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rick85284

11/27/06 10:18 PM

#3102 RE: rjbluesky #3100

That's the beauty or beast of a RE Holding Company. For financial reporting purposes, RE assets are reported at cost less depreciation (no dep. for land).
So, opportunity exists for off balance sheet equity from asset depreciation, which is realized when an asset is sold. On the other hand, if they bought wrong, or the wrong time, or both; then write downs are a risk.