Exhibit 99
RAIT INVESTMENT TRUST ANNOUNCES SECOND QUARTER 2002 NET
INCOME UP 122% OVER SECOND QUARTER 2001
PHILADELPHIA, PA -- JULY 9, 2002 --
SECOND QUARTER 2002 HIGHLIGHTS:
- Revenue. Revenue of $18.3 million represents a 45% increase
over the second quarter 2001 revenue of $12.6 million.
- Net income. Net income of $11.0 million represents a 122%
increase over, or more than twice, the second quarter 2001 net
income of $4.9 million.
- Earnings Per Share. Net income per diluted common share
increases 17% to $0.62 (based on 17.8 million weighted average
common shares outstanding-diluted) from $0.53 for the second
quarter 2001 (based on 9.3 million weighted average common
shares outstanding-diluted).
RAIT Investment Trust (RAIT) (NYSE: RAS), a company that provides specialized
financing to the real estate market, reported revenues of $18.3 million and
$12.6 million for the three months ended June 30, 2002 and 2001, respectively,
and revenues of $35.0 million and $23.0 million for the six months ended June
30, 2002 and 2001, respectively.
Net income for the second quarter ended June 30, 2002 was $11.0 million, or
$0.62 per share (basic and diluted) based on 17.6 million weighted average
shares - basic and 17.8 million weighted average shares - diluted, as compared
to $4.9 million, or $0.53 per share (basic and diluted) based on 9.3 million
weighted average shares (basic and diluted), for the second quarter ended June
30, 2001.
Net income before minority interest and extraordinary gain for the six months
ended June 30, 2002 was $20.5 million, or $1.23 per share-basic and $1.22 per
share- diluted based on 16.6 million weighted average shares - basic and 16.7
million weighted average shares - diluted, as compared to $8.0 million, or $1.02
per share-basic and $1.01 per share-diluted based on 7.8 million weighted
average shares - basic and 7.9 million weighted average shares - diluted, for
the six months ended June 30, 2001. During the six months ended June 30, 2001
RAIT completed the purchase of two loans underlying one of its property
interests for $20.3 million. The difference between the purchase price and the
underlying face value of the loans resulted in the consolidated extinguishment
of debt, which was recorded as an extraordinary gain of $4.6 million ($0.59 per
share basic and diluted).
As of June 30, 2002, RAIT's total assets were $395.7 million (including $226.7
million of investments in real estate loans and $130.0 million of investments in
real estate). As of December 31, 2001, RAIT's total assets were $334.6 million,
(including $197.3 million of investments in real estate loans and $104.9 million
of investments in real estate).
RAIT's total equity was $265.4 million at June 30, 2002 and $211.0 million at
December 31, 2001.
On June 13, 2002, RAIT announced a second quarter dividend of $0.59 per share
(payable on July 15, 2002 to shareholders of record on June 28, 2002). This
dividend represents an annualized yield of 11.1% based on the July 8, 2002
closing stock price of $21.35. Including this second quarter dividend, RAIT has
paid a regular quarterly cash dividend of at least $0.51 per share during each
of the past sixteen quarters.
NOTE: YOU MAY LISTEN TO THE LIVE WEBCAST OF RAIT'S QUARTERLY EARNINGS CONFERENCE
CALL AT 12:00 PM EDT ON TUESDAY, JULY 9, 2002 BY CLICKING ON THE WEBCAST LINK ON
RAIT'S HOMEPAGE AT WWW.RAITINVESTMENTTRUST.COM. IF YOU WOULD LIKE TO BE ADDED
TO RAIT'S DISTRIBUTION LIST, PLEASE EMAIL INFO@RAITINVESTMENTTRUST.COM.
ABOUT RAIT INVESTMENT TRUST
RAIT Investment Trust (NYSE:RAS) is a specialty finance company focused on the
commercial real estate industry. RAIT provides structured financing to private
and corporate owners of real estate nationwide, including senior and junior
mortgage debt and mezzanine lending, and acquires real estate for its own
account. RAIT, which is taxed as a real estate investment trust, seeks to
deliver risk-adjusted returns on equity to shareholders by providing tailored
and flexible financing products to its customers. For more information please
visit www.raitinvestmenttrust.com or call Investor Relations at 215-861-7900.
This news release shall not constitute an offer to sell or a solicitation of an
offer to buy nor shall there be any sale of these securities in any state or
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such state or
jurisdiction.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: Statements in this press release regarding RAIT Investment Trust's
business which are not historical facts are "forward-looking statements" that
involve risks and uncertainties. For discussion of such risks and uncertainties,
which could cause actual results to differ from those contained in the forward
looking statement, see RAIT's filings with the Securities and Exchange
Commission, including Registration Statement No. 333-69422 under the section
entitled "Risk Factors", the Form 10-K, as amended, for the year ended December
31, 2001 and the most recent filed Quarterly Report on Form 10-Q. RAIT does not
undertake to update forward-looking statements in this press release or with
respect to matters described herein
RAIT INVESTMENT TRUST CONTACT
Andres Viroslav
215-861-7923
aviroslav@raitinvestmenttrust.com
RAIT INVESTMENT TRUST
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
For the three months For the six months
ended June 30, ended June 30,
-------------- --------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
REVENUES
Mortgage interest income 8,037,385 $ 5,458,946 16,315,729 $ 10,302,771
Rental income 6,466,737 5,566,242 13,129,981 10,348,634
Fee income and other 3,351,765 1,479,660 3,699,380 2,157,360
Investment income 430,086 61,872 526,638 137,193
Gain on sale of loan -- -- 947,974 --
------------ ------------ ------------ ------------
Total revenues 18,285,973 12,566,720 34,619,702 22,945,958
COSTS AND EXPENSES
Interest 2,070,940 2,743,079 4,217,542 5,893,154
Property operating expenses 3,255,602 3,125,134 6,134,846 5,448,810
Salaries and benefits 692,023 560,421 1,332,113 1,232,293
General and administrative 361,006 409,274 674,052 732,663
Depreciation and amortization 910,283 811,068 1,764,803 1,651,318
------------ ------------ ------------ ------------
Total costs and expenses 7,289,854 7,648,976 14,123,356 14,958,238
------------ ------------ ------------ ------------
Net income before minority interest
and extraordinary gain 10,996,119 4,917,744 20,496,346 7,987,720
Minority interest (38,971) 23,667 (109,954) 23,431
Extraordinary gain -- consolidated
extinguishment of indebtedness
underlying investment in real estate -- -- -- 4,633,454
------------ ------------ ------------ ------------
NET INCOME $ 10,957,148 $ 4,941,411 $ 20,386,392 $ 12,644,605
------------ ------------ ------------ ------------
EARNINGS PER SHARE-BASIC:
Net income per common share before
minority interest and extraordinary gain $ .62 $ .53 $ 1.23 $ 1.02
Extraordinary gain -- -- -- .59
------------ ------------ ------------ ------------
Net income $ .62 $ .53 $ 1.23 $ 1.61
------------ ------------ ------------ ------------
Weighted average common shares-basic 17,645,936 9,253,722 16,607,088 7,836,522
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EARNINGS PER SHARE-DILUTED:
Net income per common share before
minority interest and extraordinary gain $ .62 $ .53 $ 1.22 $ 1.01
Extraordinary gain -- -- -- .59
------------ ------------ ------------ ------------
Net income $ .62 $ .53 $ 1.22 $ 1.60
------------ ------------ ------------ ------------
Weighted average common shares-diluted 17,813,109 9,345,657 16,739,252 7,908,400
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