PHILADELPHIA--(BUSINESS WIRE)--RAIT Financial Trust (NYSE: RAS) (“RAIT”) today announced that, so far this quarter, it has sold three apartment properties, in separate transactions, which generated aggregate gross proceeds of $73.5 million. RAIT sold a 288 unit property located in Houston, Texas, a 343 unit property in Miami Gardens, Florida and a 120 unit property in Las Vegas, Nevada. After using approximately $62.4 million of these gross proceeds to pay transaction costs and to repay related RAIT indebtedness, RAIT received aggregate net proceeds of approximately $11.4 million. RAIT expects to recognize an aggregate gain of approximately $11.2 million associated with these three sales in the quarter ending December 31, 2016. Year-to-date, RAIT has generated $265.3 million of aggregate gross proceeds from property sales from its property portfolio and repaid $233.3 million of related RAIT indebtedness. The property sales and related reductions in indebtedness announced today continue RAIT’s ongoing process to transition to a more focused and simpler business model, deleverage and, ultimately, position RAIT to generate enhanced returns for its shareholders.
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 215.207.2100.
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 and enhance value 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 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.