RAIT INVESTMENT TRUST ANNOUNCES FIRST QUARTER 2003 NET INCOME UP 32% OVER 2002
PHILADELPHIA, PA -- APRIL 24, 2003 --
FIRST QUARTER HIGHLIGHTS
- Net income of $12.4 million for the three months ended March 31,
2003 represents a 32% increase over the three months ended March 31,
2002 net income of $9.4 million.
- Net income per common share diluted for the three months ended March
31, 2003 increased 3.3% to $0.62 based on 20.1 million weighted
average common shares diluted from $0.60 for the three months ended
March 31, 2002 based on 15.7 million weighted average common shares
diluted.
- Revenues of $20.6 million for the three months ended March 31, 2003
represents a 28% increase over the three months ended March 31, 2002
revenues of $16.1 million.
RAIT Investment Trust (RAIT) (NYSE: RAS), a company that provides specialized
financing to the mid-sized commercial real estate market, reported net income
for the three months ended March 31, 2003 of $12.4 million, or $0.62 per common
share diluted based on 20.1 million weighted average common shares diluted, as
compared to $9.4 million, or $0.60 per common share diluted based on 15.7
million weighted average common shares diluted, for the three months ended March
31, 2002.
Revenues for the three months ended March 31, 2003 were $20.6 million as
compared to $16.1 million for the three months ended March 31, 2002.
BALANCE SHEET SUMMARY
As of March 31, 2003, RAIT's total assets were $442.7 million (including $292.7
million of investments in real estate loans and $110.9 million of investments in
real estate). As of December 31, 2002, RAIT's total assets were $438.9 million
(including $258.9 million of investments in real estate loans and $139.5 million
of investments in real estate). As of March 31, 2003, RAIT's indebtedness
secured by real estate was $97.1 million and there was no aggregate balance
outstanding under RAIT's secured lines of credit. As of December 31, 2002 RAIT's
indebtedness secured by real estate was $114.6 million and the aggregate amount
outstanding under RAIT's secured lines of credit totaled $30.2 million. RAIT's
total shareholders' equity was $330.1 million at March 31, 2003 and $277.6
million at December 31, 2002. Total common shares outstanding were 20,839,472 at
March 31, 2003 and 18,803,471 at December 31, 2002.
DIVIDEND SUMMARY
On March 21, 2003, RAIT announced a first quarter dividend of $0.62 per share
(payable on April 16, 2003 to shareholders of record on April 3, 2003). This
dividend represents an annualized yield of 10.9% based on the April 23, 2003
closing stock price of $22.68. Including this first quarter dividend, RAIT has
declared a regular quarterly cash dividend of at least $0.51 per share during
each of the past nineteen 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, April 25, 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, May 2, 2003 by dialing 1-800-428-6051, access code 289244.
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 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. 333-103618 under the section
entitled "Risk Factors" and the Form 10-K for the year ended December 31, 2002.
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
ended March 31,
----------------------------
2003 2002
------------ -------------
REVENUES
Interest income $ 8,540,657 $ 8,091,844
Rental income 6,846,335 6,663,244
Fee income and other 532,180 338,044
Investment income 2,356,871 106,123
Gain on sale of loan -- 947,974
Gain on sale of property interest 2,372,220 --
----------- ------------
Total revenues 20,648,263 16,147,230
COSTS AND EXPENSES
Interest 2,217,996 2,146,602
Property operating expenses 3,801,344 2,879,244
Salaries and related benefits 704,186 453,591
General and administrative 549,744 313,046
Depreciation and amortization 977,379 854,520
----------- ------------
Total costs and expenses 8,250,649 6,647,003
----------- ------------
Net income before minority interest 12,397,614 9,500,227
Minority interest 40,098 (70,983)
----------- ------------
Net income $12,437,712 $ 9,429,244
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Earnings per share basic:
Net income per common share basic before
minority interest $ .62 $ .61
Minority interest -- --
----------- ------------
Net income per common share basic $ .62 $ .61
=========== ============
Weighted average common shares basic 19,970,949 15,556,698
=========== ============
Earnings per share diluted:
Net income per common share diluted before
minority interest $ .62 $ .61
Minority Interest -- (.01)
----------- ------------
Net income per common share diluted $ .62 $ .60
=========== ============
Weighted average common shares diluted 20,085,278 15,696,777
=========== ============