PHILADELPHIA--(BUSINESS WIRE)--RAIT Financial Trust (NYSE: RAS) (“RAIT”) announced that on November 1, 2017, RAIT’s Board of Trustees (“the Board”) declared a fourth quarter 2017 cash dividend of $0.484375 per share on RAIT’s 7.75% Series A Cumulative Redeemable Preferred Shares, $0.5234375 per share on RAIT’s 8.375% Series B Cumulative Redeemable Preferred Shares and $0.5546875 per share on RAIT’s 8.875% Series C Cumulative Redeemable Preferred Shares. The dividends will be paid on January 2, 2018 to holders of record on December 1, 2017.
RAIT also announced that on November 1, 2017, the Board determined to suspend the dividend on RAIT’s common shares. RAIT expects that its distributions to its common and preferred shareholders in 2017 will be at least equal to the minimum amounts required in order for RAIT to remain a real estate investment trust (“REIT”) for federal tax purposes. The Board expects to consider whether to reinstate a dividend on RAIT’s common shares after RAIT completes its previously announced strategic transformation and exploration of strategic and financial alternatives. The Board expects to continue to review and determine the dividends on RAIT’s preferred shares on a quarterly basis.
Michael Malter, RAIT’s Chairman of the Board said, “The decision to suspend the quarterly common dividend was a difficult one given the importance of the dividend to our shareholders. However, the Board felt it was prudent to suspend the common dividend at this time, enhancing RAIT’s financial flexibility, a benefit to all stakeholders, as RAIT continues making progress in its strategic transformation and explores strategic and financial alternatives.”
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.
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 suspension of the dividend on RAIT’s common shares and the Board’s future consideration of the declaration of dividends on RAIT’s preferred and common shares, RAIT’s expectations as to its 2017 REIT taxable income and RAIT’s ability to remain a REIT for federal tax purposes, RAIT’s review of its strategic and financial alternatives, 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 and RAIT’s actions taken or contemplated to enhance its long-term prospects and create value for its shareholders. 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, whether and, if so, when, the Board would determine to resume declaring a dividend on RAIT’s common shares and whether the Board will continue to declare a dividend on RAIT’s preferred shares, whether the suspension of the common dividend will enhance RAIT’s financial flexibility or benefit all of RAIT’s stakeholders, whether RAIT’s actual 2017 REIT taxable income will be consistent with RAIT’s expectations and whether RAIT will continue to satisfy all REIT federal tax requirements, RAIT’s ability to implement any new strategic and financial alternatives or whether RAIT will continue to progress with its previously announced transition to a more focused, cost-efficient and lower leverage business; 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.