PHILADELPHIA--(BUSINESS WIRE)--RAIT Financial Trust (NYSE: RAS) ("RAIT") announced today that the previously disclosed process to divest RAIT of a ten property industrial portfolio (the “Portfolio”) has been completed. This process began in the first quarter of 2017 and was completed in November, 2017 when the last of the two remaining industrial properties in the Portfolio were divested. As previously disclosed, RAIT recognized non-cash losses in prior periods as properties in the Portfolio were divested and their respective net carrying amounts exceeded the related non-recourse debt that was satisfied in connection with the sale of the applicable property. RAIT expected these losses would be offset by a non-cash gain in a future period when this process was completed and, as a result of the completion of this process, RAIT expects to recognize a non-cash gain of approximately $25 million during the fourth quarter of 2017.
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 “may,” “expect,” “anticipate,” “estimate,” “approximately,” “will” or other similar words or terms. Such forward-looking statements include, but are not limited to, statements regarding the results of completing the divestiture of the Portfolio, the satisfaction of the loan encumbering the Portfolio and any related gain as a result thereof. 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, final accounting determinations as to the amount of any expected gain upon such divestiture, whether RAIT will have any legal obligations on the non-recourse debt related to the Portfolio 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.