EXHIBIT 99
RAIT INVESTMENT TRUST ANNOUNCES THIRD QUARTER 2002 NET INCOME UP 72% OVER THIRD
QUARTER 2001
PHILADELPHIA, PA -- OCTOBER 24, 2002 --
THIRD QUARTER HIGHLIGHTS
- - Revenue of $19.3 million for the third quarter 2002 represents a 35% increase
over the third quarter 2001 revenue of $14.3 million.
- - Net income of $11.4 million for the third quarter 2002 represents a 72%
increase over the third quarter 2001 net income of $6.6 million.
- - Net income per common share diluted for the third quarter 2002 increases 13%
to $0.63 based on 18.3 million weighted average common shares diluted from $0.56
for the third quarter 2001 based on 11.9 million weighted average common shares
diluted.
RAIT Investment Trust (RAIT) (NYSE: RAS), a company that provides specialized
financing to the real estate market, reported revenues of $19.3 million and
$14.3 million for the three months ended September 30, 2002 and 2001,
respectively, and revenues of $53.5 million and $37.3 million for the nine
months ended September 30, 2002 and 2001, respectively. Included in revenue in
the three and nine months ended September 30, 2002 is income from loan
satisfaction of $3.2 million which related to the Company's partial repayment
and conversion of two loans (total net book value of $2.3 million) into
preferred interests (total book value of $3.2 million) in the entities which own
the real estate underlying the loans.
Net income for the third quarter ended September 30, 2002 was $11.4 million, or
$0.63 per diluted share based on 18.3 million weighted average common shares
diluted, as compared to $6.6 million, or $0.56 per diluted share based on 11.9
million weighted average common shares diluted for the third quarter ended
September 30, 2001.
Net income before minority interest and extraordinary gain for the nine months
ended September 30, 2002 was $31.8 million, or $1.85 per diluted share based on
17.2 million weighted average common shares diluted, as compared to $14.6
million, or $1.58 per diluted share based on 9.2 million weighted average common
shares diluted, for the nine months ended September 30, 2001. During the nine
months ended September 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 ($0.50 per share diluted).
BALANCE SHEET SUMMARY
As of September 30, 2002, RAIT's total assets were $444.9 million (including
$266.6 million of investments in real estate loans and $132.7 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
$266.5 million at September 30, 2002 and $211.0 million at December 31, 2001.
Total common shares outstanding were 18,180,611 at September 30, 2002.
DIVIDEND SUMMARY
On September 3, 2002, RAIT announced a second quarter dividend of $0.60 per
share (payable on October 15, 2002 to shareholders of record on September 13,
2002). This dividend represents an annualized yield of 11.8% based on the
October 24, 2002 closing stock price of $20.36. 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 seventeen quarters.
CONFERENCE CALL WEBCAST
Interested parties can access the LIVE Webcast of RAIT's Quarterly Earnings
Conference Call at 12:00 PM EDT on Friday, October 25, 2002 by clicking on the
Webcast link on RAIT's homepage at www.raitinvestmenttrust.com. The webcast will
be archived on the RAIT website for four weeks.
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, 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. If you
would like to be added to RAIT's distribution list to receive news, updates and
announcements, please email info@raitinvestmenttrust.com.
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 nine months
ended September 30, ended September 30,
------------------- -------------------
2002 2001 2002 2001
----------- ----------- ----------- -----------
REVENUES
Interest income $ 8,369,948 $ 5,877,477 $24,257,745 $16,180,248
Rental income 6,175,076 5,701,081 19,305,057 16,049,715
Fee income and other 910,754 2,588,282 4,610,134 4,745,642
Investment income 681,589 139,217 1,208,227 276,410
Gain on sale of loan -- -- 947,974 --
Income from loan satisfaction 3,181,670 -- 3,181,670 --
----------- ----------- ----------- -----------
Total revenues 19,319,037 14,306,057 53,510,807 37,252,015
COSTS AND EXPENSES
Interest 2,570,182 2,592,566 6,787,724 8,485,720
Property operating expenses 3,291,188 3,439,836 9,426,034 8,888,646
Salaries and related benefits 751,568 521,125 1,654,652 1,753,418
General and administrative 492,645 330,195 1,167,795 1,062,858
Depreciation and amortization 908,461 799,322 2,673,264 2,450,640
----------- ----------- ----------- -----------
Total costs and expenses 8,014,044 7,683,044 21,709,469 22,641,282
----------- ----------- ----------- -----------
Net Income before minority interest
and extraordinary gain 11,304,993 6,623,013 31,801,338 14,610,733
Minority interest 128,553 26,831 18,599 50,262
Extraordinary gain -- consolidated
extinguishment of indebtedness
underlying investment in real estate -- -- -- 4,633,454
----------- ----------- ----------- -----------
Net Income $11,433,546 $ 6,648,844 $31,819,937 $19,294,449
=========== =========== =========== ===========
Earnings per share-basic:
Net income per common share
before minority interest and
extraordinary gain $ .62 $ .56 $ 1.86 $ 1.60
Minority interest .01 .01 -- --
Extraordinary gain -- -- -- .51
----------- ----------- ----------- -----------
Net income $ .63 $ .57 $ 1.86 $ 2.11
=========== =========== =========== ===========
Weighted average common shares basic 18,149,478 11,750,828 17,126,868 9,155,629
=========== =========== =========== ===========
Earnings per share-diluted:
Net income per common share
before minority interest and
extraordinary gain $ .62 $ .56 $ 1.85 $ 1.58
Minority interest .01 -- -- .01
Extraordinary gain -- -- -- .50
----------- ----------- ----------- -----------
Net income per common share- diluted $ .63 $ .56 $ 1.85 $ 2.09
=========== =========== =========== ===========
Weighted average common shares diluted 18,265,344 11,868,432 17,230,431 9,226,517
=========== =========== =========== ===========