Market Overview

PGIM Real Estate Finance provides $8.1 billion in financing in first half of 2018


PGIM Real Estate Finance originated $8.1 billion in commercial mortgage
financing in the first half of 2018, propelled by strong production in
industrial and multifamily lending. PGIM
Real Estate Finance
 is the commercial mortgage finance business of PGIM,
the $1 trillion global investment management businesses of Prudential
Financial, Inc. (NYSE: PRU).

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David Durning, CEO, PGIM Real Estate Finance

David Durning, CEO, PGIM Real Estate Finance

2018 first-half financing highlights include $7.49 billion in U.S.
multifamily, industrial, office, retail and other sectors, and $622
million in international markets such as Australia, Japan, the U.K. and
other European nations, with a large concentration in Australia and the
U.K. PGIM is one of the largest real estate investment managers in the
world, with more than $163 billion in combined gross assets under
management and administration across its PGIM Real Estate and PGIM Real
Estate Finance businesses, as of March 31, 2018.

"We experienced a very strong first half of the year and continue to
leverage relationships with our strong borrower network to drive
business," said David
, chief executive officer of PGIM Real Estate Finance. "In
the second half of the year, we plan to build on this momentum and
target key sectors such as industrial and multifamily, which we believe
will be the best performers at this point in an elongated real estate

Industrial has been a key focus for PGIM Real Estate Finance, with
lending growth up 33 percent in the first half of 2018 compared to the
same period last year. Another driver of business has been over $425
million in core-plus financing, which targets properties that can
generate value from minor upgrades.

"Industrial has been a key part of our portfolio for many years, but as
consumers continue to adapt their shopping needs, we have been
allocating more capital to the sector," said Marcia Diaz, national head
of originations. "On the core-plus side, we have been seeing strong
interest from borrowers who need debt to complete light transitional or
value-added work at their properties, and we expect this segment to grow
over the coming years."

In addition to these two segments, with nearly $2.5 billion in
conventional and affordable multifamily loans on behalf of Fannie Mae,
Freddie Mac and FHA, PGIM Real Estate Finance saw a 53 percent increase
over the first half of 2017.

"We have been able to grow our multifamily business by providing options
for borrowers in the middle market," said Diaz. "For the rest of 2018,
multifamily borrowing will continue to be strong as there is an overall
housing shortage in the U.S., and millennials and baby boomers still
show a propensity for rentals."

With more than $15 billion available for financing in 2018, PGIM Real
Estate Finance will look to increase its conventional and affordable
agency business, continue its strong core-plus activity and put an
emphasis on multifamily and industrial for the rest of 2018.

Said Durning, "At this point in the cycle, our borrowers are looking to
lock in fixed-rate financing in the face of rising interest rates, and
many are coming to us for refinancing, as the sales market has slowed
down slightly. We are poised to continue our strategic growth moving
forward, as our local origination teams and quality capital sources can
take advantage of these trends."

About PGIM Real Estate Finance

Real Estate Finance
, the commercial mortgage business of PGIM, is an
international full-service, commercial and multifamily mortgage finance
business with $93.6 billion in assets under management and
administration as of March 31, 2018. Leveraging a 140-year history of
real estate finance, the company offers one of the most comprehensive
lines of real estate finance products and originates loans for Fannie
Mae DUS®, Freddie Mac and specialized affordable housing
programs; FHA; Prudential's general account; and other institutional
investors. For more information, please visit

About PGIM and Prudential Financial, Inc.

With 15 consecutive years of positive third-party institutional net
flows, PGIM, the global asset management businesses of Prudential
Financial, Inc. (NYSE:
PRU), ranks among the top 10 largest asset
managers in the world with more than $1 trillion in assets under
management as of June 30, 2018. PGIM's businesses offer a range of
investment solutions for retail and institutional investors around the
world across a broad range of asset classes, including fundamental
equity, quantitative equity, public fixed income, private fixed income,
real estate and commercial mortgages. Its businesses have offices in 16
countries across five continents.

Prudential's additional businesses offer a variety of products and
services, including life insurance, annuities and retirement-related
services. For more information about PGIM, please visit
For more information about Prudential, please visit

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