Ed Kelley To Retire As President & CEO Of USAA Real Estate Company, Pat Duncan Named As Successor

September 20th, 2005 - San Antonio TX

Ed Kelley, president and CEO of USAA Real Estate Company (RealCo), has announced he will retire on December 31, 2005

Under Kelley's 16 years of leadership, RealCo's assets nearly quadrupled to $3.5 billion, and its real estate portfolio grew to more than 35 million square feet. With pre-tax income of more than $75 million in 2004, RealCo's annual dividends on invested capital have averaged 14 percent for the last nine years and almost 18 percent for the past four years.

T. Patrick Duncan, RealCo's senior vice president of Real Estate Operations, will succeed Kelley as president and CEO, effective January 1, 2006.

Kelley said, "Pat Duncan is the consummate real estate professional. He has been at my side during my entire career at USAA and has been a huge part of our success at RealCo. I am confident he will take RealCo to new heights as the company goes forward."

Kelley joined RealCo as president in 1989. Under his stewardship, RealCo developed the La Cantera project, including Six Flags Fiesta Texas theme park, two world-class golf courses, the Westin La Cantera luxury resort, and the recently opened Shops at La Cantera. Kelley spearheaded the site selection and development of USAA's award-winning 600-acre Phoenix campus and was instrumental in building RealCo's reputation as a leader in the national build-to-suit industry. A well-known community leader, Kelley is immediate past chairman of the San Antonio Economic Development Foundation and president of a five-state region for the Boy Scouts of America.

Duncan joined RealCo in 1986, and has 25 years experience in the industry. He currently manages all acquisitions, sales, co-investments, build-to-suits, land developments, capital markets, and real estate management and leasing for RealCo. Duncan has served on the board for the North San Antonio Chamber of Commerce, including a role as past chairman.

USAA Real Estate Company (RealCo) has more than $3.5 billion in assets under management and provides acquisition, build-to-suit, and development services for corporate and institutional investors. The RealCo portfolio consists of office, industrial, retail and hotel properties.