©UFS

A Perspective on Current Real Estate Investment Strategies

January 19, 2010

CONFIDENTIAL 2

• CMBS Delinquencies

• Bank Failures

• FDIC and No RTC

• Debt Capital Constraints

• Commercial vs. Residential

• Leasing Demand is Weak or Negative

• NOI is Decreasing

• Overall Economy is Weak (bottomed out?)

State of the Union

CONFIDENTIAL 3

• Equity – Purchase Loan(s)– Purchase Foreclosures or Distressed Assets– Purchase Portfolios of Distressed Assets– Purchase Entities– Mezz - Equity

• Mortgages– Lower LTV’s– Debt Yields– Mezz – Debt– A/B Loans or Allow Mezz behind the first mortgage– No Development or Construction Loans

Current Investment Strategies in the News

CONFIDENTIAL 4

• Historical Equity Investing – Whole vs. JV

• Historical Mortgage Investing – Permanent vs. Construction

• Other Investments – CMBS, RE Funds, Mezz

Insurance Sector – Real Estate Investing Historically

CONFIDENTIAL 5

How NOT To Invest Your Dollars…

Lotus Riverside, Shanghai

CONFIDENTIAL 6

• Mortgages – Property Types: office, retail, apartments, industrial,

full-service hotels– Loan Type: fixed (5 – 30 years) and floating (3 – 5

years)– Preferred Loan Size: $20M to $200M (per property)– Rates: U.S. Treasuries / LIBOR 30, 60 or 90 day– Terms: 20 to 30 years / up to 90 days rate lock at

application– Co-Lending: pari-passu or senior / sub

MetLife Investment Strategy - Mortgages

CONFIDENTIAL 7

MetLife Investment Strategy - Equity

• Equity – Property Types: office, retail, apartments, industrial,

full-service hotels

• Investment Criteria– Primarily Core and Core Plus– Primary domestic and international markets– Direct as well as through institutional joint ventures