MetLife Investment Management (MIM), MetLife, Inc.s (NYSE: MET) institutional asset management business, announced today that it originated $5.0 billion in global agricultural loans in 2018, a 72.4% increase over the prior year, and a record amount for MIM. This strong production propelled MIMs total agricultural mortgage loan assets under management to $17.9 billion, another record for MIM, further solidifying the firm as the largest non-government sponsored, agricultural mortgage lender in the United States1.
Despite low commodity prices and ongoing trade uncertainty, our agricultural finance group achieved record growth in 2018, said Robert Merck, senior managing director and global head of real estate and agriculture at MetLife Investment Management. During the year, we continued to support our domestic producer clients, and we made significant progress in expanding internationally, most notably into Uruguay and Mexico.
During 2018, MIM also expanded its agricultural lending platform to include a Forest Products platform, focusing on lending to fiber processing facilities and other commercial timberland downstream borrowers. This initiative allows MIM to provide loans across the full spectrum of the forestry supply chain, from production to processing.
Barry Bogseth, managing director and head of MIMs agricultural finance group, added: In 2018, we continued to cement our role as a steady source of capital for the agricultural sector. We look forward to further serving our agriculture clients with customized financing solutions that meet their needs, just as we have for over 100 years.
Highlights of MIMs agricultural lending transactions for 2018 include:
Every Bear Investment, LLC
- $228 million senior secured fixed-rate financing for 10 years
- Borrower is a subsidiary of iStar, Inc. (NYSE: STAR), a REIT focused on investments in commercial real estate
- Secured by seven cold storage warehouses located in seven states, totaling 1.24 million square feet
BTG Pactual Timberland Investments Group
- $125 million revolving line-of-credit facility
- Secured by approximately 165,000 acres of timberland located in eight states
- Collateral is dispersed across all primary timber producing regions in the United States and contains many different commercial hardwood and softwood timber species
FirstFruits HoldCo, LLC
- $85 million variable rate term loan financed for 20 years
- Secured by 12,643 acres of orchards and farmland in Washington state
- Collateral includes orchards and processing facilities in the leading apple growing region in the United States
El Maximo Ranch Holdings, LLC
- $75 million variable rate term loan financed for 15 years
- Secured by 38,458 acres in Florida
- Farming operation on collateral will include row crops and vegetable production, along with cattle ranching
MetLife Investment Management oversees an agricultural portfolio consisting primarily of mortgages for farms, ranches, food production, agribusiness, and timberland. The firm has provided agricultural financing solutions since 1917 and is the largest non-government sponsored, agricultural mortgage lender in the United States. MIMs agricultural finance group has a lending presence in most major agricultural production areas throughout the United States and South America.
About MetLife Investment Management
MetLife Investment Management, MetLife, Inc.s institutional asset management business, is a global fixed income and real estate manager providing differentiated investment solutions to institutional investors worldwide. MetLife Investment Management provides institutional investors including corporate and government pension plans, insurance companies and other financial institutions with long-term public and private investment and financing solutions. MetLife Investment Management leverages a disciplined credit research and underwriting process to provide institutional investors with asset origination and acquisition opportunities and proprietary risk management analytics across public fixed income strategies, private placements, and commercial real estate debt and equity investing, among others. For more information, visit https://investments.metlife.com.
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (MetLife), is one of the worlds 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 countries and 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 refer to forward-looking statements. Forward-looking statements give expectations or forecasts of the future using terms such as anticipate, estimate, expect, project, intend, plan, believe, will, and other terms tied to future periods. Results could differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements are based on assumptions and expectations. They involve risks and uncertainties, including the Risk Factors MetLife, Inc. describes in its U.S. Securities and Exchange Commission filings. The company has no obligation to correct or update any forward-looking statement. Parts of this news release may include additional information on forward-looking statements. This news release may also contain measures that are not calculated based on accounting principles generally accepted in the United States of America, or GAAP.
Explanatory Note on Non-GAAP Financial Information
Reconciliation of Agricultural Mortgage Loans to General Account Agricultural Mortgage Loan Assets Under Management and Total Agricultural Mortgage Loan Assets Under Management
|($ in Billions)|
|Agricultural Mortgage Loans||$ 14.9|
|Plus: Fair Value Adjustment||0.0|
|General Account Agricultural Mortgage Loan Assets Under Management||14.9|
|Plus: Third Party Agricultural Mortgage Loan Assets Under Management||3.0|
|Total Agricultural Mortgage Loan Assets Under Management||$ 17.9|
Total Agricultural Mortgage Loan Assets Under Management (Total Agricultural Mortgage Loan AUM) is a financial measure based on methodologies other than GAAP. Total Agricultural Mortgage Loan AUM are comprised of GA Agricultural Mortgage Loan AUM, plus TP Agricultural Mortgage Loan AUM (each, as defined below). MetLife believes the use of Total Agricultural Mortgage Loan AUM enhances the understanding of the depth and breadth of its investment management services on behalf of its general account investment portfolio and unaffiliated/third party clients.
General Account Agricultural Mortgage Loan Assets Under Management (GA Agricultural Mortgage Loan AUM) is a financial measure based on methodologies other than GAAP. MetLife utilizes GA Agricultural Mortgage Loan AUM to describe agricultural mortgage loans in its general account investment portfolio which are actively managed. MetLife believes the use of GA Agricultural Mortgage Loan AUM enhances the understanding and comparability of its general account investment portfolio. GA Agricultural Mortgage Loan AUM has been adjusted from carrying value to estimated fair value.
Third Party Agricultural Mortgage Loan Assets Under Management (TP Agricultural Mortgage Loan AUM) are non-proprietary agricultural mortgage loans managed by MetLife on behalf of unaffiliated/third party clients, which are stated at estimated fair value. TP Agricultural Mortgage Loan AUM are owned by such unaffiliated/third party clients; accordingly, TP Agricultural Mortgage Loan AUM are not included in MetLife, Inc.s consolidated financial statements.
GA Agricultural Mortgage Loan AUM and Total Agricultural Mortgage Loan AUM are non-GAAP financial measures and should not be viewed as substitutes for Agricultural Mortgage Loans, the most directly comparable GAAP measure. Reconciliations of Agricultural Mortgage Loans to GA Agricultural Mortgage Loan AUM and Total Agricultural Mortgage Loan AUM are set forth in the above table. 1 Source: MIM internal analysis based on publicly available information.
MetLife Investment Management