and administrative costs. An estimate of the net operating income earned from each real estate property is accrued by the Account on a daily basis and such estimates are adjusted when actual operating results are determined.
Real Estate Joint Ventures—The Account has ownership interests in various real estate joint ventures (collectively, the “joint ventures”). The Account records its contributions as increases to its investments in the joint ventures, and distributions from the joint ventures are treated as income within income from real estate joint ventures and limited partnerships in the Account’s consolidated statementsConsolidated Statements of operations.Operations. Distributions that are identified as returns of capital are recorded as a reduction to the cost basis of the investment, whereas distributions identified as capital gains or losses are recorded as realized gains or losses. Income distributions from the joint ventures are recorded based on the Account’s proportional interest of the income distributed by the joint ventures. Income earnedand losses incurred but not yet distributed toor realized from the Account by the joint ventures isare recorded as unrealized gains and losses.
Limited Partnerships—The Account has limited ownership interests in various private real estate funds (primarily limited partnerships) and a private real estate investment trust (collectively, the “limited partnerships”). The Account

records its contributions as increases to the investments, and distributions from the investments are treated as income within

income from real estate joint ventures and limited partnerships in the Account’s consolidated statementsConsolidated Statements of operations.Operations. Distributions that are identified as returns of capital are recorded as a reduction to the cost basis of the investment, whereas distributions identified as capital gains or losses are recorded as realized gains or losses. Unrealized gains and losses are recorded based upon the changes in the net asset values of the limited partnerships as determined from the financial statements of the limited partnerships when received by the Account. Prior to the receipt of the financial statements from the limited partnerships, the Account estimates the value of its interest in good faith and will from time to time seek input fromusing information provided by the issuer or the sponsor of the investments.limited partners. Changes in value based on such estimates are recorded by the Account as unrealized
gains and losses.
Marketable Securities—Transactions in marketable securities are accounted for as of the date the securities are purchased or sold (trade date). Interest income is recorded as earned. Dividend income is recorded on the ex-dividend date within dividend income. Dividends that are identified as returns of capital are recorded as a reduction to the cost basis of the investment, whereas dividends identified as capital gains or losses are recorded as realized gains or losses. Realized gains and losses on securities transactions are accounted for on the specific identification method.
Loans Receivable—The Account has ownership interests inmay originate, purchase or sell loans receivable. Loans receivable are stated atcollateralized by real estate. The cost basis of originated loans is comprised of the principal balance and direct costs incurred that represent a component of loan’s reported fair value and are initially valued atvalue. The cost basis of purchased loans consists of the face amountpurchase price of the loan funding. Subsequently,and additional direct costs incurred that represent a component of the loan’s reported fair value. Additional costs incurred by the Account to originate or purchase loans receivable are valued at least quarterly by TIAA’s internal valuation department with changes inthat do not represent a component of a loan’s fair value flowing through unrealized gain (loss).are recorded as expenses in the
period incurred. Nonrefundable origination fees paid by borrowers are recognized as interest income once all activities required to execute the loan are completed. Prepayment fees received from the payoff of loans in advance of their maturity date are recognized as interest income on the date the payoff occurs. Interest income from loans receivablein accrual status is recognized usingbased on the effective interest method over the expected lifecurrent coupon rate of the loan. Allloans.
Interest income accruals are suspended when a loan becomes a non-performing loan, defined as a loan more than ninety days in arrears or at any point when management believes the full collection of principal is doubtful. Interest income on non-performing loans receivable heldis recognized only as cash payments are received. Loans can be rehabilitated to date were originated directly bynormal accrual status once all past due interest has been collected and management believes the Account.full collection of principal is likely.
Realized and Unrealized Gains and Losses—Realized gains and losses are recorded at the time an investment is sold
or a distribution is received in relation to an investment sale from a joint venture or limited partnership. Real estate and loan receivable transactions are accounted for as of the date on which the purchase or sale transactions for the real estate properties close (settlement date). The Account recognizes a realized gain on the sale of a real estate propertyan investment to the extent that the contract sales price exceeds the cost-to-date of the propertyinvestment being sold. A realized loss occurs when the cost-to-date exceeds the sales price. Realized gains and losses from partial sales of non-financial assets are recognized in accordance with ASC 610-20 - Gains and Losses from the Derecognition of Nonfinancial Assets. Realized gains and losses from the sale of financial assets are recognized in accordance with ASC 860 - Transfers and Servicing. Unrealized gains and losses are recorded as the fair values of the Account’s investments are adjusted, and as discussed within the Real Estate Joint Ventures, Limited Partnerships and Loans Receivable sections above.
Unrealized gains and losses are recorded as the fair values of the Account’s investments are adjusted, and as discussed within the Real Estate Joint Ventures and Limited Partnerships sections above.
Net Assets—The Account’s net assets as of the close of each valuation day are valued by taking the sum of:
the value of the Account’s cash;cash, cash equivalents, and short-term and other debt instruments;
the value of the Account’s other securities and other non-real estate assets;
the value of the individual real properties (based on the most recent valuation of that property) and other real estate-related investments owned by the Account;
an estimate of the net operating income accrued by the Account from its properties, other real estate-related investments and non-real estate-related investments (including short-term marketable securities) since the end of the prior valuation day; and

actual net operating income earned from the Account’s properties, other real estate-related investments and non-real estate-related investments (but only to the extent any such item of income differs from the estimated income accrued for on such investments),
and then reducing the sum by liabilities held within the Account, including the daily investment management fee, administration and distribution fees, mortality and expense fees, and thefee, liquidity guarantee fee, and certain other expenses attributable to operating the Account. Daily estimates of net operating income are adjusted to reflect actual net operating income on a monthly basis, at which time such adjustments (if any) are reflected in the Account’s unit value.
After the end of every quarter, the Account reconciles the amount of expenses deducted from the Account (which is established in order to approximate the costs that the Account will incur) with the expenses the Account actually incurred. If there is a difference, the Account adds it to or deducts it from the Account in equal daily installments over the remaining days of the following quarter. Material differences may be repaid in the current calendar quarter. The Account’s at cost deductions are based on projections of Account assets and overall expenses, and the size of any

adjusting payments will be directly affected by the difference between management’s projections and the Account’s actual assets or expenses.
Income from Securities Lending: The Account may lend securities to qualified borrowers to generate additional income. When loaning securities, the Account retains the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the securities. Cash collateral received for securities on loan is maintained exclusively in an interest-bearing deposit account. All income generated by the securities lending program is reflected within interest income on the consolidated statements of operations.
Cash and Cash Equivalents: Cash and cash equivalents are balances held by the Account in bank deposit accounts which, at times, exceed federally insured limits. The Account’s management monitors these balances to mitigate the exposure of risk due to concentration and has not experienced any losses from such concentration.
Other Assets and Other Liabilities:Other assets and other liabilities consist of operating assets and liabilities utilized
and held at each individual real estate property investment. Other assets consist of, amongamongst other items, cash, tenant receivables and prepaid expenses; whereas other liabilities primarily consist of security deposits. Other assets also include cash collateral held for securities on loan.
Federal Income Taxes: Based on provisions of the Internal Revenue Code, Section 817, the Account is taxed as a segregated asset account of TIAA and as such, the Account incurs no material federal income tax attributable to the net investment activity of the Account. The Account’s federal income tax return is generally subject to examination for a period of three years after it is filed. State and local tax returns may be subject to examination for an additional period of time depending on the jurisdiction. Management has analyzed the Account’s tax positions taken for all open federal income tax years and has concluded that no provision for federal income tax is required in the Account’s Consolidated
Financial Statements.
Restricted Cash: The Account held $41.8 million and $45.8 million as of September 30, 2017 and December 31, 2016, respectively,restricted cash in escrow accounts for security deposits, as required by certain states, as well as property taxes, insurance, and various other property related matters as required by certain creditors related to outstanding mortgage loans payable collateralized by certain real estate investments. These amounts are recorded within other assets on the consolidated statementsConsolidated Statements of assetsAssets and liabilities.Liabilities. See Note 6—9—Mortgage Loans Payablefor additional information regarding the Account’s outstanding mortgage loans payable.
Changes in Net Assets: Premiums include premiums paid by existing accumulation unit holders in the Account and transfers into the Account. Withdrawals and death benefits include withdrawals out of the Account which include transfers out of the Account and required minimum distributions.
Due to/from Investment Manager: Due to/from investment manager represents amounts that are to be paid or received by TIAA on behalf of the Account. Amounts generally are paid or received by the Account within one or two business days and no interest is contractually charged on these amounts.
New Accounting Pronouncements:Securities Lending: In May 2014,The Account may lend securities to qualified borrowers to earn additional income. The Account receives cash collateral against the FASB issued Accounting Standard Update 2014-09, Revenue from Contracts with Customers(“ASU 2014-09”). ASU 2014-09 supersedes all existing revenue recognition guidanceloaned securities and establishes a five-step modelmaintains cash collateral in an amount not less than 100% of the market value of loaned securities during the period of the loan; any additional collateral required due to measure and recognize revenue. ASU 2014-09 will be effective for fiscal years beginning after December 15, 2017 andchanges in security values is delivered to the Account plans to adopt the new revenue guidance as of January 1, 2018. The Account has completed its initial scoping for the adoption of ASU 2014-09 and has determined that a limited number of asset management agreements will be in the scope of the new guidance. However, the revenue recognition patterns related to the services performed under the asset management agreements are not expected to be significantly different from the revenue recognition pattern under existing GAAP. For the adoption of ASU 2014-09,next business day. Cash collateral received by the Account is planninginvested exclusively in an interest-bearing deposit account. The value of the loaned securities and the liability to utilizereturn the modified retrospective adoption approach. Management is currentlycash collateral received are reflected in the processConsolidated Statements of evaluatingAssets and Liabilities. When loaning securities, the final impactAccount retains the benefits of owning the securities, including the economic equivalent of dividends or interest generated by the securities. All income generated by the securities lending program is reflected within interest income on the Consolidated Statements of Operations.

As of March 31, 2019, securities lending transactions are for real-estate related equity securities, and the resulting loans are continuous, can be recalled at any time, and have no set maturity. Securities lending income recognized by the Account consists of interest earned on cash collateral and lending fees, net of any rebates to the borrower and compensation to the agent. Such income is reflected within interest income on the Consolidated Statements of Operations.  In lending its securities, the Account bears the market risk with respect to the investment of collateral and the risk that the agent may default on its contractual obligations to the Account. The agent bears the risk that the borrower may default on its obligation to return the loaned securities as the agent is contractually obligated to indemnify the Account if at the time of a default by a borrower some or all of the new standard.loan securities have not been returned.
In January 2016, the FASB issued ASU 2016-1 Financial Instruments (Topic 825)—Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-1”). This ASU amends, among other items, certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. These amendments are effective for public business entities for fiscal years and interim periods within those fiscal years beginning after December 15,New Accounting Pronouncements

2017. Management is currently assessing the impact of ASU 2016-1 on the Account’s Consolidated Financial Statements.
In February 2016, the FASB issued ASU 2016-2Accounting Standards Update 2016-02 Leases (Topic 842) (“ASU 2016-2”2016-02”) which will supersedesupersedes Topic 840, Leases. This ASU applies to all entities that enter into a lease.leases. Lessees will beare required to report assets and liabilities that arise from leases. Lessor accounting has largely remained unchanged; however, certain refinements were made to conform with revenue recognition guidance in ASU 2014-09, specifically related to the allocation and recognition of contract consideration earned from lease and non-lease revenue components. ASU 2016-02 contains certain practical expedients, which the Account has elected. The Account's exposure to ASU 2016-02 is expectedprimarily as a lessor. The Account's exposure to remain unchanged exceptASU 2016-02 from the perspective of a lessee is limited to ground leases which are present at three wholly-owned investments as of March 31, 2019. The Account adopted ASU 2016-02 as of January 1, 2019. New disclosures required by ASC 2016-02 are included in the Notes to the Consolidated Financial Statements, refer to Note 4 - Leases.
The Account has elected the transition package of practical expedients permitted within the new standard. This practical expedient permits the Account to carryforward the historical lease classification and not to reassess initial direct costs for any existing leases.
In addition, the Account has elected the practical expedient that allows lessors to avoid separating lease and non-lease components within a contract if certain circumstances.criteria are met. The lessor’s practical expedient election is limited to circumstances in which (i) the timing and pattern of revenue recognition are the same for the non-lease component and the related lease component and (ii) the combined single lease component would be classified as an operating lease. This practical expedient allows the Account the ability to combine the lease and non-lease components if the underlying asset meets the two criteria above.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements. ASU 2018-13 modifies the disclosures required for fair value measurements. This guidance is effective for public business entities for fiscal years beginning after December 15, 2018, including all interim periods within those fiscal years.2019. Management is currently assessingevaluating the impact of ASU 2016-2 onthis guidance but does not expect it to materially impact the Account’sAccount's Notes to the Consolidated Financial Statements.
In August 2016,February 2019, the FASB issued Accounting Standards Update 2016-15, Statement of Cash FlowsASU 2019-01, Leases (Topic 230) - Classification of Certain Cash Receipts and Cash Payments842) Codification Improvements (“ASU 2016-15”2019-01”). ASU 2016-152019-01 addresses two lessor implementation issues and clarifies how to present cash receiptsan exemption for lessors and cash payments forlessees from a certain activity ininterim disclosure requirement associated with adopting the Statement of Cash Flows. These amendments are effective for public business entities within those fiscal years beginning after December 15, 2017, and interim periods within those fiscal years and should be applied using a retrospective transition method to each period presented. Management is currently assessing the impact of ASU 2016-15 on the Account's Consolidated Financial Statements.
In November 2016, FASB issued Accounting Standards Update 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash ("ASU 2016-18"). The statement of cash flows should present beginning-of-period and end-of-period total amounts that include cash and restricted cash. Transfers between cash and restricted cash will no longer be presented as operating, investing, or financing activities within the statement of cash flows. ASU 2016-18new lease accounting standard. This guidance is effective for annual financial statements issued for fiscal years beginning after December 15, 20172019 and should be applied using a retrospective transition method to each period presented. Management is currently assessing the impact of ASU 2016-18 on the Account's Consolidated Financial Statements.
In March 2017, the FASB issued ASU 2017-05, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The amendments in ASU 2017-05 clarify the scope and application of ASC 610-20 on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales. ASU 2017-05 is effective for public business entities for annual periods beginning after December 15, 2017, including interim periods within those annual periods.fiscal years. The amendments may be either retrospectively applied to each period presented within the financial statements or by a cumulative-effect adjustment to retained earnings or net assetsAccount adopted ASU 2019-01 as of January 1, 2019 and concluded that the beginning of the fiscal year of adoption. Management is currently assessing theadoption did not have a material impact of ASU 2017-05 on the Account’s Consolidated Financial Statements.
Note 2—Management Agreements, Arrangements and Related Party Transactions
Investment advisorymanagement, administrative and distribution services are provided to the Account at cost by TIAA. Services provided at cost are paid by the Account on a daily basis based upon projected expenses to be provided to the Account. Payments are adjusted periodically to ensure daily payments are as close as possible to the Account’s actual expenses incurred. Differences between actual expenses and the amounts paid by the Account are reconciled and adjusted quarterly.
Investment management services for the Account are provided by TIAA officers, under the direction and control of the Board, pursuant to investment management procedures adopted by TIAA for the Account. TIAA’s investment

management decisions for the Account are subject to review by the Account’s independent fiduciary. TIAA also provides various portfolio accounting and related services for the Account.
The Account is a party to the Distribution Agreement for the Contracts Funded by the TIAA Real Estate Account (the “Distribution Agreement”), dated January 1, 2008, by and among TIAA, for itself and on behalf of the Account, and TIAA-CREF Individual and Institutional Services, LLC (“Services”), a wholly-owned subsidiary of TIAA and a registered broker-dealer and a member of the Financial Industry Regulatory Authority. Pursuant to the Distribution Agreement, Services performs distribution services for the Account which include, among other things, (i) distributing of annuity contracts issued by TIAA and funded by the Account, (ii) advising existing annuity contract owners in connection with their accumulations and (iii) helping employers implement and manage retirement plans. In addition, TIAA performs administrative functions for the Account, which include, among other things, (i) maintaining accounting records and performing accounting services, (ii) receiving and allocating premiums, (iii) calculating and making annuity payments, (iv) processing withdrawal requests, (v) providing regulatory compliance and reporting services, (vi) maintaining the Account’s records of contract ownership and (vii) otherwise assisting generally in all aspects of the Account’s operations. Both distribution services (pursuant to the Distribution Agreement) and administrative services are provided to the Account by Services and TIAA, as applicable, on an at cost basis.
The Distribution Agreement is terminable by either party upon 60 days written notice and terminates automatically upon any assignment thereof.

In addition to providing the services described above, TIAA and Services provide investment management, administrative and distribution services at cost. TIAA and Services receive payments fromcharges the Account onfees to bear certain mortality and expense risks, and risks with providing the liquidity guarantee. These fees are charged as a daily basis according to formulaspercentage of the net assets of the Account. Rates for these fees are established each year and adjusted periodically with the objectiveannually.
Once an Account participant begins receiving lifetime annuity income benefits, payment levels cannot be reduced as a result of keeping the payments as close as possible to the Account’s actual mortality experience. As such, mortality and expense risk expenses actually incurred. Any differences between actual expenses and the amounts paid by the Account are adjusted quarterly.contractual charges for TIAA’s assumption of this risk.
TIAA also provides aThe liquidity guarantee to the Account, for a fee, to ensureensures that sufficient funds are available to meet participant transfer and cash withdrawal requests in the event that the Account’s cash flows and liquid investments are insufficient to fund such requests. TIAA ensures sufficient funds are available for such transfer and withdrawal requests by purchasing accumulation units of the Account.
To the extent TIAA owns accumulation units issued pursuant to the liquidity guarantee, the independent fiduciary monitors and oversees, among other things, TIAA’s ownership interest in the Account and may require TIAA to eventually redeem some of its units, particularly when the Account has un-invested cash or liquid investments available. TIAA also receives a fee for assuming certain mortality and expense risks.
The expensesExpenses for the services notedand fees described above that are provided to the Account by TIAA and Services are identified as such in the accompanying consolidated statementsConsolidated Statements of operationsOperations and are reflectedfurther identified as "Expenses" in Note 7—11—Financial Highlights.
Note 3—CreditConcentrations of Risk Concentrations
Concentrations of credit risk may arise when a number of properties or tenants are located in a similar geographic region such that the economic conditions of that region could impact tenants’ obligations to meet their contractual obligations or cause the values of individual properties to decline. TheAdditionally, concentrations of risk may arise if any one tenant comprises a significant amount of the Account's rent, or if tenants are concentrated in a particular industry.
As of March 31, 2019, the Account hashad no significant concentrations of tenants as no single tenant hashad annual contract rent that makesmade up more than 3% of the rental income of the Account. Moreover, the Account's tenants have no notable concentration present in any one industry. There are no significant lease expirations scheduled to occur over the next twelve months.

The Account’s wholly-owned real estate investments and investments in joint ventureventures are located in the United States. The following table represents the diversification of the Account’s portfolio by region and property type as of September 30, 2017:March 31, 2019 (unaudited):
Diversification by Fair Value(1)
Diversification by Fair Value(1)
Diversification by Fair Value(1)
                  
West East South Midwest TotalWest East South Midwest Total
Office16.1% 20.7% 5.6% —% 42.4%14.2% 18.7% 5.2% —% 38.1%
Apartment8.8% 8.1% 4.0% 0.8% 21.7%9.5% 7.5% 6.7% 1.0% 24.7%
Retail7.7% 3.0% 7.7% 0.5% 18.9%7.4% 3.0% 7.7% 0.7% 18.8%
Industrial7.1% 2.0% 4.1% 0.8% 14.0%8.4% 1.5% 4.7% 0.5% 15.1%
Other(2)
0.3% 2.5% 0.1% 0.1% 3.0%0.5% 2.6% 0.2% —% 3.3%
Total40.0% 36.3% 21.5% 2.2% 100.0%40.0% 33.3% 24.5% 2.2% 100.0%

(1) 
Wholly-owned properties are represented at fair value and gross of any debt, while joint venture properties are represented at the net equity value.
(2) 
Represents interestinterests in Storage Portfolio investment andinvestments, a fee interest encumbered by a ground lease real estate investment.investment and land.
Properties in the “West” region are located in: AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA, WY
Properties in the “East” region are located in: CT, DC, DE, KY, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT, WV
Properties in the “South” region are located in: AL, AR, FL, GA, LA, MS, OK, TN, TX
Properties in the “Midwest” region are located in: IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI

Note 4—Leases
The Account’s wholly-owned real estate properties are leased to tenants under operating lease agreements which expire on various dates through 2090. Rental income is recognized in accordance with the billing terms of the lease agreements. The leases do not have material variable payments, material residual value guarantees or material restrictive covenants. Certain leases have the option to extend or terminate at the tenant's discretion, with termination options resulting in additional fees due to the Account. Aggregate minimum annual rentals for wholly-owned real estate investments owned by the Account through the non-cancelable lease term, excluding short-term residential leases, as of March 31, 2019 (unaudited) and December 31, 2018 are as follows (millions):
 Years Ended December 31,
 As of As of
 March 31, 2019 December 31, 2018
2019(1)
$422.0
(1) 
$535.2
2020533.7
 497.7
2021471.8
 431.5
2022402.2
 366.9
2023337.1
 307.8
Thereafter2,915.9
 2,701.8
Total$5,082.7
 $4,840.9
(1) Representative of minimum rents owed for the remaining months of the calendar year ending December 31, 2019.
Certain leases provide for additional rental amounts based upon the recovery of actual operating expenses in excess of specified base amounts, sales volume or contractual increases as defined in the lease agreement. These contractual contingent rentals are not included in the table above.
The Account has ground leases for which the Account is the lessee. The leases do not contain material residual value guarantees or material restrictive covenants. Fair values of ground leases represent a component of the fair value assigned to a real estate investment. Accordingly, the Account does not separately place right-of-use assets and lease liabilities associated with ground leases on the Account's balance sheet.

The fair values and key terms of the right-of-use assets and lease liabilities related to the Account's ground leases are as follows (millions, unaudited):
  March 31, 2019
Assets:  
  Right-of-use assets, at fair value $25.6
Liabilities:  
  Ground lease liabilities, at fair value $25.6
Key Terms
  Weighted-average remaining lease term (years)84.6
  Weighted-average discount rate1
6.14%
(1) Discount rates are reflective of the rates utilized during the most recent appraisal of the associated real estate investments.
For the three months ended March 31, 2019, operating lease costs related to ground leases were $0.3 million. These costs include variable lease costs, which are immaterial. Aggregate future minimum annual payments for ground leases held by the Account are as follows (millions, unaudited):
 Years Ended December 31,
 As of As of
 March 31, 2019 December 31, 2018
2019(1)
$0.9
(1) 
$1.2
20201.2
 1.2
20211.2
 1.2
20221.3
 1.3
20231.3
 1.3
Thereafter388.0
 388.0
Total$393.9
 $394.2
(1) Representative of minimum rents owed for the remaining months of the calendar year ending December 31, 2019.
Note 5—Assets and Liabilities Measured at Fair Value on a Recurring Basis
Valuation Hierarchy: The Account’s fair value measurements are grouped categorically into three levels, as defined by the FASB. The levels are defined as follows:
Level 1—Valuations using unadjusted1 fair value inputs are quoted prices for assets tradedidentical items in active, liquid and visible markets such as stocks listed on the New York Stock Exchange. Active markets are defined as having the following characteristics for the measured asset or liability: (i) many transactions, (ii) current prices, (iii) price quotes not varying substantially among market makers, (iv) narrow bid/ask spreads and (v) most information regarding the issuer is publicly available. Level 1 assets held by the Account are generally marketable equity securities.stock exchanges.
Level 2—Valuations for assets and liabilities traded in less active, dealer or broker markets. Fair values are primarily obtained from third party pricing services for identical or comparable assets or liabilities. Level 2 inputs for fair value measurements are inputs other than quoted prices included within Level 1, that are observable information for similar items in active or inactive markets, and appropriately consider counterparty creditworthiness in the valuations.
Level 3 fair value inputs reflect our best estimate of inputs and assumptions market participants would use in pricing an asset or liability either directly or indirectly. Level 2at the measurement date. The inputs include:
a.Quoted prices for similar assets or liabilities in active markets;
b.Quoted prices for identical or similar assets or liabilities in markets that are not active (that is, markets in which there are few transactions for the asset (or liability), the prices are not current, price quotations vary substantially either over time or among market makers (for example, some brokered markets), or in which little information is released publicly);
c.Inputs other than quoted prices that are observable within the market for the asset (or liability) (for example, interest rates and yield curves, implied volatilities, prepayment speeds, loss severities, credit risks, and default rates that are observable at commonly quoted intervals); and
d.Inputs that are derived principally from or corroborated by observable market data by correlation or other means (for example, market-corroborated inputs).
Examples of securities which may be held by the Account and included in Level 2 include certificates of deposit, commercial paper, government agency notes, variable notes, United States Treasury securities, and debt securities.
Level 3—Valuations for assets and liabilities that are derived from other valuation methodologies, including pricing models, discounted cash flow models and similar techniques, and are not based on market exchange, dealer, or broker-traded transactions. Level 3 valuations incorporate certain assumptions and projections that are not observableunobservable in the market and require significant professional judgment in determiningto the fair value assigned to such assets or liabilities. Examples of Level 3 assets and liabilities which may be held by the Account from time to time include investments in real estate, investments in joint ventures, and loans receivable and payable.valuation estimate.
An investment’s categorization within the valuation hierarchy described above is based upon the lowest level of input that is significant to the fair value measurement. The Account’s limitedLimited partnership investments are excluded from the valuation hierarchy, as these investments are fair valued using thetheir net asset value per share as a practical expedient which excludessince market quotations or values from independent pricing services are not readily available. See Note 1 - Organization and Significant Accounting Policies for further discussion regarding the investments fromuse of a practical expedient for the valuation hierarchy.of limited partnerships.
The Account’s determination of fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon vendor-provided, evaluated prices or internally developed models

that primarily use market-based or independently sourced market data, including interest rate yield curves, market spreads, and currency rates. Valuation adjustments will be made to reflect changes in credit quality, counterparty’s creditworthiness, the Account’s creditworthiness, liquidity, and other observable and unobservable inputs that are applied consistently over time.
The methods described above are considered to produce fair values that represent a good faithan estimate by management of what an unaffiliated buyer in the marketplace would pay to purchase the asset or would receive to transfer the liability. Since fair value calculations involve significant professional judgment in the application of both observable and unobservable attributes, actual realizable values or future fair values may differ from amounts reported. Furthermore, while the Account believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments, while reasonable, could result in different estimates of fair value at the reporting date. As discussed in Note 1—Organization and Significant

Accounting Policies in more detail, the Account generally obtains independent third party appraisals on a quarterly basis; there may be circumstances in the interim in which the true realizable value of a property is not reflected in the Account’s daily net asset value calculation or in the Account’s periodic Consolidated Financial Statements. This disparity may be more apparent when the commercial and/or residential real estate markets experience an overall and possibly dramatic decline (or increase) in property values in a relatively short period of time between appraisals.
The following tables show the major categories of assets and liabilities measured at fair value on a recurring basis as of September 30, 2017March 31, 2019 (unaudited) and December 31, 2016,2018, using unadjusted quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3); and fair value using the practical expedient (in millions)(millions):
Description Level 1: Quoted Prices in Active Markets for Identical Assets Level 2: Significant Other Observable Inputs Level 3: Significant Unobservable Inputs Fair Value Using Practical Expedient Total at
September 30, 2017		 Level 1: Quoted Prices in Active Markets for Identical Assets Level 2: Significant Other Observable Inputs Level 3: Significant Unobservable Inputs Fair Value Using Practical Expedient Total at
March 31, 2019
Real estate properties $—
 $—
 $15,654.2
 $—
 $15,654.2
 $—
 $—
 $15,968.6
 $—
 $15,968.6
Real estate joint ventures —
 —
 5,675.4
 —
 5,675.4
 —
 —
 6,420.4
 —
 6,420.4
Limited partnerships —
 —
 —
 140.7
 140.7
 —
 —
 —
 186.0
 186.0
Marketable securities:                    
Real estate-related 1,121.0
 —
 —
 —
 1,121.0
 1,128.9
 —
 —
 —
 1,128.9
Government agency notes —
 3,276.1
 —
 —
 3,276.1
 —
 2,501.5
 —
 —
 2,501.5
United States Treasury securities —
 1,017.3
 —
 —
 1,017.3
 —
 1,766.8
 —
 —
 1,766.8
Loans receivable —
 —
 298.8
 —
 298.8
 —
 —
 967.3
 —
 967.3
Total Investments at
September 30, 2017		 $1,121.0
 $4,293.4
 $21,628.4
 $140.7
 $27,183.5
Total Investments at
March 31, 2019		 $1,128.9
 $4,268.3
 $23,356.3
 $186.0
 $28,939.5
Mortgage loans payable $—
 $—
 $(2,311.0) $—
 $(2,311.0) $—
 $—
 $(2,632.9) $—
 $(2,632.9)


Description Level 1: Quoted Prices in Active Markets for Identical Assets Level 2: Significant Other Observable Inputs Level 3: Significant Unobservable Inputs Fair Value Using Practical Expedient Total at December 31, 2016 Level 1: Quoted Prices in Active Markets for Identical Assets Level 2: Significant Other Observable Inputs Level 3: Significant Unobservable Inputs Fair Value Using Practical Expedient Total at December 31, 2018
Real estate properties $—
 $—
 $15,452.8
 $—
 $15,452.8
 $—
 $—
 $15,531.1
 $—
 $15,531.1
Real estate joint ventures —
 —
 5,622.4
 —
 5,622.4
 —
 —
 6,356.6
 —
 6,356.6
Limited partnerships —
 —
 —
 137.5
 137.5
 —
 —
 —
 175.9
 175.9
Marketable securities:                    
Real estate-related 1,081.5
 —
 —
 —
 1,081.5
 1,415.1
 —
 —
 —
 1,415.1
Government agency notes —
 2,308.9
 —
 —
 2,308.9
 —
 2,050.7
 —
 —
 2,050.7
United States Treasury securities —
 1,744.9
 —
 —
 1,744.9
 —
 2,038.0
 —
 —
 2,038.0
Loans receivable —
 —
 295.7
 —
 295.7
 —
 —
 913.0
 —
 913.0
Total Investments at December 31, 2016 $1,081.5
 $4,053.8
 $21,370.9
 $137.5
 $26,643.7
Total Investments at December 31, 2018 $1,415.1
 $4,088.7
 $22,800.7
 $175.9
 $28,480.4
Mortgage loans payable $—
 $—
 $(2,332.1) $—
 $(2,332.1) $—
 $—
 $(2,608.0) $—
 $(2,608.0)

The following tables show the reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and nine months ended September 30, 2017March 31, 2019 and 2016 (in millions,2018 (millions, unaudited):
  Real Estate
Properties		 Real Estate
Joint Ventures		 Loans
Receivable		 Total
Level 3
Investments		 Mortgage
Loans
Payable
For the three months ended September 30, 2017          
Beginning balance July 1, 2017 $15,496.6
 $5,946.8
 $297.3
 $21,740.7
 $(2,290.1)
Total realized and unrealized gains (losses) included in changes in net assets 65.8
 17.6
 1.4
 84.8
 (4.1)
    Purchases(1)
 317.1
 13.1
 0.1
 330.3
 (17.7)
    Sales (225.3) —
 —
 (225.3) —
    Settlements(2)
 —
 (302.1) —
 (302.1) 0.9
Ending balance September 30, 2017 $15,654.2
 $5,675.4
 $298.8
 $21,628.4
 $(2,311.0)
 Real Estate
Properties		 Real Estate
Joint Ventures		 Loans
Receivable		 Total
Level 3
Investments		 Mortgage
Loans
Payable		 Real Estate
Properties		 Real Estate
Joint Ventures		 Loans
Receivable		 Total
Level 3
Investments		 Mortgage
Loans
Payable
For the nine months ended September 30, 2017          
Beginning balance January 1, 2017 $15,452.8
 $5,622.4
 $295.7
 $21,370.9
 $(2,332.1)
For the three months ended March 31, 2019          
Beginning balance January 1, 2019 $15,531.1
 $6,356.6
 $913.0
 $22,800.7
 $(2,608.0)
Total realized and unrealized gains (losses) included in changes in net assets 133.2
 80.4
 1.4
 215.0
 (10.6) 73.9
 7.1
 1.2
 82.2
 (29.6)
Purchases(1)
 408.9
 275.6
 1.7
 686.2
 (17.7) 366.7
 57.1
 74.4
 498.2
 —
Sales (340.7) —
 —
 (340.7) —
 (3.1) —
 

 (3.1) —
Settlements(2)
 —
 (303.0) —
 (303.0) 49.4
 —
 (0.4) (21.3) (21.7) 4.7
Ending balance September 30, 2017 $15,654.2
 $5,675.4
 $298.8
 $21,628.4
 $(2,311.0)
Ending balance March 31, 2019 $15,968.6
 $6,420.4
 $967.3
 $23,356.3
 $(2,632.9)

  Real Estate
Properties		 Real Estate
Joint Ventures		 Loans
Receivable		 Total
Level 3
Investments		 Mortgage
Loans
Payable
For the three months ended September 30, 2016          
Beginning balance July 1, 2016 $15,131.3
 $4,238.9
 $100.6
 $19,470.8
 $(2,383.2)
Total realized and unrealized gains (losses) included in changes in net assets 53.3
 23.9
 0.1
 77.3
 (29.1)
    Purchases(1)
 82.1
 1,043.4
 69.0
 1,194.5
 —
    Sales (58.0) —
 —
 (58.0) —
    Settlements(2)
 —
 (0.2) —
 (0.2) 34.2
Ending balance September 30, 2016 $15,208.7
 $5,306.0
 $169.7
 $20,684.4
 $(2,378.1)

  Real Estate
Properties		 Real Estate
Joint Ventures		 Loans
Receivable		 Total
Level 3
Investments		 Mortgage
Loans
Payable
For the nine months ended September 30, 2016          
Beginning balance January 1, 2016 $14,606.2
 $4,068.4
 $100.6
 $18,775.2
 $(1,794.4)
Total realized and unrealized gains (losses) included in changes in net assets 268.7
 157.4
 0.1
 426.2
 (54.8)
    Purchases(1)
 486.7
 1,082.1
 69.0
 1,637.8
 (563.5)
    Sales (152.9) —
 —
 (152.9) —
    Settlements(2)
 —
 (1.9) —
 (1.9) 34.6
Ending balance September 30, 2016 $15,208.7
 $5,306.0
 $169.7
 $20,684.4
 $(2,378.1)

  Real Estate
Properties		 Real Estate
Joint Ventures		 Loans
Receivable		 Total
Level 3
Investments		 Mortgage
Loans
Payable
For the three months ended March 31, 2018          
Beginning balance January 1, 2018 $15,742.7
 $5,860.6
 $298.8
 $21,902.1
 $(2,238.3)
Total realized and unrealized gains included in changes in net assets 90.5
 24.2
 0.1
 114.8
 27.7
    Purchases(1)
 216.2
 14.4
 20.1
 250.7
 (386.0)
    Sales (143.4) —
 —
 (143.4) —
    Settlements(2)
 —
 (93.6) —
 (93.6) 2.4
Ending balance March 31, 2018 $15,906.0
 $5,805.6
 $319.0
 $22,030.6
 $(2,594.2)
(1) 
Includes purchases, contributions for joint ventures, capital expenditures, lending for loans receivable and debt assumed as partassumption of a real estate transaction.mortgage loans payable.
(2) 
Includes operating income for real estate joint ventures net of distributions, principal payments and payoffs of loans receivable, and principal payments and extinguishment of mortgage loans payable.

The following table shows quantitative information about unobservable inputs related to the Level 3 fair value measurements as of September 30, 2017March 31, 2019 (unaudited).
TypeAsset ClassValuation
Technique(s)		Unobservable
Inputs		Range (Weighted Average)
Real Estate Properties and Joint VenturesOfficeIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.5% - 8.0%8.6% (6.5%)
4.0% - 7.5% (5.5%)
Income Approach—Direct CapitalizationOverall Capitalization Rate3.8% - 7.0% (4.8%)
IndustrialIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.3% - 9.3% (6.8%)
4.4% - 8.3% (5.5%)
Income Approach—Direct CapitalizationOverall Capitalization Rate4.0% - 7.8% (4.9%)
ApartmentIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.5% - 7.8% (6.5%)
3.8% - 6.8% (5.0%)
Income Approach—Direct CapitalizationOverall Capitalization Rate3.3% - 6.0% (4.5%)
RetailIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.0% - 10.7% (6.4%)
4.3% - 7.3%8.8% (5.3%)
Income Approach—Direct CapitalizationOverall Capitalization Rate3.3% - 10.5% (4.7%)
Mortgage Loans PayableOffice and IndustrialDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		36.0% - 62.4% (47.1%)
3.7% - 5.5% (4.2%)
Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk
Premium Multiple		36.0% - 62.4% (47.1%)
1.2 - 1.4 (1.3)
ApartmentDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		31.1% - 62.3% (48.0%)
3.5% - 4.2% (4.0%)
Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk
Premium Multiple		31.1% - 62.3% (48.0%)
1.2 - 1.4 (1.3)
RetailDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		31.9% - 55.9% (39.5%)
4.0% - 4.9% (4.2%)
Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk
Premium Multiple		31.9% - 55.% (39.5%)
1.2 - 1.3 (1.2)
Loans ReceivableOffice, Retail and StorageDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		70.8% - 79.2% (75.6%)
6.0% - 8.3% (7.1%)





The following table shows quantitative information about unobservable inputs related to the Level 3 fair value measurements as of March 31, 2018 (unaudited).
TypeAsset ClassValuation
Technique(s)		Unobservable
Inputs		Range (Weighted Average)
Real Estate Properties and Joint VenturesOfficeIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.5% - 8.6% (6.6%)
4.0% - 7.5% (5.5%)
  Income Approach—Direct CapitalizationOverall Capitalization Rate3.8% - 7.0% (4.8%)
 IndustrialIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.5% - 8.5% (6.6%8.9% (6.8%)
4.8%4.5% - 8.3% (5.5%)
  Income Approach—Direct CapitalizationOverall Capitalization Rate4.0% - 7.5% (4.9%(5.0%)
 ApartmentIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.0% - 8.0% (6.1%7.8% (6.2%)
3.5% - 6.5%6.3% (4.8%)
  Income Approach—Direct CapitalizationOverall Capitalization Rate3.3% - 6.0%5.8% (4.3%)
 RetailIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.0% - 10.4%11.0% (6.4%)
4.3% - 8.8%9.0% (5.2%)
  Income Approach—Direct CapitalizationOverall Capitalization Rate3.9%3.8% - 8.8%10.0% (4.6%)
Mortgage Loans PayableOffice and IndustrialDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		38.0%36.4% - 70.0% (44.0%68.7% (46.9%)
3.3%3.9% - 5.2%5.5% (4.2%)
Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk
Premium Multiple		36.4% - 68.7% (46.9%)
1.2 - 1.5 (1.3)
ApartmentDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		26.9% - 63.9% (39.9%)
3.4% - 4.0% (3.7%)
  Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk
Premium Multiple		38.0%26.9% - 70.0% (44.0%63.9% (39.9%)
1.21.1 - 1.61.4 (1.3)
 ApartmentRetailDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		28.1%17.8% - 65.6% (41.2%56.7% (32.7%)
2.8%3.6% - 3.6% (3.2%4.8% (3.9%)
  Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk
Premium Multiple		28.1%17.8% - 65.6% (41.2%)
1.1 - 1.5 (1.3)
RetailDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		18.0% - 56.2% (32.9%)
2.8% - 4.3% (3.6%)
Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk
Premium Multiple		18.0% - 56.2% (32.9%56.7% (32.7%)
1.1 - 1.4 (1.2)
Loans ReceivableOffice, Retail and StorageDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		60.1%59.5% - 74.5% (73.9%77.5% (75.4%)
4.2% - 8.3% (6.2%(6.4%)

Real Estate Properties and Joint Ventures: The significant unobservable inputs used in the fair value measurement of the Account’s real estate property and joint venture investments are the selection of certain investment rates (Discount Rate, Terminal Capitalization Rate, and Overall Capitalization Rate). Significant increases (decreases) in any of those inputs in isolation would result in significantly lower (higher) fair value measurements, respectively.
Mortgage Loans Payable: The significant unobservable inputs used in the fair value measurement of the Account’s mortgage loans payable are the loan to value ratios and the selection of certain credit spreads and weighted average cost of capital risk premiums. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value, respectively.
Loans Receivable: The significant unobservable inputs used in the fair value measurement of the Account’s loans receivable are the loan to value ratios and the selection of certain credit spreads. Significant increases (decreases) in any of those inputs in isolation would result in a significantly lower (higher) fair value, respectively.
During the ninethree months ended September 30, 2017March 31, 2019 and 2016,2018, there were no transfers between Levels 1, 2 or 3.

The amount of total net unrealized gains (losses) included in changes in net assets attributable to the change in net unrealized gains (losses) relating to Level 3 investments and mortgage loans payable using significant unobservable inputs still held as of the reporting date is as follows (in millions,(millions, unaudited):
 
Real Estate
Properties
 
Real Estate
Joint
Ventures
 
Loans
Receivable
 
Total
Level 3
Investments
 
Mortgage
Loans
Payable
For the three months ended September 30, 2017$68.0
 $17.9
 $1.4
 $87.3
 $(4.1)
For the nine months ended September 30, 2017$139.0
 $80.7
 $1.4
 $221.1
 $(10.6)
For the three months ended September 30, 2016$53.9
 $23.7
 $0.1
 $77.7
 $(29.1)
For the nine months ended September 30, 2016$270.1
 $157.2
 $0.1
 $427.4
 $(54.8)
As of September 30, 2017, two of the limited partnership investments were in dissolution. Colony Realty Partners LP began liquidation in May 2014, with final dissolution anticipated during 2017. Lion Gables Apartment Fund began liquidation in February 2015 and has sold all of the Fund’s assets. Final dissolution of the entity is anticipated during 2017.
Transwestern Mezzanine Realty Partners III, LLC (“Transwestern”) may engage in liquidation activities in 2017 based on the terms of its partnership agreement. The Account may elect to sell or transfer its ownership units by giving notice and acquiring consent from the management committee of Transwestern, which requires approval by a majority of the members. Redemption of the Account’s interest in Transwestern prior to liquidation is prohibited, unless a supermajority of the members approves the redemption request.
Clarion Gables Multi-Family Trust LP allows redemptions with an advanced notice of three months or more. Redemptions are funded using the partnership’s available cash, which may not immediately be in excess of the redemption amount, and may not be sufficient to fund the redemption amount for several months. The general partner has sole discretion in identifying how much cash is available to process redemptions. The partnership allows the Account to sell its interest in the partnership, subject to the consent and approval of the general partner.
Taconic New York City GP Fund, LP prohibits redemptions in the partnership prior to liquidation. Liquidation of the partnership is estimated to begin no earlier than 2024. The partnership allows the Account to sell its interest in the partnership, subject to the consent and approval of the general partner.
 
Real Estate
Properties
 
Real Estate
Joint
Ventures
 
Loans
Receivable
 
Total
Level 3
Investments
 
Mortgage
Loans
Payable
For the three months ended March 31, 2019$73.9
 $2.5
 $1.2
 $77.6
 $(29.6)
For the three months ended March 31, 2018$94.6
 $24.2
 $0.1
 $118.9
 $27.7
Note 5—6—Investments in Joint Ventures
The Account owns interests in several real estate properties through joint ventures and receives distributions and allocations of profits and losses from the joint ventures based on the Account’s ownership interest in those investments. Several of these joint ventures have mortgage loans payable collateralized by the properties owned by the aforementioned joint ventures. At September 30, 2017,March 31, 2019, the Account held investments in joint ventures with ownership interest percentages that ranged from 33.3% to 97.5%97.0%. Certain joint ventures are subject to adjusted distribution percentages when earnings in the investment reach a pre-determined threshold. The fair value of the Account’s equity interest in these joint ventures was $5.7 billion and $5.6 billion at September 30, 2017 and December 31, 2016, respectively.
A condensed summary of the results of operations of the joint ventures are shown below (in millions,(millions, unaudited):
For the Three Months Ended September 30, For the Nine Months Ended September 30,For the Three Months Ended March 31,
2017 2016 2017 20162019 2018
Operating Revenue and Expenses  
       
Revenues$218.0
 $190.5
 $645.0
 $509.4
$266.1
 $225.8
Expenses108.3
 94.6
 315.0
 259.5
145.3
 140.6
Excess of revenues over expenses$109.7
 $95.9
 $330.0
 $249.9
$120.8
 $85.2
Note 7—Investments in Limited Partnerships
Taconic New York City GP Fund, LP prohibits redemptions in the partnership prior to liquidation. Liquidation of the partnership is estimated to begin no earlier than 2024. The partnership allows the Account to sell its interest in the partnership, subject to the consent and approval of the general partner.
LCS SHIP Venture I, LLC prohibits redemptions prior to liquidation. The Account is permitted to sell or transfer its interest in the company with the consent and approval of the manager.

Note 6—8—Loans Receivable
The Account’s loan receivable portfolio is comprised of mezzanine loans secured by the borrower’s direct and indirect interest in commercial real estate. Mezzanine loans are subordinate to first mortgages on the underlying real estate collateral. The following property types represent the underlying real estate collateral for the Account's mezzanine loans (millions):
  March 31, 2019  
  (unaudited) December 31, 2018
  Fair Value % Fair Value %
Office $566.9
 58.6% $512.1
 56.2%
Industrial 155.1
 16.0% 176.4
 19.3%
Retail 101.6
 10.5% 101.6
 11.1%
Storage 83.8
 8.7% 63.2
 6.9%
Apartments 59.9
 6.2% 59.7
 6.5%
  $967.3
 100.0% $913.0
 100.0%
The Account monitors the risk profile of the loan receivable portfolio with the assistance of a third-party rating service that models the loans and assigns risk ratings based on inputs such as loan-to-value ratios, yields, credit quality of the borrowers, property types of the collateral, geographic and local market dynamics, physical condition of the collateral, and the underlying structure of the loans. Ratings for loans are updated monthly. Assigned ratings can range from AAA to C, with a AAA designation representing debt with the lowest level of credit risk and C representing a greater risk of default or principal loss. Mezzanine debt in good health is typically reflective of a risk rating in the B range (e.g., BBB, BB, B), as these ratings reflect borrowers' having adequate financial resources to service their financial commitments, but also acknowledging that adverse economic conditions, should they occur, would likely impede on a borrowers' ability to pay.
The following table presents the fair values of the Account's loan portfolio based on the risk ratings as of March 31, 2019 (unaudited), listed in order of the strength of the risk rating (from strongest to weakest):
  Number of Loans Fair Value %
BBB 2 $79.9
 8.3%
BB 6 655.8
 67.7%
B 5 205.1
 21.2%
C 1 20.2
 2.1%
NR1
 1 6.3
 0.7%
  15 $967.3
 100.0%
(1) "NR" designates loans not assigned an internal credit rating. As of March 31, 2019, this is representative of one loan collateralized by an interest in a joint venture invested in real estate. The loan is scheduled to mature on July 12, 2019. Management expects all principal and interest owed to the Account for this loan to be collected in full.
The Account has no loans in non-performing status as of March 31, 2019.


Note 9—Mortgage Loans Payable
At September 30, 2017,March 31, 2019, the Account had outstanding mortgage loans payable secured by the following properties (in millions)(millions):
Property 
Annual Interest Rate and
Payment Frequency(2)
 Principal
Amounts Outstanding as of		 Maturity
September 30, 2017 December 31, 2016 
    (Unaudited)    
The Legend at Kierland(4) (5) 
 4.97% paid monthly $—
 $21.8
 August 1, 2017
The Tradition at Kierland(4) (5)
 4.97% paid monthly —
 25.8
 August 1, 2017
Mass Court(4)
 2.88% paid monthly 92.6
 92.6
 September 1, 2019
Red Canyon at Palomino Park(4) (6)
 5.34% paid monthly 27.1
 27.1
 August 1, 2020
Green River at Palomino Park(4) (6)
 5.34% paid monthly 33.2
 33.2
 August 1, 2020
Blue Ridge at Palomino Park(4) (6)
 5.34% paid monthly 33.4
 33.4
 August 1, 2020
Ashford Meadows(4) 
 5.17% paid monthly 44.6
 44.6
 August 1, 2020
The Knoll(1) (4) 
 3.98% paid monthly 17.6
 —
 December 5, 2020
The Corner(4) 
 4.66% paid monthly 105.0
 105.0
 June 1, 2021
The Palatine(1) (4) 
 4.25% paid monthly 79.1
 80.0
 January 10, 2022
The Forum at Carlsbad(1) (4)
 4.25% paid monthly 89.2
 90.0
 March 1, 2022
The Colorado(4)
 3.69% paid monthly 91.7
 91.7
 November 1, 2022
The Legacy at Westwood(4)
 3.69% paid monthly 46.7
 46.7
 November 1, 2022
Regents Court(4)
 3.69% paid monthly 39.6
 39.6
 November 1, 2022
The Caruth(4)
 3.69% paid monthly 45.0
 45.0
 November 1, 2022
Fourth & Madison(4)
 3.75% paid monthly 200.0
 200.0
 June 1, 2023
1001 Pennsylvania Avenue 3.70% paid monthly 330.0
 330.0
 June 1, 2023
1401 H Street NW(4)
 3.65% paid monthly 115.0
 115.0
 November 5, 2024
32 South State Street(4)
 4.48% paid monthly 24.0
 24.0
 June 6, 2025
780 Third Avenue(4) 
 3.55% paid monthly 150.0
 150.0
 August 1, 2025
780 Third Avenue(4) 
 3.55% paid monthly 20.0
 20.0
 August 1, 2025
701 Brickell Avenue(4) 
 3.66% paid monthly 184.0
 184.0
 April 1, 2026
55 Second Street(4) (7)
 3.74% paid monthly 137.5
 137.5
 October 1, 2026
1900 K Street, NW 3.93% paid monthly 163.0
 163.0
 April 1, 2028
501 Boylston Street(4) 
 3.70% paid monthly 216.5
 216.5
 April 1, 2028
Total Principal Outstanding   $2,284.8
 $2,316.5
  
Fair Value Adjustment(3)
   26.2
 15.6
  
Total Mortgage Loans Payable   $2,311.0
 $2,332.1
  
Property 
Annual Interest Rate and
Payment Frequency(2)
 Principal
Amounts Outstanding as of		 Maturity
March 31, 2019 (unaudited) December 31, 2018 
Mass Court(1)
 2.88% paid monthly 89.7
 90.2
 September 1, 2019
Red Canyon at Palomino Park(4)
 5.34% paid monthly 27.1
 27.1
 August 1, 2020
Green River at Palomino Park(4)
 5.34% paid monthly 33.2
 33.2
 August 1, 2020
Blue Ridge at Palomino Park(4)
 5.34% paid monthly 33.4
 33.4
 August 1, 2020
Ashford Meadows Apartments 5.17% paid monthly 44.6
 44.6
 August 1, 2020
The Knoll(1)
 3.98% paid monthly 16.8
 16.9
 December 5, 2020
Ascent at Windward 3.51% paid monthly 34.6
 34.6
 January 1, 2022
The Palatine(1)
 4.25% paid monthly 77.0
 77.4
 January 10, 2022
The Forum at Carlsbad(1)
 4.25% paid monthly 86.9
 87.3
 March 1, 2022
Fusion 1560 3.42% paid monthly 37.4
 37.4
 June 10, 2022
The Colorado(1)
 3.69% paid monthly 89.4
 89.9
 November 1, 2022
The Legacy at Westwood(1)
 3.69% paid monthly 45.6
 45.8
 November 1, 2022
Regents Court(1)
 3.69% paid monthly 38.6
 38.8
 November 1, 2022
Fourth & Madison(1)
 3.75% paid monthly 197.4
 198.2
 June 1, 2023
Fourth & Madison 4.17% paid monthly 90.0
 90.0
 June 1, 2023
1001 Pennsylvania Avenue(1)
 3.70% paid monthly 325.4
 327.0
 June 1, 2023
Biltmore at Midtown 3.94% paid monthly 36.4
 36.4
 July 5, 2023
Cherry Knoll 3.78% paid monthly 35.3
 35.3
 July 5, 2023
Lofts at SoDo 3.94% paid monthly 35.1
 35.1
 July 5, 2023
1401 H Street, NW 3.65% paid monthly 115.0
 115.0
 November 5, 2024
Circa Green Lake 3.71% paid monthly 52.0
 52.0
 March 5, 2025
Union - South Lake Union 3.66% paid monthly 57.0
 57.0
 March 5, 2025
Holly Street Village 3.65% paid monthly 81.0
 81.0
 May 1, 2025
Township Apartments 3.65% paid monthly 49.0
 49.0
 May 1, 2025
32 South State Street 4.48% paid monthly 24.0
 24.0
 June 6, 2025
780 Third Avenue 3.55% paid monthly 150.0
 150.0
 August 1, 2025
780 Third Avenue 3.55% paid monthly 20.0
 20.0
 August 1, 2025
701 Brickell Avenue 3.66% paid monthly 184.0
 184.0
 April 1, 2026
55 Second Street(5)
 3.74% paid monthly 137.5
 137.5
 October 1, 2026
1900 K Street, NW 3.93% paid monthly 163.0
 163.0
 April 1, 2028
99 High Street 3.90% paid monthly 277.0
 277.0
 March 1, 2030
Total Principal Outstanding   $2,683.4
 $2,688.1
  
Fair Value Adjustment(3)
   (50.5) (80.1)  
Total Mortgage Loans Payable   $2,632.9
 $2,608.0
  
(1) 
The mortgage is adjusted monthly for principal payments.
(2) 
Interest rates are fixed. Some mortgages held by the Account are structured to begin principal and interest payments after an initial interest only period.
(3) 
The fair value adjustment consists of the difference (positive or negative) between the principal amount of the outstanding debt and the fair value of the outstanding debt. See Note 1—Organization and Significant Accounting Policies.
(4)
These properties are each owned by separate wholly-owned subsidiaries of TIAA for benefit of the Account.
(5)
Mortgage loans on the individual properties in the Kierland Apartment Portfolio were paid off on May 1, 2017.
(6) 
Represents mortgage loans on these individual properties which are held within the Palomino Park portfolio.
(7)(5) 
This mortgage is comprised of three individual loans, all with equal recourse, interest rate and maturity. The principal balances by loan are $79.0 million, $45.0 million and $13.5 million.


Note 7—10—Line of Credit
On September 20, 2018, the Account entered into a $500.0 million unsecured revolving credit agreement (“Line of Credit”) syndicated across four national banks (“Lenders”), with each Lender providing a $125.0 million commitment. Access to the Line of Credit expires on September 20, 2021, with an option to extend the Line of Credit for two consecutive twelve months terms at the Account’s election. The Account may request an additional $250.0 million in commitments from the Lenders at any time; however, this request is subject to approval at the sole discretion of the Lenders and is not a guarantee that an expansion beyond the original $500.0 million commitment will be granted. Draws against the Line of Credit can take the form of Eurodollar Loans or Alternate Base Rate Loans (“ABR Loans”). Eurodollar Loans and ABR Loans both require a minimum funding of $5.0 million. The Account is charged a fee of 0.20% per annum on the unused portion of the Line of Credit. For the three months ended March 31, 2019, $0.3 million was charged to the Account for expenses related to the Line of Credit.
Eurodollar Loans are issued for a term of twelve months or less and bear interest during the period (“Interest Period”) at a rate equal to the Adjusted London Interbank Offer Rate (“Adjusted LIBOR”) plus a spread ranging between 0.85%-1.05% per annum (the “Applicable Rate”), with the spread dependent upon the leverage ratio of the Account. The Adjusted LIBOR Rate is calculated by multiplying the Statutory Reserve Rate, as determined by the Federal Reserve Board for Eurodollar liabilities, by the LIBOR rate, as determined by the Intercontinental Exchange on the date of issuance that corresponds to the length of the Interest Period of the Eurodollar Loan. The Account may prepay Eurodollar Loans at any time during the life of the loan without penalty. The Account is limited to five active Eurodollar Loans through the Line of Credit; however, the Account may retire and initiate new Eurodollar Loans without restriction so long as the total number of loans in active status never exceeds the limit.
ABR Loans are issued for a specific length of time and bear interest at a rate equal to the highest rate among the following calculations plus the Applicable Rate: a) the Prime Rate on the date of issuance, with the Prime Rate being defined as the rate of interest last quoted by the Wall Street Journal as the Prime Rate; b) the Federal Reserve Bank of New York (“NYFRB”) Rate as provided by the NYFRB on the date of issuance plus 0.5%; or c) the Adjusted LIBOR Rate plus 1.0%. The Account may prepay ABR Loans at any time during the life of the loan without penalty.
As of March 31, 2019, the Account had no active loans outstanding on the Line of Credit. The Account is in compliance with all covenants required by the Line of Credit.

Note 11—Financial Highlights
Selected condensed financial information for an Accumulation Unit of the Account is presented below. Per Accumulation Unit data is calculated on average units outstanding.
For the Nine Months Ended September 30, 2017 Years Ended December 31,For the Three Months Ended March 31, 2019 Years Ended December 31,
2016 2015 20142018 2017 2016
(Unaudited)      (Unaudited)      
Per Accumulation Unit Data:              
Rental income$12.737
 $16.433
 $15.538
 $15.862
$4.323
 $17.757
 $17.132
 $16.433
Real estate property level expenses and taxes5.784
 7.534
 7.319
 7.788
2.165
 8.548
 7.722
 7.534
Real estate income, net6.953
 8.899
 8.219
 8.074
2.158
 9.209
 9.410
 8.899
Other income3.340
 3.594
 3.342
 3.459
1.567
 6.162
 4.762
 3.594
Total income10.293
 12.493
 11.561
 11.533
3.725
 15.371
 14.172
 12.493
Expense charges(1)
2.476
 3.290
 3.092
 2.880
0.887
 3.161
 3.318
 3.290
Investment income, net7.817
 9.203
 8.469
 8.653
2.838
 12.210
 10.854
 9.203
Net realized and unrealized gain on investments and mortgage loans payable3.804
 9.660
 18.911
 27.868
4.319
 6.877
 5.839
 9.660
Net increase in Accumulation Unit Value11.621
 18.863
 27.380
 36.521
7.157
 19.087
 16.693
 18.863
Accumulation Unit Value:              
Beginning of period381.636
 362.773
 335.393
 298.872
417.416
 398.329
 381.636
 362.773
End of period$393.257
 $381.636
 $362.773
 $335.393
$424.573
 $417.416
 $398.329
 $381.636
Total return(3)
3.04% 5.20% 8.16% 12.22%1.71% 4.79% 4.37% 5.20%
Ratios to Average net assets(2):
              
Expenses(1)
0.83% 0.86% 0.86% 0.89%0.84% 0.76% 0.83% 0.86%
Investment income, net2.63% 2.41% 2.37% 2.68%2.68% 2.95% 2.72% 2.41%
Portfolio turnover rate(3):
              
Real estate properties(4)
1.6% 1.3% 5.7% 6.5%0.1% 11.8% 2.7% 1.3%
Marketable securities(5)
5.2% 3.5% 10.0% 15.9%0.5% 5.1% 5.7% 3.5%
Accumulation Units outstanding at end of period (in millions)61.9
 62.4
 60.4
 57.9
Net assets end of period (in millions)$24,839.8
 $24,304.7
 $22,360.0
 $19,829.0
Accumulation Units outstanding at end of period (millions)60.8
 60.7
 61.3
 62.4
Net assets end of period (millions)$26,321.7
 $25,842.6
 $24,942.6
 $24,304.7
(1) 
Expense charges per Accumulation Unit and the Ratio of Expenses to average net assets reflect the year to date Account level expenses and exclude real estate property level expenses which are included in real estate income, net.
(2) 
Percentages for the ninethree months ended September 30, 2017March 31, 2019 are annualized.
(3) 
Percentages for the ninethree months ended September 30, 2017March 31, 2019 are not annualized.
(4) 
Real estate investment portfolio turnover rate is calculated by dividing the lesser of purchases or sales of real estate property investments (including contributions to, or return of capital distributions received from, existing joint venture and limited partnership investments) by the average value of the portfolio of real estate investments held during the period.
(5) 
Marketable securities portfolio turnover rate is calculated by dividing the lesser of purchases or sales of securities, excluding securities having maturity dates at acquisition of one year or less, by the average value of the portfolio securities held during the period.


Note 8—12—Accumulation Units
Changes in the number of Accumulation Units outstanding were as follows (in millions):
For the Nine Months Ended September 30, 2017 For the Year Ended December 31, 2016For the Three Months Ended March 31, 2019 For the Year Ended December 31, 2018
(Unaudited)  (Unaudited)  
Outstanding:      
Beginning of period62.4
 60.4
60.7
 61.3
Credited for premiums5.1
 8.2
1.6
 6.5
Annuity, other periodic payments, withdrawals and death benefits(5.6) (6.2)(1.5) (7.1)
End of period61.9
 62.4
60.8
 60.7
Note 9—13—Commitments and Contingencies
Commitments—TheAs of March 31, 2019 and December 31, 2018, the Account had $32.0 million and $39.0 million of outstandingthe following immediately callable commitments to purchase additional interests in its limited partnership investments as of September 30, 2017 and December 31, 2016, respectively. The commitment at September 30, 2017 and December 31, 2016 is related to the investments:
 March 31, 2019 December 31, 2018
 (Unaudited)  
Taconic New York City GP Fund$13.7
 $26.0
LCS SHIP Venture I, LLC47.6
 75.0
 $61.3
 $101.0
Taconic New York City GP Fund, LP, in whichFund—The general partner can call capital during the Account has entered into an agreement to provide funding. Ascommitment period at any time. The commitment period is the fifth anniversary from closing (November 2020). The commitment period may be closed earlier at the joint election of September 30, 2017, $13.0 millionTIAA and the general partner if 90% of the commitment has been funded. Oncesatisfied.
LCS SHIP Venture I, LLC—The general partner can call capital at any time during the remaining commitment period, which is funded, the Account anticipates holding a 60%-one year90% interest in the fund. from closing (June 2019).
Contingencies—In the normal course of business, the Account may be named, from time to time, as a defendantor may be involved in various legal actions, including arbitrations, class actions and other litigation.
The Account establishes an accrual for all litigation and regulatory matters when it believes it is partyprobable that a loss has been incurred and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted, as appropriate, in light of additional information. The amount of loss ultimately incurred in relation to various claims and routine litigation arising inthose matters may be higher or lower than the ordinary courseamounts accrued for those matters.
As of business. Managementthe date of this report, management of the Account does not believe that the results of any such claims or litigation, individually or in the aggregate, will have a material effect on the Account’s business, financial position or results of operations.
Note 10—Securities Lending
The Account may lend securities to qualified borrowers to earn additional income.  The Account receives cash collateral against the loaned securities and maintains cash collateral in an amount not less than 100% of the market value of loaned securities during the period of the loan; any additional collateral required due to changes in security values is delivered to the Account the next business day. Cash collateral received by the Account is invested exclusively in an interest-bearing deposit account.  The value of the loaned securities and the liability to return the cash collateral received are reflected in the consolidated statements of assets and liabilities. 
As of September 30, 2017, securities lending transactions are for real-estate related equity securities, and the resulting loans are continuous, can be recalled at any time, and have no set maturity. Securities lending income recognized by the Account consists of interest earned on cash collateral and lending fees, net of any rebates to the borrower and compensation to the agent. Such income is reflected within interest income on the consolidated statements of operations.  In lending its securities, the Account bears the market risk with respect to the investment of collateral and the risk that the agent may default on its contractual obligations to the Account. The agent bears the risk that the borrower may default on its obligation to return the loaned securities as the agent is contractually obligated to indemnify the Account if at the time of a default by a borrower some or all of the loan securities have not been returned.
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


REAL ESTATE PROPERTIES—57.6%55.2% and 58.0%54.5%
Location/Description Type Fair Value at Type Fair Value at
September 30, 2017 December 31, 2016March 31, 2019 December 31, 2018
 (Unaudited)    (Unaudited)   
Alabama:     
Riverchase Village Retail $40.2
 $40.0
 
Arizona:          
Camelback Center Office $58.4
 $56.4
  Office 44.1

 63.4
 
Kierland Apartment Portfolio Apartments 147.7
 127.9
(1) 
California:          
55 Second Street Office 353.1
(1) 
 335.0
(1) 
 Office 383.4
(1) 
 368.2
(1) 
88 Kearny Street Office 177.6
 172.3
  Office 192.3

 189.1
 
200 Middlefield Road Office 61.2
 60.5
  Office 65.4

 61.8
 
12910 Mulberry Drive Industrial Industrial 21.7
 21.7
 
30700 Russell Ranch Office 36.6

 34.6
 
Allure at Camarillo Apartments 62.8

 61.8
 
BLVD63 Apartments 162.0
 157.0
  Apartments 164.0

 164.0
 
Castro Station Office 163.0
 158.2
 
Bridgepointe Shopping Center Retail 128.0

 125.0
 
Centre Pointe and Valley View Industrial 43.9
 42.8
  Industrial 52.0

 51.2
 
Cerritos Industrial Park Industrial 140.0
 126.3
  Industrial 153.1

 153.1
 
Charleston Plaza Retail 93.0
 92.0
  Retail 99.8

 100.0
 
Frontera Industrial Business Park Industrial 80.9

 74.0
 
Great West Industrial Portfolio Industrial 160.9
 166.1
  Industrial 182.5

 178.5
 
Holly Street Village Apartments 148.0
 146.0
  Apartments 152.0
(1) 
 152.1
(1) 
Larkspur Courts Apartments 141.4
 140.5
  Apartments 146.0

 146.0
 
Northern CA RA Industrial Portfolio Industrial 87.0
 76.7
  Industrial 101.6

 93.3
 
Oakmont IE West Portfolio Industrial 87.2
 82.7
  Industrial 104.5

 103.5
 
Oceano at Warner Center Apartments 89.0
 88.3
  Apartments 90.1

 89.3
 
Ontario Industrial Portfolio Industrial 397.4
(11) 
 438.0
  Industrial 450.7

 421.8
 
Ontario Mills Industrial Portfolio Industrial 55.9
 52.0
  Industrial 62.1

 61.8
 
Otay Mesa Industrial Portfolio Industrial 31.3
 29.4
 
Pacific Plaza Office 115.2
 115.0
  Office 108.8

 116.5
 
Rancho Cucamonga Industrial Portfolio Industrial 70.9
(11) 
 174.2
  Industrial 78.7

 76.2
 
Rancho Del Mar Apartments 92.5
 92.5
 
Regents Court Apartments 95.4
(1) 
 89.9
(1) 
 Apartments 100.0
(1) 
 104.0
(1) 
Southern CA RA Industrial Portfolio Industrial 136.2
 135.0
  Industrial 144.6

 143.4
 
Stella Apartments 178.9
 173.1
  Apartments 183.7

 183.7
 
Stevenson Point Industrial 49.9
 49.3
  Industrial 61.4

 61.3
 
The Forum at Carlsbad Retail 220.0
(1) 
 221.5
(1) 
 Retail 224.0
(1) 
 225.0
(1) 
The Legacy at Westwood Apartments 143.0
(1) 
 142.1
(1) 
 Apartments 147.1
(1) 
 144.0
(1) 
Township Apartments Apartments 89.8
 89.6
  Apartments 90.4
(1) 
 90.5
(1) 
West Lake North Business Park Office 60.4
 60.0
  Office 63.4

 62.6
 
Westcreek Apartments 51.1
 48.2
  Apartments 55.1

 55.0
 
Westwood Marketplace Retail 131.8
 125.0
  Retail 142.0

 142.0
 
Wilshire Rodeo Plaza Office 326.7
 320.7
  Office 325.1

 312.4
 
Colorado:          
1600 Broadway Office 111.5
 —
 
Palomino Park Apartments 327.9
(1) 
 314.1
(1) 
 Apartments 352.0
(1) 
 348.0
(1) 
South Denver Marketplace Retail 72.7
 73.0
  Retail 71.1

 72.7
 
Connecticut:          
Wilton Woods Corporate Campus Office 134.0
 141.9
  Office 118.1

 121.0
 
Florida:     
701 Brickell Avenue Office 362.6
(1) 
 380.7
(1) 
Broward Industrial Portfolio Industrial 54.1
 —
 
Casa Palma Apartments 95.0
 97.0
 
Orion on Orpington Apartments 42.1
 —
 
Publix at Weston Commons Retail 74.1
 73.0
 
Seneca Industrial Park Industrial 106.4
 102.7
 
South Florida Apartment Portfolio Apartments 105.0
 104.1
 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Location/Description Type Fair Value at Type Fair Value at
September 30, 2017 December 31, 2016March 31, 2019 December 31, 2018
 (Unaudited)    (Unaudited)   
Florida:     
5 West Apartments $62.2
 $62.2
 
701 Brickell Avenue Office 395.1
(1) 
 394.3
(1) 
Broward Industrial Portfolio Industrial 60.8

 59.1
 
Casa Palma Apartments 101.0

 102.0
 
Fusion 1560 Apartments 82.0
(1) 
 82.0
(1) 
Lofts at SoDo Apartments 66.0
(1) 
 66.7
(1) 
Orion on Orpington Apartments 49.8

 49.2
 
Publix at Weston Commons Retail 74.4

 74.6
 
Seneca Industrial Park Industrial 121.0

 117.5
 
South Florida Apartment Portfolio Apartments 108.8

 108.7
 
The Manor Apartments Apartments 52.8
 53.6
  Apartments 51.6

 52.9
 
The Manor at Flagler Village Apartments 148.0
 150.8
  Apartments 137.0

 137.1
 
The Residences at the Village of Merrick Park Apartments 75.0
 74.1
  Apartments 70.3

 72.7
 
Urban Centre Office 138.8
 121.4
 
Weston Business Center Industrial 92.8
 92.7
  Industrial 100.9

 97.8
 
Georgia:          
Ascent at Windward Apartments 68.4
(1) 
 68.4
(1) 
Atlanta Industrial Portfolio Industrial 31.6
(6) 
 62.8
  Industrial 37.2

 35.5
 
Biltmore at Midtown Apartments 70.3
(1) 
 70.4
(1) 
Glen Lake Apartments 54.7
 —
 
Shawnee Ridge Industrial Portfolio Industrial 89.6
 86.7
  Industrial 89.8

 89.2
 
Illinois:          
32 South State Street Retail 47.7
(1) 
 46.5
(1) 
 Retail 50.1
(1) 
 50.4
(1) 
803 Corday Apartments 92.5
 —
  Apartments 93.1

 94.2
 
Chicago Caleast Industrial Portfolio Industrial 80.3
 81.8
  Industrial 84.9

 82.8
 
Chicago Industrial Portfolio Industrial 96.6
 85.5
  Industrial 30.0

 28.7
 
Maryland:          
Cherry Knoll Apartments 59.7
(1) 
 59.2
(1) 
Landover Logistics Center Industrial 43.1
 39.8
  Industrial 44.0

 44.3
 
The Shops at Wisconsin Place Retail 91.0
 92.8
  Retail 76.8

 76.9
 
Massachusetts:          
99 High Street Office 504.0
 514.1
  Office 506.0
(1) 
 506.4
(1) 
501 Boylston Street Office 506.3
(1) 
 490.3
(1) 
Fort Point Creative Exchange Portfolio Office 217.9
 223.0
  Office 248.0

 247.1
 
Northeast RA Industrial Portfolio Industrial 40.2
 41.3
  Industrial 42.3

 42.0
 
One Beeman Road Industrial 33.7
 —
  Industrial 34.1

 34.0
 
Minnesota:          
The Bridges Apartments 62.1
 —
  Apartments 64.9

 64.9
 
The Knoll Apartments 33.3
(1) 
 —
  Apartments 36.7
(1) 
 36.1
(1) 
New Jersey:          
10 New Maple Avenue Industrial 18.7

 18.0
 
200 Milik Street Industrial 52.1
 51.2
  Industrial 54.1

 54.0
 
Marketfair Retail 105.0
 104.2
  Retail 104.0

 104.3
 
Amazon Distribution Center Industrial 110.0
 101.0
 
South River Road Industrial Industrial 87.2
 71.9
  Industrial 104.2

 102.5
 
New York:          
21 Penn Plaza Office 266.3
 275.2
  Office 324.6

 317.8
 
250 North 10th Street Apartments 166.0
 162.0
  Apartments 147.0

 151.0
 
425 Park Avenue Ground Lease 454.0
 450.0
  Ground Lease 464.0

 461.0
 
430 West 15th Street Office 140.5
 116.1
 
780 Third Avenue Office 429.0
(1) 
 425.0
(1) 
 Office 410.0
(1) 
 418.7
(1) 
837 Washington Street Office 209.0
 215.0
 
The Colorado Apartments 256.0
(1) 
 258.1
(1) 
The Corner Apartments 253.1
(1) 
 250.0
(1) 
Oregon:     
The Cordelia Apartments 49.0
 50.0
 
Pennsylvania:     
1619 Walnut Street Retail 23.4
 23.4
 
The Pepper Building Apartments —
 52.9
 
South Carolina:     
Greene Crossing Apartments 65.8
 65.8
 
Tennessee:     
Southside at McEwen Retail 48.2
 48.8
 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Location/Description Type Fair Value at Type Fair Value at
September 30, 2017 December 31, 2016March 31, 2019 December 31, 2018
 (Unaudited)    (Unaudited)   
837 Washington Street Office $224.0

 $222.0
 
The Colorado Apartments 254.2
(1) 
 254.9
(1) 
North Carolina:     
Centric Gateway Apartments 72.8

 70.0
 
Oregon:     
The Cordelia Apartments 42.5

 41.7
 
Pennsylvania:     
1619 Walnut Street Retail 23.2

 24.1
 
South Carolina:     
Greene Crossing Apartments 74.8

 75.1
 
Tennessee:     
Southside at McEwen Retail 48.8

 48.6
 
Texas:          
3131 McKinney Office 48.6

 49.7
 
Beltway North Commerce Center Industrial 19.2
 19.5
  Industrial 28.5

 26.3
 
Carrington Park Apartments 63.1

 65.1
 
Churchill on the Park Apartments 72.3

 71.3
 
Cliffs at Barton Creek Apartments 45.7
 45.8
  Apartments 46.2

 46.7
 
Dallas Industrial Portfolio Industrial 210.5
 201.3
  Industrial 223.8

 222.3
 
Houston Apartment Portfolio Apartments 159.3
 159.3
  Apartments 164.1

 164.4
 
Lincoln Centre Office 353.0
 347.0
  Office 372.2

 372.6
 
Northwest Houston Industrial Portfolio Industrial 70.0
 68.2
  Industrial 74.5

 75.6
 
Park 10 Distribution Industrial 10.3
 11.3
  Industrial 10.1

 10.0
 
Pinnacle Industrial Portfolio Industrial 53.4
 52.8
  Industrial 64.4

 51.2
 
Pinto Business Park Industrial 130.8
 134.2
  Industrial 147.3

 144.9
 
The Caruth Apartments 82.7
(1) 
 84.3
(1) 
The Maroneal Apartments 54.5
 52.1
  Apartments 55.6

 56.1
 
Virginia:          
8270 Greensboro Drive Office 47.3
 47.6
  Office 48.5

 47.5
 
Ashford Meadows Apartments Apartments 106.6
(1) 
 107.2
(1) 
 Apartments 106.0
(1) 
 107.1
(1) 
Plaza America Retail 115.0
 109.0
  Retail 114.0

 116.3
 
The Ellipse at Ballston Office 84.4
 79.8
  Office 83.3

 82.4
 
The Palatine Apartments 121.1
(1) 
 130.9
(1) 
 Apartments 124.1
(1) 
 122.0
(1) 
Washington:          
Circa Green Lake Apartments 94.4
 92.5
  Apartments 100.0
(1) 
 98.2
(1) 
Fourth and Madison Office 527.0
(1) 
 521.0
(1) 
 Office 590.0
(1) 
 580.0
(1) 
Millennium Corporate Park Office 182.1
 190.1
 
Northwest RA Industrial Portfolio Industrial 38.2
 31.7
  Industrial 46.3

 43.0
 
Pacific Corporate Park Industrial 44.5
 42.0
  Industrial 58.5

 52.8
 
Prescott Wallingford Apartments Apartments 62.0
 58.8
  Apartments 67.9

 66.5
 
Rainier Corporate Park Industrial 114.7
 104.0
  Industrial 145.1

 141.6
 
Regal Logistics Campus Industrial 97.8
 83.1
  Industrial 115.0

 109.1
 
Union - South Lake Union Apartments 109.1
 105.3
  Apartments 114.0
(1) 
 114.0
(1) 
Washington DC:          
1001 Pennsylvania Avenue Office 810.0
(1) 
 810.0
(1) 
 Office 783.5
(1) 
 782.8
(1) 
1401 H Street, NW Office 203.1
(1) 
 230.0
(1) 
 Office 220.3
(1) 
 209.5
(1) 
1900 K Street, NW Office 330.2
(1) 
 335.0
(1) 
 Office 340.0
(1) 
 342.1
(1) 
Mass Court Apartments 171.0
(1) 
 169.0
(1) 
Mazza Gallerie Retail —
 78.0
 
The Ashton Apartments 38.5
 39.2
 
The Louis at 14th Apartments 175.0
 183.2
 
The Woodley Apartments 191.0
 203.0
 
TOTAL REAL ESTATE PROPERTIES     
(Cost $12,944.7 and $12,818.1) $15,654.2
  $15,452.8
 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Location/Description Type Fair Value at
March 31, 2019 December 31, 2018
    (Unaudited)   
Mass Court Apartments $166.1
(1) 
 $166.1
(1) 
The Ashton Apartments 31.3

 30.5
 
The Louis at 14th Apartments 163.0

 162.0
 
The Woodley Apartments 195.0

 196.0
 
Various:        
Colony Industrial Portfolio Industrial 132.6
(3) 
 —
 
TOTAL REAL ESTATE PROPERTIES       
(Cost $13,051.4 and $12,687.8)   $15,968.6
  $15,531.1
 
REAL ESTATE JOINT VENTURES AND LIMITED PARTNERSHIPS—21.4%22.9% and 21.6%22.9%
REAL ESTATE JOINT VENTURES—20.9%22.2% and 21.1%22.3%
Location/Description Type Fair Value at Type Fair Value at
September 30, 2017 December 31, 2016March 31, 2019 December 31, 2018
 (Unaudited)    (Unaudited)   
California:        
CA—Colorado Center LP
Colorado Center (50% Account Interest)
 Office $355.1
(2) 
 $567.8
  Office $381.0
(2) 
 $376.2
(2) 
PC Borrower, LLC
Pacific City (70% Account Interest)
 Retail 133.8
 128.5
  Retail 59.1
(2) 
 59.5
(2) 
TREA 9625 Towne Center, LLC
9625 Towne Centre Drive (49.9% Account Interest)		 Land 47.5

 45.5
 
TREA Campus Pointe 1, LLC
Campus Pointe 1 (45% Account Interest)		 Office 139.4
 137.5
  Office 154.0

 153.7
 
TREA Campus Pointe 2, LLC
Campus Pointe 2 (43.16% Account Interest)		 Office 104.2
 85.7
 
TREA Campus Pointe 2 & 3, LLC
Campus Pointe 2 & 3 (45% Account Interest)		 
Office (5)
 134.7

 132.8
 
TREA Campus Pointe 4, LLC
Campus Pointe 4 (45% Account Interest)		 Office 9.3

 9.2
 
T-C 1500 Owens, LLC
1500 Owens Street (49.9% Account Interest)
 Office 77.0
 74.8
  Office 79.9

 78.8
 
T-C Foundry Square II Venture LLC
Foundry Square II (50.1% Account Interest)
 Office 257.4
 200.1
(2) 
 Office 297.4

 290.1
 
T-C Illinois Street, LLC
409-499 Illinois Street (40% Account Interest)
 Office 206.3
 196.8
  Office 227.6

 223.9
 
Valencia Town Center Associates LP
Valencia Town Center (50% Account Interest)
 Retail 137.5
(2) 
 128.0
(2) 
 Retail 141.0
(2) 
 140.5
(2) 
Florida:        
Florida Mall Associates, Ltd
The Florida Mall (50% Account Interest)
 Retail 754.8
(2) 
 755.8
(2) 
 Retail 768.5
(2) 
 769.7
(2) 
TREA Florida Retail, LLC
Florida Retail Portfolio (80% Account Interest)
 Retail 150.0
 147.6
  Retail 155.9

 156.0
 
West Dade County Associates
Miami International Mall (50% Account Interest)
 Retail 164.2
(2) 
 161.1
(2) 
 Retail 169.2
(2) 
 170.3
(2) 
Indiana:     
THP Park on Morton, LLC
Park on Morton (97% Account Interest)
 Apartments 29.3
(2) 
 29.5
(2) 
Maryland:        
WP Project Developer
The Shops at Wisconsin Place (33.33% Account Interest)
 Retail 21.0
 19.4
  Retail 17.3

 20.4
 
Massachusetts:    
One Boston Place REIT
One Boston Place (50.25% Account Interest)
 Office 238.8
 224.2
 
T-C 225 Binney, LLC
225 Binney Street (70% Account Interest)
 Office 195.7
 194.9
 
Nevada:     
Fashion Show Holding I, LLC
Fashion Show (50% Account Interest)
 Retail 837.9
(2) 
 839.1
(2) 
New York:    
401 West 14th Street, LLC
401 West 14th Street (42.19% Account Interest)
 Retail 45.5
(2) 
 41.1
(2) 
817 Broadway Owner, LLC
817 Broadway (61.46% Account Interest)
 Office 23.3
(2) 
 20.8
(2) 
MRA Hub 34 Holding, LLC
The Hub (95% Account Interest)
 Office 57.1
(2) 
 54.9
(2) 
RGM 42, LLC
MiMA (70% Account Interest)
 Apartments 188.0
(2) 
 194.7
(2) 
TREA 35th Street LIC Investor Member, LLC
Commerce LIC (97.5% Account Interest)
 Industrial 57.9
 —
 
Tennessee:    
West Town Mall, LLC
West Town Mall (50% Account Interest)
 Retail 137.1
(2) 
 154.4
(2) 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Location/Description Type Fair Value at
September 30, 2017 December 31, 2016
    (Unaudited)   
Texas:      
Four Oaks Venture LP
Four Oaks Place LP (51% Account Interest)
 Office 341.6
(2) 
 342.3
(2) 
Washington:      
T-C REA 400 Fairview Investor, LLC
400 Fairview (90% Account Interest)
 Office 262.4
  243.6
 
Various:      
DDRTC Core Retail Fund, LLC
DDR Joint Venture (85% Account Interest)
 Retail 615.8
(2,3) 
 552.8
(2,3) 
Storage Portfolio I, LLC
Storage Portfolio (75% Account Interest)
 Storage 173.6
(2,3) 
 156.5
(2,3) 
TOTAL REAL ESTATE JOINT VENTURES
(Cost $4,399.3 and $4,393.2)
   $5,675.4
  $5,622.4
 
         
         
LIMITED PARTNERSHIPS—0.5% and 0.5%    
Clarion Gables Multi-Family Trust LP (8.407% Account Interest) $124.9
  $121.6
 
Colony Realty Partners LP (5.27% Account Interest) —
  3.1
(10) 
Lion Gables Apartment Fund (18.46% Account Interest) —
  0.2
(5) 
Taconic New York City GP Fund, LP (60% Account Interest) 11.0
  4.8
 
Transwestern Mezz Realty Partners III, LLC (11.708% Account Interest) 4.8
  7.8
 
TOTAL LIMITED PARTNERSHIPS
(Cost $140.9 and $137.2)
   $140.7
  $137.5
 
TOTAL REAL ESTATE JOINT VENTURES AND LIMITED PARTNERSHIPS
(Cost $4,540.2 and $4,530.4)
 $5,816.1
  $5,759.9
 
Location/Description Type Fair Value at
March 31, 2019 December 31, 2018
    (Unaudited)   
Massachusetts:      
One Boston Place REIT
One Boston Place (50.25% Account Interest)
 Office $242.0

 $239.1
 
T-C 225 Binney, LLC
225 Binney Street (70% Account Interest)
 Office 223.8

 220.2
 
T-C 501 Boylston Street Member, LLC
501 Boylston (50.1% Account Interest)
 Office 194.9
(2) 
 195.6
(2) 
Nevada:        
Fashion Show Holding I, LLC
Fashion Show (50% Account Interest)
 Retail 795.1
(2) 
 819.1
(2) 
New York:      
401 West 14th Street, LLC
401 West 14th Street (42.19% Account Interest)
 Retail 47.9
(2) 
 48.4
(2) 
440 Ninth Avenue Owner, LLC
440 Ninth Avenue (88.52% Account Interest)
 Office 123.2
(2) 
 121.4
(2) 
817 Broadway Owner, LLC
817 Broadway (61.46% Account Interest)
 Office 34.4
(2) 
 28.0
(2) 
MRA Hub 34 Holding, LLC
The Hub (95% Account Interest)
 Office 63.0
(2) 
 59.2
(2) 
RGM 42, LLC
MiMA (70% Account Interest)
 Apartments 117.4
(2) 
 118.4
(2) 
TREA 35th Street LIC Investor Member, LLC
Commerce LIC (97.5% Account Interest)
 Industrial —

 0.6
 
North Carolina:        
THP 1505 Hillsborough Street, LLC
The Theory (97% Account Interest)
 Apartments 32.4
(2) 
 —
 
Tennessee:      
West Town Mall, LLC
West Town Mall (50% Account Interest)
 Retail 151.1
(2) 
 154.3
(2) 
Texas:      
Four Oaks Venture LP
Four Oaks Place LP (51% Account Interest)
 Office 341.5
(2) 
 344.6
(2) 
THP Cabana Beach San Marcos, LLC
Cabana Beach San Marcos (97% Account Interest)
 Apartments 23.5
(2) 
 23.0
(2) 
THP The Forum at Sam Houston, LLC
The Forum - Sam Houston (97% Account Interest)
 Apartments 17.8
(2) 
 17.6
(2) 
THP West Campus, LLC
Aspen Heights (97% Account Interest)
 Apartments 45.1
(2) 
 42.3
(2) 
Various:      
DDRTC Core Retail Fund, LLC
SITE Centers Corp (85% Account Interest)
 Retail 652.9
(2,3) 
 655.8
(2,3) 
Simpson Housing LLP
Simpson Housing Portfolio (80% Account Interest)
 Apartments 406.2
(2,3) 
 400.1
(2,3) 
Storage Portfolio I, LLC
Storage Portfolio I (66.02% Account Interest)
 Storage 94.5
(2,3) 
 92.4
(2,3) 
Storage Portfolio II, LLC
Storage Portfolio II (90% Account Interest)
 Storage 124.1
(2,3) 
 120.4
(2,3) 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Location/Description Type Fair Value at
March 31, 2019 December 31, 2018
    (Unaudited)   
Storage Portfolio III, LLC
Storage Portfolio III (90% Account Interest)
 Storage $17.9
(3) 
 $—
 
TOTAL REAL ESTATE JOINT VENTURES
(Cost $5,109.1 and $5,030.9)
   $6,420.4
  $6,356.6
 
         
LIMITED PARTNERSHIPS—0.7% and 0.6%    
Clarion Gables Multi-Family Trust LP (1.681% Account Interest) $—
  $30.1
 
LCS SHIP Venture I, LLC (90% Account Interest) 157.7
  129.7
 
Taconic New York City GP Fund, LP (60% Account Interest) 27.9
  15.7
 
Transwestern Mezz Realty Partners III, LLC (11.715% Account Interest) 0.4
(8) 
 0.4
(8) 
TOTAL LIMITED PARTNERSHIPS
(Cost $191.9 and $176.9)
   $186.0
  $175.9
 
TOTAL REAL ESTATE JOINT VENTURES AND LIMITED PARTNERSHIPS
(Cost $5,301.0 and $5,207.8)
 $6,606.4
  $6,532.5
 
MARKETABLE SECURITIES—19.9%18.6% and 19.3%19.4%
REAL ESTATE-RELATED MARKETABLE SECURITIES—4.1%3.9% and 4.1%5.0%
Shares Issuer Fair Value at
September 30, 2017 December 31, 2016
2017 2016 
      (Unaudited)   
82,202
 84,437
 Acadia Realty Trust $2.3
  $2.8
 
28,294
 26,717
 Agree Realty Corporation 1.4
  1.2
 
2,132
 2,132
 Alexander's, Inc. 0.9
  0.9
 
92,255
 83,175
 Alexandria Real Estate Equities, Inc. 11.0
  9.2
 
48,980
 —
 Altisource Residential Corp. 0.5
  —
 
40,188
 41,010
 American Assets Trust, Inc. 1.6
  1.8
 
133,888
 138,467
 American Campus Communities, Inc. 5.9
  6.9
 
—
 6,347
 American Farmland Company —
  0.1
 
239,344
 233,916
 American Homes 4 Rent 5.2
  4.9
 
421,695
 443,315
 American Tower Corp. 57.6
  46.8
 
155,985
 163,592
 Apartment Investment and Management Company 6.8
  7.4
 
210,602
 223,733
 Apple Hospitality Inc. 4.0
  4.5
 
47,395
 38,282
 Armada Hoffler Properties Inc. 0.7
  0.6
 
27,462
 27,631
 Ashford Hospitality Prime Inc. 0.3
  0.4
 
75,865
 96,553
 Ashford Hospitality Trust, Inc. 0.5
  0.7
 
137,335
 143,728
 Avalonbay Communities, Inc. 24.5
  25.5
 
24,509
 21,354
 Bluerock Residential Growth, Inc. 0.3
  0.3
 
153,602
 160,997
 Boston Properties, Inc. 18.9
  20.3
 
172,155
 183,336
 Brandywine Realty Trust 3.0
  3.0
 
305,457
 319,555
 Brixmore Property Group Inc 5.7
  7.8
 
90,816
 91,727
 Camden Property Trust 8.3
  7.7
 
—
 89,419
 Care Capital Properties, Inc. —
  2.2
 
76,188
 64,966
 CareTrust REIT Inc. 1.5
  1.0
 
39,488
 43,788
 Catchmark Timber Trust, Inc. 0.5
  0.5
 
167,957
 178,895
 CBL & Associates Properties, Inc. 1.4
(9) 
 2.1
 
92,124
 92,124
 Cedar Shopping Centers, Inc. 0.5
  0.6
 
39,759
 39,759
 Chatham Lodging Trust 0.8
  0.8
 
58,946
 63,363
 Chesapeake Lodging Trust 1.6
  1.6
 
15,330
 —
 Clipper Realty, Inc. 0.2
(9) 
 —
 
541,689
 —
 Colony Northstar, Inc. 6.8
  —
 
—
 50,961
 Colony Starwood Homes —
  1.5
 
122,581
 130,704
 Columbia Property Trust Inc. 2.7
  2.8
 
—
 161,499
 Communication Sales & Leasing, Inc. —
  4.1
 
17,855
 13,231
 Community Healthcare Trust, Inc. 0.5
  0.3
 
117,713
 117,878
 CoreCivic, Inc. 3.2
  2.9
 
12,695
 12,695
 Corenergy Infrastructure Trust, Inc. 0.4
(9) 
 0.4
 
33,863
 35,452
 CoreSite Realty Corporation 3.8
  2.8
 
99,369
 98,668
 Corporate Office Properties Trust 3.3
  3.1
 
414,681
 358,876
 Cousins Properties Incorporated 3.9
  3.1
 
401,185
 378,286
 Crown Castle International Corporation 40.1
  32.8
 
180,122
 189,128
 Cubesmart 4.7
  5.1
 
86,428
 80,245
 CyrusOne Inc. 5.1
  3.6
 
92,007
 95,203
 DCT Industrial Trust, Inc. 5.3
  4.6
 
308,806
 326,844
 DDR Corp 2.8
  5.0
 
198,919
 211,566
 DiamondRock Hospitality Company 2.2
  2.4
 
203,672
 166,911
 Digital Realty Trust, Inc. 24.1
  16.4
 
Shares Issuer Fair Value at
March 31, 2019 December 31, 2018
2019 2018 
      (Unaudited)   
74,510
 110,762
 Acadia Realty Trust $2.0

 $2.6
 
30,997
 46,535
 Agree Realty Corporation 2.1

 2.8
 
63,163
 94,479
 Alexander & Baldwin, Inc. 1.6

 1.7
 
1,969
 2,986
 Alexander's, Inc. 0.7

 0.9
 
103,730
 146,953
 Alexandria Real Estate Equities, Inc. 14.8

 16.9
 
35,601
 52,670
 American Assets Trust, Inc. 1.6

 2.1
 
126,729
 188,889
 American Campus Communities, Inc. 6.0

 7.8
 
50,000
 75,276
 American Financial Trust, Inc. 0.5
(7) 
 1.0
(7) 
240,548
 357,614
 American Homes 4 Rent 5.6

 7.1
 
408,632
 606,653
 American Tower Corp. 80.5

 96.0
 
117,549
 118,616
 Americold Realty Trust 3.6

 3.0
 
145,007
 213,704
 Apartment Investment and Management Company 7.3

 9.4
 
201,523
 301,399
 Apple Hospitality Inc. 3.3

 4.3
 
45,656
 69,576
 Armada Hoffler Properties Inc. 0.7

 1.0
 
85,255
 108,956
 Ashford Hospitality Trust, Inc. 0.4

 0.4
 
128,539
 190,742
 Avalonbay Communities, Inc. 25.8

 33.2
 
22,100
 30,596
 Bluerock Residential Growth, Inc. 0.2

 0.3
 
143,804
 213,492
 Boston Properties, Inc. 19.3

 24.0
 
27,054
 39,766
 Braemar Hotels & Resorts, Inc. 0.3

 0.4
 
163,372
 243,776
 Brandywine Realty Trust 2.6

 3.1
 
280,637
 418,058
 Brixmore Property Group Inc 5.2

 6.1
 
116,745
 173,572
 Brookfield Property REIT 2.4

 2.8
 
9,679
 12,485
 BRT Apartments Corporation 0.1

 0.1
 
82,610
 123,044
 Camden Property Trust 8.4

 10.8
 
76,997
 115,194
 CareTrust REIT Inc. 1.8

 2.1
 
48,578
 64,018
 Catchmark Timber Trust, Inc. 0.5

 0.5
 
156,619
 239,329
 CBL & Associates Properties, Inc. 0.2
(7) 
 0.5
 
81,807
 112,105
 Cedar Shopping Centers, Inc. 0.3

 0.4
 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Shares Issuer Fair Value at
September 30, 2017 December 31, 2016
2017 2016 
      (Unaudited)   
144,167
 146,715
 Douglas Emmett, Inc. $5.7
  $5.4
 
355,455
 371,513
 Duke Realty Corporation 10.2
  9.9
 
—
 79,039
 DuPont Fabros Technology, Inc. —
  3.5
 
38,107
 38,107
 Easterly Government Properties, Inc. 0.8
  0.8
 
32,984
 34,448
 EastGroup Properties, Inc. 2.9
  2.5
 
73,142
 76,609
 Education Realty Trust, Inc. 2.6
  3.2
 
125,679
 128,313
 Empire State Realty Trust 2.6
  2.6
 
62,943
 66,086
 EPR Properties 4.4
  4.7
 
77,532
 74,499
 Equinix Inc. 34.6
  26.6
 
120,619
 132,412
 Equity Commonwealth 3.7
  4.0
 
81,386
 81,207
 Equity Lifestyle Properties, Inc. 6.9
  5.9
 
—
 97,735
 Equity One, Inc. —
  3.0
 
355,638
 378,516
 Equity Residential 23.4
  24.4
 
39,142
 39,142
 Escrow Winthrop Realty Trust 0.3
  0.3
 
65,165
 68,928
 Essex Property Trust, Inc. 16.6
  16.0
 
121,584
 123,598
 Extra Space Storage, Inc. 9.7
  9.5
 
33,146
 20,247
 Farmland Partners, Inc. 0.3
(9) 
 0.2
(9) 
72,018
 75,390
 Federal Realty Investment Trust 8.9
  10.7
 
—
 146,636
 FelCor Lodging Trust Incorporated —
  1.2
 
117,988
 122,078
 First Industrial Realty Trust, Inc. 3.6
  3.4
 
62,454
 62,454
 First Potomac Realty Trust 0.7
  0.7
 
242,943
 247,510
 Forest City Realty Trust A 6.2
  5.2
 
62,347
 62,347
 Four Corners Property Trust 1.6
  1.3
 
105,457
 105,457
 Franklin Street Properties Corp. 1.1
  1.4
 
200,306
 215,403
 Gaming and Leisure Properties, Inc. 7.4
  6.6
 
616,628
 528,439
 General Growth Properties, Inc. 12.8
  13.2
 
121,553
 75,332
 GEO Group, Inc./The 3.3
  2.7
 
32,335
 27,304
 Getty Realty Corp. 0.9
  0.7
 
27,842
 24,752
 Gladstone Commercial Corporation 0.6
  0.5
 
7,822
 —
 Gladstone Land Corporation 0.1
  —
 
14,323
 14,323
 Global Medical REIT, Inc. 0.1
(9) 
 0.1
(9) 
66,375
 169,785
 Global Net Lease, Inc. 1.5
  1.3
 
93,766
 74,542
 Government Properties Income Trust 1.8
  1.4
 
150,155
 439,336
 Gramercy Property Trust Inc. 4.5
  4.0
 
468,228
 488,199
 HCP, Inc. 13.0
  14.5
 
121,482
 121,172
 Healthcare Realty Trust Inc. 3.9
  3.7
 
197,648
 148,194
 Healthcare Trust of America 5.9
  4.3
 
38,921
 38,921
 Hersha Hospitality Trust 0.7
  0.8
 
100,544
 105,127
 Highwoods Properties, Inc. 5.2
  5.4
 
162,463
 172,557
 Hospitality Properties Trust 4.6
  5.5
 
730,412
 784,264
 Host Hotels & Resorts, Inc. 13.5
  14.8
 
156,033
 130,545
 Hudson Pacific Properties, Inc. 5.2
  4.5
 
70,772
 64,154
 Independence Realty Trust, Inc. 0.7
  0.6
 
130,841
 130,841
 Investors Real Estate Trust 0.8
  0.9
 
87,831
 —
 Invitation Homes 2.0
  —
 
262,389
 251,283
 Iron Mountain Inc. 10.2
  8.2
 
1,500,000
 1,500,000
 iShares Dow Jones US Real Estate Index Fund 119.8
  115.4
(9) 
86,089
 —
 JBG Smith Properties 2.9
  —
 
96,468
 96,739
 Kilroy Realty Corporation 6.9
  7.1
 
Shares Issuer Fair Value at
March 31, 2019 December 31, 2018
2019 2018 
      (Unaudited)   
42,430
 65,187
 Chatham Lodging Trust $0.8

 $1.2
 
54,866
 80,952
 Chesapeake Lodging Trust 1.5

 2.0
 
38,317
 47,817
 City Office REIT Inc. 0.4

 0.5
 
13,745
 21,288
 Clipper Realty, Inc. 0.2

 0.3
 
447,263
 661,676
 Colony Capital, Inc. 2.4

 3.1
 
110,056
 163,866
 Columbia Property Trust Inc. 2.5

 3.2
 
16,427
 23,436
 Community Healthcare Trust, Inc. 0.6

 0.7
 
109,859
 162,853
 CoreCivic, Inc. 2.1

 2.9
 
11,827
 16,269
 Corenergy Infrastructure Trust, Inc. 0.4

 0.5
 
38,264
 57,463
 Corepoint Lodging, Inc. 0.4

 0.7
 
33,851
 50,118
 CoreSite Realty Corporation 3.6

 4.4
 
96,020
 142,696
 Corporate Office Properties Trust 2.6

 3.0
 
388,959
 580,413
 Cousins Properties Incorporated 3.8

 4.6
 
385,746
 572,594
 Crown Castle International Corporation 49.4

 62.2
 
172,478
 255,847
 Cubesmart 5.5

 7.3
 
97,375
 144,491
 CyrusOne Inc. 5.1

 7.6
 
191,753
 284,793
 DiamondRock Hospitality Company 2.1

 2.6
 
191,388
 284,543
 Digital Realty Trust, Inc. 22.8

 30.3
 
149,410
 222,742
 Douglas Emmett, Inc. 6.0

 7.6
 
331,989
 493,225
 Duke Realty Corporation 10.2

 12.8
 
55,989
 86,054
 Easterly Government Properties, Inc. 1.0

 1.3
 
32,538
 48,463
 EastGroup Properties, Inc. 3.6

 4.4
 
131,890
 196,612
 Empire State Realty Trust 2.1

 2.8
 
68,597
 102,222
 EPR Properties 5.3

 6.5
 
77,071
 110,827
 Equinix Inc. 34.9

 39.1
 
79,653
 118,255
 Equity Lifestyle Properties, Inc. 9.1

 11.5
 
334,150
 495,921
 Equity Residential 25.2

 32.7
 
33,846
 47,818
 Essential Properties Realty 0.7

 0.7
 
61,197
 90,861
 Essex Property Trust, Inc. 17.7

 22.3
 
113,544
 168,808
 Extra Space Storage, Inc. 11.6

 15.3
 
31,764
 39,335
 Farmland Partners, Inc. 0.2

 0.2
 
67,788
 100,845
 Federal Realty Investment Trust 9.3

 11.9
 
115,212
 171,124
 First Industrial Realty Trust, Inc. 4.1

 4.9
 
62,656
 95,288
 Four Corners Property Trust 1.9

 2.5
 
96,428
 148,193
 Franklin Street Properties Corp. 0.7

 0.9
 
49,158
 66,846
 Front Yard Residential Corp. 0.5

 0.6
 
187,559
 279,615
 Gaming and Leisure Properties, Inc. 7.2

 9.0
 
111,159
 164,774
 GEO Group Inc./The 2.1

 3.2
 
30,292
 45,390
 Getty Realty Corp. 1.0

 1.3
 
26,518
 40,600
 Gladstone Commercial Corporation 0.6

 0.7
 
14,877
 17,897
 Gladstone Land Corporation 0.2
(7) 
 0.2
 
21,044
 27,913
 Global Medical REIT, Inc. 0.2

 0.2
 
70,838
 97,753
 Global Net Lease, Inc. 1.3

 1.7
 
—
 134,722
 Government Properties Income Trust —

 0.9
 
444,992
 651,177
 HCP, Inc. 13.9

 18.2
 
114,689
 170,298
 Healthcare Realty Trust Inc. 3.7

 4.8
 
191,882
 285,255
 Healthcare Trust of America 5.5

 7.2
 
32,932
 50,946
 Hersha Hospitality Trust 0.6

 0.9
 
94,566
 140,879
 Highwoods Properties, Inc. 4.4

 5.5
 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Shares Issuer Fair Value at
September 30, 2017 December 31, 2016
2017 2016 
      (Unaudited)   
413,143
 446,152
 Kimco Realty Corporation $8.1
  $11.2
 
82,157
 86,474
 Kite Realty Group Trust 1.7
  2.0
 
82,861
 86,839
 Lamar Advertising Corporation 5.7
  5.8
 
113,248
 118,625
 LaSalle Hotel Properties 3.3
  3.6
 
233,615
 246,697
 Lexington Realty Trust 2.4
  2.7
 
147,200
 154,875
 Liberty Property Trust 6.0
  6.1
 
45,893
 48,870
 Life Storage, Inc. 3.8
  4.2
 
39,429
 41,261
 LTC Properties, Inc. 1.9
  1.9
 
91,244
 93,046
 Mack-Cali Realty Corporation 2.2
  2.7
 
29,800
 23,475
 Medequities Realty Trust, Inc. 0.4
  0.3
 
362,242
 337,220
 Medical Properties Trust, Inc. 4.8
  4.1
 
113,412
 118,873
 Mid-America Apartment Communities, Inc. 12.1
  11.6
 
71,720
 69,038
 Monmouth Real Estate Investment Corporation 1.2
  1.1
 
—
 175,519
 Monogram Residential Trust Inc. —
  1.9
 
39,678
 38,542
 National Health Investors, Inc. 3.1
  2.9
 
148,742
 154,142
 National Retail Properties, Inc. 6.2
  6.8
 
44,249
 44,249
 National Storage Affiliates Trust 1.1
  1.0
 
83,324
 83,324
 New Senior Investment Group 0.8
  0.8
 
—
 175,401
 New York REIT —
  1.8
 
17,140
 17,140
 Nexpoint Residential Trust, Inc. 0.4
  0.4
 
54,554
 59,329
 NorthStar Realty Europe Corp. 0.7
  0.7
 
—
 189,799
 NorthStar Realty Finance Corp. —
  2.9
 
194,823
 181,435
 Omega Healthcare Investors, Inc. 6.2
(9) 
 5.7
 
16,324
 16,324
 One Liberty Properties, Inc. 0.4
  0.4
 
138,381
 144,614
 Outfront Media Inc. 3.5
  3.6
 
198,430
 157,741
 Paramount Group Inc. 3.2
  2.5
 
144,718
 —
 Park Hotels & Resorts, Inc. 4.0
  —
 
42,820
 45,533
 Parkway Properties, Inc. 1.0
  1.0
 
68,431
 75,815
 Pebblebrook Hotel Trust 2.5
(9) 
 2.3
 
69,866
 69,866
 Pennsylvania Real Estate Investment Trust 0.7
(9) 
 1.3
 
178,281
 141,267
 Physicians Realty Trust 3.2
  2.7
 
144,783
 153,053
 Piedmont Office Realty Trust, Inc. 2.9
  3.2
 
40,092
 39,487
 Potlatch Corporation 2.0
  1.6
 
30,894
 25,352
 Preferred Apartment Communities, Inc. 0.6
  0.4
 
526,083
 549,455
 ProLogis 33.4
  29.0
 
19,639
 20,916
 PS Business Parks, Inc. 2.6
  2.4
 
147,591
 152,197
 Public Storage, Inc. 31.6
  34.0
 
47,384
 47,125
 QTS Realty Trust, Inc. 2.5
  2.3
 
96,479
 98,883
 Quality Care Properties 1.5
  1.5
 
78,232
 82,342
 Ramco-Gershenson Properties Trust 1.0
  1.4
 
127,625
 129,796
 Rayonier, Inc. 3.7
  3.4
 
272,317
 270,184
 Realty Income Corporation 15.6
  15.5
 
149,168
 109,616
 Regency Centers Corporation 9.3
  7.6
 
107,617
 113,887
 Retail Opportunity Investment 2.0
  2.4
 
230,343
 247,302
 Retail Properties of America 3.0
  3.8
 
70,011
 67,197
 Rexford Industrial Realty Inc. 2.0
  1.6
 
169,181
 131,026
 RLJ Lodging Trust 3.7
  3.2
 
44,005
 50,994
 Ryman Hospitality Properties 2.7
  3.2
 
173,736
 68,440
 Sabra Health Care REIT Inc. 3.8
  1.7
 
Shares Issuer Fair Value at
March 31, 2019 December 31, 2018
2019 2018 
      (Unaudited)   
151,402
 225,198
 Hospitality Properties Trust $4.0

 $5.4
 
681,682
 1,014,135
 Host Hotels & Resorts, Inc. 12.9

 16.9
 
143,396
 213,134
 Hudson Pacific Properties, Inc. 4.9

 6.2
 
82,483
 123,683
 Independence Realty Trust, Inc. 0.9

 1.1
 
59,771
 88,878
 Industrial Logics Properties 1.2

 1.7
 
40,893
 —
 Infrareit, Inc. 0.9

 —
 
11,092
 16,729
 Investors Real Estate Trust 0.7

 0.8
 
318,068
 414,132
 Invitation Homes, Inc. 7.7

 8.3
 
264,295
 393,221
 Iron Mountain Inc. 9.4

 12.7
 
1,211,116
 1,500,000
 iShares Dow Jones US Real Estate Index Fund 105.4
(7) 
 112.4
(7) 
97,319
 144,518
 JBG Smith Properties 4.0

 5.0
 
91,904
 136,455
 Kilroy Realty Corporation 7.0

 8.6
 
378,323
 563,416
 Kimco Realty Corporation 7.0

 8.3
 
76,531
 113,467
 Kite Realty Group Trust 1.2

 1.6
 
78,494
 116,496
 Lamar Advertising Corporation 6.2

 8.1
 
196,197
 293,991
 Lexington Realty Trust 1.8

 2.4
 
137,198
 204,392
 Liberty Property Trust 6.6

 8.6
 
42,635
 63,299
 Life Storage, Inc. 4.1

 5.9
 
36,387
 54,350
 LTC Properties, Inc. 1.7

 2.3
 
83,688
 123,992
 Mack-Cali Realty Corporation 1.9

 2.4
 
26,462
 44,471
 Medequities Realty Trust, Inc. 0.3

 0.3
 
343,053
 503,539
 Medical Properties Trust, Inc. 6.3

 8.1
 
105,542
 157,147
 Mid-America Apartment Communities, Inc. 11.5

 15.0
 
82,477
 121,059
 Monmouth Real Estate Investment Corporation 1.1

 1.5
 
37,821
 56,533
 National Health Investors, Inc. 3.0

 4.3
 
147,365
 219,159
 National Retail Properties, Inc. 8.2

 10.6
 
52,362
 78,758
 National Storage Affiliates Trust 1.5

 2.1
 
74,702
 97,013
 New Senior Investment Group 0.4

 0.4
 
17,284
 25,395
 Nexpoint Residential Trust, Inc. 0.7

 0.9
 
41,319
 60,527
 NorthStar Realty Europe Corp. 0.7

 0.9
 
44,091
 —
 Office Properties Income Trust, Inc. 1.2

 —
 
184,210
 273,749
 Omega Healthcare Investors, Inc. 7.0

 9.6
 
14,028
 21,786
 One Liberty Properties, Inc. 0.4

 0.5
 
128,924
 192,190
 Outfront Media Inc. 3.0

 3.5
 
190,256
 289,253
 Paramount Group Inc. 2.7

 3.6
 
186,993
 276,143
 Park Hotels & Resorts, Inc. 5.8

 7.2
 
120,096
 186,399
 Pebblebrook Hotel Trust 3.7

 5.3
 
68,908
 96,360
 Pennsylvania Real Estate Investment Trust 0.4
(7) 
 0.6
 
168,960
 250,372
 Physicians Realty Trust 3.2

 4.0
 
116,727
 177,784
 Piedmont Office Realty Trust, Inc. 2.4

 3.0
 
61,330
 91,285
 Potlatch Corporation 2.3

 2.9
 
39,991
 54,653
 Preferred Apartment Communities, Inc. 0.6

 0.8
 
583,127
 865,465
 ProLogis 42.0

 50.8
 
18,416
 27,314
 PS Business Parks, Inc. 2.9

 3.6
 
138,208
 205,162
 Public Storage, Inc. 30.1

 41.5
 
47,123
 69,517
 QTS Realty Trust, Inc. 2.1

 2.6
 
119,982
 178,720
 Rayonier, Inc. 3.8

 4.9
 
274,765
 408,129
 Realty Income Corporation 20.2

 25.7
 
141,366
 210,244
 Regency Centers Corporation 9.5

 12.3
 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Shares Issuer Fair Value at
September 30, 2017 December 31, 2016
2017 2016 
      (Unaudited)   
11,006
 —
 Safety Income and Growth, Inc. $0.2
  $—
 
11,082
 14,267
 Saul Centers, Inc. 0.7
  0.9
 
119,786
 —
 SBA Communications Corporation 17.3
  —
 
63,334
 71,466
 Select Income Real Estate Investment Trust 1.5
  1.8
 
235,142
 248,749
 Senior Housing Properties Trust 4.6
  4.7
 
—
 36,820
 Silver Bay Realty Trust Corp. —
  0.6
 
310,266
 329,687
 Simon Property Group, Inc. 50.0
  58.6
 
96,162
 106,453
 SL Green Realty Corp. 9.7
  11.4
 
483,394
 483,032
 Spirit Realty Capital Inc. 4.1
  5.2
 
91,969
 78,649
 Stag Industrial, Inc. 2.5
  1.9
 
126,762
 —
 Starwood Waypoint Homes 4.6
  —
 
170,571
 162,012
 STORE Capital Corporation 4.2
  4.0
 
101,582
 88,627
 Summit Hotel Properties, Inc. 1.6
  1.4
 
75,320
 68,173
 Sun Communities, Inc. 6.5
  5.2
 
223,998
 227,526
 Sunstone Hotel Investors, Inc. 3.6
  3.5
 
93,587
 100,862
 Tanger Factory Outlet Centers, Inc. 2.3
  3.6
 
59,024
 63,335
 Taubman Centers, Inc. 2.9
  4.7
 
50,869
 48,484
 Terreno Realty Corporation 1.8
  1.4
 
136,929
 150,999
 The Macerich Company 7.5
  10.7
 
50,411
 50,411
 Tier Inc. 1.0
  0.9
 
265,245
 280,233
 UDR, Inc. 10.1
  10.2
 
30,879
 27,329
 UMH Properties, Inc. 0.5
  0.4
 
165,032
 —
 UNITI Group, Inc. 2.4
  —
 
13,049
 14,676
 Universal Health Realty Income Trust 1.0
  1.0
 
97,222
 93,500
 Urban Edge Properties 2.3
  2.6
 
31,959
 31,959
 Urstadt Biddle Properties, Inc. 0.7
  0.8
 
353,728
 371,296
 Ventas, Inc. 23.0
  23.2
 
975,362
 1,012,629
 VEREIT, Inc. 8.1
  8.6
 
172,179
 177,780
 Vornado Realty Trust 13.2
  18.6
 
185,508
 193,859
 Washington Prime Group, Inc. 1.5
  2.0
 
76,866
 78,200
 Washington Real Estate Investment Trust 2.5
  2.6
 
119,216
 120,820
 Weingarten Realty Investors 3.8
  4.3
 
365,663
 380,425
 Welltower Inc. 25.7
  25.5
 
744,863
 783,938
 Weyerhaeuser Company 25.3
  23.6
 
38,883
 32,110
 Whitestone Real Estate Investment Trust B 0.5
  0.5
 
105,577
 95,234
 WP Carey Inc. 7.1
  5.6
 
107,316
 113,720
 Xenia Hotels & Resorts Inc. 2.3
  2.2
 
TOTAL REAL ESTATE-RELATED MARKETABLE SECURITIES
(Cost $889.5 and $883.9)		 $1,121.0
  $1,081.5
 
Shares Issuer Fair Value at
March 31, 2019 December 31, 2018
2019 2018 
      (Unaudited)   
103,907
 155,276
 Retail Opportunity Investment $1.8

 $2.5
 
200,102
 298,353
 Retail Properties of America 2.4

 3.2
 
14,197
 21,416
 Retail Value, Inc. 0.4

 0.6
 
85,350
 126,860
 Rexford Industrial Realty Inc. 3.1

 3.7
 
160,837
 239,679
 RLJ Lodging Trust 2.8

 3.9
 
73,375
 113,496
 RPT Realty 0.9

 1.4
 
41,372
 61,126
 Ryman Hospitality Properties 3.4

 4.1
 
164,557
 244,568
 Sabra Health Care REIT Inc. 3.2

 4.0
 
8,808
 —
 Safe Hold, Inc. 0.2

 —
 
—
 10,996
 Safety Income and Growth, Inc —

 0.2
 
10,912
 16,999
 Saul Centers, Inc. 0.6

 0.9
 
104,314
 154,833
 SBA Communications Corporation 20.8

 25.1
 
—
 121,549
 Select Income Real Estate Investment Trust —

 0.9
 
218,790
 326,164
 Senior Housing Properties Trust 2.6

 3.8
 
287,035
 426,117
 Simon Property Group, Inc. 52.3

 71.6
 
141,975
 209,816
 Site Centers Corporation 1.9

 2.3
 
75,249
 113,961
 SL Green Realty Corp. 6.8

 9.0
 
39,805
 59,766
 Spirit MTA REIT 0.3

 0.4
 
79,609
 117,972
 Spirit Realty Capital Inc. 3.2

 4.3
 
90,513
 135,097
 Stag Industrial, Inc. 2.7

 3.4
 
178,272
 264,895
 STORE Capital Corporation 6.0

 7.5
 
95,646
 141,848
 Summit Hotel Properties, Inc. 1.1

 1.4
 
78,237
 116,162
 Sun Communities, Inc. 9.3

 11.8
 
211,084
 313,714
 Sunstone Hotel Investors, L.L.C. 3.0

 4.1
 
84,997
 126,963
 Tanger Factory Outlet Centers, Inc. 1.8

 2.6
 
55,118
 81,759
 Taubman Centers, Inc. 2.9

 3.8
 
55,559
 80,363
 Terreno Realty Corporation 2.3

 2.8
 
126,543
 188,118
 The Macerich Company 5.5

 8.1
 
49,608
 73,743
 Tier Inc. 1.4

 1.5
 
254,297
 366,433
 UDR, Inc. 11.6

 14.5
 
31,221
 46,595
 UMH Properties, Inc. 0.4

 0.6
 
156,256
 231,999
 UNITI Group, Inc. 1.7
(7) 
 3.6
 
11,854
 18,151
 Universal Health Realty Income Trust 0.9

 1.1
 
101,189
 150,757
 Urban Edge Properties 1.9

 2.5
 
27,344
 42,533
 Urstadt Biddle Properties, Inc. 0.6

 0.9
 
331,433
 491,993
 Ventas, Inc. 21.1

 28.8
 
902,354
 1,342,240
 VEREIT, Inc. 7.6

 9.6
 
377,253
 554,541
 Vici Properties, Inc. 8.3

 10.4
 
160,452
 238,674
 Vornado Realty Trust 10.8

 14.8
 
172,881
 257,311
 Washington Prime Group, Inc. 1.0

 1.3
 
74,011
 110,436
 Washington Real Estate Investment Trust 2.1

 2.5
 
111,105
 165,849
 Weingarten Realty Investors 3.3

 4.1
 
346,587
 514,421
 Welltower Inc. 26.9

 35.7
 
697,839
 1,035,575
 Weyerhaeuser Company 18.4

 22.6
 
35,300
 54,425
 Whitestone Real Estate Investment Trust B 0.4

 0.7
 
147,964
 219,891
 WP Carey Inc. 11.6

 14.4
 
104,221
 154,344
 Xenia Hotels & Resorts Inc. 2.3

 2.7
 
TOTAL REAL ESTATE-RELATED MARKETABLE SECURITIES
(Cost $906.1 and $1,274.7)		 $1,128.9
  $1,415.1
 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


OTHER MARKETABLE SECURITIES—15.8%14.7% and 15.2%14.4%
GOVERNMENT AGENCY NOTES—12.1%8.6% and 8.7%7.2%
PrincipalPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value atPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value at
September 30, 2017 December 31, 2016March 31, 2019 December 31, 2018
2017 2016 
20192019 2018 Issuer 
Yield(4)
 
Maturity
Date
 March 31, 2019 December 31, 2018
   (Unaudited)      
$—
 $22.0
 Fannie Mae Discount Notes 0.416% 2/1/2017 $—
 $22.0
—
 $20.0
 $—
 $20.0
——
 42.0
 Fannie Mae Discount Notes 0.366% - 0.482% 3/1/2017 —
 42.0
—
 3.6
 Fannie Mae Discount Notes 2.350% 2/6/2019 —
 3.5
——
 10.0
 Fannie Mae Discount Notes 0.427% 3/3/2017 —
 10.0
—
 22.6
 Fannie Mae Discount Notes 2.390% 2/13/2019 —
 22.5
——
 20.0
 Fannie Mae Discount Notes 0.427% 3/6/2017 —
 20.0
—
 17.6
 Fannie Mae Discount Notes 2.350% 3/1/2019 —
 17.5
32.132.1
 —
 Fannie Mae Discount Notes 2.340%-2.450% 4/3/2019 32.1
 —
23.423.4
 —
 Fannie Mae Discount Notes 2.340% 4/15/2019 23.4
 —
40.240.2
 —
 Fannie Mae Discount Notes 2.420% 5/1/2019 40.1
 —
25.025.0
 —
 Fannie Mae Discount Notes 2.400% 5/10/2019 24.9
 —
20.220.2
 —
 Fannie Mae Discount Notes 2.430% 6/3/2019 20.1
 —
15.115.1
 —
 Fannie Mae Discount Notes 2.420% 6/10/2019 15.0
 —
——
 20.0
 Fannie Mae Discount Notes 0.406% 3/13/2017 —
 20.0
—
 6.0
 Farmer Mac Discount Notes 2.440% 3/15/2019 —
 6.0
18.718.7
 —
 Farmer Mac Discount Notes 2.480% 6/21/2019 18.6
 —
——
 30.3
 Fannie Mae Discount Notes 0.406% 3/27/2017 —
 30.3
—
 9.1
 Federal Farm Credit Bank Discount Notes 2.380% 3/18/2019 —
 9.0
—
 25.0
 Fannie Mae Discount Notes 0.406% 3/28/2017 —
 25.0
—
 30.0
 Fannie Mae Discount Notes 0.518% 4/18/2017 —
 29.9
—
 24.0
 Fannie Mae Discount Notes 0.483% - 0.579% 4/19/2017 —
 24.0
—
 31.5
 Fannie Mae Discount Notes 0.447% - 0.539% 5/1/2017 —
 31.5
—
 49.9
 Fannie Mae Discount Notes 0.518% 5/2/2017 —
 49.9
—
 39.9
 Fannie Mae Discount Notes 0.539% 5/5/2017 —
 39.9
34.9
 —
 Fannie Mae Discount Notes 0.987% 10/2/2017 34.9
 —
47.1
 —
 Fannie Mae Discount Notes 1.017% - 1.038% 10/11/2017 47.1
 —
35.1
 —
 Fannie Mae Discount Notes 1.027% 10/12/2017 35.1
 —
33.6
 —
 Fannie Mae Discount Notes 1.017% 10/13/2017 33.6
 —
37.1
 —
 Fannie Mae Discount Notes 1.017% - 1.037% 10/19/2017 37.1
 —
15.1
 —
 Fannie Mae Discount Notes 1.038% 10/23/2017 15.1
 —
18.018.0
 18.0
 Federal Farm Credit Bank Discount Notes 2.490% 5/2/2019 18.0
 17.9
20.020.0
 —
 Fannie Mae Discount Notes 1.038% 10/25/2017 20.0
 —
20.0
 20.0
 Federal Farm Credit Bank Discount Notes 2.540% 5/23/2019 19.9
 19.8
40.0
 —
 Fannie Mae Discount Notes 1.038% 10/27/2017 40.0
 —
35.0
 —
 Fannie Mae Discount Notes 0.996% 10/30/2017 35.0
 —
75.1
 —
 Fannie Mae Discount Notes 0.996% - 1.006% 11/1/2017 75.0
 —
10.0
 —
 Fannie Mae Discount Notes 0.985% 11/3/2017 10.0
 —
24.6
 —
 Fannie Mae Discount Notes 1.048% 11/6/2017 24.5
 —
5.05.0
 —
 Fannie Mae Discount Notes 1.048% 11/9/2017 5.0
 —
5.0
 —
 Federal Farm Credit Bank Discount Notes 2.480% 6/21/2019 5.0
 —
75.0
 —
 Fannie Mae Discount Notes 1.058% 11/20/2017 74.9
 —
75.0
 —
 Fannie Mae Discount Notes 1.058% 11/21/2017 74.9
 —
30.0
 —
 Fannie Mae Discount Notes 1.058% 11/22/2017 30.0
 —
20.0
 —
 Fannie Mae Discount Notes 1.007% 11/24/2017 20.0
 —
25.0
 —
 Fannie Mae Discount Notes 1.042% 12/20/2017 24.9
 —
40.0
 —
 Fannie Mae Discount Notes 1.063% 1/11/2018 40.0
 —
30.0
 —
 Fannie Mae Discount Notes 1.038% 1/22/2018 29.9
 —
46.2
 —
 Fannie Mae Discount Notes 1.038% 1/23/2018 46.0
 —
35.1
 —
 Fannie Mae Discount Notes 1.038% 1/24/2018 35.0
 —
——
 19.9
 Farmer Mac Discount Notes 0.682% 6/1/2017 —
 19.9
—
 33.0
 Federal Home Loan Bank Discount Notes 2.167%-2.195% 1/11/2019 —
 33.0
——
 15.5
 Federal Farm Credit Bank Discount Notes 0.376% - 0.381% 2/22/2017 —
 15.5
—
 37.6
 Federal Home Loan Bank Discount Notes 2.220% 1/14/2019 —
 37.6
——
 34.7
 Federal Home Loan Bank Discount Notes 0.304% - 0.355% 1/3/2017 —
 34.7
—
 36.2
 Federal Home Loan Bank Discount Notes 2.220% 1/15/2019 —
 36.2
——
 40.0
 Federal Home Loan Bank Discount Notes 0.345% 1/4/2017 —
 40.0
—
 35.0
 Federal Home Loan Bank Discount Notes 2.220% 1/16/2019 —
 35.0
——
 29.2
 Federal Home Loan Bank Discount Notes 0.355% - 0.447% 1/6/2017 —
 29.2
—
 40.9
 Federal Home Loan Bank Discount Notes 2.189%-2.197% 1/18/2019 —
 40.9
——
 7.1
 Federal Home Loan Bank Discount Notes 0.299% - 0.345% 1/9/2017 —
 7.1
—
 29.5
 Federal Home Loan Bank Discount Notes 2.190% 1/23/2019 —
 29.5
——
 25.0
 Federal Home Loan Bank Discount Notes 0.325% 1/10/2017 —
 25.0
—
 25.6
 Federal Home Loan Bank Discount Notes 2.330% 1/28/2019 —
 25.6
——
 50.0
 Federal Home Loan Bank Discount Notes 0.304% - 0.396% 1/11/2017 —
 50.0
—
 12.0
 Federal Home Loan Bank Discount Notes 2.250% 1/29/2019 —
 12.0
——
 33.0
 Federal Home Loan Bank Discount Notes 0.365% - 0.396% 1/12/2017 —
 33.0
—
 40.0
 Federal Home Loan Bank Discount Notes 2.260%-2.265% 1/30/2019 —
 39.9
——
 50.0
 Federal Home Loan Bank Discount Notes 0.386% 1/13/2017 —
 50.0
—
 14.3
 Federal Home Loan Bank Discount Notes 2.290% 2/8/2019 —
 14.3
——
 36.0
 Federal Home Loan Bank Discount Notes 0.345% 1/17/2017 —
 36.0
—
 30.0
 Federal Home Loan Bank Discount Notes 2.300%-2.319% 2/11/2019 —
 29.9
——
 42.1
 Federal Home Loan Bank Discount Notes 0.294% - 0.365% 1/18/2017 —
 42.1
—
 24.7
 Federal Home Loan Bank Discount Notes 2.340% 2/15/2019 —
 24.6
——
 35.0
 Federal Home Loan Bank Discount Notes 2.331%-2.353% 2/19/2019 —
 34.9
——
 36.8
 Federal Home Loan Bank Discount Notes 2.235%-2.353% 2/20/2019 —
 36.6
——
 45.0
 Federal Home Loan Bank Discount Notes 2.294%-2.314% 2/22/2019 —
 44.8
——
 14.1
 Federal Home Loan Bank Discount Notes 2.330% 2/25/2019 —
 14.0
——
 40.0
 Federal Home Loan Bank Discount Notes 2.330% 2/26/2019 —
 39.9
——
 21.5
 Federal Home Loan Bank Discount Notes 2.330% 2/27/2019 —
 21.4
——
 26.4
 Federal Home Loan Bank Discount Notes 2.310% 3/1/2019 —
 26.3
——
 31.5
 Federal Home Loan Bank Discount Notes 2.316%-2.355% 3/6/2019 —
 31.4
——
 40.0
 Federal Home Loan Bank Discount Notes 2.370% 3/8/2019 —
 39.8
——
 37.3
 Federal Home Loan Bank Discount Notes 2.432%-2.437% 3/11/2019 —
 37.2
——
 40.0
 Federal Home Loan Bank Discount Notes 2.420% 3/12/2019 —
 39.8
——
 40.0
 Federal Home Loan Bank Discount Notes 2.400% 3/13/2019 —
 39.8
——
 10.0
 Federal Home Loan Bank Discount Notes 2.360% 3/15/2019 —
 10.0
——
 30.0
 Federal Home Loan Bank Discount Notes 2.360% 3/19/2019 —
 29.8
——
 12.0
 Federal Home Loan Bank Discount Notes 2.430% 3/21/2019 —
 11.9
——
 22.4
 Federal Home Loan Bank Discount Notes 2.410% 3/26/2019 —
 22.2
——
 25.3
 Federal Home Loan Bank Discount Notes 2.370% 3/27/2019 —
 25.1
83.183.1
 —
 Federal Home Loan Bank Discount Notes 2.230% 4/1/2019 83.1
 —
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


PrincipalPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value atPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value at
September 30, 2017 December 31, 2016March 31, 2019 December 31, 2018
2017 2016 
20192019 2018 Issuer 
Yield(4)
 
Maturity
Date
 March 31, 2019 December 31, 2018
   (Unaudited)      
$—
 $20.0
 Federal Home Loan Bank Discount Notes 0.284% 1/20/2017 $—
 $20.0
40.0
 $40.0
 $40.0
 $39.7
40.040.0
 40.0
 Federal Home Loan Bank Discount Notes 2.470% 4/8/2019 40.0
 39.7
50.050.0
 —
 Federal Home Loan Bank Discount Notes 2.390% 4/9/2019 50.0
 —
50.050.0
 50.0
 Federal Home Loan Bank Discount Notes 2.440% 4/10/2019 50.0
 49.7
24.124.1
 24.1
 Federal Home Loan Bank Discount Notes 2.440% 4/12/2019 24.0
 23.9
75.075.0
 —
 Federal Home Loan Bank Discount Notes 2.450% 4/16/2019 74.9
 —
20.320.3
 —
 Federal Home Loan Bank Discount Notes 2.440% 4/22/2019 20.2
 —
64.164.1
 14.1
 Federal Home Loan Bank Discount Notes 2.440%-2.500% 4/24/2019 64.0
 14.0
50.850.8
 10.6
 Federal Home Loan Bank Discount Notes 2.450%-2.500% 4/26/2019 50.7
 10.5
87.087.0
 87.0
 Federal Home Loan Bank Discount Notes 2.470%-2.510% 4/29/2019 86.8
 86.3
32.232.2
 —
 Federal Home Loan Bank Discount Notes 2.460% 4/30/2019 32.1
 —
20.020.0
 —
 Federal Home Loan Bank Discount Notes 2.450% 5/1/2019 20.0
 —
40.040.0
 24.0
 Federal Home Loan Bank Discount Notes 2.470%-2.510% 5/3/2019 39.9
 23.8
50.050.0
 —
 Federal Home Loan Bank Discount Notes 2.440% 5/6/2019 49.9
 —
40.040.0
 —
 Federal Home Loan Bank Discount Notes 2.420% 5/7/2019 39.9
 —
77.977.9
 —
 Federal Home Loan Bank Discount Notes 2.430%-2.450% 5/8/2019 77.7
 —
22.622.6
 —
 Federal Home Loan Bank Discount Notes 2.440% 5/10/2019 22.5
 —
14.614.6
 —
 Federal Home Loan Bank Discount Notes 2.440% 5/13/2019 14.6
 —
28.828.8
 —
 Federal Home Loan Bank Discount Notes 2.450% 5/14/2019 28.7
 —
68.568.5
 18.5
 Federal Home Loan Bank Discount Notes 2.440%-2.550% 5/15/2019 68.3
 18.3
40.540.5
 40.5
 Federal Home Loan Bank Discount Notes 2.520% 5/17/2019 40.4
 40.1
40.340.3
 —
 Federal Home Loan Bank Discount Notes 2.450% 5/21/2019 40.2
 —
30.030.0
 30.0
 Federal Home Loan Bank Discount Notes 2.530% 5/22/2019 29.9
 29.7
55.055.0
 —
 Federal Home Loan Bank Discount Notes 2.440% 5/28/2019 54.8
 —
70.570.5
 —
 Federal Home Loan Bank Discount Notes 2.440%-2.450% 5/29/2019 70.3
 —
40.040.0
 —
 Federal Home Loan Bank Discount Notes 2.440% 5/31/2019 39.9
 —
39.039.0
 —
 Federal Home Loan Bank Discount Notes 2.450%-2.470% 6/3/2019 38.8
 —
50.050.0
 —
 Federal Home Loan Bank Discount Notes 2.460% 6/6/2019 49.8
 —
40.040.0
 —
 Federal Home Loan Bank Discount Notes 2.460% 6/7/2019 39.8
 —
25.025.0
 —
 Federal Home Loan Bank Discount Notes 2.460% 6/10/2019 24.9
 —
73.173.1
 —
 Federal Home Loan Bank Discount Notes 2.450%-2.470% 6/14/2019 72.7
 —
42.242.2
 —
 Federal Home Loan Bank Discount Notes 2.460% 6/17/2019 41.9
 —
43.343.3
 —
 Federal Home Loan Bank Discount Notes 2.450% 6/18/2019 43.1
 —
29.329.3
 —
 Federal Home Loan Bank Discount Notes 2.460% 6/21/2019 29.2
 —
20.020.0
 —
 Federal Home Loan Bank Discount Notes 2.450% 6/28/2019 19.9
 —
20.320.3
 —
 Federal Home Loan Bank Discount Notes 2.460% 7/1/2019 20.2
 —
——
 50.0
 Federal Home Loan Bank Discount Notes 0.335% 1/23/2017 —
 50.0
—
 25.0
 Freddie Mac Discount Notes 2.130% 1/2/2019 —
 25.0
——
 47.0
 Federal Home Loan Bank Discount Notes 0.345% 1/24/2017 —
 47.0
—
 32.4
 Freddie Mac Discount Notes 2.146%-2.174% 1/4/2019 —
 32.4
——
 34.8
 Federal Home Loan Bank Discount Notes 0.304% - 0.360% 1/25/2017 —
 34.8
—
 35.1
 Freddie Mac Discount Notes 2.146%-2.175% 1/7/2019 —
 35.1
——
 45.0
 Federal Home Loan Bank Discount Notes 0.294% - 0.406% 1/27/2017 —
 45.0
—
 35.0
 Freddie Mac Discount Notes 2.130% 1/8/2019 —
 35.0
——
 25.0
 Federal Home Loan Bank Discount Notes 0.416% 1/30/2017 —
 25.0
—
 40.0
 Freddie Mac Discount Notes 2.130% 1/9/2019 —
 40.0
——
 34.7
 Federal Home Loan Bank Discount Notes 0.467% - 0.497% 2/1/2017 —
 34.7
—
 36.1
 Freddie Mac Discount Notes 2.179%-2.217% 1/22/2019 —
 36.1
——
 42.0
 Federal Home Loan Bank Discount Notes 0.406% 2/3/2017 —
 42.0
—
 40.0
 Freddie Mac Discount Notes 2.190% 1/25/2019 —
 39.9
——
 15.0
 Federal Home Loan Bank Discount Notes 0.416% 2/7/2017 —
 15.0
—
 16.0
 Freddie Mac Discount Notes 2.200% 1/28/2019 —
 15.9
——
 10.2
 Federal Home Loan Bank Discount Notes 0.376% 2/10/2017 —
 10.2
—
 15.0
 Freddie Mac Discount Notes 2.200% 1/29/2019 —
 15.0
——
 50.0
 Federal Home Loan Bank Discount Notes 0.386% - 0.487% 2/17/2017 —
 50.0
—
 39.9
 Freddie Mac Discount Notes 2.190% 2/1/2019 —
 39.8
——
 30.0
 Federal Home Loan Bank Discount Notes 0.365% 2/21/2017 —
 30.0
—
 25.9
 Freddie Mac Discount Notes 2.240% 2/4/2019 —
 25.8
——
 30.0
 Federal Home Loan Bank Discount Notes 0.437% 2/22/2017 —
 30.0
—
 35.0
 Freddie Mac Discount Notes 2.240% 2/5/2019 —
 34.9
—
 50.0
 Federal Home Loan Bank Discount Notes 0.396% 2/24/2017 —
 50.0
—
 20.0
 Federal Home Loan Bank Discount Notes 0.533% 2/27/2017 —
 20.0
—
 10.1
 Federal Home Loan Bank Discount Notes 0.518% 3/3/2017 —
 10.1
—
 15.0
 Federal Home Loan Bank Discount Notes 0.523% 3/6/2017 —
 15.0
—
 30.0
 Federal Home Loan Bank Discount Notes 0.538% 3/8/2017 —
 30.0
—
 45.8
 Federal Home Loan Bank Discount Notes 0.447% - 0.574% 3/10/2017 —
 45.8
—
 20.0
 Federal Home Loan Bank Discount Notes 0.543% 3/14/2017 —
 20.0
—
 40.5
 Federal Home Loan Bank Discount Notes 0.528% - 0.579% 3/17/2017 —
 40.5
—
 49.9
 Federal Home Loan Bank Discount Notes 0.538% 3/20/2017 —
 49.9
—
 36.1
 Federal Home Loan Bank Discount Notes 0.533% 3/22/2017 —
 36.1
—
 28.0
 Federal Home Loan Bank Discount Notes 0.427% - 0.518% 3/23/2017 —
 28.0
—
 40.0
 Federal Home Loan Bank Discount Notes 0.528% 3/24/2017 —
 40.0
—
 25.0
 Federal Home Loan Bank Discount Notes 0.548% 3/28/2017 —
 25.0
—
 31.0
 Federal Home Loan Bank Discount Notes 0.558% 3/29/2017 —
 31.0
—
 6.4
 Federal Home Loan Bank Discount Notes 0.477% 3/31/2017 —
 6.4
—
 49.9
 Federal Home Loan Bank Discount Notes 0.559% 4/17/2017 —
 49.9
—
 26.0
 Federal Home Loan Bank Discount Notes 0.548% - 0.605% 4/19/2017 —
 26.0
—
 20.1
 Federal Home Loan Bank Discount Notes 0.488% 4/28/2017 —
 20.1
—
 25.0
 Federal Home Loan Bank Discount Notes 0.538% - 0.600% 5/5/2017 —
 25.0
—
 37.2
 Federal Home Loan Bank Discount Notes 0.558% - 0.641% 5/12/2017 —
 37.2
27.1
 —
 Federal Home Loan Bank Discount Notes 1.015% 10/5/2017 27.1
 —
30.8
 —
 Federal Home Loan Bank Discount Notes 0.968% 10/6/2017 30.8
 —
40.1
 —
 Federal Home Loan Bank Discount Notes 1.020% - 1.053% 10/10/2017 40.1
 —
4.0
 —
 Federal Home Loan Bank Discount Notes 1.049% 10/13/2017 4.0
 —
88.3
 —
 Federal Home Loan Bank Discount Notes 1.020% - 1.025% 10/16/2017 88.3
 —
44.2
 —
 Federal Home Loan Bank Discount Notes 1.063% 10/18/2017 44.1
 —
39.6
 —
 Federal Home Loan Bank Discount Notes 1.008% - 1.039% 10/20/2017 39.6
 —
30.1
 —
 Federal Home Loan Bank Discount Notes 1.031% - 1.049% 10/23/2017 30.0
 —
42.2
 —
 Federal Home Loan Bank Discount Notes 1.013% 10/24/2017 42.1
 —
23.2
 —
 Federal Home Loan Bank Discount Notes 1.036% - 1.048% 10/25/2017 23.2
 —
10.2
 —
 Federal Home Loan Bank Discount Notes 1.041% 10/27/2017 10.1
 —
37.1
 —
 Federal Home Loan Bank Discount Notes 1.048% 10/30/2017 37.1
 —
34.5
 —
 Federal Home Loan Bank Discount Notes 1.019% - 1.041% 11/1/2017 34.4
 —
43.2
 —
 Federal Home Loan Bank Discount Notes 1.048% 11/2/2017 43.1
 —
50.0
 —
 Federal Home Loan Bank Discount Notes 1.024% - 1.031% 11/3/2017 50.0
 —
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Principal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value at
September 30, 2017 December 31, 2016
2017 2016 
          (Unaudited)  
$58.2
 $—
 Federal Home Loan Bank Discount Notes 1.031% - 1.048% 11/7/2017 $58.1
 $—
50.0
 —
 Federal Home Loan Bank Discount Notes 1.031% - 1.069% 11/8/2017 49.9
 —
61.0
 —
 Federal Home Loan Bank Discount Notes 1.030% - 1.068% 11/9/2017 60.9
 —
33.6
 —
 Federal Home Loan Bank Discount Notes 1.079% 11/10/2017 33.6
 —
42.3
 —
 Federal Home Loan Bank Discount Notes 1.032% - 1.079% 11/13/2017 42.3
 —
51.9
 —
 Federal Home Loan Bank Discount Notes 1.068% - 1.079% 11/14/2017 51.9
 —
43.4
 —
 Federal Home Loan Bank Discount Notes 1.068% - 1.109% 11/15/2017 43.4
 —
40.0
 —
 Federal Home Loan Bank Discount Notes 1.068% 11/16/2017 40.0
 —
66.4
 —
 Federal Home Loan Bank Discount Notes 1.068% - 1.069% 11/17/2017 66.3
 —
15.2
 —
 Federal Home Loan Bank Discount Notes 1.069% 11/27/2017 15.2
 —
40.0
 —
 Federal Home Loan Bank Discount Notes 1.110% 11/28/2017 39.9
 —
30.0
 —
 Federal Home Loan Bank Discount Notes 1.068% 11/29/2017 30.0
 —
36.9
 —
 Federal Home Loan Bank Discount Notes 1.047% - 1.069% 12/1/2017 36.9
 —
40.0
 —
 Federal Home Loan Bank Discount Notes 1.110% 12/5/2017 39.9
 —
20.3
 —
 Federal Home Loan Bank Discount Notes 1.110% 12/6/2017 20.2
 —
40.0
 —
 Federal Home Loan Bank Discount Notes 1.100% 12/8/2017 39.9
 —
20.0
 —
 Federal Home Loan Bank Discount Notes 1.068% 12/11/2017 20.0
 —
40.0
 —
 Federal Home Loan Bank Discount Notes 1.079% 12/12/2017 39.9
 —
44.3
 —
 Federal Home Loan Bank Discount Notes 1.067% - 1.074% 12/15/2017 44.2
 —
15.2
 —
 Federal Home Loan Bank Discount Notes 1.079% 12/18/2017 15.1
 —
25.1
 —
 Federal Home Loan Bank Discount Notes 1.079% 12/19/2017 25.0
 —
28.5
 —
 Federal Home Loan Bank Discount Notes 1.058% - 1.074% 12/20/2017 28.4
 —
30.0
 —
 Federal Home Loan Bank Discount Notes 1.074% 12/22/2017 29.9
 —
30.0
 —
 Federal Home Loan Bank Discount Notes 1.069% 12/26/2017 29.9
 —
30.0
 —
 Federal Home Loan Bank Discount Notes 1.069% 12/27/2017 29.9
 —
25.0
 —
 Federal Home Loan Bank Discount Notes 1.069% 12/29/2017 24.9
 —
20.2
 —
 Federal Home Loan Bank Discount Notes 1.069% 1/2/2018 20.1
 —
40.0
 —
 Federal Home Loan Bank Discount Notes 1.079% 1/3/2018 39.9
 —
40.0
 —
 Federal Home Loan Bank Discount Notes 1.068% 1/5/2018 39.9
 —
40.0
 —
 Federal Home Loan Bank Discount Notes 1.068% 1/8/2018 39.9
 —
33.0
 —
 Federal Home Loan Bank Discount Notes 1.058% 1/9/2018 32.9
 —
20.0
 —
 Federal Home Loan Bank Discount Notes 1.068% 1/10/2018 19.9
 —
10.0
 —
 Federal Home Loan Bank Discount Notes 1.089% 1/12/2018 10.0
 —
38.1
 —
 Federal Home Loan Bank Discount Notes 1.068% 1/16/2018 38.0
 —
30.0
 —
 Federal Home Loan Bank Discount Notes 1.094% 1/17/2018 29.9
 —
30.2
 —
 Federal Home Loan Bank Discount Notes 1.063% 1/19/2018 30.1
 —
38.0
 —
 Federal Home Loan Bank Discount Notes 1.063% 1/25/2018 37.8
 —
36.1
 —
 Federal Home Loan Bank Discount Notes 1.063% 1/26/2018 36.0
 —
19.2
 —
 Federal Home Loan Bank Discount Notes 1.069% 1/29/2018 19.1
 —
37.1
 —
 Federal Home Loan Bank Discount Notes 1.069% 2/9/2018 37.0
 —
2.2
 —
 Federal Home Loan Bank Discount Notes 1.161% 3/2/2018 2.1
 —
—
 16.1
 Freddie Mac Discount Notes 0.345% 1/9/2017 —
 16.1
—
 25.0
 Freddie Mac Discount Notes 0.335% 1/10/2017 —
 25.0
—
 30.0
 Freddie Mac Discount Notes 0.391% 1/20/2017 —
 30.0
—
 13.1
 Freddie Mac Discount Notes 0.426% 1/30/2017 —
 13.1
—
 40.0
 Freddie Mac Discount Notes 0.447% 2/6/2017 —
 40.0
—
 36.9
 Freddie Mac Discount Notes 0.436% - 0.457% 2/7/2017 —
 36.9
—
 44.2
 Freddie Mac Discount Notes 0.360% 2/8/2017 —
 44.2

PrincipalPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value atPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value at
September 30, 2017 December 31, 2016March 31, 2019 December 31, 2018
2017 2016 
20192019 2018 Issuer 
Yield(4)
 
Maturity
Date
 March 31, 2019 December 31, 2018
   (Unaudited)      
$—
 $25.0
 Freddie Mac Discount Notes 0.360% 2/10/2017 $—
 $25.0
—
 $30.0
 $—
 $29.9
——
 40.0
 Freddie Mac Discount Notes 0.365% 2/13/2017 —
 40.0
—
 39.3
 Freddie Mac Discount Notes 2.300% 2/12/2019 —
 39.1
——
 30.0
 Freddie Mac Discount Notes 0.376% 2/14/2017 —
 30.0
—
 15.0
 Freddie Mac Discount Notes 2.250% 2/20/2019 —
 15.0
——
 20.0
 Freddie Mac Discount Notes 0.467% 2/21/2017 —
 20.0
—
 21.3
 Freddie Mac Discount Notes 2.290% 3/4/2019 —
 21.3
——
 27.0
 Freddie Mac Discount Notes 0.386% 2/27/2017 —
 27.0
—
 17.1
 Freddie Mac Discount Notes 2.330% 3/5/2019 —
 17.1
——
 15.0
 Freddie Mac Discount Notes 0.401% 3/3/2017 —
 15.0
—
 23.8
 Freddie Mac Discount Notes 2.380% 3/20/2019 —
 23.6
——
 35.2
 Freddie Mac Discount Notes 0.406% 3/7/2017 —
 35.2
—
 19.5
 Freddie Mac Discount Notes 2.390% 3/22/2019 —
 19.4
——
 14.0
 Freddie Mac Discount Notes 0.411% 3/14/2017 —
 14.0
—
 25.9
 Freddie Mac Discount Notes 2.380% 3/25/2019 —
 25.8
—
 50.0
 Freddie Mac Discount Notes 0.427% 3/21/2017 —
 49.9
—
 18.0
 Freddie Mac Discount Notes 0.600% 4/21/2017 —
 18.0
—
 39.9
 Freddie Mac Discount Notes 0.457% 5/3/2017 —
 39.9
—
 22.9
 Freddie Mac Discount Notes 0.483% 5/4/2017 —
 22.9
45.2
 —
 Freddie Mac Discount Notes 0.997% 10/3/2017 45.2
 —
42.2
 —
 Freddie Mac Discount Notes 0.997% 10/4/2017 42.2
 —
30.030.0
 30.0
 Freddie Mac Discount Notes 2.410% 4/1/2019 30.0
 29.8
36.136.1
 16.1
 Freddie Mac Discount Notes 2.380%-2.430% 4/2/2019 36.1
 16.0
20.120.1
 20.1
 Freddie Mac Discount Notes 2.430% 4/3/2019 20.1
 20.0
40.040.0
 —
 Freddie Mac Discount Notes 1.013% 10/16/2017 40.0
 —
40.0
 40.0
 Freddie Mac Discount Notes 2.460% 4/17/2019 40.0
 39.7
37.1
 —
 Freddie Mac Discount Notes 1.013% 10/17/2017 37.1
 —
10.5
 —
 Freddie Mac Discount Notes 1.005% 10/20/2017 10.5
 —
42.5
 —
 Freddie Mac Discount Notes 1.001% - 1.028% 10/26/2017 42.5
 —
15.0
 —
 Freddie Mac Discount Notes 1.079% 11/6/2017 15.0
 —
15.0
 —
 Freddie Mac Discount Notes 1.006% 11/10/2017 15.0
 —
30.0
 —
 Freddie Mac Discount Notes 1.027% 11/27/2017 30.0
 —
12.5
 —
 Freddie Mac Discount Notes 1.036% 12/1/2017 12.5
 —
51.1
 —
 Freddie Mac Discount Notes 1.027% - 1.074% 12/4/2017 51.0
 —
15.0
 —
 Freddie Mac Discount Notes 1.043% 12/6/2017 15.0
 —
20.4
 —
 Freddie Mac Discount Notes 1.064% 12/11/2017 20.4
 —
60.360.3
 —
 Freddie Mac Discount Notes 2.400% 4/23/2019 60.2
 —
24.124.1
 24.1
 Freddie Mac Discount Notes 2.520% 5/20/2019 24.0
 23.8
50.050.0
 —
 Freddie Mac Discount Notes 2.420% 5/24/2019 49.8
 —
36.336.3
 —
 Freddie Mac Discount Notes 2.440% 6/4/2019 36.1
 —
46.546.5
 —
 Freddie Mac Discount Notes 2.460%-2.470% 6/5/2019 46.2
 —
35.435.4
 —
 Freddie Mac Discount Notes 2.450% 6/11/2019 35.2
 —
40.040.0
 —
 Freddie Mac Discount Notes 1.064% 12/13/2017 39.9
 —
40.0
 —
 Freddie Mac Discount Notes 2.450% 6/12/2019 39.8
 —
40.0
 —
 Freddie Mac Discount Notes 1.063% 12/14/2017 39.9
 —
25.0
 —
 Freddie Mac Discount Notes 1.101% 2/2/2018 24.9
 —
30.0
 —
 Freddie Mac Discount Notes 1.101% 2/5/2018 29.9
 —
25.0
 —
 Freddie Mac Discount Notes 1.090% 2/6/2018 24.9
 —
20.1
 —
 Freddie Mac Discount Notes 1.100% 2/7/2018 20.0
 —
TOTAL GOVERNMENT AGENCY NOTES
(Cost $3,276.0 and $2,309.0)
 $3,276.1
 $2,308.9
46.746.7
 —
 Freddie Mac Discount Notes 2.450% 6/13/2019 46.5
 —
50.050.0
 —
 Freddie Mac Discount Notes 2.430% 6/19/2019 49.7
 —
13.613.6
 —
 Freddie Mac Discount Notes 2.430% 6/20/2019 13.5
 —
25.425.4
 —
 Freddie Mac Discount Notes 2.460% 6/24/2019 25.2
 —
42.142.1
 —
 Freddie Mac Discount Notes 2.470% 6/25/2019 41.9
 —
22.222.2
 —
 Freddie Mac Discount Notes 2.460% 6/26/2019 22.0
 —
35.335.3
 —
 Freddie Mac Discount Notes 2.460% 6/27/2019 35.0
 —
TOTAL GOVERNMENT AGENCY NOTES
(Cost $2,501.5 and $2,050.8)
TOTAL GOVERNMENT AGENCY NOTES
(Cost $2,501.5 and $2,050.8)
 $2,501.5
 $2,050.7
UNITED STATES TREASURY SECURITIES—3.7%6.1% and 6.5%7.2%
PrincipalPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value atPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value at
September 30, 2017 December 31, 2016March 31, 2019 December 31, 2018
2017 2016 
20192019 2018 Issuer 
Yield(4)
 
Maturity
Date
 March 31, 2019 December 31, 2018
       (Unaudited)      
$—
 $35.9
 United States Treasury Bills 0.345% - 0.369% 1/5/2017 $—
 $35.9
—
 $33.8
 $—
 $33.8
——
 47.9
 United States Treasury Bills 0.423% - 0.428% 1/19/2017 —
 48.0
—
 50.0
 United States Treasury Bills 2.330% 1/8/2019 —
 50.0
——
 36.1
 United States Treasury Bills 0.371% - 0.401% 1/26/2017 —
 36.1
—
 189.9
 United States Treasury Bills 2.162%-2.321% 1/10/2019 —
 189.8
——
 60.1
 United States Treasury Bills 0.363% - 0.423% 2/2/2017 ���
 60.1
—
 82.1
 United States Treasury Bills 2.279%-2.316% 1/15/2019 —
 82.0
——
 75.0
 United States Treasury Bills 0.315% - 0.426% 2/9/2017 —
 75.0
—
 150.1
 United States Treasury Bills 2.204%-2.315% 1/17/2019 —
 149.9
——
 48.0
 United States Treasury Bills 0.325% - 0.437% 2/16/2017 —
 48.0
—
 153.0
 United States Treasury Bills 2.226%-2.332% 1/24/2019 —
 152.8
——
 48.0
 United States Treasury Bills 0.448% - 0.473% 2/23/2017 —
 48.0
—
 50.0
 United States Treasury Bills 2.370% 1/29/2019 —
 49.9
——
 36.0
 United States Treasury Bills 0.368% - 0.477% 3/2/2017 —
 36.0
—
 67.3
 United States Treasury Bills 2.235%-2.405% 1/31/2019 —
 67.2
——
 48.7
 United States Treasury Bills 0.386% - 0.518% 3/9/2017 —
 48.7
—
 100.0
 United States Treasury Bills 2.254% 2/7/2019 —
 99.8
——
 59.9
 United States Treasury Bills 0.406% - 0.481% 3/16/2017 —
 60.0
—
 61.9
 United States Treasury Bills 2.391%-2.401% 2/12/2019 —
 61.7
——
 129.0
 United States Treasury Bills 0.380% - 0.533% 3/23/2017 —
 129.0
—
 108.0
 United States Treasury Bills 2.253%-2.334% 2/14/2019 —
 107.7
——
 25.9
 United States Treasury Bills 0.396% - 0.518% 3/30/2017 —
 25.9
—
 20.0
 United States Treasury Bills 2.410% 2/19/2019 —
 19.9
——
 58.9
 United States Treasury Bills 0.411% - 0.509% 4/6/2017 —
 58.9
—
 84.4
 United States Treasury Bills 2.276%-2.277% 2/21/2019 —
 84.1
——
 130.8
 United States Treasury Bills 0.518% - 0.529% 4/13/2017 —
 130.8
—
 18.0
 United States Treasury Bills 2.440% 2/26/2019 —
 17.9
—
 49.9
 United States Treasury Bills 0.514% - 0.559% 4/20/2017 —
 49.9
—
 48.2
 United States Treasury Bills 0.554% - 0.781% 4/27/2017 —
 48.2
—
 49.9
 United States Treasury Bills 0.514% 5/4/2017 —
 49.9
—
 42.0
 United States Treasury Bills 0.601% - 0.623% 5/11/2017 —
 42.0
—
 30.1
 United States Treasury Bills 0.584% - 0.620% 5/18/2017 —
 30.1
—
 32.0
 United States Treasury Bills 0.587% 6/8/2017 —
 32.0
—
 74.8
 United States Treasury Bills 0.541% - 0.654% 7/20/2017 —
 74.7
—
 86.7
 United States Treasury Bills 0.574% - 0.591% 8/17/2017 —
 86.6
—
 34.8
 United States Treasury Bills 0.696% - 0.934% 9/14/2017 —
 34.8
30.0
 —
 United States Treasury Bills 0.943% 10/5/2017 30.0
 —
0.8
 —
 United States Treasury Bills 0.956% 10/12/2017 0.8
 —
20.0
 —
 United States Treasury Bills 1.017% 11/24/2017 20.0
 —
50.0
 —
 United States Treasury Bills 0.998% 11/30/2017 49.9
 —
49.0
 —
 United States Treasury Bills 0.768% 12/7/2017 48.9
 —
50.0
 —
 United States Treasury Bills 1.090% 12/21/2017 49.9
 —
97.0
 —
 United States Treasury Bills 1.099% - 1.100% 12/28/2017 96.7
 —
50.0
 —
 United States Treasury Bills 1.084% 1/4/2018 49.9
 —
40.0
 —
 United States Treasury Bills 1.114% 1/18/2018 39.9
 —
71.0
 —
 United States Treasury Bills 1.132% 1/25/2018 70.8
 —
36.0
 —
 United States Treasury Bills 1.106% 2/1/2018 35.9
 —
93.0
 —
 United States Treasury Bills 1.075% - 1.077% 2/8/2018 92.6
 —
98.0
 —
 United States Treasury Bills 1.106% - 1.122% 2/22/2018 97.6
 —
81.0
 —
 United States Treasury Bills 1.060% - 1.117% 3/1/2018 80.6
 —
—
 69.9
 United States Treasury Notes 0.431% - 0.451% 1/31/2017 —
 69.9
—
 46.9
 United States Treasury Notes 0.441% - 0.471% 2/15/2017 —
 47.0
—
 49.7
 United States Treasury Notes 0.502% 2/28/2017 —
 49.7
—
 50.0
 United States Treasury Notes 0.542% 3/15/2017 —
 50.0
—
 50.0
 United States Treasury Notes 0.515% 3/31/2017 —
 50.0
—
 69.6
 United States Treasury Notes 0.550% - 0.621% 5/31/2017 —
 69.6
—
 40.1
 United States Treasury Notes 0.580% 6/15/2017 —
 40.1
—
 50.0
 United States Treasury Notes 0.586% 6/30/2017 —
 50.0
—
 30.0
 United States Treasury Notes 0.668% - 0.710% 7/31/2017 —
 30.0
50.0
 —
 United States Treasury Notes 0.768% 10/31/2017 50.0
 —
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Principal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value at
March 31, 2019 December 31, 2018
2019 2018 
           (Unaudited)  
$—
 $31.8
 United States Treasury Bills 2.298%-2.331%  2/28/2019 $—
 $31.7
—
 73.7
 United States Treasury Bills 2.309%-2.379%  3/7/2019 —
 73.4
—
 130.0
 United States Treasury Bills 2.339%-2.372%  3/14/2019 —
 129.4
—
 50.0
 United States Treasury Bills 2.340%  3/21/2019 —
 49.7
—
 100.0
 United States Treasury Bills 2.415%  3/28/2019 —
 99.4
127.8
 89.9
 United States Treasury Bills 2.360%-2.450%  4/4/2019 127.8
 89.3
100.0
 —
 United States Treasury Bills 2.430%  4/9/2019 99.9
 —
103.5
 99.5
 United States Treasury Bills 2.420%-2.460%  4/11/2019 103.4
 98.8
87.2
 110.3
 United States Treasury Bills 2.460%-2.470%  4/18/2019 87.1
 109.5
98.8
 57.1
 United States Treasury Bills 2.390%-2.490%  4/25/2019 98.6
 56.7
73.2
 —
 United States Treasury Bills 2.430%  4/30/2019 73.1
 —
33.7
 33.7
 United States Treasury Bills 2.470%  5/2/2019 33.6
 33.4
100.0
 —
 United States Treasury Bills 2.430%  5/7/2019 99.8
 —
121.0
 38.4
 United States Treasury Bills 2.430%-2.500%  5/9/2019 120.7
 38.1
55.2
 —
 United States Treasury Bills 2.440%  5/14/2019 55.0
 —
93.9
 62.7
 United States Treasury Bills 2.430%-2.510%  5/16/2019 93.7
 62.1
47.2
 —
 United States Treasury Bills 2.450%  5/21/2019 47.0
 —
161.6
 —
 United States Treasury Bills 2.440%-2.460%  5/23/2019 161.0
 —
95.4
 —
 United States Treasury Bills 2.420%-2.450%  5/30/2019 95.0
 —
80.0
 —
 United States Treasury Bills 2.430%-2.450%  6/6/2019 79.6
 —
109.4
 —
 United States Treasury Bills 2.430%-2.440%  6/13/2019 108.9
 —
100.0
 —
 United States Treasury Bills 2.470%  6/20/2019 99.5
 —
47.3
 —
 United States Treasury Bills 2.450%  6/27/2019 47.0
 —
21.3
 —
 United States Treasury Bills 2.500%  10/10/2019 21.0
 —
116.8
 —
 United States Treasury Bills 2.510%  11/7/2019 115.1
 —
TOTAL UNITED STATES TREASURY SECURITIES
(Cost $1,766.7 and $2,038.1)
 $1,766.8
 $2,038.0
TOTAL OTHER MARKETABLE SECURITIES
(Cost $4,268.2 and $4,088.9)
 $4,268.3
 $4,088.7
TOTAL MARKETABLE SECURITIES
(Cost $5,174.3 and $5,363.6)
   $5,397.2
 $5,503.8
LOANS RECEIVABLE—3.3% and 3.2%    
  Borrower 
Interest Rate(6)
  Maturity Date Fair Value at
Principal     March 31, 2019 December 31, 2018
2019 2018      
           (Unaudited)
  
6.3
 6.3
 DJM Capital Partners Mezzanine 5.00%  7/12/2019 $6.3
 $6.3
85.0
 83.2
 311 South Wacker Mezzanine 4.70% + LIBOR  6/7/2020 84.9
 83.2
95.2
 95.2
 Blackstone RioCan Retail Portfolio Mezzanine 4.65% + LIBOR  6/9/2020 95.3
 95.3
60.0
 60.0
 River North Point Junior Mezzanine 4.30% + LIBOR  7/9/2020 60.0
 60.0
155.1
 176.4
 Project Glacier Mezzanine 4.40% + LIBOR  11/9/2020 155.1
 176.4
53.5
 —
 SCG Oakland Portfolio 4.25% + LIBOR  3/1/2021 53.5
 —
20.0
 20.0
 Crest at Las Colinas Station Mezzanine 5.11% + LIBOR  5/10/2021 20.0
 20.0
125.0
 125.0
 State Street Financial Center Mezzanine 6.50%  11/10/2021 125.0
 125.3
20.0
 20.0
 Modera Observatory Park Mezzanine 4.34% + LIBOR  6/10/2022 20.0
 20.0
19.9
 19.7
 Rosemont Towson Mezzanine 4.15% + LIBOR  9/9/2022 19.9
 19.7
26.7
 26.7
 1330 Broadway Mezzanine 5.01% + LIBOR  8/10/2023 26.7
 26.8
82.0
 63.0
 Great Value Storage Portfolio Mezzanine 7.875%  12/6/2023 83.8
 63.2
20.0
 20.0
 Aspen Lake Office Portfolio Mezzanine 8.25%  3/10/2028 20.2
 20.2
95.0
 95.0
 Merritt on the River Office Portfolio Mezzanine 8.00%  8/1/2028 95.7
 95.7
100.0
 100.0
 Charles River Plaza North Mezzanine 6.08%  4/6/2029 100.9
 100.9
TOTAL LOANS RECEIVABLE
(Cost $963.7 and $910.6)
   $967.3
 $913.0
TOTAL INVESTMENTS
(Cost $24,490.4 and $24,169.8)
   $28,939.5
 $28,480.4
Principal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value at
September 30, 2017 December 31, 2016
2017 2016 
           (Unaudited)  
$21.1
 $—
 United States Treasury Notes 0.812% - 0.935%  11/30/2017 $21.0
 $—
5.0
 —
 United States Treasury Notes 0.997%  12/15/2017 5.0
 —
50.0
 —
 United States Treasury Notes 1.148% - 1.180%  1/31/2018 49.9
 —
40.0
 —
 United States Treasury Notes 1.175% - 1.184%  2/15/2018 40.0
 —
48.0
 —
 United States Treasury Notes 1.200%  2/28/2018 47.9
 —
40.0
 —
 United States Treasury Notes 1.179%  3/15/2018 40.0
 —
TOTAL UNITED STATES TREASURY SECURITIES
(Cost $1,017.3 and $1,745.0)
 $1,017.3
 $1,744.9
TOTAL OTHER MARKETABLE SECURITIES
(Cost $4,293.3 and $4,054.0)
 $4,293.4
 $4,053.8
TOTAL MARKETABLE SECURITIES
(Cost $5,182.8 and $4,937.9)
   $5,414.4
 $5,135.3
 
LOANS RECEIVABLE—1.1% and 1.1%   Fair Value at
    Borrower 
Interest Rate(7)
  Maturity Date September 30, 2017 December 31, 2016
           (Unaudited)
  
    
DJM Capital Partners(8)
 4.200%  7/1/2018 $34.0
 $32.3
    Simply Self Storage Portfolio 8.250%  9/6/2021 37.6
 37.6
    State Street Financial Center Junior Mezz 6.500%  11/10/2021 125.2
 125.2
    Charles River Plaza North 6.080%  4/6/2029 102.0
 100.6
TOTAL LOANS RECEIVABLE
(Cost $296.5 and $294.8)
   $298.8
 $295.7
TOTAL INVESTMENTS
(Cost $22,964.2 and $22,581.2)
   $27,183.5
 $26,643.7
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


(1) 
The investment has a mortgage loan payable outstanding, as indicated in Note 6.9 - Mortgage Loans Payable.
(2) 
The fair value reflects the Account’s interest in the joint venture and is net of debt.
(3) 
Properties within this investment are located throughout the United States.
(4) 
Yield represents the annualized yield.
(5) 
The assets held inA portion of this investment were liquidated on February 18, 2015.consists of land currently under development.
(6) 
A partial disposition of assetsFixed interest rate loans are represented with a single rate. Variable interest rate loans are presented with their base spread and the corresponding index rate. All variable interest loans currently held by the portfolio was completedAccount use the one month London Interbank Offered Rate ("LIBOR") rate on February 1, 2017.U.S. dollar deposits as the index rate, as published by ICE Benchmark Administration Limited.
(7)
Represents fixed interest rate.
(8)
This loan has the option to increase the principal balance up to $35.0 million and includes a one year extension option at a 5.0% annual interest-only rate.
(9) 
All or a portion of these securities are out on loan. The aggregate value of securities on loan is $5.5at March 31, 2019 and December 31, 2018 were $2.2 million as of September 30, 2017.and $67.4 million, respectively.
(10)(8) 
The assets heldAll investments of the limited partnership have been disposed. As of March 31, 2019, the limited partnership remained in this investment were in liquidation as of May 2014, with final dissolution in 2017.
(11)
A partial disposition of assets held by the portfolio was completed on August 17, 2017.dissolution.




ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of the Account’s financial condition and results of operations should be read together with the consolidated financial statementsConsolidated Financial Statements and notes contained in this report and with consideration to the sub-section entitled “Forward-Looking Statements,” which begins below, and the section of the Account’s Annual Report on Form 10-K for the year ended December 31, 20162018 (the “Form 10-K”) entitled “Item 1A. Risk Factors.” The past performance of the Account is not indicative of future results.
Forward-looking Statements
Some statements in this Form 10-Q which are not historical facts may be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about management’s expectations, beliefs, intentions or strategies for the future, include the assumptions and beliefs underlying these forward-looking statements, and are based on current expectations, estimates and projections about the real estate industry, domestic and global economic conditions, including conditions in the credit and capital markets, the sectors, and markets in which the Account invests and operates, and the transactions described in this Form 10-Q. While management believes the assumptions underlying any of its forward-looking statements and information to be reasonable, such information may be subject to uncertainties and may involve certain risks which may be difficult to predict and are beyond management’s control. These risks and uncertainties could cause actual results to differ materially from those contained in any forward-looking statement. These risks and uncertainties include, but are not limited to, the risks associated with the following:
Acquiring and Owning Real Estate: The risks associated with acquiring and owning real property, including general economic and real estate market conditions, the availability of, and economic cost associated with, financing the Account’s properties, the risk that the Account’s properties become too concentrated (whether by geography, sector or by tenant mix), competition for acquiring real estate properties, leasing risk (including tenant defaults) and the risk of uninsured losses at properties (including due to terrorism, natural disasters, and acts of violence);
Selling Real Estate: The risk that the sales price of a property mightmay differ, perhaps significantly, from its estimated or appraised value, leading to losses or reduced profits to the Account, the risk that the Account might not be able to sell a property at a particular time for a price which management believes represents its fair or full value, the risk of a lack of availability of financing (for potential purchasers of the Account’s properties), risks associated with disruptions in the credit and capital markets, and the risk that the Account may be required to make significant expenditures before the Account is able to market and/or sell a property;
Valuation: The risks associated with property valuations, including the fact that appraisals can be subjective in a number of respects and the fact that the Account’s appraisals are generally obtained on a quarterly basis and there may be periods in between appraisals of a property during which the value attributed to the property for purposes of the Account’s daily accumulation unit value may be more or less than the actual realizable value of the property;
Borrowing: Risks associated with financing the Account’s properties, including the risk of default on loans secured by the Account’s properties (which could lead to foreclosure), the risk associated with high loan to value ratios on the Account’s properties (including the fact that the Account may have limited, or no net value in such a property), the risk that significant sums of cash could be required to make principal and interest payments on the loans and the risk that the Account may not have the ability to obtain financing or refinancing on favorable terms (or at all), which may be aggravated by general disruptions in credit and capital markets;
Participant Transactions and Cash Management: Investment risk associated with participant transactions, in particular that (i) significant net participant transfers out of the Account may impair our ability to pursue or consummate new investment opportunities that are otherwise attractive to the Account and/ or may result in sales of real estate-related assets to generate liquidity, (ii) significant net participant transfers into the Account may result, on a temporary basis, in our cash holdings and/ or holdings in liquid real estate-related investments exceeding our long-term targeted holding levels

and (iii) high levels of cash and liquid non-real estate-related

investments in the Account during times of appreciating real estate values can impair the Account’s overall return;
Joint Venture Investments: The risks associated with joint ventures organized as limited partnerships or limited liability companies, as applicable, including the risk that a co-venturer may have interests or goals inconsistent with those of the Account, that a co-venturer may have financial difficulties, and the risk that the Account may have limited rights with respect to operation of the property and transfer of the Account’s interest;
Regulatory Matters: Uncertainties associated with environmental liability and regulations and other governmental regulatory matters such as zoning laws, rent control laws, and property taxes;
Foreign Investments: The risks associated with purchasing, owning and disposing foreign investments (primarily foreign real estate properties)properties, foreign real estate loans, and foreign mezzanine and other debt), including political risk, the risk associated with foreign currency fluctuations (whether hedged or not), regulatory and taxation risks and risks of enforcing judgments;
Conflicts of Interest: Conflicts of interest associated with TIAA serving as investment manager of the Account and provider of the liquidity guarantee at the same time as TIAA and its affiliates are serving as an investment manager to other real estate accounts or funds, including conflicts associated with satisfying its fiduciary duties to all such accounts and funds associated with purchasing, selling and leasing of properties;
Required Property Sales: The risk that, if TIAA were to own too large a percentage of the Account’s accumulation units through funding the liquidity guarantee (as determined by the independent fiduciary), the independent fiduciary could require the sales of properties to reduce TIAA’s ownership interest, which sales could occur at times and at prices that depress the sale proceeds to the Account;
Government and Government Agency Securities: Risks associated with investment securities issued by U.S. government agencies and U.S. government-sponsored entities, including the risk that the issuer may not have their securities backed by the full faith and credit of the U.S. government, and that transaction activity may fluctuate significantly from time to time, which could negatively impact the value of the securities and the Account’s ability to dispose of a security at a favorable time; and
Liquid Assets and Securities: Risks associated with investments in real estate-related liquid assets (which could include, from time to time, registered or unregistered real estate investment trust (“REIT”) securities and commercial mortgage-backed securities (“CMBS”)), and non-real estate-related liquid assets, including:
Financial/credit risk—Risks that the issuer will not be able to pay principal and interest when due or that the issuer’s earnings will fall;
Market volatility risk—Risk that the changing conditions in financial markets may cause the Account’s investments to experience price volatility;
Interest rate volatility risk—Risk that interest rate volatility may affect the Account’s current income from an investment;investment or the pricing of that investment. In general, changing interest rates could have unpredictable effects on the markets and may expose markets to heightened volatility; and
Deposit/money market risk—Risks that the Account could experience losses if banks fail.
More detailed discussions of certain of these risk factors are contained in the section of the Form 10-K entitled “Item 1A. Risk Factors” and in this section below and also in the section below entitled “Quantitative and Qualitative Disclosures About Market Risk.” These risks could cause actual results to differ materially from historical experience or management’s present expectations.
Caution should be taken not to place undue reliance on management’s forward-looking statements, which represent management’s views only as of the date that this report is filed. Neither management nor the Account undertake any obligation to update publicly or revise any forward-looking statement, whether as a result of new information, changed assumptions, future events or otherwise.
Commercial real estate market statistics discussed in this section are obtained by the Account from sources that management considers reliable, but some of the data are preliminary for the period ended September 30, 2017March 31, 2019 and may be subsequently revised. Prior period data may have been adjusted to reflect updated calculations. Investors should not rely exclusively on the data presented below in forming a judgment regarding the current or prospective performance of the commercial real estate market generally.



ABOUT THE TIAA REAL ESTATE ACCOUNT
The Account was established in February 1995 as an insurance separate account of TIAA and interests in the Account were first offered to eligible participants on October 2, 1995. The Account offers individual and group accumulating annuity contracts (with contributions made on a pre-tax or after-tax basis), as well as individual lifetime and term-certain variable payout annuity contracts (including the payment of death benefits to beneficiaries). Investors are entitled to transfer funds to or from the Account under certain circumstances. Funds invested in the Account for each category of contract are expressed in terms of units, and unit values will fluctuate depending on the Account’s performance.
Investment Objective and Strategy
The Account seeks to generate favorable long-termtotal returns primarily through the rental income and appreciation of real estate anda diversified portfolio of directly held, private real estate investments owned by the Account. The Account will also invest in non-realand real estate-related publicly traded securities and short-term higher quality liquid investments that are easily converted to cash to enable the Account to meet participant redemption requests, purchase or improve properties, or cover other expense needs.while offering investors guaranteed, daily liquidity.
Real Estate-Related Investments. The Account intends to have between 75% and 85% of its net assets invested directly in real estate or real estate-related investments with the goal of producing favorable long-term returns primarily through rental income and appreciation. These investments may consist of:
Direct ownership interests in real estate;
Direct ownership of real estate through interests in joint ventures; or
Indirect interests in real estate through real estate-related securities, such as:
public and/or privately placed registered and unregistered equity investments in REITs, which investments may consist of common or preferred stock interests;
real estate limited partnerships and limited liability companies;
investments in equity or debt securities of companies whose operations involve real estate (i.e., that primarily own or manage real estate) which may not be REITs; and
conventional commercial mortgage loans, participating mortgage loans, secured domestic and foreign (including U.K.) mezzanine loans, subordinated loans and collateralized mortgage obligations, including CMBScommercial mortgage-backed securities ("CMBS") and other similar investments.
The Account’s principal investment strategy is to purchase direct ownership interests in income-producing real estate, primarily office, industrial, retail and multi-family residential properties. The Account is targeted to hold between 65% and 80%85% of the Account’s net assets in such direct ownership interests at any time. Historically, approximately 70% of the Account’s net assets have been comprised of such direct ownership interests in real estate.interests.
In addition, while the Account is authorized to hold up to 25% of its net assets in liquid real estate-related securities, such as REITs and CMBS, management intends that the Account will not hold more than 10% of its net assets in such securities on a long-term basis. Traditionally, less than 10% of the Account’s net assets have been comprised of interests in these securities; although, the Account has recently held approximately 10% of its net assets in equity REIT securities at times. In addition, under the Account’s current investment guidelines, the Account is authorized to hold up to 10% of its net assets in CMBS. As of September 30, 2017,March 31, 2019, REIT securities comprised approximately 4.5%4.3% of the Account’s net assets, and the Account held no CMBS as of such date.
Non-Real Estate-Related Investments. The Account will invest the remaining portion of its assets (targeted to be between 15% and 25% of its net assets) in publicly traded, liquid investments; namely:
Short-term government-related instruments, including U.S. Treasury bills;
Long-term government-related instruments, such as securities issued by U.S. government agencies or U.S. government sponsoredgovernment-sponsored entities;
Short-term non-government-related instruments, such as money market instruments and commercial paper;
Long-term non-government-related instruments, such as corporate debt securities; and
Stock of companies that do not primarily own or manage real estate.

However, from time to time, the Account’s non-real estate-related liquid investments may comprise less than 15% (and possibly less than 10%) of its assets (on a net basis and/or a gross basis), especially during and immediately following periods of significant net participant outflows, in particular due to significant participant transfer activity. In addition, the Account, from time to time and on a temporary basis, may hold in excess of 25% of its net assets in

non-real estate-related liquid investments, particularly during times of significant inflows into the Account and/or a lack of attractive real estate-related investments available in the market.
Liquid Securities.Securities Generally. Primarily due to management’s need to manage fluctuations in cash flows, in particular during and immediately following periods of significant participant net transfer activity into or out of the Account, the Account may, on a temporary basis (i) exceed the upper end of its targeted holdings (currently 35% of the Account’s net assets) in liquid securities of all types, including both publicly traded non-real estate-related liquid investments and liquid real estate-related securities, such as REITs and CMBS, or (ii) be below the low end of its targeted holdings in such liquid securities (currently 15% of the Account’s net assets).
The portion of the Account’s net assets invested in liquid investments of all types may exceed the upper end of its target, for example, if (i) the Account receives a large inflow of money in a short period of time, in particular due to significant participant transfer activity into the Account, (ii) the Account receives significant proceeds from sales or financings of direct real estate assets, (iii) there is a lack of attractive direct real estate investments available on the market, and/or (iv) the Account anticipates more near-term cash needs, including to apply to acquire direct real estate investments, pay expenses or repay indebtedness.
Foreign Investments. The Account from time to time will also make foreign real estate investments. Under the Account’s investment guidelines, investments in direct foreign real estate, together with foreign real estate-related securities and foreign non-real estate-related liquid investments, may not comprise more than 25% of the Account’s net assets. As of September 30, 2017,March 31, 2019, the Account did not hold any foreign real estate investments.

THIRDFIRST QUARTER 20172019 U.S. ECONOMIC AND COMMERCIAL REAL ESTATE OVERVIEW
The Account invests primarily in high-quality, core real estate in order to meet its investment objective of obtaining favorable long-term returns through rental income and the appreciation of its real estate holdings.
Economic Overview and Outlook
Key U.S. economic indicators and their near-term outlook are summarized in the table below. According to the “advance estimate” from the Bureau of Economic Analysis, U.S. Gross Domestic Product (“GDP”) increased at a 3.0% annual rate during third quarter as compared to 3.1% during the second quarter. Inventory accumulation, trade, and consumer spending contributed to growth, although the pace of spending moderated. Several major hurricanes made landfall in the U.S. during the quarter, causing significant damage. The overall impact on third quarter GDP was not quantified, but the hurricanes likely caused some disruption to economic production in several states. The storms ended an 83 month streak of job gains when employment fell by 33,000 jobs in September, most of which was concentrated in the leisure and hospitality sector. As a result, the Bureau of Labor Statistics reported that the pace of job growth moderated during the third quarter when 274,000 jobs were added as compared to 562,000 during second quarter. The unemployment rate decreased to end the third quarter at 4.2%.
Economic Indicators*
 2016 1Q 20172Q 20173Q 2017 Forecast
2017 2018
Key Macro Economic IndicatorsActuals Forecast
2018 1Q19 2019 2020
Economy(1)
  
Gross Domestic Product ("GDP") 1.5% 1.2%3.1%3.0% 2.2% 2.4%
GDP (Gross Domestic Product)3.0% 3.2% 2.4% 1.9%
Employment Growth (Thousands) 2,240 498562274 2,100 1,8002,638 588 2,010 1,560
Unemployment Rate 4.9% 4.5%4.4%4.2% 4.4% 4.1%3.8% 3.9% 3.7% 3.6%
Interest Rates(2)
  
10 Year Treasury 1.8% 2.4%2.3%2.2% 2.3% 2.8%2.7% 2.4% 2.8% 2.9%
Sources: Blue Chip Economic Indicators, Blue Chip Financial Forecasts, BEA, Bureau of Labor Statistics, Federal Reserve and Moody’s Analytics
*Data subject to revision
(1) 
GDP growth rates are annual rates. Quarterly unemployment rates are the reported value for the final month of the quarter while annual values represent a twelve-month average.
(2) 
Treasury rates are an average over the stated period.
The Federal Open Market Committee (“FOMC”("FOMC") voted in SeptemberJanuary and March to maintain the target range for the federal funds rate at 1.0% to 1.25% “in2.25 - 2.50%, in view of sustained expansion of economic activity, strong labor conditions, and inflation near the Committee's 2.0% objective.
Moving forward, the Committee will continue to assess realized and expected labor marketeconomic conditions relative to employment and inflation”, as indicated2.0% inflation objectives. The Committee is generally expected to pare back its expectations, ending 2019 just below 3.0%.
Consumer spending decreased in the September meeting minutes. The committee expects that economic conditions willfirst quarter after rising at a steady pace throughout 2018. In the near term, gains in employment, real disposable income, and households’ net worth continue to evolve in a manner that will warrant gradualbe supportive of solid personal consumption expenditures growth. Consumer and business confidence remain high, the unemployment rate increases. The FOMC is widely expected to raise the federal funds rate target range by 25 basis pointssits at the December meeting.
Despite damage endured by recent hurricanesan 18 year low, and related distortions in September’s economic data, the U.S. economy has demonstrated consistent momentum and GDP is expected to increase at above-trend rates through next year. Blue Chip economistsjob growth remains steady. Economists expect GDP to increase at a 2.2%2.4% rate for all of 20172019 and at a 2.4%1.9% rate in 2018. The loss of jobs in September was largely associated with business disruptions from recent hurricanes; and employment growth is expected to resume in the coming months. GDP and employment growth of this magnitude is supportive of ongoing improvement in commercial real estate market conditions.2020.

Real Estate Market Conditions and Outlook
Commercial real estate conditions remained relatively steady during the third quarter of 2017.throughout 2018 and are expected to do so throughout 2019 as well. Tenant demand was generally strong enough to support modest vacancy rate improvements in the office and industrial sectors while apartment and retail market conditions softened. Transaction activity continued to weaken compared to 2016 levels. Real Capital Analytics (“RCA”) reported that sales of office, industrial, retail, and multi-family properties totaled $102.2 billion during third quarter 2017, a 5.1% decline from third quarter 2016.across all four sectors. Property pricing as calculated by the Green Street Advisor Commercial Property Price Index (“CPPI”) increased 1.0%0.5% during the thirdfirst quarter and 2.7% on a year-over-year basis. During 2017, property pricing has been essentially flat as modest increases in cap rates have largely offset income growth.
For the quarter ending September 30, 2017,March 31, 2019, the NCREIF Fund Index Open-End Diversified Core Equity (“NFI-ODCE”) Equal Weight total return, net of fees was 1.68%.increased to 1.48%, from 1.39% in the fourth quarter. The NFI-ODCE is a leveraged fund-level return index which includes property investments at ownership share, cash balances, and other investments. The Account'sAccount’s real estate assets generated a 1.51%1.22% total return duringin the thirdfirst quarter of 2017.2019. Total returns were positive for the 3036th consecutive quarter, but at this stage in the cycle, income is the primary driver of returns.quarter.

tiaa-realest_chartx20367a01.jpgchart-526cc888ee9a5fbbb11.jpg
Occupancy in the Account’s properties averaged 91.1% leased92.0% during the thirdfirst quarter of 20172019 as compared with 91.4% during secondto 92.1% in the previous quarter. Data for the Account’s top five markets in terms of marketfair value as of September 30, 2017March 31, 2019 are provided below. These five markets represent nearly half of the Account’s total real estate portfolio.
Top 5 Metro Areas by Fair Market ValueAccount % Leased Fair Value Weighted*Number of Property InvestmentsMetro Area Fair Value as a % of Total RE Portfolio**Metro Area Fair Value as a % of Total InvestmentsAccount % Leased Fair Value Weighted*Number of Property InvestmentsMetro Area Fair Value as a % of Total RE Portfolio**Metro Area Fair Value as a % of Total Investments
Washington-Arlington-Alexandria, DC-VA-MD-WV85.0%1310.8%8.4%
New York-Jersey City-White Plains, NY-NJ93.3%1613.1%10.3%91.9%1410.7%8.2%
Washington-Arlington-Alexandria, DC-VA-MD-WV86.4%1311.4%9.0%
Los Angeles-Long Beach-Glendale, CA86.5%128.9%7.0%91.6%159.4%7.3%
San Francisco-Redwood City-South San Francisco, CA95.5%86.5%5.1%
Boston, MA91.6%57.1%5.5%92.3%65.8%4.5%
Seattle-Bellevue-Everett, WA91.8%65.8%4.6%
*Weighted by fair value, which differs from the calculations provided for market comparisons to CBRE-EA data and are used here to reflect the fair value of the Account’s monetary investments in those markets.
**Wholly-owned properties are represented at fair value and gross of any debt, while joint venture properties are represented at the net equity value.

Office
Finance and professional & business services have beenLeasing is historically driven by companies involved in the traditional drivers of the demand for office space. The financial services sector added 29,000 jobs during the third quarter of 2017 as compared to 41,000 during the second quarter. The professional and business services sector, which includes many facetswith technology-related companies included within this classification. The sector added 96,000 jobs during the first quarter of technology-related employment, added 99,000 jobs as compared to 140,000 previously. Although job growth in both sectors moderated compared to second quarter, labor market conditions were strong enough to support a decline2019, with the financial services sector contributing an additional 23,000 jobs. Driven by declining suburban vacancy rates, vacancy nationwide decreased from 12.6% in the national office vacancy ratefourth quarter of 2018 to 12.9%,12.5% in the first quarter of 2019, as reported by CB Richard Ellis Econometric Advisors (“CBRE-EA”). Several high-tech markets includingVacancies continue to trend lowest in cities with a significant technology presence (e.g., San Francisco, Seattle, Austin, Nashville, Raleigh, and New York maintained single-digit vacancy rates.
Market vacancy rates as reported by CBRE-EA decreased or remained steady in all five of the Account’s top office markets during the third quarter of 2017.Seattle). The vacancy rate for the Account’s office portfolio however, increasedremained level from the previous quarter at 13.9%. The vacancy rate in Washington, D.C. is above the market average, driven by an elevated vacancy rate at the Account's largest office property in the metro area. Known future leases at this property set to average 15.1% during the third quarter, from 14.8%commence in the second quarter. The lossand third quarters of a public sector tenant2019 are expected to bring the Account's vacancy rate in one ofline with the Account’s properties in Washington, DC contributed to the rise in vacancy in that area. Themarket average. An above-average vacancy rate in the Account’s New York propertiesmetro area is reflective of repositioning activity atdriven by two properties whichcurrently undergoing redevelopment to increase the long term value of the properties. The vacancy rate in the New York metro will likely keep the vacancy rateremain elevated over the near term. A new lease was recently signed at one ofterm as legacy tenants fully vacate the Account’s large assets in Los Angeles, which should bring the vacancy rate down in subsequent quarters.properties so that redevelopment efforts can move forward.
     Account Square
Foot Weighted
Average Vacancy		 Market
Vacancy*		     Account Square
Foot Weighted
Average Vacancy		 Market
Vacancy*
Top 5 Office Metropolitan Areas Total Sector
by Metro Area
($M)		 % of Total
Investments		 2017 Q3 2017 Q2 2017 Q3 2017 Q2 Total Sector
by Metro Area
($M)		 % of Total
Investments		 2019 Q1 2018 Q4 Q1 2019 2018 Q4
Account / Nation     15.1% 14.8% 12.9% 13.0%     13.9% 13.9% 12.5% 12.6%
Washington-Arlington-Alexandria, DC-VA-MD-WV $1,475.0
 5.4% 16.5% 13.7% 15.4% 15.6% $1,475.5
 5.1% 19.3% 19.7% 14.6% 14.9%
San Francisco-Redwood City-South San Francisco, CA 1,245.7
 4.3% 3.2% 3.2% 5.2% 5.5%
Boston, MA 1,467.0
 5.4% 10.9% 11.3% 9.8% 9.8% 1,190.8
 4.1% 9.3% 10.0% 8.9% 9.4%
San Francisco-Redwood City-South San Francisco, CA 1,132.6
 4.2% 8.3% 6.6% 7.1% 7.4%
New York-Jersey City-White Plains, NY-NJ 1,125.2
 4.1% 22.5% 20.0% 9.4% 9.5% 1,179.2
 4.1% 24.7% 23.5% 9.2% 9.3%
Los Angeles-Long Beach-Glendale, CA 742.2
 2.7% 27.0% 27.6% 13.6% 13.7% 769.6
 2.7% 4.8% 6.5% 12.7% 12.9%
*
Source: CBRE - EA.CBRE-EA. Market vacancy is defined as the percentage of space vacant. The Account’s vacancy is defined as the square foot-weighted percentage of unleased space.
Market vacancy is defined as the percentage of space vacant. The Account’s vacancy is defined as the square foot-weighted percentage of unleased space.
Industrial
Industrial market conditions are primarily influenced by GDP growth, international trade, and consumer spending. Growingspending, especially e-commerce salessales. Uncertainty in particular have boosted warehouse demand. Duringinternational trade caused by U.S. protectionist measures continues to persist as a potential headwind to industrial growth, but recent deescalation of protectionist threats between the third quarter, CBRE-EA reportedU.S. and its trading partners suggests that themoderation in trade negotiations may prevail. Demand for industrial space remains strong, with national industrial availability rate decreaseddecreasing for the 36th straight quarter to 7.7%7.0% after ending the secondfourth quarter of 2018 at 7.8%7.1%. With supply beginningA cooling U.S. economy is likely to increase, industrial market conditions may fluctuate between modest improvements and a general flattening in availability at this pointslow growth in the cycle.
supply-demand gap in the near-term, especially as the sector absorbs new construction in the pipeline, but improving international trade relations and resilient consumer spending is expected to keep the sector in good overall health. The average availabilityvacancy rate of the Account’s industrial properties increaseddecreased to 9.7%7.0% in the thirdfirst quarter of 20172019 from 8.2% during7.5% in the fourth quarter of 2018, driven by the redeployment of space recently vacated by tenants with expiring leases. Elevated vacancy in the Fort Lauderdale metro area will continue until at least the second quarter. Availability ratesand third quarters of 2019, when signed future leases are scheduled to commence. Vacancy in three of the Account’s top five industrial markets were near or well below their respective market averages. Several tenants vacated space in one of the Account’sDallas and Los Angeles properties, causingmetro areas improved as tenants on month-to-month or similar short-term leases departed and were replaced with higher quality tenants with leases of a longer duration at market rents. Overall vacancy in these metro areas may persist above the market average vacancythroughout 2019 as short-term leases are allowed to riseexpire and the tenants vacate, but available space reflected in that area. One tenant downsized a significant amount of space in one of the Account’s Tacoma properties, contributing to the vacancy rise there, but a new tenant has since signed a leaserate is typically already under contract to backfillprospective tenants with leases set to commence in the vacant space.future once capital projects at the property are completed.

     Account Square
Foot Weighted
Average Vacancy		 Market
Vacancy*		     Account Square
Foot Weighted
Average Vacancy		 Market
Vacancy*
Top 5 Industrial Metropolitan Areas Total Sector
by Metro Area
($M)		 % of Total
Investments		 2017 Q3 2017 Q2 2017 Q3 2017 Q2 Total Sector
by Metro Area
($M)		 % of Total
Investments		 2019 Q1 2018 Q4 Q1 2019 2018 Q4
Account / Nation     9.7% 8.2% 7.7% 7.8%     7.0% 7.5% 7.0% 7.1%
Riverside-San Bernardino-Ontario, CA $772.2
 2.8% 0.0% 0.0% 6.2% 6.4% $878.5
 3.0% 0.0% 0.0% 5.5% 6.0%
Los Angeles-Long Beach-Glendale, CA 320.1
 1.2% 9.0% 5.1% 4.2% 3.9% 371.4
 1.3% 7.4% 8.5% 4.6% 4.5%
New York-Jersey City-White Plains, NY-NJ 307.2
 1.1% 2.4% 3.2% 7.2% 7.0%
Tacoma-Lakewood, WA 295.2
 1.1% 7.3% 4.1% 4.7% 4.7% 364.9
 1.3% 2.0% 2.0% 5.5% 4.6%
Dallas-Plano-Irving, TX 263.9
 1.0% 4.7% 6.1% 8.0% 8.1% 288.2
 1.0% 10.4% 12.7% 9.2% 9.3%
Fort Lauderdale-Pompano Beach-Deerfield Beach, FL 282.7
 1.0% 13.4% 15.4% 6.7% 5.6%
*
Source: CBRE-EA.Market availability is the percentage of space available for rent. Account vacancy is the square foot-weighted percentage of unleased space. CBRE-EA considers Tacoma part of the Seattle industrial market. Market vacancy rates reflect the Seattle-Tacoma total.
Market availability is the percentage of space available for rent. Account vacancy is the square foot-weighted percentage of unleased space.
Note—CBRE-EA considers Tacoma part of the Seattle industrial market. Market vacancy rates reflect the Seattle-Tacoma total.
Multi-Family
Apartment demand is generated fromdriven by a combination of economic and demographic forces including job growth, household formations, and changes in the U.S. homeownership rate. The national apartment vacancy rate increased from 4.0% in the prior quarter to 4.6% during the third4.4% in first quarter of 2017 as compared to 4.5% during third quarter 2016. CBRE-EA is expecting market conditions to2019, driven high levels of completion. Deliveries of new apartments continue to soften as new supply is delivered to the market. Over the next year, the supply pipeline is expected to peakbe absorbed well in many markets, and market conditions should begin to stabilize.
rents have risen accordingly, especially among units priced for moderate incomes. The vacancy rate of the Account’s multi-family properties felldecreased to 6.4% during6.1% in the thirdfirst quarter of 2019 as compared to 7.0%6.2% in the second quarter. As shownprior quarter, primarily driven modest increases in vacancy at several of the following table, averageAccount's properties. The primary driver behind the elevated vacancy rates in the Account’s top five apartment marketsLos Angeles and Denver metro areas are renovation efforts at or above their comparable market averages. Strong leasing activity at oneseveral of the Account’sAccount's properties in New York improved vacancy to market average. The deliveryenhance their marketability and lease-up of several new projects in the local sub-market impacted vacancy in the Account’s properties in Denver. The Account’s properties in Fort Lauderdale benefited from increased leasing activity during the end of the summer while the overall market experienced significant deliveries.long-term value.
     Account Units
Foot Weighted
Average Vacancy		 Market
Vacancy*		     Account Units Weighted
Average Vacancy		 Market
Vacancy*
Top 5 Apartment Metropolitan Areas Total Sector
by Metro Area
($M)		 % of Total
Investments		 2017 Q3 2017 Q2 2017 Q3 2017 Q2 Total Sector
by Metro Area
($M)		 % of Total
Investments		 2019 Q1 2018 Q4 Q1 2019 2018 Q4
Account / Nation     6.4% 7.0% 4.6% 4.6%     6.1% 6.2% 4.4% 4.0%
New York-Jersey City-White Plains, NY-NJ $863.1
 3.2% 3.1% 4.8% 3.1% 3.2%
Washington-Arlington-Alexandria, DC-VA-MD-WV 803.2
 3.0% 8.2% 8.6% 4.7% 4.5% $785.5
 2.7% 6.3% 6.0% 4.3% 4.3%
Los Angeles-Long Beach-Glendale, CA 558.9
 2.1% 6.2% 5.9% 4.0% 3.9% 689.5
 2.4% 8.7% 6.7% 3.6% 3.1%
New York-Jersey City-White Plains, NY-NJ 518.6
 1.8% 2.3% 3.5% 3.3% 2.6%
Denver-Aurora-Lakewood, CO 327.9
 1.2% 7.7% 5.3% 4.9% 5.2% 409.3
 1.4% 8.9% 7.4% 5.3% 4.9%
Fort Lauderdale-Pompano Beach-Deerfield Beach, FL 295.9
 1.1% 8.3% 12.3% 6.0% 5.6%
San Diego-Carlsbad, CA 317.4
 1.1% 4.0% 5.6% 3.9% 3.6%
*
Source: CBRE-EA.Market vacancy is the percentage of units vacant. The Account’s vacancy is the percentage of unleased units.
Market vacancyRetail
Retail demand in the Account's portfolio is the percentage of units vacant. The Account’s vacancy is the percentage of unleased units.
Retail
driven by U.S. consumers, whose willingness to spend directly correlates with retailers' need for domestic rental space. Preliminary data from the U.S. Census Bureau indicate that retail sales excluding motor vehicles and parts increased 1.0% from second to third2.4% in the first quarter of 2019 and 4.1%3.6% on a year-over-year basisbasis. Disruption from e-commerce continues to challenge the overall retail market. The retail leasing market is increasingly competitive, as the pool of retailers leasing space shrinks due to the long-term trend of consumers moving to digital platforms for retail spending instead of through traditional brick-and-mortar outlets. Retail properties that are older, located in suboptimal locations, or have significant exposure to low quality tenants are especially compromised as the third quarter. Retail market conditionsevolves, but well-positioned properties have been challenged by rising onlineshown resiliency due to continued demand for premier retail sales, bankruptciesspace. The Account's retail portfolio is composed primarily of high-end lifestyle shopping centers and store closings, but national availability rates have generally held steadyregional malls in large metropolitan or modestly declined since 2011. However, CBRE-EA data indicates thattourist centers. Moreover, the national retail availabilityportfolio is managed proactively to minimize significant exposure to any single retailer. The vacancy rate increased to 10.2% in the third quarter from 10.1% in the second quarter. CBRE-EA noted that an

increasing trend could continue in the coming quarters. All offor the Account’s retail investments have vacancy rates below 10.0%, which is reflectiveportfolio increased to 6.5% in the first quarter of 2019

from 5.9% in the prior quarter, attributed to scheduled lease expirations at multiple retail properties within the portfolio, most notably among some of the overall high qualitylarger regional malls held by the Account. New tenants to fill this recently vacated space have largely been identified, with many of the retail portfolio.prospective tenants already under contract.
Outlook
      Account Units Weighted
Average Vacancy		 Market
Vacancy*
  Total Sector
by Metro Area
($M)		 % of Total
Investments		 2019 Q1 2018 Q4 2019 Q1 2018 Q4
National Retail     6.5% 5.9% 6.2% 6.3%
   Lifestyle & Mall $2,506.1
 60.3% 5.9% 4.8% 5.0% 5.3%
   Neighborhood, Community & Strip 1,053.8
 25.4% 7.5% 7.1% 8.8% 9.0%
   Power Center** 594.5
 14.3% 2.5% 4.2% 7.0% 6.9%
* Source: CBRE-EA. Market vacancy is defined as the percentage of space available for rent. The real estate cycleAccount’s vacancy is indeed mature; moderationthe square foot-weighted percentage of returns has occurred andunleased space.
** The Power Center designation is to be expected. Cycles do not end simply because of longevity, however. Imbalances in onereserved for properties with three or more segmentsanchor units. Anchor units are leased to large retailers such as department stores, home improvement stores and warehouse clubs. Properties with the Neighborhood, Community and Strip designation consist of the economy are typically the cause, and none are currently evident. Property market conditions have generally remained stable. Regional conditions have varied depending on their economic drivers, but U.S. real estate markets on the whole are largely well-balanced.two or less anchor units.
Economists expect GDP growth of 2.2% in 2017 and 2.4% in 2018. Job growth is expected to moderate, but remain strong enough to bring the unemployment rate down further. Interest rates are expected to rise at a gradual pace throughout the rest of 2017 and 2018. The biggest risk to the US economy is exogenous. The geopolitical landscape has increased uncertainty. Expected cuts in U.S. personal and corporate tax rates appear increasingly unlikely to occur in 2017. Nonetheless, if domestic economic conditions approximate economist expectations, real estate market conditions should remain healthy into 2018.

INVESTMENTS
As of September 30, 2017, the Account had total net assets of $24.8 billion, a 2.2% increase from DecemberMarch 31, 2016. The increase in the Account’s net assets was primarily driven by net investment income and appreciation in value of the Account’s investments.
As of September 30, 2017, the Account owned a total of 134 real estate investments (109 of which were wholly-owned, 25 of which were held in joint ventures). The real estate portfolio included 38 office investments (including 12 held in joint ventures), 34 industrial investments (including one held in a joint venture), 39 apartment investments (including one held in a joint venture), 21 retail investments (including ten held in joint ventures), one 75% owned joint venture interest in a portfolio of storage facilities, and one leasehold interest encumbered by a ground lease. Of the real estate investments, 33 are subject to debt (including 13 joint venture investments).
The outstanding principal on mortgage loans payable on the Account’s wholly-owned real estate portfolio as of September 30, 2017 was $2.3 billion. The Account’s proportionate share of outstanding principal on mortgage loans payable within its joint venture investments was $2.2 billion, which is netted against the underlying properties when determining the joint venture investment’s fair value presented on the consolidated schedules of investments. When the mortgage loans payable within the joint venture investments are considered, total outstanding principal on the Account’s portfolio as of September 30, 2017 was $4.5 billion, which represented a loan to value ratio of 15.2%. The Account has no Account-level debt.
At September 30, 2017,2019, the Account held 78.5%77.4% of its total investments in real estate and real estate joint ventures. The Account also held investments in government agency notes representing 12.1%8.6% of total investments, U.S. Treasury securities representing 6.1% of total investments, real estate-related equity securities representing 4.1% of total investments, U.S. Treasury securities representing 3.7%3.9% of total investments, loans receivable representing 1.1%3.3% of total investments, and real estate limited partnerships representing 0.5%0.7% of total investments.
The outstanding principal on mortgage loans payable on the Account’s wholly-owned real estate portfolio as of March 31, 2019 was $2.7 billion. The Account’s proportionate share of outstanding principal on mortgage loans payable within its joint venture investments was $3.3 billion, which is netted against the underlying properties when determining the joint venture investment’s fair value presented on the Consolidated Schedules of Investments. When the mortgage loans payable within the joint venture investments are considered, total outstanding principal on the Account’s portfolio as of March 31, 2019 was $6.0 billion, which represented a loan to value ratio of 18.3%. The Account has no active loans outstanding on the Line of Credit as of March 31, 2019.
Management believes that the Account’s real estate portfolio is diversified by location and property type. The Account’s largest investment, Fashion Show, located in Las Vegas, NV,Nevada, represented 3.9%4.7% of total real estate investments and 3.1%3.7% of total investments. As discussed in the Account’s prospectus, the Account does not intend to buy and sell its real estate investments simply to make short-term profits. Rather, the Account’s general strategy in selling real estate investments is to dispose of those assets that management believes (i) have maximized in value, (ii) have underperformed or face deteriorating property-specific or market conditions, (iii) need significant capital infusions in the future, (iv) are appropriate to dispose of in order to remain consistent with the Account’s intent to diversify the Account by property type and geographic location (including reallocating the Account’s exposure to or away from certain property types in certain geographic locations), or (v) otherwise do not satisfy the investment objectives of the Account. Management, from time to time, will evaluate the need to manage liquidity in the Account as part of its analysis as to whether to undertake a particular asset sale. The Account could reinvest any sale proceeds that it does not need to pay operating expenses or to meet debt service or redemption requests (e.g., participant withdrawals or benefit payments).





The following table lists the Account's ten largest investments as of September 30, 2017.March 31, 2019. For information regarding the Account's diversification of real estate assets by region and property type, see Note 3—Credit Risk Concentrations.Concentrations of Risk.

Ten Largest Real Estate Investments
Property Investment Name City State Type 
Fair Value
(in millions)(1)
 Property as a
% of Total
Real Estate
Portfolio		 Property as a
% of Total
Investments		 Ownership Percentage City State Type 
Gross Real Estate Fair Value(1)
 
Debt Fair Value(2)
 
Net Real Estate Fair Value(3)
 
Property as a
% of Total
Real Estate
Portfolio(4)
 
Property as a
% of Total
Investments(5)
Fashion Show Las Vegas NV Retail $837.9
 
(2) 
 3.9% 3.1% 50% Las Vegas NV Retail $1,202.7
 $420.5
 $782.2
 4.7% 3.7%
SITE Centers Corp(6)
 85% Various U.S.A. Retail 1,178.0
 539.1
 638.9
 4.6% 3.7%
The Florida Mall 50% Orlando FL Retail 925.1
 159.9
 765.2
 3.6% 2.9%
Simpson Housing Portfolio 80% Various U.S.A. Apartment 788.3
 392.5
 395.8
 3.1% 2.5%
1001 Pennsylvania Avenue Washington DC Office 810.0
 
(3) 
 3.8% 3.0% 100% Washington D.C. Office 783.5
 319.5
 464.0
 3.1% 2.4%
The Florida Mall Orlando FL Retail 754.8
 
(4) 
 3.5% 2.8%
DDR Various USA Retail 615.8
 
(5) 
 2.9% 2.3%
Colorado Center 50% Santa Monica CA Office 623.0
 265.0
 358.0
 2.4% 1.9%
Fourth and Madison Seattle WA Office 527.0
 
(6) 
 2.5% 1.9% 100% Seattle WA Office 590.0
 281.7
 308.3
 2.3% 1.8%
501 Boylston Street Boston MA Office 506.3
 
(7) 
 2.4% 1.9%
99 High Street Boston MA Office 504.0
 
 2.4% 1.9% 100% Boston MA Office 506.0
 272.0
 234.0
 2.0% 1.6%
425 Park Avenue New York NY Ground Lease 454.0
 2.1% 1.7% 100% New York City NY Ground Lease 464.0
 —
 464.0
 1.8% 1.4%
780 Third Avenue New York NY Office 429.0
 
(8) 
 2.0% 1.6%
Ontario Industrial Portfolio Ontario CA Industrial 397.4
 
 1.9% 1.5% 100% Ontario CA Industrial 450.7
 —
 450.7
 1.8% 1.4%
(1) 
Fair Value as reported inThe Account's share of the September 30, 2017 Consolidated Schedules of Investments. Investments owned 100% by the Account are reported based on fair value. Investments in joint ventures are reported at net equity value on a fair value basis, andof the property investment, gross of debt.
(2)
Debt fair values are presented at the Account's ownership interest.
(2)
Fashion Show is held in a joint venture with General Growth Properties, in which the Account holds 50% interest, and is presented net of debt. As of September 30, 2017, this debt had a fair value of $431.5 million.
(3) 
1001 Pennsylvania Avenue is presented grossThe Account's share of debt. The value of the Account's interest less the fair value of leverage is $475.4 million.the property investment, net of debt.
(4) 
The Florida MallTotal real estate portfolio is the aggregate fair value of the Account's wholly-owned properties and the properties held inwithin a joint venture, with Simon Property Group, L.P., in which the Account hold a 50% interest, and is presented netgross of debt. As of September 30, 2017, this debt had a fair value of $175.6 million.
(5) 
DDR Joint Venture, in whichTotal investments are the Account holds an 85% interest, consists of 24 retail properties located in 11 states and is presented net of debt. As of September 30, 2017, this debt had aaggregate fair value of $606.5 million.all investments held by the Account, gross of debt. Total investments, as calculated within this table, will vary from total investments, as calculated in the Account's Schedule of Investments, as joint venture investments are presented in the Schedules of Investments at their net equity position in accordance with U.S. Generally Accepted Accounting Principals ("GAAP").
(6) 
Fourth and Madison is presented gross of debt. The value of the Account's interest less the fair value of leverage is $324.8 million.Formerly known as DDR.
(7)
501 Boylston Street is presented gross of debt. The value of the Account's interest less the fair value of leverage is $292.5 million.
(8)
780 Third Avenue is presented gross of debt. The value of the Account's interest less the fair value of leverage is $258.4 million.


Results of Operations
NineThree months ended September 30, 2017March 31, 2019 compared to ninethree months ended September 30, 2016March 31, 2018
Net Investment Income
The following table shows the results of operations for the ninethree months ended September 30, 2017March 31, 2019 and 20162018 and the dollar and percentage changes for those periods (dollars in millions, unaudited).
 For the Nine Months Ended September 30, Change For the Three Months Ended March 31, Change
2017 2016 $ %2019 2018 $ %
INVESTMENT INCOME                
Real estate income, net:                
Rental income $791.6
 $755.9
 $35.7
 4.7 % $262.6
 $272.0
 $(9.4) (3.5)%
Real estate property level expenses:                
Operating expenses 164.9
 163.5
 1.4
 0.9 % 59.2
 57.3
 1.9
 3.3 %
Real estate taxes 127.3
 116.9
 10.4
 8.9 % 46.6
 44.9
 1.7
 3.8 %
Interest expense 67.3
 63.3
 4.0
 6.3 % 25.7
 23.8
 1.9
 8.0 %
Total real estate property level expenses 359.5
 343.7
 15.8
 4.6 % 131.5
 126.0
 5.5
 4.4 %
Real estate income, net 432.1
 412.2
 19.9
 4.8 % 131.1
 146.0
 (14.9) (10.2)%
Income from real estate joint ventures and limited partnerships 154.3
 111.8
 42.5
 38.0 % 49.7
 54.9
 (5.2) (9.5)%
Interest 37.6
 17.8
 19.8
 N/M
 41.1
 18.1
 23.0
 N/M
Dividends 15.7
 19.9
 (4.2) (21.1)% 4.4
 9.7
 (5.3) (54.6)%
TOTAL INVESTMENT INCOME 639.7
 561.7
 78.0
 13.9 % 226.3
 228.7
 (2.4) (1.0)%
Expenses:                
Investment management charges 52.9
 51.8
 1.1
 2.1 % 19.5
 14.6
 4.9
 33.6 %
Administrative charges 46.0
 48.4
 (2.4) (5.0)% 13.3
 14.8
 (1.5) (10.1)%
Distribution charges 19.6
 21.3
 (1.7) (8.0)% 7.9
 6.9
 1.0
 14.5 %
Mortality and expense risk charges 0.9
 0.9
 —
 — % 0.3
 0.3
 —
 — %
Liquidity guarantee charges 34.5
 28.1
 6.4
 22.8 % 12.9
 12.2
 0.7
 5.7 %
TOTAL EXPENSES 153.9
 150.5
 3.4
 2.3 % 53.9
 48.8
 5.1
 10.5 %
INVESTMENT INCOME, NET $485.8
 $411.2
 $74.6
 18.1 % $172.4
 $179.9
 $(7.5) (4.2)%
The following table illustrates and compares rental income, operating expenses and real estate taxes for properties held by the Account for the three months ended March 31st for each year shown below, "same property," as compared to the comparative increases or decreases associated with the acquisition and disposition of properties made in either period.
  Rental Income Operating Expenses Real Estate Taxes
 Change  Change  Change
20192018$% 20192018$% 20192018$%
Same Property $239.7
$236.9
$2.8
1.2 % $53.0
$51.0
$2.0
3.9% $42.2
$40.5
$1.7
4.2%
Properties Acquired 21.9
2.0
19.9
N/M
 5.7
0.5
5.2
N/M
 4.2
0.4
3.8
N/M
Properties Sold 1.0
33.1
(32.1)N/M
 0.5
5.8
(5.3)N/M
 0.2
4.0
(3.8)N/M
Impact of Properties Acquired/Sold 22.9
35.1
(12.2)N/M
 6.2
6.3
(0.1)N/M
 4.4
4.4
—
N/M
Total Property Portfolio $262.6
$272.0
$(9.4)(3.5)% $59.2
$57.3
$1.9
3.3% $46.6
$44.9
$1.7
3.8%
N/M—Not meaningful

Rental Income:
Rental income increased $35.7decreased by $9.4 million, or 4.7%3.5%, primarily due to net acquisitions coupled withdisposition activity. Rental income of properties held through both comparative periods increased occupancy$2.8 million, or 1.2%, driven by rising market rents and reduced rental concessions, most notably among industrial and office properties in the retail and apartment sectors and reduced leasing incentives in the industrial and retail sectors.Western region.
Operating Expenses:
Operating expenses increased $1.4$1.9 million, or 0.9%3.3%, primarily duedriven by modest pricing increases among vendors providing services to net acquisitions.the Account's properties, most notably in the apartment sector. Continued tightening in the U.S. labor market has allowed wages to rise, and this pressure has caused vendors to slowly raise pricing for services such as maintenance, groundskeeping, and cleaning.
Real Estate Taxes:
Real estate taxes increased $10.4$1.7 million, or 8.9%3.8%, primarily due to net real estate acquisitions coupled with higher property tax assessments resulting from increases inrising property values across the portfolio, most notably within the office and apartment sectors.sector.
Interest Expense:
Interest expense increased $4.0$1.9 million, or 6.3%8.0%, due toas a result of higher average outstanding principal balances through the nine months ended September 30, 2017,on mortgage loans payable, as compared to the same period in 2016.2018.

Income from Real Estate Joint Ventures and Limited Partnerships:
Income from real estate joint ventures and limited partnerships increased $42.5decreased $5.2 million, or 38.0%9.5%, as a result of net acquisitions and higherlower distributions primarily from athe Account's joint venture investments, primarily the regional malls. Although distributed income declined, undistributed income had a comparable increase such that holds a large retail propertythe change in Las Vegas, Nevada.overall income generated by the joint ventures was flat. Undistributed income is anticipated to be distributed to the Account in future quarters.
Interest and Dividend Income:
Interest income increased $19.8$23.0 million primarily due to interest income earned on a larger loan receivable portfolio in 20172019 as compared to the same period in 2016.2018 paired with an increase in interest earned on the Account's government agency notes and U.S. Treasuries due to rising interest rates. Dividend income decreased $4.2$5.3 million whendue to a smaller REIT portfolio held in 2019 as compared to the same period in 2016 due to lower dividend yields on the Account's real-estate relatedsecurities.2018.
Expenses:
Expense ratios, as a percentage of average net assets, for investment advisory,Investment management, administrative and distribution charges were 0.48%are costs charged to the Account associated with managing the Account. Investment management charges are comprised primarily of fixed components, but fluctuate based on the size of the Account’s portfolio of investments, whereas administrative and 0.52% fordistribution charges are comprised of more variable components that generally correspond with movements in net assets. These expenses increased $4.4 million, or 12.1%, from the nine monthcomparable period ended September 30, 2017 and 2016, respectively. Costs decreasing slightly period over period, coupled withof 2018, primarily as result of an increase in average net assets, reduced the overall expense ratio. Theseallocated costs have fixed and variable components, the latter of which generally correspond to the level of the Account’s net assets under management and other cost drivers.Account for services rendered by TIAA.
Mortality and expense risk and liquidity guarantee chargesexpenses are contractual charges to the Account from TIAA for TIAA’s assumption of these risks and provision of the liquidity guarantee. The ratesrate for these charges wereis established annually; the current rates are effective May 1, 2017, for the twelve month period ending2018 through April 30, 2018,2019, and are charged at a fixed rate based on the Account’s net assets. These expenses increased $0.7 million, or 5.6%, as a result of an increase in the net assets of the Account from the previous period.

Net Realized and Unrealized Gains and Losses on Investments and Mortgage Loans Payable
The following table shows the net realized and unrealized gains and losses on investments and mortgage loans payable for the ninethree months ended September 30, 2017March 31, 2019 and 20162018 and the dollar and percentage changes for those periods (dollars in millions, unaudited).
 For the Nine Months Ended September 30, Change For the Three Months Ended March 31, Change
2017 2016 $ %2019 2018 $ %
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND MORTGAGE LOANS PAYABLE                
Net realized gain (loss) on investments:                
Real estate properties $58.4
 $26.5
 $31.9
 N/M
 $—
 $(11.8) $11.8
 N/M
Real estate joint ventures and limited partnerships (8.6) 0.4
 (9.0) N/M
 5.1
 0.2
 4.9
 N/M
Marketable securities 15.3
 21.6
 (6.3) (29.2)% 141.0
 3.0
 138.0
 N/M
Total realized gain on investments: 65.1
 48.5
 16.6
 34.2 %
Total realized gain (loss) on investments: 146.1
 (8.6) 154.7
 N/M
Net change in unrealized appreciation (depreciation) on:                
Real estate properties 74.8
 242.2
 (167.4) (69.1)% 73.9
 102.3
 (28.4) (27.8)%
Real estate joint ventures and limited partnerships 88.7
 152.3
 (63.6) (41.8)% 2.5
 24.3
 (21.8) (89.7)%
Marketable securities 34.2
 84.2
 (50.0) (59.4)% 76.3
 (90.8) 167.1
 N/M
Loans receivable 1.4
 0.1
 1.3
 N/M
 1.2
 0.1
 1.1
 N/M
Mortgage loans payable (10.6) (54.8) 44.2
 (80.7)% (29.6) 27.7
 (57.3) N/M
Net change in unrealized appreciation on investments and mortgage loans payable 188.5
 424.0
 (235.5) (55.5)% 124.3
 63.6
 60.7
 95.4 %
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND MORTGAGE LOANS PAYABLE $253.6
 $472.5
 $(218.9) (46.3)% $270.4
 $55.0
 $215.4
 N/M
N/M—Not meaningful

Real Estate Properties, Joint Ventures and Limited Partnerships:
Net realized gains in the Account are primarily attributed to the dispositionsale of wholly-owned real estate properties.investments. See the Recent Transactions section herein for additional disclosure regarding the sale of the Account’s real estate property investments.
Real Estate Properties:
Wholly-owned real estate investments experienced net realized and unrealized gains of $133.2$73.9 million during the first nine monthsquarter of 20172019 compared to $268.7$90.5 million during the comparable period of 2016. While the rate of appreciation has slowed in 2017, the Account continues to see appreciation across most of its sectors.2018. Appreciation for the nine months ended September 30, 2017 was largely concentrated among the Account's industrial sector, especially in the Western region. Strong tenantfirst quarter of 2019 was primarily driven by rising market rents and continued strong investor demand for properties in the office and industrial spacesectors, most notably among investments located in California has been the primary driver of this appreciation.San Francisco, CA and Seattle, WA.
Real Estate Joint Ventures and Limited Partnerships:
Real estate joint ventures and limited partnerships experienced net realized and unrealized gains of $80.1$7.6 million during the first nine monthsquarter of 2017,2019, compared to $152.7$24.5 million during the comparable period of 2016. While2018. Office joint ventures located along the rateWest Coast were strong performers in the first quarter of 2019, but overall appreciation has slowedwas offset by declines in 2017, the Account continues to see modest appreciation across most sectorsfair values of the Account's retail joint venture portfolio. The strongest appreciation for the nine months ended September 30, 2017 was amongventures, most notably the Account's office investmentslargest investment, a regional mall located in the Western region. Appreciation from joint venture regional malls in the Southern region was especially strong in 2016; the absence of this same appreciation in 2017 dueLas Vegas, NV, attributed to moderating market conditions was a significant driver of the overall decline from the prior year.increased competition for retail tenants.
Marketable Securities:
The Account’s marketable securities experienced net realized and unrealized gains of $49.5$217.3 million during the first nine monthsquarter of 20172019 compared to $105.8net realized and unrealized losses of $87.8 million during the comparable period of 2016.2018. The markets for REITsperformance of the Account's REIT portfolio was in the U.S. increased 6.0% as measured byline with the FTSE NAREIT All Equity REITs Index during the nine month period ended September 30, 2017, compared to a increase of 12.3% in the same period of 2016. Appreciation on the Account's real estate related equity securities moved in line with the market movements.both periods. Additionally, as of September 30, 2017,March 31, 2019, the Account held $4.3 billion of investments in government agency notes and U.S. Treasury securities, which had nominal changes due to the short-term nature of these investments.
Mortgage
Loans Payable:receivable:
Mortgage loans payableLoans receivable experienced an unrealized lossesgain of $10.6$1.2 million during the first nine months 2017quarter of 2019 compared to a $0.1 million unrealized losses of $54.8 milliongain during the comparable period of 2016.2018. The lower unrealized losses for the nine months ended September 30, 2017,changes in both periods were consistent with the directional movement of Treasury rates during the comparable period.

Results of Operations
Three months ended September 30, 2017 compared to three months ended September 30, 2016
Net Investment Income
The following table shows the results of operations for the three months ended September 30, 2017 and 2016 and the dollar and percentageminimal as there were no significant changes for those periods (dollars in millions, unaudited).
  For the Three Months Ended September 30, Change
2017 2016 $ %
INVESTMENT INCOME        
Real estate income, net:        
Rental income $267.9
 $257.4
 $10.5
 4.1 %
Real estate property level expenses:   
 
 
Operating expenses 56.9
 54.8
 2.1
 3.8 %
Real estate taxes 43.2
 40.4
 2.8
 6.9 %
Interest expense 22.5
 22.4
 0.1
 0.4 %
Total real estate property level expenses 122.6
 117.6
 5.0
 4.3 %
Real estate income, net 145.3
 139.8
 5.5
 3.9 %
Income from real estate joint ventures and limited partnerships 60.9
 33.5
 27.4
 81.8 %
Interest 15.9
 6.3
 9.6
 N/M
Dividends 7.9
 9.2
 (1.3) (14.1)%
TOTAL INVESTMENT INCOME 230.0
 188.8
 41.2
 21.8 %
Expenses:   
 
 
Investment management charges 15.5
 17.6
 (2.1) (11.9)%
Administrative charges 14.7
 17.0
 (2.3) (13.5)%
Distribution charges 6.4
 7.2
 (0.8) (11.1)%
Mortality and expense risk charges 0.3
 0.3
 —
 — %
Liquidity guarantee charges 12.5
 10.2
 2.3
 22.5 %
TOTAL EXPENSES 49.4
 52.3
 (2.9) (5.5)%
INVESTMENT INCOME, NET $180.6
 $136.5
 $44.1
 32.3 %
Rental Income:
Rental income increased $10.5 million, or 4.1%, primarily due to net real estate acquisitions.
Operating Expenses:
Operating expenses increased $2.1 million, or 3.8%, attributed mainly to net real estate acquisitions.
Real Estate Taxes:
Real estate taxes increased $2.8 million, or 6.9%, primarily due to net real estate acquisitions and rising tax value of properties in the portfolio.
Interest Expense:
Interest expense increased $0.1 million, or 0.4%, remaining relatively flat, due to minimal movement in average outstanding principal as compared to the comparable period of 2016.

Income from Real Estate Joint Ventures and Limited Partnerships:
Income from real estate joint ventures and limited partnerships increased $27.4 million, or 81.8%, for the three months ended September 30, 2017, when compared to the same period of 2016, due to net acquisitions and increased distributions received from a joint venture investment that holds a retail portfolio.
Interest and Dividend Income:
Interest income increased $9.6 million primarily due to interest income earned on a larger loan receivable portfolio in 2017 as compared to the same period in the previous year. Dividend income decreased $1.3 million when compared to the same period of 2016. Yields were consistent with the sizecredit quality of the REIT portfolio in each respective quarter.
Expenses:
Expense ratios, as a percentage of average net assets, for investment advisory, administrative and distribution charges were 0.15% and 0.18% for the three month periods ended September 30, 2017 and 2016, respectively. Costs decreasing period over period, coupled with an increase in average net assets, reduced the overall expense ratio. These costs have fixed and variable components, the latter of which generally correspond to the levelunderlying collateral of the Account’s net assets under management and other cost drivers.
Mortality and expense risk and liquidity guarantee charges are contractual charges to the Account from TIAA for TIAA’s assumption of these risks and provision of the guarantee. The rates for these charges were established effective May 1, 2017, for the twelve month period ending April 30, 2018, and are charged based on the Account’s net assets.
Net Realized and Unrealized Gains and Losses on Investments and Mortgage Loans Payable
The following table shows the net realized and unrealized gains and losses on investments and mortgage loans payable for the three months endedSeptember 30, 2017 and 2016 and the dollar and percentage changes for those periods (dollars in millions, unaudited).
  For the Three Months Ended September 30, Change
2017 2016 $ %
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND MORTGAGE LOANS PAYABLE        
Net realized gain (loss) on investments:        
Real estate properties $75.2
 $16.4
 $58.8
 N/M
Real estate joint ventures and limited partnerships (8.6) 0.2
 (8.8) N/M
Marketable securities 2.6
 3.1
 (0.5) (16.1)%
Total realized gain on investments: 69.2
 19.7
 49.5
 N/M
Net change in unrealized appreciation (depreciation) on:        
Real estate properties (9.4) 36.9
 (46.3) N/M
Real estate joint ventures and limited partnerships 26.9
 24.3
 2.6
 10.7 %
Marketable securities 2.2
 (26.0) 28.2
 N/M
Loans receivable 1.4
 0.1
 1.3
 N/M
Mortgage loans payable (4.1) (29.1) 25.0
 (85.9)%
Net change in unrealized appreciation on investments and mortgage loans payable 17.0
 6.2
 10.8
 N/M
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND MORTGAGE LOANS PAYABLE $86.2
 $25.9
 $60.3
 N/M
N/M—Not meaningful

Real Estate Properties:
Wholly-owned real estate investments experienced net realized and unrealized gains of $65.8 million during the third quarter of 2017, compared to $53.3 million during the comparable period of 2016, mostly attributed to gains realized from the sale of wholly-owned properties and appreciation among the Account's industrial properties in the Western region. Strong tenant demand for industrial space in California has been the primary driver of this appreciation.
Real Estate Joint Ventures and Limited Partnerships:
Real estate joint ventures and limited partnerships experienced net realized and unrealized gains of $18.3 million during the third quarter of 2017, compared to gains of $24.5 million during the comparable period of 2016. The joint venture portfolio experienced positive appreciation during the third quarter of 2017, primarily due to increased occupancy and a decrease in lease concessions at one of the Account's joint venture office properties in California. The Account recorded similar appreciation in the comparable quarter of 2016, driven by similar factors within the Account's joint venture retail properties.
Marketable Securities:
The Account’s marketable securities experienced net realized and unrealized gains of $4.8 million during the third quarter of 2017 compared to losses of $22.9 million during the comparable period of 2016. The markets for REITs in the U.S. increased 1.1% as measured by the FTSE NAREIT All Equity REITs Index during the three month period ended September 30, 2017, compared to a decrease of 1.2% in the same period of 2016. Appreciation on the Account's real estate related equity securities moved in line with the market movements. Additionally, as of September 30, 2017, the Account held $4.3 billion ofdebt investments in government agency notes and U.S. Treasury securities, which had nominal changes due to the short-term nature of these investments.either period.
Mortgage Loans Payable:
Mortgage loans payable experienced an unrealized lossesloss of $4.1$29.6 million during the thirdfirst quarter of 20172019 compared to $29.1a $27.7 million unrealized gain during the comparable period of 2016.2018. The unrealized losseschanges in both periods were consistent with the directional movement of U.S. Treasury rates during the comparable period.rates.
Liquidity and Capital Resources
As of September 30, 2017March 31, 2019 and December 31, 2016,2018, the Account’s cash and cash equivalents and non-real estate-related marketable securities had a value of $4.3 billion and $4.1 billion representing 17.3%16.4% and 16.7%15.8% of the Account’s net assets at such dates, respectively.
Participant Flows: Nine months ended September 30, 2017 compared to nine months ended September 30, 2016
During the nine months ended September 30, 2017, the Account received $2.0 billion in premiums from participants offset by participant outflows of $2.2 billion in annuity payments and withdrawals and death benefits. During the nine months ended September 30, 2016, the Account received $2.3 billion in premiums from participants offset by participant outflows of $1.6 billion in annuity payments and withdrawals and death benefits.
Net Income and Marketable Securities
The Account’s net investment income continues to be an additionalis a source of liquidity for the Account. Net investment income was $485.8$172.4 million for the ninethree months ended September 30, 2017,March 31, 2019, as compared to $411.2$179.9 million for the comparable period of 2016.2018. The increase in total net investment income is described more fully in the Results of Operations section.
As of September 30, 2017,March 31, 2019, cash and cash equivalents, along with real estate-related and non-real estate related marketable securities comprised 21.8%20.6% of the Account’s net assets. The Account’s real estate-related marketable securities primarily consist of publicly traded REITs. The Account’s liquid assets continue to be available to purchase suitable real estate properties, meet the Account’s debt obligations, expense needs, and participant redemption requests (i.e., participant withdrawals or benefit payments).

LeverageThe Account has a $500.0 million unsecured line of credit available as needed to fund the Account's near-term objectives, as further described in Note 10 - Line of Credit. As of March 31, 2019, the Account has no active loans outstanding on the unsecured line of credit.
The Account may from time to time borrow money and assume or obtain a mortgage on a property to make leveraged real estate investments. Also, to meet any short-term cash needs, the Account may obtain a line of credit that may be unsecured and/or contain terms that may require the Account to secure the loan with one or more of its properties.
The Account is authorized to borrow money in accordance with its investment guidelines. Under the Account’s current investment guidelines, the Account’s loan to value ratio (as described below) is to be maintained at or below 30%. Such incurrences of debt from time to time may include:
placing new debt on properties;
refinancing outstanding debt;
assuming debt on acquired properties or interests in the Account’s properties; and/or
long term extensions ofextending the maturity date of outstanding debt.debt; and/or
an unsecured line of credit or credit facility.
In calculating this limit, only the Account’s actual percentage interest in any borrowings is included, and not that percentage interest held by any joint venture partner. Further, the Account may only borrow up to 70% of the then-current value of a property, although construction loans may be for 100% of the costs incurred in developing a property. At the time the Account (or a joint venture in which the Account is a partner) enters into a revolving line of credit, for the purpose of calculating the loan to valueloan-to-value ratio, management deems the maximum amount which may be drawn under that line of credit as fully incurred, regardless of whether the maximum amount available has been drawn from time to time.includes only amounts outstanding when calculating outstanding indebtedness.
As of September 30, 2017,March 31, 2019, the Account’s ratio of outstanding principal amount of debt (inclusive of the Account’s proportionate share of debt held within its joint venture investments) to total gross asset value (i.e., a “loan to value ratio”) was 15.2%18.3%. The Account intends to maintain its loan to value ratio at or below 30% (this ratio is measured at the time of incurrence and after giving effect thereto). The Account’s total gross asset value, for these purposes, is equal to the total fair value of the Account’s assets (including the fair value of the Account’s interest in joint ventures), with no reduction associated with any indebtedness on such assets.

As of September 30, 2017,March 31, 2019, there are nois one mortgage obligationsobligation secured by real estate investments wholly-owned by the Account maturing within the next twelve months. The Account has sufficient liquidity in the form of cash and cash equivalents and securities to meet its current mortgage obligations.
In times of high net inflow activity, in particular during times of high net participant transfer inflows, management may determine to apply a portion of such cash flows to make prepayments of indebtedness prior to scheduled maturity, which would have the effect of reducing the Account’s loan to value ratio.
Recent Transactions
The following describes property transactions by the Account during the thirdfirst quarter of 2017.2019. Except as noted, the expenses for operating the properties purchased are either borne or reimbursed, in whole or in part, by the property tenants, although the terms vary under each lease. Dollar amounts are shown in millions.
Purchases
The Bridges—Minneapolis, MN
On July 13, 2017, the Account acquired a student housing complex located near the University of Minnesota for $60.9 million.
Property Name Purchase Date Ownership Percentage Sector Location 
Net Purchase Price (1)
Glen Lake 01/09/2019 100.00% Apartments Atlanta, GA $54.8
1600 Broadway 01/10/2019 100.00% Office Denver, CO 109.1
The Theory 01/15/2019 97.00% Apartments Raleigh, NC 63.0
Colony Industrial Portfolio 02/20/2019 100.00% Industrial Various, U.S.A. 137.0
Storage Portfolio III(2)
 02/22/2019 90.00% Storage Various, U.S.A. 17.9
The Knoll—Minneapolis, MN
On July 13, 2017, the Account acquired a student housing complex located near the University of Minnesota for $14.8 million, which is net of a $17.7 million mortgage loan the Account assumed with the property, as further discussed in the
(1)  Financings section.

803 Corday—Naperville, IL
On August 10, 2017, the Account purchased a multi-family property located in Naperville, Illinois for $92.9 million.
DDR Joint Venture—Village Crossing: Phase I - Niles, IL
On September 7, 2017, the DDR joint venture investment, in which the Account holds an 85% interest, purchased a retail property located in Niles, Illinois for $44.4 million (the Account’s share).
Broward Industrial Portfolio—Various, FL
On September 19, 2017, the Account purchased an investment portfolio consisting of four industrial properties located in the Miami/Fort Lauderdale metro area for $54.1 million.
Orion on Orpington—Orlando, FL
On September 21, 2017, the Account purchased a student housing complex located near the University of Central Florida for $42.3 million.
The net purchase price represents the purchase price and closing costs.
(2)
The Account entered into a 90% interest in a joint venture designed for future investment in storage properties. The Account's maximum potential investment is $100.0 million and on February 22, 2019, the first storage property in Glen Burnie, MD, was acquired for $17.9 million (the Account's Share).
Sales
Ontario Industrial Portfolio: Inland Empire Industrial Portfolio—Various, CA
On August 17, 2017,
Property Name Sales Date Ownership Percentage Sector Location 
Net Sales Price (1)
 
Realized Gain/Loss on Sale(3)
1858 Meca Way(2)
 03/01/2019 100.00% Industrial Norcross, GA $2.9
 $—
(1)
The net sales price represents the sales price, less selling expenses.
(2)
Property held within Colony Industrial Portfolio.
(3)
No realized gain or loss was realized from the sale.
Loans Receivable
Borrower Name Financing Date Interest Rate Sector Maturity Date Location 
Loan Amount(1)
SCG Oakland Portfolio 03/01/2019 4.25% + LIBOR Office 03/01/2024 Oakland, CA $53.5
(1)
Loan Amount represents the Account's mezzanine loan receivable position.
Financings
Property Name Financing Date Ownership Percentage Interest Rate Sector Maturity Date Location 
Financing Amount(1)
The Theory 01/15/2019 97.00% 3.94% Apartments 01/15/2024 Raleigh, NC $31.3
(1)
Value represents a new mortgage loan.
Marketable Securities
In the first quarter of 2019, the Account sold an industrial portfolio held within its Ontario Industrial Portfolio locatedapproximately $500 million in various parts of California for a net sales price of $66.0 million, resulting in a realized gain of $20.9 million, the majority of which has been previously recognized as unrealized gains in the Account’s consolidated statements of operations. The Account’s cost basis in the property at the date of the sale was $45.1 million.
Rancho Cucamonga Industrial Portfolio: Inland Empire Industrial Portfolio—Various, CA
On August 17, 2017, the Account sold an industrial portfolio held within its Rancho Cucamonga Industrial Portfolio located in various parts of California for a net sales price of $104.8 million, resulting in a realized gain of $56.0 million, the majority of which has been previously recognized as unrealized gains in the Account’s consolidated statements of operations. The Account’s cost basis in the property at the date of the sale was $48.8 million.
The Pepper Building—Philadelphia, PA
On September 15, 2017, the Account sold this multi-family property located in Philadelphia, Pennsylvania for a net sales price of $51.7 million, realizing a loss of $1.7 million from the sale, the majority of which has been previously recognized as unrealized losses in the Account’s consolidated statements of operations. The Account’s cost basis in the property at the date of the sale was $53.4 million.
DDR Joint Venture: McFarland Plaza—Tuscaloosa, AL
On September 18, 2017, the DDR joint venture investment, in which the Account holds an 85% interest, sold a retail property located in Tuscaloosa, Alabama for a net sales price of $14.7 million (the Account’s share), which is gross of a $7.4 million mortgage loan extinguished during the sale of the property, as further discussed in the Financings section. The sale resulted in a realized loss of $8.9 million, the majority of which has been previously recognized as unrealized gains in the Account’s consolidated statements of operations. The Account’s cost basis in the property at the date of the sale was $23.6 million.
Financings
The Knoll—Minneapolis, MN
On July 13, 2017, concurrent with the purchase of a student housing complex located near the University of Minnesota, the Account assumed a $17.7 million mortgage loan. The loan has an interest rate of 3.98%, matures on December 5, 2020, and is adjusted monthly for principal payments.real estate-related securities.

Colorado Center—Santa Monica, CA
On August 1, 2017, Colorado Center joint venture investment, in which the Account holds a 50% interest, entered into a new mortgage loan with a principal amount of $275.0 million (the Account’s share). The debt has an interest rate of 3.563%, maturing August 9, 2027 and is interest only.
DDR Joint Venture—Various, USA
On August 14, 2017, the DDR joint venture investment, in which the Account holds an 85% interest, entered into a new mortgage loan secured by three retail properties with a principal amount totaling $90.3 million (the Account's share). The debt has an interest rate of 3.82%, maturing on September 11, 2027 and is interest only.
DDR Joint Venture: McFarland Plaza—Tuscaloosa, AL
On September 18, 2017, the DDR joint venture investment, in which the Account holds an 85% interest, extinguished $7.4 million of outstanding mortgage debt (the Account’s share) concurrent with the sale of a retail property located in Tuscaloosa, Alabama.
Critical Accounting Policies
Management’s discussion and analysis of the Account’s financial condition and results of operations is based on the Account’s consolidated interim financial statements,Consolidated Interim Financial Statements, which have been prepared by management in accordance with GAAP. The preparation of the Account’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the financial statements and disclosures. Some of these estimates and assumptions require application of difficult, subjective, and/or complex judgments about the effect of matters that are inherently uncertain and that may change in subsequent periods. Management evaluates its estimates and assumptions on an ongoing basis. Management bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities of the Account that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
In the Account’s Annual Report on Form 10-K for the year ended December 31, 2016,2018, management identified the critical accounting policies which affect its significant estimates and assumptions used in preparing the Account’s financial statements. Certain of these accounting policies are described in Note 1—Organization and Significant Accounting Policies in this Form 10-Q. There have been no material changes to these accounting policies to those disclosed in our 2016the Account's Annual Report on Form 10-K.10-K for the year ended December 31, 2018.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Account’s real estate holdings, including real estate joint venture, limited partnerships and loans receivable, which, as of September 30, 2017,March 31, 2019, represented 80.1%81.4% of the Account’s total investments, expose the Account to a variety of risks. These risks include, but are not limited to:
General Real Estate Risk—The risk that the Account’s property values or rental and occupancy rates could go downdecline due to general economic conditions, a weak market for real estate generally, disruptions in the credit and/or capital markets, or changing supply and demand for certain types of properties;
Appraisal Risk—The risk that the sale price of an Account property (i.e., the value that would be determined by negotiations between independent parties) might differ substantially from its estimated or appraised value, leading to losses or reduced profits to the Account upon sale;
Risk Relating to Property Sales—The risk that the Account might not be able to sell a property at a particular time for its full value, particularly in a poordeclining market. This might make it difficult to raise cash quickly and also could lead to Account losses;
Risks of Borrowing—The risk that interest rate changes may impact Account returns if the Account takes out a mortgage on a property, buys a property subject to a mortgage or holds a property subject to a mortgage, and hedging against such interest rate changes, if undertaken by the Account, may entail additional costs and be unsuccessful; and
Foreign Currency Risk—The risk that the value of the Account’s foreign investments, related debt, or rental income could increase or decrease due to changes in foreign currency exchange rates or foreign currency exchange control regulations, and hedging against such currency changes, if undertaken by the Account, may entail additional costs and be unsuccessful.
The Account believes the diversification of its real estate portfolio, both geographically and by sector, along with its quarterly valuation procedure, helps manage the real estate and appraisal risks described above.
As of September 30, 2017, 19.9%March 31, 2019, 18.6% of the Account’s total investments were comprised of marketable securities. Marketable securities include high-quality debt instruments (i.e., U.S. government agency notes) and REIT securities. The consolidated scheduleConsolidated Schedule of investmentsInvestments for the Account sets forth the general financial terms of these instruments, along with their fair values, as determined in accordance with procedures described earlier in the Critical Accounting Policies section above and in Note 1—Organization and Significant Accounting Policies to the Account’s Consolidated Financial Statements included herewith. As of the date of this report, the Account does not invest in derivative financial investments, nor does the Account engage in any hedging activity, although it may do so in selected circumstances in the future.

Risks associated with investments in real estate-related liquid assets (which could include, from time to time, REIT securities and CMBS), and non-real estate-related liquid assets, including financial/credit risk, market volatility risk, interest rate volatility risk and deposit/money market risk.
Financial/Credit Risk—The risk, for debt securities, that the issuer will not be able to pay principal and interest when due (and/or declare bankruptcy or be subject to receivership) and, for equity securities such as common or preferred stock, that the issuer’s current earnings will fall or that its overall financial soundness will decline, reducing the security’s value.
Market Volatility Risk—The risk that the Account’s investments will experience price volatility due to changing conditions in the financial markets regardless of the credit quality or financial condition of the underlying issuer. This risk is particularly acute to the extent the Account holds equity securities, which have experienced significant short-term price volatility over the past year. Also, to the extent the Account holds debt securities, changes in overall interest rates can cause price fluctuations.
Interest Rate Volatility—The risk that interest rate volatility may affect the Account’s current income from an investment.
Deposit/Money Market Risk—The risk that, to the extent the Account’s cash held in bank deposit accounts exceeds federally insured limits as to that bank, the Account could experience losses if banks fail.that bank fails. The Account does not believe it has exposure to significant concentration of deposit risk. In addition, there is some risk that investments held in money market accounts canmay also suffer losses.

In addition, to the extent the Account were to hold mortgage-backed securities (including commercial mortgage-backed securities) these securities are subject to prepayment risk or extension risk (i.e., the risk that borrowers will repay the loans earlier or later than anticipated). If the underlying mortgage assets experience faster than anticipated repayments of principal, the Account could fail to recoup some or all of its initial investment in these securities, since the original price paid by the Account was based in part on assumptions regarding the receipt of interest payments. If the underlying mortgage assets are repaid later than anticipated, the Account could lose the opportunity to reinvest the anticipated cash flows at a time when interest rates might be rising. The rate of prepayment depends on a variety of geographic, social and other functions, including prevailing market interest rates and general economic factors. The fair value of these securities is also highly sensitive to changes in interest rates. Note that the potential for appreciation, which could otherwise be expected to result from a decline in interest rates, may be limited by any increased prepayments. These securities may be harder to sell than other securities.
In addition to these risks, real estate equity securities (such as REIT stocks and mortgage-backed securities) would be subject to many of the same general risks inherent in real estate investing, making mortgage loans and investing in debt securities. For more information on the risks associated with all of the Account’s investments, see the Account’s most recent prospectus.
ITEM 4. CONTROLS AND PROCEDURES
(a) The registrant maintains a system of disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the registrant’s reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including TIAA’s Executive Vice President, Institutional Investment & Endowment Servicesand Chief Product Officer of TIAA Financial Solutions Product Group (Principal Executive Officer (“PEO”)) and TIAA’s Senior Executive Vice President, Chief Accounting Officer and Chief Financial OfficerCorporate Controller (Principal Financial and Accounting Officer (“PFO”)), as appropriate, to allow timely decisions regarding required disclosure.
Under the supervision and participation of the registrant’s management, including the registrant’s PEO and PFO, the registrant conducted an evaluation of the effectiveness of the registrant’s disclosure controls and procedures as defined in Rule 13a-15(e) under the Exchange Act as of September 30, 2017.March 31, 2019. Based upon management’s review, the PEO and PFO concluded that the registrant’s disclosure controls and procedures provide reasonable assurance that material information required to be included in the Account's periodic reports is recorded, processed, summarized and reported within the time periods specified in the relevant SEC rules and forms.

(b) Changes in internal control over financial reporting. There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
In the normal course of business, the Account may be named, from time to time, as a defendantor may be involved in various legal actions, including arbitrations, class actions and other litigation.
The Account establishes an accrual for all litigation and regulatory matters when it believes it is partyprobable that a loss has been incurred and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted, as appropriate, in light of additional information. The amount of loss ultimately incurred in relation to various claims and routine litigation arising inthose matters may be higher or lower than the ordinary courseamounts accrued for those matters.
As of business. Managementthe date of this annual report, management of the Account does not believe that the results of any such claims or litigation, individually or in the aggregate, will have a material effect on the Account’s business, financial position or results of operations.
ITEM 1A. RISK FACTORS.
There have been no material changes from the Account’s risk factors as previously reported in the Account’s Annual Report on Form 10-K for the year ended December 31, 2016.2018.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not applicable.
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.

ITEM 5. OTHER INFORMATION.
The Code of Ethics for TIAA’s senior financial officers, including its principal executive officer, principal financial officer, principal accounting officer, or controller, and persons performing similar functions, has been filed as an exhibit to the Account’s Annual Report on Form 10-K for the year ended December 31, 20162018 and can also be found on the following web site, http://www.tiaa.org/public/prospectuses/index.html.


ITEM 6. EXHIBITS
(1)(A)
Distribution Agreement for the Contracts Funded by the TIAA Real Estate Account, dated as of January 1, 2008, by and among Teachers Insurance and Annuity Association of America, for itself and on behalf of the Account, and TIAA-CREF Individual & Institutional Services, LLC1
http://www.sec.gov/Archives/edgar/data/946155/000093041313001686/c72835_ex1a.htm

(3)(A)
Restated Charter of TIAA (as amended)2
 
http://www.sec.gov/Archives/edgar/data/946155/000093041315001888/c80401_ex3a.htm
(B)
Amended Bylaws of TIAA3
http://www.sec.gov/Archives/edgar/data/946155/000093041315001888/c80401_ex3b.htm
(4)(A)
Forms of RA, GRA, GSRA, SRA, IRA Real Estate Account Endorsements,4 Keogh Contract,5Retirement Choice and Retirement Choice Plus Contracts5and Retirement Select and Retirement Select Plus Contracts and Endorsements6
 
http://www.sec.gov/Archives/edgar/data/946155/000093041304002268/c31392_ex4-a.txt
http://www.sec.gov/Archives/edgar/data/946155/0000950146-96-000627-index.html
http://www.sec.gov/Archives/edgar/data/946155/000093041305003249/c35876_ex4.htm
(B)
Forms of Income-Paying Contracts4
http://www.sec.gov/Archives/edgar/data/946155/0000950146-96-000627-index.html
 (C)
Form of Contract Endorsement for Internal Transfer Limitation7
 
http://www.sec.gov/Archives/edgar/data/946155/000093041310005579/c62766_ex-4c.htm
(D)
Form of Non-ERISA Retirement Choice Plus Contract109
http://www.sec.gov/Archives/edgar/data/946155/000162828017002745/exhibit4d1.htm
http://www.sec.gov/Archives/edgar/data/946155/000162828017002745/exhibit4d2.htm
 (E)
Form of Trust Company Retirement Choice Contract1110
http://www.sec.gov/Archives/edgar/data/946155/000162828017002745/exhibit4e1.htm
http://www.sec.gov/Archives/edgar/data/946155/000162828017002745/exhibit4e2.htm
 (F)
Form of Trust Company Retirement Choice Plus Contract11
http://www.sec.gov/Archives/edgar/data/946155/000162828017002745/exhibit4f1.htm
http://www.sec.gov/Archives/edgar/data/946155/000162828017002745/exhibit4f2.htm
(G)
Form of Income Test Drive Endorsement for Retirement Annuity Contracts. After-Tax Retirement Annuity Contracts, Supplemental Retirement Annuity Contracts and IRA Contracts (including Rollover IRA, Contributory IRA, Roth IRA, OneIRA)12
http://www.sec.gov/Archives/edgar/data/946155/000162828018003214/exhibit4g123117.htm
(H)
Form of Income Test Drive Endorsement for Group Retirement Annuity Certificates, Group Supplemental Retirement Annuity Certificates, Keogh Certificates, Retirement Choice Certificates, Retirement Choice Plus Certificates, Non-ERISA Retirement Choice Plus Certificates, Trust Retirement Choice Certificates, and Trust Retirement Choice Plus Certificates13
http://www.sec.gov/Archives/edgar/data/946155/000162828018003214/exhibit4h123117.htm
(I)
Form of OneIRA Non-Qualified Deferred Annuity Contract (and Rate Schedule)14
http://www.sec.gov/Archives/edgar/data/946155/000162828018003214/exhibit4i123117.htm
(J)
(1) Form of Endorsement to Retirement Choice and Retirement Choice Plus Contracts for Custom Portfolios16
http://www.sec.gov/Archives/edgar/data/946155/000162828019002918/exhibit4j1123118.htm
(2) Form of Endorsement to Retirement Choice and Retirement Choice Plus Certificates for Custom Portfolios17
http://www.sec.gov/Archives/edgar/data/946155/000162828019002918/exhibit4j2123118.htm
(K)
Form of Endorsement to Group Supplemental Retirement Annuity (GSRA) Certificate18
http://www.sec.gov/Archives/edgar/data/946155/000162828019002918/exhibit4k123118.htm
(10)(A)
Amended and Restated Independent Fiduciary Letter Agreement, dated as of February 2, 2015,21, 2018, between TIAA, on behalf of the Registrant, and RERC, LLC815
http://www.sec.gov/Archives/edgar/data/946155/000162828018002605/ifsrercsigned20180223.htm
 (B)
Custodian Agreement, dated as of March 3, 2008, by and between TIAA, on behalf of the Registrant, and State Street Bank and Trust Company, N.A.98
http://www.sec.gov/Archives/edgar/data/946155/000093041313001652/c71842_ex10-b.htm

(31)
 
Rule 13(a)-15(e)/ Rule 13a-15(e)/15d-15(e) Certifications*
(32)
 
Section 1350 Certifications*
(101) The following financial information from the Quarterly Report on Form 10-Q for the period ended September 30, 2017,March 31, 2019 (Unaudited), formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Assets and Liabilities as of March 31, 2019 (Unaudited), (ii) the Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018 (Unaudited) , (iii) the Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2019 and 2018 (Unaudited), (iv) the Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018 (Unaudited), and (v) the Notes to the Consolidated Financial Statements.Statements (Unaudited).**
*Filed herewith.
**Furnished electronically herewith.
(1) 
Previously filed and incorporated herein by reference to Exhibit 1(A) to the Account’s Registration Statement on Form S-1, filed with the Commission on March 15, 2013 (File No. 333-187309).
(2) 
Previously filed and incorporated herein by reference to Exhibit 3(A) to the Account’s Registration Statement on Form S-1, filed with the Commission on April 22, 2015 (File No. 333-202583).
(3) 
Previously filed and incorporated herein by reference to Exhibit 3(B) to the Account’s Registration Statement on Form S-1, filed with the Commission on April 22, 2015 (File No. 333-202583).
(4) 
Previously filed and incorporated herein by reference to the Account’s Post-Effective Amendment No. 2 to the Registration Statement on Form S-1, filed with the Commission on April 30, 1996 (File No. 33-92990).
(5) 
Previously filed and incorporated herein by reference to Exhibit 4(A) to the Account’s Post-Effective Amendment No. 1 to the Registration Statement on Form S-1, filed with the Commission on May 2, 2005 (File No. 333-121493).
(6) 
Previously filed and incorporated herein by reference to the Account’s Pre-Effective Amendment No. 1 to the Registration Statement on Form S-1, filed with the Commission on April 29, 2004 (File No. 333-113602).
(7) 
Previously filed and incorporated by reference to Exhibit 4(C) to the Account’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 and filed with the Commission on November 12, 2010 (File No. 33-92990).
(8) 
Previously filed and incorporated herein by reference to Exhibit 10.110(B) to the Account’s Current Report on Form 8-K, filed with the Commission on February 6, 2015 (File No. 33-92990).
(9)
Previously filed and incorporated herein by reference to Exhibit 10(D) to the Account’sAccount's Annual Report on Form 10-K for the fiscal year ended December 31, 2012 and filed with the Commission on March 14, 2013 (File No. 33-92990).
(10)(9) 
Previously filed and incorporated herein by reference to Exhibit 4(D)(1) and 4(D)(2) to the Account’s Registration Statement on Form S-1, filed with the Commission on March 21, 2017 (File No. 333-216849).
(11)(10) 
Previously filed and incorporated herein by reference to Exhibit 4(E)(1) and 4(E)(2) to the Account’s Registration Statement on Form S-1, filed with the Commission on March 21, 2017 (File No. 333-216849).
(12)(11) 
Previously filed and incorporated herein by reference to Exhibit 4(F)(1) and 4(F)(2) to the Account’s Registration Statement on Form S-1, filed with the Commission on March 21, 2017 (File No. 333-216849).
(12)
Previously filed and incorporated herein by reference to Exhibit 4(G) to the Account’s Annual Report on Form 10-K, filed with the Commission on March 15, 2018 (File No. 333-216849).
(13)
Previously filed and incorporated herein by reference to Exhibit 4(H) to the Account’s Annual Report on Form 10-K, filed with the Commission on March 15, 2018 (File No. 333-216849).
(14)
Previously filed and incorporated herein by reference to Exhibit 4(I) to the Account’s Annual Report on Form 10-K, filed with the Commission on March 15, 2018 (File No. 333-216849).
(15)
Previously filed and incorporated herein by reference to Exhibit 10.1 to the Account’s Current Report on Form 8-K, filed with the Commission on March 1, 2018 (File No. 33-92990).
(16)
Previously filed and incorporated herein by reference to Exhibit 4(J)(1) to the Account’s Current Report on Form 10-K, filed with the Commission on March 14, 2019 (File No. 33-92990).
(17)
Previously filed and incorporated herein by reference to Exhibit 4(J)(2) to the Account’s Current Report on Form 10-K, filed with the Commission on March 14, 2019 (File No. 33-92990).
(18)
Previously filed and incorporated herein by reference to Exhibit 4(K) to the Account’s Current Report on Form 10-K, filed with the Commission on March 14, 2019 (File No. 33-92990).




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant, TIAA Real Estate Account, has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized, in New York, New York, on the 7th day of November, 2017.May, 2019.
 TIAA REAL ESTATE ACCOUNT
    
 By: TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
    
NovemberMay 7, 20172019By: /s/ Carol W. Deckbar
   
Carol W. Deckbar
Executive Vice President, Institutional Investment & Endowment Services
Teachers Insurance and Annuity Association of America and Chief Product Officer of TIAA Financial Solutions Product Group
(Principal Executive Officer)
    
NovemberMay 7, 20172019By: /s/ Virginia M. WilsonOluseun S. Salami
   
Virginia M. WilsonOluseun S. Salami
Senior Executive Vice President, Chief Accounting Officer and Chief Financial Officer,
Corporate Controller of Teachers Insurance and Annuity Association of America
(Principal (Principal Financial and Accounting Officer)


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