RAIT Financial Trust (fka RASFQ)

[MCArmel1]

RAIT Financial beats by $0.03, beats on revenue

Nov 5 2015, 07:57 ET | About: RAIT Financial Trust (RAS) | By: Mohit Manghnani, SA News Editor

RAIT Financial (NYSE:RAS): Q3 CAD of $0.27 beats by $0.03.

Revenue of $24.5M (-26.4% Y/Y) beats by $0.19M.

Press Release

http://seekingalpha.com/news/2900916-rait-financial-beats-by-0_03-beats-on-revenue?uprof=45#email_link


RAIT Financial Trust Announces Third Quarter 2015 Financial Results
Thu November 5, 2015 7:45 AM|Business Wire | About: RAS

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

Highlights:
• Cash Available for Distribution (CAD) per share of $0.27 for the quarter ended September 30, 2015 compared to $0.00 for the quarter ended September 30, 2014.
• RAIT paid a third quarter dividend of $0.18 per common share on October 30, 2015.
• Investments in mortgages and loans, at cost, increased 14.4% to $1.59 billion at September 30, 2015 from $1.39 billion at December 31, 2014.
• RAIT originated $237.7 million of loans during the quarter ended September 30, 2015 and $675.1 million of loans during the nine-month period ended September 30, 2015.
• RAIT Apartment Portfolio (excludes IRT): • Average effective rent per unit per month in RAITs multifamily portfolio increased 4.5% to $841 for the quarter ended September 30, 2015 from $805 for the quarter ended September 30, 2014.
• Average occupancy in RAITs multifamily portfolio increased to 93.8% for the quarter ended September 30, 2015 from 93.1% for the quarter ended September 30, 2014.

• RAIT Q3 2015 Property Sales: • RAIT sold a 148 unit apartment community in Miami, Florida for $17.5 million resulting in a CAD gain of $5.9 million.
• RAIT sold two land parcels in Daytona Beach, Florida for $3.0 million resulting in a CAD gain of $0.4 million.


Commercial Real Estate (CRE) Lending Business
• RAIT originated $237.7 million of loans during the quarter ended September 30, 2015 consisting of $65.2 million of fixed-rate conduit loans and $172.5 million of floating-rate bridge loans. RAIT originated $675.1 million of loans during the nine-month period ended September 30, 2015 consisting of $312.2 million of fixed-rate conduit loans, $357.9 million of floating-rate bridge loans and a $5.0 million mezzanine loan.
• RAIT sold $116.3 million of conduit loans during the quarter ended September 30, 2015 which generated fee income of $0.4 million. RAIT sold $339.5 million of conduit loans during the nine-month period ended September 30, 2015 which generated fee income of $6.1 million.
• CRE loan repayments were $39.1 million for the quarter ended September 30, 2015 and $169.6 million during the nine-month period ended September 30, 2015.

CRE Property Portfolio & Property Sales
• As of September 30, 2015, RAITs investments in real estate were $2.3 billion which includes $1.4 billion 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 September 30, 2015, RAIT owned 15.5% of IRTs outstanding common stock.
• On September 17, 2015, IRT completed the acquisition of Trade Street Residential, Inc. adding nineteen high-quality properties or 4,989 units to its portfolio. RAIT expects the acquisition to benefit RAIT through RAITs ownership of IRT common stock and increased fees paid to RAIT by IRT. RAIT generated $6.1 million in asset and property management fees and incentive fees through its external management of IRT during the nine-month period ended September 30, 2015.
• RAIT sold one property and two parcels of land for $20.5 million and recognized a CAD gain of approximately $6.3 million after costs and full repayment of the underlying debt.
• RAIT reported a $7.3 million asset impairment for the quarter ended September 30, 2015 on an office building located in Garden City, New York.

Asset & Property Management
• Total assets under management increased 28.9% to $5.8 billion at September 30, 2015 from $4.5 billion at December 31, 2014.
• RAITs property management companies managed 20,744 apartment units and 22.9 million square feet of office and retail space at September 30, 2015.

Dividends
• On September 17, 2015, RAITs Board of Trustees (the Board) declared a third quarter 2015 cash dividend on RAITs common shares of $0.18 per common share. The dividend was paid on October 30, 2015 to holders of record on October 9, 2015.
• On July 28, 2015, the Board declared a third 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 September 30, 2015 to holders of record on September 1, 2015.

Scott Schaeffer, RAITs Chairman and CEO, said, RAIT originated $172.5 million of floating-rate bridge loans and received repayments of $39.1 million, for net loan growth of $133.4 million. Additionally, RAIT originated $65.2 million of fixed-rate conduit loans and sold $116.3 million CMBS loans during the quarter. Our CMBS loan sale business remained profitable despite the dramatic widening of bond spreads. We also sold RAIT properties which generated $6.3 million of CAD gains. These activities plus the recurring income from our loan portfolio and various asset management activities delivered $0.27 of CAD and a $0.18 dividend to common shareholders in the third quarter. We continue to see solid lending opportunities and will continue the strategy seeking opportunistic sales of RAIT owned properties in order to reinvest proceeds into higher yielding asset classes.

Financial Results

RAIT reported CAD, a non-GAAP financial measure, for the three-month period ended September 30, 2015 of $23.7 million, or $0.27 per share based on 87.1 million weighted-average shares outstanding, as compared to CAD for the three-month period ended September 30, 2014 of $(0.4) million, or $0.00 per share based on 82.0 million weighted-average shares outstanding. RAIT reported a net loss allocable to common shares for the three-month period ended September 30, 2015 of $6.5 million, or $0.07 total loss per share - diluted based on 87.1 million weighted-average shares outstanding diluted, as compared to net loss allocable to common shares for the three-month period ended September 30, 2014 of $23.3 million, or $0.28 total loss per share diluted based on 82.0 million weighted-average shares outstanding diluted.

RAIT reported CAD for the nine-month period ended September 30, 2015 of $69.3 million, or $0.83 per share based on 83.8 million weighted-average shares outstanding, as compared to CAD for the nine-month period ended September 30, 2014 of $36.6 million, or $0.45 per share based on 81.1 million weighted-average shares outstanding. RAIT reported a net income allocable to common shares for the nine-month period ended September 30, 2015 of $5.3 million, or $0.06 total earnings per share based on 85.6 million weighted-average shares outstanding diluted, as compared to net loss allocable to common shares for the nine-month period ended September 30, 2014 of $63.5 million, or $0.78 total loss per share based on 81.1 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.

Key Statistics

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