RAIT INVESTMENT TRUST ANNOUNCES FOURTH QUARTER AND FISCAL 2003 EARNINGS
PHILADELPHIA, PA - January 22, 2004 -
FOURTH QUARTER & FISCAL 2003 FINANCIAL HIGHLIGHTS
- - Net income of $13.5 million for the three months ended December 31, 2003
represents a 15.4% increase over net income of $11.7 million for the three
months ended December 31, 2002.
- - Revenues of $21.4 million for the three months ended December 31, 2003
represents a 5.9% increase over revenues of $20.2 million for the three months
ended December 31, 2002.
- - Net income of $47.2 million for the year ended December 31, 2003 represents an
8.5% increase over the year ended December 31, 2002 net income of $43.5 million.
- - Revenues of $78.6 million for the year ended December 31, 2003 represents a
6.6% increase over the year ended December 31, 2002 revenues of $73.7 million.
RAIT Investment Trust (RAIT) (NYSE: RAS), a company that provides specialized
financing to the mid-sized commercial real estate market, reported that net
income for the three months ended December 31, 2003 was $13.5 million, or $0.60
per common share diluted based on 22.6 million weighted average common shares
diluted, as compared to $11.7 million, or $0.63 per common share diluted based
on 18.6 million weighted average common shares diluted, for the three months
ended December 31, 2002. Revenues for the three months ended December 31, 2003
were $21.4 million as compared to $20.2 million for the three months ended
December 31, 2002.
Net income for year ended December 31, 2003 was $47.2 million, or $2.23 per
common share diluted based on 21.2 million weighted average common shares
diluted, as compared to $43.5 million, or $2.48 per common share diluted based
on 17.5 million weighted average common shares diluted, for the year ended
December 31, 2002. Revenues for the year ended December 31, 2003 were $78.6
million as compared to $73.7 million for the year ended December 31, 2002.
BALANCE SHEET SUMMARY
As of December 31, 2003, RAIT's total assets were $534.3 million (including
$345.2 million of investments in real estate loans and $137.2 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 December 31, 2003, RAIT's
indebtedness secured by real estate was $131.1 million and there was $23.9
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 $363.4
million at December 31, 2003 and $277.6 million at December 31, 2002. Total
common shares outstanding were 23,207,168 at December 31, 2003 and 18,803,471 at
December 31, 2002.
DIVIDEND SUMMARY
On December 31, 2003, RAIT paid a fourth quarter dividend of $0.60 per share to
shareholders of record on December 23, 2003. 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 twenty-two quarters.
CONFERENCE CALL LIVE WEBCAST AND REPLAY INFORMATION
Interested parties can access the LIVE webcast of RAIT's Quarterly Earnings
Conference Call at 11:00 AM EST on Friday, January 23, 2004 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 30, 2004 by dialing
1-800-428-6051, access code 330623.
ABOUT RAIT INVESTMENT TRUST
RAIT, a real estate investment trust, 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.
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", the Form 10-K for the year ended December 31, 2002 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,
--------------------------- ---------------------------
2003 2002 2003 2002
----------- ------------ ----------- ------------
REVENUES
Interest income $12,109,798 $ 9,527,623 $39,738,324 $ 33,791,479
Rental income 5,989,174 6,705,848 24,375,905 26,010,905
Fee income and other 1,569,648 470,767 4,938,158 5,037,875
Investment income 1,765,710 628,221 7,141,561 1,879,474
Gain on sale of loan -- -- -- 947,974
Gain on sale of property interest -- 2,850,645 2,372,220 2,850,645
Income from loan satisfaction -- -- -- 3,181,670
----------- ------------ ----------- ------------
Total revenues 21,434,330 20,183,104 78,566,168 73,700,023
COSTS AND EXPENSES
Interest 2,358,022 2,514,734 8,711,251 9,302,458
Property operating expenses 2,807,459 3,592,573 12,737,017 13,018,607
Salaries and related benefits 941,429 748,400 3,504,098 2,410,261
General and administrative 878,318 528,970 2,842,408 1,695,667
Depreciation and amortization 962,000 1,036,982 3,628,815 3,710,246
----------- ------------ ----------- ------------
Total costs and expenses 7,947,228 8,421,659 31,423,589 30,137,239
----------- ------------ ----------- ------------
Net income before minority interest 13,487,102 11,761,445 47,142,579 43,562,784
Minority interest 6,422 (76,717) 34,542 (58,118)
----------- ------------ ----------- ------------
Net income $13,493,524 $ 11,684,728 $47,177,121 $ 43,504,666
=========== ============ =========== ============
Net income before minority interest $ .60 $ .63 $ 2.24 $ 2.50
Minority interest -- -- -- --
----------- ------------ ----------- ------------
Net income per common share basic $ .60 $ .63 $ 2.24 $ 2.50
=========== ============ =========== ============
Weighted average common shares basic 22,479,110 18,516,998 21,043,308 17,433,260
=========== ============ =========== ============
Net income before minority interest $ .60 $ .63 $ 2.23 $ 2.48
Minority interest -- -- -- --
----------- ------------ ----------- ------------
Net income per common share diluted $ .60 $ .63 $ 2.23 $ 2.48
=========== ============ =========== ============
Weighted average common shares diluted 22,644,625 18,629,317 21,190,169 17,538,959
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