MetLife Investment Management Completed $10.7 Billion in Commercial Real Estate Debt and Equity Investments in 2020

Rhea-AI Summary

MetLife Investment Management (MIM) reported $10.7 billion in new commercial real estate transactions in 2020, bringing total commercial real estate assets under management (AUM) to $106.7 billion by year-end. The gross market value of commercial mortgage loans reached $74.0 billion, while real estate equity AUM is at $32.7 billion. Despite the pandemic, MIM originated 137 commercial mortgage loans worth $8.5 billion and acquired $2.2 billion in properties. Strategic focus included last-mile distribution centers and suburban apartments, positioning MIM for future growth.

Positive

• Completed $10.7 billion in new commercial real estate transactions.
• Total commercial real estate AUM reached $106.7 billion.
• Originated 137 commercial mortgage loans worth $8.5 billion.
• Acquired $2.2 billion in properties.
• Increased focus on resilient property types like distribution centers.

Negative

• None.

MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), today announced that it completed $10.7 billion in new commercial real estate debt and equity transactions in 2020, taking MIM’s global gross market value of commercial real estate assets under management (AUM) to $106.7 billion¹ as of December 31, 2020. As of December 31, 2020, gross market value of total commercial mortgage loan AUM climbed to $74.0 billion² and the gross market value of total real estate equity AUM reached $32.7 billion³.

“Our markets faced unprecedented challenges in 2020. I am proud of how our real estate team came together and addressed the crisis, leveraging our decades of experience across multiple market cycles,” said Robert Merck, global head of Real Estate and Agriculture for MetLife Investment Management. “The strength and stability of our platform along with our culture of risk management allowed us to continue supporting communities with real estate financing and investment initiatives that provide space for people to work, shop and live.”

MIM’s commercial real estate platform comprises debt and equity origination and asset management capabilities across 13 offices in the U.S. and international markets, including the U.K., Japan, Korea, Chile and Mexico.

Despite the pandemic, MIM remained a source of debt capital for the commercial real estate market. MIM originated 137 commercial mortgage loans totaling $8.5 billion during the year, providing support for our borrowers even as market liquidity diminished during the early months of the pandemic. This origination and institutional investor activity helped increase the gross market value of total commercial mortgage loan AUM to $74.0 billion as of December 31, 2020.

On the equity side, MIM acquired $2.2 billion of properties in 2020, and the gross market value of total real estate equity AUM reached $32.7 billion. In the past several years, MIM has increased exposure to property types such as last-mile distribution centers and suburban apartments, while at the same time underweighting asset classes such as lower quality regional malls. MIM believes its strategic and diversified approach has allowed its real estate equity portfolio to weather the recent stress, and leaves the platform well positioned to seek new opportunities in 2021.

MIM also continued to expand its international portfolio in 2020, increasing commercial real estate AUM in several key global markets. In Asia, MIM produced the equivalent of over $843 million in new transactions. MIM also continued to grow its presence in the U.K., with the equivalent of $527 million of commercial real estate debt originations in 2020.

Commercial Mortgage Loan Production

MIM originated a number of significant commercial mortgage loan transactions in 2020, including the following:

• Blackstone I-94 Industrial Portfolio (Chicago, Ill. and Milwaukee, Wis.) - $218 million industrial portfolio first mortgage
• 17th & Broadway Apartments (Oakland, Calif.) - $115 million apartment property first mortgage
• Aegon European Headquarters (Edinburgh, U.K.) - £87 million ($107 million) office property senior loan
• Marshfield Business Park (Baltimore, Md.) - $108 million industrial portfolio first mortgage
• Durham ID (Durham, N.C.) - $107 million office / life science property first mortgage

Real Estate Equity Investment Production

MIM’s real estate equity portfolio includes investments in office, apartment, retail, industrial and hotel properties. Transactions closed during 2020 included:

• Park District (Dallas, Texas) – Acquisition of a recently completed apartment building
• Shakopee Industrial (Minneapolis, Minn.) – Class A industrial building with total square feet (sf) of 855,000
• Memphis & Nashville Core Industrial Portfolio (Tenn.) – Four building, class A industrial portfolio consisting of 2,919,349 sf
• Sierra Fontana (Fontana, Calif.) – Development of an industrial building totaling 705,280 sf
• Hanover 8th Street (Washington, District of Columbia) – Development of class A apartment building with 377 units

About MetLife Investment Management

MetLife Investment Management, the institutional asset management business of MetLife, Inc. (NYSE: MET), is a global public fixed income, private capital and real estate investment manager providing tailored investment solutions to institutional investors worldwide. MetLife Investment Management provides public and private pension plans, insurance companies, endowments, funds and other institutional clients with a range of bespoke investment and financing solutions that seek to meet a range of long-term investment objectives and risk-adjusted returns over time. MetLife Investment Management has over 150 years of investment experience and, as of December 31, 2020, had $659.6 billion in total assets under management.⁴

About MetLife

MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (MetLife), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help its individual and institutional customers navigate their changing world. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.

Forward-Looking Statements

The forward-looking statements in this news release, such as “believes,” “continue,” “remains,” “seek,” and “well positioned,” are based on assumptions and expectations that involve risks and uncertainties, including the “Risk Factors” MetLife, Inc. describes in its U.S. Securities and Exchange Commission filings. MetLife’s future results could differ, and it has no obligation to correct or update any of these statements.

Endnotes
¹ Gross market value of commercial real estate AUM represents the value of all commercial mortgage loans and real estate equity managed by MIM, at estimated fair value, presented on the basis of gross market value (inclusive of encumbering debt).

² Gross market value of total commercial mortgage loan AUM represents the value of all commercial mortgage loans managed by MIM, at estimated fair value, including commercial mortgage loans included within certain real estate joint ventures owned by MetLife’s general account, presented on the basis of gross market value (inclusive of encumbering debt).

³ Gross market value of total real estate equity AUM represents the value of all real estate equity managed by MIM, at estimated fair value, excluding commercial mortgage loans included within certain real estate joint ventures owned by MetLife’s general account, presented on the basis of gross market value (inclusive of encumbering debt).

⁴ Total AUM is comprised of all MetLife general account and separate account assets and unaffiliated/third party assets, at estimated fair value, managed by MIM.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210323006045/en/

FAQ

What was MetLife's total commercial real estate AUM in 2020?

As of December 31, 2020, MetLife's total commercial real estate AUM was $106.7 billion.

How much did MetLife originate in commercial mortgage loans in 2020?

MetLife originated 137 commercial mortgage loans totaling $8.5 billion in 2020.

What was the gross market value of MetLife's commercial mortgage loan AUM?

The gross market value of MetLife's commercial mortgage loan AUM reached $74.0 billion as of December 31, 2020.

What types of properties did MetLife focus on in 2020?

MetLife focused on last-mile distribution centers and suburban apartments while reducing exposure to lower quality regional malls.

How much did MetLife acquire in properties during 2020?

MetLife acquired $2.2 billion of properties in 2020.