Tiaa Real Estate Account 8K Results of Operations and Financial Condition | SEC 22 Apr 19

TIAA Retirement Annuity Accounts

Exhibit 99.1

TIAA Real Estate Account

Real Estate

As of 3/31/19

Portfolio Net Assets

$26.3 Billion

Inception Date

10/2/1995

Symbol

QREARX

Estimated Annual Expenses^{1 2}

0.79%

Investment Description

Performance

This Account seeks to generate favorable total returns primarily through the rental income and appreciation of real estate investments and offers investors guaranteed, daily liquidity. The Account intends to invest between 75% and 85% of its net assets directly in real estate or real estate-related investments, which TIAA believes have the potential to generate rental income and appreciation. The remainder of its investments will be invested in publicly traded, liquid investments.

Total Return

Average Annual Total Return

3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Inception

TIAA Real Estate Account

1.71%

5.58%

4.73%

6.78%

5.65%

6.29%

Learn More

For more information please contact:

800-842-2252

Weekdays, 8 a.m. to 10 p.m. (ET),

Saturdays, 9 a.m. to 6 p.m. (ET),

or visit TIAA.org

The returns quoted represent past performance, which is no guarantee of future results. Returns and the principal value of your investment will fluctuate. Current performance may be higher or lower than that shown, and you may have a gain or a loss when you redeem your accumulation units. For current performance information, including performance to the most recent month-end, please visit TIAA.org, or call 800-842-2252. Performance may reflect waivers or reimbursements of certain expenses. Absent these waivers or reimbursement arrangements, performance may be lower.

¹ The total annual expense deduction, which includes investment management, administration, and distribution expenses, mortality and expense risk charges, and the liquidity guarantee, is estimated each year based on projected expense and asset levels. Differences between actual expenses and the estimate are adjusted quarterly and are reflected in current investment results. Historically, adjustments have been small.

² The Account’s total annual expense deduction appears in the Account’s prospectus, and may be different than that shown herein due to rounding. Please refer to the prospectus for further details.

Hypothetical Growth of $10,000

The chart illustrates the performance of a hypothetical $10,000 investment on March 31, 2009 and redeemed on March 31, 2019.

— TIAA Real Estate Account

$17,329

The total returns are not adjusted to reflect sales charges, the effects of taxation or redemption fees, but are adjusted to reflect actual ongoing expenses, and assume reinvestment of dividends and capital gains, net of all recurring costs.

Properties by Type

(As of 3/31/19)

Properties by Region

(As of 3/31/19)

% of Real Estate Investments^{3 4}

% of Real Estate Investments³

Office

38.1

West

40.0%

Apartment

24.7

East

33.3%

Retail

18.8

South

24.5%

Industrial

15.1

Midwest

2.2%

Other

3.3

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.

⁴ Other properties represents interest in Storage Portfolio investments, a fee interest encumbered by a ground lease real estate investment and land.





TIAA Retirement Annuity Accounts
TIAA Real Estate Account


Real Estate							As of 3/31/19

Portfolio Composition			As of 3/31/19		Market Recap
Investments by Type			% of Net Assets		Economic Conditions Remain Strong, Real Estate Benefiting
Real Estate Properties (Net Of Debt)			50.6	%	The Bureau of Labor Statistics reported that the U.S. economy added 541,000 jobs during the first quarter of 2019 compared to 700,000 jobs during the fourth quarter of 2018. The economy created an average of 180,000 jobs over the past three months, below the 12-month average of 211,000. The unemployment rate remained steady at 3.8% for the first quarter. Finance and professional & business services have been the traditional drivers of demand for office space. The financial services sector saw an increase in jobs added, from 18,000 in the fourth quarter to 23,000 jobs in the first quarter while the professional and business services sector, which includes many facets of technology-related employment decreased, from 126,000 jobs during the fourth quarter as compared to 96,000 during the first quarter. Suburban markets saw a decrease in vacancy of 11 bps while downtown vacancy rates remained steady at 10.5%, vacancy nationwide decreased from 12.7% in the fourth quarter of 2018 to 12.5% for the first quarter, as reported by CB Richard Ellis Econometric Advisors (“CBRE-EA”). Vacancy rates declined in 30, rose in 23 and remained flat in 10 of the 63 markets tracked by CBRE-EA. The national industrial availability rate remained steady at 7.0% in the first quarter. Overall, availability rates decreased in 30 of the 64 industrial markets tracked by CBRE-EA. Demand continues to outpace supply suggesting that the industrial sector still has ways to go in its growth cycle. In the near term, industrial availability rates may remain flat. The national apartment vacancy rate decreased by an additional 10 bps to 4.4% in the first quarter from 4.5% in the fourth quarter. Of the 66 apartment markets tracked by CBRE-EA, data indicates that vacancy rates decreased in 53 markets, remained unchanged in five and increased in 8. Market conditions are expected to continue to soften as new supply delivers and employment growth begins to slow. Generally, the U.S. economy continues to support strong rental demand and solid growth, but the evolving balance of supply and demand and increased competition has led to moderation in rent growth and increased concessions. Preliminary data from the U.S. Census Bureau indicate that retail sales excluding motor vehicles and parts increased 2.1% in the first quarter and 3.6% on a year-over-year basis. Availability rates decreased to 8.8% for the first quarter, down 20 bps from the fourth quarter. Economic conditions have led to increased consumer spending, potentially increasing a higher demand for retail space in the coming quarters. Note: Data subject to revision
Real Estate Joint Venture And Limited Partnerships			25.1	%
Short Term Investments			16.2	%
Marketable Securities Real Estate-Related			4.3	%
Loans Receivable			3.7	%
Other (Net Receivable/Liability)			0.1	%


Top 10 Holdings⁵			As of 3/31/19
		% of Total Investments⁶
Fashion Show			3.7	%
SITE Centers Corp			3.7	%
The Florida Mall			2.9	%
Simpson Housing Portfolio			2.5	%
1001 Pennsylvania Avenue			2.4	%
Colorado Center			1.9	%
Fourth and Madison			1.8	%
99 High Street			1.6	%
425 Park Avenue			1.4	%
Ontario Industrial Portfolio			1.4	%
Total			23.3	%







Important Information
⁵	The top 10 holdings are subject to change and may not be representative of the Account’s current or future investments. The holdings listed only include the Account’s long-term investments. Money market instruments and/or futures contracts, if applicable, are excluded. The holdings do not include the Account’s entire investment portfolio and should not be considered a recommendation to buy or sell a particular security.
⁶	Real estate fair value is presented gross of debt. Investments in joint ventures are presented at the Account's ownership interest.

	Fashion Show is held in a joint venture with Brookfield Property Partners LP, in which the Account holds a 50% interest, and is presented gross of debt. As of March 31, 2019, this debt had a fair value of $420.5 million. The joint venture with SITE Centers Corp, previously known as DDR, in which the Account holds an 85% interest, consists of 23 retail properties located in 10 states, and is presented gross of debt. As of March 31, 2019, this debt had a fair value of $539.1 million. The Florida Mall is held in a joint venture with Simon Property Group, L.P., in which the Account holds a 50% interest, and is presented gross of debt. As of March 31, 2019, this debt had a fair value of $159.9 million. Simpson Housing Portfolio is held in a joint venture with Simpson Housing LP, in which the Account holds a 80% interest, and is presented gross of debt. As of March 31, 2019, this debt had a fair value of $392.5. 1001 Pennsylvania Avenue is presented gross of debt. As of March 31, 2019, this debt had a fair value of $319.5 million. Colorado Center is held in a joint venture with EOP Operating LP, in which the Account holds a 50% interest, and is presented gross of debt. As of March 31, 2019, this debt had a fair value of $265.0 million. Fourth and Madison is presented gross of debt. As of March 31, 2019, this debt had a fair value of $281.7 million. 99 High Street is presented gross of debt. As of March 31, 2019, this debt had a fair value of $272.0 million.

	Real estate investment portfolio turnover rate was 11.8% for the year ended 12/31/2018. Real estate investment portfolio turnover rate is calculated by dividing the lesser of purchases or sales of real estate property investments (including contributions to, or return of capital distributions received from, existing joint venture and limited partnership investments) by the average value of the portfolio of real estate investments held during the period. Marketable securities portfolio turnover rate was 5.1% for the year ended 12/31/2018. Marketable securities portfolio turnover rate is calculated by


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TIAA Retirement Annuity Accounts

TIAA Real Estate Account

Real Estate

As of 3/31/19

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.

This material is for informational or educational purposes only and does not constitute investment advice under ERISA. This material does not take into account any specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on the investor's own objectives and circumstances.

Teachers Insurance and Annuity Association of America (TIAA), New York, NY, issues annuity contracts and certificates.

TIAA-CREF Individual & Institutional Services, LLC, Teachers Personal Investors Services, Inc., Members FINRA and SIPC, distribute securities products.

Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity and may lose value.

THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A CURRENT PROSPECTUS FOR THE TIAA REAL ESTATE ACCOUNT. PLEASE CAREFULLY CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES, AND EXPENSES BEFORE INVESTING AND CAREFULLY READ THE PROSPECTUS. ADDITIONAL COPIES OF THE PROSPECTUS CAN BE OBTAINED BY CALLING 877-518-9161.

A Note About Risks

In general, the value of the TIAA Real Estate Account will fluctuate based on the underlying value of the direct real estate or real estate-related securities in which it invests.

The risks associated with investing in the Real Estate Account include the risks associated with real estate ownership including among other things fluctuations in property values, higher expenses or lower income than expected, risks associated with borrowing and potential environmental problems and liability, as well as risks associated with participant flows and conflicts of interest. For a more complete discussion of these and other risks, please consult the prospectus.

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Tiaa Real Estate Account 8-KResults of Operations and Financial Condition