MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (MET) - Get Report, announced today that it reached $22.4 billion 1 in total agricultural mortgage loan assets under management (AUM) as of December 31, 2020. The agricultural mortgage group succeeded in achieving 10% year-over-year growth despite a tumultuous global backdrop. This growth pushed total agricultural mortgage loan AUM to a record level for MIM, reinforcing its position as the largest, non-government sponsored source of agricultural mortgage capital for the sector. 2
"During these exceptional and difficult times, I am proud of the way that we have supported our clients and communities as a long-term partner and a stable source of capital," said Robert Merck, global head of Real Estate and Agriculture at MetLife Investment Management. "As the sector faced unprecedented challenges, we were reminded of the critical role that the agriculture sector plays in our day-to-day lives here in the U.S. and in markets all over the world. Our commitment to supporting our clients through these challenging times has never been more important in creating a sustainable and confident future."
In 2020, MIM provided $4.7 billion in capital in the form of global agricultural mortgage loans across more than 700 transactions. The number of transactions completed in 2020 jumped by 35% compared to 2019.
Greg Gallaway, head of MIM's Agricultural Finance group, noted: "Against the odds, MIM had a strong year working with our borrowers. As the pandemic brought additional volatility to the agricultural markets, our strong relationships enabled us to continue supporting our clients with capital and helping them rise to meet the many challenges posed by the pandemic."
Highlights of MIM's agricultural lending transactions for 2020 include:
- $90 million transaction consisting of five tranches - four totaling $80 million of senior secured fixed rate financing with terms ranging from five to 10 years, and a five-year $10 million revolving line of credit
- Secured by over 1 million acres of timberland across Maine and New Brunswick
- Collateral consists of a diverse set of commercial hardwood and softwood timber species with a combination of pulpwood and sawtimber varieties
Bridge H-21 Cold
- $58 million senior secured variable rate financing transaction with a 10-year term
- Funds will be used in the construction of a state-of-the-art cold storage facility with over 300,000 square feet located in Miami-Dade County, Florida
- The facility includes 50-foot clear heights maximizing storage space as well as high tech systems which will offer broad temperature flexibility
About MetLife Investment Management
MetLife Investment Management, the institutional asset management business of MetLife, Inc. (MET) - Get Report, 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. 3
MetLife, Inc. (MET) - Get Report, 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.
The forward-looking statements in this news release, such as "commitment," "continue," "future," "sustainable," and "will," 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.
1 Total agricultural mortgage loan AUM represents the value of all agricultural mortgage loans managed by MIM, at estimated fair value, presented on the basis of net asset value (net of encumbering debt).
2 Based on publicly available data as of December 31, 2020, that includes publicly disclosed financial reports from lenders, in addition to American Bankers Association data
3 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.
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