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| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| Independence Realty Trust Inc | NYSE:IRT | NYSE | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| -0.08 | -0.38% | 20.86 | 20.97 | 20.70 | 20.97 | 1,910,808 | 23:22:29 |
From Mar 2020 to Mar 2025
RAIT Financial Trust (“RAIT”) (NYSE: RAS) today announced first quarter 2016 financial results. All per share results are reported on a diluted basis.
Highlights
Scott Schaeffer, RAIT’s Chairman and CEO, said, “During the quarter the portfolio delivered $0.14 of CAD which more than covered the $0.09 per share quarterly common dividend. We originated approximately $40 million of primarily floating-rate loans during the quarter as we are ramping towards our sixth floating-rate securitization later this year. Our property portfolio, particularly our multi-family portfolio, is performing well and we are seeing positive momentum in our office portfolio.”
Commercial Real Estate (“CRE”) Business
CRE Property Portfolio & Property Sales
Asset & Property Management
Dividends
2016 CAD Guidance
As stated above, we’ve changed our definition of CAD to exclude real estate gains. We are re-affirming our 2016 CAD estimate range previously described as CAD, without real estate gains, of $0.50 - $0.60 per common share. A reconciliation of RAIT's projected net income (loss) allocable to common shares to its projected CAD, a non-GAAP financial measure, is included below. The assumptions underlying this estimate are also included below.
2016 Annualized ProjectedCAD(1)(2)
Net income (loss) available to common shares $(53,560) - $(44,460) Adjustments: Depreciation and amortization 88,579 - 88,579 Real estate (gains) losses (34,258) - (34,258) Other items, including deferred fees, stock compensation, and noncontrolling interest allocation of certain adjustments 45,012 - 45,012 CAD $45,773 - $54,873 CAD per share $0.50 - $0.60 (1) We have changed our calculation of CAD to exclude the impact from real estate property sales. See Schedule VI for our definition of CAD and the rationale for this change. (2) Constitutes forward-looking information. Actual full 2016 CAD could vary significantly from the projections presented. CAD may fluctuate based upon a variety of factors, including those described in “Forward Looking Statements” below. Our estimate is based on the following key operating assumptions during 2016: - Gross loan originations of $200 million to $500 million. - No CMBS gain on sale profits. - Loan repayments totaling $200 million.Selected Financial Information
See Schedule I to this Release for selected financial information for RAIT.
Non-GAAP Financial Measures and Definitions
RAIT discloses the following non-GAAP financial measures in this release: funds from operations (“FFO”), CAD and net operating income (“NOI”). A reconciliation of RAIT’s reported net income (loss) allocable to common shares to its FFO and CAD is included as Schedule IV to this release. A reconciliation of RAIT’s NOI to its reported net income (loss) is included as Schedule V to this release. See Schedule VI to this release for management’s respective definitions and rationales for the usefulness of each of these non-GAAP financial measures and other definitions used in this release.
Supplemental Information
RAIT produces supplemental information that includes details regarding the performance of the portfolio, financial information, non-GAAP financial measures and other useful information for investors. The supplemental also contains deconsolidating financial information. The supplemental information is available via the Company's website, www.rait.com, through the "Investor Relations" section.
Conference Call
All interested parties can listen to the live conference call webcast at 10:00 AM ET on Monday, May 9, 2016 from the home page of the RAIT Financial Trust website at www.rait.com or by dialing 877.787.4169, access code 91318485. For those who are not available to listen to the live call, the replay will be available shortly following the live call on RAIT’s website and telephonically until Monday, May 16, 2016, by dialing 855.859.2056, access code 91318485.
About RAIT Financial Trust
RAIT Financial Trust is an internally-managed real estate investment trust that provides debt financing options to owners of commercial real estate and invests directly into commercial real estate properties located throughout the United States. In addition, RAIT is an asset and property manager of real estate-related assets. For more information, please visit www.rait.com or call Investor Relations at 215.243.9000.
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 “guidance,” "may," “plan”, "will," "should," "expect," "intend," "anticipate," "estimate," "believe," “seek,” “opportunities” or other similar words or terms. Because such statements include risks, uncertainties and contingencies, actual results may differ materially from the expectations, intentions, beliefs, plans or predictions of the future expressed or implied by such forward-looking statements. These risks, uncertainties and contingencies include, but are not limited to: overall conditions in commercial real estate and the economy generally; whether the timing and amount of investments, repayments, any capital raised and our use of leverage will vary from those underlying our assumptions; changes in the expected yield of our investments; changes in financial markets and interest rates, or to the business or financial condition of RAIT or its business; whether RAIT will be able to originate loans in the amounts and generating the returns assumed; the availability of financing and capital, including through the capital and securitization markets; whether RAIT will be able to complete sales of RAIT owned properties, whether identified for sale or under contract, in the amounts and generating the gains assumed; and those disclosed in RAIT’s filings with the Securities and Exchange Commission. 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.
Schedule I
RAIT Financial Trust
Selected Financial Information
(Dollars in thousands, except share and per share amounts)
(unaudited)
($'s in 000's) For the Three Months EndedMarch 31,2016
December 31,2015
September 30,2015
June 30,2015
March 31,2015
OPERATING DATA:Lending:
Investments in loans $ 1,612,632 $ 1,623,583 $ 1,588,097 $ 1,506,542 $ 1,504,456 Gross loan production $ 40,475 $ 321,837 $ 237,674 $ 218,613 $ 218,770 CMBS income $ 171 $ 1,135 $ 434 $ 3,681 $ 1,996 CMBS loans sold $ - $ 85,430 $ 116,251 $ 130,401 $ 92,897 Average CMBS Gain on Sale (points) - 1.3 0.4 2.8 2.1Real estate portfolio: (a)
Gross real estate investments $ 2,487,634 $ 2,517,645 $ 2,448,331 $ 1,783,888 $ 1,833,978 Property income $ 68,722 $ 69,464 $ 55,459 $ 55,534 $ 53,274 Operating expenses $ 30,706 $ 31,476 $ 25,832 $ 26,416 $ 25,277 Net operating income $ 38,016 $ 37,988 $ 29,627 $ 29,118 $ 27,997 NOI margin 55.3 % 54.7 % 53.4 % 52.4 % 52.6 % EARNINGS & DIVIDENDS: Earnings per Share -- diluted $ (0.20 ) $ 0.02 $ (0.07 ) $ 0.22 $ (0.09 ) FFO per share $ (0.07 ) $ (0.08 ) $ (0.05 ) $ 0.15 $ 0.05 CAD per share $ 0.14 $ 0.19 $ 0.20 $ 0.21 $ 0.18 Dividends per share $ 0.09 $ 0.09 $ 0.18 $ 0.18 $ 0.18 CAD payout ratio 64.3 % 47.8 % 66.0 % 48.8 % 96.7 % CAPITALIZATION AND COVERAGE RATIOS: Recourse/Non-Recourse Debt: Recourse $ 509,466 $ 484,764 $ 576,557 $ 486,326 $ 567,301 Non-Recourse (a) 2,733,169 2,843,318 2,593,618 2,150,085 2,094,422 Total Recourse/Non-Recourse debt 3,242,635 3,328,082 3,170,175 2,636,411 2,661,723 Preferred shares (par) 332,187 332,187 332,187 331,733 317,603 Common shares (market capitalization) 288,474 247,284 450,854 506,493 568,594 Noncontrolling interests, at carrying value (a) 331,328 340,213 346,063 204,034 208,894 Total capitalization $ 4,194,624 $ 4,247,766 $ 4,299,279 $ 3,678,671 $ 3,756,814 Total Liabilities/Total Gross Assets 77.7 % 77.7 % 77.0 % 77.4 % 77.9 % Total Liabilities + Preferred/Total Gross Assets 85.0 % 84.9 % 84.5 % 86.3 % 86.4 % Interest Coverage 1.85x 1.94x 1.81x 2.12x 1.93x Interest + Preferred Coverage 1.49x 1.55x 1.42x 1.63x 1.50x OTHER KEY BENCHMARKS: Total Assets Under Management (AUM) $ 5,854,824 $ 5,923,601 $ 5,820,702 $ 4,764,259 $ 4,607,413 Total Gross Assets $ 4,527,191 $ 4,614,254 $ 4,445,411 $ 3,729,031 $ 3,716,069(a) Includes Independence Realty Trust.
Schedule II
RAIT Financial Trust
Consolidated Balance Sheets
(Dollars in thousands, except share and per share amounts)
(unaudited)
As ofMarch 31,2016
As ofDecember 31,2015
Assets Investment in mortgages and loans: Commercial mortgages, mezzanine loans, and preferred equity interests $ 1,612,632 $ 1,623,583 Allowance for loan losses (18,165 ) (17,097 ) Total investment in mortgages and loans, at amortized cost 1,594,467 1,606,486 Investments in real estate, net of accumulated depreciation of $209,421 and $198,326, respectively 2,278,213 2,319,319 Cash and cash equivalents 94,569 125,886 Restricted cash 200,166 213,012 Accrued interest receivable 49,987 47,343 Other assets 73,670 71,207 Intangible assets, net of accumulated amortization of $32,228 and $26,307, respectively 26,698 32,675 Total assets $ 4,317,770 $ 4,415,928 Liabilities and Equity Indebtedness, net of unamortized discount and deferred financing costs of $56,998 and $61,941, respectively $ 3,267,230 $ 3,328,082 Accrued interest payable 13,160 9,834 Accounts payable and accrued expenses 29,989 39,672 Derivative liabilities 4,181 4,727 Deferred taxes, borrowers’ escrows and other liabilities 203,612 203,477 Total liabilities 3,518,172 3,585,792 Series D preferred stock 87,085 85,395 Equity: Shareholders’ equity: 7.75% Series A Preferred shares 53 53 8.375% Series B Preferred shares 23 23 8.875% Series C Preferred shares 17 17 Common shares, $0.03 par value per share 2,756 2,748 Additional paid in capital 2,087,913 2,087,137 Accumulated other comprehensive income (loss) (2,434 ) (4,699 ) Retained earnings (deficit) (1,707,143 ) (1,680,751 ) Total shareholders’ equity 381,185 404,528 Noncontrolling interests 331,328 340,213 Total equity 712,513 744,741 Total liabilities and equity $ 4,317,770 $ 4,415,928Schedule III
RAIT Financial Trust
Consolidated Statements of Operations
(Dollars in thousands, except share and per share amounts)
(unaudited)
Three-Months EndedMarch 31,
2016 2015 Revenue: Net interest margin Investment interest income $ 25,802 $ 23,248 Investment interest expense (7,896 ) (6,914 ) Net interest margin 17,906 16,334 Property income 68,722 53,274 Fee and other income 2,852 5,594 Total revenue 89,480 75,202 Expenses: Interest expense 27,006 19,683 Real estate operating expenses 30,706 25,277 Compensation expenses 7,075 6,108 General and administrative expenses 5,063 5,400 Acquisition and integration expenses 269 957 Provision for loan losses 1,325 2,000 Depreciation and amortization expense 24,276 19,024 Total expenses 95,720 78,449 Operating Income (6,240 ) (3,247 ) Other income (expense) 61 (395 ) Gains (loss) on assets 2,258 — Asset impairment (3,922 ) — Gains (losses) on IRT merger with TSRE 91 — Gain (loss) on debt extinguishment 344 — Change in fair value of financial instruments (4,088 ) 4,490 Income (loss) before taxes (11,496 ) 848 Income tax benefit (provision) 993 (582 ) Net income (loss) (10,503 ) 266 Income allocated to preferred shares (8,520 ) (7,859 ) (Income) loss allocated to noncontrolling interests 1,179 496 Net income (loss) available to common shares $ (17,844 ) $ (7,097 ) EPS - BASIC $ (0.20 ) $ (0.09 ) EPS - DILUTED $ (0.20 ) $ (0.09 ) Weighted-average shares outstanding - Basic 91,018,160 82,081,024 Weighted-average shares outstanding - Diluted 91,018,160 82,081,024Schedule IV
RAIT Financial Trust
Reconciliation of Net income (loss) Allocable to Common Shares and
Cash Available for Distribution and Funds From Operations (“FFO”)
(Dollars in thousands, except share and per share amounts)
(unaudited)
Three-Months EndedMarch 31,
2016 2015 CASH AVAILABLE FOR DISTRIBUTION (CAD): Net Income (loss) available to common shares $ (17,844 ) $ (7,097 ) Add-Back (Deduct): Depreciation and amortization expense 24,276 19,024 Change in fair value of financial instruments 4,088 (4,490 ) (Gains) losses on assets (2,258 ) — (Gains) losses on IRT merger with TSRE (91 ) — (Gains) losses on debt extinguishment (344 ) — Straight-line rental adjustments (418 ) 2 Equity based compensation 1,273 1,348 Acquisition and integration expenses 269 957 Origination fees and other deferred items 6,714 7,426 Provision for losses 1,325 2,000 Asset impairment 3,922 — Noncontrolling interest effect of certain adjustments (8,033 ) (4,713 ) CAD $ 12,879 $ 14,457 CAD per share $ 0.14 $ 0.18 Weighted-average shares outstanding 91,018,160 82,081,024 FUNDS FROM OPERATIONS (FFO): Net Income (loss) available to common shares $ (17,844 ) $ (7,097 ) Add-Back (Deduct): Depreciation 11,374 11,205 (Gains) Losses on the sale of real estate (183 ) — FFO $ (6,653 ) $ 4,108 FFO per share--basic $ (0.07 ) $ 0.05 Weighted-average shares outstanding 91,018,160 82,081,024Schedule V
RAIT Financial Trust
Reconciliation of NOI to Net income (loss)
(Dollars in thousands, except share and per share amounts)
(unaudited)
Three-Months EndedMarch 31,
2016 2015 Same store property net operating income $ 24,464 $ 23,270 Non same store property net operating income 13,552 4,727 Net interest margin 17,906 16,334 Fee and other income 2,852 5,594 Interest expense (27,006 ) (19,683 ) Compensation expenses (7,075 ) (6,108 ) General and administrative expenses (5,063 ) (5,400 ) Acquisition and integration expenses (269 ) (957 ) Provision for loan losses (1,325 ) (2,000 ) Depreciation and amortization expense (24,276 ) (19,024 ) Other income (expense) 61 (395 ) Gains (loss) on assets 2,258 - Asset impairment (3,922 ) - Gains (losses) on IRT merger with TSRE 91 - Gain (loss) on debt extinguishment 344 - Change in fair value of financial instruments (4,088 ) 4,490 Income tax benefit (provision) 993 (582 ) Net Income (loss) $ (10,503 ) $ 266Schedule VI
RAIT Financial Trust DefinitionsAssets Under Management
Assets under management, or AUM, is an operating measure representing the total assets that we own or are managing for third parties. While not all AUM generates fee income, it is an important operating measure to gauge our asset growth, volume of originations, size and scale of our operations and our performance. AUM includes our total investment portfolio, assets associated with unconsolidated securitizations for which we derive asset management fees and real estate properties we manage on behalf of third parties.
Cash Available for Distribution
Cash available for distribution, or CAD, is a non-GAAP financial measure. We believe that CAD provides investors and management with a meaningful indicator of operating performance. Management also uses CAD, among other measures, to evaluate profitability and our board of trustees considers CAD in determining our quarterly cash distributions. We also believe that CAD is useful because it adjusts for a variety of noncash items (such as depreciation and amortization, equity-based compensation, provision for loan losses and non-cash interest income and expense items). In addition, the compensation committee of our board of trustees used CAD as a metric in establishing quantitative performance based awards for certain of our executive officers beginning in 2015. Furthermore, in measuring our performance in periods prior to 2015, CAD removes the effect of our previous consolidation of the legacy securitizations, T8 and T9, which we deconsolidated as part of our exit of the Taberna business in December 2014.
We calculate CAD by subtracting from or adding to net income (loss) attributable to common shareholders the following items: depreciation and amortization items including depreciation and amortization, straight-line rental income or expense, amortization of in place leases, amortization of deferred financing costs, amortization of discount on financings and equity-based compensation; changes in the fair value of our financial instruments; realized gains (losses) on assets; provision for loan losses; asset impairments; acquisition gains or losses and transaction costs; certain fee income eliminated in consolidation that is attributable to third parties; and one-time events pursuant to changes in U.S. GAAP and certain other non-routine items. In the quarter ended March 31, 2016, we changed our method of calculating CAD to exclude the impact of real property sales from CAD. We made this change in response to investor feedback to focus CAD on our core business activities. In addition, we provide guidance regarding our expected CAD in future periods and this change removes variability resulting from the ultimate timing of future property sales.
CAD should not be considered as an alternative to net income (loss) or cash generated from operating activities, determined in accordance with U.S. GAAP, as an indicator of operating performance. For example, CAD does not adjust for the accrual of income and expenses that may not be received or paid in cash during the associated periods. Please refer to our consolidated financial statements prepared in accordance with U.S. GAAP in Part I, Item 1. In addition, our methodology for calculating CAD may differ from the methodologies used by other comparable companies, including other REITs, when calculating the same or similar supplemental financial measures and may not be comparable with these companies.
Funds from Operations
We believe that funds from operations, or FFO, which is a non-GAAP measure, is an additional appropriate measure of the operating performance of a REIT. We compute FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts, or NAREIT, as net income or loss allocated to common shares (computed in accordance with GAAP), excluding real estate-related depreciation and amortization expense, gains or losses on sales of real estate and the cumulative effect of changes in accounting principles. Our management utilizes FFO as a measure of our operating performance. FFO is not an equivalent to net income or cash generated from operating activities determined in accordance with U.S. GAAP. Furthermore, FFO does not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. FFO should not be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flow from operating activities as a measure of our liquidity.
Net Operating Income
Net Operating Income (“NOI”), a non-GAAP measure, is a useful measure of the operating performance of its real estate portfolio. NOI is defined as total property revenue less total property operating expenses, excluding depreciation and amortization and interest expense. Other REITs may use different methodologies for calculating NOI, and accordingly, our NOI may not be comparable to other REITs. We believe that this measure provides an operating perspective not immediately apparent from GAAP operating income or net income. We use NOI to evaluate our real estate portfolio performance on a same store and non-same store basis because NOI measures the core operations of property performance by excluding corporate level expenses and other items not related to property operating performance and captures trends in rental rates and property operating expenses.
Same Store Properties and Same Store Portfolio
RAIT reviews its same store properties or portfolio at the beginning of each calendar year. Properties are added into the same store portfolio if they were owned at the beginning of the previous year. Properties that have been sold are excluded from the same store portfolio. Properties included in the redevelopment portfolio are not part of the same store portfolio.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160509005761/en/
RAIT Financial TrustAndres Viroslav, 215-207-2100aviroslav@rait.com
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