EXHIBIT 99
RAIT INVESTMENT TRUST ANNOUNCES 2002 REVENUES UP 40% OVER 2001
PHILADELPHIA, PA -- JANUARY 24, 2003 --
2002 HIGHLIGHTS
- Revenues of $73.7 million for the year ended December 31, 2002
represents a 41% increase over the year ended December 31, 2001
revenues of $52.4 million.
- Net income (before minority interest and extraordinary gain) of $43.5
million for the year ended December 31, 2002 represents a 96%
increase over the year ended December 31, 2001 net income (before
minority interest and extraordinary gain) of $22.2 million.
- Net income per common share diluted (before extraordinary gain) for
the year ended December 31, 2002 increased 13.2% to $2.48 based on
17.5 million weighted average common shares diluted from $2.19 for
the year ended December 31, 2001 based on 10.1 million weighted
average common shares diluted.
RAIT Investment Trust (RAIT) (NYSE: RAS), a company that provides specialized
financing to the mid-sized real estate market, reported revenues of $20.2
million and $15.2 million for the three months ended December 31, 2002 and 2001,
respectively, and revenues of $73.7 million and $52.4 million for the year ended
December 31, 2002 and 2001, respectively.
Net income for the three months ended December 31, 2002 was $11.7 million, or
$0.63 per common share diluted based on 18.6 million weighted average common
shares diluted, as compared to $7.6 million, or $0.60 per common share diluted
based on 12.8 million weighted average common shares diluted for the three
months ended December 31, 2001.
Net income (before minority interest and extraordinary gain) for the year ended
December 31, 2002 was $43.5 million, or $2.48 per common share diluted (before
extraordinary gain) based on 17.5 million weighted average common shares
diluted, as compared to $22.2 million, or $2.19 per common share diluted (before
extraordinary gain) based on 10.1 million weighted average common shares
diluted, for the year ended December 31, 2001. During the year ended December
31, 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 ($0.46 per common share diluted).
BALANCE SHEET SUMMARY
As of December 31, 2002, RAIT's total assets were $438.7 million (including
$259.0 million of investments in real estate loans and $139.5 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 shareholders' equity
was $277.5 million at December 31, 2002 and $211.0 million at December 31, 2001.
Total common shares outstanding were 18,803,471 at December 31, 2002 and
14,947,197 at December 31, 2001.
DIVIDEND SUMMARY
On December 11, 2002, RAIT announced a fourth quarter dividend of $0.62 per
share (payable on December 31, 2002 to shareholders of record on December 24,
2002). This dividend represents an annualized yield of 11.4% based on the
January 22, 2003 closing stock price of $21.81. Including this fourth quarter
dividend, RAIT has declared a regular quarterly cash dividend of at least $0.51
per share during each of the past eighteen quarters.
CONFERENCE CALL WEBCAST
Interested parties can access the LIVE webcast of RAIT's Quarterly Earnings
Conference Call at 12:00 PM EST on Friday, January 24, 2003 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 and can be accessed
telephonically until midnight on Friday, January 31, 2003 by dialing
1-800-428-6051, access code 282530.
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 mezzanine lending and
preferred equity investments. RAIT also 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 visit www.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 RAIT's 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 year
ended December 31, ended December 31,
------------------ ------------------
2002 2001 2002 2001
------------ ------------ ------------ -----------
REVENUES
Interest income $ 9,600,254 $ 7,483,110 $ 33,857,999 $23,663,358
Rental income 6,625,601 6,101,694 25,930,658 21,151,409
Fee income and other 470,767 983,400 5,037,875 5,729,042
Investment income 622,877 75,319 1,874,130 351,729
Gain on sale of loan -- 534,958 947,974 534,958
Gain on sale of property interest 2,850,645 -- 2,850,645 --
Income from loan satisfaction -- -- 3,181,670 --
------------ ------------ ------------ -----------
Total revenues 20,170,144 15,178,481 73,680,951 52,430,496
COSTS AND EXPENSES
Interest 2,510,492 2,141,820 9,298,216 10,627,540
Property operating expenses 3,592,573 3,290,596 13,018,607 12,179,242
Salaries and related benefits 762,245 958,188 2,417,995 2,711,606
General and administrative 528,970 261,145 1,695,667 1,324,003
Depreciation and amortization 1,036,982 897,707 3,710,246 3,348,347
------------ ------------ ------------ -----------
Total costs and expenses 8,431,262 7,549,456 30,140,731 30,190,738
------------ ------------ ------------ -----------
Net income before minority interest
and extraordinary gain 11,738,882 7,629,025 43,540,220 22,239,758
Minority interest (78,838) (9,294) (60,239) 40,968
Extraordinary gain -- consolidated
extinguishment of indebtedness
underlying investment in real estate -- -- -- 4,633,454
------------ ------------ ------------ -----------
Net income $ 11,660,044 $ 7,619,731 $ 43,479,981 $26,914,180
============ ============ ============ ===========
Earnings per share basic:
Net income per common share basic before minority
interest and extraordinary gain $ .63 $ .60 $ 2.50 $ 2.21
Minority interest -- -- (.01) .01
Extraordinary gain -- -- -- .46
------------ ------------ ------------ -----------
Net income per common share basic $ .63 $ .60 $ 2.49 $ 2.68
============ ============ ============ ===========
Weighted average common shares basic 18,516,998 12,663,434 17,433,260 10,039,788
============ ============ ============ ===========
Earnings per share diluted:
Net income per common share diluted before
extraordinary gain $ .63 $ .60 $ 2.48 $ 2.19
Extraordinary gain -- -- -- .46
------------ ------------ ------------ -----------
Net income per common share diluted $ .63 $ .60 $ 2.48 $ 2.65
============ ============ ============ ===========
Weighted average common shares diluted 18,629,317 12,782,039 17,538,959 10,142,931
============ ============ ============ ===========