RAIT Financial Trust (fka RASFQ)

[MCArmel1]

RAIT Financial misses by $0.05

Apr 30 2015, 08:10 ET | About: RAIT Financial Trust (RAS) | By: Mohit Manghnani, SA News Editor

RAIT Financial (NYSE:RAS): Q1 CAD of $0.19 misses by $0.05.
Revenue of $75.9M (+12.8% Y/Y)
Press Release

http://seekingalpha.com/news/2472066-rait-financial-misses-by-0_05?auth_param=ano5b:1ak470r:2b896891e7bc19f746b488b9fa27ade5&uprof=45#email_link


RAIT Financial Trust Announces First Quarter 2015 Financial Results
Thu April 30, 2015 8:05 AM|Business Wire | About: RAS

PHILADELPHIA--(BUSINESS WIRE)-- RAIT Financial Trust (RAS) (RAIT) (NYSE:RAS) today announced first quarter 2015 financial results.

Highlights:

Financial Performance
• Total revenues grew 12.8% to $75.9 million for the quarter ended March 31, 2015 from $67.3 million for the quarter ended March 31, 2014.
• Fee and other income increased 27.3% to $5.6 million at March 31, 2015 from $4.4 million for the quarter ended March 31, 2014.
• Cash Available for Distribution (CAD) per share was $0.19 for the quarter ended March 31, 2015 compared to $0.22 for the quarter ended March 31, 2014.

CAD Guidance
• RAIT maintains its previously announced CAD guidance of $1.02-$1.20 per share for 2015. Please see slide 14 in RAITs current report on Form 8-K furnished with the Securities and Exchange Commission (SEC) on March 27, 2015 for a reconciliation of RAIT's annualized projected net income (loss) allocable to common shares to its projected CAD and assumptions underlying the estimate, managements rationale for the usefulness of CAD, how RAIT calculates CAD, and other information.

Dividends
• On March 16, 2015, RAITs Board of Trustees (the Board) declared a first quarter 2015 cash dividend on RAITs common shares of $0.18 per common share. The dividend was paid on April 30, 2015 to holders of record on April 10, 2015.
• On February 10, 2015, the Board declared a first quarter 2015 cash dividend of $0.484375 per share on RAITs 7.75% Series A Cumulative Redeemable Preferred Shares, $0.5234375 per share on RAITs 8.375% Series B Cumulative Redeemable Preferred Shares and $0.5546875 per share on RAITs 8.875% Series C Cumulative Redeemable Preferred Shares. The dividends were paid on March 31, 2015 to holders of record on March 2, 2015.

Commercial Real Estate (CRE) Lending Business
• Investments in mortgages and loans increased 8.0% to $1.49 billion at March 31, 2015 from $1.38 billion at December 31, 2014.
• RAIT originated $218.8 million of loans during the quarter ended March 31, 2015 consisting of $128.7 million of fixed-rate conduit loans and $90.1 million of floating-rate bridge loans
• RAIT sold $92.9 million of conduit loans during the quarter ended March 31, 2015 which generated fee income of $2.0 million.

CRE Property Portfolio
• As of March 31, 2015, RAITs investments in real estate were $1.7 billion which includes $662.6 million of multi-family properties owned by Independence Realty Trust, Inc. (IRT) (NYSE MKT: IRT). IRT is externally advised by RAIT and is a consolidated RAIT entity. IRT is a REIT focused on owning multifamily properties. At March 31, 2015, RAIT owned 23% of IRTs outstanding common stock.
• Rental income increased 53.4% to $54.0 million during the quarter ended March 31, 2015 from $35.2 million for the quarter ended March 31, 2014 driven largely by the acquisition of 28 properties during 2014 and improved rental and occupancy rates.
• Average effective rent per unit per month in RAITs multifamily portfolio increased 8.3% to $831 for the quarter ended March 31, 2015 from $767 for the quarter ended March 31, 2014.

Asset & Property Management
• Total assets under management increased 2.2% to $4.6 billion at March 31, 2015 from $4.5 billion at December 31, 2014.
• RAITs property management companies managed 16,109 apartment units and 22.5 million square feet of office and retail space at March 31, 2015.

Scott Schaeffer, RAITs Chairman and CEO, said, During the first quarter we continued investing in our core businesses: lending, owning and managing commercial real estate assets. We originated $219 million of loans during the quarter and anticipate growing loan volumes throughout the year. Our property portfolio experienced 21% NOI growth, sequentially, and we are making progress with our previously announced opportunistic property sale program and anticipate closing on our first property sale during the second quarter.

Financial Results

RAIT reported CAD, a non-GAAP financial measure, for the three-month period ended March 31, 2015 of $15.3 million, or $0.19 per share - diluted based on 82.1 million weighted-average shares outstanding diluted, as compared to CAD for the three-month period ended March 31, 2014 of $17.2 million, or $0.22 per share diluted based on 80.0 million weighted-average shares outstanding diluted. RAIT reported a net loss allocable to common shares for the three-month period ended March 31, 2015 of $7.1 million, or $0.09 total loss per share - diluted based on 82.1 million weighted-average shares outstanding diluted, as compared to net loss allocable to common shares for the three-month period ended March 31, 2014 of $14.6 million, or $0.18 total loss per share diluted based on 80.0 million weighted-average shares outstanding diluted.

A reconciliation of RAIT's reported net income (loss) allocable to common shares to its CAD is included as Schedule I to this release. A reconciliation of RAIT's total shareholders equity to its adjusted book value, a non-GAAP financial measure, is included as Schedule II to this release. A reconciliation of RAIT's net income (loss) allocable to common shares to its funds from operations, a non-GAAP financial measure, is included as Schedule III to this release. These Schedules also include management's respective rationales for the usefulness of each of these non-GAAP financial measures.

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