MetLife 2006 Annual Report Download - page 114

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Mortgage and consumer loans with scheduled payments of 90 days or more past due on which interest is still accruing, had an
amortized cost of $15 million and $41 million at December 31, 2006 and 2005, respectively. Mortgage and consumer loans on which
interest is no longer accrued had an amortized cost of $36 million and $6 million at December 31, 2006 and 2005, respectively. Mortgage
and consumer loans in foreclosure had an amortized cost of $35 million and $13 million at December 31, 2006 and 2005, respectively.
Real Estate and Real Estate Joint Ventures
Real estate and real estate joint ventures consisted of the following:
2006 2005
December 31,
(In millions)
Realestate ............................................................... $5,004 $4,707
Accumulateddepreciation ..................................................... (1,495) (968)
Netrealestate............................................................. 3,509 3,739
Realestatejointventures...................................................... 1,477 926
Realestateandrealestatejointventures .......................................... $4,986 $4,665
The components of real estate and real estate joint ventures are as follows:
2006 2005
December 31,
(In millions)
Realestateandrealestatejointventuresheld-for-investment ............................... $4,979 $3,910
Realestateheld-for-sale....................................................... 7 755
Realestateandrealestatejointventures........................................... $4,986 $4,665
Related depreciation expense was $158 million, $185 million and $286 million for the years ended December 31, 2006, 2005 and
2004, respectively. These amounts include $26 million, $50 million and $107 million of depreciation expense related to discontinued
operations for the years ended December 31, 2006, 2005 and 2004, respectively.
Real estate and real estate joint ventures held-for-sale recognized impairments of $8 million, $5 million and $13 million for the years ended
December 31, 2006, 2005 and 2004, respectively. The carrying value of non-income producing real estate and real estate joint ventures was
$8 million and $37 million at December 31, 2006 and 2005, respectively. The company owned real estate acquired in satisfaction of debt of
$3 million and $4 million at December 31, 2006 and 2005, respectively.
Real estate and real estate joint ventures were categorized as follows:
Amount Percent Amount Percent
2006 2005
December 31,
(In millions)
Office...................................................... $2,709 55% $2,597 56%
Apartments .................................................. 739 15 889 19
Retail ...................................................... 513 10 612 13
Developmentaljointventures....................................... 169 3 — —
Realestateinvestmentfunds....................................... 401 8 45 1
Industrial.................................................... 291 6 284 6
Land....................................................... 71 1 43 1
Agriculture................................................... 32 1 32 1
Other ...................................................... 61 1 163 3
Total ..................................................... $4,986 100% $4,665 100%
The Company’s real estate holdings are primarily located in the United States. At December 31, 2006, 26%, 15% and 15% of the
Company’s real estate holdings were located in New York, Texas and California, respectively.
Leveraged Leases
Investment in leveraged leases, included in other invested assets, consisted of the following:
2006 2005
December 31,
(In millions)
Rentalreceivables,net........................................................ $1,055 $ 991
Estimatedresidualvalues ...................................................... 887 735
Subtotal................................................................ 1,942 1,726
Unearnedincome ........................................................... (694) (645)
Investmentinleveragedleases ................................................. $1,248 $1,081
F-31MetLife, Inc.
METLIFE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)