Report of the Treasurer

LAST UPDATED: December 19, 2024

cover of the 2023-2024 Report of the Treasurer

Princeton University’s net assets of $36.3 billion at June 30, 2024 ended the year roughly where it started, as the return on the investment portfolio of 3.9 percent roughly offset the amounts paid out for operating and capital needs. The endowment payout of $1.7 billion, which is set at the beginning of the year, increased 4 percent in fiscal year 2024 under the University’s spending policy, yielding a spending rate of 5.04 percent. Endowment net assets of $33.4 billion at June 30, 2024 also ended the year where it started. Over the past 10 years, the University’s total net assets grew 5.4 percent annually and endowment net assets grew 5 percent annually, both in line with long-term growth levels. An operating surplus in fiscal year 2024 of $142 million, or 5.4 percent of total operating revenues, was lower than the double-digit levels seen in recent years, as operating expense growth of 9.1 percent exceeded revenue growth of 4.8 percent. As envisioned in the University’s 2016 strategic framework, operating expenses were impacted by the ongoing expansion of the physical campus and related academic programs and research activities, including the expansion of undergraduate enrollment by 500, spread over four years and ending in fiscal year 2026. The University stepped up the endowment spending rate in fiscal years 2017 and 2018 in anticipation of funding these strategic initiatives. The operating margin in fiscal year 2024 is now more in line with historical norms, as strategic expenditures, which were further delayed during the pandemic, have caught up with the higher operating revenues. With $1.0 billion in capital expenditures in fiscal year 2024, the University continued its ambitious capital construction plans, with various academic, research, residential and sustainability projects, all in furtherance of the strategic framework. 

Reports of the Treasurer