Exhibit 99
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RAIT Investment Trust Announces Threefold Increase in
First Quarter Net Income
PHILADELPHIA, PA--April 23, 2002--
First Quarter 2002 Highlights:
o Net income (before minority interest and extraordinary gain) of $9.5
million represents a 209% or threefold increase over first quarter
2001 net income of $3.1 million.
o Return on Equity grows to 18.2% (17.6% for the first quarter 2001).
o FFO of $10.3 million represents an 163% increase over, or 2.5 times,
first quarter 2001 FFO of $3.9 million.
o Per Share
o Net income per diluted share before extraordinary gain increases
27% to $0.61 (based on 15.7 million weighted average shares
outstanding-diluted) from $0.48 for the first quarter ended 2001
(based on 6.5 million weighted average shares
outstanding-diluted).
o FFO per diluted share increases 8% to $0.66 (based on 15.7
million weighted average shares outstanding-diluted) from $0.61
for the first quarter ended 2001 (based on 6.5 million weighted
average shares outstanding-diluted).
RAIT Investment Trust (RAIT) (NYSE: RAS), a company that provides specialized
financing to the real estate market, reported funds from operations ("FFO") of
$10.3 million, or $0.66 per share basic and diluted, for the first quarter ended
March 31, 2002 (based on 15.6 million weighted average shares- basic, 15.7
million weighted average shares-diluted) as compared to $3.9 million, or $0.61
per share (basic and diluted), for the first quarter ended March 31, 2001 (based
on 6.4 million weighted average shares-basic, 6.5 million weighted average
shares-diluted). RAIT's return on equity (FFO / average shareholders' equity)
for the quarter ended March 31, 2002 was 18.2%. This is the eleventh consecutive
quarter that the Company's return on equity has exceeded 17.0%.
Net income before minority interest and extraordinary gain for the first quarter
ended March 31, 2002 was $9.5 million ($0.61 per share, basic and diluted, based
on 15.6 million weighted average shares-basic and 15.7 million weighted average
shares-diluted), after depreciation and amortization of $855,000, as compared to
$3.1 million ($0.48 per share, basic and diluted, based on 6.4 million weighted
average shares outstanding-basic and 6.5 million weighted average
shares-diluted), after depreciation and amortization of $840,000 for the first
quarter ended March 31, 2001.
During the first quarter ended March 31, 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 ($0.46 per share basic and
diluted).
As of March 31, 2002, total assets were $371.2 million (including $234.3 million
of investments in real estate loans and $112.2 million of investments in real
estate). As of December 31, 2001, 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). Total equity was $241.2 million at March 31, 2002
and $211.0 million at December 31, 2001.
On March 15, 2002, RAIT declared a first quarter dividend of $0.58 per share
(paid on April 16, 2002 to shareholders of record on April 3, 2002). This
dividend represents an annualized yield of 11.5% based on the March 28, 2002
stock price of $20.15. Including this first quarter dividend, RAIT has paid a
regular quarterly cash dividend of at least $0.51 per share during each of the
past fifteen quarters.
NOTE: You may listen to the LIVE Webcast of our Quarterly Earnings Conference
Call at 8:30 AM EDT on Thursday, April 25, 2002 by clicking on the Webcast link
on our homepage at www.raitinvestmenttrust.com . If you would like to be added
to our distribution list, please email info@raitinvestmenttrust.com.
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 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 risk-adjusted returns on equity to shareholders by providing tailored
and flexible financing products to its customers. For more information visit
www.raitinvestmenttrust.com or call 215-861-7900.
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 2001 Form 10K filed with the Securities and Exchange Commission.
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,
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REVENUES 2002 2001
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Mortgage interest income $ 8,278,344 $ 4,843,825
Rental income 6,663,244 4,782,392
Fee income and other 347,615 677,700
Investment income 96,552 75,321
Gain on sale of loan 947,974 -
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Total revenues 16,333,729 10,379,238
COSTS AND EXPENSES
Interest 2,146,602 3,150,075
Property operating expenses 2,879,244 2,323,676
Salaries and benefits 638,993 671,872
General and administrative 314,144 323,389
Depreciation and amortization 854,520 840,250
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Total costs and expenses 6,833,503 7,309,262
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Net income before minority interest
and extraordinary gain $ 9,500,226 $ 3,069,976
Minority interest (70,983) (236)
Extraordinary gain--consolidated
extinguishment of indebtedness
underlying investment in real estate - 4,633,454
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Net Income $ 9,429,243 $ 7,703,194
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Earnings per share-basic:
Net income per common share before
minority interest and extraordinary gain $ .61 $ .48
Minority interest - -
Extraordinary gain - .72
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Net income $ .61 $ 1.20
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Weighted average common shares-basic 15,556,698 6,403,575
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Earnings per share-diluted:
Net income per common share before
minority interest and extraordinary gain $ .61 $ .48
Minority interest (.01) -
Extraordinary gain - .71
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Net income $ .60 $ 1.19
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Weighted average common shares-diluted 15,696,777 6,462,147
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Funds from operations (1) 10,283,763 3,909,990
Funds from operations per common share-basic
$ .66 $ .61
Funds from operations per common share-diluted
$ .66 $ .61
(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.