RAIT Financial Trust Sells Four Apartment Properties for $109.2 million
January 10 2017 - 4:15PM
Business Wire
RAIT makes further progress towards focusing on its lending
operations with additional property sales and related reductions in
indebtedness
RAIT Financial Trust (NYSE: RAS) (“RAIT”) today announced that
it has sold four apartment properties in the period from December
2016 through January 6, 2017, in separate transactions, which
generated aggregate gross proceeds of $109.2 million. RAIT sold a
369 unit property located in Tampa, Florida, a 98 unit property in
Las Vegas, Nevada, a 300 unit property in Austin, Texas and a 396
unit property in Orlando, Florida. After using approximately $94.4
million of these gross proceeds to pay transaction costs and to
repay related indebtedness, RAIT received aggregate net proceeds of
approximately $14.8 million. RAIT expects to recognize an aggregate
gain of approximately $27.4 million associated with these sales.
Since the beginning of 2016, RAIT has generated $374.5 million of
aggregate gross proceeds from property sales from its property
portfolio and repaid $325.6 million of related indebtedness. The
property sales and related reductions in indebtedness announced
today continue RAIT’s ongoing process to position RAIT to generate
enhanced returns for its shareholders by focusing on its lending
business - a simpler, cost efficient and lower leverage business
model.
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
“guidance,” “may,” “plan,” “should,” “expect,” “intend,”
“anticipate,” “estimate,” “believe,” “seek,” “opportunities” 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, deleverage
and enhance value and returns for shareholders and RAIT’s actions
taken or contemplated to enhance its long-term prospects and create
value for its shareholders and gains expected on property sales.
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 repay the
related debt, RAIT’s ability to transition to a more focused and
simpler business model, final accounting determinations on gains
realized 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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RAIT Financial TrustAndres Viroslav,
215-207-2100aviroslav@rait.com