MetLife Investment Management Achieves 40% Growth in Total Agricultural Mortgage Loan Assets Under Management Over Five-year Period
MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), announced today that it originated $4.0 billion in agricultural mortgage loans across over 400 notes in 2022. MIM's total agricultural mortgage loan assets under management reached $21.6 billion,(1) up 40% over the five-year period ending December 31, 2022. MIM maintained its position as the largest, non-governmental sponsored source of agricultural mortgage capital for the sector.(2)
"In 2022, agricultural producers benefited from high commodity prices that solidified their financial positions," said Robert Merck, global head of Real Estate and Agriculture at MetLife Investment Management. "MIM is proud to have been able to continue our support of these critical agriculture producers' growth and stability last year. We strongly value our lending relationships, many of which have been forged over decades, and look forward to continuing our role as a key capital source for agricultural mortgage lending."
"MIM's team, with deep relationships and an extensive network in local communities, worked to support our borrowers in their acquisition and expansion of prime farm and ranch lands, timberlands and food and agribusiness operations," said Greg Gallaway, head of MIM's Agricultural Strategies group, "Our continued strong origination volume reflects the team's commitment to deliver bespoke financial solutions to our borrowers. We remain committed to providing capital to producers that support the needs of a growing global population."
Highlights of MIM's 2022 agricultural lending transactions(3) include:
Biagi & Associates, LLC
$70 million fixed rate financing with a 15-year term Secured by 650,000 square foot temperature-controlled wine storage warehouse located in American Canyon, Calif., in the heart of Napa Valley Biagi Bros, Inc. (BBI), a related party, offers both inter- and intra-state common carrier services with a fleet of more than 270 trucks making BBI an integral part of the national beverage supply chain in the United States
Farmland Partners Inc. (FPI)
$75 million variable revolving line of credit financing with a five-year term Secured by 12,000 acres of farmland in Illinois FPI is a publicly traded, internally managed REIT that seeks to acquire high-quality farmland throughout North America. The land is leased to farmers, who collectively grow 26 different crop types As of December 31, 2022, FPI owns/manages approximately 196,100 acres of farmland in 19 states
Toor Farming LLC
$126 million ARM financing transaction with a 20-year term and a $10 million revolving line of credit financing with a 10-year term Secured by over 8,375 acres in the San Joaquin Valley Toor Farming grows a combination of permanent crops including almonds, pistachios, walnuts and wine grapes
$35 million fixed-rate financing with a 15-year term loan Secured by over 3,700 acres and two packing facilities in Sonora, Mexico Third-generation family-owned business that started operations in the 1960s Grows and processes zucchini, Brussels sprouts and table grapes Dedicated to meet demands of supermarkets in the highest per capita markets in the U.S., their products are now in Costco, Whole Foods and Trader Joe's
Gateway Arch Timber, LLC
$100 million variable revolving line of credit financing with a 10-year term Secured by over 94,000 acres across nine states in the southern U.S. Part of the loan will be used to finance future timberland acquisitions Operates with the stewardship priorities and sustainability principles of the Sustainable Forestry Initiative
About MetLife Investment Management
MetLife Investment Management, the institutional asset management business of MetLife, Inc. (NYSE: MET), 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, 2022, had $579.8 billion in total assets under management.(4)
MetLife, Inc. (NYSE: MET), 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 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, using words such as "continue," "look forward," "remain" and "seek," 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 does not undertake any obligation to publicly correct or update any of these statements.
As of December 31, 2022. 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). Based on publicly available data as of December 31, 2022, that includes publicly disclosed financial reports from lenders, in addition to American Bankers Association data. These transactions are meant to provide representative examples in this strategy for 2022 and have not been selected to highlight past specific profitable recommendations made by MIM. 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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SOURCE: MetLife Investment Management
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