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RAIT Financial Trust (“RAIT”) (NYSE: RAS) today announced first quarter 2014 financial results.
RAIT introduced a new non-GAAP financial measure – Cash Available for Distribution (“CAD”). CAD per share increased 22.2% to $0.22 for the quarter ended March 31, 2014 from $0.18 for the quarter ended March 31, 2013.
Total revenues grew 15.4% to $67.3 million for the quarter ended March 31, 2014 from $58.3 million for the quarter ended March 31, 2013.
On March 18, 2014, RAIT declared a first quarter 2014 common dividend of $0.17 per share, representing a 42% increase from the first quarter 2013 common dividend of $0.12 per common share. The first quarter common dividend record date was April 4, 2014 and was paid on April 30, 2014.
CRE Loan Portfolio
Investments in mortgages and loans increased 11% to $1.24 billion at March 31, 2014 from $1.12 billion at December 31, 2013
RAIT originated $224.5 million of loans during the quarter ended March 31, 2014 consisting of $175.6 million bridge loans, $45.9 million conduit loans and $3.0 million mezzanine loans. RAIT increased bridge loan originations 35% to $175.6 million during the quarter ended March 31, 2014 as compared to $130.3 million of bridge loan production for the entire year ended December 31, 2013.
CRE Property Portfolio
Average effective rent per unit per month in RAIT’s multifamily portfolio increased 4.2% to $767 for the quarter ended March 31, 2014 from $736 for the quarter ended March 31, 2013.
As of March 31 2014, RAIT’s investments in real estate increased 20% to $1.2 billion from $1.0 billion at December 31, 2013.
Rental income increased 29% to $35.2 million during the quarter ended March 31, 2014 from $27.2 million for the quarter ended March 31, 2013 driven largely by the acquisition of 14 properties totaling $7.4 million over the period.
RAIT expanded its third party property management platform and now owns a retail focused property manager named Urban Retail Properties (“Urban”). Urban managed 62 properties representing 16.7 million square feet in 26 states as of March 31, 2014.
In April 2014, RAIT completed a $196 million non-recourse, floating-rate CMBS transaction collateralized by first mortgage bridge loans and participations. A RAIT subsidiary sold $155.9 million of investment grade bonds representing an advance rate of approximately 79.5% and a weighted average coupon of LIBOR plus 1.79%. RAIT retained $40.2 million of the unrated bonds and equity.
In January 2014, RAIT issued 10,000,000 common shares in an underwritten public offering. The public offering price was $8.52 per share and RAIT received $82.6 million of net proceeds. On April 14, 2014, RAIT issued $60 million aggregate principal amount of its 7.625% Senior Notes due 2024 (NYSE:RFT) in an underwritten public offering. RAIT received approximately $57.5 million of net proceeds.
Scott Schaeffer, RAIT’s Chairman and CEO, said, “During the first quarter we made significant progress towards our goal of allocating capital to our on balance sheet, bridge lending business. We ended the quarter funding $175.6 million of bridge loans, exceeding our entire 2013 bridge loan production. We raised capital in January and April to support the anticipated growth of the bridge lending business. Also, we grew the property portfolio through acquisitions and increasing rents which led to a 29% increase in rental income since March 31, 2013 and net operating income increasing 34% over the same period.”