MetLife, Inc. (NYSE:MET) announced today that it originated, through
MetLife Real Estate Investors, approximately $11.5 billion in commercial
real estate loans in 2013. MetLife remains a leader in the commercial
mortgage marketplace and the largest lender in the insurance industry,
with a portfolio of more than $42 billion in commercial mortgages.
MetLife Real Estate Investors, reorganized in late 2012 to include an
asset management capability for institutional investors, also had a
strong first full year of operation. The company secured more than $7
billion in commitments from institutional investors.
The company agreed to invest nearly $3 billion in its equity real estate
portfolio, including deals with several new joint venture partners in
2013. MetLife’s authorized investment in such properties was $1.9
billion, with the balance provided by other investors. Commercial
mortgage lending and equity real estate deals provide MetLife with
investment opportunities that match the long-term liabilities the
company writes through its insurance products.
Within its international portfolio, MetLife also successfully grew its
lending activities in 2013, originating $1.2 billion in the United
Kingdom, $500 million in Mexico, $400 million in Japan, and $225 million
in Chile.
“MetLife was prolific across a variety of real estate sectors in 2013,”
said Robert Merck, senior managing director and global head of real
estate investment for MetLife. “We strengthened our position as a leader
in commercial mortgage lending both domestically and internationally. In
addition, we expanded our activity in the asset management space and
anticipate continuing to creating attractive opportunities for
institutional investors.”
Strong Commercial Mortgage Lending
MetLife originated a number of high-quality commercial real estate loan
transactions with sizes of $100 million and above. Some noteworthy
transactions in 2013 included:
-
$500 million participation in a $1 billion first mortgage on 1095
Avenue of the Americas, a Class A office building in midtown Manhattan
that serves as MetLife’s headquarters
-
$450 million loan on The Shops at Columbus Circle, a high-end retail
center located in the Time Warner Center at Columbus Circle in
Manhattan
-
$360 million first mortgage on The Americana at Brand, a
super-regional shopping center in Los Angeles County
-
$320 million senior loan on the Edwardian Hotel Group, collateralized
by a portfolio of hotels in the United Kingdom
-
$235 million first mortgage on BG Group Place, a Class A office tower
in Houston, Texas
-
$150 million loan on The Mall at Green Hills, a top-quality regional
mall located in Nashville, Tenn.
-
$125 million (MXP 1.67 billion) senior loan secured by a
cross-collateralized pool of eight retail properties located in
various cities across Mexico, including Reynosa, Escobedo, Saltillo
and Juarez
-
$114 million (JPY 11.4 billion) senior loan secured by a
cross-collateralized pool of six office and two residential properties
located in Tokyo, Osaka and Hokkaido, Japan
-
$100 million first mortgage on Mosaic Apartments, a 386-unit, Class A
multifamily project in San Jose, Calif.
Asset Management
MetLife’s asset management business secured more than $7 billion in
investor commitments in real estate and mortgage loans from partners
such as Norges Bank and Sun Trust Bank.
“Our asset management business really hit its stride in 2013,” said
Merck. “We believe this is a clear sign our clients are relying on our
extensive experience in real estate investing to create opportunities
for attractive, long-term returns. We look forward to growing these
accounts in 2014 and generating strong returns for our customers,
policyholders and shareholders.”
Equity Real Estate Investments
MetLife’s $13.6 billion equity real estate portfolio includes
investments in office, apartment, retail, industrial and hotel
properties. MetLife’s real estate platform includes origination and
asset management offices across seven regional offices in the United
States, as well as London, Mexico City, Tokyo and Santiago, Chile.
MetLife agreed to acquire real estate and real estate joint ventures
with property values of $2.9 billion during calendar year 2013. The
strategy continues to focus on high quality core assets.
Some noteworthy equity real estate transactions in 2013 included:
-
555 12th Street, a 755,000 square foot office building in
Washington, D.C.
-
The Terraces, a 1.07 million square foot office building in Atlanta
-
PNC Center, a 617,000 square foot office building in Chicago
-
Ritz Carlton San Francisco, a 336-room hotel in San Francisco
-
Mosaic Apartments, a 210-unit apartment complex in Tampa, Fla.
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates
(“MetLife”), is a leading global provider of insurance, annuities and
employee benefit programs. MetLife holds leading market positions in the
United States, Japan, Latin America, Asia, Europe and the Middle East.
For more information, visit www.metlife.com.
This news release may contain or incorporate by reference information
that includes or is based upon forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements give expectations or forecasts of future
events. These statements can be identified by the fact that they do not
relate strictly to historical or current facts. They use words such as
“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe” and other words and terms of similar meaning, or are tied to
future periods, in connection with a discussion of future operating or
financial performance. In particular, these include statements relating
to future actions, prospective services or products, future performance
or results of current and anticipated services or products, sales
efforts, expenses, the outcome of contingencies such as legal
proceedings, trends in operations and financial results.
Any or all forward-looking statements may turn out to be wrong. They can
be affected by inaccurate assumptions or by known or unknown risks and
uncertainties. Many such factors will be important in determining the
actual future results of MetLife, Inc., its subsidiaries and affiliates.
These statements are based on current expectations and the current
economic environment. They involve a number of risks and uncertainties
that are difficult to predict. These statements are not guarantees of
future performance. Actual results could differ materially from those
expressed or implied in the forward-looking statements. Risks,
uncertainties, and other factors that might cause such differences
include the risks, uncertainties and other factors identified in
MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission
(the “SEC”). These factors include: (1) difficult conditions in the
global capital markets; (2) increased volatility and disruption of the
capital and credit markets, which may affect our ability to meet
liquidity needs and access capital, including through our credit
facilities, generate fee income and market-related revenue and finance
statutory reserve requirements and may require us to pledge collateral
or make payments related to declines in value of specified assets,
including assets supporting risks ceded to certain of our captive
reinsurers or hedging arrangements associated with those risks; (3)
exposure to financial and capital market risks, including as a result of
the disruption in Europe; (4) impact of comprehensive financial services
regulation reform on us, as a potential non-bank systemically important
financial institution, or otherwise; (5) numerous rulemaking initiatives
required or permitted by the Dodd-Frank Wall Street Reform and Consumer
Protection Act which may impact how we conduct our business, including
those compelling the liquidation of certain financial institutions; (6)
regulatory, legislative or tax changes relating to our insurance,
international, or other operations that may affect the cost of, or
demand for, our products or services, or increase the cost or
administrative burdens of providing benefits to employees; (7) adverse
results or other consequences from litigation, arbitration or regulatory
investigations; (8) potential liquidity and other risks resulting from
our participation in a securities lending program and other
transactions; (9) investment losses and defaults, and changes to
investment valuations; (10) changes in assumptions related to investment
valuations, deferred policy acquisition costs, deferred sales
inducements, value of business acquired or goodwill; (11) impairments of
goodwill and realized losses or market value impairments to illiquid
assets; (12) defaults on our mortgage loans; (13) the defaults or
deteriorating credit of other financial institutions that could
adversely affect us; (14) economic, political, legal, currency and other
risks relating to our international operations, including with respect
to fluctuations of exchange rates; (15) downgrades in our claims paying
ability, financial strength or credit ratings; (16) a deterioration in
the experience of the “closed block” established in connection with the
reorganization of Metropolitan Life Insurance Company; (17) availability
and effectiveness of reinsurance or indemnification arrangements, as
well as any default or failure of counterparties to perform; (18)
differences between actual claims experience and underwriting and
reserving assumptions; (19) ineffectiveness of risk management policies
and procedures; (20) catastrophe losses; (21) increasing cost and
limited market capacity for statutory life insurance reserve financings;
(22) heightened competition, including with respect to pricing, entry of
new competitors, consolidation of distributors, the development of new
products by new and existing competitors, and for personnel; (23)
exposure to losses related to variable annuity guarantee benefits,
including from significant and sustained downturns or extreme volatility
in equity markets, reduced interest rates, unanticipated policyholder
behavior, mortality or longevity, and the adjustment for nonperformance
risk; (24) our ability to address difficulties, unforeseen liabilities,
asset impairments, or rating agency actions arising from business
acquisitions, including our acquisition of American Life Insurance
Company and Delaware American Life Insurance Company, and integrating
and managing the growth of such acquired businesses, or arising from
dispositions of businesses or legal entity reorganizations; (25) the
dilutive impact on our stockholders resulting from the settlement of our
outstanding common equity units; (26) regulatory and other restrictions
affecting MetLife, Inc.’s ability to pay dividends and repurchase common
stock; (27) MetLife, Inc.’s primary reliance, as a holding company, on
dividends from its subsidiaries to meet debt payment obligations and the
applicable regulatory restrictions on the ability of the subsidiaries to
pay such dividends; (28) the possibility that MetLife, Inc.’s Board of
Directors may influence the outcome of stockholder votes through the
voting provisions of the MetLife Policyholder Trust; (29) changes in
accounting standards, practices and/or policies; (30) increased expenses
relating to pension and postretirement benefit plans, as well as health
care and other employee benefits; (31) inability to protect our
intellectual property rights or claims of infringement of the
intellectual property rights of others; (32) inability to attract and
retain sales representatives; (33) provisions of laws and our
incorporation documents may delay, deter or prevent takeovers and
corporate combinations involving MetLife; (34) the effects of business
disruption or economic contraction due to disasters such as terrorist
attacks, cyberattacks, other hostilities, or natural catastrophes,
including any related impact on the value of our investment portfolio,
our disaster recovery systems, cyber- or other information security
systems and management continuity planning; (35) the effectiveness of
our programs and practices in avoiding giving our associates incentives
to take excessive risks; and (36) other risks and uncertainties
described from time to time in MetLife, Inc.’s filings with the SEC.
MetLife, Inc. does not undertake any obligation to publicly correct or
update any forward-looking statement if MetLife, Inc. later becomes
aware that such statement is not likely to be achieved. Please consult
any further disclosures MetLife, Inc. makes on related subjects in
reports to the SEC.
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