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, 2020
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; 333-216849333-230322

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 Registrantregistrant (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 Registrantregistrant 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
24
30
 Item 2.Management's Discussion and Analysis of the Account's Financial Condition and Results of Operations39
46
 Item 3.Quantitative and Qualitative Disclosures about Market Risk59
66
 Item 4.Controls and Procedures60
68
Part IIOther Information 
 Item 1.Legal Proceedings61
69
 Item 1A.Risk Factors61
69
 Item 2.Unregistered Sales of Equity Securities and Use of Proceeds61
72
 Item 3.Defaults Upon Senior Securities61
72
 Item 4.Mine Safety Disclosures61
72
 Item 5.Other Information61
72
 Item 6.Exhibits62
73
Signatures 63
75





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 20162020 2019
(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: $14,098.9 and $13,048.5)		$17,082.1
 $15,835.0
 
Real estate joint ventures and funds
(cost: $5,042.0 and $6,244.4)
6,591.5
 7,516.0
 
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: $800.4 and $686.0)
724.7
(1) 
 825.7
(1) 
Other
(cost: $1,354.4 and $4,144.7)
1,347.3
 4,150.2
 
Loans receivable
(principal: $1,574.5 and $1,504.5)
1,562.5
 1,503.1
 
Loans receivable with related parties
(principal: $69.3 and $69.3)		68.5
  69.0
 
Total investments
(cost: $22,939.5 and $25,697.4)
27,376.6
  29,899.0
 
Cash and cash equivalents6.8
 3.0
 1,354.1
 15.1
 
Due from investment manager4.8
 5.9
 —
 5.5
 
Receivable for securities sold363.5
 —
 
Other227.6
(2) 
 332.6
(2) 
270.2
(2) 
 290.3
(2) 
TOTAL ASSETS27,422.7
  26,985.2
 29,364.4
  30,209.9
 
LIABILITIES        
Mortgage loans payable, at fair value
(principal outstanding: $2,284.8 and $2,316.5)
2,311.0
 2,332.1
 
Loans payable, at fair value
(principal outstanding: $2,624.3 and $2,338.0)
2,605.6
 2,365.0
 
Line of credit, at fair value190.0
 250.0
 
Due to investment manager19.0
 —
 
Accrued real estate property expenses211.7
 202.2
 242.4
 225.9
 
Payable for collateral for securities loaned5.6
 93.0
 2.5
 25.7
 
Payable for securities purchased251.6
 —
 
Other54.6
 53.2
 38.2
 35.4
 
TOTAL LIABILITIES2,582.9
  2,680.5
 3,349.3
  2,902.0
 
COMMITMENTS AND CONTINGENCIES
 
 
 
 
NET ASSETS        
Accumulation Fund24,333.5
 23,813.5
 25,466.4
 26,759.1
 
Annuity Fund506.3
 491.2
 548.7
 548.8
 
TOTAL NET ASSETS$24,839.8
  $24,304.7
 $26,015.1
  $27,307.9
 
NUMBER OF ACCUMULATION UNITS OUTSTANDING61.9
  62.4
 57.8
  60.8
 
NET ASSET VALUE, PER ACCUMULATION UNIT$393.257
  $381.636
 $440.892
  $440.422
 
(1) Includes securities loaned of $5.5$2.4 million at September 30, 2017March 31, 2020 and $91.2$25.2 million at December 31, 2016.2019.
(2) Includes cash collateral for securities loaned of $5.6$2.5 million at September 30, 2017March 31, 2020 and $93.0$25.7 million at December 31, 2016.2019.

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 20162020 2019
INVESTMENT INCOME          
Real estate income, net:          
Rental income$267.9
 $257.4
 $791.6
 $755.9
$299.7
 $262.6
Real estate property level expenses and taxes:          
Operating expenses56.9
 54.8
 164.9
 163.5
69.2
 59.2
Real estate taxes43.2
 40.4
 127.3
 116.9
50.1
 46.6
Interest expense22.5
 22.4
 67.3
 63.3
24.3
 25.7
Total real estate property level expenses and taxes122.6
 117.6
 359.5
 343.7
143.6
 131.5
Real estate income, net145.3
 139.8
 432.1
 412.2
156.1
 131.1
Income from real estate joint ventures and limited partnerships60.9
 33.5
 154.3
 111.8
Income from real estate joint ventures and funds55.2
 49.7
Interest15.9
 6.3
 37.6
 17.8
42.5
 41.1
Dividends7.9
 9.2
 15.7
 19.9
4.5
 4.4
TOTAL INVESTMENT INCOME230.0
 188.8
 639.7
 561.7
258.3
 226.3
Expenses:          
Investment management charges15.5
 17.6
 52.9
 51.8
17.2
 19.5
Administrative charges14.7
 17.0
 46.0
 48.4
11.7
 13.3
Distribution charges6.4
 7.2
 19.6
 21.3
7.6
 7.9
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
16.2
 12.9
TOTAL EXPENSES49.4
 52.3
 153.9
 150.5
53.0
 53.9
INVESTMENT INCOME, NET180.6
 136.5
 485.8
 411.2
205.3
 172.4
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND MORTGAGE LOANS PAYABLE       
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND LOANS PAYABLE   
Net realized gain (loss) on investments:          
Real estate properties75.2
 16.4
 58.4
 26.5
(59.2) —
Real estate joint ventures and limited partnerships(8.6) 0.2
 (8.6) 0.4
Real estate joint ventures and funds(460.3) 5.1
Marketable securities2.6
 3.1
 15.3
 21.6
35.2
 141.0
Net realized gain on investments69.2
 19.7
 65.1
 48.5
Loans receivable(1.6) —
Net realized (loss) gain on investments(485.9) 146.1
Net change in unrealized appreciation (depreciation) on:          
Real estate properties(9.4) 36.9
 74.8
 242.2
196.7
 73.9
Real estate joint ventures and limited partnerships26.9
 24.3
 88.7
 152.3
Real estate joint ventures and funds300.5
 2.5
Marketable securities2.2
 (26.0) 34.2
 84.2
(230.8) 76.3
Loans receivable1.4
 0.1
 1.4
 0.1
(10.6) 1.2
Mortgage loans payable(4.1) (29.1) (10.6) (54.8)
Net change in unrealized appreciation on
investments and mortgage loans payable
17.0
 6.2
 188.5
 424.0
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND MORTGAGE LOANS PAYABLE86.2
 25.9
 253.6
 472.5
Loans receivable with related parties(0.5) —
Loans payable45.7
 (29.6)
Net change in unrealized appreciation on
investments and loans payable
301.0
 124.3
NET REALIZED AND UNREALIZED (LOSS) GAIN ON INVESTMENTS AND LOANS PAYABLE(184.9) 270.4
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS$266.8
 $162.4
 $739.4
 $883.7
$20.4
 $442.8


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 20162020 2019
FROM OPERATIONS          
Investment income, net$180.6
 $136.5
 $485.8
 $411.2
$205.3
 $172.4
Net realized gain on investments69.2
 19.7
 65.1
 48.5
Net change in unrealized appreciation on investments and mortgage loans payable17.0
 6.2
 188.5
 424.0
Net realized (loss) gain on investments(485.9) 146.1
Net change in unrealized appreciation on investments and loans payable301.0
 124.3
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS
266.8
 162.4
 739.4
 883.7
20.4
 442.8
FROM PARTICIPANT TRANSACTIONS          
Premiums552.4
 757.8
 1,980.6
 2,349.2
702.6
 677.4
Annuity payments(10.8) (10.3) (32.3) (30.3)(12.3) (11.5)
Withdrawals and death benefits(777.5) (576.6) (2,152.6) (1,551.1)(2,003.5) (629.6)
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM PARTICIPANT TRANSACTIONS
(235.9) 170.9
 (204.3) 767.8
NET INCREASE IN NET ASSETS30.9
 333.3
 535.1
 1,651.5
NET (DECREASE) INCREASE IN NET ASSETS
RESULTING FROM PARTICIPANT TRANSACTIONS
(1,313.2) 36.3
NET (DECREASE) INCREASE IN NET ASSETS(1,292.8) 479.1
NET ASSETS          
Beginning of period24,808.9
 23,678.2
 24,304.7
 22,360.0
27,307.9
 25,842.6
End of period$24,839.8
 $24,011.5
 $24,839.8
 $24,011.5
$26,015.1
 $26,321.7




























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 20162020 2019
CASH FLOWS FROM OPERATING ACTIVITIES      
Net increase in net assets resulting from operations$739.4
 $883.7
$20.4
 $442.8
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)
Net change in unrealized appreciation on investments
and mortgage loans payable
(188.5) (424.0)
Net realized gain (loss) on investments485.9
 (146.1)
Net change in unrealized appreciation on investments
and loans payable
(301.0) (124.3)
Purchase of real estate properties(298.4) (378.0)(1,097.7) (301.0)
Capital improvements on real estate properties(95.0) (125.2)(68.5) (54.7)
Proceeds from sale of real estate properties340.7
 152.9
347.6
 3.1
Purchases of long term investments(342.5) (1,134.0)(701.7) (105.6)
Proceeds from long term investments376.3
 51.6
1,385.8
 542.5
Increase in loans receivable(1.7) (69.0)
Increase in other investments(239.3) (203.8)
Purchases and originations of loans receivable(107.7) (74.4)
Proceeds from sales of loans receivable28.0
 —
Proceeds from payoffs of loans receivable11.4
 21.3
Decrease (Increase) in other investments2,788.6
 (179.3)
Change in due to (from) investment manager1.1
 (4.9)24.5
 (7.8)
(Increase) decrease in other assets105.0
 (121.4)
Increase (decrease) in other liabilities(74.5) 141.3
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES257.5
 (1,279.3)
Increase in receivable for securities sold(363.5) —
Increase in payable for securities purchased251.6
 —
Decrease in other assets16.3
 79.6
Decrease in other liabilities(8.3) (94.2)
NET CASH PROVIDED BY OPERATING ACTIVITIES2,711.7
 1.9
CASH FLOWS FROM FINANCING ACTIVITIES      
Mortgage loan proceeds received—
 563.5
Proceeds from line of credit400.0
 —
Payments on line of credit(460.0) —
Payments of mortgage loans(49.4) (34.7)(3.3) (4.7)
Premiums1,980.6
 2,349.2
702.6
 677.4
Annuity payments(32.3) (30.3)(12.3) (11.5)
Withdrawals and death benefits(2,152.6) (1,551.1)(2,003.5) (629.6)
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES(253.7) 1,296.6
(1,376.5) 31.6
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 INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH1,335.2
 33.5
CASH, CASH EQUIVALENTS AND RESTRICTED CASH   
Beginning of period cash, cash equivalents and restricted cash40.4
 47.3
Net increase in cash, cash equivalents and restricted cash1,335.2
 33.5
End of period cash, cash equivalents and restricted cash$1,375.6
 $80.8
SUPPLEMENTAL DISCLOSURES:      
Cash paid for interest$67.3
 $61.6
$24.3
 $26.2
Debt assumed as part of real estate acquisition$17.7
 $—
Mortgage loan assumed as part of real estate acquisition$289.6
 $—
Loan receivable converted to equity in real estate investment$(3.3) $—

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,
 2020 2019
Cash and cash equivalents$1,354.1
 $38.1
Restricted cash(1)
21.5
 42.7
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH$1,375.6
 $80.8








(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,funds, 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, 2020 and for the three months ended March 31, 2020 and 2019 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, 2019.
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.Companies ("ASC 946"). 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 typicallysimilarly 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 fiduciaryIndependent Fiduciary, RERC, LLC (the "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.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 fiduciaryIndependent Fiduciary (the independent fiduciaryIndependent 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,Independent Fiduciary, which will make a final determination on the matter (which may include ordering a subsequent independent appraisal).


The independent fiduciary, RERC, LLC, has beenIndependent Fiduciary was 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 fiduciaryIndependent 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 fiduciaryIndependent 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 fiduciaryIndependent 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 fiduciaryIndependent 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 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 PartnershipsFunds—Limited partnershipReal estate fund interests are stated at the fair value of the Account’s ownership in
the partnership which are recorded based uponreal estate fund. 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 determines whether the net asset values provided are an appropriate representation of the limited partnerships as determined from the financial statementsfair value of the limited partnerships when received byAccount's interests in the Account. Prior to the receiptreal estate funds and makes valuation adjustments as necessary. Valuation 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 faith by managementreal estate funds proceeds under the direction of the Investment Committee of the Board and 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 are not readily available, 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-valueloan- to-value ratio and the cash flow of the underlying collateral) and the credit quality of the counterparty. The independent

fiduciaryIndependent 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, including the Account's
line of credit, are stated at fair value. 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 quarterly estimated
based on market factors, such as market interest rates and spreads foron 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), 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 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 partnershipsfunds 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 PartnershipsReal Estate Funds—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”).funds. 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 partnershipsfunds 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 partnershipsreal estate funds as determined from the financial statements of the limited partnershipsreal estate funds when received by the Account. Prior to the receipt of the financial statements from the limited partnerships,real estate funds, 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 the 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 byaccrual 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 real estate joint venture or limited partnership.fund. 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, Real Estate Funds 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 PartnershipsReal Estate Funds 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 Variable Interest Entities: Variable interests are financial relationships which expose a reporting entity to the risks and rewards of variability in the entity's assets and operations. When variable interests exist, they are subject to evaluation under the variable interest entity ("VIE") model if any one of the following four characteristics are present: (a) the entity is insufficiently capitalized; (b) the equity holders do not have power to control the activities that most significantly impact the entity's financial performance; (c) the voting rights of the equity holders are not proportionate
to their economic interests; or (d) the equity holders are not exposed to the residual losses or benefits that would normally be associated with equity interests.
ASC 810 - Consolidation prohibits a reporting entity that qualifies as an investment company under ASC 946from Securities Lending:consolidating an investee that is not an investment company. This scope exception does not apply to situations in which an investment company has an interest in another investment company. Accordingly, the Account's investments in other investment companies (e.g., real estate funds) are subject to evaluation under the VIE model.
The Account may lend securities to qualified borrowers to generate additional income. When loaning securities,consolidates a VIE if it concludes that the Account retainsis the primary beneficiary of the VIE. The primary beneficiary has both: (i) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance; and (ii) the obligation to absorb losses or the right to receive benefits of owningthat could potentially be significant to the securities, including the economic equivalent of dividends or interest generatedVIE. The following activities have been identified by the securities. Cash collateral received for securitiesAccount as having the most significant impact on loan is maintained exclusively in an interest-bearing deposit account. All income generateda VIE's economic performance:
control over the ability to acquire and dispose of investments held by the securities lending program is reflected within interest income on entity;
the consolidated statementsability to kick out a managing entity without cause, either unilaterally or with a group of operations.equity investors;
the ability to modify the power of the managing entity without its consent; and
control over the day-to-day decision making of the underlying investments
An equity investor in a VIE may not actively be involved in the significant activities (i.e., it may cede day-to-day decision making to a third party), but if the equity investor has approval rights or some other mechanism to retain ultimate control, the equity investor with these rights would be concluded as having power over the activity. On a quarterly basis, the Account evaluates all involvements with VIEs, including any changes to governing powers of continuing VIEs. The consolidation status of VIEs may change as a result of such continued evaluation. At the reporting date, the Account was not deemed to be the primary beneficiary of any VIEs. Refer to Note 7—Investments in Real Estate Funds for additional detail.

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 Section 817 of the Internal Revenue Code Section 817,of 1986, as amended, 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 for 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—Mortgage 9—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.
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.
Accounting Pronouncement: In January 2016,March 2020, 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 aspects2020-04, Facilitation of the recognition, measurement, presentation,Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). The guidance provides optional expedients and disclosure of financial instruments. These amendments are effectiveexceptions for public business entities for fiscal yearsapplying generally accepted accounting principles to contract modifications and interim periods within those fiscal years beginning after December 15,

2017. Management is currently assessinghedging relationships, subject to meeting certain criteria, that reference the impact of ASU 2016-1 on the Account’s Consolidated Financial Statements.
In February 2016, the FASB issued ASU 2016-2 Leases (Topic 842) (“ASU 2016-2”London Interbank Offered Rate ("LIBOR") which will supersede Topic 840, Leases. This ASU applies to all entities that enter into a lease. Lessees will be required to report assets and liabilities that arise from leases. Lessor accounting isor another reference rate expected to remain unchanged except in certain circumstances. This ASUbe discontinued. The guidance is effective for public businessall entities for fiscal years beginning after December 15, 2018, including all interim periods within those fiscal years. Management is currently assessing the impact of ASU 2016-2 on the Account’s Consolidated Financial Statements.
In August 2016, the FASB issued Accounting Standards Update 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 clarifies how to present cash receipts and cash payments for certain activity in 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 2016-18 is effective for annual financial statements issued for fiscal years beginning after December 15, 2017 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. 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 assets as of March 12, 2020 through December 31, 2022. Management does not expect the beginning ofguidance to materially impact the fiscal year of adoption. Management is currently assessing the impact of ASU 2017-05 on the Account’s Consolidated Financial Statements.Account.

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.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”),. Services is a direct wholly-owned subsidiary of TIAA, and is registered with the SEC as a broker-dealer and a registered broker-dealerinvestment adviser and is 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) distributingdistribution 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 charges the Account fees to bear certain mortality and expense risks, and risks with providing the liquidity guarantee (described below). These fees are charged as a percentage of the net assets of the Account. Rates for these fees are established annually.
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. As such, mortality and expense risk expenses are contractual charges for TIAA’s assumption of this risk.
TIAA and Services provide investment management, administrative and distribution services at cost. TIAA and Services receive payments fromprovides the Account on a daily basis according to formulas established each year and adjusted periodically with the objective of keeping the payments as close as possible to the Account’s expenses actually incurred. Any differences between actual expenses and the amounts paid by the Account are adjusted quarterly.
TIAA also provides a liquidity guarantee toenabling the Account for a fee, to ensure that sufficienthave funds are available to meet participant redemption, transfer or cash withdrawal requests. The liquidity guarantee is required by the New York State Department of Financial Services and is subject to a prohibited transaction exemption that the Account received in 1996 (96-76) from the U.S. Department of Labor (the “PTE 96-76”). The Account pays TIAA for the risk associated with providing the liquidity guarantee through a daily deduction from the Account’s net assets. Whether the liquidity guarantee is exercised is based on the cash level of the Account from time to time, as well as recent participant withdrawal activity and the Account’s expected working capital, debt service and cash needs, and subject to the oversight of the Independent Fiduciary. If the Account cannot fund participant withdrawal or redemption requests in the event thatfrom the Account’s own cash flowsflow and liquid investments, are insufficient toTIAA will fund such requests. TIAA ensures sufficient funds are available for such transfer and withdrawal requeststhem by purchasing accumulation units ofissued by the Account.
To the extentAccount (accumulation units that are purchased by TIAA ownsare generally referred to as “liquidity units”). TIAA guarantees that participants can redeem their accumulation units issued pursuant toat the liquidity guarantee, the independent fiduciary monitors and oversees, among other things, TIAA’s ownership interestaccumulation unit value next determined after their transfer or cash withdrawal request is received in good order. Liquidity units owned by TIAA are valued in the Account and may require TIAA to eventually redeem some of itssame manner as accumulation units particularly whenowned by the Account has un-invested cash or liquid investments available. TIAA also receives a fee for assuming certain mortality and expense risks.Account’s participants.
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.Highlights.


The Account has loans receivable outstanding with related parties as of March 31, 2020. The loans are with joint ventures in which the Account also has an equity interest. The loans are held at fair value in accordance with the valuation policies described in Note 1—Organization and Significant Accounting Policies. The following table presents the key terms of the loans as of the reporting date:
  Related Party Equity Ownership Interest Interest Rate Maturity Date Fair Value at
Principal     March 31, 2020 December 31, 2019
2020 2019      
            (Unaudited)  
36.5
 36.5
 MRA Hub 34 Holding, LLC 95.00% 2.50% + LIBOR 9/1/2022 $36.5
 $36.5
32.8
 32.8
 THP Student Housing, LLC 97.00% 3.200% 9/1/2024 32.0
 32.5
TOTAL LOANS RECEIVABLE WITH RELATED PARTIES $68.5
 $69.0
Note 3—CreditConcentrations of Risk Concentrations
The outbreak of the novel coronavirus (commonly known as “COVID-19”) and the subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the quarter ended March 31, 2020. The worldwide spread of the COVID-19 pandemic has created significant uncertainty in the global economy. At this time the Account reasonably expects tenants will request certain rent relief and lease modifications as a result of the pandemic; however, such requests have not been significant as of March 31, 2020. The duration and extent of COVID-19 over the long-term cannot be reasonably estimated at this time. The ultimate impact of the COVID-19 pandemic and the extent to which the COVID-19 pandemic impacts the Account’s business, results of operations, investments, and cash flows will depend on future developments, which are highly uncertain and difficult to predict.
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, 2020, the Account hashad no significant concentrations of tenants as no single tenant hashad annual contract rent that makesmade up more than 3%4% 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, 2020 (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%13.2% 18.7% 5.3% —% 37.2%
Apartment8.8% 8.1% 4.0% 0.8% 21.7%10.0% 6.6% 8.1% 1.0% 25.7%
Retail7.7% 3.0% 7.7% 0.5% 18.9%6.8% 3.9% 8.0% 0.9% 19.6%
Industrial7.1% 2.0% 4.1% 0.8% 14.0%9.1% 1.6% 4.6% 0.5% 15.8%
Other(2)
0.3% 2.5% 0.1% 0.1% 3.0%0.6% 0.5% 0.6% —% 1.7%
Total40.0% 36.3% 21.5% 2.2% 100.0%39.7% 31.3% 26.6% 2.4% 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 investments, a hotel investment and a fee interest encumbered by a ground lease real estate investment.land.
Properties in the “West” region are located in: AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA, WYWY.
Properties in the “East” region are located in: CT, DC, DE, KY, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT, WVWV.
Properties in the “South” region are located in: AL, AR, FL, GA, LA, MS, OK, TN, TXTX.
Properties in the “Midwest” region are located in: IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WIWI.

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 2051. 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, 2020 (unaudited) and December 31, 2019 are as follows (millions):
  As of
Years Ended March 31, 2020 December 31, 2019
2020 $486.2
(1) 
$550.4
2021 593.9
 505.0
2022 512.9
 442.1
2023 437.7
 381.2
2024 360.6
 316.6
Thereafter 1,209.5
 1,078.4
Total $3,600.8
 $3,273.7
(1) Representative of minimum rents owed for the remaining months of the calendar year ending December 31, 2020.
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. The fair value of right-of-use assets and leases liabilities related to ground leases are reflected on the balance sheet within other assets and other liabilities, respectively.
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):
  As of
  March 31, 2020 December 31, 2019
  (Unaudited)  
Assets:    
  Right-of-use assets, at fair value $25.8
 $25.7
Liabilities:    
  Ground lease liabilities, at fair value $25.8
 $25.7
  As of
  March 31, 2020 December 31, 2019
Key Terms: (Unaudited)  
  Weighted-average remaining lease term (years) 83.9
 84.4
  Weighted-average discount rate(1)
 6.16% 6.15%
(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, 2020, operating lease costs related to ground leases were $0.4 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):
  As of
Years Ended March 31, 2020 December 31, 2019
  (Unaudited)  
2020(1)
 $0.9
(1) 
$1.2
2021 1.2
 1.2
2022 1.2
 1.2
2023 1.2
 1.2
2024 1.3
 1.3
Thereafter 375.9
 375.9
Total $381.7
 $382.0
(1) Representative of minimum rents owed for the remaining months of the calendar year ending December 31, 2020.
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 limited partnershipReal estate fund 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 real estate funds.
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, a 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;basis, and 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, 2020 (unaudited) and December 31, 2016,2019, 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, 2020
Real estate properties $—
 $—
 $15,654.2
 $—
 $15,654.2
 $—
 $—
 $17,082.1
 $—
 $17,082.1
Real estate joint ventures —
 —
 5,675.4
 —
 5,675.4
 —
 —
 6,237.4
 —
 6,237.4
Limited partnerships —
 —
 —
 140.7
 140.7
Real estate funds —
 —
 —
 354.1
 354.1
Marketable securities:                    
Real estate-related 1,121.0
 —
 —
 —
 1,121.0
 724.7
 —
 —
 —
 724.7
Government agency notes —
 3,276.1
 —
 —
 3,276.1
 —
 62.9
 —
 —
 62.9
United States Treasury securities —
 1,017.3
 —
 —
 1,017.3
 —
 749.9
 —
 —
 749.9
Loans receivable —
 —
 298.8
 —
 298.8
Total Investments at
September 30, 2017		 $1,121.0
 $4,293.4
 $21,628.4
 $140.7
 $27,183.5
Mortgage loans payable $—
 $—
 $(2,311.0) $—
 $(2,311.0)
Corporate bonds —
 526.7
 —
 —
 526.7
Municipal bonds —
 7.8
 —
 —
 7.8
Loans receivable(1)
 —
 —
 1,631.0
 —
 1,631.0
Total Investments at
March 31, 2020		 $724.7
 $1,347.3
 $24,950.5
 $354.1
 $27,376.6
Loans payable $—
 $—
 $(2,605.6) $—
 $(2,605.6)
Line of credit $—
 $—
 $(190.0) $—
 $(190.0)
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, 2019
Real estate properties $—
 $—
 $15,452.8
 $—
 $15,452.8
 $—
 $—
 $15,835.0
 $—
 $15,835.0
Real estate joint ventures —
 —
 5,622.4
 —
 5,622.4
 —
 —
 7,204.2
 —
 7,204.2
Limited partnerships —
 —
 —
 137.5
 137.5
Real estate funds —
 —
 —
 311.8
 311.8
Marketable securities:                    
Real estate-related 1,081.5
 —
 —
 —
 1,081.5
 825.7
 —
 —
 —
 825.7
Government agency notes —
 2,308.9
 —
 —
 2,308.9
 —
 259.6
 —
 —
 259.6
United States Treasury securities —
 1,744.9
 —
 —
 1,744.9
 —
 2,589.1
 —
 —
 2,589.1
Loans receivable —
 —
 295.7
 —
 295.7
Total Investments at December 31, 2016 $1,081.5
 $4,053.8
 $21,370.9
 $137.5
 $26,643.7
Mortgage loans payable $—
 $—
 $(2,332.1) $—
 $(2,332.1)
Corporate bonds —
 1,268.3
 —
 —
 1,268.3
Municipal bonds —
 33.2
 —
 —
 33.2
Loans receivable(1)
 —
 —
 1,572.1
 —
 1,572.1
Total Investments at December 31, 2019 $825.7
 $4,150.2
 $24,611.3
 $311.8
 $29,899.0
Loans payable $—
 $—
 $(2,365.0) $—
 $(2,365.0)
Line of credit $—
 $—
 $(250.0) $—
 $(250.0)

(1) Amount shown is reflective of loans receivable and loans receivable with related parties.

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, 2020 and 2016 (in millions,2019 (millions, unaudited):
 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(3)
 Total
Level 3
Investments		 Loans
Payable		 Line of Credit
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)
For the three months ended March 31, 2020            
Beginning balance January 1, 2020 $15,835.0
 $7,204.2
 $1,572.1
 $24,611.3
 $(2,365.0) $(250.0)
Total realized and unrealized gains (losses) included in changes in net assets 65.8
 17.6
 1.4
 84.8
 (4.1) 137.5
 (156.4) (12.7) (31.6) 45.7
 —
Purchases(1)
 317.1
 13.1
 0.1
 330.3
 (17.7) 1,457.2
 20.6
 107.7
 1,585.5
 (289.6) (400.0)
Sales (225.3) —
 —
 (225.3) —
 (347.6) —
 —
 (347.6) —
 —
Settlements(2)
 —
 (302.1) —
 (302.1) 0.9
 —
 (831.0) (36.1) (867.1) 3.3
 460.0
Ending balance September 30, 2017 $15,654.2
 $5,675.4
 $298.8
 $21,628.4
 $(2,311.0)
Ending balance March 31, 2020 $17,082.1
 $6,237.4
 $1,631.0
 $24,950.5
 $(2,605.6) $(190.0)
  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)
Total realized and unrealized gains (losses) included in changes in net assets 133.2
 80.4
 1.4
 215.0
 (10.6)
    Purchases(1)
 408.9
 275.6
 1.7
 686.2
 (17.7)
    Sales (340.7) —
 —
 (340.7) —
    Settlements(2)
 —
 (303.0) —
 (303.0) 49.4
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
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(3)
 Total
Level 3
Investments		 
Loans
Payable		 Line of Credit
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 included in changes in net assets 73.9
 7.1
 1.2
 82.2
 (29.6) —
    Purchases(1)
 366.7
 57.1
 74.4
 498.2
 —
 —
    Sales (3.1) —
 —
 (3.1) —
 —
    Settlements(2)
 —
 (0.4) (21.3) (21.7) 4.7
 —
Ending balance March 31, 2019 $15,968.6
 $6,420.4
 $967.3
 $23,356.3
 $(2,632.9) $—
(1) 
Includes purchases, contributions for joint ventures, capital expenditures, lending for loans receivable and debt assumed as partassumption of a real estate transaction.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.
(3)
Amount shown is reflective of loans receivable and loans receivable with related parties.

The following table shows quantitative information about unobservable inputs related to the Level 3 fair value measurements as of September 30, 2017March 31, 2020 (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% (6.5%8.5% (6.6%)
4.0% - 7.5% (5.5%)
Income Approach—Direct CapitalizationOverall Capitalization Rate3.9% - 7.0% (4.9%)
IndustrialIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.2% - 9.3% (6.7%)
4.3% - 7.3%8.3% (5.4%)
Income Approach—Direct CapitalizationOverall Capitalization Rate3.5% - 7.7% (4.8%)
ApartmentIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.3% - 7.8% (6.4%)
4.3% - 6.8% (5.1%)
Income Approach—Direct CapitalizationOverall Capitalization Rate3.8% - 6.0% (4.6%)
RetailIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.3% - 11.7% (6.7%)
5.0% - 9.4% (5.6%)
Income Approach—Direct CapitalizationOverall Capitalization Rate4.0% - 11.0% (5.1%)
HotelIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		10.3% (10.3%) 7.8% (7.8%)
Income Approach—Direct CapitalizationOverall Capitalization Rate7.8% (7.8%)
Loans PayableOffice and IndustrialDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		31.1% - 59.3% (45.8%)
3.2% - 4.3% (3.8%)
Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk Premium Multiple		31.1% - 59.3% (45.8%)
1.2 - 1.5 (1.3)
ApartmentDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		30.0% - 69.0% (46.6%)
3.1% - 4.1% (3.7%)
Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk Premium Multiple		30.0% - 69.0% (46.6%)
1.2 - 1.6 (1.3)
RetailDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		37.1% - 63.8% (44.2%)
3.1% - 4.5% (3.9%)
Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk Premium Multiple		37.1% - 63.8% (44.2%)
1.2 - 1.5 (1.3)
Loans Receivable, including those with related partiesApartment, Hotel, Industrial, Office, Retail and StorageDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		30.9% - 90.2% (73.0%)
3.1% - 10.3% (6.0%)





The following table shows quantitative information about unobservable inputs related to the Level 3 fair value measurements as of March 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% - 8.6% (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		5.5%5.3% - 8.5% (6.6%9.3% (6.8%)
4.8%4.4% - 8.3% (5.5%)
  Income Approach—Direct CapitalizationOverall Capitalization Rate4.0% - 7.5%7.8% (4.9%)
 ApartmentIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.0%5.5% - 8.0% (6.1%7.8% (6.5%)
3.5%3.8% - 6.5% (4.8%6.8% (5.0%)
  Income Approach—Direct CapitalizationOverall Capitalization Rate3.3% - 6.0% (4.3%(4.5%)
 RetailIncome Approach—Discounted Cash FlowDiscount Rate
Terminal Capitalization Rate		5.0% - 10.4%10.7% (6.4%)
4.3% - 8.8% (5.2%(5.3%)
  Income Approach—Direct CapitalizationOverall Capitalization Rate3.9%3.3% - 8.8% (4.6%10.5% (4.7%)
Mortgage Loans PayableOffice and IndustrialDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		38.0%36.0% - 70.0% (44.0%62.4% (47.1%)
3.3%3.7% - 5.2% (3.7%5.5% (4.2%)
  Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk
Premium Multiple		38.0%36.0% - 70.0% (44.0%62.4% (47.1%)
1.2 - 1.61.4 (1.3)
 ApartmentDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		28.1%31.1% - 65.6% (41.2%62.3% (48.0%)
2.8%3.5% - 3.6% (3.2%4.2% (4.0%)
  Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk
Premium Multiple		28.1%31.1% - 65.6% (41.2%62.3% (48.0%)
1.11.2 - 1.51.4 (1.3)
 RetailDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		18.0%31.9% - 56.2% (32.9%55.9% (39.5%)
2.8%4.0% - 4.3% (3.6%4.9% (4.2%)
  Net Present ValueLoan to Value Ratio
Weighted Average Cost of Capital Risk
Premium Multiple		18.0%31.9% - 56.2% (32.9%55.9% (39.5%)
1.11.2 - 1.41.3 (1.2)
Loans ReceivableOffice, Retail and StorageDiscounted Cash FlowLoan to Value Ratio
Equivalency Rate		60.1%70.8% - 74.5% (73.9%79.2% (75.6%)
4.2%6.0% - 8.3% (6.2%(7.1%)

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, 2020 and 2016,2019, 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)
 
Real Estate
Properties
 
Real Estate
Joint
Ventures
 
Loans
Receivable(1)
 
Total
Level 3
Investments
 

Loans
Payable
For the three months ended March 31, 2020$147.7
 $(62.6) $(11.1) $74.0
 $45.7
For the three months ended March 31, 2019$73.9
 $2.5
 $1.2
 $77.6
 $(29.6)
As(1) Amount shown is reflective of September 30, 2017, two of the limited partnership investments were in dissolution. Colony Realty Partners LP began liquidation in May 2014,loans receivable and loans receivable 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.related parties.
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, 2020, the Account held investments in joint ventures with ownership interest percentages that ranged from 33.3% to 97.5%98.0%. 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 (millions, unaudited):
 For the Three Months Ended March 31,
 2020 2019
Operating Revenue and Expenses   
Revenues$285.5
 $266.1
Expenses154.6
 145.3
Excess of revenues over expenses$130.9
 $120.8
Note 7—Investments in Real Estate Funds
The Account has ownership interests in real estate funds (each a "Fund", and collectively the "Funds"). The Funds are setup as limited partnerships or entities similar to a limited partnership, and as such, meet the definition of a VIE as the limited partners collectively lack the power, through voting or similar rights, to direct the activities of the Fund that most significantly impact the Fund's economic performance. Management has determined that the Account is not the primary beneficiary for any of the Funds, as the Account lacks the power to direct the activities of each Fund that most significantly impact the respective Fund's economic performance, and the Account further lacks substantive kick-out rights to remove the entity with these powers. Refer to Note 1—Organization and Significant Accounting Policies for a description of the methodology used to determine the primary beneficiary of a VIE.
No financial support (such as loans or financial guarantees) was provided to the Funds during the three months ended March 31, 2020. The Account is contractually obligated to make additional capital contributions in certain Funds in future years. These commitments are identified in Note 13—Commitments and Contingencies.

The carrying amount and maximum exposure to loss relating to VIEs in which the Company holds a significant variable interest but is not the primary beneficiary and which have not been consolidated were as follows at March 31, 2020 (in millions, unaudited):
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2017 2016 2017 2016
Operating Revenue and Expenses  
    
Revenues$218.0
 $190.5
 $645.0
 $509.4
Expenses108.3
 94.6
 315.0
 259.5
Excess of revenues over expenses$109.7
 $95.9
 $330.0
 $249.9
Fund NameCarrying Amount Maximum Exposure to Loss Liquidity Provisions Investment Strategy
LCS SHIP Venture I, LLC (90.0% Account Interest)$212.8
 $212.8
 Redemptions prohibited prior to liquidation. To invest in senior housing properties.
     Liquidation estimated to begin no earlier than 2025. 
     The Account is permitted to sell or transfer its interest in the fund, subject to consent and approval of the manager. 
SP V - II, LLC (79.2% Account Interest)$28.2
 $28.2
 Redemptions prohibited prior to liquidation. To invest in medical office properties in the U.S.
     Liquidation estimated to begin no earlier than 2022. 
     The Account is permitted to sell or transfer its interest in the fund, subject to consent and approval of the manager. 
Taconic New York City GP Fund, LP (60.0% Account Interest)$29.8
 $29.8
 Redemptions prohibited prior to liquidation. To invest in real estate and real estate-related assets in the New York City metropolitan statistical area ("MSA").
     Liquidation estimated to begin no earlier than 2024. 
     The Account is permitted to sell its interest in the fund, subject to consent and approval of the general partner. 
Veritas - Trophy VI, LLC (92.1% Account Interest)$42.7
 $42.7
 Redemptions prohibited prior to liquidation. To invest in multi-family properties primarily in the San Francisco Bay and Los Angeles MSA.
     The Account is not permitted to sell or transfer its interest in the fund until August 2022. After this date, the Account can sell or transfer its interest in the fund with the consent and approval of the manager. 
      
IDR - Core Property Index Fund, LLC (2.0% Account Interest)$25.0
 $25.0
 Redemptions are permitted for a full calendar quarter and upon at least 90 days prior written notice, subject to fund availability. To invest primarily in open-ended funds that fall within the NFI-ODCE Index and are actively managed.
      
     The Account is permitted to sell its interest in the fund, subject to consent and approval of the manager. 
Grubb Southeast Real Estate Fund VI, LLC (66.7% Account Interest)$13.4
 $13.4
 Redemptions prohibited prior to liquidation. 
To acquire office investments across the Southeast.

     Liquidation estimated to begin no earlier than 2026. 
     The Account is not permitted to sell or transfer its interest in the fund until June 2021. After this date, the Account can sell or transfer its interest in the fund with the consent and approval of the manager. 
JCR Capital - REA Preferred Equity Parallel Fund (49.2% Account Interest)$2.2
 $2.2
 Redemptions prohibited prior to liquidation. To invest primarily in multi-family properties.
     Liquidation estimated to begin no earlier than 2026. 
     The Account is prohibited from transferring its interest in the fund without consent by the general partner, which can be withheld in their sole discretion 
      
Total$354.1
 $354.1
    


Note 6—Mortgage 8—Loans Receivable
The Account’s loan receivable portfolio is primarily comprised of mezzanine loans secured by the borrower’s direct and indirect interests 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, 2020 December 31, 2019
  (Unaudited)      
  Principal Outstanding Fair Value % of Fair Value Principal Outstanding Fair Value % of Fair Value
Office(1)
 $825.2
 $821.0
 50.3% $769.3
 $768.0
 48.8%
Industrial 199.6
 199.6
 12.2% 199.6
 199.6
 12.7%
Retail 139.5
 139.5
 8.6% 158.5
 158.5
 10.1%
Storage 82.0
 77.9
 4.8% 82.0
 82.0
 5.2%
Apartments(1)
 262.2
 260.0
 15.9% 229.1
 228.8
 14.6%
Hotel 135.3
 133.0
 8.2% 135.3
 135.2
 8.6%
  $1,643.8
 $1,631.0
 100.0% $1,573.8
 $1,572.1
 100.0%
(1) Includes loans receivable with related parties.
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. Loans that are more than 90 days past due are classified as delinquent and assigned a D rating. Mezzanine debt in good health is typically reflective of a risk rating in the B range (e.g., BBB, BB, or 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.
All borrowers of loans rated B or higher are current as of March 31, 2020. The following table presents the fair values of the Account's loan portfolio based on the risk ratings as of March 31, 2020 (in millions, unaudited), listed in order of the strength of the risk rating (from strongest to weakest):
  Number of Loans Fair Value % of Fair Value
BBB 10 $558.6
 34.2%
BB 8 452.7
 27.8%
B 7 473.3
 29.0%
D 1 77.9
 4.8%
NR(1)
 2 68.5
 4.2%
  28 $1,631.0
 100.0%
(1) "NR" designates loans not assigned an internal credit rating. As of March 31, 2020, this is comprised of two loans with related parties. The loans are collateralized by equity interests in real estate investments.
The following table represents loans receivable in nonaccrual status as of March 31, 2020 (in millions, unaudited). Loans are placed in nonaccrual status when a loan is more than 90 days in arrears or at any point when management believes the full collection of principal is doubtful.
Aging Number of Loans Principal Outstanding Fair Value
Past Due - 90 Days + 1 $82.0
 $77.9


Note 9—Loans Payable
At September 30, 2017,March 31, 2020, the Account had outstanding mortgage loans payable secured by the following properties (in millions)assets (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, 2020 December 31, 2019 
    (Unaudited)    
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 16.2
 16.4
 December 5, 2020
Ascent at Windward 3.51% paid monthly 34.6
 34.6
 January 1, 2022
The Palatine(1)
 4.25% paid monthly 75.5
 75.9
 January 10, 2022
The Forum at Carlsbad(1)
 4.25% paid monthly 85.3
 85.7
 March 1, 2022
Fusion 1560 3.42% paid monthly 37.4
 37.4
 June 10, 2022
San Diego Office Portfolio(5)
 3.62% paid monthly 49.0
 48.2
 August 15, 2022
The Colorado(1)
 3.69% paid monthly 87.7
 88.1
 November 1, 2022
The Legacy at Westwood(1)
 3.69% paid monthly 44.7
 44.9
 November 1, 2022
Regents Court(1)
 3.69% paid monthly 37.9
 38.1
 November 1, 2022
1001 Pennsylvania Avenue(1)
 3.70% paid monthly 319.1
 320.7
 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
Pacific City 2.00% + LIBOR paid monthly 105.0
 —
 October 1, 2023
Birkdale Village(1)
 4.30% paid monthly 78.3
 —
 April 1, 2024
1401 H Street, NW 3.65% paid monthly 115.0
 115.0
 November 5, 2024
The District at La Frontera(1)
 3.84% paid monthly 39.1
 39.3
 December 1, 2024
The District at La Frontera(1)
 4.96% paid monthly 4.3
 4.4
 December 1, 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
Henley at Kingstowne 3.60% paid monthly 71.0
 71.0
 May 1, 2025
32 South State Street 4.48% paid monthly 24.0
 24.0
 June 6, 2025
Vista Station Office Portfolio(1)
 4.00% paid monthly 20.4
 20.5
 July 1, 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
Vista Station Office Portfolio(1)
 4.20% paid monthly 44.5
 44.7
 November 1, 2025
701 Brickell Avenue 3.66% paid monthly 184.0
 184.0
 April 1, 2026
Marketplace at Mill Creek 3.82% paid monthly 39.6
 —
 September 11, 2027
Overlook At King Of Prussia 3.82% paid monthly 40.8
 —
 September 11, 2027
Winslow Bay 3.82% paid monthly 25.8
 —
 September 11, 2027
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   $2,624.3
 $2,338.0
  
Fair Value Adjustment(3)
   (18.7) 27.0
  
Total Loans Payable   $2,605.6
 $2,365.0
  
(1) 
The mortgage is adjusted monthly for principal payments.
(2) 
InterestAll interest rates are fixed.fixed except for Pacific City, which has a variable interest rate based on a spread above the one month London Interbank Offered Rate, as published by ICE Benchmark Administration Limited. 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 mortgageThe loan is comprised of three individual loans, all with equal recourse, interest rate and maturity.collateralized by a mezzanine loan receivable. The principal balancesmezzanine loan receivable is collateralized by loan are $79.0 million, $45.0 million and $13.5 million.the property reflected within the table above.

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 (each a “Lender”, and collectively the "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, 2020, $0.8 millionwas 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 Offered 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: (i) 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; (ii) the Federal Reserve Bank of New York (“NYFRB”) rate as provided by the NYFRB on the date of issuance plus 0.5%; or (iii) 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, 2020, the Account had $190.0 million outstanding on the Line of Credit and was 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, 2020 Years Ended December 31,
2016 2015 20142019 2018 2017
(Unaudited)      (Unaudited)      
Per Accumulation Unit Data:              
Rental income$12.737
 $16.433
 $15.538
 $15.862
$5.054
 $18.165
 $17.757
 $17.132
Real estate property level expenses and taxes5.784
 7.534
 7.319
 7.788
2.422
 8.734
 8.548
 7.722
Real estate income, net6.953
 8.899
 8.219
 8.074
2.632
 9.431
 9.209
 9.410
Other income3.340
 3.594
 3.342
 3.459
1.724
 6.752
 6.162
 4.762
Total income10.293
 12.493
 11.561
 11.533
4.356
 16.183
 15.371
 14.172
Expense charges(1)
2.476
 3.290
 3.092
 2.880
0.894
 3.439
 3.161
 3.318
Investment income, net7.817
 9.203
 8.469
 8.653
3.462
 12.744
 12.210
 10.854
Net realized and unrealized gain on investments and mortgage loans payable3.804
 9.660
 18.911
 27.868
Net realized and unrealized gain on investments and loans payable(2.992) 10.262
 6.877
 5.839
Net increase in Accumulation Unit Value11.621
 18.863
 27.380
 36.521
0.470
 23.006
 19.087
 16.693
Accumulation Unit Value:              
Beginning of period381.636
 362.773
 335.393
 298.872
440.422
 417.416
 398.329
 381.636
End of period$393.257
 $381.636
 $362.773
 $335.393
$440.892
 $440.422
 $417.416
 $398.329
Total return(3)
3.04% 5.20% 8.16% 12.22%0.11% 5.51% 4.79% 4.37%
Ratios to Average net assets(2):
              
Expenses(1)
0.83% 0.86% 0.86% 0.89%0.78% 0.78% 0.76% 0.83%
Investment income, net2.63% 2.41% 2.37% 2.68%3.04% 2.90% 2.95% 2.72%
Portfolio turnover rate(3):
              
Real estate properties(4)
1.6% 1.3% 5.7% 6.5%5.7% 7.8% 11.8% 2.7%
Marketable securities(5)
5.2% 3.5% 10.0% 15.9%74.0% 28.7% 5.1% 5.7%
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)57.8
 60.8
 60.7
 61.3
Net assets end of period (millions)$26,015.1
 $27,307.9
 $25,842.6
 $24,942.6
(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, 2020 are annualized.
(3) 
Percentages for the ninethree months ended September 30, 2017March 31, 2020 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 real estate joint ventureventures and limited partnershipfund 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, 2020 For the Year Ended December 31, 2019
(Unaudited)  (Unaudited)  
Outstanding:      
Beginning of period62.4
 60.4
60.8
 60.7
Credited for premiums5.1
 8.2
1.6
 6.2
Annuity, other periodic payments, withdrawals and death benefits(5.6) (6.2)(4.6) (6.1)
End of period61.9
 62.4
57.8
 60.8
Note 9—13—Commitments and Contingencies
Commitments—TheAs of March 31, 2020 and December 31, 2019, 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 Taconic New York City GP Fund, LP, in which the Account has entered into an agreement toreal estate funds or provide funding. As of September 30, 2017, $13.0 million of the commitment has been funded. Once the remaining commitment is funded, the Account anticipates holding a 60%-90% interest in the fund.additional funding through its loans receivable investments:
  Commitment Expiration March 31, 2020 December 31, 2019
    (Unaudited)  
Real Estate Funds(1)
     
 Taconic New York City GP Fund11/2020 $11.4
 $11.4
 LCS SHIP Venture I, LLC12/2020 28.1
 28.1
 
Veritas Trophy VI, LLC(2)
08/2022 42.6
 35.8
 SP V - II, LLC09/2022 70.1
 74.9
 Grubb Southeast Real Estate Fund VI, LLC06/2021 86.6
 86.6
 JCR Capital - REA Preferred Equity Parallel Fund12/2022 97.8
 100.0
 Townsend Strategic Ventures LP03/2021 250.0
 250.0
 Silverpeak NRE Fund Co, LLC01/2021 100.0
 —
 TREA Flagler Venture, LLC08/2020 100.0
 —
    786.6
 586.8
Loans Receivable(3)
     
 311 South Wacker Mezzanine06/2020 $6.0
 $7.6
 Rosemont Towson Mezzanine09/2022 1.2
 1.2
 1330 Broadway Mezzanine09/2022 14.0
 14.0
 SCG Oakland Portfolio Mezzanine03/2021 6.9
 7.0
 BREP VIII Industrial Mezzanine03/2026 14.1
 14.1
 San Diego Office Portfolio Senior Loan08/2022 9.2
 10.0
 San Diego Office Portfolio Mezzanine08/2022 3.1
 3.3
 
MRA Hub 34 Holding, LLC

09/2022 1.5
 1.5
 Liberty Park Mezzanine11/2023 5.0
 5.0
 Colony New England Hotel Portfolio Senior Loan11/2022 14.1
 14.1
 Colony New England Hotel Portfolio Mezzanine11/2022 4.7
 4.7
 Exo Apartments Senior Loan06/2020 7.1
 7.1
 Exo Apartments Mezzanine06/2020 2.4
 2.4
 Five Oak Senior Loan03/2023 7.3
 —
 Five Oak Mezzanine03/2023 2.4
 —
    99.0
 92.0
       
 TOTAL COMMITMENTS  $885.6
 $678.8

(1)
Additional capital can be called during the commitment period at any time. The commitment period can only be extended by the manager with the consent of the Account. The commitment expiration date is reflective of the most recent signed agreement between the Account and the fund manager, including any side letter agreements.
(2)
The fund manager is granted 18 months from the initial contribution date, August 2019, to make its first capital call. If none have occurred, the Account's commitment will be reduced by $15.0 million. If a capital call occurs during the initial 18 month window, the commitment period will be modified to three years from the first capital call date.
(3)
Additional advances from the Account can be requested during the commitment period at any time. The commitment expiration date is reflective of the most recent signed agreement between the Account and the borrower, including any side letter agreements. Certain loans contain extension clauses on the term of the loan that do not require the Account's prior consent. If elected, the Account's commitment may be extended through the extension term.
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%62.4% and 58.0%53.0%
Location/Description Type Fair Value at Type Fair Value at
September 30, 2017 December 31, 2016March 31, 2020 December 31, 2019
 (Unaudited)    (Unaudited)   
Alabama:     
River Ridge Retail $32.1
(9) 
 $—
 
Riverchase Village Retail 40.9
 40.3
 
Arizona:          
Camelback Center Office $58.4
 $56.4
  Office 49.5

 49.0
 
Kierland Apartment Portfolio Apartments 147.7
 127.9
(1) 
Riverside 202 Industrial Industrial 29.7
 29.6
 
California:          
55 Second Street Office 353.1
(1) 
 335.0
(1) 
88 Kearny Street Office 177.6
 172.3
  Office 221.6

 221.0
 
101 Pacific Coast Highway Office 96.4
 96.1
 
200 Middlefield Road Office 61.2
 60.5
  Office 68.0

 68.0
 
30700 Russell Ranch Office 38.4

 39.0
 
Allure at Camarillo Apartments 64.5

 63.9
 
Almond Avenue Land 10.3
 9.5
 
BLVD63 Apartments 162.0
 157.0
  Apartments 158.0

 158.0
 
Castro Station Office 163.0
 158.2
 
Bridgepointe Shopping Center Retail 130.6

 129.0
 
Centre Pointe and Valley View Industrial 43.9
 42.8
  Industrial 61.2

 60.7
 
Cerritos Industrial Park Industrial 140.0
 126.3
  Industrial 165.3

 164.0
 
Charleston Plaza Retail 93.0
 92.0
  Retail 102.0

 100.0
 
Creekside at Alta Loma Apartments 85.2

 85.2
 
Frontera Industrial Business Park Industrial 92.9

 90.0
 
Great West Industrial Portfolio Industrial 160.9
 166.1
  Industrial 206.4

 203.0
 
Holly Street Village Apartments 148.0
 146.0
  Apartments 159.0
(1) 
 158.1
(1) 
Larkspur Courts Apartments 141.4
 140.5
  Apartments 154.0

 155.0
 
Northern CA RA Industrial Portfolio Industrial 87.0
 76.7
  Industrial 111.6

 111.9
 
Oakmont IE West Portfolio Industrial 87.2
 82.7
  Industrial 113.3

 109.2
 
Oceano at Warner Center Apartments 89.0
 88.3
  Apartments 94.5

 94.4
 
Ontario Industrial Portfolio Industrial 397.4
(11) 
 438.0
  Industrial 508.3

 506.9
 
Ontario Mills Industrial Portfolio Industrial 55.9
 52.0
  Industrial 69.8

 65.4
 
Otay Mesa Industrial Portfolio Industrial 34.4
 33.7
 
Pacific City Retail 181.0
(1)(10) 
 —
 
Pacific Plaza Office 115.2
 115.0
  Office 113.3

 112.7
 
Rancho Cucamonga Industrial Portfolio Industrial 70.9
(11) 
 174.2
  Industrial 89.4

 88.3
 
Rancho Del Mar Apartments 94.8
 94.7
 
Regents Court Apartments 95.4
(1) 
 89.9
(1) 
 Apartments 108.0
(1) 
 105.0
(1) 
Southern CA RA Industrial Portfolio Industrial 136.2
 135.0
  Industrial 157.7

 151.8
 
Stella Apartments 178.9
 173.1
  Apartments 176.2

 175.1
 
Stevenson Point Industrial 49.9
 49.3
  Industrial 74.4

 66.6
 
Terra House Apartments 146.0
 146.0
 
The Forum at Carlsbad Retail 220.0
(1) 
 221.5
(1) 
 Retail 224.0
(1) 
 224.0
(1) 
The Legacy at Westwood Apartments 143.0
(1) 
 142.1
(1) 
 Apartments 149.0
(1) 
 149.1
(1) 
Township Apartments Apartments 89.8
 89.6
 
West Lake North Business Park Office 60.4
 60.0
  Office 63.0

 62.3
 
Westcreek Apartments 51.1
 48.2
  Apartments 56.2

 57.1
 
Westwood Marketplace Retail 131.8
 125.0
  Retail 150.0

 150.0
 
Wilshire Rodeo Plaza Office 326.7
 320.7
  Office 335.4

 336.4
 
Colorado:          
1600 Broadway Office 120.0
 116.0
 
Palomino Park Apartments 327.9
(1) 
 314.1
(1) 
 Apartments 358.0
(1) 
 361.0
(1) 
South Denver Marketplace Retail 72.7
 73.0
 
Connecticut:     
Wilton Woods Corporate Campus Office 134.0
 141.9
 
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
September 30, 2017 December 31, 2016
    (Unaudited)   
The Manor Apartments Apartments 52.8
  53.6
 
The Manor at Flagler Village Apartments 148.0
  150.8
 
The Residences at the Village of Merrick Park Apartments 75.0
  74.1
 
Urban Centre Office 138.8
  121.4
 
Weston Business Center Industrial 92.8
  92.7
 
Georgia:        
Atlanta Industrial Portfolio Industrial 31.6
(6) 
 62.8
 
Shawnee Ridge Industrial Portfolio Industrial 89.6
  86.7
 
Illinois:        
32 South State Street Retail 47.7
(1) 
 46.5
(1) 
803 Corday Apartments 92.5
  —
 
Chicago Caleast Industrial Portfolio Industrial 80.3
  81.8
 
Chicago Industrial Portfolio Industrial 96.6
  85.5
 
Maryland:        
Landover Logistics Center Industrial 43.1
  39.8
 
The Shops at Wisconsin Place Retail 91.0
  92.8
 
Massachusetts:        
99 High Street Office 504.0
  514.1
 
501 Boylston Street Office 506.3
(1) 
 490.3
(1) 
Fort Point Creative Exchange Portfolio Office 217.9
  223.0
 
Northeast RA Industrial Portfolio Industrial 40.2
  41.3
 
One Beeman Road Industrial 33.7
  —
 
Minnesota:        
The Bridges Apartments 62.1
  —
 
The Knoll Apartments 33.3
(1) 
 —
 
New Jersey:        
200 Milik Street Industrial 52.1
  51.2
 
Marketfair Retail 105.0
  104.2
 
Amazon Distribution Center Industrial 110.0
  101.0
 
South River Road Industrial Industrial 87.2
  71.9
 
New York:        
21 Penn Plaza Office 266.3
  275.2
 
250 North 10th Street Apartments 166.0
  162.0
 
425 Park Avenue Ground Lease 454.0
  450.0
 
430 West 15th Street Office 140.5
  116.1
 
780 Third Avenue Office 429.0
(1) 
 425.0
(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
 
Location/Description Type Fair Value at
March 31, 2020 December 31, 2019
    (Unaudited)   
South Denver Marketplace Retail $72.4

 $71.2
 
Connecticut:        
Wilton Woods Corporate Campus Office 106.0

 112.1
 
Florida:        
5 West Apartments 62.5
  62.3
 
701 Brickell Avenue Office 427.1
(1) 
 406.6
(1) 
Boca Arbor Club Apartments 63.3
  62.9
 
Broward Industrial Portfolio Industrial 68.4

 67.7
 
Casa Palma Apartments 101.0

 102.0
 
Cypress Trace Retail 34.8
(9) 
 —
 
Fusion 1560 Apartments 81.3
(1) 
 84.1
(1) 
Lakepointe at Jacaranda Apartments 49.4
  48.8
 
Lofts at SoDo Apartments 65.3
(1) 
 64.7
(1) 
Market Square Retail 20.9
(9) 
 —
 
Orion on Orpington Apartments 52.5

 52.4
 
Publix at Weston Commons Retail 73.6

 74.5
 
Seneca Industrial Park Industrial 128.3

 126.7
 
Shoppes at Lake Mary Retail 20.4
(9) 
 —
 
Sole at Brandon Apartments 79.0

 79.0
 
Sole at City Center Apartments 104.0
  —
 
The Manor Apartments Apartments 51.5

 51.5
 
The Manor at Flagler Village Apartments 138.0

 138.1
 
The Residences at the Village of Merrick Park Apartments 70.7

 72.3
 
Weston Business Center Industrial 75.1

 75.0
 
Georgia:        
Ascent at Windward Apartments 69.5
(1) 
 68.4
(1) 
Atlanta Industrial Portfolio Industrial 41.2

 41.0
 
Biltmore at Midtown Apartments 73.5
(1) 
 73.5
(1) 
Eisenhower Crossing Retail 15.9
(9) 
 —
 
Fayette Pavilion Retail 107.7
(9) 
 —
 
Glen Lake Apartments 57.0
  55.3
 
Heritage Pavilion Retail 41.5
(9) 
 —
 
Marketplace at Mill Creek Retail 78.5
(1)(9) 
 —
 
Newnan Pavilion Retail 42.0
(9) 
 —
 
Shawnee Ridge Industrial Portfolio Industrial 100.7
  99.9
 
Woodstock Square Retail 33.5
(9) 
 —
 
Illinois:        
32 South State Street Retail 50.4
(1) 
 51.4
(1) 
803 Corday Apartments 94.3

 93.8
 
Chicago Caleast Industrial Portfolio Industrial 86.4

 85.6
 
Chicago Industrial Portfolio Industrial 32.5

 30.1
 
Village Crossing Retail 153.4
(9) 
 —
 
Maryland:        
Cherry Knoll Apartments 59.8
(1) 
 60.1
(1) 
Landover Logistics Center Industrial 47.5

 44.7
 
The Shops at Wisconsin Place Retail 71.6

 65.6
 
Massachusetts:        
99 High Street Office 563.3
(1) 
 543.7
(1) 
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:        
Beltway North Commerce Center Industrial 19.2
  19.5
 
Cliffs at Barton Creek Apartments 45.7
  45.8
 
Dallas Industrial Portfolio Industrial 210.5
  201.3
 
Houston Apartment Portfolio Apartments 159.3
  159.3
 
Lincoln Centre Office 353.0
  347.0
 
Northwest Houston Industrial Portfolio Industrial 70.0
  68.2
 
Park 10 Distribution Industrial 10.3
  11.3
 
Pinnacle Industrial Portfolio Industrial 53.4
  52.8
 
Pinto Business Park Industrial 130.8
  134.2
 
The Caruth Apartments 82.7
(1) 
 84.3
(1) 
The Maroneal Apartments 54.5
  52.1
 
Virginia:        
8270 Greensboro Drive Office 47.3
  47.6
 
Ashford Meadows Apartments Apartments 106.6
(1) 
 107.2
(1) 
Plaza America Retail 115.0
  109.0
 
The Ellipse at Ballston Office 84.4
  79.8
 
The Palatine Apartments 121.1
(1) 
 130.9
(1) 
Washington:        
Circa Green Lake Apartments 94.4
  92.5
 
Fourth and Madison Office 527.0
(1) 
 521.0
(1) 
Millennium Corporate Park Office 182.1
  190.1
 
Northwest RA Industrial Portfolio Industrial 38.2
  31.7
 
Pacific Corporate Park Industrial 44.5
  42.0
 
Prescott Wallingford Apartments Apartments 62.0
  58.8
 
Rainier Corporate Park Industrial 114.7
  104.0
 
Regal Logistics Campus Industrial 97.8
  83.1
 
Union - South Lake Union Apartments 109.1
  105.3
 
Washington DC:        
1001 Pennsylvania Avenue Office 810.0
(1) 
 810.0
(1) 
1401 H Street, NW Office 203.1
(1) 
 230.0
(1) 
1900 K Street, NW Office 330.2
(1) 
 335.0
(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
 
Location/Description Type Fair Value at
March 31, 2020 December 31, 2019
    (Unaudited)   
350 Washington Retail $134.0
  $134.0
 
Fort Point Creative Exchange Portfolio Office 276.2

 275.0
 
Northeast RA Industrial Portfolio Industrial 43.4

 43.5
 
One Beeman Road Industrial 34.7

 34.6
 
Minnesota:        
The Bridges Apartments 68.0

 67.2
 
The Knoll Apartments 39.3
(1) 
 37.3
(1) 
New Jersey:        
10 New Maple Avenue Industrial 22.3

 21.9
 
200 Milik Street Industrial 57.2

 56.4
 
Marketfair Retail 107.1

 106.2
 
South River Road Industrial Industrial 133.2

 133.5
 
New York:        
21 Penn Plaza Office 333.4

 334.9
 
250 North 10th Street Apartments —

 138.1
 
780 Third Avenue Office 393.5
(1) 
 389.1
(1) 
837 Washington Street Office 232.0

 232.0
 
The Colorado Apartments 258.0
(1) 
 259.0
(1) 
North Carolina:        
Alexander Place Retail 42.0
(9) 
 —
 
Birkdale Village Retail 120.0
(1)(9) 
 —
 
Birkdale Village - Residential Apartments 75.0
(9) 
 —
 
Centric Gateway Apartments 75.2
  75.0
 
Winslow Bay Commons Retail 50.0
(9) 
 —
 
Oregon:        
The Cordelia Apartments 43.2

 43.2
 
Pennsylvania:        
1619 Walnut Street Retail 23.5

 23.0
 
Overlook at King of Prussia Retail 64.0
(1)(9) 
 —
 
Rhode Island:        
Warwick Shopping Center Retail 19.7
(9) 
 —
 
South Carolina:        
Columbiana Station Retail 50.4
(9) 
 —
 
Greene Crossing Apartments 79.7

 79.7
 
Tennessee:        
Bellevue Place Retail 8.8
(9) 
 —
 
Pavilion at Turkey Creek Retail 53.4
(9) 
 —
 
Southside at McEwen Retail 49.5
  49.2
 
Town and Country Retail 34.4
(9) 
 —
 
Texas:        
3131 McKinney Office 45.8

 46.4
 
Beltway North Commerce Center Industrial —

 30.2
 
Carrington Park Apartments 67.3

 67.3
 
Churchill on the Park Apartments 73.1

 73.0
 
Cliffs at Barton Creek Apartments 47.5

 47.2
 
Dallas Industrial Portfolio Industrial 240.8

 237.9
 
District on La Frontera Apartments 77.2
(1) 
 76.6
(1) 
Houston Apartment Portfolio Apartments 162.4

 162.3
 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Location/Description Type Fair Value at
March 31, 2020 December 31, 2019
    (Unaudited)   
Lincoln Centre Office $421.4

 $413.2
 
Lincoln Centre - Hilton Dallas Hotel 70.2
  76.5
 
Northwest Houston Industrial Portfolio Industrial 76.2

 77.2
 
Park 10 Distribution Industrial 11.5

 11.1
 
Park Creek Apartments Apartments 42.2
  —
 
Pinnacle Industrial Portfolio Industrial 67.9

 66.7
 
Pinto Business Park Industrial 154.0

 154.1
 
The Maroneal Apartments 56.3

 56.4
 
Utah:        
Vista Station Office Portfolio Office 119.9
(1) 
 115.4
(1) 
Virginia:        
8270 Greensboro Drive Office 48.6

 49.6
 
Ashford Meadows Apartments Apartments 105.1
(1) 
 105.3
(1) 
Creeks at Virginia Center Retail 49.2
(9) 
 —
 
Henley at Kingstowne Apartments 103.0
(1) 
 103.0
(1) 
Plaza America Retail 114.7

 113.3
 
The Ellipse at Ballston Office 83.5

 82.2
 
The Palatine Apartments 127.1
(1) 
 128.0
(1) 
Washington:        
Circa Green Lake Apartments 100.0
(1) 
 102.0
(1) 
Northwest RA Industrial Portfolio Industrial 49.6

 49.7
 
Pacific Corporate Park Industrial 65.0

 62.5
 
Prescott Wallingford Apartments Apartments 70.0

 70.6
 
Rainier Corporate Park Industrial 164.0

 161.3
 
Regal Logistics Campus Industrial 131.0

 121.0
 
Union - South Lake Union Apartments 115.0
(1) 
 115.0
(1) 
Washington D.C.:        
1001 Pennsylvania Avenue Office 787.4
(1) 
 798.4
(1) 
1401 H Street, NW Office 216.6
(1) 
 211.4
(1) 
1900 K Street, NW Office 333.2
(1) 
 335.4
(1) 
Mass Court Apartments 172.0

 169.0
 
The Ashton Apartments 30.2

 30.6
 
The Louis at 14th Apartments 162.8

 164.2
 
The Woodley Apartments —

 180.3
 
Various:        
Colony Industrial Portfolio Industrial 139.3
(3)  
 135.9
(3) 
TOTAL REAL ESTATE PROPERTIES       
(Cost $14,098.9 and $13,048.5)   $17,082.1
  $15,835.0
 
REAL ESTATE JOINT VENTURES AND LIMITED PARTNERSHIPS—21.4%FUNDS—24.1% and 21.6%25.1%
REAL ESTATE JOINT VENTURES—20.9%22.8% and 21.1%24.1%
Location/Description Type Fair Value at
September 30, 2017 December 31, 2016
    (Unaudited)   
California:      
CA—Colorado Center LP
Colorado Center (50% Account Interest)
 Office $355.1
(2) 
 $567.8
 
PC Borrower, LLC
Pacific City (70% Account Interest)
 Retail 133.8
  128.5
 
TREA Campus Pointe 1, LLC
Campus Pointe 1 (45% Account Interest)		 Office 139.4
  137.5
 
TREA Campus Pointe 2, LLC
Campus Pointe 2 (43.16% Account Interest)		 Office 104.2
  85.7
 
T-C 1500 Owens, LLC
1500 Owens Street (49.9% Account Interest)
 Office 77.0
  74.8
 
T-C Foundry Square II Venture LLC
Foundry Square II (50.1% Account Interest)
 Office 257.4
  200.1
(2) 
T-C Illinois Street, LLC
409-499 Illinois Street (40% Account Interest)
 Office 206.3
  196.8
 
Valencia Town Center Associates LP
Valencia Town Center (50% Account Interest)
 Retail 137.5
(2) 
 128.0
(2) 
Florida:      
Florida Mall Associates, Ltd
The Florida Mall (50% Account Interest)
 Retail 754.8
(2) 
 755.8
(2) 
TREA Florida Retail, LLC
Florida Retail Portfolio (80% Account Interest)
 Retail 150.0
  147.6
 
West Dade County Associates
Miami International Mall (50% Account Interest)
 Retail 164.2
(2) 
 161.1
(2) 
Maryland:      
WP Project Developer
The Shops at Wisconsin Place (33.33% Account Interest)
 Retail 21.0
  19.4
 
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) 
Location/Description Type Fair Value at
March 31, 2020 December 31, 2019
    (Unaudited)   
California:      
CA—Colorado Center LP
Colorado Center (50% Account Interest)
 Office $391.6
(2) 
 $384.5
(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, 2020 December 31, 2019
    (Unaudited)   
PC Borrower, LLC
Pacific City (70% Account Interest)
 Retail $—
(10) 
 $62.2
(2) 
TREA GM Industrial Road Investor Member LLC
150 Industrial Road (98% Account Interest)
 Office 99.8
  98.0
 
TREA 9625 Towne Center, LLC
9625 Towne Centre Drive (49.9% Account Interest)		 Office 54.7

 53.1
 
TREA Campus Pointe 1, LLC
Campus Pointe 1 (45% Account Interest)		 Office 165.8

 163.5
 
TREA Campus Pointe 2 & 3, LLC
Campus Pointe 2 & 3 (45% Account Interest)		 
Office (5)
 144.9

 143.6
 
TREA Campus Pointe 4, LLC
Campus Pointe 4 (45% Account Interest)		 Office 10.0

 9.6
 
TREA Campus Pointe 5, LLC
Campus Pointe 5 (45% Account Interest)		 Office 39.5
  37.4
 
ARE-SD Regions NO. 58, LLC
Campus Pointe 6 (45% Account Interest)		 Office 122.5
  116.6
 
T-C 1500 Owens, LLC
1500 Owens Street (49.9% Account Interest)
 Office 83.4

 81.5
 
T-C Foundry Square II Venture LLC
Foundry Square II (50.1% Account Interest)
 Office 323.2

 318.4
 
T-C Illinois Street, LLC
409-499 Illinois Street (40% Account Interest)
 Office 243.9

 237.5
 
Valencia Town Center Associates LP
Valencia Town Center (50% Account Interest)
 Retail 130.8
(2) 
 136.4
(2) 
Florida:      
Florida Mall Associates, Ltd
The Florida Mall (50% Account Interest)
 Retail 748.3
(2) 
 748.3
(2) 
TREA Florida Retail, LLC
Florida Retail Portfolio (80% Account Interest)
 Retail 156.3

 158.4
 
West Dade County Associates
Miami International Mall (50% Account Interest)
 Retail 133.6
(2) 
 157.5
(2) 
Maryland:      
WP Project Developer
The Shops at Wisconsin Place (33.33% Account Interest)
 Retail 24.0

 29.9
 
Massachusetts:      
One Boston Place REIT
One Boston Place (50.25% Account Interest)
 Office 251.3

 246.8
 
T-C 225 Binney, LLC
225 Binney Street (70% Account Interest)
 Office 231.5

 231.5
 
T-C 501 Boylston Street Member, LLC
501 Boylston (50.1% Account Interest)
 Office 215.1
(2) 
 206.9
(2) 
Nevada:        
Fashion Show Holding I, LLC
Fashion Show (50% Account Interest)
 Retail 600.4
(2) 
 706.9
(2) 
New York:      
401 West 14th Street, LLC
401 West 14th Street (42.19% Account Interest)
 Retail 38.6
(2) 
 44.8
(2) 
440 Ninth Avenue Owner, LLC
440 Ninth Avenue (88.52% Account Interest)
 Office 137.9
(2) 
 133.1
(2) 
817 Broadway Owner, LLC
817 Broadway (61.46% Account Interest)
 Office 35.9
(2) 
 33.7
(2) 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


Location/Description Type Fair Value at
March 31, 2020 December 31, 2019
    (Unaudited)   
MRA Hub 34 Holding, LLC
The Hub (95% Account Interest)
 Office $75.8
(2) 
 $74.8
(2) 
RGM 42, LLC
MiMA (70% Account Interest)
 Apartments 106.6
(2) 
 113.0
(2) 
North Carolina:        
CC 101 North Tryon, LLC 101 N. Tryon Street (85% Account Interest) Office 48.2
(2) 
 47.9
(2) 
Tennessee:      
West Town Mall, LLC
West Town Mall (50% Account Interest)
 Retail 144.6
(2) 
 144.0
(2) 
Texas:      
Four Oaks Venture LP
Four Oaks Place LP (51% Account Interest)
 Office 342.6
(2) 
 352.8
(2) 
TREA I-35 Logistics Investor Member, LLC I-35 Logistics Center (95% Account Interest) Land 10.1

 6.9
 
Washington:        
TREA 4th and Madison Investor Member, LLC
Fourth and Madison (51% Account Interest)		 Office 171.7
(2) 
 167.3
(2) 
Various:      
DDRTC Core Retail Fund, LLC
SITE Centers Joint Venture (85% Account Interest)
 Retail 12.4
(9) 
 878.0
(2,3) 
Simpson Housing LLP
Simpson Housing Portfolio (80% Account Interest)
 Apartments 454.4
(2,3) 
 431.2
(2,3) 
THP Student Housing, LLC
THP Student Housing Portfolio (97% Account Interest)		 Apartments 193.2
(2,3) 
 186.8
(2,3) 
Storage Portfolio I, LLC
Storage Portfolio I (66.02% Account Interest)
 Storage 99.6
(2,3) 
 93.6
(2,3) 
Storage Portfolio II, LLC
Storage Portfolio II (90% Account Interest)
 Storage 141.3
(2,3) 
 130.5
(2,3) 
Storage Portfolio III, LLC
Storage Portfolio III (90% Account Interest)
 Storage 53.9
(3) 
 37.3
(3) 
TOTAL REAL ESTATE JOINT VENTURES
(Cost $4,728.6 and $5,971.1)
   $6,237.4
  $7,204.2
 
         
REAL ESTATE FUNDS—1.3% and 1.0%    
LCS SHIP Venture I, LLC (90.0% Account Interest) $212.8
  $216.1
 
SP V - II, LLC (79.2% Account Interest) 28.2
  23.3
 
Taconic New York City GP Fund, LP (60.0% Account Interest) 29.8
  29.8
 
Veritas - Trophy VI, LLC (92.1% Account Interest) 42.7
  4.2
 
IDR - Core Property Index Fund, LLC (2.0% Account Interest) 25.0
  25.0
 
Grubb Southeast Real Estate Fund VI, LLC (66.7% Account Interest) 13.4
  13.4
 
JCR Capital (49.2% Account Interest) 2.2
  —
 
TOTAL REAL ESTATE FUNDS
(Cost $313.4 and $273.3)
   $354.1
  $311.8
 
TOTAL REAL ESTATE JOINT VENTURES AND FUNDS
(Cost $5,042.0 and $6,244.4)
 $6,591.5
  $7,516.0
 
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


MARKETABLE SECURITIES—19.9%7.5% and 19.3%16.7%
REAL ESTATE-RELATED MARKETABLE SECURITIES—4.1%2.6% and 4.1%2.8%
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, 2020 December 31, 2019
2020 2019 
      (Unaudited)   
33,051
 25,333
 Acadia Realty Trust $0.4

 $0.7
 
88,392
 77,213
 Agree Realty Corporation 5.5

 5.4
 
26,366
 20,424
 Alexander & Baldwin, Inc. 0.3

 0.4
 
919
 635
 Alexander's, Inc. 0.3

 0.2
 
128,406
 114,902
 Alexandria Real Estate Equities, Inc. 17.6

 18.6
 
18,539
 14,387
 American Assets Trust, Inc. 0.5

 0.7
 
53,740
 40,898
 American Campus Communities, Inc. 1.5

 1.9
 
41,166
 31,822
 American Financial Trust, Inc. 0.3
  0.4
(7) 
265,201
 241,918
 American Homes 4 Rent 6.2

 6.3
 
339,068
 298,037
 American Tower Corp. 73.8

 68.5
 
264,879
 247,312
 Americold Realty Trust 9.0

 8.7
 
57,574
 44,204
 Apartment Investment and Management Company 2.0

 2.3
 
81,095
 62,827
 Apple Hospitality Inc. 0.7

 1.0
 
22,044
 15,666
 Armada Hoffler Properties Inc. 0.2

 0.3
 
—
 26,793
 Ashford Hospitality Trust, Inc. —

 0.1
 
119,484
 106,486
 Avalonbay Communities, Inc. 17.6

 22.3
 
14,403
 7,650
 Bluerock Residential Growth, Inc. 0.1

 0.1
 
120,292
 106,065
 Boston Properties, Inc. 11.1

 14.6
 
—
 8,938
 Braemar Hotels & Resorts, Inc. —

 0.1
 
66,738
 52,132
 Brandywine Realty Trust 0.7

 0.8
 
114,234
 88,801
 Brixmore Property Group Inc 1.1

 1.9
 
25,497
 19,539
 Brookfield Property REIT 0.2
(7) 
 0.4
 
6,389
 —
 BRT Apartments Corp. 0.1

 —
 
36,377
 27,796
 Camden Property Trust 2.9

 2.9
 
36,764
 28,420
 CareTrust REIT Inc. 0.5

 0.6
 
19,068
 14,592
 Catchmark Timber Trust, Inc. 0.1

 0.2
 
—
 50,454
 CBL & Associates Properties, Inc. —
  0.1
(7) 
54,621
 25,522
 Cedar Shopping Centers, Inc. 0.1

 0.1
 
23,661
 13,659
 Chatham Lodging Trust 0.1

 0.3
 
20,171
 15,789
 City Office REIT Inc. 0.1

 0.2
 
—
 5,192
 Clipper Realty, Inc. —

 0.1
 
295,388
 492,974
 Colony Capital, Inc. 0.5

 2.3
 
43,247
 34,825
 Columbia Property Trust Inc. 0.5

 0.7
 
7,392
 5,492
 Community Healthcare Trust, Inc. 0.3

 0.2
 
48,055
 35,462
 CoreCivic, Inc. 0.5

 0.6
 
4,974
 3,830
 Corenergy Infrastructure Trust, Inc. 0.1

 0.2
 
16,534
 11,903
 Corepoint Lodging, Inc. 0.1
  0.1
 
14,635
 11,149
 CoreSite Realty Corporation 1.7

 1.3
 
44,555
 33,505
 Corporate Office Properties Trust 1.0

 1.0
 
57,140
 43,565
 Cousins Properties, Inc. 1.7

 1.8
 
287,381
 248,664
 Crown Castle International Corporation 41.5

 35.3
 
75,054
 57,474
 Cubesmart 2.0

 1.8
 
85,743
 60,485
 CyrusOne Inc. 5.3

 4.0
 
78,263
 59,944
 DiamondRock Hospitality Company 0.4

 0.7
 
147,130
 94,906
 Digital Realty Trust, Inc. 20.4

 11.4
 
101,339
 —
 Diversified Healthcare Trust 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, 2020 December 31, 2019
2020 2019 
      (Unaudited)   
64,649
 49,622
 Douglas Emmett, Inc. $2.0

 $2.2
 
278,259
 244,465
 Duke Realty Corporation 9.0

 8.5
 
29,684
 22,034
 Easterly Government Properties, Inc. 0.7

 0.5
 
45,015
 41,238
 EastGroup Properties, Inc. 4.7

 5.5
 
57,899
 44,235
 Empire State Realty Trust 0.5

 0.6
 
30,148
 23,023
 EPR Properties 0.7

 1.6
 
71,789
 60,851
 Equinix Inc. 44.8

 35.5
 
317,599
 256,618
 Equity Lifestyle Properties, Inc. 18.3

 18.1
 
323,143
 283,999
 Equity Residential 19.9

 23.0
 
235,836
 188,894
 Essential Properties Realty 3.1

 4.7
 
53,531
 54,492
 Essex Property Trust, Inc. 11.8

 16.4
 
114,007
 107,410
 Extra Space Storage, Inc. 10.9

 11.3
 
17,184
 8,142
 Farmland Partners, Inc. 0.1
  0.1
 
29,121
 66,222
 Federal Realty Investment Trust 2.2

 8.5
 
49,077
 37,538
 First Industrial Realty Trust, Inc. 1.6

 1.6
 
27,799
 20,389
 Four Corners Property Trust 0.5

 0.6
 
39,353
 30,896
 Franklin Street Properties Corp. 0.2

 0.3
 
19,073
 14,739
 Front Yard Residential Corp. 0.2

 0.2
 
219,462
 180,230
 Gaming and Leisure Properties, Inc. 6.1

 7.8
 
115,000
 160,000
 GDS Holdings LTD ADR 1.2

 4.0
(7) 
47,655
 35,427
 GEO Group Inc./The 0.6
  0.6
 
12,666
 9,933
 Getty Realty Corp. 0.3

 0.3
 
14,133
 9,121
 Gladstone Commercial Corporation 0.2

 0.2
 
11,856
 6,226
 Gladstone Land Corporation 0.1

 0.1
 
14,936
 9,380
 Global Medical REIT, Inc. 0.2

 0.1
 
34,574
 26,663
 Global Net Lease, Inc. 0.5

 0.5
 
51,455
 39,221
 Healthcare Realty Trust Inc. 1.4

 1.3
 
83,942
 60,957
 Healthcare Trust of America 2.0

 1.8
 
497,952
 496,493
 Healthpeak Properties, Inc. 11.9

 17.1
 
21,711
 10,385
 Hersha Hospitality Trust 0.1

 0.2
 
40,166
 30,535
 Highwoods Properties, Inc. 1.4

 1.5
 
277,410
 661,737
 Host Hotels & Resorts, Inc. 3.1

 12.3
 
254,709
 275,440
 Hudson Pacific Properties, Inc. 6.5

 10.4
 
34,733
 26,784
 Independence Realty Trust, Inc. 0.3

 0.4
 
26,421
 19,292
 Industrial Logics Properties 0.5

 0.4
 
150,000
 134,775
 Interxion Holding NV 8.7

 7.0
 
4,837
 3,467
 Investors Real Estate Trust 0.3

 0.3
 
648,451
 559,204
 Invitation Homes, Inc. 13.9
  16.8
 
111,023
 84,852
 Iron Mountain Inc. 2.6

 2.7
 
15,000
 163,782
 iShares Dow Jones US Real Estate Index Fund 1.0
(7) 
 15.2
(7) 
47,791
 36,559
 JBG Smith Properties 1.5

 1.5
 
105,462
 95,936
 Kilroy Realty Corporation 6.7
  8.0
 
161,366
 120,171
 Kimco Realty Corporation 1.6

 2.5
 
31,614
 24,663
 Kite Realty Group Trust 0.3

 0.5
 
33,218
 25,456
 Lamar Advertising Corporation 1.7

 2.3
 
95,047
 71,595
 Lexington Realty Trust 0.9

 0.8
 
—
 46,357
 Liberty Property Trust —

 2.8
 
18,167
 13,885
 Life Storage, Inc. 1.7

 1.5
 
15,071
 11,718
 LTC Properties, Inc. 0.5

 0.5
 
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, 2020 December 31, 2019
2020 2019 
      (Unaudited)   
33,124
 25,783
 Mack-Cali Realty Corporation $0.5

 $0.6
 
199,747
 152,801
 Medical Properties Trust, Inc. 3.5

 3.2
 
300,000
 220,000
 Megaport, LTD 1.8

 1.7
 
85,000
 85,000
 MGM Growth Properties, L.L.C. 2.0

 2.6
 
120,258
 103,823
 Mid-America Apartment Communities, Inc. 12.4

 13.7
 
37,474
 27,502
 Monmouth Real Estate Investment Corporation 0.5

 0.4
 
16,334
 12,615
 National Health Investors, Inc. 0.8

 1.0
 
66,810
 50,907
 National Retail Properties, Inc. 2.2

 2.7
 
23,725
 17,663
 National Storage Affiliates Trust 0.7

 0.6
 
52,386
 24,918
 New Senior Investment Group 0.1

 0.2
 
8,263
 5,632
 Nexpoint Residential Trust, Inc. 0.2

 0.3
 
18,251
 14,200
 Office Properties Income Trust, Inc. 0.5

 0.5
 
88,291
 64,786
 Omega Healthcare Investors, Inc. 2.3

 2.7
 
9,893
 4,628
 One Liberty Properties, Inc. 0.1
  0.1
 
54,973
 42,727
 Outfront Media Inc. 0.7

 1.1
 
74,454
 58,127
 Paramount Group Inc. 0.7

 0.8
 
96,202
 71,359
 Park Hotels & Resorts, Inc. 0.8
  1.8
 
50,172
 38,713
 Pebblebrook Hotel Trust 0.5

 1.0
 
20,989
 20,665
 Pennsylvania Real Estate Investment Trust 0.1
(7) 
 0.1
(7) 
74,369
 55,271
 Physicians Realty Trust 1.0

 1.0
 
49,178
 37,274
 Piedmont Office Realty Trust, Inc. 0.9
  0.8
 
8,246
 3,863
 Plymouth Industrial REIT, Inc. 0.1

 0.1
 
25,420
 19,688
 Potlatch Corporation 0.8

 0.9
 
17,820
 13,220
 Preferred Apartment Communities, Inc. 0.1

 0.2
 
621,905
 472,201
 ProLogis 50.0

 42.1
 
7,921
 5,958
 PS Business Parks, Inc. 1.1

 1.0
 
95,952
 82,126
 Public Storage, Inc. 19.1

 17.5
 
110,580
 105,041
 QTS Realty Trust, Inc. 6.4

 5.7
 
51,072
 38,741
 Rayonier, Inc. 1.2

 1.3
 
242,246
 197,129
 Realty Income Corporation 12.1

 14.4
 
174,883
 159,520
 Regency Centers Corporation 6.7

 10.1
 
44,354
 33,519
 Retail Opportunity Investment 0.4

 0.6
 
83,972
 63,727
 Retail Properties of America 0.4

 0.9
 
9,455
 4,440
 Retail Value, Inc. 0.1

 0.2
 
379,102
 282,611
 Rexford Industrial Realty Inc. 15.5

 12.8
 
64,936
 50,071
 RLJ Lodging Trust 0.5

 0.9
 
30,156
 23,246
 RPT Realty 0.2

 0.3
 
19,088
 13,660
 Ryman Hospitality Properties 0.7

 1.2
 
188,570
 167,181
 Sabra Health Care REIT Inc. 2.1

 3.6
 
4,938
 3,168
 Safe Hold, Inc. 0.3

 0.1
 
4,559
 3,537
 Saul Centers, Inc. 0.1
  0.2
 
90,374
 76,914
 SBA Communications Corporation 24.4

 18.5
 
—
 70,465
 Senior Housing Properties Trust —

 0.6
 
63,399
 48,715
 Service Properties Trust 0.3

 1.2
 
170,053
 200,628
 Simon Property Group, Inc. 9.3

 29.9
 
509,244
 394,633
 Site Centers Corporation 2.7

 5.5
 
75,126
 115,766
 SL Green Realty Corp. 3.2

 10.6
 
38,285
 29,513
 Spirit Realty Capital Inc. 1.0

 1.5
 
58,138
 39,632
 Stag Industrial, Inc. 1.3

 1.3
 
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, 2020 December 31, 2019
2020 2019 
      (Unaudited)   
194,193
 228,776
 STORE Capital Corporation $3.5

 $8.5
 
40,889
 30,813
 Summit Hotel Properties, Inc. 0.2

 0.4
 
158,289
 123,951
 Sun Communities, Inc. 19.8

 18.6
 
86,249
 66,821
 Sunstone Hotel Investors, L.L.C. 0.8

 0.9
 
38,131
 27,198
 Tanger Factory Outlet Centers, Inc. 0.2
(7) 
 0.4
(7) 
23,104
 39,475
 Taubman Centers, Inc. 1.0

 1.2
 
145,788
 139,538
 Terreno Realty Corporation 7.5

 7.6
 
54,805
 42,266
 The Macerich Company 0.3

 1.1
(7) 
113,119
 86,400
 UDR, Inc. 4.1
  4.0
 
13,835
 10,668
 UMH Properties, Inc. 0.2
  0.2
 
224,924
 150,082
 UNITI Group, Inc. 1.4
  1.2
(7) 
4,923
 3,816
 Universal Health Realty Income Trust 0.5

 0.4
 
44,280
 34,264
 Urban Edge Properties 0.4
  0.7
 
11,141
 8,803
 Urstadt Biddle Properties, Inc. 0.2

 0.2
 
85,000
 85,000
 Vanguard Real Estate ETF 5.9
(7) 
 7.9
 
240,398
 190,949
 Ventas, Inc. 6.4

 11.0
 
416,400
 318,132
 VEREIT, Inc. 2.0

 2.9
 
460,023
 377,486
 Vici Properties, Inc. 7.7

 9.6
 
67,374
 51,469
 Vornado Realty Trust 2.4

 3.4
 
99,275
 55,611
 Washington Prime Group, Inc. 0.1
(7) 
 0.2
(7) 
32,774
 23,876
 Washington Real Estate Investment Trust 0.8

 0.7
 
46,617
 36,198
 Weingarten Realty Investors 0.7

 1.1
 
340,746
 300,767
 Welltower Inc. 15.7

 24.5
 
455,479
 386,918
 Weyerhaeuser Company 7.7

 11.7
 
24,163
 11,404
 Whitestone Real Estate Investment Trust B 0.1
  0.2
 
66,696
 50,897
 WP Carey Inc. 3.9
  4.1
 
43,615
 33,741
 Xenia Hotels & Resorts, Inc. 0.4

 0.7
 
TOTAL REAL ESTATE-RELATED MARKETABLE SECURITIES
(Cost $800.4 and $686.0)		 $724.7
  $825.7
 
OTHER MARKETABLE SECURITIES—15.8%4.9% and 15.2%13.9%
U.S. GOVERNMENT AGENCY NOTES—12.1%0.0% and 8.7%0.7%
PrincipalPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value atPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value at
September 30, 2017 December 31, 2016March 31, 2020 December 31, 2019
2017 2016 
20202020 2019 Issuer 
Yield(4)
 
Maturity
Date
 March 31, 2020 December 31, 2019
   (Unaudited)      
$—
 $22.0
 Fannie Mae Discount Notes 0.416% 2/1/2017 $—
 $22.0
—
 $65.4
 $—
 $65.5
——
 42.0
 Fannie Mae Discount Notes 0.366% - 0.482% 3/1/2017 —
 42.0
—
 50.0
 Federal Home Loan Bank 1.700% 12/20/2021 —
 50.0
——
 10.0
 Fannie Mae Discount Notes 0.427% 3/3/2017 —
 10.0
—
 4.8
 Federal Home Loan Bank Discount Notes 1.521%-1.572% 1/6/2020 —
 4.8
——
 20.0
 Fannie Mae Discount Notes 0.427% 3/6/2017 —
 20.0
—
 21.2
 Federal Home Loan Bank Discount Notes 1.680% 1/10/2020 —
 21.2
——
 20.0
 Fannie Mae Discount Notes 0.406% 3/13/2017 —
 20.0
—
 26.0
 Federal Home Loan Bank Discount Notes 1.700% 1/15/2020 —
 26.0
——
 30.3
 Fannie Mae Discount Notes 0.406% 3/27/2017 —
 30.3
—
 43.0
 Federal Home Loan Bank Discount Notes 1.575%-1.593% 1/31/2020 —
 42.9
—
 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
 —
20.0
 —
 Fannie Mae Discount Notes 1.038% 10/25/2017 20.0
 —
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
 —
5.0
 —
 Fannie Mae Discount Notes 1.048% 11/9/2017 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
—
 15.5
 Federal Farm Credit Bank Discount Notes 0.376% - 0.381% 2/22/2017 —
 15.5
—
 34.7
 Federal Home Loan Bank Discount Notes 0.304% - 0.355% 1/3/2017 —
 34.7
—
 40.0
 Federal Home Loan Bank Discount Notes 0.345% 1/4/2017 —
 40.0
—
 29.2
 Federal Home Loan Bank Discount Notes 0.355% - 0.447% 1/6/2017 —
 29.2
—
 7.1
 Federal Home Loan Bank Discount Notes 0.299% - 0.345% 1/9/2017 —
 7.1
—
 25.0
 Federal Home Loan Bank Discount Notes 0.325% 1/10/2017 —
 25.0
—
 50.0
 Federal Home Loan Bank Discount Notes 0.304% - 0.396% 1/11/2017 —
 50.0
—
 33.0
 Federal Home Loan Bank Discount Notes 0.365% - 0.396% 1/12/2017 —
 33.0
—
 50.0
 Federal Home Loan Bank Discount Notes 0.386% 1/13/2017 —
 50.0
—
 36.0
 Federal Home Loan Bank Discount Notes 0.345% 1/17/2017 —
 36.0
—
 42.1
 Federal Home Loan Bank Discount Notes 0.294% - 0.365% 1/18/2017 —
 42.1
TOTAL U.S. GOVERNMENT AGENCY NOTES
(Cost $0.0 and $210.2)
TOTAL U.S. GOVERNMENT AGENCY NOTES
(Cost $0.0 and $210.2)
 $—
 $210.4
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


FOREIGN GOVERNMENT AGENCY NOTES— 0.2% and 0.2%
Principal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value at
March 31, 2020 December 31, 2019
2020 2019 
          (Unaudited)  
$49.3
 $49.3
 Japan Bank for International Cooperation 1.625% 10/17/2022 $50.3
 $48.9
12.1
 —
 Japan Bank for International Cooperation 1.750% 1/23/2023 12.3
 —
0.2
 0.2
 Korea Development Bank 1.908% 10/1/2022 0.3
 0.3
TOTAL FOREIGN GOVERNMENT AGENCY NOTES
(Cost $61.6 and $49.5)
$62.9
 $49.2
UNITED STATES TREASURY SECURITIES—2.7% and 8.7%
Principal Issuer 
Yield / Coupon Rate(4)
 
Maturity
Date
 Fair Value at
March 31, 2020 December 31, 2019
2020 2019 
           (Unaudited)  
$—
 $11.9
 United States Treasury Bills 1.540%  1/2/2020 $—
 $11.9
—
 40.0
 United States Treasury Bills 1.537%  1/14/2020 —
 40.0
—
 238.3
 United States Treasury Bills 1.530%  1/21/2020 —
 238.3
—
 10.1
 United States Treasury Bills 1.629%  1/23/2020 —
 10.1
—
 26.1
 United States Treasury Bills 1.526%  1/30/2020 —
 26.1
—
 39.9
 United States Treasury Bills 1.538%  2/4/2020 —
 39.9
—
 20.0
 United States Treasury Bills 1.550%  2/6/2020 —
 20.0
—
 149.7
 United States Treasury Bills 1.503%  2/11/2020 —
 149.8
—
 49.9
 United States Treasury Bills 1.575%  2/13/2020 —
 49.9
—
 13.0
 United States Treasury Bills 1.554%  2/20/2020 —
 13.0
—
 49.9
 United States Treasury Bills 1.583%  2/27/2020 —
 49.9
—
 46.1
 United States Treasury Bills 1.515%  3/5/2020 —
 46.1
—
 54.5
 United States Treasury Bills 1.576%  3/12/2020 —
 54.5
—
 44.8
 United States Treasury Bills 1.780%  3/19/2020 —
 44.9
—
 38.9
 United States Treasury Bills 1.515%  4/2/2020 —
 38.8
250.0
 —
 United States Treasury Bills 0.010%  4/14/2020 250.0
 —
250.0
 —
 United States Treasury Bills 0.010%  6/9/2020 250.0
 —
250.0
 —
 United States Treasury Bills 0.010%  6/11/2020 249.9
 —
—
 99.8
 United States Treasury Notes 1.375%  5/31/2020 —
 99.9
—
 100.4
 United States Treasury Notes 2.625%  7/31/2020 —
 100.6
—
 249.5
 United States Treasury Notes 1.500%  8/15/2020 —
 249.8
—
 653.1
 United States Treasury Notes 2.625%  8/15/2020 —
 653.9
—
 100.8
 United States Treasury Notes 2.250%  4/30/2021 —
 100.8
—
 199.4
 United States Treasury Notes 1.625%  6/30/2021 —
 200.0
—
 99.9
 United States Treasury Notes 1.750%  7/31/2021 —
 100.2
—
 49.6
 United States Treasury Notes 1.250%  10/31/2021 —
 49.7
—
 100.0
 United States Treasury Notes 1.750%  7/15/2022 —
 100.3
—
 100.7
 United States Treasury Notes 1.875%  7/31/2022 —
 100.7
TOTAL UNITED STATES TREASURY SECURITIES
(Cost $750.0 and $2,586.3)
 $749.9
 $2,589.1
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


CORPORATE BOND SECURITIES—1.9% and 4.2%
Principal Issuer Coupon Rate 
Credit Rating(8)
 
Maturity
Date
 Fair Value at
March 31, 2020 December 31, 2019
2020 2019 
            (Unaudited)  
$11.5
 $11.5
 Air Lease Corporation 2.250% BBB 1/15/2023 $9.6
 $11.5
13.8
 13.8
 American Honda Finance 1.700% A 9/9/2021 13.5
 13.7
19.7
 19.7
 American Honda Finance 2.050% A 1/10/2023 19.4
 19.7
7.7
 27.7
 Apple, Inc. 1.700% AA+ 9/11/2022 7.8
 27.7
—
 29.2
 Banco Santander SA 3.500% A- 4/11/2022 —
 30.0
—
 12.0
 Bank of America Corporation 2.369% A- 7/21/2021 —
 12.0
—
 21.6
 Bank of America Corporation 2.503% A- 10/21/2022 —
 21.8
14.5
 29.5
 Bank of New York Mellon Corporation 1.950% A 8/23/2022 14.6
 29.6
8.1
 8.1
 BB+T Corporation 2.150% A- 2/1/2021 8.1
 8.1
—
 3.5
 Berkshire Hathaway Energy 2.400% A- 2/1/2020 —
 3.5
10.0
 10.0
 Boeing Co. 1.650% BBB 10/30/2020 9.8
 10.0
28.9
 28.9
 Boeing Co. 2.300% BBB 8/1/2021 27.9
 29.0
—
 10.9
 BPCE SA 2.750% A+ 12/2/2021 —
 11.0
—
 8.0
 Canadian National Railway 2.400% A 2/3/2020 —
 8.0
—
 21.8
 Capital One, NA 2.150% BBB+ 9/6/2022 —
 21.8
4.8
 4.8
 Caterpillar Financial Service 1.850% A 9/4/2020 4.7
 4.7
42.5
 42.5
 Caterpillar Financial Service 1.299% A 3/8/2021 41.7
 42.6
10.0
 —
 Caterpillar Financial Service 1.913% A 11/12/2021 9.8
 —
10.0
 —
 Caterpillar Financial Service 1.950% A 11/18/2022 10.0
 —
—
 12.0
 Centerpoint Energy Resource 4.500% BBB+ 1/15/2021 —
 12.2
—
 32.9
 Citigroup, Inc. 2.312% BBB+ 11/4/2022 —
 32.9
—
 27.0
 Columbia Pipeline Group 3.300% A3 6/1/2020 —
 27.1
—
 24.5
 Diageo Capital PLC 4.828% A- 7/15/2020 —
 24.9
—
 19.6
 DTE Energy Corporation 2.250% BBB 11/1/2022 —
 19.6
—
 34.5
 Exxon Mobil Corporation 1.902% AA+ 8/16/2022 —
 34.7
14.0
 14.0
 Fifth Third Bank 2.875% BBB+ 7/27/2020 13.9
 14.1
—
 5.0
 Fifth Third Bank 2.250% A- 6/14/2021 —
 5.0
4.0
 4.0
 General Dynamics Corporation 2.875% A 5/11/2020 4.0
 4.0
—
 2.3
 Georgia Power Company 2.000% A- 3/30/2020 —
 2.3
—
 15.0
 Georgia Power Company 2.000% A- 9/8/2020 —
 15.0
8.0
 8.0
 Georgia Power Company 2.400% A- 4/1/2021 8.0
 8.0
—
 7.5
 Goldman Sachs Group, Inc. 2.600% BBB+ 4/23/2020 —
 7.5
—
 12.2
 Goldman Sachs Group, Inc. 2.600% BBB+ 12/27/2020 —
 12.2
25.0
 25.0
 Goldman Sachs Group, Inc. 2.350% BBB+ 11/15/2021 25.0
 25.1
—
 10.5
 HSBC Bank USA, NA 4.875% A 8/24/2020 —
 10.7
11.6
 —
 Huntington National Bank 1.800% A- 2/3/2023 11.4
 —
—
 11.7
 John Deere Capital Corporation 1.950% A 6/13/2022 —
 11.7
—
 25.0
 JP Morgan Chase Bank, NA 2.604% A+ 2/1/2021 —
 25.0
20.0
 20.0
 JP Morgan Chase Bank, NA 3.086% A+ 4/26/2021 20.0
 20.1
—
 65.0
 Mitsubishi UFJ Financial Group 2.190% A- 9/13/2021 —
 65.2
—
 9.2
 Morgan Stanley 2.650% BBB+ 1/27/2020 —
 9.2
—
 20.0
 Morgan Stanley 2.800% BBB+ 6/16/2020 —
 20.1
—
 8.3
 Morgan Stanley 2.500% BBB+ 4/21/2021 —
 8.4
—
 7.0
 Morgan Stanley 2.625% BBB+ 11/17/2021 —
 7.1
39.5
 —
 Morgan Stanley 1.874% BBB+ 1/20/2023 36.7
 —
18.4
 18.4
 MPLX LP 1.899% BBB 9/9/2021 17.4
 18.5
20.0
 20.0
 MUFG Union Bank, NA 2.100% A 12/9/2022 19.7
 20.0
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


PrincipalPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value atPrincipal Issuer Coupon Rate 
Credit Rating(8)
 
Maturity
Date
 Fair Value at
September 30, 2017 December 31, 2016March 31, 2020 December 31, 2019
2017 2016 
20202020 2019 Issuer Coupon Rate 
Credit Rating(8)
 
Maturity
Date
 March 31, 2020 December 31, 2019
   (Unaudited)      
$—
 $20.0
 Federal Home Loan Bank Discount Notes 0.284% 1/20/2017 $—
 $20.0
—
 $50.8
 $—
 $51.2
——
 50.0
 Federal Home Loan Bank Discount Notes 0.335% 1/23/2017 —
 50.0
—
 20.0
 Occidental Petroleum Corporation 2.854% BBB 2/8/2021 —
 20.1
——
 47.0
 Federal Home Loan Bank Discount Notes 0.345% 1/24/2017 —
 47.0
—
 14.9
 Occidental Petroleum Corporation 2.600% BBB 8/13/2021 —
 15.0
——
 34.8
 Federal Home Loan Bank Discount Notes 0.304% - 0.360% 1/25/2017 —
 34.8
—
 31.1
 Occidental Petroleum Corporation 2.700% BBB 8/15/2022 —
 31.4
——
 45.0
 Federal Home Loan Bank Discount Notes 0.294% - 0.406% 1/27/2017 —
 45.0
—
 35.0
 Omnicom GP/Omnicom CAP 4.450% BBB+ 8/15/2020 —
 35.5
20.020.0
 20.0
 Oracle Corporation 1.900% A+ 9/15/2021 20.1
 20.0
11.611.6
 11.6
 Paccar Financial Corporation 2.000% A+ 9/26/2022 11.4
 11.7
——
 25.0
 Federal Home Loan Bank Discount Notes 0.416% 1/30/2017 —
 25.0
—
 19.3
 Paypal Holdings, Inc. 2.200% BBB+ 9/26/2022 —
 19.4
——
 34.7
 Federal Home Loan Bank Discount Notes 0.467% - 0.497% 2/1/2017 —
 34.7
—
 20.0
 PNC Bank, NA 2.315% A 12/9/2022 —
 20.0
——
 42.0
 Federal Home Loan Bank Discount Notes 0.406% 2/3/2017 —
 42.0
—
 20.0
 PNC Bank, NA 2.028% A 12/9/2022 —
 20.0
20.020.0
 20.0
 Skandinaviska Enskilda 1.875% A+ 9/13/2021 19.8
 19.9
——
 5.0
 Sumitomo Mitsui Financial Group 2.934% A- 3/9/2021 —
 5.1
——
 5.0
 Sumitomo Mitsui Financial Group 2.058% A- 7/14/2021 —
 5.0
101.4101.4
 101.4
 Swedish Export Credit 1.625% AA+ 11/14/2022 103.0
 101.0
23.023.0
 23.0
 The Walt Disney Company 1.830% A 9/1/2021 22.1
 23.1
——
 15.0
 Federal Home Loan Bank Discount Notes 0.416% 2/7/2017 —
 15.0
—
 17.1
 Toronto Dominion Bank 2.500% AA- 12/14/2020 —
 17.2
——
 10.2
 Federal Home Loan Bank Discount Notes 0.376% 2/10/2017 —
 10.2
—
 14.5
 Toronto Dominion Bank 2.170% A 3/17/2021 —
 14.5
——
 50.0
 Federal Home Loan Bank Discount Notes 0.386% - 0.487% 2/17/2017 —
 50.0
—
 10.0
 Toronto Dominion Bank 1.900% A 12/1/2022 —
 10.0
5.05.0
 —
 Truist Bank 1.339% A 3/9/2023 4.5
 —
——
 30.0
 Federal Home Loan Bank Discount Notes 0.365% 2/21/2017 —
 30.0
—
 20.0
 United Technologies Corporation 1.900% BBB+ 5/4/2020 —
 20.0
12.812.8
 12.8
 Wells Fargo Bank, NA 3.325% A+ 7/23/2021 12.8
 12.9
——
 30.0
 Federal Home Loan Bank Discount Notes 0.437% 2/22/2017 —
 30.0
—
 30.0
 Wells Fargo Bank, NA 2.082% A+ 9/9/2022 —
 30.0
—
 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
 —
TOTAL CORPORATE BOND SECURITIES
(Cost $535.1 and $1,265.4)
TOTAL CORPORATE BOND SECURITIES
(Cost $535.1 and $1,265.4)
 $526.7
 $1,268.3
MUNICIPAL BOND SECURITIES—0.1% and 0.1%
Principal         Fair Value at
 Issuer Coupon Rate 
Credit Rating(8)
 
Maturity
Date
 March 31, 2020 December 31, 2019
2020 2019 
            (Unaudited)  
$—
 $0.7
 Broward County Florida Airport System Revenue 1.844% A+ 10/1/2020 $—
 $0.6
—
 0.6
 Broward County Florida Airport System Revenue 1.874% A+ 10/1/2021 —
 0.5
0.6
 0.6
 Broward County Florida Airport System Revenue 1.936% A+ 10/1/2022 0.6
 0.6
—
 2.0
 California State Health Facilities Financing Authority 1.896% AA- 6/1/2021 —
 2.0
1.0
 1.0
 California State Health Facilities Financing Authority 1.893% AA- 6/1/2022 1.0
 1.0
—
 1.3
 Colorado State Health Facilities Authority HOS 2.075% A+ 11/1/2020 —
 1.2
0.8
 0.8
 Colorado State Health Facilities Authority HOS 2.185% A+ 11/1/2021 0.8
 0.8
1.1
 1.1
 Colorado State Health Facilities Authority HOS 2.237% A+ 11/1/2022 1.1
 1.1
—
 0.8
 Florida State Municipal Power Agency 1.966% A2 10/1/2020 —
 0.8
—
 1.1
 Florida State Municipal Power Agency 1.986% A2 10/1/2021 —
 1.2
—
 1.0
 Florida State Municipal Power Agency 2.064% A2 10/1/2022 —
 1.0
0.6
 0.6
 Hamilton County Ohio Healthcare Facilities 2.135% AA 6/1/2020 0.6
 0.6
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
Principal         Fair Value at
 Issuer Coupon Rate 
Credit Rating(8)
 
Maturity
Date
 March 31, 2020 December 31, 2019
2020 2019 
            (Unaudited)  
$0.9
 $0.9
 Harris County Texas Cultural Education Facilities 2.015% AA- 5/15/2020 $0.9
 $0.9
1.3
 1.3
 Harris County Texas Cultural Education Facilities 2.065% AA- 5/15/2021 1.3
 1.3
1.3
 1.3
 Harris County Texas Cultural Education Facilities 2.102% AA- 5/15/2022 1.3
 1.3
—
 0.5
 Indiana State Finance Authority 2.242% AA- 3/1/2020 —
 0.5
—
 1.1
 Lansing Michigan Board of Water and Light Utility System 1.952% AA- 7/1/2022 —
 1.2
—
 7.1
 Massachusetts State Water Resources 1.661% AA+ 8/1/2020 —
 7.1
—
 1.2
 Massachusetts State Water Resources 1.702% AA+ 8/1/2021 —
 1.2
—
 2.9
 Massachusetts State Water Resources 1.734% AA+ 8/1/2022 —
 2.9
—
 0.3
 Matanuska-Susitna Borough Alaska 2.016% AA+ 3/1/2023 —
 0.3
—
 0.5
 Midland County Texas Fresh Water Supply 1.872% AA- 9/15/2021 —
 0.5
—
 0.5
 Midland County Texas Fresh Water Supply 1.910% AA- 9/15/2022 —
 0.5
0.2
 0.2
 Park Creek Metropolitan District Revenue 2.292% AA 12/1/2022 0.2
 0.2
—
 0.2
 Stockton California Public Financing Authority 1.942% AA 10/1/2020 —
 0.2
—
 0.2
 Stockton California Public Financing Authority 2.048% AA 10/1/2021 —
 0.2
—
 0.1
 Stockton California Public Financing Authority 2.145% AA 10/1/2022 —
 0.1
—
 0.7
 Texas State University System Revenue Finance 1.760% Aa2 3/15/2020 —
 0.7
—
 0.5
 Texas State University System Revenue Finance 1.810% Aa2 3/15/2021 —
 0.5
—
 1.7
 Texas State University System Revenue Finance 1.839% Aa2 3/15/2022 —
 1.7
—
 0.5
 University of Akron 1.976% A1 1/1/2021 —
 0.5
TOTAL MUNICIPAL BOND SECURITIES
(Cost $7.7 and $33.3)
 $7.8
 $33.2
TOTAL OTHER MARKETABLE SECURITIES
(Cost $1,354.4 and $4,144.7)		 $1,347.3
 $4,150.2
TOTAL MARKETABLE SECURITIES
(Cost $2,154.8 and $4,830.7)		 $2,072.0
 $4,975.9

TIAA REAL ESTATE ACCOUNT
Principal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value at
September 30, 2017 December 31, 2016
2017 2016 
          (Unaudited)  
$—
 $25.0
 Freddie Mac Discount Notes 0.360% 2/10/2017 $—
 $25.0
—
 40.0
 Freddie Mac Discount Notes 0.365% 2/13/2017 —
 40.0
—
 30.0
 Freddie Mac Discount Notes 0.376% 2/14/2017 —
 30.0
—
 20.0
 Freddie Mac Discount Notes 0.467% 2/21/2017 —
 20.0
—
 27.0
 Freddie Mac Discount Notes 0.386% 2/27/2017 —
 27.0
—
 15.0
 Freddie Mac Discount Notes 0.401% 3/3/2017 —
 15.0
—
 35.2
 Freddie Mac Discount Notes 0.406% 3/7/2017 —
 35.2
—
 14.0
 Freddie Mac Discount Notes 0.411% 3/14/2017 —
 14.0
—
 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
 —
40.0
 —
 Freddie Mac Discount Notes 1.013% 10/16/2017 40.0
 —
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
 —
40.0
 —
 Freddie Mac Discount Notes 1.064% 12/13/2017 39.9
 —
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
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


UNITED STATES TREASURY SECURITIES—3.7%LOANS RECEIVABLE—5.7% and 6.5%5.0%
 Borrower Property Type 
Interest Rate(6)
 Maturity Date Fair Value at
PrincipalPrincipal Issuer 
Yield(4)
 
Maturity
Date
 Fair Value atPrincipal March 31, 2020 December 31, 2019
September 30, 2017 December 31, 2016
2017 2016 
20202020 2019 Borrower Property Type 
Interest Rate(6)
 Maturity Date March 31, 2020 December 31, 2019
       (Unaudited)      
$—
 $35.9
 United States Treasury Bills 0.345% - 0.369% 1/5/2017 $—
 $35.9
—
 $6.3
 $—
 $6.3
89.189.1
 87.5
 311 South Wacker Mezzanine Office 4.70% + LIBOR 6/7/2020 85.8
 86.8
79.579.5
 92.2
 Blackstone RioCan Retail Portfolio Mezzanine Retail 4.65% + LIBOR 6/9/2021 79.5
 92.2
60.060.0
 60.0
 River North Point Junior Mezzanine Office 4.30% + LIBOR 7/9/2020 60.0
 60.0
128.6128.6
 128.6
 Project Glacier Mezzanine Industrial 4.40% + LIBOR 11/9/2020 128.6
 128.6
53.953.9
 53.8
 SCG Oakland Portfolio Office 4.25% + LIBOR 3/1/2021 54.1
 53.8
——
 47.9
 United States Treasury Bills 0.423% - 0.428% 1/19/2017 —
 48.0
—
 20.0
 Crest at Las Colinas Station Mezzanine Apartments 5.11% + LIBOR 5/10/2021 —
 20.0
—
 36.1
 United States Treasury Bills 0.371% - 0.401% 1/26/2017 —
 36.1
—
 60.1
 United States Treasury Bills 0.363% - 0.423% 2/2/2017 ���
 60.1
—
 75.0
 United States Treasury Bills 0.315% - 0.426% 2/9/2017 —
 75.0
—
 48.0
 United States Treasury Bills 0.325% - 0.437% 2/16/2017 —
 48.0
—
 48.0
 United States Treasury Bills 0.448% - 0.473% 2/23/2017 —
 48.0
—
 36.0
 United States Treasury Bills 0.368% - 0.477% 3/2/2017 —
 36.0
—
 48.7
 United States Treasury Bills 0.386% - 0.518% 3/9/2017 —
 48.7
—
 59.9
 United States Treasury Bills 0.406% - 0.481% 3/16/2017 —
 60.0
—
 129.0
 United States Treasury Bills 0.380% - 0.533% 3/23/2017 —
 129.0
—
 25.9
 United States Treasury Bills 0.396% - 0.518% 3/30/2017 —
 25.9
—
 58.9
 United States Treasury Bills 0.411% - 0.509% 4/6/2017 —
 58.9
—
 130.8
 United States Treasury Bills 0.518% - 0.529% 4/13/2017 —
 130.8
—
 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
 —
60.060.0
 60.0
 SoNo Collection Mezzanine Retail 6.75% + LIBOR 8/6/2021 60.0
 60.0
14.714.7
 14.7
 Liberty Park Office 6.08% 11/9/2021 14.7
 14.7
125.0125.0
 125.0
 State Street Financial Center Mezzanine Office 6.500% 11/10/2021 124.4
 124.4
20.020.0
 —
 United States Treasury Bills 1.017% 11/24/2017 20.0
 —
20.0
 20.0
 Modera Observatory Park Mezzanine Apartments 4.34% + LIBOR 6/10/2022 19.9
 20.0
50.0
 —
 United States Treasury Bills 0.998% 11/30/2017 49.9
 —
16.316.3
 16.2
 San Diego Office Portfolio Mezzanine Office 2.45% + LIBOR 8/9/2022 15.1
 16.1
49.049.0
 —
 United States Treasury Bills 0.768% 12/7/2017 48.9
 —
49.0
 48.2
 San Diego Office Portfolio Senior Loan Office 2.45% + LIBOR 8/9/2022 49.5
 48.2
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
 —
20.820.8
 20.8
 Rosemont Towson Mezzanine Apartments 4.15% + LIBOR 9/9/2022 20.5
 20.8
33.833.8
 33.8
 Colony New England Hotel Portfolio Mezzanine Hotel 2.80% + LIBOR 11/9/2022 31.7
 33.8
101.4101.4
 101.4
 Colony New England Hotel Portfolio Senior Loan Hotel 2.80% + LIBOR 11/9/2022 101.3
 101.4
33.933.9
 33.9
 Exo Apartments Mezzanine Apartments 2.30% + LIBOR 1/9/2023 31.6
 33.9
101.6101.6
 101.6
 Exo Apartments Senior Loan Apartments 2.30% + LIBOR 1/9/2023 103.1
 101.6
13.313.3
 —
 Five Oak Mezzanine Office 2.35% + LIBOR 4/9/2023 13.3
 —
40.040.0
 —
 United States Treasury Bills 1.114% 1/18/2018 39.9
 —
40.0
 —
 Five Oak Senior Loan Office 2.35% + LIBOR 4/9/2023 40.0
 —
27.527.5
 27.5
 1330 Broadway Mezzanine Office 5.01% + LIBOR 8/10/2023 27.5
 27.5
82.082.0
 82.0
 Great Value Storage Portfolio Mezzanine Storage 7.88% 12/6/2023 77.9
 82.0
85.085.0
 85.0
 Park Avenue Tower Mezzanine Office 4.35% + LIBOR 3/9/2024 85.0
 85.0
71.071.0
 —
 United States Treasury Bills 1.132% 1/25/2018 70.8
 —
71.0
 71.0
 BREP VIII Industrial Loan Facility Mezzanine Industrial 5.00% + LIBOR 3/9/2026 71.0
 71.0
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
 —
20.020.0
 20.0
 Aspen Lake Office Portfolio Mezzanine Office 8.25% 3/10/2028 20.0
 20.0
95.095.0
 95.0
 Merritt on the River Office Portfolio Mezzanine Office 8.00% 8/1/2028 95.0
 95.0
100.0100.0
 100.0
 Charles River Plaza North Mezzanine Office 6.08% 4/6/2029 100.0
 100.0
53.053.0
 —
 Sol y Luna Apartments 6.55% 1/6/2030 53.0
 —
TOTAL LOANS RECEIVABLE
(Cost $1,574.5 and $1,504.5)
TOTAL LOANS RECEIVABLE
(Cost $1,574.5 and $1,504.5)
 $1,562.5
 $1,503.1
TIAA REAL ESTATE ACCOUNT
CONSOLIDATED SCHEDULES OF INVESTMENTS
(Dollar values shown in millions)


LOANS RECEIVABLE WITH RELATED PARTIES—0.3% and 0.2%
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
  Related Party Property Type 
Interest Rate(6)
 Maturity Date Fair Value at
Principal     March 31, 2020 December 31, 2019
2020 2019      
            (Unaudited)
  
$36.5
 $36.5
 MRA Hub 34 Holding, LLC Office 2.50% + LIBOR 9/1/2022 $36.5
 $36.5
32.8
 32.8
 THP Student Housing, LLC Apartment 3.20% 9/1/2024 32.0
 32.5
TOTAL LOANS RECEIVABLE WITH RELATED PARTIES
(Cost $69.3 and $69.3)		    $68.5
 $69.0
TOTAL INVESTMENTS
(Cost $22,939.5 and $25,697.4)		    $27,376.6
 $29,899.0
(1) 
The investment has a mortgage loan payable outstanding, as indicated in Note 6.9—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) 
YieldFor zero-coupon securities issued at a discount or premium to par, yield represents the annualized yield.yield to maturity. For all other securities, the coupon rate is presented.
(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 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 $5.5March 31, 2020 and December 31, 2019 were $2.4 million asand $25.2 million, respectively.
(8)
Credit ratings are sourced from S&P Global Ratings ("S&P"), Moody's Investors Services or Fitch Ratings, Inc.
(9)
On February 19, 2020, the Account purchased the 15% ownership interest of September 30, 2017.SITE Centers Corp in DDRTC Core Retail Fund, LLC, a joint venture between the Account and SITE Centers Corp. All properties and associated debt formerly held within DDRTC Core Retail Fund, LLC are now wholly-owned by the Account.
(10) 
On March 9, 2020, the Account purchased the 30% ownership interest of DJM Capital Partners ("DJM Capital") in PC Borrower, LLC, a joint venture between the Account and DJM Capital. The assetsretail property and associated debt formerly held in this investment were in liquidation as of May 2014, with final dissolution in 2017.
(11)
A partial disposition of assets heldwithin PC Borrower, LLC is now wholly-owned by the portfolio was completed on August 17, 2017.Account.




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, 20162019 (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:
General Risks of Acquiring and Owning Real Estate:Property. 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);
COVID-19 Risks. In response to the COVID-19 pandemic, governmental authorities throughout the world, including the United States, have taken significant measures to inhibit the spread of the disease, such as prohibiting people from congregating in heavily populated areas, instituting localized quarantines, restricting nonessential travel, issuing “stay-at-home” orders, closing schools, and most notably, restricting the types of businesses that may continue to operate. The restrictions have had an adverse impact on economic and market conditions across the United States. It is possible that public health officials and governmental authorities in the markets in which we own properties may impose additional restrictions in an effort to further slow the spread of the COVID-19 pandemic or may relax or revoke existing restrictions too quickly, which could, in either case, exacerbate the severity of adverse impacts on the economy. The COVID-19 pandemic, including these responsive measures, will likely have an adverse effect on the Account. For example, the negative impact of the COVID-19 pandemic on our tenants may include an immediate reduction in cash flow available to pay rent under our leases which, in turn, could adversely affect our own liquidity, and there can be no guarantee that additional liquidity will be readily available or available on favorable terms and could result in the Account exercising the liquidity guarantee. Moreover, the market volatility and economic uncertainty surrounding the COVID-19 pandemic may negatively impact our liquid investments, such as those in real estate investment trusts ("REIT") securities and mortgage backed securities ("MBS"). These and other consequences of the COVID-19 pandemic are expected to have an adverse effect on the Account’s business and results of operations;
General Risks of Selling Real Estate:Estate Investments. The risk that the sales price of a property might 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:Valuation and Appraisal Risk. 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:Borrowing Risk. 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 of default under unsecured lines of credit or credit facilities underwritten by third-party lenders, the risk associated with high loan to valueloan-to-value ratios on the Account’s properties (including the fact that the Account may have limited, or nozero 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 TransactionsInvestment and Cash Management:Management Risks Associated with Participant Transactions. 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 realnon-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:Investment Risk. The risks associated with joint ventures organized as limited partnerships or limited liability companies, as applicable,and real estate funds, including the risk that a co-venturer or fund manager may have interests or goals inconsistent with thosethat of the Account, the risk that a co-venturer or fund manager 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;
Real Estate Regulatory Matters:Risk. Uncertainties associated with environmental liability and regulations and other governmental regulatory matters such as zoning laws, rent control laws, and property taxes;
Foreign Investments:Environmental Risk. The risks associated with purchasing, owningthat the Account may be liable for damage to the environment or injury to individuals caused by hazardous substances used or found on its properties. Federal and disposing foreignstate environmental laws may also impose restrictions on the manner in which a property may be used, impose significant costs for environmental clean-up relating to certain real property investments (primarily(including remediating contaminated property), and require the Account to acquire third-party insurance related to environmental risks, all of which could adversely impact the Account’s investment returns;
Uninsurable Loss Risk. Certain catastrophic losses (e.g., from earthquakes, wars, terrorist acts, nuclear accidents, hurricanes, tsunamis, high winds, wildfires, inland or coastal floods, rising sea levels or environmental or industrial hazards or accidents) may be uninsurable or so expensive to insure against that it is economically disadvantageous for the Account to buy insurance to cover such losses. In such an event, the catastrophic losses could adversely impact the Account’s investment returns;
Physical Climate Change Related Financial Risk. Many of the Account’s commercial real estate properties),assets are located within geographical regions in the United States and foreign jurisdictions that currently are, and in the future will continue to be, adversely impacted by increasingly severe and adverse weather conditions across the globe, including, among others, earthquakes, hurricanes, tsunamis, high winds, wildfires, inland or coastal flooding, and rising sea levels. Any resulting losses from such climate-related changes and hazards could adversely impact the Account’s investment returns;
Global Economic Risks. National and regional economies and financial markets have become increasingly interconnected, which has increased the probability that conditions in one country, region or market might adversely impact issuers in a different country, region or market. Events such as war, terrorism, natural and environmental disasters and the spread of infectious illnesses, pandemics or other public health emergencies may adversely affect the global economy and the securities, local commercial real estate markets and issuers in which the Account invests. Recent examples of such events include the COVID-19 pandemic that was first detected in Wuhan, China in December 2019 and has since spread worldwide, resulting in government imposed shutdowns across the globe. These events have and could continue to reduce consumer demand and economic output, result in market closure,

travel restrictions or quarantines, and generally have a significant impact on the economy, and, as a result, have an adverse effect on the Account’s business;
ESG Criteria Risk. The risks that the Account’s utilization of environmental, social and governance ("ESG") criteria in its commercial real estate underwriting may result in the Account foregoing some commercial real estate market opportunities that could be beneficial to the Account. Consequently, the Account may underperform other investment vehicles that do not utilize such ESG criteria in selecting portfolio properties;
Foreign Real Property Investment Risk. Foreign commercial real properties, foreign real estate loans, and foreign debt investments may experience unique risks such as changes in currency exchange rates, imposition of market controls or currency exchange controls, seizure, expropriation or nationalization of assets, political, risk, the risk associated with currency fluctuations (whether hedgedsocial or not),diplomatic events or unrest, regulatory and taxation risks and risks ofassociated with enforcing judgments;judgments in foreign countries that could cause the Account to lose money. The risks described above often increase in countries with emerging markets;
ConflictsRisk of Interest:Investing in REIT Securities Conflicts. Investments in REIT securities are subject to many of interestthe same general risks associated with TIAA serving as investment managerdirect real property ownership. In particular, equity REITs may be affected by changes in the value of the Accountunderlying properties owned by the entity, while mortgage REITs may be affected by the quality of any credit extended. In addition to these risks, because REIT investments are securities and providergenerally publicly traded, they may be exposed to market risk and potentially significant price volatility due to changing conditions in the financial markets and, in particular, changes in overall interest rates, regardless of the liquidity guarantee atvalue of the same time as TIAA and its affiliates are serving as an investment manager to otherunderlying 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;REIT may own;
Required Property Sales:Risks of Mortgage-Backed Securities. The risk that, if TIAA wereAccount from time to own too large a percentagetime has invested in mortgage-backed securities and may in the future invest in such securities. Mortgage-backed securities, such as commercial mortgage-backed securities ("CMBS") and residential mortgage-backed securities ("RMBS"), are subject to many of the Account’s accumulation units through fundingsame general risks inherent in real estate investing, making mortgage loans and investing in debt securities. The underlying mortgage loans may experience defaults, are subject to prepayment risk or extension risk and are highly sensitive to changes in interest rates, liquidity of the liquidity guarantee (as determined bysecondary market, economic conditions impacting financial institutions and the independent fiduciary),credit markets generally, and changes in governmental policies impacting Fannie Mae and Freddie Mac and/or U.S. Government programs related to mortgages that may be implemented in 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;future;
Risks of Investing in Mortgage Loans and Related Investments. Because the Account’s investment strategy includes investments in mortgage loans (i.e., the Account serving as lender), the Account will be subject to the risks inherent in making mortgage loans, including, among others, (i) borrower default, bankruptcy and insolvency that results in the Account being unable to recover some or all of its original investment, (ii) mechanic’s or tax liens that may have priority over the Account’s security interest, (iii) a deterioration in the financial condition of tenants, (iv) changes in interest rates for the Account’s variable-rate mortgage loans and other debt instruments that may increase or decrease the investment’s yield, (v) the risk that borrowers pay off their mortgage loans earlier or later than expected resulting in a decline in income, and (vii) the costs of hedging strategies for domestic and foreign loans or securities that may increase the Account’s transactions costs and reduce its performance;
Risks of U.S. Government and Government Agency Securities:Securities.Risks associated with investment securities issued by U.S. governmentGovernment agencies and U.S. government-sponsoredGovernment-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,Government, which could adversely affect the pricing and value of such securities. Such securities are also subject market movements, regulatory changes, changes in political or economic conditions or downgrades or threatened downgrades of the credit rating for U.S. Government obligations generally 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 athe security at a favorable time;time. U.S. Government securities generally present limited credit risk compared to other types of debt securities but are not free from risk;
Risks of Corporate Obligations. The Account’s investment in corporate obligations (such as commercial paper and other types of corporate debt) may be subject to general dislocations in the finance or credit markets, fluctuations in transaction activity that could impair the Account’s ability to dispose of a corporate debt security at a favorable time, and the risk that the credit quality of the corporate issuer will deteriorate, any of which could have a negative impact on the value of the investment; and

Risks of Liquid, AssetsFixed-Income Investments and Securities:Other Securities. Risks associated with investments in liquid, fixed-income investments and real estate-related liquid assets (which could include, from time to time, registered or unregistered real estate investment trust (“REIT”)REIT securities and commercial mortgage-backed securities (“CMBS”))CMBS), and non-real estate-related liquid assets, including:
Financial/credit risk—RisksIssuer Risk (Financial risk)-The risk that the issuer will not be able to pay principal and interest when due or that the issuer’s earnings will fall;
Credit Risk (a type of Issuer Risk)-The risk that the issuer of fixed-income investments may not be able or willing to meet interest or principal payments when the payments become due;
Credit Spread Risk-The risk that credit spreads (i.e., the difference in yield between securities that is due to differences in each security’s respective credit quality) may increase when market participants believe that bonds or other fixed-income securities generally have a greater risk of default, which could result in a decline in the market values of the Account’s debt or other fixed-income securities;
Market volatility risk—Volatility, Liquidity and Valuation Risk (types of Market Risk)-The risk that the changing conditions in financial markets may cause the Account’s investments to experience price volatility;
Interest rate volatility risk—Rate Risk (a type of Market Risk)-The 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;
Downgrade Risk-The risk that securities are subsequently downgraded should TIAA and/or rating agencies believe the issuer’s business outlook or creditworthiness has deteriorated;
Income Volatility Risk-The risk that the level of current income from a portfolio of fixed-income investments may decline in certain interest rate environments;
Call Risk-The risk that, during periods of falling interest rates, an issuer may call (or repay) a fixed-income security prior to maturity, resulting in a decline in the Account’s income;
Prepayment Risk-The risk that, during periods of falling interest rates, borrowers may pay off their loans sooner than expected, forcing the Account to reinvest the unanticipated proceeds at lower interest rates and resulting in a decline in income;
Extension Risk-The risk that, during periods of rising interest rates, borrowers may pay off their mortgage and other loans later than expected, preventing the Account from reinvesting principal proceeds at higher interest rates and resulting in less income than potentially available;
U.S. Government Securities Risk-Securities issued by the U.S. Government or one of its agencies or instrumentalities may receive varying levels of support from the U.S. Government, which could affect the Account’s ability to recover should they default. To the extent the Account invests significantly in securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, any market movements, regulatory changes or changes in political or economic conditions that affect the securities of the U.S. Government or its agencies or instrumentalities in which the Account invests may negatively impact the Account’s performance;
State and Municipal Investment Risk-The risk that events affecting states and municipalities, including severe financial difficulties and continued budget deficits, may adversely impact the Account’s investments and its performance;
Foreign Securities Risk-Foreign securities investments may experience unique risks such as changes in currency exchange rates, imposition of market controls or currency exchange controls, seizure, expropriation or nationalization of assets, and political, social or diplomatic events or unrest that could cause the Account to lose money. The risks described above often increase in countries with emerging markets;
Emerging and Frontier Markets Risk-The risk of foreign investment often increases in countries with emerging markets. For example, these countries may have more unstable governments than developed countries, and their economies may be based on only a few industries. Because their financial markets may be very small, share prices of financial instruments in emerging market countries may be volatile and difficult to determine. Financial instruments of issuers in these countries may be less liquid than those of issuers in more developed countries. In addition, foreign investments are subject to a variety of special restrictions in many emerging market countries. Frontier markets are those emerging markets that are

considered to be among the smallest, least mature and least liquid, and as a result, the risks of investing in emerging markets are magnified in frontier markets;
Fixed-Income Foreign Investment Risk-Investment in fixed-income securities or financial instruments of foreign issuers involves increased risks due to adverse issuer, political, regulatory, currency, market or economic developments. These developments may impact the ability of a foreign debt issuer to make timely and ultimate payments on its debt obligations to the Account or impair the Account’s ability to enforce its rights against the foreign debt issuer. These risks are heightened in emerging or developing markets. Foreign fixed-income investments may also be less liquid and more difficult to value than fixed-income investments in U.S. issuers;
Sovereign Debt Risk-The risk that the issuer of non-U.S. sovereign debt or the governmental authorities that control the repayment of such debt may be unable or unwilling, due to social, political or economic factors, to repay principal or interest when due, resulting in losses to the Account;
Supranational Debt Risk-The risk that the issuer of multinational or supranational foreign debt (e.g., the European Union or the International Monetary Fund (IMF)) that controls the repayment of such debt may be unable or unwilling, due to social, political or economic factors such as the sudden or gradual disintegration of the multinational or supranational organization, to repay principal or interest when due, resulting in losses to the Account;
Active Management Risk-The risk that the Account’s investment strategy, investment selection or trading execution may cause the Account to underperform relative to a comparison index or accounts or issuers with similar investment objectives;
Currency Risk-The risk that foreign (non-U.S.) currencies may decline in value relative to the U.S. dollar and adversely affect the value of the Account’s investments in foreign currencies, securities denominated in foreign currencies or derivative instruments that provide exposure to foreign currencies;
Derivatives Risk-The risks associated with investing in derivatives and other types of hedging strategies may be different and greater than the risks associated with directly investing in the underlying securities and other instruments. The Account may use futures, options, or forwards, and the Account may also use more complex derivatives such as swaps that might present liquidity, credit and counterparty risk. When investing in derivatives, the Account may lose more than the principal amount invested;
Currency Management Strategies Risk-Currency management strategies, including the use of forward currency contracts and other derivatives, may substantially change the Account’s exposure to currencies and currency exchange rates and could result in losses to the Account if currencies do not perform as anticipated;
Counterparty and Third Party Risk-The Account’s transactions involving a counterparty to a derivative or other instrument, or to a third party responsible for servicing the instrument, are subject to the credit risk of the counterparty or third party, and to the counterparty’s or third party’s ability to perform in accordance with the terms of the transaction;
Regulation S and Rule 144A Securities Risk-The risk that SEC Regulation S and Rule 144A securities may be less liquid, and have less disclosure and investor protections, than publicly traded securities. Such securities may involve a high degree of business and financial risk and may result in losses to the Account;
Illiquid Investments Risk-The risk that illiquid investments may be difficult for the Account to sell for the value at which they are carried, if at all, or at any price within the desired time frame; and
Deposit/money market risk—RisksMoney Market Risk-The risk 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 "Part II, Item 1A, Risk Factors" in this section belowReport 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, 2020 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, under the laws of New York, in February 1995 as an insurancea 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 domestic and foreign 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, domestic and foreign, registered and unregistered equity investments in REITs, which investments may consist of registered or unregistered common or preferred stock interests;
private real estate limited partnerships and limited liability companies;companies (collectively, "real estate funds");
investments in equity or debt securities of domestic and foreign companies whose operations involve real estate (i.e.(i.e., that primarily own, develop or manage real estate) which may not be REITs; and
domestic or foreign loans, including conventional commercial mortgage loans, participating mortgage loans, secured domestic and foreign (including U.K.) mezzanine loans, subordinated loans and collateralized mortgage obligations, including 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 asincluding publicly traded REITs and CMBS, managementCMBS. 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, 2020, publicly traded REIT securities comprised approximately 4.5%2.8% of the Account’s net assets, and the Account held no CMBS as of such date.
In making commercial real estate investments within the Account, TIAA seeks to make investments that are suitable from a financial perspective and whose activities are generally consistent with industry recognized ESG criteria. The Account intends to promote awareness of these criteria to its joint venture partners, vendors and other stakeholders in connection with portfolio related activity involving commercial real estate transactions. TIAA believes awareness, and, as appropriate, implementation of ESG criteria in commercial real estate holdings is beneficial to total long-term returns for the Account. In its evaluation of commercial real estate opportunities, the Account will take ESG

considerations into account as part of the financial assessment of a commercial real estate portfolio asset, and not to achieve a desired outcome or as an investment qualification or screen. Ultimately, the Account will make an investment decision that incorporates ESG criteria only to the extent that the criteria is reasonably expected to enhance the ability to achieve desired returns for the Account.
Non-Real Estate-Related Investments.Liquid, Fixed-Income 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,the following types of liquid, fixed income investments; namely:
Short-term government-related instruments, including U.S. Treasury bills;or U.S. Government agency securities;
Long-term government-relatedIntermediate-term or long-term government related instruments, such as bond or other fixed-income securities issued by U.S. governmentGovernment agencies, U.S. States or municipalities or U.S. government sponsored entities;Government-sponsored entities as well as foreign governments and their agencies (including those in emerging markets) and supranational or multinational organizations (e.g., the European Union);
Short-term non-government-related instruments, such as money market instruments and commercial paper;
Long-term non-government-relatedIntermediate-term or long-term non-government related instruments, such as corporate debt securities or asset-backed securities (“ABS”) issued by domestic or foreign entities, including domestic or foreign mezzanine or other debt, MBS, RMBS, debt securities of foreign governments, and collateralized debt (“CDO”), collateralized bond (“CBO”) and collateralized loan (“CLO”) obligations, but only if such non-government related instruments are investment-grade securities;
Money market instruments and other cash equivalents. These will usually be high-quality, short-term debt instruments, including U.S. Government or government agency securities, commercial paper, certificates of deposit, bankers’ acceptances, repurchase agreements, interest-bearing time deposits, and corporate debt securities; and
Stock ofTo a limited extent, privately issued (or non-publicly traded) debt securities, including Rule 144A securities, issued by domestic and foreign companies that do not primarily own or manage real estate.estate, but only if such domestic and foreign privately issued debt securities are investment-grade securities.

However, from time to time, theThe Account’s non-real estate-related liquid, fixed-income 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.outflows. 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, fixed-income 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, ABS, RMBS, CMBS and CMBS,MBS, 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 or improve direct real estate investments, pay expenses or repay indebtedness.
Foreign Investments.Investments. The Account from time to time willmay also make foreign real estate and foreign real estate-related investments and foreign liquid, fixed-income investments. Under the Account’s investment guidelines, investments in direct foreign real estate and real estate loans, together with foreign real estate-related securities and foreign non-real estate-related liquid, fixed-income investments may not comprise more than 25% of the Account’s net assets. However, management doesn't intend such foreign investments, in the aggregate, to exceed 10% of the Account's net assets. As of September 30, 2017,March 31, 2020, the Account did not hold any foreign real estate investments.
In managing any domestic or foreign mezzanine debt or other domestic or foreign loans or securities, the Account may enter into certain derivatives transactions (including forward currency contracts and swaps, futures contracts, put and call options and other hedging transactions) in order to hedge against the risks of exchange rate uncertainties, interest

THIRDrate uncertainties and foreign currency or market fluctuations impacting the Account’s domestic or foreign investments. The Account does not intend to speculate in such transactions.
FIRST QUARTER 20172020 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
2019 1Q20 2020 2021
Economy(1)
  
Gross Domestic Product ("GDP") 1.5% 1.2%3.1%3.0% 2.2% 2.4%2.3% (4.8)% (4.5)% 3.7%
Employment Growth (Thousands) 2,240 498562274 2,100 1,8002,112 (381) (3,180) 2,160
Unemployment Rate 4.9% 4.5%4.4%4.2% 4.4% 4.1%3.7% 4.4% 9.3% 6.9%
Interest Rates(2)
  �� 
10 Year Treasury 1.8% 2.4%2.3%2.2% 2.3% 2.8%2.1% 0.7% 0.9% 1.4%
Sources: Blue Chip Economic Indicators, Blue Chip Financial Forecasts,Bloomberg, 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.
According to the Bureau of Labor Statistics, the U.S. economy began the year strong, adding 214,000 and 275,000 jobs during January and February, respectively. However, the arrival of COVID-19 rapidly changed the economic outcome of the first quarter. On March 11, 2020, the World Health Organization announced that COVID-19 had become a pandemic. As the COVID-19 pandemic spread across the U.S. in March, many state governors instituted "stay-at-home" orders which temporarily required all non-essential businesses to work remotely or temporarily curtail operations. These orders, designed to help moderate the severity of the outbreak and its immediate impact on healthcare resources, ultimately had a substantial impact on the U.S. economy. The U.S. economy lost 870,000 jobs in the month of March. The increase of unemployment claims filed in April suggest that job losses in April will be more severe than the March decline.
In March 2020, the Federal Open Market Committee (“FOMC”) votedReserve enacted multiple emergency actions in Septemberresponse to maintain the target range foreconomic disruption caused by the COVID-19 pandemic. These actions, such as lowering the federal funds rate at 1.0% to 1.25% “in view0.00%-0.25% and committing to purchase an unlimited amount of realizedTreasury bonds and expected labor market conditions and inflation”, as indicatedagency MBS, have kept the credit markets functioning. The broad array of actions aggregate to the largest fiscal stimulus in the September meeting minutes.history, constituting over 10% of U.S. GDP. The committee expectsFederal Reserve has consistently signaled that economic conditionsit will continue to evolve in a manner that will warrant gradual rate increases. The FOMC is widely expectedtake aggressive measures to raise the federal funds rate target range by 25 basis points at the December meeting.
Despite damage endured by recent hurricanes and related distortions in September’s economic data,support the U.S. economy has demonstrated consistent momentum and GDP is expected to increase at above-trend rates through next year. Blue Chip economists expect GDP to increase at a 2.2% rate for all of 2017 and at a 2.4% 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.COVID-19 pandemic.

Real Estate Market Conditions and Outlook
Commercial real estate conditions remained relatively steady duringbegan to show the thirdimpact of the COVID-19 pandemic in first quarter of 2017. Tenant demand was generally2020, though results are largely insulated by strong enoughperformance carried forward from previous quarters. According to support modest vacancy rate improvementsCB Richard Ellis Econometric Advisors ("CBRE-EA"), markets with a sizable public sector or an established technology presence will best absorb the shocks to their local economies, while tourism hubs like Orlando and Las Vegas are most likely to have a longer lasting negative impact from the COVID-19 pandemic.
Real estate market conditions are expected to deteriorate in the officenear term. Real estate transactions are expected to slow significantly until the long-term impact of the COVID-19 pandemic on the U.S. economy is fully understood and industrial sectors while apartment and retail marketeconomic conditions softened. Transaction activity continuedstabilize. As the root causes of the decline are not considered structural, there is cautious optimism that conditions may recover at a quicker pace than after the financial crisis of 2007-2009.
While real estate across the country is likely to weaken comparedundergo distress in the near-term, the Account benefits from its ample liquidity resources, which allow the Account to 2016 levels. Real Capital Analytics (“RCA”) reported that sales of office, industrial, retail, and multi-familyweather economic downturns without liquidating properties totaled $102.2 billion during third quarter 2017, a 5.1% decline from third quarter 2016.at

suboptimal pricing. Property pricing as calculated by the Green Street Advisor Commercial Property Price Index (“CPPI”) increased 1.0% duringdecreased by 1.4% from the third quarter 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.
prior quarter. For the quarter ending September 30, 2017,March 31, 2020, the NCREIF Fund Index Open-End Diversified Core Equity (“NFI-ODCE”) Equal Weight total return, net of fees was 1.68%. 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 directly held real estate assets generated a 1.51% total return of 1.10%.

chart-ff6fe8eae10558d492e.jpg
The outbreak of the COVID-19 pandemic and the subsequent global pandemic began significantly impacting the U.S. and global financial markets and economies during the third quarter ended March 31, 2020. The worldwide spread of 2017. Total returns were positive for the 30th consecutive quarter, butCOVID-19 pandemic has created significant uncertainty in the global economy. At this time the Account reasonably expects tenants will request certain rent relief and lease modifications as a result of the pandemic; however, such requests have not been significant as of March 31, 2020. The duration and extent of COVID-19 over the long-term cannot be reasonably estimated at this stage intime. The ultimate impact of the cycle, income isCOVID-19 pandemic and the primary driver of returns.

tiaa-realest_chartx20367a01.jpg
Occupancy inextent to which the COVID-19 pandemic impacts the Account’s properties averaged 91.1% leased during the third quarterbusiness, results of 2017 as compared with 91.4% during second quarter. operations, investments, and cash flows will depend on future developments, which are highly uncertain and difficult to predict.
Data for the Account’s top five markets in terms of market value as of September 30, 2017March 31, 2020 are provided below. TheseThe five markets presented below represent nearly half43.2% of the Account’s total real estate portfolio. Across all markets, the Account’s properties are 91.6% leased.
Top 5 Metro Areas by Fair Market Value(1)Account % 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
Account % Leased Fair Value Weighted(2)
Number of Property Investments
Metro Area Fair Value as a % of Total RE Portfolio(3)
Metro Area Fair Value as a % of Total Investments
New York-Jersey City-White Plains, NY-NJ93.3%1613.1%10.3%
Washington-Arlington-Alexandria, DC-VA-MD-WV86.4%1311.4%9.0%82.0%1710.9%9.3%
Los Angeles-Long Beach-Glendale, CA86.5%128.9%7.0%93.8%1610.4%8.9%
Boston, MA91.6%57.1%5.5%
Seattle-Bellevue-Everett, WA91.8%65.8%4.6%
New York-Jersey City-White Plains, NY-NJ81.0%127.8%6.7%
Boston-Cambridge-Newton, MA-NH89.5%87.6%6.5%
San Francisco-Oakland-Hayward, CA85.6%106.5%5.5%
*
(1)
The table above has been standardized to depict metropolitan statistical area ("MSA") definitions. Prior iterations of this table presented metropolitan divisions, which represent a subset of the larger MSA.
(2)
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.
**
(3)
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
FinanceAs the COVID-19 pandemic spread across the country, many state and professional & business services have been the traditional driverslocal governments instituted "stay-at-home" orders requiring employees to work remotely. The rapid onset of the demand foroutbreak caused companies to significantly reduce the number of on-site employees in a matter of days. Social distancing efforts are likely to continue across the country in the second quarter, especially in gateway cities such as New York and Los Angeles. Moreover, even as government restrictions are eased, employers will likely be cautious in returning employees to offices, especially if telecommuting proves an effective alternative. As of March 31, 2020, the Account's rents from office space. tenants were not materially affected, but the duration of the COVID-19 pandemic remains unknown, and its continued effect on the economy significantly increases the likelihood that tenants will undergo financial distress.
The financial services sector added 29,000 jobs duringimpact of the thirdCOVID-19 pandemic on vacancies is not likely to be observed until the latter half of 2020. Vacancy nationwide increased from 12.1% in the fourth quarter of 2017 as compared2019 to 41,000 during the second quarter. The professional and business services sector, which includes many facets 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 decline12.3% in the national office vacancy rate to 12.9%,first quarter of 2020, as reported by CB Richard Ellis Econometric Advisors (“CBRE-EA”)CBRE-EA. Vacancies have risen most notably in geographic locations with significant exposure to oil and gas (e.g,. Several high-tech markets including 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.Houston, Dallas). The vacancy rate forof the Account’s office portfolio however, increased to average 15.1% during the third quarter, from 14.8%14.0% in the second quarter. The loss offirst quarter as compared to 11.9% in the prior quarter, driven primarily by a public sector tenant inlarge scheduled lease expiration at one of the Account’sAccount's properties in Washington, DC contributedthe San Francisco metro area. The vacant space is already under contract with the new lease beginning in May 2020. The increase in the Boston vacancy rate was also caused by a scheduled lease expiration. Demand for office space in the Boston metro area has been strong over the last several quarters, but the COVID-19 pandemic introduces an unknown variable into the leasing environment that could cause the lease-up process to the rise in vacancy in that area.slow. The 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 leaseterm as legacy tenants fully vacate the properties and redevelopment efforts continue. Moreover, as the New York metro area was recently signed at oneseverely impacted by the COVID-19 pandemic, vacancy rates in the region may remain elevated for a longer duration depending on the continued effects of the Account’s large assets in Los Angeles, which should bring the vacancy rate down in subsequent quarters.COVID-19 pandemic.
     Account Square
Foot Weighted
Average Vacancy		 Market
Vacancy*		     Account Square
Foot Weighted
Average Vacancy		 
Market
Vacancy(2)
Top 5 Office Metropolitan Areas(1) 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		 Q1 2020 Q4 2019 Q1 2020 Q4 2019
Account / Nation     15.1% 14.8% 12.9% 13.0%     14.0% 11.9% 12.3% 12.1%
Boston-Cambridge-Newton, MA-NH $1,537.4
 5.6% 12.0% 8.6% 9.0% 8.8%
Washington-Arlington-Alexandria, DC-VA-MD-WV $1,475.0
 5.4% 16.5% 13.7% 15.4% 15.6% 1,469.1
 5.4% 12.8% 12.8% 14.6% 13.8%
Boston, MA 1,467.0
 5.4% 10.9% 11.3% 9.8% 9.8%
New York-Jersey City-White Plains, NY-NJ 1,208.5
 4.4% 32.8% 28.2% 8.7% 8.7%
San Francisco-Redwood City-South San Francisco, CA 1,132.6
 4.2% 8.3% 6.6% 7.1% 7.4% 1,039.9
 3.8% 13.8% 1.1% 5.8% 5.2%
New York-Jersey City-White Plains, NY-NJ 1,125.2
 4.1% 22.5% 20.0% 9.4% 9.5%
Los Angeles-Long Beach-Glendale, CA 742.2
 2.7% 27.0% 27.6% 13.6% 13.7% 886.4
 3.2% 4.0% 2.9% 11.8% 11.5%
*
(1)
The table above has been standardized to depict metropolitan statistical area ("MSA") definitions. Prior iterations of this table presented metropolitan divisions, which represent a subset of the larger MSA.
(2)
Source: CBRE - EA.CBRE-EA. Market vacancy is the percentage of space available for rent. Account vacancy is 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, all of which have been negatively impacted by the COVID-19 pandemic. Economists are projecting that U.S. GDP will likely suffer a large contraction in the second quarter of 2020. Declines in consumer spending as a result of job losses and government "stay-at-home" orders have caused and will continue to cause industrial production to slow. There is some optimism that the economy will rebound quickly after reaching its trough (commonly known as a "V" shaped recovery), but the possibility of a long duration recession (commonly known as a "U" shaped recovery) exists. Despite an unfavorable near-term outlook, when compared to the four core real estate sectors, the industrial sector is best positioned to weather the economic volatility. Demand for industrial space was robust coming into 2020, and while

new supply has likewise been strong, vacancy was continuing to decline due to excess demand. Additionally, the COVID-19 pandemic is accelerating the long-term shift to e-commerce, sales in particular have boosted warehouse demand. Duringwhich has been a key factor driving industrial demand over the third quarter, CBRE-EA reportedlast several years. As of March 31, 2020, the Account's rents from industrial tenants were not materially affected, but the duration of the COVID-19 pandemic remains unknown, and its continued effect on the economy increases the likelihood that some tenants may undergo financial distress.
The impact of the COVID-19 pandemic on vacancies is not likely to be observed until the latter half of 2020. The national industrial availability rate decreased to 7.7% after ending the second quarter at 7.8%. With supply beginning to increase, industrial market conditions may fluctuate between modest improvements and a general flattening in availability at this pointincreased from 7.2% in the cycle.
prior quarter to 7.3% in the first quarter of 2020, as reported by CBRE-EA.Vacancies are highest in geographic locations with significant exposure to oil and gas (e.g,. Houston, Dallas). The average availabilityvacancy rate of the Account’s industrial properties increased to 9.7%6.1% in the thirdfirst quarter of 20172020 from 8.2% during4.7% in the second quarter. Availability rates in three of the Account’s top five industrial markets were near or well below their respective market averages. Several tenants vacatedprevious quarter, primarily driven by space incoming available at one of the Account’s Los AngelesAccount's properties causingin the average vacancyWashington, DC metro area. Capital improvements are taking place at the property to rise in that area. One tenant downsized a significant amount of space in oneincrease the value of the Account’s Tacoma properties, contributingspace to potential tenants. Elevated vacancy in the vacancy rise there, butHouston metro area is likely to persist over the near term, as depressed oil prices have caused a new tenant has since signed a lease to backfillstall in the vacant space.

local leasing environment.
      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
Account / Nation     9.7% 8.2% 7.7% 7.8%
Riverside-San Bernardino-Ontario, CA $772.2
 2.8% 0.0% 0.0% 6.2% 6.4%
Los Angeles-Long Beach-Glendale, CA 320.1
 1.2% 9.0% 5.1% 4.2% 3.9%
New York-Jersey City-White Plains, NY-NJ 307.2
 1.1% 2.4% 3.2% 7.2% 7.0%
Tacoma-Lakewood, WA 295.2
 1.1% 7.3% 4.1% 4.7% 4.7%
Dallas-Plano-Irving, TX 263.9
 1.0% 4.7% 6.1% 8.0% 8.1%
      Account Square
Foot Weighted
Average Vacancy		 
Market
Vacancy(2)
Top 5 Industrial Metropolitan Areas(1)
 Total Sector
by Metro Area
($M)		 % of Total
Investments		 Q1 2020 Q4 2019 Q1 2020 Q4 2019
Account / Nation     6.1% 4.7% 7.3% 7.2%
Riverside-San Bernardino-Ontario, CA $987.2
 3.6% 0.0% 0.0% 6.2% 6.2%
Seattle-Tacoma-Bellevue, WA 409.6
 1.5% 3.3% 2.9% 5.2% 5.3%
Los Angeles-Long Beach-Anaheim, CA 384.2
 1.4% 4.5% 5.1% 5.3% 4.5%
Dallas-Fort Worth-Arlington, TX 337.3
 1.2% 8.8% 8.5% 8.5% 8.2%
Houston-The Woodlands-Sugar Land, TX 273.2
 1.0% 19.7% 16.0% 10.4% 9.7%
*
(1)
The table above has been standardized to depict MSA definitions. Prior iterations of this table presented metropolitan divisions, which represent a subset of the larger MSA.
(2)
Source: CBRE-EA. Market vacancy is the percentage of space available for rent. Account vacancy is the square foot-weighted percentage of unleased space.
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 COVID-19 pandemic resulted in an economic shock to some U.S. renters in the first quarter, especially those employed by non-essential businesses with limited abilities to telecommute. Job losses and furloughs quickly accelerated across the country in March and April as some companies were forced to temporarily suspend or significantly limit operations to slow the outbreak. The economic shock has been most pronounced on low and middle-income renters, who are less likely to have savings or access to credit to soften the blow when income from employment is lost. The federal government funded several programs in the first quarter to partially offset the financial impact of the COVID-19 pandemic, the most notable actions to low and middle-income renters being a one-time direct payment of $1,200 to every qualifying taxpayer (with an additional $500 for every child) and an emergency increase of $600 per week to those collecting unemployment benefits. While these actions have partially offset some of the negative impact of the COVID-19 pandemic, renters that find themselves out of work or underemployed will continue to be financially challenged so long as businesses remain closed. As of March 31, 2020, the Account's rents from multifamily tenants were not materially affected by the COVID-19 pandemic; however, the duration of the COVID-19 pandemic remains unknown, and its continued effect on the economy increases the likelihood that some tenants may undergo financial distress.
The impact of the COVID-19 pandemic on vacancies is not likely to be observed until the latter half of 2020. The national apartment vacancy rate increased from 4.3% in the prior quarter to 4.6% during the third4.5% in first quarter of 20172020, as comparedreported by RealPage, Inc. The sector has long benefited from strong fundamentals, such as a tight labor market and a long-term trend of first-time buyers delaying home ownership and renting for longer than historical precedent. However,

the COVID-19 pandemic is causing the labor market to 4.5% during third quarter 2016. CBRE-EA is expecting market conditions to continue to soften as new supply is delivered to the market. Overchange rapidly, and multifamily demand will likely cool over the next year, the supply pipeline is expectedseveral months and rising vacancies are expected. Student housing properties may be especially challenged until universities authorize students returning to peak and market conditions should begin to stabilize.
campus. The vacancy rate of the Account’s multi-familyapartment properties fellincreased to 6.4% during7.3% in the thirdfirst quarter of 2020 as compared to 7.0% in the secondprior quarter. As shownRenovations are proceeding at several properties in the following table, average vacancy ratesAccount's portfolio, including some in the Account’s top five apartment marketsWashington, Los Angeles and Denver metro areas. The renovation efforts are at or above their comparable market averages. Strong leasing activity at oneexpected to enhance the long-term value of the Account’simpacted properties, but vacancy in New York improved vacancy tothese metro areas may persist above the market average. The delivery and lease-up of several new projectsaverages 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 summernear-term while the overall market experienced significant deliveries.renovations continue.
     Account Units
Foot Weighted
Average Vacancy		 Market
Vacancy*		     Account Units Weighted
Average Vacancy		 
Market
Vacancy(2)
Top 5 Apartment Metropolitan Areas(1) 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		 Q1 2020 Q4 2019 Q1 2020 Q4 2019
Account / Nation     6.4% 7.0% 4.6% 4.6%     7.3% 7.0% 4.5% 4.3%
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% $760.0
 2.8% 6.7% 7.1% 4.1% 4.0%
Los Angeles-Long Beach-Glendale, CA 558.9
 2.1% 6.2% 5.9% 4.0% 3.9%
Los Angeles-Long Beach-Anaheim, CA 699.1
 2.6% 8.0% 7.0% 3.9% 3.7%
Miami-Fort Lauderdale-West Palm Beach, FL 577.9
 2.1% 8.4% 7.4% 3.8% 3.8%
Denver-Aurora-Lakewood, CO 327.9
 1.2% 7.7% 5.3% 4.9% 5.2% 422.3
 1.5% 8.9% 7.0% 5.3% 5.1%
Fort Lauderdale-Pompano Beach-Deerfield Beach, FL 295.9
 1.1% 8.3% 12.3% 6.0% 5.6%
New York-Newark-Jersey City, NY-NJ-PA 364.6
 1.3% 0.7% 1.8% 2.3% 2.5%
*
(1)
The table above has been standardized to depict MSA definitions. Prior iterations of this table presented metropolitan divisions, which represent a subset of the larger MSA.
(2)
Source: RealPage. Market vacancy is the percentage of units vacant. The Account’s vacancy is the percentage of unleased units.
Retail
While all core real estate sectors have been negatively impacted by the COVID-19 pandemic, the impact to the retail sector has been especially pronounced. State governments across the country have caused all "non-essential" retail to close temporarily, and even retail outlets deemed essential must adhere to social distancing criteria that limit the amount of consumers in stores. Non-essential retail has varying definitions across the country, but the definition typically includes vendors of specialty merchandise (e.g., furniture, beauty, electronics), entertainment venues, dine-in restaurants, and bars. Non-essential retail outlets have attempted to find alternative ways to deliver products to customers through e-commerce solutions, but retail is still highly dependent on customer traffic in stores to generate revenue. As the COVID-19 pandemic continues to impose significant financial difficulties for traditional retailers, certain of our tenants may be unable to continue as going concerns, which would unfavorably impact our business and results of operations. Traditional retail was facing ongoing challenges from e-commerce platforms long before the COVID-19 pandemic, and the pandemic will only accelerate this shift in consumer preferences. If such a shift occurs, there may be a decrease in demand for traditional retail space. As of March 31, 2020, rents from the Account's retail tenants were not materially affected, but requests for relief were more common among retail tenants than other sectors. The duration of the COVID-19 pandemic remains unknown, and its continued effect on the economy increases the likelihood that retail tenants may undergo continued financial distress.
The Account's retail portfolio is composed primarily of high-end lifestyle shopping centers and regional malls in large metropolitan or tourist centers. The retail portfolio is managed to minimize significant exposure to any single retailer. The Account has over 1,100 retailers across its portfolio, with its largest retail exposure comprising less than 3.5% of total retail rentable area. The Account’s retail vacancy increased to 6.6% in the first quarter of 2020 from 6.1% in the prior quarter due to scheduled lease expirations. Redeployment of the vacated space may be challenging in the near term due to unfavorable market conditions caused by the COVID-19 pandemic.

      Account Units Weighted
Average Vacancy		 
Market
Vacancy(1)
  Total Exposure
($M)		 % of Total Investments Q1 2020 Q4 2019 Q1 2020 Q4 2019
All Retail     6.6% 6.1% 6.1% 6.1%
   Lifestyle & Mall $2,365.5
 8.6% 6.5% 5.3% 5.5% 5.4%
   Neighborhood, Community & Strip 1,580.4
 5.8% 7.0% 7.1% 8.7% 8.6%
   Power Center(2)
 628.8
 2.3% 3.9% 5.3% 6.9% 7.0%
(1)
Source: CBRE-EA. Market vacancy is defined as the percentage of space available for rent. The Account’s vacancy is the square foot-weighted percentage of unleased space.
(2)
The Power Center designation is reserved for properties with three or more anchor 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 two or less anchor units.
Market
Hotel
The COVID-19 pandemic caused hotel revenues and occupancy to decline across the country at an unprecedented rate in the first quarter of 2020. As as result of government-imposed travel bans, business travel has been severely limited to those who must travel for essential reasons. As businesses begin to adapt to these restrictions and increasingly manage their affairs through virtual platforms, business travel may not reach levels seen before the COVID-19 pandemic in the near-term, which would continue to weigh on hotel demand and increase vacancy rates. Moroever, leisure travel is virtually nonexistent due to widespread nonessential travel bans instituted by state governments, and such travel many not recover until a vaccine or effective treatments are developed for the percentage of units vacant. The Account’s vacancy isCOVID-19 virus. Luxury hotels have been especially impacted by the percentage of unleased units.
Retail
Preliminary dataCOVID-19 pandemic, as they are also exposed to lost revenue from the U.S. Census Bureau indicateabsence of conferences and similar events (e.g., weddings). Hotel operators have been required to significantly reduce expenses until occupancy returns, which has resulted in additional layoffs, furloughs, and temporary hotel closures. The duration of the COVID-19 pandemic remains unknown, and its continued effect on the economy increases the likelihood that retail sales excluding motor vehicleshotel revenues and parts increased 1.0% from secondoccupancy rates will continue to third quarter and 4.1% on a year-over-year basisdecline.
The Account's exposure to the hotel sector is limited to one hotel in the third quarter. Retail market conditions have been challenged by rising online retail sales, bankruptciesDallas metro area. Key metrics to track hotel performance include occupancy, the average daily rate ("ADR") and store closings, but national availability rates have generally held steady or modestlyrevenue per available room ("RevPAR"). For the quarter ended March 31, 2020, occupancy of the property declined since 2011. However, CBRE-EA data indicates that the national retail availability rate increasedsignificantly to 10.2%20.3% as compared to 65.2% in the thirdprevious quarter. ADR and RevPAR were $135.21 and $27.44, respectively, for the first quarter from 10.1%of 2020, as compared to $129.76 and $84.63, respectively, in the secondprior quarter. CBRE-EA noted that an

increasing trend could continue in the coming quarters. All of the Account’s retail investments have vacancy rates below 10.0%, which is reflective of the overall high quality of the retail portfolio.
Outlook
The real estate cycle is indeed mature; moderation of returns has occurred and is to be expected. Cycles do not end simply because of longevity, however. Imbalances in one or more segments 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.
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 December 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,March 31, 2020, the Account owned aheld 85.2% of its total of 134investments in real estate investments (109 of which were wholly-owned, 25 of which were held in joint ventures). Theand real estate portfolio included 38 officejoint ventures. The Account also held investments (including 12 held in joint ventures), 34 industrialloans receivable including those with related parties representing 6.0% of total investments, (including one held in a joint venture), 39 apartmentU.S. Treasury securities representing 2.7% of total investments, (including one held in a joint venture), 21 retailreal estate-related equity securities representing 2.6%of total investments, (including ten held in joint ventures), one 75% owned joint venture interest in a portfoliocorporate bonds representing 1.9% of storage facilities, and one leasehold interest encumbered by a ground lease. Of thetotal investments, real estate funds representing 1.3% of total investments, 33 are subject to debt (including 13 joint venture investments).government agency notes representing 0.2% of total investments and municipal bonds representing 0.1% of total investments.
The outstanding principal on mortgage loans payable on the Account’s wholly-owned real estate portfolio as of September 30, 2017March 31, 2020 was $2.3$2.6 billion. The Account’s proportionate share of outstanding principal on mortgage loans payable within its joint venture investments was $2.2$2.9 billion, which is netted against the underlying properties when determining the joint venture investment’s fair value presented on the consolidated schedulesConsolidated Schedules of investments. When the mortgage loans payable within the joint venture investments are considered, totalInvestments. Total outstanding principal on the Account’s portfolio as of September 30, 2017March 31, 2020, inclusive of loans payable within the joint venture investments and $0.2 billion of loans outstanding on the unsecured line of credit, was $4.5$5.7 billion, which represented a loan to valueloan-to-value ratio of 15.2%17.9%. The Account has no Account-level debt.
At September 30, 2017, the Account held 78.5% of its total investments in real estate and real estate joint ventures. The Account also held investments in government agency notes representing 12.1% of total investments, real estate-related equity securities representing 4.1% of total investments, U.S. Treasury securities representing 3.7% of total investments, loans receivable representing 1.1% of total investments, and real estate limited partnerships representing 0.5% of total investments.
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, represented 3.9% of total real estate investments and 3.1% 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 couldmay reinvest any sale proceeds that it does not need to pay operating expenses or to meet debt service or redemption requests (e.g.(e.g., participant withdrawals or benefit payments).

The following table lists the Account's ten largest investments as of September 30, 2017.March 31, 2020. 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 $1,006.0
 $417.9
 $588.1
 3.9% 3.3%
The Florida Mall 50% Orlando FL Retail 900.1
 155.8
 744.3
 3.5% 3.0%
Simpson Housing Portfolio 80% Various U.S.A. Apartment 826.8
 383.4
 443.4
 3.2% 2.7%
1001 Pennsylvania Avenue Washington DC Office 810.0
 
(3) 
 3.8% 3.0% 100% Washington D.C. Office 787.4
 316.9
 470.5
 3.0% 2.6%
The Florida Mall Orlando FL Retail 754.8
 
(4) 
 3.5% 2.8%
DDR Various USA Retail 615.8
 
(5) 
 2.9% 2.3%
Fourth and Madison Seattle WA Office 527.0
 
(6) 
 2.5% 1.9%
501 Boylston Street Boston MA Office 506.3
 
(7) 
 2.4% 1.9%
Colorado Center 50% Santa Monica CA Office 632.7
 269.9
 362.8
 2.4% 2.1%
99 High Street Boston MA Office 504.0
 
 2.4% 1.9% 100% Boston MA Office 563.3
 278.2
 285.1
 2.2% 1.9%
425 Park Avenue New York NY Ground Lease 454.0
 2.1% 1.7%
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 508.3
 —
 508.3
 1.9% 1.7%
701 Brickell Avenue 100% Miami FL Office 427.1
 179.1
 248.0
 1.6% 1.4%
Lincoln Centre 100% Dallas TX Office 421.4
 —
 421.4
 1.6% 1.4%
Four Oaks Place 51% Houston TX Office 420.7
 81.8
 338.9
 1.6% 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.
(6)
Fourth and Madison is presentedall investments held by the Account, gross of debt. The value ofTotal investments, as calculated within this table, will vary from total investments, as calculated in the Account's interest lessConsolidated Schedule of Investments, as joint venture investments are presented in the fair valueConsolidated Schedules of leverage is $324.8 million.Investments at their net equity position in accordance with previously defined GAAP.
(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, 2020 compared to ninethree months ended September 30, 2016March 31, 2019
Net Investment Income
The following table shows the results of operations for the ninethree months ended September 30, 2017March 31, 2020 and 20162019 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 $ %2020 2019 $ %
INVESTMENT INCOME                
Real estate income, net:                
Rental income $791.6
 $755.9
 $35.7
 4.7 % $299.7
 $262.6
 $37.1
 14.1 %
Real estate property level expenses:                
Operating expenses 164.9
 163.5
 1.4
 0.9 % 69.2
 59.2
 10.0
 16.9 %
Real estate taxes 127.3
 116.9
 10.4
 8.9 % 50.1
 46.6
 3.5
 7.5 %
Interest expense 67.3
 63.3
 4.0
 6.3 % 24.3
 25.7
 (1.4) (5.4)%
Total real estate property level expenses 359.5
 343.7
 15.8
 4.6 % 143.6
 131.5
 12.1
 9.2 %
Real estate income, net 432.1
 412.2
 19.9
 4.8 % 156.1
 131.1
 25.0
 19.1 %
Income from real estate joint ventures and limited partnerships 154.3
 111.8
 42.5
 38.0 %
Income from real estate joint ventures and funds 55.2
 49.7
 5.5
 11.1 %
Interest 37.6
 17.8
 19.8
 N/M
 42.5
 41.1
 1.4
 3.4 %
Dividends 15.7
 19.9
 (4.2) (21.1)% 4.5
 4.4
 0.1
 2.3 %
TOTAL INVESTMENT INCOME 639.7
 561.7
 78.0
 13.9 % 258.3
 226.3
 32.0
 14.1 %
Expenses:                
Investment management charges 52.9
 51.8
 1.1
 2.1 % 17.2
 19.5
 (2.3) (11.8)%
Administrative charges 46.0
 48.4
 (2.4) (5.0)% 11.7
 13.3
 (1.6) (12.0)%
Distribution charges 19.6
 21.3
 (1.7) (8.0)% 7.6
 7.9
 (0.3) (3.8)%
Mortality and expense risk charges 0.9
 0.9
 —
 — % 0.3
 0.3
 —
 — %
Liquidity guarantee charges 34.5
 28.1
 6.4
 22.8 % 16.2
 12.9
 3.3
 25.6 %
TOTAL EXPENSES 153.9
 150.5
 3.4
 2.3 % 53.0
 53.9
 (0.9) (1.7)%
INVESTMENT INCOME, NET $485.8
 $411.2
 $74.6
 18.1 % $205.3
 $172.4
 $32.9
 19.1 %
The following table illustrates and compares rental income, operating expenses and real estate taxes for properties held by the Account for the three months ended March 31, 2020 and 2019. The comparative increases or decreases associated with the acquisition and disposition of properties made in either period is compared to "same property" (dollars in millions, unaudited).
  Rental Income Operating Expenses Real Estate Taxes
 Change  Change  Change
20202019$% 20202019$% 20202019$%
Same Property $248.1
$229.5
$18.6
8.1 % $56.0
$51.7
$4.3
8.3 % $43.4
$42.5
$0.9
2.1%
Properties Acquired 48.6
4.4
44.2
N/M
 12.6
1.0
11.6
N/M
 6.4
0.8
5.6
N/M
Properties Sold 3.0
28.7
(25.7)(89.5)% 0.6
6.5
(5.9)(90.8)% 0.3
3.3
(3.0)N/M
Impact of Properties Acquired/Sold 51.6
33.1
18.5
N/M
 13.2
7.5
5.7
N/M
 6.7
4.1
2.6
N/M
Total Property Portfolio $299.7
$262.6
$37.1
14.1 % $69.2
$59.2
$10.0
16.9 % $50.1
$46.6
$3.5
7.5%
N/M—Not meaningful

Rental Income:
Rental income increased $35.7by $37.1 million, or 4.7%14.1%, primarily due to net acquisitions coupledacquisition activity paired with increased occupancyrising market rents and reduced rental concessions, most notably across the office sector. Market rents in the retailoffice, industrial and apartment sectors and reduced leasing incentives inhave continued to trend upward over the industrial andlast several consecutive quarters, but retail sectors.market rents have largely remained flat over the same period.
Operating Expenses:
Operating expenses increased $1.4$10.0 million, or 0.9%16.9%, primarily driven by net acquisition activity. Increases in operating expense were effectively flat across the portfolio; however, the office sector experienced a small increase over the comparable period of the prior year due to net acquisitions.expenses for storm damage incurred at a property. Also, slight increases in the apartment sector expenses are attributed to rising prices for services rendered to maintain the properties.
Real Estate Taxes:
Real estate taxes increased $10.4$3.5 million, or 8.9%7.5%, primarily due to net real estate acquisitions coupled with higher property tax assessments resulting from increases in property values across the office and apartment sectors.acquisition activity.
Interest Expense:
Interest expense increased $4.0decreased $1.4 million, or 6.3%5.4%, due to higheras a result of lower average outstanding principal balances through the nine months ended September 30, 2017,on loans payable paired with lower interest rates, as compared to the same period in 2016.2019.

Income from Real Estate Joint Ventures and Limited Partnerships:Funds:
Income from real estate joint ventures and limited partnershipsfunds increased $42.5$5.5 million, or 38.0%11.1%, aswhich was attributed to a resultlarger average portfolio of net acquisitions and higher distributions, primarily fromjoint ventures paired with a joint venture that holds a large retail property in Las Vegas, Nevada.larger portfolio of real estate funds.
Interest and Dividend Income:
Interest income increased $19.8$1.4 million primarily due to the Account's growing loans receivable portfolio, which was slightly offset by a reduction in interest income earned on a larger loan receivable portfolio in 2017 as compared to the same period in 2016.from short-term securities. Dividend income decreased $4.2increased $0.1 million, remaining relatively flat when compared to the same period in 2016 due to lower dividend yields on the Account's real-estate relatedsecurities.first quarter of 2019.
Expenses:
Expense ratios, as a percentageInvestment management, administrative and distribution costs are charged to the Account associated with managing the Account. Investment management charges are comprised primarily of average net assets, for investment advisory,fixed components, but fluctuate based on the size of the Account’s portfolio of investments, whereas administrative and distribution charges were 0.48% and 0.52% for the nine month period ended September 30, 2017 and 2016, respectively. Costs decreasing slightly period over period, coupled with an increase in average net assets, reduced the overall expense ratio. These costs have fixed andare comprised of more variable components the latter of whichthat generally correspond with movements in net assets. Both distribution services (pursuant to the levelDistribution Agreement) and administrative services are provided to the Account by Services and TIAA, as applicable, on an at cost basis. These expenses decreased $4.2 million from the comparable period of the Account’s net assets under management and other cost drivers.2019, as a result of reductions in expenses related to information technology.
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 effective May 1, 2017, for the twelve month period ending April 30, 2018,annually and are charged at a fixed rate based on the Account’s net assets. These expenses increased $3.3 million as a result of an increase in net assets of the Account from the comparative period paired with a four basis point increase to the expense charge for the liquidity guarantee which was effective August 1, 2019.

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, 2020 and 20162019 and the dollar and percentage changes for those periods (dollars in millions, unaudited).
  For the Nine 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 $58.4
 $26.5
 $31.9
 N/M
Real estate joint ventures and limited partnerships (8.6) 0.4
 (9.0) N/M
Marketable securities 15.3
 21.6
 (6.3) (29.2)%
Total realized gain on investments: 65.1
 48.5
 16.6
 34.2 %
Net change in unrealized appreciation (depreciation) on:        
Real estate properties 74.8
 242.2
 (167.4) (69.1)%
Real estate joint ventures and limited partnerships 88.7
 152.3
 (63.6) (41.8)%
Marketable securities 34.2
 84.2
 (50.0) (59.4)%
Loans receivable 1.4
 0.1
 1.3
 N/M
Mortgage loans payable (10.6) (54.8) 44.2
 (80.7)%
Net change in unrealized appreciation on investments and mortgage loans payable 188.5
 424.0
 (235.5) (55.5)%
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND MORTGAGE LOANS PAYABLE $253.6
 $472.5
 $(218.9) (46.3)%
  For the Three Months Ended March 31, Change
2020 2019 $ %
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND LOANS PAYABLE        
Net realized gain (loss) on investments:        
Real estate properties $(59.2) $—
 $(59.2) N/M
Real estate joint ventures and funds (460.3) 5.1
 (465.4) N/M
Marketable securities 35.2
 141.0
 (105.8) (75.0)%
Loans receivable (1.6) —
 (1.6) N/M
Total realized (loss) gain on investments: (485.9) 146.1
 (632.0) N/M
Net change in unrealized appreciation (depreciation) on:        
Real estate properties 196.7
 73.9
 122.8
 N/M
Real estate joint ventures and funds 300.5
 2.5
 298.0
 N/M
Marketable securities (230.8) 76.3
 (307.1) N/M
Loans receivable (10.6) 1.2
 (11.8) N/M
Loans receivable with related parties (0.5) —
 (0.5) N/M
Loans payable 45.7
 (29.6) 75.3
 N/M
Net change in unrealized appreciation on investments and loans payable 301.0
 124.3
 176.7
 N/M
NET REALIZED AND UNREALIZED (LOSS) GAIN ON INVESTMENTS AND LOANS PAYABLE $(184.9) $270.4
 $(455.3) N/M
N/M—Not meaningful

Real Estate Properties, Joint Ventures and Limited Partnerships:Funds:
Net realized gainslosses in the Account are primarily attributed to the dispositiontransfer of investments from joint ventures to 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$137.5 million during the first nine monthsquarter of 20172020 compared to $268.7$73.9 million of unrealized gains 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.2019. Appreciation for the nine months ended September 30, 2017 was largely concentrated among the Account's industrial sector, especially in the Western region. Strong tenant demand for industrial spacefirst quarter was primarily driven by the office sector, most notably among investments in California has been the primary driver of this appreciation.Miami, FL and Boston, MA.
Real Estate Joint Ventures and Limited Partnerships:Funds:
Real estate joint ventures and limited partnershipsfunds experienced net realized and unrealized gainslosses of $80.1$159.8 million during the first nine monthsquarter of 2017,2020, compared to $152.7$7.6 million of net realized and unrealized gains during the comparable period of 2016. While2019. Net losses in the ratefirst quarter of appreciation has slowed2020 were primarily driven by the Account's retail joint venture investments. As market rent in 2017, the Accountretail sector continues to see modest appreciation across most sectors of the Account's joint venture portfolio. The strongest appreciation for the nine months ended September 30, 2017 was among the Account's office investments 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 dueflatten, capital improvement costs are increasing to moderatingmaintain occupancy and attract new tenants. Such unfavorable factors continue to place pressure on retail market conditions was a significant driver of the overall decline from the prior year.values.
Marketable Securities:
The Account’s marketable securities experienced net realized and unrealized gainslosses of $49.5$195.6 million during the first nine monthsquarter of 20172020 compared to $105.8net realized and unrealized gains of $217.3 million during the comparable period of 2016. The markets for REITs in2019, primarily attributed to the U.S. increased 6.0% as measured by the FTSE NAREIT All Equity REITs Index during the nine month period ended September 30, 2017, compared to a increaseperformance of 12.3% in the same period of 2016. Appreciation on the Account's real estatereal-estate related equity securities movedsecurities. The performance of the Account's

REIT portfolio was in line with the market movements. Additionally, as of September 30, 2017, the Account held $4.3 billion of investmentscomparable REIT-based indexes in both periods. U.S. Treasuries, government agency notes and U.S. Treasury securities, whichcorporate bonds had a nominal changesimpact in both periods due to the short-termshort and intermediate-term nature of these investments.investments, respectively.
Mortgage Loans Payable:Receivable, including those with related parties:
MortgageLoans receivable, including loans payablereceivable with related parties, experienced net realized and unrealized losses of $10.6$12.7 million during the first nine months 2017quarter of 2020 compared to a $1.2 million unrealized losses of $54.8 milliongain during the comparable period of 2016.2019. The lower unrealized losses forcan be attributed to uncertainty related to current market conditions, caused by the nine months ended September 30, 2017, were consistent with the directional movement of Treasury rates during the comparable period.COVID-19 pandemic.

Loans Payable:
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 percentage 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 size 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 level 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$45.7 million during the thirdfirst quarter of 2017,2020 compared to $53.3a $29.6 million unrealized loss during the comparable period of 2016, mostly2019. The gains in the first quarter of 2020 were 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 millionwidening credit spreads during the third quarter of 2017, comparedin response 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 measuredmarket instability introduced 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 of investments in government agency notes and U.S. Treasury securities, which had nominal changes due to the short-term nature of these investments.COVID-19 pandemic.
Mortgage Loans Payable:
Mortgage loans payable experienced unrealized losses of $4.1 million during the third quarter of 2017 compared to $29.1 million during the comparable period of 2016. The unrealized losses were consistent with the directional movement of Treasury rates during the comparable period.
Liquidity and Capital Resources
As of September 30, 2017March 31, 2020 and December 31, 2016,2019, the Account’s cash and cash equivalents and non-real estate-related marketable securities had a value of $4.3$2.7 billionand $4.14.2 billion representing 17.3%10.3% and 16.7%15.2% 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$205.3 million for the ninethree months ended September 30, 2017,March 31, 2020, as compared to $411.2$172.4 million for the comparable period of 2016.2019. The increase in total net investment income is described more fully in the Results of Operations section.
AsThe Account has a $500 million unsecured line of September 30, 2017, cash and cash equivalents, along with real estate-related and non-real estate related marketable securities comprised 21.8%credit which had $310 million of availability as of March 31, 2020, accessible as needed to fund the Account’s net assets. The Account’s real estate-related marketable securities primarily consistAccount's near-term objectives, as further described in Note 10—Line 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.eCredit.., participant withdrawals or benefit payments).

Leverage
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% (measured at the time of incurrence and after giving effect thereto). 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
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 revolvingan unsecured line of credit for the purpose of calculating the loan to value ratio, management deems the maximum amount which may be drawn under that line ofor credit as fully incurred, regardless of whether the maximum amount available has been drawn from time to time.facility.
As of September 30, 2017,March 31, 2020, the Account’s loan-to-value ratio ofwas 17.9% The Account's loan-to-value ratio at any time is based on the outstanding principal amount of debt (inclusive ofto the Account’s proportionate share of debt held within its joint venture investments) toAccount's total gross asset value, (i.e., a “loan to value ratio”) was 15.2%.and excludes leverage, if any, employed by REITs and real estate funds in which the Account invests. The Account intends to maintain its loan to value ratio at or below 30% (this ratio iswill be measured at the time of any debt incurrence and will be assessed after giving effect thereto).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. In calculating outstanding indebtedness, we include only the Account’s actual percentage interest in any borrowings on a joint venture investment and not that of any joint venture partner. Also, at the time the Account (or a joint venture in which the Account is a partner) enters into a revolving or other line of credit, management includes only amounts outstanding when calculating outstanding indebtedness.
The Account may only borrow up to 70% of the then-current value of a property, although construction loans may be for 100% of costs incurred in developing the property. Except for construction loans, any mortgage loans on a property will be non-recourse to the Account, meaning that if there is a default on a loan in respect to a specific property, the

lender will have recourse to (i.e., be able to foreclose on) only the property encumbered (or the joint venture owning the property), or to other specific Account properties that may have been pledged as security for the defaulted loan, but not to any other assets of the Account. When possible, the Account will seek to have loans mature at varying times to limit the risks of borrowing.
As of September 30, 2017,March 31, 2020, there are nofive mortgage obligations secured by real estate investments wholly-owned by the Account totaling $127.6 million 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 Accountoccurring during the thirdfirst quarter of 2017.2020 related to real estate properties, real estate joint ventures, real estate funds, loans receivable, and loans payable. 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.
Real Estate Properties and Joint Ventures
Purchases
The Bridges—Minneapolis, MN
On July 13, 2017,
Property Name Purchase Date Ownership Percentage Sector Location 
Net Purchase Price (1)
Sole at City Center 01/15/2020 100.00% Apartments West Palm Beach, FL $103.6
Park Creek Apartments 02/10/2020 100.00% Apartments Fort Worth, TX 41.7
Warwick Shopping Center(2)
 02/19/2020 100.00% Retail Warwick, RI 11.1
Overlook at King of Prussia(2)
 02/19/2020 100.00% Retail King of Prussia, PA 55.1
Shoppes at Lake Mary(2)
 02/19/2020 100.00% Retail Lake Mary, FL 21.0
Winslow Bay Commons(2)
 02/19/2020 100.00% Retail Mooresville, NC 50.9
Bellevue Place(2)
 02/19/2020 100.00% Retail Nashville, TN 7.8
Eisenhower Crossing(2)
 02/19/2020 100.00% Retail Macon, GA 10.1
Pavilion at Turkey Creek(2)
 02/19/2020 100.00% Retail Knoxville, TN 49.9
Town and Country(2)
 02/19/2020 100.00% Retail Knoxville, TN 30.1
Creeks at Virginia Center(2)
 02/19/2020 100.00% Retail Glen Allen, VA 41.7
Alexander Place(2)
 02/19/2020 100.00% Retail Raleigh, NC 39.9
Market Square(2)
 02/19/2020 100.00% Retail Ft. Myers, FL 20.4
Cypress Trace(2)
 02/19/2020 100.00% Retail Ft. Myers, FL 39.7
Columbiana Station(2)
 02/19/2020 100.00% Retail Columbia, SC 43.8
Village Crossing(2)
 02/19/2020 100.00% Retail Skokie, IL 160.7
Birkdale Village(2)
 02/19/2020 100.00% Retail Huntersville, NC 128.9
Birkdale Village Apartments(2)
 02/19/2020 100.00% Apartments Huntersville, NC 70.8
River Ridge(2)
 02/19/2020 100.00% Retail Birmingham, AL 28.0
Woodstock Square(2)
 02/19/2020 100.00% Retail Woodstock, GA 33.7
Newnan Pavilion(2)
 02/19/2020 100.00% Retail Newnan, GA 39.7
Marketplace at Mill Creek(2)
 02/19/2020 100.00% Retail Buford, GA 71.5
Heritage Pavilion(2)
 02/19/2020 100.00% Retail Smyrna, GA 41.6
Fayette Pavilion(2)
 02/19/2020 100.00% Retail Fayetteville, GA 88.4
Pacific City(3)
 03/09/2020 100.00% Retail Huntington Beach, CA 153.9
Storage Portfolio III(4)
 03/16/2020 90.00% Storage Atlanta, GA 16.4
(1)
The net purchase price represents the purchase price and closing costs.
(2)
On February 19, 2020, the Account purchased the 15% ownership interest of SITE Centers Corp in DDRTC Core Retail Fund, LLC, a joint venture between the Account and SITE Centers Corp. All properties and associated debt formerly held within DDRTC Core Retail Fund, LLC are now wholly-owned by the Account.
(3)
On March 9, 2020, the Account purchased the 30% ownership interest of DJM Capital in PC Borrower, LLC, a joint venture between the Account and DJM Capital. The retail property and associated debt formerly held within PC Borrower, LLC is now wholly-owned by the Account.
(4)
Partial acquisition.

Sales
Property Name Sales Date Ownership Percentage Sector Location 
Net Sales Price (1)
 
Realized Gain(Loss) on Sale(2)
The Woodley 01/08/2020 100.00% Apartments Washington, D.C. $176.7
 $(25.2)
Beltway North Commerce Center 01/14/2020 100.00% Industrial Houston, TX 29.8
 4.3
250 North 10th Street 01/15/2020 100.00% Apartments Brooklyn, NY 137.1
 (37.6)
DDRTC Core Retail Fund, LLC(3)
 02/19/2020 85.00% Retail Various, U.S.A. 932.8
 (422.2)
PC Borrower, LLC(4)
 03/09/2020 70.00% Retail Huntington Beach, CA 107.7
 (31.3)
(1)
The net sales price represents the sales price, less selling expenses.
(2)
Majority of the realized gain(loss) has been previously recognized as unrealized gains(losses) in the Account's Consolidated Statements of Operations.
(3)
On February 19, 2020, the Account purchased the 15% ownership interest of SITE Centers Corp in DDRTC Core Retail Fund, LLC, a joint venture between the Account and SITE Centers Corp. All properties and associated debt formerly held within DDRTC Core Retail Fund, LLC are now wholly-owned by the Account.
(4)
On March 9, 2020, the Account purchased the 30% ownership interest of DJM Capital in PC Borrower, LLC, a joint venture between the Account and DJM Capital. The retail property and associated debt formerly held within PC Borrower, LLC is now wholly-owned by the Account.
Real Estate Funds
Acquisitions
Fund Name Date of Initial Capital Contribution Amount of Initial Capital Contribution Total Commitment
JCR Capital - REA Preferred Equity Parallel Fund 03/23/2020 $2.2
 $100.0
Loans Receivable
Originations and purchases
Investment Name Transaction Date Interest Rate Sector Maturity Date Location Amount
Sol Y Luna Mezzanine 01/07/2020 6.55% Apartments 01/06/2030 Tucson, AZ $53.0
Five Oak Senior/Junior Mezzanine 03/26/2020 2.35% + LIBOR Office 04/09/2023 Portland, OR $53.3
Payoffs and sales
Investment Name Transaction Date Interest Rate Sector Maturity Date Location Amount
Crest at Las Colinas Station Mezzanine 01/30/2020 5.11% + LIBOR Apartments 05/10/2021 Irving, TX $20.0
DJM Capital Partners Mezzanine 03/09/2020 5.00% Retail 03/02/2020 Huntington Beach, CA 6.3
Financings
New financings and assumptions of debt
Property Name Transaction Date Ownership Percentage Interest Rate Sector Maturity Date Location Amount
Overlook at King of Prussia(1)
 02/19/2020 100.00% 3.82% Retail 09/11/2027 King of Prussia, PA $40.8
Winslow Bay Commons(1)
 02/19/2020 100.00% 3.82% Retail 09/11/2027 Mooresville, NC 25.8
Birkdale Village(1)
 02/19/2020 100.00% 4.30% Retail 04/01/2024 Huntersville, NC 78.4
Marketplace at Mill Creek(1)
 02/19/2020 100.00% 3.82% Retail 09/11/2027 Buford, GA 39.6
Pacific City(2)
 03/09/2020 100.00% 2.00% + LIBOR Retail 10/01/2023 Huntington Beach, CA 105.0

Payoffs and assignments of debt
Property Name Transaction Date Ownership Percentage Interest Rate Sector Maturity Date Location Amount
DDRTC Core Retail Fund, LLC(1)
 02/19/2020 85.00% Various Retail Various Various, U.S.A. $156.8
PC Borrower, LLC(2)
 03/09/2020 70.00% 2.00% + LIBOR Retail 10/01/2023 Huntington Beach, CA 73.5
(1)
On February 19, 2020, the Account purchased the 15% ownership interest of SITE Centers Corp in DDRTC Core Retail Fund, LLC, a joint venture between the Account and SITE Centers Corp. All properties and associated debt formerly held within DDRTC Core Retail Fund, LLC are now wholly-owned by the Account.
(2)
On March 9, 2020, the Account purchased the 30% ownership interest of DJM Capital in PC Borrower, LLC, a joint venture between the Account and DJM Capital. The retail property and associated debt formerly held within PC Borrower, LLC is now wholly-owned by the Account.
Financings - Other
During the first quarter of 2020, the Account acquired a student housing complex located nearborrowed $400 million and paid off $460.0 million on the Universityline of Minnesota for $60.9 million.credit.
The Knoll—Minneapolis, MNMarketable Securities
On July 13, 2017,During the Account acquired a student housing complex located near the Universityfirst quarter 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 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.
Sales
Ontario Industrial Portfolio: Inland Empire Industrial Portfolio—Various, CA
On August 17, 2017,2020, 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.real estate-related securities.
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.

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, 2016,2019, 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 tofrom those disclosed in our 2016the Account's Annual Report on Form 10-K.10-K for the year ended December 31, 2019.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Account’s real estate holdings, including real estate joint venture, limited partnershipsventures, funds and loans receivable, which, as of September 30, 2017,March 31, 2020, represented 80.1% 92.5%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 down due to general economic conditions, a weak market for real estate generally and/or in specific locations where the Account may own property, including, among other reasons, as a result of an epidemic, pandemic or other health-related issue in one or more markets where the Account owns property, disruptions in the credit and/or capital markets, or changingchanges in supply and demand for certain types of properties;
Appraisal Risk—The risk that the sale price of an Account property (i.e.(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 poor 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, 2020, 7.5% of the Account’s total investments were comprised of marketable securities. Marketable securities include high-quality debt instruments ((i.ei.e.., U.S. government agency notes)notes and corporate bond securities) and REIT securities. The consolidated scheduleAccount's Consolidated Statements of investments for the AccountInvestments 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—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.
RisksThe Account is also exposed to a variety of 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. These risks have been heightened as a result of the COVID-19 pandemic.
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. 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 can suffer losses.

In addition, to the extent the Account were to hold mortgage-backed securitiesMBS (including commercial mortgage-backed securities)CMBS) these securities are subject to prepayment risk or extension risk ((i.ei.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 stockssecurities and mortgage-backed securities)MBS) 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 "Risk Factors" section of 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 (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, 2020. 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 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.
ThereExcept as set forth below, 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, 2016.2019.
COVID-19-related risks to the real property market
In December 2019, COVID-19 was first detected in Wuhan, China and began spending around the world. On March 11, 2020, the World Health Organization announced that the outbreak of COVID-19 had become a pandemic. In response to the COVID-19 pandemic, governmental authorities throughout the world, including the United States, have taken significant measures to inhibit the spread of the disease, such as prohibiting people from congregating in heavily populated areas, instituting localized quarantines, restricting nonessential travel, issuing “stay-at-home” orders, closing schools, and most notably, restricting the types of businesses that may continue to operate. The restrictions have had an adverse impact on economic and market conditions across the United States. It is possible that public health officials and governmental authorities in the markets in which we own properties may impose additional restrictions in an effort to further slow the spread of the COVID-19 pandemic or may relax or revoke existing restrictions too quickly, which could, in either case, exacerbate the severity of adverse impacts on the economy. Factors related to the COVID-19 pandemic that may have an adverse effect on our business and results of operations, include:
a complete or partial closure of, or other operational issues at, one or more of our properties resulting from government or tenant action, which could adversely affect our tenants, particularly those in geographic locations with significant exposure to oil and gas (e.g., Dallas, Houston) where the COVID-19 pandemic has exacerbated downward pressures on crude oil, natural gas and natural gas liquids;
reduced economic activity impacting the businesses, financial condition, and liquidity of our tenants has caused, and is expected to continue to cause, one or more of our tenants to be unable to meet their obligations to us, including their ability to make rental payments, in full or at all, or otherwise seek modifications of such obligations, such as rent concessions, deferrals, abatements, or even the termination of lease obligations through bankruptcy;
the impact of new or continued complete or partial shutdowns of the operations of one or more of our tenants' businesses, most notably within the office, hotel, and retail sectors;
temporary or long-term disruptions in our tenants' supply chains from domestic and international suppliers could force tenants to reduce, delay or eliminate offerings of their products and services, resulting in less revenue and cash flow, which may impact tenants' ability to satisfy rent obligations;
the extent to which COVID-19 decreases customers' willingness to visit tenants' businesses in the future, which may result in tenants' continued inability to satisfy rent obligations;
the extent to which actions taken to slow the spread of COVID-19 result in unemployment or underemployment, which may negatively affect the ability of residential tenants to generate sufficient income to satisfy rent obligations;
restrictions to slow the spread of COVID-19 may limit leasing activities at the properties, such as property tours, and may have an adverse impact on the time it requires to renew leases, rent vacant space, or redeploy available space as leases expire;

increased safety accommodations for employees required to be on-site during a time of heightened health risks, which may increase our costs and make it more difficult to efficiently manage our properties;
the ability of our properties to continue to obtain necessary goods and services or provide adequate staffing, as well as to commence or continue construction, development, and redevelopment activities, which could result in delays, increased costs, and potentially missed deadlines; and
continued market turmoil may cause debt financing to be unavailable to the Account on attractive terms, or at all.
The full extent of the impact of the COVID-19 pandemic on our business is highly uncertain and difficult to predict, as information is rapidly evolving with respect to the duration and severity of the pandemic. The extent to which the COVID-19 pandemic ultimately impacts our business and results of operations will depend on numerous evolving factors, including: (i) the duration and scope of the pandemic; (ii) governmental, business, and individuals' actions taken in response to the pandemic; (iii) the impact on economic activity from the pandemic and actions taken in response; (iv) the effect of the pandemic on our tenants and their businesses; (v) the ability of tenants to pay their rental income and any closures of our tenants' facilities, including, without limitation, due to shutdowns and "shelter-in-place" orders that may be requested or mandated by governmental authorities; (vi) the effect of the pandemic on our construction, development, and redevelopment activities; and (vii) the impact of the pandemic on our employees and any other operational disruptions or difficulties we may face. Any of these factors and risks could adversely impact our business or results of operations. Any increased costs or lost revenue as a result of tenant financial difficulty, or their need to comply with executive orders and other governmental guidance, may not be fully recoverable under our leases or adequately covered by insurance, which could impact our profitability. Moreover, the inability of our tenants to pay their rents when due could adversely affect our own liquidity, and there can be no guarantee that additional liquidity will be readily available or available on favorable terms and could result in the Account exercising the liquidity guarantee.
The COVID-19 pandemic may also result in fundamental changes to several of the core real estate sectors in which we invest. For example, an office space is generally attractive to a business because it provides one central location for the business’ employees to conduct their work. As businesses establish the infrastructure necessary to support a telecommuting workforce in response to the COVID-19 pandemic, they may find that such work-from-home arrangements are more efficient or beneficial for their employees than a traditional office environment. Moreover, as “social distancing” practices become normalized, businesses may struggle to justify the requirement that a large number of on-site employees be present in the same location when telecommuting is a readily available alternative. This could reduce the need for large office spaces in the future or cause companies to be less willing to pay higher rents for such spaces, which would ultimately harm our business and results of operations. Similarly, government-imposed travel restrictions have severely limited business travel, which has resulted in decreased occupancy in hotels. As businesses begin to adapt to these restrictions and manage their affairs through virtual platforms, the demand for business travel may be reduced significantly in the future, which would reduce the demand for hotel services and increase vacancy rates.
The COVID-19 pandemic is also accelerating fundamental changes in the retail sector. Due to government “stay-at-home” orders and the required closure of non-essential businesses, there has been a drastic reduction in sales and foot traffic in the retail sector and many retail tenants have been forced to limit their operations or close their businesses for a period of time. In addition to the serious financial distress this has imposed on many of our tenants, it has also required consumers-even those who prefer a more traditional retail experience-to purchase goods and services through online websites and retailers. This could result in a permanent change to consumer preferences in favor of e-commerce and further reduce the already declining demand for brick and mortar retail. This long-term effect may result in current tenants being unable to pay their rent when due and potential tenants abandoning the need for a physical space altogether, which would in turn harm our business and results of operations.
Any prolonged economic downturn, escalation of the COVID-19 pandemic or disruption in the financial markets may also impact our ability to access capital markets to issue debt or equity securities and to complete real estate transactions at attractive pricing or at all.
The impact of the COVID-19 pandemic may also precipitate and/or aggravate the other risks discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which could adversely affect our business and

results of operations (including revenues and profitability). In addition, the COVID-19 pandemic may also affect our operating or financial results in a manner that is not presently known to us or that we do not consider to present significant risks to operations.
COVID-19-related risks to liquid securities
The Account also invests in liquid securities of all types, including both publicly traded non-real estate-related investments and liquid real estate securities. The U.S. capital markets have experienced extreme volatility and disruption following the COVID-19 pandemic. Some economists and investment banks have expressed concern that the continued spread of the virus globally could lead to a prolonged global economic downturn, which, in addition to effecting our investments in real property, would adversely impact our investments in our real-estate and non-real estate-related liquid assets. Disruptions in the capital markets have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets. Such disruptions may adversely affect our business and results of operations. For more information on the risks that may be especially exacerbated as a result of the COVID-19 pandemic, see Risks of Liquid, Fixed Income Investments of “Item 1A Risk Factors” in the Account’s Annual Report on Form 10-K for the year ended December 31, 2019.
Global economic risks
National and regional economies and financial markets have become increasingly interconnected, which increases the possibilities that conditions in one country, region or market might adversely impact issuers in a different country, region or market. Changes in legal, political, regulatory, tax and economic conditions may cause fluctuations in markets and securities and commercial real property prices around the world, which could negatively impact the value of the Account’s investments. For example, the United Kingdom’s referendum decision to leave the European Union resulted in the depreciation in value of the British pound, short term declines in the stock markets and ongoing economic and political uncertainty concerning the consequences of the exit. Similar major economic or political disruptions, particularly in large economies like China, may have global negative economic and market repercussions. Additionally, events such as war, terrorism, natural and environmental disasters and the spread of infectious illnesses, pandemics or other public health emergencies may adversely affect the global economy and the securities, local commercial real estate markets and issuers in which the Account invests. Recent examples of such events include the outbreak of the COVID-19 pandemic, resulting in government imposed shutdowns across the globe. These events have reduced and could continue to reduce consumer demand and economic output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the economy, including the commercial real estate sector. Governmental and quasi-governmental authorities and regulators throughout the world have responded to the current impact of the COVID-19 pandemic with a variety of significant fiscal and monetary policy changes, including, but not limited to, direct capital infusions into companies, new monetary programs and lower interest rates. An unexpected or quick reversal of these policies, or the ineffectiveness of these policies, could increase volatility in securities and commercial real estate markets, which could adversely affect the Account’s investments.
Cybersecurity and other business continuity risks
With the increased use of connected technologies to conduct business, the Account and its service providers (including, but not limited to, TIAA, Services, the Independent Fiduciary and the Account’s custodian and financial intermediaries) are susceptible to cybersecurity risks. In general, cybersecurity attacks can result from infection by computer viruses or other malicious software or from deliberate actions or unintentional events, including gaining unauthorized access through “hacking” or other means to digital systems, networks, or devices that are used to service the Account’s operations in order to misappropriate assets or sensitive information, corrupt data, or cause operational disruption. Cybersecurity attacks can also be carried out in a manner that does not require gaining unauthorized access, including by carrying out a “denial-of-service” attack on the Account or its service providers. In addition, authorized persons could inadvertently or intentionally release and possibly destroy confidential or proprietary information stored on the Account’s systems or the systems of its service providers.
Cybersecurity failures by the Account or any of its service providers, or the issuers of any portfolio securities in which the Account invests (e.g., issuers of REIT securities or debt securities), have the ability to result in disruptions to and impacts on business operations and may adversely affect the Account. Such disruptions or impacts may result in: (i) financial losses; (ii) interference with the processing of contract transactions, including the processing of orders from TIAA’s website; (iii) interfere with the Account’s ability to calculate AUVs; (iv) barriers to trading and order processing;

(v) Account contract owners’ inability to transact business with the Account; (vi) violations of applicable federal and state privacy or other laws; (vii) regulatory fines, penalties, reputational damage, reimbursement or other compensation costs; or (viii) additional compliance costs. The Account may incur additional, incremental costs to prevent and mitigate the risks of cybersecurity attacks or incidents. The Account and its participants could be negatively impacted by such cybersecurity attacks or incidents. Although the Account has established business continuity plans and risk-based processes and controls to address such cybersecurity risks, there are inherent limitations in such plans and systems in part due to the evolving nature of technology and cybersecurity attack tactics. As a result, it is possible that the Account or the Account’s service providers will not be able to adequately identify or prepare for all cybersecurity attacks. In addition, the Account cannot directly control the cybersecurity plans or systems implemented by its service providers.
Other disruptive events, including, but not limited to, natural disasters and public health or pandemic crises (such as the COVID-19 pandemic), may adversely affect the Account’s ability to conduct business. Such adverse effects may include the inability of TIAA’s employees, or the employees of its affiliates and the Account’s service providers, to perform their responsibilities as a result of any such event. Any resulting disruptions to the Account’s business operations can interfere with our processing of contract transactions, including the processing of orders from our website, impact our ability to calculate AUVs or cause other operational issues.
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, 2016 and can also be found on the following web site, http://www.tiaa.org/public/prospectuses/index.html.Not applicable.


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
(3)(A)
Restated Charter of TIAA (as amended)2
 (B)
Amended Bylaws of TIAA3
(4)(A)
Forms of RA, GRA, GSRA, SRA, IRA Real Estate Account Endorsements,4Keogh Contract,5 Retirement Choice and Retirement Choice Plus Contracts5and Retirement Select and Retirement Select Plus Contracts and Endorsements6
 (B)
Forms of Income-Paying Contracts4
 (C)
Form of Contract Endorsement for Internal Transfer Limitation7
 (D)
(1) Form of Non-ERISA Retirement Choice Plus Contract109
(2) Form of Non-ERISA Retirement Choice Plus Certificate9
 (E)
(1) Form of Trust Company Retirement Choice Contract1110
(2) Form of Trust Company Retirement Choice Certificate10
 (F)
(1) Form of Trust Company Retirement Choice Plus Certificate11
(2) Form of Trust Company Retirement Choice Plus Contract11
(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
(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
(I)
Form of OneIRA Non-Qualified Deferred Annuity Contract (and Rate Schedule)14
(J)
(1)Form of Endorsement to Retirement Choice and Retirement Choice Plus Contracts for Custom Portfolios16
(2)Form of Endorsement to Retirement Choice and Retirement Choice Plus Certificates for Custom Portfolios16
(K)
Form of Endorsement to Group Supplemental Retirement Annuity (GSRA) Certificate17
(L)
(1)Form of Contract, Rate Schedule and Certificate for Multiple Employer Plan Retirement Choice Annuity Contract1218
(2)Form of Contract, Rate Schedule and Certificate for Multiple Employer Plan Retirement Choice Plus Annuity Contract18
(10)(A)
Amended and Restated Independent Fiduciary Letter Agreement, dated as of February 2, 2015,21, 2018, between TIAA, on behalf of the Registrant,registrant, and RERC, LLC815
 (B)
Custodian Agreement, dated as of March 3, 2008, by and between TIAA, on behalf of the Registrant,registrant, and State Street Bank and Trust Company, N.A.98
(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, 2020 (Unaudited), formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statements of Assets and Liabilities as of March 31, 2020 (Unaudited), (ii) the Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 (Unaudited) , (iii) the Consolidated Statements of Changes in Net Assets for the three ended March 31, 2020 and 2019 (Unaudited), (iv) the Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019 (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) and 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).
(17)
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).
(18)
Previously filed and incorporated herein by reference to Exhibit 4(L)(1) and 4(L)(2) to the Account's Current Report on Form 10-K, filed with the Commission on March 12, 2020 (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 7th8th day of November, 2017.May 2020.
 TIAA REAL ESTATE ACCOUNT
    
 By: TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA
    
November 7, 2017May 8, 2020By: /s/ Carol W. Deckbar
   
Carol W. Deckbar
Executive Vice President, Institutional Investment & Endowment Services
Chief Product Officer of TIAA Financial Solutions, Teachers Insurance and Annuity Association of America
(Principal Executive Officer)
    
November 7, 2017May 8, 2020By: /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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