December 13, 2009
YIKES! General Electric expects to lose 13 percent more of its portfolio in 2010. That is on top of a 34 percent loss since the highs of 2007. Think commercial property may be a good investment? Keep these numbers in mind.
“Executives from GE Capital, a unit of General Electric Co. (NYSE:GE) , said on Tuesday that the company expects to have about $7 billion in unrealized losses in the battered commercial real estate sector. The executives, speaking at an annual investor day for the unit, said that the decline in real estate values has also driven down the value of its collateral for commercial real estate loans, lifting impairments on loans above previous expectations for 2009. The company said it expects continued trouble in the sector in 2010, and expects commercial real estate values to fall 13% next year.” MarketWatch