Biography of Michael E. Pralle

Since joining GE Real Estate as President & Chief Executive Officer in 2000, Michael Pralle has transformed a little-known, largely domestic business into one of the world’s largest and most diversified commercial real estate investors and financers, with a presence in 26 countries and a portfolio of secured amount valued at $54 billion. During his tenure, he has built a record of industry expertise, product and technology innovation and disciplined risk management to deliver consistent earnings growth. Today, GE Real Estate contributes 9 percent of GE’s total net income.

The company’s strong financial performance—net income tripled over the past five years to more than $1.8 billion—is the direct result of Michael’s core growth strategy: manage the business through real estate cycles; establish a deeper presence in large, underserved countries, including Mexico and in Eastern Europe and maximize opportunities in emerging markets, particularly India and China. His vision is for GE Real Estate to be the world’s premier commercial real estate company—a global leader within what he predicts will be a truly global industry, in the manner of investment banking or law.

Under Michael’s leadership, GE Real Estate has grown substantially—while some growth was organic, the firm made 17 significant acquisitions since 2000. To Michael, it is the diversity of the business that helps control portfolio risk while fueling earnings growth. From a company focused principally on debt financing, he fashioned a business that is 53 percent equity investments. From a modest, domestic portfolio, he orchestrated investment in 7,500 properties worldwide—three-quarters outside the United States. From a more narrow income stream, he broadened the company’s sources of revenue, substantially expanding, for example, its property management business—which today oversees more than 105 million square feet of commercial space in the United States.

Perhaps one of Michael’s most significant contributions is his relentless focus on customer service, something for which GE has long been known. He capitalized on one of GE’s most distinctive strengths—the fact that it lends its own money to tailor transactions for customer needs in a way others cannot match. He continues to seek joint ventures with other world-class real estate companies to broaden GE Real Estate’s product scope. And, he has used the power of technology to meaningfully improve service quality in what remains essentially a face-to-face business. The $50 million Michael has spent on technology since 2002 has reduced transaction cycle times by 65 percent and markedly enhanced the accuracy and reliability of deals.

A disciplined manager, Michael is also largely responsible for honing the company’s already superb risk management orientation. With non-performing assets at an industry-low 0.55 percent in 2005, GE Real Estate is a recognized expert at measuring, managing and exiting the risks inherent in real estate. He believes this risk management discipline will be a critical competitive advantage as the real estate business expands into emerging markets characterized by differing legal systems, currency regulations and concepts of property rights. More than a bottom-line leader, Michael Pralle is a strong team-builder. He has helped develop a senior leadership team marked by long tenure at GE and deep expertise in the real estate industry. His team of 15 direct reports has an average length of service of 15 years.

A 17-year GE veteran with extensive international experience, Michael has served in a variety of senior leadership positions with the company, including as President of GE Equity. Prior to that, he was President, GE Capital Asia Pacific, where he supervised the company’s activities in 15 countries across North and Southeast Asia. He joined GE in 1989 as Vice President, Business Development, responsible for merger and acquisition activities. Before joining GE, Michael spent eight years with McKinsey and Co. in its London and Hong Kong offices.

Michael graduated magna cum laude from Harvard University in 1978 with a B.A. in Economics and received an M.B.A. from the Stanford Graduate School of Business in 1982, where he was awarded the Arthur D. Little Fellowship.