Corporate overview
MetLife Investment Management (MIM) is the institutional asset management business of MetLife, Inc., a publicly traded company (NYSE: MET) that was founded in 1868 and is one of the world’s leading financial services companies with operations in more than 40 markets. As of 30 June 2024, MIM has €548.3bn of total assets under management. MIM’s primary lines of business include fixed income, real estate and private capital. We offer investment strategies globally across these asset classes, which are available through separate accounts and proprietary fund vehicle options. With over 150 years of disciplined risk-management experience, we apply deep expertise in skillfully navigating markets with the goal of delivering strong, risk adjusted returns. In our client-centric culture, teams of investment professionals are dedicated to creating tailored solutions designed to help our clients meet their unique needs and objectives.
Who we are
MetLife Investment Management’s (MIM) Real Estate Group, with €178bn (as of 30 June 2024) in commercial real estate debt and equity assets under management, brings over 140 years1 of experience across market cycles to deliver a collaborative, client-focused approach for institutional investors around the world. Our experienced professionals start by listening to investor needs and leverage our local market presence and long-standing direct relationships to source attractive investment opportunities across geographies, property types, investment structures, and risk profiles.
Commercial mortgage loans
We seek to identify high quality commercial mortgages that offer higher relative value than similarly rated corporate bonds and greater protection from default risk. Our commercial mortgage loan platform targets mostly opportunities in primary markets with the remainder in select secondary and tertiary markets. Investment real estate professionals in our local market offices solicit, underwrite, originate and manage the loans and have in-depth real estate knowledge and longstanding industry relationships within their regions.
Why commercial mortgages?
- Potential for: predictable current income and spread premiums with generally low historical loss rates in various market conditions
- Structural protections (e.g. secured repayment protection, amortisation and control over additional debt)
- Potential portfolio diversifier given its low historical correlation to many major asset classes
- Flexible term and rate structures that may be ideal for liability-driven investing
Approach
- A broad range of investment structures – participations, joint ventures, private label or other structured solutions across the risk/return spectrum – from first mortgages to subordinate debt
- Seeks to utilise MetLife Investment Management’s size and scale to gain access to deal participant and flow across global markets, property types, loan term and seniority in the capital stack
- Disciplined underwriting and monitoring processes
- Proprietary research supports investment decisions by helping to define investment strategy, mitigate risk and provide underwriting and valuation guidance
Key differentiators
- Integrated equity and debt platform with broad insight into local markets
- Network with 200+ real estate professionals across seven US offices, and London
- Comprehensive access to market participants and opportunities through long-standing relationships with large owners, developers and operators
- Discipline in underwriting and structuring loans
- Integrated research, risk, and debt analytics capabilities including internal valuations as well as centralised loan ratings and monitoring processes
- Highly specialised market and sector experts with experience across senior and subordinate loans
Real estate equity
We offer investors strategies that seek to achieve income growth and capital appreciation by investing in competitively positioned properties in markets with favourable demand drivers, including those with a concentration of knowledge workers in the science, technology, engineering and mathematics occupations. In addition to purchasing stabilised assets, we actively invest in development where we feel risks can be effectively controlled and where return opportunities are compelling. In sourcing real estate equity investments, our professionals leverage their extensive industry relationships and investment experience.
Why real estate equity?
- Potential for attractive and stable income returns with growth potential
- Portfolio diversification given its low historical correlation to many asset classes
- A potential hedge against inflation
- A potentially effective tool for liability-driven investing over long investment horizon
Approach
- Target primary and secondary U.S. markets which exhibit attractive demographics and high concentrations of workers in the STEM fields
- Leverage proprietary research in developing top-down strategies and evaluation of investment decisions
- Utilise experienced regional operating platform to source attractive investments consistent with client strategies
- Offer access to a broad range of investment solutions, including customised managed accounts, joint ventures and other structures
Key differentiators
- Investing in real estate debt and equity for 140+ years1
- Integrated equity and debt platform with broad insight into local markets
- Comprehensive access to market participants and opportunities through deep, longstanding relationships with large owners, developers, and operators
- Experienced, in-house integrated acquisitions and asset management teams, including onsite architectural, engineering and construction professionals
- Rigorous risk management, portfolio analytics, valuations and performance measurement capabilities
1 MIM has invested on behalf of the MetLife general account since 1875 and on behalf of third parties since 2012.
Sustainability in real estate
We embrace our role as a responsible real estate lender and investor and understand the impact buildings have on people, communities, and the environment. We also know that issues such as climate change, regulatory and legislative environments, and building operational efficiencies will increasingly impact lending decisions and ongoing financial performance. At MIM, we seek to be an industry leader in sustainability best practices. We are dedicated to reaching decarbonisation targets in our comingled equity vehicles and managed accounts through deployment of proprietary approach, which prioritizes energy efficiency and on-site and off-site renewables to lower net emissions. We have also committed to contributing to the origination of $25bn in new green investments by 2030. We have implemented the use of a commercial mortgage sustainability questionnaire that collects data on sponsor-level sustainability practices and accomplishments. We use an Acquisitions Assessment, as part of the required due diligence for all new real estate equity investments, and developed sustainability guidelines for new developments. We also run reports that estimate the physical risk from climate change for all new equity and debt investments.
COMPLIANCE STATEMENT
This material is intended solely for Institutional Investors, Qualified Investors and Professional Investors. This content is solely for informational purposes and does not constitute a recommendation regarding any investments or the provision of any investment advice, or constitute or form part of any advertisement of, offer for sale or subscription of, solicitation or invitation of any offer or recommendation to purchase or subscribe for any securities or investment advisory services. The views expressed herein are solely those of MetLife Investment Management (“MIM”) and do not necessarily reflect, nor are they necessarily consistent with, the views held by, or the forecasts utilized by, the entities within the MetLife enterprise that provide insurance products, annuities and employee benefit programs. Any or all forward-looking statements, as well as those included in any other material discussed at the presentation, may turn out to be wrong. All investments involve risks including the potential for loss of principle and past performance does not guarantee similar future results. The information and opinions presented are provided as of September 2024.
