Replies to post #21191 on Don't Bite The Hand That Feeds You

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RAIT Financial Trust Declares First Quarter 2010 Preferred Dividends, Announces Decision on 2009 Common Dividends and Announces Tax Treatment of 2009 Preferred Dividends
Tuesday January 26, 2010, 5:01 pm EST

http://finance.yahoo.com/news/RAIT-Financial-Trust-Declares-bw-1064391046.html?x=0&.v=1

PHILADELPHIA--(BUSINESS WIRE)--RAIT Financial Trust (“RAIT”) (NYSE: RAS - News) today announced the following:

Preferred Stock Dividend Declaration

On January 26, 2010, RAIT’s Board of Trustees declared a first quarter 2010 cash dividend of $0.484375 per share on RAIT’s 7.75% Series A Cumulative Redeemable Preferred Shares (the “Series A Preferred Shares”), $0.5234375 per share on RAIT’s 8.375% Series B Cumulative Redeemable Preferred Shares (the “Series B Preferred Shares”) and $0.5546875 per share on RAIT’s 8.875% Series C Cumulative Redeemable Preferred Shares (the “Series C Preferred Shares”). The dividends will be paid on March 31, 2010 to holders of record on March 1, 2010.

Decision on 2009 Common Dividend and 2010 Dividends

On January 26, 2010, after reviewing RAIT’s estimated 2009 REIT taxable income, RAIT’s Board of Trustees (the “Board”) determined that the cash dividends paid on RAIT’s preferred shares during 2009 fully met RAIT’s REIT distribution requirements for the 2009 taxable year necessary for RAIT to maintain its REIT status. Therefore, the Board believes that it is in the Company’s and shareholders’ best interests not to declare a 2009 dividend on RAIT’s common shares at this time. To qualify as a REIT, RAIT is required to make distributions to shareholders, first to preferred shareholders and then to common shareholders, in an amount at least equal to 90% of RAIT’s annual REIT taxable income.

The Board will continue to monitor RAIT's estimated REIT taxable income and intends to declare a dividend, if any, on RAIT’s common shares in at least the amount necessary to meet REIT distribution requirements for RAIT’s 2010 taxable year. The Board expects to make its determination regarding any dividend on RAIT’s common shares for RAIT’s 2010 taxable year when a full year of REIT taxable income is determinable. The Board expects to continue to review and determine the dividends on RAIT’s preferred shares on a quarterly basis.

Tax Treatment of 2009 Preferred Dividends

Series A Preferred Shares

The Series A Preferred Shares are currently listed under the CUSIP #749227203 and trade under the NYSE ticker symbol RAS PRA. During 2009, the aggregate amount of dividends paid on the Series A Preferred Shares was $1.9376 per share. For tax reporting purposes, these 2009 dividends will be classified as follows: $1.9376 as return of capital. The following table contains this information on a quarterly basis.

Declaration
Date


Record
Date


Payment
Date


Distribution
Paid


Return
of
Capital

1/27/2009 3/02/2009 3/31/2009 $0.4844 $0.4844
4/08/2009 6/01/2009 6/30/2009 0.4844 0.4844
7/28/2009 9/01/2009 9/30/2009 0.4844 0.4844
10/27/2009 12/01/2009 12/31/2009 0.4844 0.4844
$1.9376 $1.9376

Series B Preferred Shares

The Series B Preferred Shares are currently listed under the CUSIP #749227302 and trade under the NYSE ticker symbol RAS PRB. During 2009, the aggregate amount of dividends paid on the Series B Preferred Shares was $2.0936 per share. For tax reporting purposes, these 2009 dividends will be classified as follows: $2.0936 as return of capital. The following table contains this information on a quarterly basis.

Declaration
Date


Record
Date


Payment
Date


Distribution
Paid


Return
of
Capital

1/27/2009 3/02/2009 3/31/2009 $0.5234 $0.5234
4/08/2009 6/01/2009 6/30/2009 0.5234 0.5234
7/28/2009 9/01/2009 9/30/2009 0.5234 0.5234
10/27/2009 12/01/2009 12/31/2009 0.5234 0.5234
$2.0936 $2.0936

Series C Preferred Shares

RAIT’s 8.875% Series C Cumulative Redeemable Preferred Shares are currently listed under the CUSIP #749227500 and trade under the NYSE ticker symbol RAS PRC. During 2009, the aggregate amount of dividends paid on the Series C Preferred Shares was $2.2188 per share. For tax reporting purposes, these 2009 dividends will be classified as follows: $2.2188 as return of capital. The following table contains this information on a quarterly basis.

Declaration
Date


Record
Date


Payment
Date


Distribution
Paid


Return
of
Capital

1/27/2009 3/02/2009 3/31/2009 $0.5547 $0.5547
4/08/2009 6/01/2009 6/30/2009 0.5547 0.5547
7/28/2009 9/01/2009 9/30/2009 0.5547 0.5547
10/27/2009 12/01/2009 12/31/2009 0.5547 0.5547
$2.2188 $2.2188

About RAIT Financial Trust

RAIT Financial Trust manages a portfolio of real estate related assets, provides a comprehensive set of debt financing options to the real estate industry and invests in real estate related assets. RAIT's management uses its experience, knowledge and relationship network to seek to generate and manage real estate related investment opportunities for RAIT and for outside investors. For more information, please visit www.raitft.com or call Investor Relations at 215.243.9000.



Contact:

RAIT Financial Trust
Andres Viroslav, 215-243-9023
[e-mail]