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That’s what Craig Lindner told shareholdersat ’s annual meetingb May 12. The co-CEO of the Cincinnati-based insurance enterprise, and the son of its Carl Lindner Jr., said the company’s $18 billion investment portfolioi will continue to focus mainlyon fixed-incom securities, which represent 85 percent of all investments. AFG sold off most of its equityt holdings in thelast year. Stocks now represenrt less than a half percent of thetotapl portfolio. And with $1.
2 billion in cash on its balancs sheet, AFG is looking to buy real “We think the fact that bankse and insurance companies are not makingt any new loans against commerciak real estate is going to create some opportunitiexsfor us,” Craig Lindner said in an interview followinyg the annual meeting. “We’red going to look across the Wherever the values are greatesf iswhere we’ll look to invest money.” The company is “looking at a number of deals right now,” he While Lindner wouldn’t say what segments of the market AFG he said the company historically has preferred hotels, marinas, apartment buildings and undeveloped land.
“Our real estatee strategy is based upon a histor y of buying underperformingor out-favored assets, developing or managing them in-houses and selling them when we believe their value has been maximized,” he Local real estate developee Tom Neyer Jr. said the slowdown in commercial lending has driven down real estate values – providing an advantage for deep-pocket investors. “The Lindners have a history ofbeing farsighted, patient investors. I think this real estate marketf will rewardthose qualities,” Neye said.
The Lindners’ track record includes extensive land deals in Warren air rights overNew York’s Grand Central Stationb and the assemblage of an entire city block in downtown Cincinnati. The company’s annual report indicates AFG’s existinb real estate operations employ 600 and include the Mountaib View Grand Resort inNew Hampshire, the Skipjacmk Cove Yachting Resort in Chesapeake Bay and the Sailfish Marina and Resory in Palm Beach, Fla. The division has been shrinkintg inrecent years, generating $75.2 million in incom e in 2008, down 12 percent from 2007 and 44 perceny less than in 2006.
