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RAIT Financial Trust Announces Third Quarter 2013 Financial Results

Stocks in this article: RAS

RAIT Financial Trust (“RAIT”) (NYSE:RAS) today announced third quarter 2013 financial results.

Highlights

  • Adjusted funds from operations (“AFFO”) increased 54% to $23.0 million for the quarter ended September 30, 2013 from $14.9 million for the quarter ended September 30, 2012.
  • AFFO per share increased 10% to $0.33 for the quarter ended September 30, 2013 from $0.30 for the quarter ended September 30, 2012.
  • Operating income increased 88% to $17.7 million for the quarter ended September 30, 2013 from $9.4 million for the quarter ended September 30, 2012.
  • Total revenues grew 20% to $62.4 million for the quarter ended September 30, 2013 from $52.2 million for the quarter ended September 30, 2012.
  • On August 16, 2013, RAIT’s subsidiary, Independence Realty Trust, Inc. (“IRT”) (NYSE MKT: IRT), an apartment property equity REIT, completed its underwritten public offering of 4,000,000 shares of IRT common stock for $8.50 per share, raising gross proceeds of $34.0 million and listed IRT common stock on the NYSE MKT. RAIT owns approximately 5.8 million shares of IRT common stock, representing 60% of IRT’s outstanding shares. RAIT consolidated IRT at September 30, 2013. A RAIT subsidiary is IRT’s external advisor and RAIT receives advisory fees from IRT and distributions on its IRT common stock.
  • RAIT originated $167.5 million of loans in the quarter ended September 30, 2013, consisting of $129.7 million conduit loans, $34.8 million bridge loans and a $3.0 million mezzanine loan, as compared to $21.6 million of loans, consisting of $15.6 million of conduit loans and a $6 million preferred equity investment, in the quarter ended September 30, 2012. RAIT originated $433.2 million of loans in the nine-month period ended September 30, 2013 and $285.2 million of loans in the nine-month period ended September 30, 2012.
  • RAIT sold $180.7 million of conduit loans during the quarter ended September 30, 2013, which generated $7.2 million of fee income. RAIT sold $301.0 million of conduit loans during the nine months ended September 30, 2013 and generated $14.9 million of fee income.
  • In July 2013, RAIT acquired a 288-unit, garden-style apartment property in Richmond, Texas for $30 million.
  • Rental income increased 11% to $29.2 million during the quarter ended September 30, 2013 from $26.4 million during the quarter ended September 30, 2012.
  • Average effective rent per unit per month in RAIT’s multifamily portfolio increased 8% to $753 for the quarter ended September 30, 2013 from $699 for the quarter ended September 30, 2012.
  • RAIT declared a third quarter 2013 common dividend of $0.15 per share, representing a 15% increase from the prior quarter's dividend of $0.13 per common share and a 67% increase from the third quarter 2012 dividend of $0.09 per common share.

Scott Schaeffer, RAIT’s Chairman and CEO, said, “The third quarter results further demonstrate the strength and depth of our commercial real estate platform. We continue to profitably deploy capital into our lending business while managing and opportunistically growing our real estate portfolio. We were also successful in listing the common shares of IRT on the NYSE MKT exchange and look forward to utilizing RAIT’s platform to grow IRT.”

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