Real estate property available for sale held by the top 50 companies declined slightly in 2005 to $920.3 million from $931 million, but changes in individual company holdings experienced large fluctuations, according to data from the NAIC via Highline Data.
Reasons for the changes were company specific. For instance, Teachers Insurance & Annuity’s 45% decline reflected the sale of 2 office properties in Manhattan that a representative said would create operational efficiency.
Mass Mutual’s change is due to property sales or transfers to its investment portfolio made because of a favorable market, says Mark Cybulski, a spokesperson.
The large increase for Pan American Life may be due to the possible sale of its headquarters in New Orleans, says spokesman Tom Richard. The company was planning to sell the building and then lease it back, he adds. These plans had been underway before Hurricane Katrina hit in August 2005, he notes.
Prudential’s change in property held for sale in 2005 was due to market conditions in 2004 which favored the sale and not the purchase of properties, say spokespersons Karen Howell and Terri Miller. The line item reflects real estate held on behalf of investors which includes Prudential’s general account, according to Miller.
The sale of 3 non-core properties explained the 43% decline for Guardian Life, says Barry Belfer, vice president of corporate finance with the company.
In the 2005 filing, Metropolitan Life, New York, does not show up in the top 50 because much of its property is in the held for production of income line: $3.4 billion compared with $32,607 for properties held for sale. But, that could change in mid-November if the company decides to sell to prime Manhattan residential real estate complexes: Stuyvesant Town and Peter Cooper Village. A decision is expected by mid-November, says John Calagna, a spokesman. Press reports peg the value at between $3 billion and $5 billion.