GE Real Estate Revenue Falls 46% from 2008

Revenue from General Electric’s (GE) real estate division for the first nine months of 2009 declined 46% compared to 2008, the company said in its Q309 report. GE Capital Real Estate, which creates real estate debt and equity investment funds for institutional investors as well as finances commercial real estate transactions through commercial mortgages in North America, lost $538m in Q309, compared to profit of $244m in Q308. Year-to-date losses through Q309 were $948m. The real estate division is a segment within GE’s Capital Finance subsidiary, which reported earnings of $263m, down from $2bn in Q308, a decline of 87%. “While it remains a tough environment for GE Capital, we are seeing signs of stabilization,” said GE chairman and CEO Jeff Immelt. “Every segment at GE Capital was profitable with the exception of Real Estate, which is experiencing a tough environment but where we believe the risks are well understood and manageable. Overall Q309 profit for GE was $2.5bn, down from $4.3bn in Q308. Write to Austin Kilgore.

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