The Real Deal Miami

GE expects $7B more in commercial real estate losses

December 09, 2009 05:43PM

GE Capital, a unit of General Electric, is expecting $7 billion worth
of commercial real estate losses, executives told investors today. The
company’s commercial real estate portfolio has already declined in
equity by roughly 34 percent since its 2007 high, they said. The
company expects commercial property values to fall 13 percent next
year, driving future losses. In the Bloomberg News video below, experts discussed GE’s
prospects in the commercial real estate sector.

“GE has not been required to mark its portfolio and reserve its
portfolio like Citi and like Bank of America have as federally
chartered banks and as a result it has a lot more marking to do,” said
Nick Heymann, senior vice president at Sterne Agee. [MarketWatch]