RAIT INVESTMENT TRUST ANNOUNCES SECOND QUARTER 2003 RESULTS
PHILADELPHIA, PA -- JULY 24, 2003 --
SECOND QUARTER HIGHLIGHTS
- - Revenues of $35.9 million for the six months ended June 30, 2003
represents a 5% increase over the six months ended June 30, 2002
revenues of $34.2 million
- - Net income of $20.8 million for the six months ended June 30, 2003
represents a 2% increase over the six months ended June 30, 2002 net
income of $20.4 million.
RAIT Investment Trust (RAIT) (NYSE: RAS), a company that provides specialized
financing to the mid-sized commercial real estate market, reported that revenues
for the six months ended June 30, 2003 were $35.9 million as compared to $34.2
million for the six months ended June 30, 2002. Net income for the six months
ended June 30, 2003 was $20.8 million, or $1.01 per common share diluted based
on 20.6 million weighted average common shares diluted, as compared to $20.4
million, or $1.22 per common share diluted based on 16.7 million weighted
average common shares diluted, for the six months ended June 30, 2002.
Revenues for the three months ended June 30, 2003 were $15.3 million as compared
to $18.1 million for the three months ended June 30, 2002. Net income for the
three months ended June 30, 2003 was $8.4 million, or $0.40 per common share
diluted based on 21.0 million weighted average common shares diluted, as
compared to $11.0 million, or $0.62 per common share diluted based on 17.8
million weighted average common shares diluted, for the three months ended June
30, 2002.
BALANCE SHEET SUMMARY
As of June 30, 2003, RAIT's total assets were $483.2 million (including $311.2
million of investments in real estate loans and $119.1 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 June 30, 2003, RAIT's indebtedness secured
by real estate was $105.0 million and there was $37.1 million 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 $313.0 million at June 30, 2003 and $277.6
million at December 31, 2002. Total common shares outstanding were 20,846,810 at
June 30, 2003 and 18,803,471 at December 31, 2002.
DIVIDEND SUMMARY
On June 19, 2003, RAIT announced a second quarter dividend of $0.62 per share
(payable on July 15, 2003 to shareholders of record on July 3, 2003). This
dividend represents an annualized yield of 10.7% based on the July 23, 2003
closing stock price of $23.23. Including this second quarter dividend, RAIT has
declared a regular quarterly cash dividend of at least $0.51 per share during
each of the past twenty quarters.
CONFERENCE CALL LIVE WEBCAST AND REPLAY INFORMATION
Interested parties can access the LIVE webcast of RAIT's Quarterly Earnings
Conference Call at 12:00 PM EST on Friday, July 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, August 1, 2003 by dialing 1-800-428-6051, access code
301087.
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 For the six months
ended June 30, ended June 30,
----------------------------- -----------------------------
2003 2002 2003 2002
----------- ------------ ----------- ------------
REVENUES
Interest income $ 8,465,137 $ 7,802,064 $17,005,794 $ 15,887,797
Rental income 5,426,080 6,466,737 12,272,415 13,129,981
Fee income and other 957,428 3,318,310 1,489,608 3,656,353
Investment income 448,684 463,541 2,805,555 569,665
Gain on sale of loan -- -- -- 947,974
Gain on sale of property interest -- -- 2,372,220 --
----------- ------------ ----------- ------------
Total revenues 15,297,329 18,050,652 35,945,592 34,191,770
COSTS AND EXPENSES
Interest 1,622,050 2,070,940 3,840,046 4,217,542
Property operating expenses 2,787,652 3,255,602 6,588,996 6,134,846
Salaries and related benefits 908,767 456,702 1,612,953 904,181
General and administrative 818,322 361,006 1,368,066 674,052
Depreciation and amortization 823,493 910,283 1,800,872 1,764,803
----------- ------------ ----------- ------------
Total costs and expenses 6,960,284 7,054,533 15,210,933 13,695,424
----------- ------------ ----------- ------------
Net income before minority interest 8,337,045 10,996,119 20,734,659 20,496,346
Minority interest 32,994 (38,971) 56,706 (109,954)
----------- ------------ ----------- ------------
Net income $ 8,370,039 $ 10,957,148 $20,791,365 $ 20,386,392
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Net income per common share basic $ .40 $ .62 $ 1.02 $ 1.23
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Weighted average common shares basic 20,845,820 17,645,936 20,410,801 16,607,088
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Net income per common share diluted $ .40 $ .62 $ 1.01 $ 1.22
=========== ============ =========== ============
Weighted average common shares diluted 21,012,970 17,813,109 20,563,296 16,739,252
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