CIT Resumes CRE Lending Business - Analyst Blog
November 03 2011 - 1:11PM
Zacks
CIT Group Inc. (CIT) re-initiated its
commercial real estate (CRE) lending business with the launch of
CIT Real Estate Finance on Wednesday. The new business will
originate and underwrite senior secured real estate transactions in
the Boston, New York City and Washington, D.C. areas. When the
financial crisis was at its peak in 2008, CIT had scaled back its
CRE lending division to stay afloat.
CIT Real Estate Finance will provide real estate loans above $20
million to well capitalized and experienced developers in the
office, retail, industrial and multi-family rental sectors.
Matthew E. Galligan, Executive Vice President, has been
appointed as the Group Head and will report to CIT President Nelson
J. Chai. Apart from Galligan, Meggan Walsh is the group's new
managing director with Christopher Niederpruem as the new
Director.
The restart of CRE lending business reflects CIT’s focus on
growth opportunities and building assets. Further, this business
will enable the company to capitalize on current market
conditions.
Last week, CIT had reported third quarter loss of 8 cents per
share, significantly lower than the Zacks Consensus Estimate of a
loss of 18 cents. Considerable deterioration of net interest
revenue and higher debt-prepayment costs were the main reasons
behind the loss. However, the company has been progressing well to
remove high cost debts.
We expect CIT to continue benefiting from its strong capital and
liquidity position. However, the company will have to focus on
top-line improvement; otherwise, its bottom line will remain under
pressure. The launch of CRE division is expected to slightly
contribute to its revenue growth in the upcoming years.
CIT currently retains a Zacks #3 Rank, which translates into a
short-term Hold rating. However, one of its competitors,
Dollar Financial Corp. (DLLR) retains a Zacks #2
Rank (a short-term Buy rating).
DFC GLOBAL CORP (DLLR): Free Stock Analysis Report
Zacks Investment Research
Dfc Global Corp (MM) (NASDAQ:DLLR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Dfc Global Corp (MM) (NASDAQ:DLLR)
Historical Stock Chart
From Jul 2023 to Jul 2024