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PGIM Real Estate Finance provides $18.1 billion in financing in 2018

PRU | February 11, 2019

PGIM Real Estate Finance provides $18.1 billion in financing in 2018

PGIM Real Estate Finance originated a record $18.1 billion in financing in 2018 led by record production in multifamily and core-plus lending. PGIM Real Estate Finance is the commercial mortgage finance business of PGIM Inc., the $1 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU).

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"In 2019, we expect strong commercial real estate fundamentals to continue, supported by steady economic growth and investor discipline, while continuing to focus on finding loans along the core to core-plus continuum in the U.S., Europe, Australia and Japan." - David Durning, CEO, PGIM Real Estate Finance

The company has as much as $18 billion available for financing in 2019 and will look to target growth in the agency business, industrial loans, international lending, and core-plus opportunities.

PGIM Real Estate Finance’s overall debt lending and agriculture investment production increased 22 percent over its prior-year totals. The increases included significant growth in the company’s agency lending business, international originations and core-plus lending.

2018 financing highlights include:

A record $6.2 billion in conventional and affordable multifamily loans on behalf of Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA)
$16.7 billion in U.S. multifamily, industrial, office, retail and other sectors
$878 million in agricultural debt
$980 million in core-plus financing
$1.4 billion in international markets such as Australia, Canada, Japan, the U.K. and other European nations

“In 2018, we broadened our recent focus on affordable and market rate apartment and industrial property loans to include an increased emphasis on higher yield loans to reflect secular trends around home ownership and ecommerce and increased investor appetite for higher income producing assets,” said David Durning, chief executive officer of PGIM Real Estate Finance. “In 2019, we expect strong commercial real estate fundamentals to continue, supported by steady economic growth and investor discipline, while continuing to focus on finding loans along the core to core-plus continuum in the U.S., Europe, Australia and Japan.”

About PGIM Real Estate Finance

PGIM Real Estate Finance, the commercial mortgage business of PGIM, is an international full-service, commercial and multifamily mortgage finance business with $96.2 billion in assets under management and administration as of Dec. 31, 2018. Leveraging a 140-year history of real estate finance, the company offers one of the most comprehensive lines of real estate finance products and originates loans for Fannie Mae DUS®, Freddie Mac and specialized affordable housing programs; FHA; Prudential’s general account; and other institutional investors. For more information, please visit pgimref.com.

About PGIM and Prudential Financial, Inc.

With 16 consecutive years of positive third-party institutional net flows, PGIM, the global asset management business of Prudential Financial, Inc. (NYSE: PRU), ranks among the top 10 largest asset managers in the world* with more than $1 trillion in assets under management as of Dec. 31, 2018. PGIM’s businesses offer a range of investment solutions for retail and institutional investors around the world across a broad range of asset classes, including fundamental equity, quantitative equity, public fixed income, private fixed income, real estate and commercial mortgages. Its businesses have offices in 15 countries across five continents. For more information about PGIM, visit pgim.com.

Prudential’s additional businesses offer a variety of products and services, including life insurance, annuities and retirement-related services. For more information about Prudential, please visit news.prudential.com.

*Pensions & Investments’ Top Money Managers list, May 28, 2018; based on Prudential Financial total worldwide institutional assets under management as of Dec. 31, 2017. Assets under management (AUM) are based on company estimates and are subject to change.

Learn about PGIM Real Estate Finance: pgimref.com

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