TIAA Real Estate Account

03/12/2026 | Press release | Distributed by Public on 03/12/2026 12:07

Annual Report for Fiscal Year Ending December 31, 2025 (Form 10-K)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE ACCOUNT'S 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 Statements and notes contained in this report and with consideration to the sub-section entitled "Forward-looking Statements," which begins below, and the section 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-K 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-K. Forward-looking statements can be identified by the use of words such as "may", "will", "should", "could", "continue", "future", "potential", "believe", "project", "plan", "intend", "seek",
"estimate", "predict", "expect", "anticipate", and similar expressions, or the negative of such terms, or other comparable terminology. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-looking statements also include the assumptions underlying or relating to any of the foregoing statements. Such forward-looking statements are made based on our management's beliefs as well as assumptions made by, and information currently available to, our management.
While management believes the assumptions underlying 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, those described under "Item 1-Summary Risk Factors" and "Item 1A-Risk Factors."
More detailed discussions of certain of these risk factors are contained in the section of this Form 10-K entitled "Item 1A. Risk Factors" and also in the section entitled "Item 7A. Quantitative and Qualitative Disclosures About Market Risk," that 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 is preliminary for the year or quarter ended December 31, 2025 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.
2025 U.S. ECONOMIC AND COMMERCIAL REAL ESTATE OVERVIEW
Economic Overview and Outlook
Key Macro Economic Indicators*
Actuals Forecast
1Q 2025 2Q 2025 3Q 2025 4Q 2025 2026 2027
Economy(1)
Gross Domestic Product ("GDP") (0.6)% 3.8% 4.4% 1.7% 2.1% 1.5%
Employment Growth(2)
111 55 51 (22) 41 46
Unemployment Rate 4.2% 4.1% 4.4% 4.4% 4.6% 4.5%
Interest Rates(3)
10 Year Treasury 4.2% 4.2% 4.2% 4.2% 4.3% 4.3%
Sources: Bureau of Economic Analysis, Bureau of Labor Statistics, 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 average annual values represent a twelve-month average.
(2)Values represented in thousands. Forecast values represent average monthly employment growth in the respective periods.
(3)Treasury rates are an average over the stated period.
Global economic activity remained broadly healthy in 2025, as most major economies proved resilient amidst the general uncertainty throughout the year surrounding the U.S.' shift in trade policy. Global growth forecasts for 2026 call for continued solid growth, as improved growth conditions in Europe should help offset a gradual slowdown in the U.S. economy and Asia.
In the U.S., President Trump's policy agenda continues to shape the economic outlook for the coming year. The administration walked back some tariff measures towards the end of the 2025, but tariffs remain high in 2026 relative to the start of 2025 and are likely to put upward pressure on prices in coming months. In addition, the U.S.
Government's U.S. border and immigration actions have already altered immigration trends and are likely to affect population and economic growth in the coming year. However, several tax provisions in the One Big Beautiful Bill Act also went into effect at the start of 2026, which are expected to provide some stimulus to U.S. businesses and households.
The U.S. economy slowed in the fourth quarter of 2025 but remained generally solid, climbing at an estimated 1.7% annualized pace after robust growth in the second and third quarter. Consumer sentiment has slumped in recent months, but spending has held up well and business investment in expanding artificial intelligence ("AI") capacity continues to drive growth in the economy overall. The labor market has struggled in recent months, however, driven by federal layoffs and reduced hiring from private employers. The economy shed 67,000 jobs in the fourth quarter of 2025, marking the first quarterly decline in the U.S. since the COVID-19 pandemic.
The Federal Reserve continued its rate cutting cycle in the fourth quarter, lowering the target federal funds rate by 25 basis points in both October and December to address weakening conditions in the labor market. Federal officials have signaled that future rate cuts are likely in 2026, but inflation remains stubbornly above the Federal Reserve's target rate of 2% and tariff impacts are likely to put upward pressure on prices throughout the year. As a result, markets expect that the pace of rate cuts will slow, with 1-2 rates cuts anticipated in 2026. Yields on 10-year Treasuries were essentially unchanged in the fourth quarter, finishing the year at 4.18%.
Economic growth in Europe is poised to accelerate in 2026, as uncertainty surrounding U.S. trade policy begins to subside. Increased business investment is expected throughout the year, as companies that delayed decisions in 2025 are likely to increase capital expenditures now that there is greater clarity. In addition, fiscal policy in the region is expected to be more supportive this year, led by Germany's plans to increase spending on infrastructure and defense. The European Central Bank (ECB) held interest rates steady throughout the second half of the year. Inflation is trending towards target in most countries in the region, however, and increased imports from China are likely to provide downward pressure on prices in coming quarters, given room for the ECB to resume rates cuts this year if needed to stimulate growth.
In Asia, China's economy grew 4.5% year-over-year in the fourth quarter of 2025, down from the 4.8% pace in the previous quarter. China's export sector recorded a record $1.2 trillion surplus in 2025 despite higher tariffs on goods headed to the U.S. However, consumer spending continued to struggle at the end of the year, raising concerns about the pace of growth as the country attempts to shift away from its export and property investment growth model. Both monetary and fiscal policy are expected to be stimulative during the year.
Real Estate Market Conditions and Outlook
Commercial real estate, much like other investment categories, contends with some unpredictability due to expectations of decelerating economic expansion and ongoing shifts in policy direction. That said, property values in the commercial sector already experienced a significant adjustment period spanning from the end of 2022 into the beginning of 2024, primarily triggered by the sharp rise in long-term interest rates during 2022. This previous correction reduces the probability of another substantial drop in valuations and creates a favorable opportunity for those looking to invest as the market enters a fresh expansion phase. The United States commercial property market's rebound continued in the fourth quarter of 2025, supported by steadying credit conditions and better availability of financing. Furthermore, development activity has been tapering across most property types, which is expected to result in stabilized or improved vacancy and help maintain healthier market conditions for real estate performance.
The Account returned 1.01% in the fourth quarter of 2025 and 3.97% for the year. The Account had slight appreciation in property values in the fourth quarter and property fundamentals remain strong. Future transaction activity will be consistent with the Account's multi-year strategy of reducing exposure to anticipated underperforming sectors such as traditional office and regional malls and increasing allocations to anticipated outperforming sectors such as housing, industrial, necessity retail and alternatives.
Data for the Account's top five markets in terms of market value as of December 31, 2025 are provided below. The five markets presented below represent 40.8% of the Account's total real estate portfolio. Across all markets, the Account's properties are 90.4% leased.
Top 5 Metro Areas by Fair Value
Account %
Leased
Number of
Property
Investments
Metro Area
Fair Value
as a % of Total
RE Portfolio*
Metro Area
Fair Value
as a % of Total
Investments*
Washington-Arlington-Alexandria, DC-VA-MD-WV 87.6% 17 8.8% 7.3%
Dallas-Fort Worth-Arlington, TX 95.0% 12 8.8% 7.3%
Riverside-San Bernardino-Ontario, CA 91.3% 6 8.7% 7.2%
Los Angeles-Long Beach-Anaheim, CA 88.2% 20 8.4% 6.9%
Atlanta-Sandy Springs-Roswell, GA 92.5% 8 6.1% 5.0%
*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
The office sector remains challenged but stabilized over the second half of 2025 and is in the early stages of recovery. Net absorption remained positive for a second consecutive quarter, and vacancy fell by 12 basis points over the quarter. Additionally, there are attractive opportunities emerging for high-quality assets. Newer properties have collectively seen improving occupancy since early 2024. Starts are near record lows, leading to virtually no new supply over the mid-term and net negative supply after factoring in demolitions and conversions of obsolete space into other uses. The result will likely be a shortage of high-quality space. Prices bottomed early last year, falling 40% from the peak and have increased by 4.4% since. A supply shortage of quality assets combined with comparatively high going-in yields are starting to drive a compelling relative value opportunity.
Vacancy nationwide decreased from 14.1% in the third quarter to 14.0% in the fourth quarter of 2025, as reported by CoStar. The vacancy rate of the Account's office portfolio remained at 16.5% in the third and fourth quarter of 2025. Vacancy in the Washington, Dallas, Houston and San Diego metro areas is primarily driven by economic uncertainty and hybrid work adoption. The decrease in vacancy in the New York metro areas is driven by stabilization of in-office attendance, high quality renovated buildings and a major lease renewal with Bilt Technologies Inc.
Account Vacancy
Market Vacancy*
Top 5 Office Metropolitan Areas Total Sector by Metro Area ($M) % of Total
Investments 		December 31, 2025 September 30, 2025 December 31, 2025 September 30, 2025
Account / Nation 16.5% 16.5% 14.0% 14.1%
Washington-Arlington-Alexandria, DC-VA-MD-WV $ 756.1 3.0% 20.8% 19.7% 17.4% 17.5%
Dallas-Fort Worth-Arlington, TX 644.3 2.5% 9.0% 7.4% 17.8% 17.9%
San Diego-Carlsbad, CA 591.1 2.3% 5.4% 2.6% 13.0% 12.9%
Houston-The Woodlands-Sugar Land, TX 305.9 1.2% 11.9% 11.7% 19.6% 19.8%
New York-Newark-Jersey City, NY-NJ-PA 299.9 1.2% 8.6% 18.0% 13.1% 13.3%
*Source: CoStar. Market vacancy is defined as the percentage of space available for rent. The Account's vacancy is defined as the percentage of unleased square footage.
Industrial
Industrial fundamentals solidified in the fourth quarter after deteriorating steadily over the past two and a half years, with vacancy in the sector holding steady at 7.4%, according to Costar. Much of the weakness during the middle of 2025 was driven by policy uncertainty surrounding tariff and trade rule changes. Demand growth improved to a three-year high of 64.2 million square feet at the end of the year, helped by reductions in some of the most damaging tariffs and greater clarity on trade terms between the United States and key trading partners. Meanwhile supply growth, which drove much of the vacancy increase in 2023-2024, has trended lower and new industrial construction continues to hover near decade lows. In the near term, expected demand conditions are anticipated to potentially be stronger in 2026, and the sector still benefits from long term tailwinds from growing e-commerce and
supply chain modernization. Consequently, well-located functional industrial space remains an attractive target for investment, well-positioned to outperform as fundamentals continue to stabilize in coming quarters.
The average vacancy rate of the industrial properties held by the Account increased slightly from 8.6% in the third quarter of 2025 to 8.7% in the fourth quarter of 2025 driven primarily by the disposition of two properties that had high occupancy. The increase in vacancy in the Los Angeles metro area is driven by slowing trade, cost conscious demands and elevated rents. The vacancy decrease in the Miami metro area is driven by an increase in regional trade demands, population growth and location resilience due to limited land availability.
Account Vacancy
Market Vacancy*
Top 5 Industrial Metropolitan Areas Total Sector by Metro Area ($M) % of Total
Investments 		December 31, 2025 September 30, 2025 December 31, 2025 September 30, 2025
Account / Nation 8.7% 8.6% 7.4% 7.4%
Riverside-San Bernardino-Ontario, CA $ 1,843.8 7.2% 8.7% 8.7% 8.7% 8.7%
Dallas-Fort Worth-Arlington, TX 746.9 2.9% 1.9% 1.9% 8.9% 9.1%
Seattle-Tacoma-Bellevue, WA 598.7 2.4% 17.7% 17.3% 9.3% 8.9%
Los Angeles-Long Beach-Anaheim, CA 581.2 2.3% 15.3% 14.2% 6.2% 6.3%
Miami-Fort Lauderdale-West Palm Beach, FL 571.8 2.2% 2.9% 3.5% 6.5% 6.2%
*Source: CoStar. Market vacancy is defined as the percentage of space available for rent. The Account's vacancy is defined as the percentage of unleased square footage.
Multi-Family
The multi-family sector is transitioning toward a more balanced supply-demand dynamic after a historic wave of new deliveries and absorption. Net absorption in the fourth quarter of 2025 reached approximately 51,000 units, roughly half the 100,000 units absorbed during the same period in 2024. The pullback in the sector will be a secular tailwind for the apartment market over the medium term. As a result of relatively limited new supply in the coming years, market fundamentals are expected to continue strengthening. For-sale affordability headwinds are expected to provide a buoy for demand in the medium term, particularly in the form of resident retention.
The national apartment vacancy rate increased from 6.7% in the previous quarter to 7.0% in the fourth quarter of 2025, as reported by Real Page. The average vacancy rate of the apartment properties held by the Account increased from 3.7% in the third quarter of 2025 to 6.9% in the fourth quarter of 2025, primarily driven by the impact of multiple lease expirations and market competition from competitors in active lease-up and stabilization phases.
Account Vacancy
Market Vacancy*
Top 5 Apartment Metropolitan Areas Total Sector by
Metro Area ($M) 		% of Total
Investments 		December 31, 2025 September 30, 2025 December 31, 2025 September 30, 2025
Account / Nation 6.9% 3.7% 7.0% 6.7%
Washington-Arlington-Alexandria, DC-VA-MD-WV $ 772.0 3.0% 7.5% 0.9% 7.3% 6.6%
Los Angeles-Long Beach-Anaheim, CA 609.1 2.4% 6.7% 1.1% 5.2% 4.9%
Miami-Fort Lauderdale-West Palm Beach, FL 499.9 2.0% 6.0% 0.1% 5.8% 5.6%
Atlanta-Sandy Springs-Roswell, GA 376.8 1.5% 7.1% 0.2% 8.5% 8.2%
New York-Newark-Jersey City, NY-NJ-PA 303.0 1.2% 5.5% 6.7% 2.3% 2.2%
*Source: RealPage. Market vacancy is the percentage of units vacant. The Account's vacancy is defined as the percentage of unleased square footage.
Retail
Retail fundamentals have shown resilience despite uncertainty pertaining to changing United States policies, a slowing economy, and impacts on consumer spending. Vacancy rates modestly increased from historic lows due to store closures that occurred in the first half of 2025, however, the vacancy rate started to improve in the second half of the year on the back of stable leasing activity and fewer move outs. Construction activity remains at historic lows, which provides a buffer for occupancy rates even if demand softens. Leasing continues to be dominated by smaller format, freestanding, or in-line spaces with service-based tenants leading growth. The sector continues to see a performance gap determined by quality and relevance with consumers with Class A and higher-rated malls maintaining strong performance while lower-rated properties struggle. Meanwhile, necessity-based and grocery-anchored retail properties demonstrate defensive characteristics, as grocery spending typically remains relatively inelastic during periods of economic uncertainty.
The Account's retail portfolio is composed primarily of high-end lifestyle shopping centers and regional malls in large metropolitan or tourist centers, which tend to have higher vacancy rates than the overall national retail market. The Account has over 1,100 retailers across its portfolio, with its largest retail exposure comprising less than 5.0% of total retail rentable area. The retail portfolio has managed to minimize significant exposure to any single retailer. The Account's retail vacancy increased to 9.3% in the fourth quarter, up from 8.9% in the third quarter, driven by terminated leases and a disposition during the quarter. The Power Center sector, which are commonly large retailers, saw a decrease to 11.5% in the fourth quarter, down from 12.2% in the previous quarter, driven by improved tenant performance and suburban demand.
Account Vacancy
Market Vacancy*
Total by
Retail Type ($M) 		% of Total
Investments 		December 31, 2025 September 30, 2025 December 31, 2025 September 30, 2024
National Retail 9.3% 8.9% 4.3% 4.3%
Lifestyle & Mall $ 1,159.6 4.6% 9.0% 8.8% 8.5% 8.5%
Neighborhood, Community & Strip** 1,046.7 4.1% 9.6% 8.7% 6.1% 6.1%
Power Center** 337.5 1.3% 11.5% 12.2% 4.6% 4.6%
*Source: CoStar. Market vacancy is the percentage of space available for rent. The Account's vacancy is defined as the percentage of unleased square footage
**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.
Hotel
The U.S. hotel industry entered a period of moderating growth with mixed performance signals, driven by shifting travel demand and broader macroeconomic headwinds. Throughout the year, occupancy rates softened due to inflation pressures, elevated costs and slower business travel. Strategic adoption of technology for pricing and personalization, along with a rebound in leisure travel offered pockets of stability, but overall performance remained constrained.
The Account's exposure to the hospitality sector is limited to one hotel in the Dallas metro area. The hotel is located in a business park and caters largely to business travelers. Key metrics to track hotel performance include occupancy, the average daily rate ("ADR") and revenue per available room ("RevPAR"). For the quarter ended December 31, 2025, occupancy of the property increased to 60.2%, as compared to 47.6% in the previous quarter. ADR and Total RevPAR were $153.98 and $159.54, respectively, for the fourth quarter of 2025, as compared to $146.90 and $121.59, respectively, in the prior quarter.
INVESTMENTS
As of December 31, 2025, the Account had total net assets of $22.8 billion, a 1.2% decrease from December 31, 2024.
As of December 31, 2025, the Account held 83.0% of its total investments in real estate and real estate joint ventures. The Account also held investments a real estate operating business representing 4.2% of total investments, U.S. treasury securities representing 3.6% of total investments, real estate funds representing 3.3% of total investments, investments in loans receivable, including those with related parties, representing 2.7% of total investments, U.S. government agency notes representing 2.4% of total investments and U.S. short term repos representing 0.8% of total investments.
The outstanding principal on loans payable on the Account's wholly-owned real estate portfolio as of December 31, 2025 was $0.6 billion. The Account's proportionate share of outstanding principal on loans payable within its joint venture investments was $2.6 billion, which is netted against the underlying properties when determining the joint venture investments fair value presented on the Consolidated Schedules of Investments. Total outstanding principal on the Account's portfolio as of December 31, 2025, inclusive of loans payable within the joint venture investments, $1.6 billion in senior notes payables, $0.2 billion in loans collateralized by a loan receivable and $0.2billion in line of credit, was $5.2 billion, which represented a loan-to-value ratio of 18.4%.
Management believes that the Account's real estate portfolio is diversified by location and property type. 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 may reinvest any sale proceeds that it does not need to pay operating expenses or to meet debt service or redemption requests (e.g., contract owner withdrawals or benefit payments).
The following charts reflect the diversification of the Account's real estate assets by region and property type and the Account's ten largest investments based on fair value at December 31, 2025.
Diversification by Fair Value(1)
West(2)
South(3)
East(4)
Midwest(5)
Foreign(6)
Total
Industrial 18.8 % 11.3 % 3.6 % 2.1 % - % 35.8 %
Apartments
7.4 % 10.2 % 8.2 % 1.0 % - % 26.8 %
Office
4.7 % 5.1 % 7.0 % 0.3 % - % 17.1 %
Retail 4.5 % 4.8 % 2.7 % 1.1 % - % 13.1 %
Other(7)
2.0 % 2.5 % 1.7 % 0.2 % 0.8 % 7.2 %
Total 37.4 % 33.9 % 23.2 % 4.7 % 0.8 % 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)Properties in the "West" region are located in: AK, AZ, CA, CO, HI, ID, MT, NM, NV, OR, UT, WA, WY
(3)Properties in the "South" region are located in: AL, AR, FL, GA, LA, MS, OK, TN, TX
(4)Properties in the "East" region are located in: CT, DC, DE, KY, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT, WV
(5)Properties in the "Midwest" region are located in: IA, IL, IN, KS, MI, MN, MO, ND, NE, OH, SD, WI
(6)Represents developable land investments located outside of the United States.
(7)Represents interests in Storage Portfolio investments, a hotel investment and land.
Ten Largest Real Estate Investments
Property Investment Name 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)
Simpson Housing Portfolio 80% Various U.S.A. Apartment $ 1,023.4 $ 484.7 $ 538.7 4.3% 3.7%
Ontario Industrial Portfolio 100% Ontario CA Industrial 958.1 - 958.1 4.1% 3.4%
Fashion Show 50% Las Vegas NV Retail 826.3 415.5 410.8 3.5% 2.9%
Lincoln Centre 100% Dallas TX Office 603.9 - 603.9 2.6% 2.2%
Campus Pointe 43% San Diego CA Office 595.2 - 595.2 2.5% 2.1%
Storage Portfolio II 90% Various U.S.A. Storage 577.3 170.8 406.5 2.4% 2.1%
The Florida Mall 50% Orlando FL Retail 536.3 300.0 236.3 2.3% 1.9%
Dallas Industrial Portfolio 100% Dallas TX Industrial 508.4 - 508.4 2.1% 1.8%
1001 Pennsylvania Avenue 100% Washington DC Office 450.1 - 450.1 1.9% 1.6%
Seavest MOB 98% Various U.S.A. Office 396.4 89.1 307.3 1.7% 1.4%
(1)The Account's share of the fair value of the property investment, gross of debt.
(2)Debt fair values are presented at the Account's ownership interest.
(3)The Account's share of the fair value of the property investment, net of debt.
(4)Total real estate portfolio is the aggregate fair value of the Account's wholly-owned properties and the properties held within a joint venture, gross of debt.
(5)Total investments are the aggregate fair value of all investments held by the Account, gross of debt. Total investments, as calculated within this table, will vary from total investments, as calculated in the Account's Schedule of Investments, as joint venture investments are presented in the Schedule of Investments at their net equity position in accordance with accounting principles generally accepted in the United States ("U.S. GAAP").
Property Investments and Mortgage Debt Acquired in 2025 (millions)
Property Name Ownership Percentage Property Type City State
Net Purchase Price(1)
Mortgage Debt
Wholly-Owned
101 E. Crossroads Parkway 100.00% Industrial Bolingbrook IL $ 32.5 $ -
Reno Industrial Portfolio 100.00% Industrial Reno NV 90.1 -
Hillside Village 100.00% Retail Dallas TX 94.4 -
Campus Marketplace 100.00% Retail San Marcos CA 85.7 -
River Oaks Shopping Center 100.00% Retail Santa Clara CA 105.9 -
1530 Broadway Avenue 100.00% Industrial Braselton GA 26.4 -
Uptown La Grange 100.00% Multi-family Lagrange IL 87.9 -
Salt Lake Light Industrial Portfolio 100.00% Industrial Salt Lake City UT 36.4 -
The 266 Framingham 100.00% Multi-family Framingham MA 112.2 -
Somerset Logistics Center 100.00% Land Somerset NJ 27.0 -
Bulls Bay Highway 100.00% Industrial Jacksonville FL 20.4 -
Algonquin Commons 100.00% Retail Algonquin IL 98.6 -
Knightdale Gateway 100.00% Industrial Raleigh NC 102.8 -
62nd Street North(3)
100.00% Industrial Largo FL 40.8 -
Mercy Star Court(3)
100.00% Industrial Orlando FL 27.5 -
Paseo De La Fuente(3)
100.00% Industrial San Diego CA 30.5 -
4417 192nd Street East(3)
100.00% Industrial Tacoma WA 41.1 -
4620 B Street Northwest(3)
100.00% Industrial Auburn WA 13.4 -
Property Investments and Mortgage Debt Acquired in 2025 (millions)
Property Name Ownership Percentage Property Type City State
Net Purchase Price(1)
Mortgage Debt
6615 West Boston Street(3)
100.00% Industrial Chandler AZ 14.7 -
Total Wholly-Owned $ 1,088.3 $ -
Joint Ventures
817 Broadway(4)
31.34%
Multi-family
New York
NY
$ - $ 38.4
Highlands at Dearborn(5)
80.00% Multi-family Peabody MA - 93.6
Reserve at Beachline(5)
80.00% Multi-family Orlando FL - 38.4
Citrine(5)
80.00% Multi-family Phoenix AZ - 47.6
Chancery Village at the Park(5)
80.00% Multi-family Cary NC - 27.0
Mira Bella(5)
80.00% Multi-family San Diego CA - 59.0
Montelena(5)
80.00% Multi-family Grapevine TX - 25.0
Promenade Park(5)
80.00% Multi-family Charlotte NC - 33.8
The Sanctuary at Tallyns Reach(5)
80.00% Multi-family Aurora CO - 76.6
Silos South End(5)
80.00% Multi-family Charlotte NC - 56.8
The Ranch(5)
80.00% Multi-family Austin TX - 27.0
Total Joint Ventures $ - $ 484.8
Total Properties Acquired $ 1,088.3 $ 484.8
Property Investments Sold and Mortgage Debt Paid-off in 2025 (millions)
Property Name Ownership Percentage Property
Type 		City State
Net Sales Price(2)
Mortgage Loan Payoff
Wholly-Owned
The Phoenician 100.00% Retail Fayetteville GA $ 49.5 $ -
1401 H Street NW 100.00% Retail Lake Mary FL 124.0 115.0
Circa Green Lake 100.00% Multi-family Seattle WA - 52.0
Union - South Lake Union 100.00% Multi-family Seattle WA - 57.0
Creekside Alta Loma 100.00% Multi-family Cucamonga CA 89.4 -
Ellipse at Ballston 100.00% Office Arlington VA 19.5 -
99 High Street(6)
100.00% Office Boston MA 220.2 277.0
88 Kearny 100.00% Office San Francisco CA 69.3 -
The Bridges 100.00% Multi-family Minneapolis MN 32.6 -
The Knoll 100.00% Multi-family Minneapolis MN 21.6 -
Westlake Business 100.00% Office West Lake Village CA 22.8 -
30700 Russell Ranch 100.00% Office West Lake Village CA 15.9 -
Holly Street Village 100.00% Multi-family Pasadena CA - 81.0
The Henley at Kingstowne 100.00% Multi-family Alexandria VA - 64.3
Spring House Innovation Park 100.00% Office Lower Gwynedd PA - 116.8
Montecito Apartments 100.00% Multi-family Houston TX 46.6 -
Stella 100.00% Multi-family Marina Del Ray CA 132.6 -
Chisholm Trail 100.00% Industrial Houston TX 8.7 -
Monee Development 100.00% Industrial Monee IL 69.7 -
Total Wholly-Owned $ 922.4 $ 763.1
Property Investments Sold and Mortgage Debt Paid-off in 2025 (millions)
Property Name Ownership Percentage Property
Type 		City State
Net Sales Price(2)
Mortgage Loan Payoff
Joint Ventures
Park on Morton(7)
97.00% Multi-family Bloomington IN $ 68.5 $ 26.9
Aspen Heights(7)
97.00% Multi-family Austin TX 74.9 -
Cabana Beach San Marcos(7)
97.00% Multi-family San Marcos TX 49.4 22.8
The Theory(7)
97.00% Multi-family Raleigh NC 81.5 -
Cabana Beach Gainesville(7)
97.00% Multi-family Gainesville FL 62.8 -
440 Ninth Avenue(8)
88.52% Office New York NY 92.2 135.0
The Forum - Sam Houston 97.00% Multi-family Huntsville TX - 15.9
Birkdale Village 93.00% Retail Huntersville NC 252.8 -
SV MOB Pittsburg 98.72% Office Pittsburgh PA - 66.1
The Brockman Lofts(5)
80.00% Multi-family Los Angeles CA - 17.7
District at Greenbriar(5)
80.00% Multi-family Houston TX - 25.1
Total Joint Ventures $ 682.1 $ 309.5
Total Properties Sold $ 1,604.5 $ 1,072.6
(1)The net purchase price represents the purchase price less closing costs, at the Account's share.
(2)The net sales price represents the sale price less selling expenses, at the Account's share .
(3)Property is held in Cabot Industrial Portfolio.
(4)Mortgage loan balance restructured to reflect ownership reduction from 61.46% to 31.34%.
(5)Property was held in Simpson Housing Portfolio.
(6)The lender agreed to forgive $50.0 million of the original principal balance outstanding and the remaining $277.0 million was assumed by the buyer at the time of purchase.
(7)Property was held in THP Student Housing Portfolio
(8)A portion of the outstanding debt was forgiven by the lender during sale of property.
Results of Operations
Year Ended December 31, 2025 Compared to Year Ended December 31, 2024
Net Investment Income
The following table shows the results of operations for the years ended December 31, 2025 and 2024 and the dollar and percentage changes for those periods (millions).
Years Ended December 31, Change
2025 2024 $ %
INVESTMENT INCOME
Real estate income, net
Rental income $ 1,251.8 $ 1,360.7 $ (108.9) (8.0) %
Real estate property level expenses:
Operating expenses 310.3 340.6 (30.3) (8.9) %
Real estate taxes 181.3 200.0 (18.7) (9.4) %
Interest expense 59.2 86.8 (27.6) (31.8) %
Total real estate property level expenses 550.8 627.4 (76.6) (12.2) %
Real estate income, net 701.0 733.3 (32.3) (4.4) %
Income from real estate joint ventures 159.5 202.8 (43.3) (21.4) %
Income from real estate funds 23.4 13.7 9.7 70.8 %
Interest income
124.8 128.8 (4.0) (3.1) %
TOTAL INVESTMENT INCOME 1,008.7 1,078.6 (69.9) (6.5) %
Expenses
Investment management charges 69.2 83.0 (13.8) (16.6) %
Administrative charges 56.3 63.4 (7.1) (11.2) %
Distribution charges 9.6 15.1 (5.5) (36.4) %
Liquidity guarantee charges 63.5 63.7 (0.2) (0.3) %
Interest expense 57.7 53.5 4.2 7.9 %
TOTAL EXPENSES 256.3 278.7 (22.4) (8.0) %
INVESTMENT INCOME, NET $ 752.4 $ 799.9 $ (47.5) (5.9) %
The table below illustrates and compares rental income, operating expenses and real estate taxes for properties held by the Account for the entirety of each respective year, "same property," as compared to the comparative increases or decreases associated with the acquisition and disposition of properties throughout each respective year.
Rental Income Operating Expenses Real Estate Taxes
Change Change Change
2025 2024 $ % 2025 2024 $ % 2025 2024 $ %
Same Property $ 1,119.9 $ 1,117.0 $ 2.9 0.3 % $ 274.3 $ 268.5 $ 5.8 2.2 % $ 161.3 $ 153.6 $ 7.7 5.0 %
Properties Acquired 56.0 8.0 48.0 600.0 % 14.4 3.1 11.3 364.5 % 7.7 1.1 6.6 600.0 %
Properties Sold 75.9 235.7 (159.8) (67.8) % 21.6 69.0 (47.4) (68.7) % 12.3 45.3 (33.0) (72.8) %
Impact of Properties Acquired/Sold 131.9 243.7 (111.8) (45.9) % 36.0 72.1 (36.1) (50.1) % 20.0 46.4 (26.4) (56.9) %
Total Property Portfolio $ 1,251.8 $ 1,360.7 $ (108.9) (8.0) % $ 310.3 $ 340.6 $ (30.3) (8.9) % $ 181.3 $ 200.0 $ (18.7) (9.4) %
Rental Income:
Rental income decreased $108.9 million, or 8.0%, compared to the prior year, primarily attributable to property dispositions; as indicated in the table above, underperformance in the office sector driven by macroeconomic pressures including slower job growth and weakening consumer confidence. These unfavorable variances were partially offset by rental increases, bad debt recoveries, reduced lease concessions and stronger leasing demand across the industrial, multi-family and retail sectors.
Operating Expenses:
Operating expenses decreased $30.3 million, or 8.9%, compared to the prior year, primarily attributable to property dispositions; as indicated in the table above. The favorable variance was partially offset by cost escalations in utilities, repairs and maintenance, space conversion activities, and common area maintenance, with the retail and office sectors experiencing the most significant increases.
Real Estate Taxes:
Real estate taxes decreased $18.7 million, or 9.4%, compared to the prior year, primarily attributable to property dispositions; as indicated in the table above. This decline was partially offset by increases in assessed property values driven by post-pandemic recovery and strong leisure and corporate travel demand at the Account's sole hotel property, as well as appreciation in the industrial sector.
Interest Expense:
Interest expense on mortgage loans decreased $27.6 million, or 31.8%, as a result of lower average outstanding principal balance, as compared to the same period in 2024.
Income from Real Estate Joint Ventures:
Income from real estate joint ventures decreased $43.3 million, or 21.4%, most notably driven by lower distributed income from four of the Account's retail joint venture investments, due to higher operating expenses.
Income from Real Estate Funds:
Income from real estate funds increased $9.7 million,or 70.8%, as a result of increased distributed income from four of the Account's real estate fund investments.
Interest income:
Interest income decreased $4.0 million, or 3.1%,in comparison to the prior year, primarily attributable to a continued decrease in the Account's loan receivable held.
Expenses:
Investment management, administrative and distribution costs charged to the Account are associated with managing the Account. Investment management charges are comprised primarily of fixed components, but fluctuate based on the size of the Account's portfolio of investments, whereas administrative and distribution charges are comprised of more variable components that generally correspond with movements in net assets. Both distribution services (pursuant to the Distribution Agreement) and administrative services are provided to the Account by Services and TIAA, respectively, on an at cost basis. Investment management expenses decreased $13.8 million compared to the prior year, primarily attributable to a reduction in charge rates. Administrative expenses decreased $7.1 million due to lower average net assets during the year. Distribution charges decreased by $5.5 million compared to the prior year, primarily attributable to a decrease in the applicable charge rate and lower average net assets.
Mortality and expense risk and liquidity guarantee expenses are contractual charges to the Account from TIAA for TIAA's assumption of these risks and provision of the liquidity guarantee. The rate for these charges is established annually and is charged at a fixed rate based on the Account's net assets. There were no mortality and expense risk expenses in 2025 or the prior year. Liquidity guarantee expenses decreased $0.2 million as a result of lower average nets assets during the year.
Interest expense on the Account's other unsecured debt and line of credit increased $4.2 million when compared to prior year, due to a higher average outstanding principal balance and interest rates on the Account's Credit Agreement.
Net Realized and Unrealized Gains and Losses on Investments and Debt
The following table shows the net realized and unrealized (losses) gains on investments and debt for the years ended December 31, 2025 and 2024 and the dollar and percentage changes for those periods (millions).
Years Ended December 31, Change
2025 2024 $ %
NET REALIZED AND UNREALIZED (LOSS) GAIN ON INVESTMENTS AND DEBT
Net realized (loss) gain on investments:
Real estate properties $ (715.3) $ (117.7) $ (597.6) 507.7 %
Real estate joint ventures (94.5) (206.9) 112.4 (54.3) %
Real estate funds 8.4 0.5 7.9 1,580.0 %
Foreign currency translation 0.2 (0.2) 0.4 (200.0) %
Marketable securities 0.1 - 0.1 N/M
Loans receivable (113.0) (170.4) 57.4 (33.7) %
Loans payable 61.7 - 61.7 N/M
Total realized (loss) gain on investments (852.4) (494.7) (357.7) 72.3 %
Net change in unrealized (loss) gain on:
Real estate properties 685.0 (1,021.3) 1,706.3 (167.1) %
Real estate joint ventures 210.4 (367.6) 578.0 (157.2) %
Real estate funds (21.1) (29.0) 7.9 (27.2) %
Real estate operating business 10.2 145.4 (135.2) (93.0) %
Marketable securities 0.1 - 0.1 N/M
Loans receivable 76.5 (0.3) 76.8 (25,600.0) %
Loans receivable with related parties - 0.7 (0.7) (100.0) %
Loans payable 13.3 (11.3) 24.6 (217.7) %
Other unsecured debt 8.3 4.5 3.8 84.4 %
Net change in unrealized (loss) gain on investments and debt 982.7 (1,278.9) 2,261.6 (176.8) %
NET REALIZED AND UNREALIZED (LOSS) GAIN ON INVESTMENTS AND DEBT $ 130.3 $ (1,773.6) $ 1,903.9 (107.3) %
N/M-Not meaningful
Real Estate Properties:
Wholly-owned real estate investments experienced net realized and unrealized losses of $30.3 million during 2025, compared to net losses of $1.1 billion during 2024. While the Account saw appreciation across most core real estate sectors during the year, the significant unrealized gains primarily emanated from the multi-family and office sectors due to interest rate cuts improving property values, strong rental fundamentals and leasing demand. The realized losses in 2025 were attributable to the sale of six multi-family properties in Texas, California and Minnesota; six office properties in Washington, D.C, Virginia, Massachusetts and California; and two industrial properties in Texas and Illinois. Previous year witnessed depreciation across most core real estate sectors during the year, the significant unrealized losses primarily emanated from office properties in the Eastern region due to declining occupancy and stagnant demand. The sale of eight retail properties, five office properties, and three multi-family properties drove the net loss during the year.
Real Estate Joint Ventures:
Real estate joint ventures experienced net realized and unrealized gains of $115.9 million in 2025, compared to $574.5 million of net losses during 2024. Unrealized gains were primarily driven by the Account's joint venture investments in the office and retail sectors due to increased market demand, recapitalization efforts and macroeconomic conditions producing mixed cap rates across the sectors. The disposition of a retail property in North Carolina, an office building in New York and five student housing properties in Texas, North Carolina and Florida were contributors to the realized loss during the year. Unrealized losses in 2024 were primarily driven by the Account's joint venture investments in the office, retail and apartment sectors due to increases in discount and
capitalization rates, economic conditions, as well as other market factors. The disposition of a retail property in FL and two office properties in CA and MA were contributors to the net loss during the year.
Real Estate Funds:
Real estate funds incurred net realized and unrealized losses of $12.7 million in 2025, compared to $28.5 million in net realized and unrealized losses during 2024. The unrealized losses in the current year can be attributed unfavorable valuation of four of the Account's real estate funds, due to higher capitalization rates. Current period realized gains were primarily due to profit generated from the sale of a partnership's assets. The losses in the previous year can be attributed to elevated capitalization rates, resulting in adverse valuation that have impacted eight of the Account's funds.
Real Estate Operating Business:
The Account's real estate operating business experienced unrealized gains of $10.2 million during 2025 compared to $145.4 million during 2024. Unrealized gains in 2025 were primarily attributed to favorable valuations resulting from a significant lease that is expected to add substantial value to the overall operating business. Unrealized gains in the prior year were the result of future growth experienced throughout the previous year.
Foreign Currency Translation:
The Account realized a gain of $0.2 million due to foreign currency translation during 2025 due to favorable exchange rates.
Marketable Securities:
The Account's marketable securities experienced net realized and unrealized gains of $0.2 million for the year ended December 31, 2025, compared to net realized and unrealized gains or losses of zero for 2024. The net realized and unrealized gains in 2025 was due to fluctuating yet declining U.S. Treasury rates during the year.
Loans Receivable, including those with related parties:
Loans receivable, including loans receivable with related parties, experienced net realized and unrealized losses of $36.5 million in 2025 compared to net realized and unrealized losses of $170.0 million in 2024. The current year unrealized gains are primarily attributable to favorable valuations of three loans. The appraised values of the collateral asset properties exceeded the principal value of the loans, which resulted in the favorable valuation of the loans receivable, compounded by realized losses associated with three loans paid off by the borrower and one foreclosure. Prior year losses are attributable to unfavorable valuations of three loans, compounded by default and subsequent foreclosures of the collateral property on three receivables and loan payoffs on three properties.
Loans Payable:
Loans payable experienced net realized and unrealized gains of $75.0 million during 2025, compared to unrealized losses of $11.3 million during 2024. The 2025 realized gains were attributable to the interest and debt forgiven associated with a disposed office property in Massachusetts. The unrealized gains were primarily driven by declining market interest rate and tightening credit spreads. The 2024 unrealized losses resulted from incremental changes in U.S. Treasury yields driven by inflation risk and widening credit spreads.
Other Unsecured Debt:
Other unsecured debt experienced unrealized gains of $8.3 million in 2025, compared to unrealized gains of $4.5 million in 2024, attributable to favorable changes in the risk-free yield curve and changes in market confidence due to Federal Rate interest rate cuts.
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023
A discussion of the results of operations for the year ended December 31, 2024 is found in Item 7 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 6, 2025, which is available free of charge on the SEC's website at www.sec.gov.
Liquidity and Capital Resources
As of December 31, 2025 and 2024, the Account's cash and cash equivalents and non-real estate-related marketable securities had a value of $1.8 billion and $1.4 billion, respectively (7.9% and 6.0% of the Account's net assets at such dates, respectively). The increase in liquid assets during the year was primarily driven by property dispositions, line of credit management, and mixed but favorable market trends in the U.S. commercial real estate market, that providentially impacted property valuations. The Account's liquid assets continue to be available to purchase suitable real estate properties, meet the Account's debt obligations, expense needs, and contract owner redemption requests (i.e., contract owner transfers, withdrawals or benefit payments). In addition, we believe that the Account is able to meet its short-term and long-term liquidity needs through cash provided by operating activities, the available capacity on its credit facility and the liquidity guarantee provided by TIAA as described below.
Liquidity Guarantee
The liquidity guarantee ensures that the account will be able to meet its cash requirements with respect to redeeming accumulation unit contract owners, both in the short- and long-term. In accordance with the liquidity guarantee obligation, TIAA guarantees that all contract owners in the Account may redeem their accumulation units at their accumulation unit value next determined after their transfer or cash withdrawal request is received in good order. The Account pays TIAA a fee for the risks associated with providing the liquidity guarantee through a daily deduction from the Account's net assets.
Pursuant to its existing liquidity guarantee obligation, beginning August 31, 2023 through the year ended December 31, 2025, the TIAA General Account purchased a cumulative total of 1.8 million liquidity units issued by the Account, amounting to $911.3 million. The Account did not experience significant net contract owner outflows during the year of 2025, and the TIAA General Account was not required to purchase any liquidity units this year. The independent fiduciary, which has the right to adjust the percentage of total accumulation units that TIAA's ownership should not exceed (the "trigger point"), has established the trigger point at 45% of the outstanding accumulation units. As of December 31, 2025, the TIAA General Account owned approximately 3.98% of the outstanding accumulation units of the Account. The independent fiduciary will continue to monitor TIAA's ownership interest in the Account and provide further recommendations as necessary.
TIAA's obligation to provide Account contract owners liquidity through purchases of liquidity units is not subject to an express regulatory or contractual limitation, except as described in the following paragraphs.
The independent fiduciary may (but is not obligated to) require the reduction of TIAA's interest through sales of assets from the Account if TIAA's interest exceeds the trigger point. Even if the independent fiduciary so requires, TIAA's obligation to provide liquidity under the guarantee, which is required by the New York State Department of Financial Services, will continue. Management believes that TIAA has the ability to meet its obligations under this liquidity guarantee.
Whenever TIAA owns liquidity units, the duties of the Account's independent fiduciary, as part of its monitoring of the Account, include reviewing the purchase and redemption of liquidity units by TIAA to ensure the Account uses the correct accumulation unit values. In addition, the independent fiduciary's responsibilities include:
•establishing the percentage of total accumulation units that TIAA's ownership should not exceed (the "trigger point") and creating a method for reviewing the trigger point;
•approving any adjustment of TIAA's ownership interest in the Account and, in its discretion, requiring an adjustment if TIAA's ownership of liquidity units reaches the trigger point; and
•once the trigger point has been reached, participating in any program to reduce TIAA's ownership in the Account by utilizing cash flow or liquid investments in the Account, or by utilizing the proceeds from asset sales. If the independent fiduciary were to determine that TIAA's ownership should be reduced following the
trigger point, its role in participating in any asset sales program would include (i) participating in the selection of properties for sale, (ii) providing sales guidelines and (iii) approving those sales if, in the independent fiduciary's opinion, such sales are desirable to reduce TIAA's ownership of liquidity units.
In establishing the appropriate trigger point, including whether or not to require certain actions once the trigger point has been reached, the independent fiduciary will assess, among other things and to the extent consistent with PTE 96-76 with respect to the liquidity guarantee and the independent fiduciary's duties under ERISA, the risk that a conflict of interest could arise due to the level of TIAA's ownership interest in the Account.
Redemption of Liquidity Units.The independent fiduciary is vested with oversight and approval over any redemption of TIAA's liquidity units, acting in the best interests of Account contract owners.
As a general matter, the independent fiduciary may authorize or direct the redemption of all or a portion of liquidity units at any time and TIAA will request the approval of the independent fiduciary before any liquidity units are redeemed. Upon termination and liquidation of the Account (wind-up), any liquidity units held by TIAA will be the last units redeemed, unless the independent fiduciary directs otherwise.
Net Investment Income
Net investment income continues to be an additional source of liquidity for the Account. Net investment income was $752.4 million for the year ended December 31, 2025 as compared to $799.9 million in the prior year. The total net investment income saw a slight increase as described more fully in the Results of Operationssection.
Leverage
As of December 31, 2025, the Account's ratio of outstanding principal amount of debt (inclusive of the Account's proportionate share of debt held within its joint venture investments, senior notes payable and any loans outstanding on the Account's Credit Agreement) to total gross asset value (i.e., a "loan-to-value ratio") was 18.4%. The Account intends to maintain its loan-to-value ratio at or below 30% (this ratio is measured at the time of incurrence and after giving effect thereto). The Account's total gross asset value, for these purposes, is equal to the total fair value of the Account's assets (including the fair value of the Account's net equity interest in joint ventures), with no reduction associated with any indebtedness on such assets.
The Account's credit facility, which is a $1.4 billion unsecured line of credit, is used to facilitate near-term investment objectives, as further described in Note 12-Credit Facility. As of December 31, 2025, the Account had $160.0 million outstanding on the line of credit. The Account exercised the second of three extension options to extend the facility's termination date to September 20, 2026. The Account plans to exercise its remaining option before the facility's scheduled maturity in 2026, which extension is subject to customary representations, warranties and closing conditions.
As of December 31, 2025, total principal outstanding for mortgages on properties held directly by the Account, four collateralized by a loan receivable, the Credit Agreement and senior notes payable are $2.6 billion and $480.5 million, respectively. Principal and interest payments due in the next year for mortgages on properties held directly by the Account are $66.0 million and $23.8 million, respectively. The Account currently has sufficient liquidity in the form of cash and cash equivalents, short-term securities, and available capacity on the Account's line of credit that can be drawn to meet its current mortgage obligations.
In times of high net inflow activity, in particular during times of high net contract owner 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.
Material Cash Requirements(1)
The following table sets forth a summary regarding the Account's known contractual and other material cash obligations, including required interest payments for those items that are interest bearing, as of December 31, 2025 (millions):
Amounts Due During Years Ending December 31,
2026 2027 2028 2029 2030 Thereafter Total
Debt Payable:
Principal Payments $ 402.3 $ 569.9 $ 436.1 $ 344.2 $ 375.0 $ 525.0 $ 2,652.5
Interest Payments(2)
118.9 105.3 78.6 53.2 45.8 78.7 480.5
Subtotal $ 521.2 $ 675.2 $ 514.7 $ 397.4 $ 420.8 $ 603.7 $ 3,133
Ground Leases(3)
2.7 2.7 2.8 2.8 2.9 451.8 465.7
Other Commitments(4)
206.9 - - - - - 206.9
Tenant Improvements(5)
56.8 - - - - - 56.8
Total Contractual and Material Cash Requirements $ 787.6 $ 677.9 $ 517.5 $ 400.2 $ 423.7 $ 1,055.5 $ 3,862.4
(1)The material cash requirements do not include payments on debt held in joint ventures, which are the obligation of the individual joint venture entities.
(2)These amounts represent interest payments due on debt payable based on the stated rates at December 31, 2025.
(3)These amounts represent future minimum annual payments related to ground leases at December 31, 2025.
(4)This includes the Account's commitment to purchase interests in its real estate funds and remaining funding commitments on loans receivable and real estate operating business, which could be called by the partner or borrower at any time.
(5)This amount represents tenant improvements and leasing inducements committed by the Account as of December 31, 2025.
Statements of Cash Flows
The following table sets forth the Account's sources and uses of cash flows for the year ended December 31, 2025 and 2024 (in millions):
As of December 31,
2025 2024
Cash flows provided by (used for):
Operating activities $ 97.8 $ 937.8
Financing activities $ (207.9) $ (843.6)
The following provides information regarding the Account's cash flows from operating and financing activities for the year ended December 31, 2025.
Operating Activities: The Account's operating cash flows are primarily impacted by net investment income and the purchase or sale of investments and debt. Cash provided by operating activities for the year ended December 31, 2025, as compared to the prior year period, decreased by approximately $840.0 million. This decline was primarily driven by:
•$1.1 billion of higher purchases of real estate properties;
•$788.7 million of lower proceeds from sales of real estate properties;
•$36.9 million of lower proceeds from sale of loans receivables; and
•$28.8 million in higher purchases of other real estate properties.
Offsetting the decrease in cash provided by operating activities above was the following;
•$1.1 billion in net decrease in purchases of other investments, higher proceeds from the sales of other real estate investments, and an increase in the proceeds from payoffs of loans receivable from related parties.
Financing Activities: The Account's financing cash flows are primarily impacted by contract owner transactions and debt activity. For the year ended December 31, 2025, cash used in financing activities decreased by $635.7 million compared to 2024, primarily driven by:
•A decrease in net debt repayments of $1.1 billion which included the Account borrowing $700.0 million by entering into a note purchase agreement in the form of series D and E senior notes and $576.0 million on the line of credit in the current year; and
•Partially offset by prior period purchase of liquidity units by the TIAA General Account of $293.7 million compared to no liquidity units purchased by the TIAA General Account in the current year.
Long-Term Financing and Capital Needs
The Account expects to meet its long-term liquidity requirements, such as debt maturities, property acquisitions and financing of development activities, through the use of unsecured debt and credit facilities, proceeds received from the disposition of certain properties and joint ventures, along with cash generated from operations after all distributions. The Account has a significant number of unencumbered properties available to secure additional mortgage borrowings should unsecured capital be unavailable or the cost of alternative sources of capital be too high. The value of and cash flow from these unencumbered properties are in excess of the requirements the Account must maintain in order to comply with covenants under its unsecured notes and credit facility.
A summary of the Account's outstanding debt is as follows (in millions):
December 31, 2025 December 31, 2024
Principal Balance % of Total Principal Balance % of Total
Secured $ 892.4 33.6 % $ 1,634.3 64.5 %
Unsecured 1,760.0 66.4 % 900.0 35.5 %
Total $ 2,652.4 100.0 % $ 2,534.3 100.0 %
Fixed Rate Debt:
Secured $ 531.80 20.1 % $ 1,182.9 46.7 %
Unsecured 1,600.0 60.3 % 900.0 35.5 %
Fixed Rate Debt $ 2,131.8 80.4 % $ 2,082.9 82.2 %
Floating Rate Debt:
Secured $ 360.6 13.6 % $ 451.4 17.8 %
Unsecured 160.0 6.0 % - - %
Floating Rate Debt $ 520.6 19.6 % $ 451.4 17.8 %
Total $ 2,652.4 100.0 % $ 2,534.3 100.0 %
Recent Transactions
The following describes property and property-related transactions by the Account during the fourth quarter of 2025. 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.
Real Estate Properties and Joint Ventures
Purchases
Property Name Purchase Date Ownership Percentage Sector Location
Net Purchase Price (1)
Knightdale Gateway 10/22/2025 100.00% Industrial Raleigh, NC $ 102.8
62nd Street North(2)
11/21/2025 100.00% Industrial Largo, FL 40.8
Mercy Star Court(2)
11/21/2025 100.00% Industrial Orlando, FL 27.5
Paseo De La Fuente(2)
11/21/2025 100.00% Industrial San Diego, CA 30.5
4417 192nd Street East(2)
11/21/2025 100.00% Industrial Tacoma, WA 41.1
4620 B Street Northwest(2)
11/21/2025 100.00% Industrial Auburn, WA 13.4
6615 West Boston Street(2)
11/21/2025 100.00% Industrial Chandler, AZ 14.7
(1) Represents purchase price net of closing costs.
(2)Property is held in Cabot Industrial Portfolio
Disposals
Property Name Disposal Date Ownership Percentage Sector Location
Net Sales Price (1)
Realized Gain (Loss) on Disposition(1)
Stella 10/09/2025 100.00% Multi-family Marina Del Ray, CA $ 132.6 $ (42.8)
Chisholm Trail 10/14/2025 100.00% Industrial Houston, TX 8.7 1.8
Birkdale Village 10/21/2025 93.00% Retail Huntersville, NC 252.8 22.4
Monee Development 12/17/2025 100.00% Industrial Monee, IL 69.7 0.1
(1) Majority of the realized loss has been previously recognized as unrealized losses in the Account's Consolidated Statements of Operations.
Financings
New Debt
Property Name Transaction Date Interest Rate Sector Maturity Date Principal Amount
Highlands at Dearborn(1)
11/13/2025 1.30% + SOFR Multi-family 12/01/2030 $ 93.6
Reserve at Beachline(1)
11/13/2025 1.30% + SOFR Multi-family 12/01/2030 38.4
Citrine(1)
11/20/2025 4.88% Multi-family 12/01/2030 47.6
Chauncey Village at the Park(1)
11/20/2025 4.88% Multi-family 12/01/2030 27.0
Mira Bella(1)
11/20/2025 4.88% Multi-family 12/01/2030 59.0
Montelena(1)
11/20/2025 4.88% Multi-family 12/01/2030 25.0
Promenade Park(1)
11/20/2025 4.88% Multi-family 12/01/2030 33.8
The Sanctuary at Tallyns Reach(1)
11/20/2025 4.88% Multi-family 12/01/2030 76.6
Silos South End(1)
11/20/2025 4.88% Multi-family 12/01/2030 56.8
The Ranch(1)
11/20/2025 4.88% Multi-family 12/01/2030 27.0
(1) Property is held in Simpson Housing Portfolio.
Debt payoff
Property Name Transaction Date Interest Rate Sector Maturity Date Principal Amount
SV MOB Pittsburg 10/01/2025 2.70% Office 09/29/2025 $ 66.1
The Brockman Lofts(1)
11/20/2025 4.11% Multi-family 11/01/2025 17.7
District at Greenbriar(1)
11/20/2025 4.11% Multi-family 11/01/2025 25.1
(1) Property is held in Simpson Housing Portfolio.
Critical Accounting Estimates
Management's discussion and analysis of the Account's financial condition and results of operations is based on the Account's Consolidated Financial Statements, which have been prepared in accordance with U.S. GAAP. The preparation of the Account's financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses. Management considers the valuation of real estate properties and valuation of real estate joint ventures to be critical accounting estimates because they involve a significant level of estimation uncertainty and have a material impact on the Account's financial condition and results of operations.
Valuation of Real Estate Properties
Investments in real estate properties are stated at fair value, the determination of which 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. 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, but are not limited to, 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, direct capitalization analysis, analysis of recent comparable sales transactions, actual sale negotiations and bona fide purchase offers received from third parties.
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 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 held by joint ventures is determined in the same manner and involves the same judgment, uncertainties and assumptions described above in Valuation of Real Estate
Properties.
Valuation of Real Estate Operating Business
The investment in the real estate operating business is stated at the fair value of the Account's ownership in the business. The determination of fair value involves significant levels of judgment because the actual fair value of a real estate operating business can be determined only by negotiation between the parties in a sales transaction. The fair value of the real estate operating business is affected by, among other things, the financial position and operating performance of the business, future financial expectations, its competitive standing, as well as interest and inflation rates. As a result, determining the real estate operating business fair value involves many assumptions. Key inputs and assumptions include, but are not limited to, earnings before interest, taxes, depreciation, and amortization ("EBITDA") multiples, real property rental income and expense amounts, terminal growth rates, capital expenditures and discount rates. Valuation techniques include discounted cash flow analysis, analysis of recent comparable transactions, and negotiated transaction value.
For further discussion of the Account's valuation methodologies used to determine the fair value of the Account's investments as well as a summary of the Account's significant accounting policies, please see Note 1-Organization and Significant Accounting Policiesto the Account's Consolidated Financial Statements included herewith.
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