| Assets and Liabilities Measured at Fair Value on a Recurring Basis |
Assets and Liabilities Measured at Fair Value on a Recurring Basis Valuation Hierarchy: The Account’s fair value measurements are grouped into three levels, as defined by the FASB. The levels are defined as follows: •Level 1 fair value inputs are quoted prices for identical items in active, liquid and visible markets such as stock exchanges. •Level 2 fair value inputs are observable information for similar items in active or inactive markets, and appropriately consider counterparty creditworthiness in the valuations. •Level 3 fair value inputs reflect our best estimate of inputs and assumptions market contract owners would use in pricing an asset or liability at the measurement date. The inputs are unobservable in the market and significant to the valuation estimate. An asset or liability's categorization within the valuation hierarchy described above is based upon the lowest level of input that is significant to the fair value measurement. Real estate fund investments are excluded from the valuation hierarchy, as these investments are fair valued using their net asset value as a practical expedient since market quotations or values from independent pricing services are not readily available. See Note 1—Organization and Significant Accounting Policies of the Account's 2024 Form 10-K for further discussion regarding the use of a practical expedient for the valuation of real estate funds. The following tables show the major categories of assets and liabilities measured at fair value on a recurring basis as of June 30, 2025 and December 31, 2024, using unadjusted quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3) (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Description | | Level 1: Quoted Prices in Active Markets for Identical Assets | | Level 2: Significant Other Observable Inputs | | Level 3: Significant Unobservable Inputs | | | | Total at June 30, 2025 | | Real estate properties | | $ | — | | | $ | — | | | $ | 15,451.0 | | | | | $ | 15,451.0 | | | Real estate joint ventures | | — | | | — | | | 5,220.8 | | | | | 5,220.8 | | | | | | | | | | | | | | Real estate operating business | | — | | | — | | | 1,033.1 | | | | | 1,033.1 | | | Marketable securities: | | | | | | | | | | | | | | | | | | | | | | | U.S. government agency notes | | — | | | 741.4 | | | — | | | | | 741.4 | | Reverse repurchase agreements
| | — | | | 312.3 | | | — | | | | | 312.3 | | | U.S. treasury securities | | — | | | 102.2 | | | — | | | | | 102.2 | | | | | | | | | | | | | | | | | | | | | | | | Loans receivable(1) | | — | | | — | | | 849.1 | | | | | 849.1 | | | | | | | | | | | | | | Loans payable | | — | | | — | | | (933.3) | | | | | (933.3) | | | Line of credit | | — | | | — | | | (219.0) | | | | | (219.0) | | | Other unsecured debt | | — | | | (891.3) | | | — | | | | | (891.3) | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Description | | Level 1: Quoted Prices in Active Markets for Identical Assets | | Level 2: Significant Other Observable Inputs | | Level 3: Significant Unobservable Inputs | | | | Total at December 31, 2024 | | Real estate properties | | $ | — | | | $ | — | | | $ | 15,607.0 | | | | | $ | 15,607.0 | | | Real estate joint ventures | | — | | | — | | | 5,381.4 | | | | | 5,381.4 | | | | | | | | | | | | | | Real estate operating business | | — | | | — | | | 931.8 | | | | | 931.8 | | | Marketable securities: | | | | | | | | | | | | U.S. government agency notes | | — | | | 701.4 | | | — | | | | | 701.4 | | | | | | | | | | | | | | U.S. treasury securities | | — | | | 510.4 | | | — | | | | | 510.4 | | | | | | | | | | | | | | | | | | | | | | | | Loans receivable(1) | | — | | | — | | | 877.8 | | | | | 877.8 | | | | | | | | | | | | | | Loans payable | | — | | | — | | | (1,585.5) | | | | | (1,585.5) | | | | | | | | | | | | | | Other unsecured debt | | — | | | (877.0) | | | — | | | | | (877.0) | |
(1) Includes loans receivable with related parties. The following tables show the reconciliation of the beginning and ending balances for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2025 and 2024 (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate
Properties | | Real Estate
Joint Ventures | | Real Estate Operating Business | | Loans
Receivable(2) | | Total
Level 3
Investments | | Loans
Payable | | Line of Credit | | For the three months ended June 30, 2025 | | | | | | | | | | | | | | | | Beginning balance April 1, 2025 | | $ | 15,546.3 | | | $ | 5,234.5 | | | $ | 1,058.8 | | | $ | 852.6 | | | $ | 22,692.2 | | | $ | (1,355.8) | | | $ | — | | Total realized and unrealized (losses) gains included in changes in net assets | | 18.6 | | | (59.1) | | | (27.8) | | | (7.4) | | | (75.7) | | | 60.7 | | | — | | Purchases(1) | | 392.6 | | | 47.6 | | | 2.1 | | | 4.2 | | | 446.5 | | | — | | | (219.0) | | | Sales | | (506.5) | | | — | | | — | | | — | | | (506.5) | | | — | | | — | | Settlements(3) | | — | | | (2.2) | | | — | | | (0.3) | | | (2.5) | | | 361.8 | | | — | | | Ending balance June 30, 2025 | | $ | 15,451.0 | | | $ | 5,220.8 | | | $ | 1,033.1 | | | $ | 849.1 | | | $ | 22,554.0 | | | $ | (933.3) | | | $ | (219.0) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate
Properties | | Real Estate
Joint Ventures | | Real Estate Operating Business | | Loans
Receivable(2) | | Total
Level 3
Investments | | Loans
Payable | | Line of Credit | | For the six months ended June 30, 2025 | | | | | | | | | | | | | | | | Beginning balance January 1, 2025 | | $ | 15,607.0 | | | $ | 5,381.4 | | | $ | 931.8 | | | $ | 877.8 | | | $ | 22,798.0 | | | $ | (1,585.5) | | | $ | — | | Total realized and unrealized (losses) gains included in changes in net assets | | (57.6) | | | 31.5 | | | (28.0) | | | (6.6) | | | (60.7) | | | 65.0 | | | — | | Purchases(1) | | 578.9 | | | 91.3 | | | 129.3 | | | 6.3 | | | 805.8 | | | — | | | (219.0) | | | Sales | | (677.3) | | | — | | | — | | | — | | | (677.3) | | | — | | | — | | Settlements(3) | | — | | | (283.4) | | | — | | | (28.4) | | | (311.8) | | | 587.2 | | | — | | | Ending balance June 30, 2025 | | $ | 15,451.0 | | | $ | 5,220.8 | | | $ | 1,033.1 | | | $ | 849.1 | | | $ | 22,554.0 | | | $ | (933.3) | | | $ | (219.0) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate
Properties | | Real Estate
Joint Ventures | | Real Estate Operating Business | | Loans
Receivable(2) | | Total
Level 3
Investments | | Loans
Payable | | Line of Credit | | | | For the three months ended June 30, 2024 | | | | | | | | | | | | | | | | | | Beginning balance April 1, 2024 | | $ | 17,362.6 | | | $ | 5,748.8 | | | $ | 743.3 | | | $ | 1,093.6 | | | $ | 24,948.3 | | | $ | (1,870.1) | | | $ | (316.0) | | | | Total realized and unrealized (losses) gains included in changes in net assets(4) | | (403.2) | | | (107.9) | | | (12.8) | | | (19.2) | | | (543.1) | | | (9.1) | | | — | | | | Purchases(1) | | 63.1 | | | 153.9 | | | — | | | 3.4 | | | 220.4 | | | (1.0) | | | (90.0) | | | | | Sales | | (407.6) | | | — | | | — | | | — | | | (407.6) | | | — | | | — | | | | Settlements(3) | | — | | | (0.4) | | | — | | | (0.5) | | | (0.9) | | | 172.9 | | | 253.0 | | | | | Ending balance June 30, 2024 | | $ | 16,614.9 | | | $ | 5,794.4 | | | $ | 730.5 | | | $ | 1,077.3 | | | $ | 24,217.1 | | | $ | (1,707.3) | | | $ | (153.0) | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate
Properties | | Real Estate
Joint Ventures | | Real Estate Operating Business | | Loans
Receivable(2) | | Total
Level 3
Investments | | Loans
Payable | | Line of Credit | | For the six months ended June 30, 2024 | | | | | | | | | | | | | | | | Beginning balance January 1, 2024 | | $ | 18,020.3 | | | $ | 5,881.2 | | | $ | 685.9 | | | $ | 1,183.7 | | | $ | 25,771.1 | | | $ | (1,862.5) | | | $ | (463.0) | | Total realized and unrealized (losses) gains included in changes in net assets(4) | | (984.6) | | | (302.4) | | | 43.2 | | | (113.8) | | | (1,357.6) | | | (17.9) | | | — | | Purchases(1) | | 145.3 | | | 226.0 | | | 1.4 | | | 9.3 | | | 382.0 | | | (2.5) | | | (121.0) | | | Sales | | (566.1) | | | — | | | — | | | — | | | (566.1) | | | — | | | — | | Settlements(3) | | — | | | (10.4) | | | — | | | (1.9) | | | (12.3) | | | 175.6 | | | 431.0 | | | Ending balance June 30, 2024 | | $ | 16,614.9 | | | $ | 5,794.4 | | | $ | 730.5 | | | $ | 1,077.3 | | | $ | 24,217.1 | | | $ | (1,707.3) | | | $ | (153.0) | |
(1)Includes purchases, contributions for joint ventures, capital expenditures, lending for loans receivable, assumption of loans payable and line of credit borrowings. (2)Includes loans receivable with related parties. (3)Includes operating income for real estate joint ventures net of distributions, payments of loans receivable, and payments of loans payable and line of credit. (4)Includes properties acquired through deed-in-lieu of foreclosure agreements.
The following table shows quantitative information about unobservable inputs related to the Level 3 fair value measurements as of June 30, 2025. | | | | | | | | | | | | | | | | Type | Asset Class | Valuation
Technique(s) | Unobservable Inputs(1) | Range (Weighted Average) | | Real Estate Properties and Joint Ventures | Office | Income Approach—Discounted Cash Flow | Discount Rate
Terminal Capitalization Rate | 6.8% - 11.0% (8.5%) 5.5% - 9.5% (6.9%) | | | Income Approach—Direct Capitalization | Overall Capitalization Rate | 5.0% - 12.0% (6.9%) | | Industrial | Income Approach—Discounted Cash Flow | Discount Rate
Terminal Capitalization Rate | 6.7% - 8.3% (7.3%) 5.3% - 6.8% (5.7%) |
| | | | | | | | | | | | | | | | Type | Asset Class | Valuation
Technique(s) | Unobservable Inputs(1) | Range (Weighted Average) | | | Income Approach—Direct Capitalization | Overall Capitalization Rate | 3.5% - 6.3% (5.1%) | | Residential | Income Approach—Discounted Cash Flow | Discount Rate
Terminal Capitalization Rate | 6.5% - 8.3% (7.0%) 5.0% - 7.3% (5.5%) | | | Income Approach—Direct Capitalization | Overall Capitalization Rate | 4.5% - 6.5% (5.0%) | | Retail | Income Approach—Discounted Cash Flow | Discount Rate
Terminal Capitalization Rate | 6.5% - 12.0% (7.4%) 5.5% - 9.5% (6.3%) | | | Income Approach—Direct Capitalization | Overall Capitalization Rate | 5.0% - 9.0% (6.0%) | | Hotel | Income Approach—Discounted Cash Flow | Discount Rate
Terminal Capitalization Rate | 10.0% 8.3% | | | Income Approach—Direct Capitalization | Overall Capitalization Rate | 7.8% | | Land | Sales Comparison Approach | Price per projected unit | $55.00(2) | Real Estate Operating Business(3) | | Income Approach—Discounted Cash Flow | Discount Rate
Terminal Growth Rate | 13.5% 11.9% | | | Market Approach | EBITDA Multiple | 30.4x | | | | Terminal EBITDA Multiple | 20.0x | | Loans Receivable, including those with related parties | Office | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 39.9% - 79.2% (59.2%) 7.7% - 43.4% (14.1%) | | Industrial | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 0.0% - 0.0% (0.0%) 0.0% - 0.0% (0.0%) | | Residential | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 58.5% - 70.5% (66.7%) 7.4% - 8.5% (7.7%) | | Retail & Hospitality | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 66.9% - 66.9% (66.9%) 58.2% - 58.2% (58.2%) | | Loans Payable | Office | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 43.7% - 79.6% (73.7%) 5.9% - 6.1% (6.0%) | | | Net Present Value | Loan to Value Ratio
Weighted Average Cost of Capital Risk Premium Multiple | 43.7% - 79.6% (73.7%) 1.1 - 1.8 (1.7) | | Industrial | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 30.0% - 40.6% (34.9%) 5.6% - 6.0% (5.8%) | | | Net Present Value | Loan to Value Ratio
Weighted Average Cost of Capital Risk Premium Multiple | 30.0% - 40.6% (34.9%) 1.1 - 1.1 (1.1) | | Residential | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 46.2% - 71.8% (59.0%) 5.1% - 6.7% (5.8%) | | | Net Present Value | Loan to Value Ratio
Weighted Average Cost of Capital Risk Premium Multiple | 46.2% - 71.8% (59.0%) 1.2 - 1.4 (1.3) | | Retail | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 47.6% - 73.4% (53.2%) 6.0% - 8.0% (6.5%) | | | Net Present Value | Loan to Value Ratio
Weighted Average Cost of Capital Risk Premium Multiple | 47.6% - 73.4% (53.2%) 1.2- 1.5 (1.2) |
The following table shows quantitative information about unobservable inputs related to the Level 3 fair value measurements as of December 31, 2024. | | | | | | | | | | | | | | | | Type | Asset Class | Valuation
Technique(s) | Unobservable Inputs(1) | Range (Weighted Average) | | Real Estate Properties and Joint Ventures | Office | Income Approach—Discounted Cash Flow | Discount Rate
Terminal Capitalization Rate | 6.5% - 11.0% (8.5%) 5.0% - 9.5% (6.9%) | | | Income Approach—Direct Capitalization | Overall Capitalization Rate | 5.0% - 13.8% (6.9%) | | Industrial | Income Approach—Discounted Cash Flow | Discount Rate
Terminal Capitalization Rate | 6.8% - 8.5% (7.3%) 5.3% - 7.0% (5.7%) | | | Income Approach—Direct Capitalization | Overall Capitalization Rate | 4.3% - 6.5% (5.3%) | | Residential | Income Approach—Discounted Cash Flow | Discount Rate
Terminal Capitalization Rate | 6.8% - 8.0% (7.0%) 5.0% - 6.8% (5.6%) | | | Income Approach—Direct Capitalization | Overall Capitalization Rate | 4.5% - 6.5% (5.1%) | | Retail | Income Approach—Discounted Cash Flow | Discount Rate
Terminal Capitalization Rate | 6.8% - 12.0% (7.7%) 5.5% - 9.5% (6.6%) | | | Income Approach—Direct Capitalization | Overall Capitalization Rate | 5.3% - 9.0% (6.1%) | | Hotel | Income Approach—Discounted Cash Flow | Discount Rate
Terminal Capitalization Rate | 10.0% 8.3% | | | Income Approach—Direct Capitalization | Overall Capitalization Rate | 7.8% | | Land | Sales Comparison Approach | Price per projected unit | $55.00(2) |
| | | | | | | | | | | | | | | | Type | Asset Class | Valuation
Technique(s) | Unobservable Inputs(1) | Range (Weighted Average) | Real Estate Operating Business(3) | | Income Approach—Discounted Cash Flow | Discount Rate | 12.5 | % | | | | Terminal Growth Rate | 10.8 | % | | | Market Approach | EBITDA Multiple | 31.7x | | | | Terminal EBITDA Multiple | 20.0x | Loans Receivable,
including those with
related parties | Office | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 52.7% - 78.2% (65.7%) 8.8% - 32.6% (14.5%) | | Industrial | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 35.8% - 72.6% (54.3%) 5.3% - 8.3% (6.4%) | | Residential | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 69.9% - 72.0% (71.0%) 7.7% - 9.0% (8.1%) | | Retail &
Hospitality | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 66.9% - 66.9% (66.9%) 24.0% - 24.0% (24.0%) | | Loans Payable | Office | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 43.2% - 78.4% (69.9%) 6.0% - 6.5% (6.4%) | | | Net Present Value | Loan to Value Ratio
Weighted Average Cost of Capital
Risk Premium Multiple | 43.2% - 78.4% (69.9%) 1.1 - 1.7 (1.4) | | Industrial | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 30.0% - 40.5% (34.1%) 6.0% - 6.1% (6.0%) | | | Net Present Value | Loan to Value Ratio
Weighted Average Cost of Capital Risk Premium Multiple | 30.0% - 40.5% (34.1%) 1.1 - 1.1 (1.1) | | Residential | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 45.6% - 73.8% (57.7%) 5.7% - 7.1% (6.4%) | | | Net Present Value | Loan to Value Ratio
Weighted Average Cost of Capital
Risk Premium Multiple | 45.6% - 73.8% (57.7%) 1.2 - 1.4 (1.3) | | Retail | Discounted Cash Flow | Loan to Value Ratio
Equivalency Rate | 48.5% - 73.1% (54.0%) 5.7% - 7.2% (5.8%) | | | Net Present Value | Loan to Value Ratio
Weighted Average Cost of Capital
Risk Premium Multiple | 48.5% - 73.1% (54.0%) 1.2 - 1.4 (1.3) |
(1) Equivalency Rate is defined as the prevailing market interest rate used to discount the contractual loan payments. (2) Calculated per Floor Area Ratio and applied to the planned building area that can be constructed on site. (3) The fair value measurement was additionally based upon information developed by the third-party valuation provider (including recent transactions), corroborated by the Independent Fiduciary for reasonableness. The valuation provider maintained full weighting to the preemptive rights offering at 100%, attributable to additional funding from existing investors and new investor participants. Because of this methodology, the Independent Fiduciary recognized there were no unobservable inputs used by the third party valuation provider to determine the estimated fair value. Significant increases (decreases) in any of those inputs in isolation would result in significantly lower (higher) fair value measurements, respectively. Line of Credit: The Account's line of credit and term loans under the Credit Agreement are recorded at par as Management believes par approximates fair value due to the short-term nature of the Credit Agreement. During the six months ended June 30, 2025 and 2024, there were no transfers between Levels 1, 2 or 3. The amount of total net unrealized (losses) gains included in changes in net assets relating to Level 3 investments and loans payable using significant unobservable inputs still held as of the reporting date is as follows (millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Real Estate
Properties | | Real Estate
Joint
Ventures | | Real Estate Operating Business | | Loans Receivable(1) | | Total
Level 3
Investments | |
Loans
Payable | | For the Three Months ended June 30, 2025 | $ | 102.0 | | | $ | (56.7) | | | $ | (27.8) | | | $ | (7.3) | | | $ | 10.2 | | | $ | (1.1) | | | For the Six Months Ended June 30, 2025 | $ | 34.7 | | | $ | 36.3 | | | $ | (28.0) | | | $ | (6.5) | | | $ | 36.5 | | | $ | 3.2 | | | For the Three Months ended June 30, 2024 | $ | (390.2) | | | $ | (102.3) | | | $ | (12.8) | | | $ | (19.3) | | | $ | (524.6) | | | $ | (9.1) | | | For the Six Months Ended June 30, 2024 | $ | (1,003.4) | | | $ | (317.1) | | | $ | 43.2 | | | $ | (22.7) | | | $ | (1,300.0) | | | $ | (17.9) | |
(1) Amount shown is reflective of loans receivable and loans receivable with related parties.
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