GE Capital A Proxy For Commercial Real Estate

As one of the largest investors in commercial real estate in the word, GE is a great proxy for the commercial real estate market.

GE participates in the market as both investor and lender, with a portfolio as of the end of June, 2009 of approximately $84 billion, covering 8,000 pieces of property. Unlike most other real estate investment companies, GE will usually make cash purchases. By not having the pressure of a mortgage lender breathing down their neck, GE has the luxury of waiting out the real estate slump. With mark-to-market accounting rules in place, this luxury of being able to wait will not insulate GE from taking earnings hits from investment devaluations in its real estate portfolio.