HomeMy WebLinkAboutAgenda Fire Fighters Pension 060806WPVVI VGI GVVV 11. VJ JVl VL -...L i V
THE PENSION RESOURCE CENTER, INC.
4360 Northlake Boulevard, Suitc 206 •:• Palm Beach Gardens, FL 33410
Phone (561) 6243277 Fax (561) 624 -3278 :• 11 w.RF.50URCECENTF.RS.com
PALM BEACH GARDENS FIREFIGHTERS'
PENSION FUND
Special Meeting of Thursday, June 8, 2006
Location: Palm Beach Gardens Fire Rescue — Station 3
5161 Northlake Blvd.
Palm Beach Gardens, Florida 33410
(561) 776 -1071
Time: 1:30 P.M.
AGENDA
1, Call Meeting to Order
2. Presentations by Real Estate Managers
American Realty Advisors (1:30 P.M.)
Invesco (2:00 P.M.)
• Principal Global Investors (2:30 P,M.)
3. Other Business
4. Schedule Next Meeting: Monday, August 21, 2006 at 11:00 A.M.
S. Adjourn
PLEASE NOTE:
Should any interested party seek to appeal any decision mede by the Board with respect to any matter
considered at such meeting or hearing, he will need a record of the proceedings, and for such purpose he
may need to insure that a verbatim record of the proceedings is made, which record includes the testimony
and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities
Act of 1990, persons needing a special accommodation to partimpate in this meeting should contact The
Pension Resource Center, Inc. no later than four days prior to the meeting,
Palm Beach
Gardens Firefighters'
Pension Fund
Principal U.S.
Property Account
Presented By:
Jennifer Perkins
Assistant Portfolio Manager
Advisor Use Only. Not For Distribution.
Vtobal`
Table Of Contents
I. Organizational Overview ................................................................................................................ ............................... 3
II. Principal U.S. Property Account ............................................................................................... ............................... 6
III. Supplemental Information .............................................................................................................. ............................... 22
Ad<<isur Use Only. Not I-or Distribution.
Globa!
Investors'
rA
PV
PV
PF
Principal Global Investors*
A diversified global asset management
organization
$166.7 billion in assets under
management
1,066 employees including 418
investment professionals
Broad range of capabilities, tailored to
client objectives
Global reach and clarity of purpose
*Principal Global Investors represents the asset management operations of the
Principal Financial Group, including affiliates and subsidiaries. Please refer to
the accompanying "supplemental information" for additional details.
3
Assets Under Management
As of March 31, 2006
By Asset Class
Real
Estate
Equity
$36.9
Fixed
Income
$95.6
Advisor Use Only. Not For Distribution.
Global
A sto
By Client Type
U.S.
Taxable
Investors
$43.0
U.S. Tax -
Exempt
Investors
Non -U.S.
$96.7
Investors
$27.0
Advisor Use Only. Not For Distribution.
Global
A sto
Or
Principal Real Estate Investors
$34.2 billion in real estate assets under
management
Fourth largest manager of real estate, out of
98 managers profiled'
405 real estate employees including 195
investment professionals
Draw from six decades of real estate
investment experience
In -depth coverage of over 60 metropolitan
real estate markets
Core, Value -added
and Opportunistic
Property
Real Estate
Investment Trust
Securities
Commercial
Mortgages, Bridge
and Mezzanine
Loans
'Pensions & Investments magazine, Oct. 17, 2005 (managers ranked by U.S. institutional tax - exempt real estate assets).
2
Advisor Use Only. Not For Distribution.
Commercial
Mortgage- Backed
Securities
Global
Investors'
Representative Client List
Pr City of Auberndale Pr Florida Trowel Trades
Pr City of Deltona Firefighters V, Gainesville Fire & Police
V City of Edgewater V, Gainesville General Employees
Pr City of Hallandale Police & Fire V Louisiana Municipal Police Employees
Pr City of Homestead P, Mississippi PERS
V City of Pembroke Pines Pr New Smyrna Beach Utilities Commission
Pr City of Pinellas Park Firefighters V Orlando Utilities Commission
Pr City of Pinellas Park General Employees Pr Pompano Beach General Employees
Pv City of Pinellas Park Police Pr State of Michigan Retirement System
Pr City of St. Augustine PF Washington State Investment Board
Pr Florida State Board of Administration
All client relationships are considered strictly confidential. This list has been prepared exclusively for use in private presentations to sophisticated investors. The list is
intended to provide a broad cross - section of clients and in no way is intended to represent an endorsement or approval of the firm's advisory services. The list
includes clients of all Principal asset management affiliates, including indirect client relationships investing through commingled funds offered by the Principal
Financial Group.
VGlobal 5 Advisor Use Only. Not For Distribution.
Principal U.S. Property Account
Started in 1982
Daily liquidity — never a withdrawal queue
$5.7 billion private equity real estate fund (gross assets)
$4.5 billion net assets
Leverage: 19%
146 properties
44 cities (MSAs)
The Principal U.S. Property Account is a commingled separate account managed by Principal Real Estate Investors, LLC, and which is
maintained by Principal Life Insurance Company as the Principal U.S. Property Separate Account. It is available through group annuity
contracts of Principal Life Insurance Company.
Data provided as supplemental information only and complements the composite presentation which can be found in the notes to performance section
6
Advisor Use Only. Not For Distribution.
V a1obaV l
tors
. Seattle
• Tacoma
Portland -
Investment Locations
Oakland �, •Sacramento Salt Lake City
San Francisco
Los Angeles .. Riverside
Orange County •
•Phoenix
San Diego '
I
• Denver
Minneapolis •
Milwaukee-
Chicago-
Columbus
Indianapolis
St. Louis •
•Louisville
• Dallas
Austin Houston
San Antonio
Advisor Use Only. Not For Distribution.
. Nashville
• Memphis . Atlanta
. Boston
Newark . New York
Edison = 'Jersey City
Trenton
. Baltimore
• Washington DC
. Orlando
Tampa -
Ft. MyerslNaples-
West Palm Beach
;Ft. Lauderdale
Miami
p PFP'
Global
Jnvestorss"
i
Principal U.S. Property Account Composition
$5.7 billion fund with 146 properties in 44 cities
Property Type
Geographic Exposure
❑ Multi- family
❑ Industrial
• Office
• Retail
❑ South
■ West
❑ East
■ Midwest
Property Size
Strategy Mix
❑ Under $25
❑ $25 -$50 Million
• $50 -$100 Million
• Over $100 Million
■ Stabilized Core
❑ Value Added
Data provided as supplemental information only and complements the composite presentation which can be found in the notes to performance section
r�
Advisor Use Only. Not For Distribution.
70obalpp'
Investors
Current Positions &Strategic Direction
Comments
V Have achieved a relatively neutral property type allocation
V Continue to "urbanize" the portfolio
V Focus on quality
PF Landlord pricing power
o:
Advisor Use Only. Not For Distribution.
Global
Investors'
Property Type Tactical Direction
V Multifamily
— Non - commodity properties
— Developments and joint ventures on value -add
— Sales to condo converters
PF Industrial
— Remain primarily in warehouse sub - sector
— Flex or service center for yield
— Accumulate in major transportation hubs
or Office
— Acquire primarily in major markets
— Urban locations; suburban if at a discount to reproduction cost
— Larger average asset size
Pr Retail
— Diversification of retail formats in portfolio
— Joint ventures on value -add
— Sales of bond -like retail
10
Advisor Use Only. Not For Distribution.
Global
Investors
Recent Acquisitions
New York
336,000 sf
$221 million
5.5% income yield
11 Advisor Use Only. Not For Distribution.
Atlanta
244 units
$34 million
5.0% income yield
Valtbal
Recent Acquisitions
12
Baltimore
221 units
$35 million
7.2% income yield (stabilized)
Advisor Use Only. Not For Distribution.
West Palm Beach
148,000 sf
$27 million
7.5% income yield
Global
I vectors
Recent Acquisitions
Riverside
113,000 sf
$7 million
5.9% income yield (stabilized)
13 Advisor Use Only. Not For Distribution.
Dallas
290 units
$55 million
5.4% income yield
Pabal
Inlovestors"I
Office
Industrial
Apartments
Office
Office
Multi- family
Retail
Office
Multi- family
Retail
Office
Retail
Retail
Office
Office
Land
Industrial
Retail
Land
Office
Multi- family
Industrial
* Partial Sale
Boston, MA
Orange Co., CA
St. Louis, MO
Anaheim, CA
Seattle, WA
Nashville, TN
Orlando, FL
Phoenix, AZ
Nashville, TN
West Palm Beach, FL
Houston, TX
Chicago, IL
Orlando, FL
Minneapolis, MN
Los Angeles, CA
Minneapolis, MN
Chicago, IL
Los Angeles, CA
Naples, FL
Orange County, CA
Seattle, WA
Riverside, CA
2005 Activity
365,313 sf
180,918 sf
284 Units
104,903 sf
148,083 sf
350 units
156,986 sf
475,837sf + 44acres
102 units
128,777 sf
384,389 sf
191,418 sf
320,081 sf
725,561 sf
387,455 sf
0739 acres
412,948 sf
613,902 sf
29.6 acres
272,887 sf
645 units
370,333 sf
14 Advisor Use Only. Not For Distribution.
$109.8
$15.0
$31.5
$23.5
$38.5
$28.8
$24.2
$77.9
$9.8
$27.8
$51.8
$36.8
$82.9
$96.5
$104.3
$0.48
$21.6
$173.2
$26.5
$87.9
$141.6
$24.0
6.8%
6.4%
6.1%
6.0%
7.8%
7.5%
6.8%
7.6%
6.9%
7.7%
8.9%
6.5%
7.9%
7.4%
6.7 %
N/A
8.8%
6.0%
N/A
6.0%
4.9%
5.9%
rGlo
lnvestorss"
2005 Activity
Condominiums*
Nashville, TN
25 units
$3.5
131.8%
Multi- family
Ft. Lauderdale, FL
248 units
$40.3
137.0%
Condominiums *
Nashville, TN
4 units
$0.8
139.4%
Industrial Flex * *
Dallas, TX
56,112 sf
Industrial Flex * *
Chicago, IL
171,064 sf
Warehouse * *
Minneapolis, MN
120,000 sf
Warehouse * *
Minneapolis, MN
183,110 sf
Warehouse * *
Dallas, TX
96,491 sf
$99 7
114.2%
Warehouse * *
Minneapolis, MN
201,600 sf
Warehouse * *
Kansas City, MO
187,600 sf
Warehouse * *
Chicago, IL
260,890 sf
Warehouse * *
San Antonio, TX
109,165 sf
Warehouse * *
Dallas, TX
1,046,852 sf
Warehouse
Denver, CO
196,100 sf
$7.5
104.5%
Office *
Phoenix, AZ
33,448 sf
$5.7
115.8%
Office *
Portland, OR
464,261 sf
$51.1
123.4%
Multi- family
Washington, DC
360 units
$86.7
130.2%
Multi - family *
Atlanta, GA
27 units
$3.6
104.4%
Multi - family *
Nashville, TN
3 units
$0.5
145.5%
* Partial sale
** Portfolio sale — Transaction Amount and Sales Price /Carrying Value reflects portfolio total.
15
Advisor Use Only. Not For Distribution.
'F'
/nvestors- '
16
2006 Activity
Multi- family
Baltimore, MD
221 units
Acquisition
$34.9
7.2%
Office
New York, NY
329,087 sq ft
Acquisition
$221.0
5.5%
Warehouse
Riverside, CA
112,609 sq ft
Acquisition
$6.8
5.9%
Multi- family
Atlanta, GA
244 units
Acquisition
$34.0
5.0%
Multi- family
Dallas, TX
290 units
Acquisition
$55.3
5.4%
Retail
West Palm Beach, FL
147,552 sq ft
Acquisition
$22.2
7.5%
..
Global
A& isur Use Only. Not 1'ur llistributiun. �OVBStor.
17
Florida Holdings
Industrial
Ft. Lauderdale
169,000 sf
12/2001
521,950,000
18.3%
Ft. Lauderdale
100,000 sf
12/2001
$11,800,000
17.5%
Nliami
300,000 sf
11/2003
$20,800,000
17.0 °'0
Miami
82,000 sf
8/2004
$9,000,000
12.2%
Miami
180,000 sf
8/2004
$13,600,000
20.5%
Total Industrial
$77,150,000
Retail
Miami
87,000 sf
9/2002
$14,900,000
19.5%
Ft. Lauderdale
145,000 sf
1/2003
$33,900,000
13.8%
Miami
310,000 sf
6/2003
$67,900,000
16.3%
Ft. Myers
335,000 sf
8/2004
$94,100,000
19.7%
Orlando
176,000 sf
5/2005
$34,200,000
N/A
West Palm Beach
112,000 sf
6/2005
$34,800,000
N/A
Orlando
326,000 sf
8/2005
$101,800,000
N/A
Naples
29.6 Acres
12/2005
$29,800,000
N/A
West Palm Beach
148,000 sf
3/2006
$22,200,000
N/A
Total Retail
$433,600,000
Office
Tampa
130,00 sf
6/1998
$19,400,000
8.7%
Total Florida Holdings $530,150,000
Advisor Use Only. Not For Distribution.
Global
lnvestori
Florida Holdings
169,000 sf
SW 41,t Street, Davie, FL
18
129,000 sf
Lantana & Jog Road, Lake Worth, FL
100,000 s f
SW 28" Way, Hollywood, FL
i
�;a
148,000 sf
Lantana & Jog Road, Lake Worth, FL
Advisor Use Only. Not For Distribution.
Global
lnvestorss"
I U,S, P Acco unt Performance
Pr�nc• �pa
Periods Ending Marui 1, 2-00(
25%
20%
15%
10%
5%
0 C/
1 Year 3 Years 5 Years -
(Jan 30, 1982)
■ Principal U.S. Property Account Property Level*
❑ NCREIF Property Index
El NCREIF - Open End Funds Only
* Excludes cash and leverage
Data provided as supplemental information only and complements the composiiLe presentation onelyear a be
zed. �Please refer
of the accompanying "NoPerformance
tees o ce
P
results reflect time - weighted total returns gross of management fees. Returns f periods
disclosures and important information. Returns are in US dollars. Past performance is not indicative of future results.
Performance Data" for additional
Advisor Use Only. Not For Distribution.
19
Global
Investor
Principal U.S. Property Account Performance
25%
20%
15%
10%
5%
0%
20
1 Year 3 Years 5 Years 10 Years Inception
(Jan 30,
1982)
■ Principal U.S. Property Account Property Level*
O Principal U.S. Property Account Fund Level **
* I ;scludes cash and leverage
* *Fund returns are gross portfolio returns (before fees)
Advisor Use Only. Not For Distribution.
G"0"
lnvestor5
Why Principal U.S. Property Account?
Pr Demonstrated history of success
— Competitive returns
— Low volatility
PF Portfolio diversification
— More investments in more cities - with control
— Relative stability
Increased opportunities
V Excellent fund liquidity
21
Advisor Use Only. Not For Distribution.
F Global
lnvestor5
22
Supplemental Information
RiskAdjusted Returns ............................................................................................................................................................. ............................... 22
TransactionAccess ....................................................................................................................................................................... ............................... 23
InvestmentManagement Fees .................................................................................................................................... ............................... 24
RealEstate Organization ...................................................................................................................................................... ............................... 25
PortfolioManagement Team Approach ................................................................................................... ............................... 26
Biographies................................................................................................................................................................................................ ............................... 27
..
Global
Advisor Use Only. Not For Distribution. Investors'
Risk Adjusted Returns
Risk /Return Characteristics of (—Ore, Upeil -Ll'iU L-gUI.y r-\cal Estate Funds -10 years
(through Q1 2006)
14.0%
13.0%
E 12.0%
a�
.:
11.0%
10.0%
9.0%
1.5%
2.0% 2.5% 3.0%
Risk (annualized standard deviation)
Or Principal U.S. Property Account compared to other open end funds
— One of lowest risk funds
— Returns are attractive
*Other fund names available upon request
23
Advisor Use Only. Not For Distribution.
3.5%
Global
Investorss"'
Acquisitions 2001 -2006
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Equity Transaction Access
Total deals private or not Total multiple Total with a lending Total with at least one of
fully bid transaction deals* relationship w/ seller ** the three
■ % of total deals ■ % of dollar volume
*Repeat business; more than one acquisition with the same seller.
* *Includes direct mortgage lending, debt advisory, debt placement, and /or CMBS advisory or placement.
24 Advisor Use Only. Not For Distribution.
Global
lnvestorss"
Investment Management Fees
Pr 110 basis points
— Accounts less than or equal to $10 million
Pr 100 basis points
— Accounts greater than $10 million but less than or equal to $25 million
Pr 95 basis points
25
— Accounts greater than $25 million
Advisor Use Only. Not For Distribution.
Global
lnvestorss'
Randy Mundt
(Multiple Teams)
John Berg
Portfolio Manager
Jennifer Perkins
Asst Portfolio Manager
Steve Repertinger
Asst Portfolio Manager
26
Real Estate Organization
Andy Warren
Managing Director
Pat Halter
Exec -utive Director
Randy Mundt
Chief Investment Officer
Rod Vogel ' I Todd Everett I I Steve Graves
Managing Director Managing Director Managing Director
Advisor Use Only. Not For Distribution.
Steve Pick
Managing Director
..
Global
lnvestors2'
Portfolio Management - A Team Approach
F Meets quarterly
P, Reviews performance
OF Set strategy & guidelines
27
Asset Management
PF Formal quarterly property review meeting
PF On -going material event meetings
Acquisitions /Dispositions
PF Formal weekly meetings
PF On -going activity meetings
Pr John Berg — Portfolio Manager
Steve Repertinger — Assistant Portfolio Manager
Jennifer Jacobson — Assistant Portfolio Manager
Ted McWilliams — Director of Valuations
Advisor Use Only. Not For Distribution.
PF Meets weekly
PF Reviews transactions over
$1 million
Pr Reviews transactions for
market and strategy
consistency
Global
Investors'
Biographies
John T. Berg, Managing Director - Portfolio Management
John is a director - portfolio management at Principal Real Estate Investors, the dedicated real estate group of Principal Global
Investors. He is the portfolio manager of the Principal U.S. Property Account, a $5.7 billion core open -end real estate fund. John
joined the firm in 1994 and has spent his entire tenure with the firm in the real estate equity area. In addition to portfolio
management, John has significant experience in real estate product development and client communications. Prior to his current
role, he served as an asset manager for more than five years in the commercial real estate equity area with responsibility for a
portfolio totaling several hundred million dollars. John received an MBA from the University of Iowa and a bachelor's degree in
economics and psychology from Georgetown University. He is a member of the National Council of Real Estate Investment
Fiduciaries (NCREIF), the National Association of Real Estate Investment Managers (NAREIM), and the Pension Real Estate
Association (PREA).
Jennifer Perkins - Assistant Portfolio Manager
Jennifer is an assistant portfolio manager at Principal Real Estate Investors, the dedicated real estate group of Principal Global
Investors. She is responsible for overseeing the implementation of various fund and property business plans. Jennifer also assists
in providing oversight and guidance to portfolios regarding tactical property type, regional and property strategies. She joined the
firm in 1995 and spent seven years in the asset management/ dispositions and acquisitions area before joining the Principal U.S.
Property Account area in 2002. Jennifer received an MBA from the University of Iowa and a bachelor's degree in economics from
Central College.
Steve Repertinger, CFA - Assistant Portfolio Manager
Steve is an assistant portfolio manager at Principal Real Estate Investors, the dedicated real estate group of Principal Global
Investors. He is a co- portfolio manager for the Principal U.S. Property Account, an open -end fund invested in private equity real
estate. Steve joined the firm in 1998. Previously, he was a credit analyst at the Bank of Nova Scotia. Steve received an MBA from
the University of Iowa and a bachelor's degree in engineering science from Iowa State University. He holds the Chartered
Financial Analyst designation and is a member of the CFA Institute.
28 Advisor Use Only. Not For Distribution.
Global
Investors 5"
Biographies
Ted E. McWilliams - Director, Appraisal Services
Ted is a director of appraisal services at Principal Real Estate Investors, the dedicated real estate group of Principal Global
Investors. He is responsible for providing appraisal valuation consultation for unaffiliated clients. Ted joined the firm in 1994.
Previously, Ted served as a partner and senior appraiser at Carlson, McClure & McWilliams, Inc. He received a bachelor's degree
in economics from the University of Iowa. Ted holds the MAI and SRA professional designations with the Appraisal Institute.
He is a former State of Iowa Chapter President and Regional Representative of the Appraisal Institute and is a current member of
the Appraisals Institute's Valuation for Financial Reporting task force. Ted was the 2000 -2001 chairman of the National Council
of Real Estate Investment Fiduciaries (NCREIF) Valuation Committee, is a member of NCREIF's Real Estate Information
Standards and Debt Mark to Market subcommittees, a CRE designated member of The Counselors of Real Estate and a Fellow
of the Life Management Institute (FLMI).
29 Advisor Use Only. Not For Distribution.
Global
Investors'
Asset Management Hrriiiates
Principal Global Investors is the asset management arm of the Principal Financial Group®
(The Principal®). As of March 31, 2006, assets under management totaled $166.7 billion.
This includes the asset management operations of the following members of The Principal:
► Principal Global Investors, LLC
► Principal Real Estate Investors, LLC
► Columbus Circle Investors
► Post Advisory Group, LLC
► Spectrum Asset Management, Inc.
► Principal Global Investors (Europe) Limited
► Principal Global Investors (Singapore) Ltd.
► Principal Global Investors (Australia) Ltd.
► Principal International, Inc., its subsidiaries and affiliates
30 Advisor Use Only. Not For Distribution.
Global
Investors="
Annual Disclosure Presentation
The information included in this document has been prepared for distribution only to select sophisticated investors on a one -on -one basis and should not be construed as
advertising, investment advice or a recommendation for the purchase or sale of any security. You should not rely on past performance to make investment decisions. The value of
investments and the income from them may fall as well as rise. The enclosed information has been developed internally and /or obtained from sources the Firm believes to be
reliable; however, Principal Global Investors does not guaranty the accuracy, adequacy or completeness of such information.
Principal Real Estate Investors, LLC has prepared and presented this report in compliance with the Global Investment Performance Standards (GIPS®). The firm maintains a
complete list and description of composites, which is available upon request. The Firm, Principal Real Estate Investors, is the dedicated real estate group of Principal Global
Investors, LLC, a registered investment advisor and a member of the Principal Financial Group. Certain members of the Firm previously operated as Principal Capital
Management, Principal Capital Real Estate Investors, BT Funds Management or the investment department of Principal Life Insurance Company. Principal Real Estate Investors
has been verified firmwide by Ashland Partners & Company LLP from January 1, 1987 through December 31, 2004. A copy of the verification report is available upon request.
Representative portfolios utilized to illustrate portfolio characteristics are selected on the basis of general non - performance -based criteria including length of time under advisor's
management.
Returns from all properties, cash reserves and equivalents and /or other assets held within portfolios are included in performance which is calculated according to industry
standards. No selective periods of performance have been utilized. Performance results reflect total returns including income and market value changes. Performance results are
time - weighted rates of return, net of commissions and transaction costs. Additional information regarding policies for calculating and reporting returns is available upon request.
No alterations of composites as presented here have occurred because of changes in personnel or other reasons at any time.
Results are based on fully discretionary accounts under management, including those accounts no longer with the firm. Fully discretionary accounts are all accounts that do not
contain investment guidelines significantly restricting Principal Real Estate Investors, LLC's ability to manage the assets according to the applicable product.
Unless otherwise noted, the U.S. Dollar is the currency used to express performance. Returns are presented gross of management fees and include the reinvestment of all income.
Actual returns will be reduced by investment advisory fees and other expenses that may be incurred in the management of the account. If applicable, the annual composite
dispersion presented is an asset - weighted standard deviation calculated for the accounts in the composite the entire year.
As of April 1, 21X13, composite policy requires the temporary removal of any portfolio incurring a client initiated significant cash inflow or outflow of 33% of portfolio assets. The
temporary removal of such an account occurs at the beginning of the month in which the significant cash flow occurs and the account re- enters the composite the month after the
cash flow. Additional information regarding the treatment of significant cash flows is available upon request.
Beginning December 31, 1999 an Independent Auditor's Report is issued annually for valuation purposes, and is available upon request. Prior to 1999 Principal Real Estate
Investors, LLC maintained the position that it had fiduciary responsibility of making final value determinations internally.
The index benchmarks are referred to for comparative purposes only and are not necessarily intended to parallel the risk or investment approach of the portfolios included in the
composites.
31 Advisor Use Only. Not For Distribution.
Global
Investorss"
Core Real Estate Property Composite
2(9)5
15 h,1) _i5
5,142
< =5
5.44%
14.01%
19.98%
20.06%
N.A.
2(04
27,306
3,628
< =5
6.04%
7.42%
13.81%
14.48%
N.A.
2003
24,351
2,473
< =5
6.20%
3.15%
9.50%
8.99%
N.A.
2(X)2
21,993
1,726
< =5
8.17%
(3.10 %)
4.87%
6.81%
N.A.
2001
19,197
1,472
< =5
8.40%
(0.59 0%)
7.77%
7.39%
N.A.
2000
19,670
1,301
< =5
8.96%
3.97%
13.19%
12.23%
N.A.
1999
20,338
1,165
< =5
8.06%
3.24%
11.50%
11.36%
N.A.
1998
20,744
869
< =5
8.35%
2.71%
11.23%
16.24%
N.A.
1997
20,063
643
< =5
8.35 %
4.22%
12.83%
13.91%
N.A.
1996
17,570
369
< =5
8.31%
2.37%
10.78 %
10.31%
\. V
N.A. - Information is not statistically meaningful due to an insufficient number of portfolios in the composite for the entire year
Core Real Estate PropexU Cmposite contains the fully discretionary accounts that invest in physical real estate (i.e. Apartment buildings). For comparison purposes this composite is measured
against the NCREIF Index. Information regarding the comparison to the NCREIF Index is available upon request. The fund uses mortgage and other debt with a target leverage ratio of 20 %. The
Core Real Estate Property Composite was created December 31, 2003. A performance examination was conducted on the Core Real Estate Property Composite beginning January 1, 1994.
Fees are collected quarterly, which produces a compounding effect on the total rate of return net of management fees. As an example, the effect of investment management fees on the total value of a
client's portfolio assuming (a) $1,000,000 investment, (b) portfolio return of 8% a year, and (c) 1.10% highest standard annual investment advisory fee would be $11,449 in the first year, and
cumulative effects of $65,609 over five years and $156,865 over ten years. Actual investment advisory fees incurred by clients may vary.
The Principal U.S. Property Account is a commingled separate account managed by Principal Real Estate Investors, LLC, and which is maintained by Principal Life Insurance Company as the
Principal U.S. Property Separate Account. It is available through group annuity contracts of Principal Life Insurance Company.
32 Advisor Use Only. Not For Distribution.
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