Exhibit 99.1
RAIT Announces Record Earnings
Second Quarter Highlights:
o Return on equity reaches 18.2% (eighth consecutive quarter in excess
of 17.0%).
o Revenues increase $3.1 million (31.5%) from 2nd quarter 2000.
o Net income increases $2.0 million (65.3%) from 2nd quarter 2000.
o FFO per diluted share increases to $0.62 for the second quarter 2001
(based on 9.3 million weighted average shares outstanding) from $0.61
for the first quarter 2001 (based on 6.2 million weighted average
shares outstanding.)
PHILADELPHIA--July 5, 2001--RAIT Investment Trust ("RAIT") (AMEX: RAS), a
company that provides specialized financing to the mid-sized real estate market,
reported funds from operations ("FFO") of $5.8 million or $0.62 per share (basic
and diluted) for the second quarter ended June 30, 2001 (based on 9.3 million
weighted average shares outstanding) as compared to $3.7 million or $0.60 per
share (basic and diluted) for the second quarter ended June 30, 2000 (based on
6.2 million weighted average shares outstanding). FFO was $9.7 million or $1.23
per share basic ($1.22 per share diluted) for the six months ended June 30, 2001
(based on 7.9 million weighted average shares outstanding) as compared to $7.4
million or $1.20 per share basic ($1.19 per share diluted) for the six months
ended June 30, 2000 (based on 6.2 million weighted average shares outstanding).
Revenues were $12.8 million and $9.7 million for the quarters ended June 30,
2001 and 2000, respectively and were $23.1 million and 18.5 million for the six
months ended June 30, 2001 and 2000, respectively. RAIT's return on equity (FFO
/ average shareholders' equity) for the quarter ended June 30, 2001 was 18.2%.
This is the eighth consecutive quarter that the Company's return on equity has
exceeded 17.0%.
Net income was $4.9 million ($0.53 per share basic and diluted), after
depreciation and amortization of $811,000 for the second quarter ended June 30,
2001 (based on 9.3 million weighted average shares outstanding), as compared to
$3.0 million ($0.48 per share basic and diluted), after depreciation and
amortization of $724,000 for the second quarter ended June 30, 2000 (based on
6.2 million weighted average shares outstanding). Net income was $12.6 million
($1.61 per share basic, $1.60 per share diluted) after depreciation and
amortization of $1.7 million ($0.21 per share basic and diluted) for the six
months ended June 30, 2001 (based on 7.9 million weighted average shares
outstanding) as compared to $6.1 million ($0.98 per share basic and diluted)
after depreciation and amortization of $1.3 million ($0.22 per share basic and
diluted) for the six months ended June 30, 2000 (based on 6.2 million weighted
average shares outstanding).
During the six months ended June 30, 2001 the Company 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 ($0.59 per share basic and diluted).
As of June 30, 2001, total assets were $312.9 million (including $166.7 million
of investments in real estate loans and $124.6 million of investments in real
estate). As of December 31, 2000, total assets were $270.1 million, (including
$140.7 million of investments in real estate loans and $107.9 million of
investments in real estate). Total equity was $131.6 million at June 30, 2001
and $86.7 million at December 31, 2000.
On June 11, 2001, RAIT declared a second quarter dividend of $0.52 per share
(payable on July 13, 2001 to shareholders of record on June 22, 2001). This
dividend represents an annualized yield of 13%. 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 twelve quarters.
In the second quarter of 2001, RAIT issued an additional 420,000 shares
associated with the over allotment of its first quarter offering, bringing the
total Common Shares sold during the first six months of 2001 to 3,220,000. at
$13.75 per share. After underwriting discounts and commissions, the Company
received total net proceeds of $41.8 million during the first six months of
2001. The net proceeds were used to originate or acquire commercial mortgage
loans and other interests in real estate.
RAIT Investment Trust is a publicly traded financial company focused on the
commercial real estate industry. RAIT provides structured financing to private
and corporate owners of real estate nationwide, 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 superior risk-adjusted returns on equity to shareholders by providing
tailored and flexible financing products to its customers.
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 "Risk Factors" in the Company's Registration Statement
and 2000 Form 10K filed with the Securities and Exchange Commission.
NOTE: You may download the Webcast of our Quarterly Earnings Conference Call
beginning at 11 AM EST on Friday, July 6, 2001 by clicking on the Webcast link
on our homepage at www.raitinvestmenttrust.com .
SOURCE: RAIT Investment Trust
CONTACT: Ellen F. Warren
215-886-1666
ellen@levywarren.com
Visit our web site at www.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,
------------- -------------
REVENUES 2001 2000 2001 2000
---- ---- ---- ----
Mortgage interest income $ 5,388,647 $ 4,046,307 $ 10,232,472 $ 8,707,033
Rental income 5,836,733 4,936,921 10,619,125 8,786,931
Fee income and other 1,479,660 557,317 2,157,360 699,300
Investment income 61,872 171,619 137,193 343,808
------------ ------------ ------------ ------------
Total revenues 12,766,912 9,712,164 23,146,150 18,537,072
COSTS AND EXPENSES
Interest 2,808,210 3,212,113 5,958,285 6,014,409
Property operating expenses 3,115,494 2,284,384 5,439,170 4,243,970
Salaries and benefits 560,421 278,049 1,232,293 526,344
General and administrative 435,842 172,359 759,231 274,174
Depreciation and amortization 810,834 723,508 1,651,084 1,349,809
------------ ------------ ------------ ------------
Total costs and expenses 7,730,801 6,670,413 15,040,063 12,408,706
------------ ------------ ------------ ------------
Net income before minority interest
and extraordinary gain 5,036,111 3,041,751 8,106,087 6,128,366
Minority interest (94,700) (52,704) (94,936) (52,704)
Extraordinary gain--consolidated
extinguishment of indebtedness
underlying investment in real estate -- -- 4,633,454 --
------------ ------------ ------------ ------------
Net Income $ 4,941,411 $ 2,989,047 $ 12,644,605 $ 6,075,662
============ ============ ============ ============
Earnings per share-basic:
Net income per common share before
minority interest and extraordinary gain $ .54 $ .48 $ 1.03 $ .98
Minority interest (.01) -- (.01) --
Extraordinary gain -- -- .59 --
------------ ------------ ------------ ------------
Net income $ .53 $ .48 $ 1.61 $ .98
============ ============ ============ ============
Weighted average common shares-basic 9,253,722 6,218,995 7,836,522 6,209,061
============ ============ ============ ============
Earnings per share-diluted:
Net income per common share before
minority interest and extraordinary gain $ .54 $ .48 $ 1.02 $ .98
Minority interest (.01) -- (.01) --
Extraordinary gain -- -- .59 --
------------ ------------ ------------ ------------
Net income $ .53 $ .48 $ 1.60 $ .98
============ ============ ============ ============
Weighted average common shares-diluted 9,345,657 6,225,788 7,908,400 6,215,697
============ ============ ============ ============
Funds from operations (1) $ 5,752,245 $ 3,712,555 $ 9,662,235 $ 7,425,471
============ ============ ============ ============
Funds from operations per common share-basic $ .62 $ .60 $ 1.23 $ 1.20
============ ============ ============ ============
Funds from operations per common share-diluted $ .62 $ .60 $ 1.22 $ 1.19
============ ============ ============ ============
(1) Funds from operations ("FFO") represent net income before depreciation and
amortization and exclude extraordinary gain from consolidated extinguishment of
indebtedness underlying investment in real estate.