"The commercial real estate (CRE) financing industry is fundamentally unprofitable. That is the grim conclusion of a confidential report obtained by PropertyEU. It gets worse: even in the 'golden years' of 2006-07, the industry as a whole does not return its cost of capital, let alone over the business cycle. 'Put another way, the ""profits"" recorded in good times are in fact economic losses to equity holders; worse, they fail to provide a cushion for the significant losses that come in industry downturns.'"
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