RAIT Financial Trust (NYSE: RAS) ("RAIT") today announced that it has completed sales of 6 properties for an aggregate purchase price of approximately $88.4 million and divested an additional 7 properties with an aggregate net carrying value of approximately $40.2 million during the period beginning July 1, 2017 through October 16, 2017, totaling $128.6 million. RAIT expects these transactions to result in a reduction of related indebtedness by approximately $110.4 million. These sales and divestitures align with RAIT's previously announced strategy of transforming RAIT into a more focused and cost-efficient business concentrated on its core commercial real estate lending activities. Since the beginning of 2017 through October 16, 2017, consistent with this strategy, RAIT has sold or divested approximately $339.8 million of its property portfolio and reduced related indebtedness by approximately $275.9 million. Since January 1, 2016 through October 16, 2017, RAIT has sold or divested $677.7 million of its property portfolio and reduced related indebtedness by $571.8 million.

The properties sold by RAIT in this period were a multi-family property located in Jackson, Mississippi, the last remaining parcel of a two-parcel retail property in Nashville, Tennessee, two office properties in Woodlawn, Maryland and Scottsdale, Arizona and two parcels of land in Daytona Beach, Florida. RAIT used approximately $68.5 million of these gross proceeds to repay related indebtedness, pay transaction costs and for other items. RAIT received aggregate net cash proceeds of approximately $8.1 million related to these sales.

The properties divested by RAIT in this period were five industrial properties in Fort Wayne, Indiana, Wichita, Kansas, Palm Bay, Florida and Columbus, Ohio and two office properties in Fort Wayne and South Bend, Indiana. These properties had a net carrying value of approximately $40.2 million. RAIT derecognized these net assets and extinguished related debt of $37.3 million.

In addition, as previously disclosed, RAIT expects to recognize a $5.5 million gain in RAIT's fourth quarter 2017 financial results related to the purchase by RAIT for $20.5 million of common share purchase warrants (the "Warrants") and common share appreciation rights (the "SARs") issued by RAIT to an investor pursuant to the exercise of a put right by that investor. RAIT had classified both Warrants and SARs as liabilities and included their combined fair value in RAIT's liabilities. This gain would represent the excess of this fair value over the purchase price.

About RAIT Financial Trust

RAIT Financial Trust is an internally-managed real estate investment trust focused on providing debt financing options to owners of commercial real estate throughout the United States. For more information, please visit www.rait.com or call Investor Relations at 215.207.2100.

Forward-Looking Statements

This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "strategy," "transform," "plan," "should," "expect," "intend," "anticipate," "estimate," "believe," "seek," or other similar words or terms. Such forward-looking statements include, but are not limited to, statements regarding RAIT's initiatives to further simplify its business to focus on its commercial real estate lending business, reduce costs, reduce indebtedness and enhance value and returns for shareholders, RAIT's actions taken or contemplated to enhance its long-term prospects and create value for its shareholders and RAIT's expectations as to the financial impact of the transactions described. Such forward-looking statements are based upon RAIT's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. Such statements are subject to known and unknown risks, uncertainties and contingencies that may cause actual results to differ materially from the expectations, intentions, beliefs, plans, estimates or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to, RAIT's ability to continue to sell properties and satisfy the related debt, RAIT's ability to transition to a more focused, cost-efficient and lower leverage business, final accounting determinations on gains or losses realized in the event properties are sold for prices that differ from their carrying value or if property valuations are adjusted in the process of revaluating properties when they are characterized as held for sale, final accounting determinations on the amount of gain recognized from the repurchase of the Warrants and SARs and what such gain will relate to and other factors described in RAIT's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and in other filings with the SEC. RAIT undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as may be required by law.

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