Subject: Re: tough day
"$2.8 billion ($1.0 billion during the quarter) was reinvested back into our operating businesses, primarily to opportunistically repay corporate and asset-level debt and to fund investments within our real estate business."

In my previous post, I may have mis-interpreted above statement from management. I assumed above meant 2.8 billion was used to repay corporate and asset-level debt and to fund investments ALL in the real estate (RE) business. This didn't make sense because the RE business should not have significant corporate debt. We have been repeatedly told all RE debt is property specific and non-recourse.

However, upon closer inspection, perhaps they are saying money was used to opportunistically repay [corporate and asset-level debt, (not RE specific)] AND [fund new investments in the RE business.] This makes more sense.

Still, why use earnings to pay asset-level debt? Isn't this a red flag? Doesn't it indicate that the asset isn't able to cover its interest payments and is in some kind of distress? Using earnings to pay down corporate debt and funding new investments is fine.