Attached files
| file | filename |
|---|---|
| 8-K - 8-K - RAIT Financial Trust | d794742d8k.htm |
 Investor Presentation
September 2014
Cira
Centre,
2929
Arch
Street,
17
th
Floor,
Philadelphia,
PA
19104
|
215.243.9000
|
rait.com
Exhibit 99.1 |
 Forward
Looking
Statements,
Non-
GAAP
Financial
Measures
&
Securities
Offering
Disclaimers
2
This
document
and
the
related
presentation
may
contain
forward-looking
statements
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act
of
1995.
These
forward-looking
statements
include,
but
are
not
limited
to,
statements
about
RAIT
Financial
Trust’s
(“RAIT”)
plans,
objectives,
expectations
and
intentions
with
respect
to
future
operations,
projected
dividends,
projected
cash
available
for
distribution
(“CAD”),
projected
net
income
,
the
agreement
in
principle
with
the
staff
of
the
Securities
and
Exchange
Commission
(the
“SEC”)
to
resolve
an
investigation
concerning
Taberna
Capital
Management,
LLC
(the
“SEC
Settlement”),
the
possible
effects
of
exiting
the
Taberna
business
and
other
statements
that
are
not
historical
facts.
Forward-looking
statements
are
sometimes
identified
by
the
words
“may”,
“will”,
“should”,
“potential”,
“predict”,
“continue”,
“project”,
“guide”,
or
other
similar
words
or
expressions.
These
forward-looking
statements
are
based
upon
the
current
beliefs
and
expectations
of
RAIT's
management
and
are
inherently
subject
to
significant
business,
economic
and
competitive
uncertainties
and
contingencies,
many
of
which
are
difficult
to
predict
and
generally
not
within
RAIT’s
control.
In
addition,
these
forward-looking
statements
are
subject
to
assumptions
with
respect
to
future
business
strategies
and
decisions
that
are
subject
to
change.
RAIT
does
not
guarantee
that
the
assumptions
underlying
such
forward
looking
statements
are
free
from
errors.
Actual
results
may
differ
materially
from
the
anticipated
results
discussed
in
these
forward-looking
statements.
The
following
factors,
among
others,
could
cause
actual
results
to
differ
materially
from
the
anticipated
results
or
other
expectations
expressed
in
the
forward-looking
statements:
whether
RAIT’s
actual
business
performance,
developments
related
to
its
business,
ability
to
access
the
capital
markets
and
economic
conditions
affecting
commercial
real
estate
will
adversely
effect
RAIT’s
ability
to
realize
the
projections
related
to
our
future
CAD
and
net
income
and
the
underlying
assumptions
or
to
pay
declared
or
expected
future
dividends,
the
risk
that
the
SEC
Settlement
will
not
be
finalized
and/or
approved
or
that
any
final
settlement
will
have
different
or
additional
material
terms
or
have
a
different
impact
on
earnings,
CAD
or
adjusted
book
value;
the
risk
that
RAIT
will
not
be
able
to
commit
to
or
complete
exiting
the
Taberna
business
or
that
the
actual
impact
on
RAIT’s
future
financial
results,
CAD
or
adjusted
book
value
of
any
such
exit
may
differ
materially
from
the
adjustments
reflected
in
the
pro
forma
financial
data
included
in
this
presentation;
and
the
risk
factors
and
other
disclosure
contained
in
filings
by
RAIT
with
the
Securities
and
Exchange
Commission
(“SEC”),
including,
without
limitation,
RAIT’s
most
recent
annual
and
quarterly
reports
filed
with
SEC.
RAIT’s
SEC
filings
are
available
on
RAIT’s
website
at
www.rait.com.
You
are
cautioned
not
to
place
undue
reliance
on
these
forward-looking
statements,
which
speak
only
as
of
the
date
of
this
presentation.
All
subsequent
written
and
oral
forward-looking
statements
attributable
to
RAIT
or
any
person
acting
on
its
behalf
are
expressly
qualified
in
their
entirety
by
the
cautionary
statements
contained
or
referred
to
in
this
document
and
the
related
presentation.
Except
to
the
extent
required
by
applicable
law
or
regulation,
RAIT
undertakes
no
obligation
to
update
these
forward-looking
statements
to
reflect
events
or
circumstances
after
the
date
of
this
presentation
or
to
reflect
the
occurrence
of
unanticipated
events.
This
document
and
the
related
presentation
may
contain
non-U.S.
generally
accepted
accounting
principles
(“GAAP”)
financial
measures.
A
reconciliation
of
these
non-GAAP
financial
measures
to
the
most
directly
comparable
GAAP
financial
measure
is
included
in
this
document
and/or
RAIT’s
most
recent
annual
and
quarterly
reports.
This
presentation
is
for
informational
purposes
only
and
does
not
constitute
an
offer
to
sell
or
a
solicitation
of
an
offer
to
buy
any
securities
of
RAIT
or
Independence
Realty
Trust,
Inc.
(“IRT”)
,
a
RAIT
consolidated
and
managed
multifamily
equity
REIT. |
 About RAIT
3
RAIT Financial Trust (“RAIT”) (NYSE: RAS), is a multi-strategy
commercial real estate company with a vertically integrated platform
focused on lending, owning and managing commercial real estate related
assets nationwide. RAIT is organized as an internally-managed
REIT with $5.3 billion of assets under management
RAIT’s IPO -
January 1998
Focus on delivering strong-risk adjusted returns
Scalable, “in-house”, commercial real estate platform with
approximately 700 employees (includes property management)
Offices
-
Philadelphia,
New
York,
Chicago,
Charlotte
RAIT originated $470.8 million of loans during the six-months ended June 30,
2014 consisting of
$288.4
million
bridge
loans,
$165.6
million
conduit
loans
and
$16.8
million
mezzanine
loans
No corporate, unsecured, recourse debt maturities until April 2016
Quarterly
common
dividend
of
$0.18
for
the
third
quarter
2014
-
a
20%
increase
over
the
third
quarter
2013.
Fourth
quarter
2014
dividend
guidance
of
at
least
$0.18
per
share
Seasoned executive team with strong real estate equity and debt experience
|
 Multi-Strategy Business Approach
4
COMMERCIAL REAL ESTATE
OWNER & OPERATOR
-
Maximize value over time
-
Opportunistic acquisitions
-
Hedges against inflation
-
Adds stability to the asset mix
COMMERCIAL REAL ESTATE
LENDER
-
One-source financing option to
middle market: originate,
underwrite, close & service
commercial real estate loans
ASSET & PROPERTY MANAGER
-
Full service property manager
-
Asset Manager: S&P &
Morningstar rated primary and
special loan servicer
-
External advisor to
Independence Realty Trust, Inc.
(NYSE MKT: IRT)
Commercial
Real Estate Platform
$5.3 Billion
Assets Under Management
As of June 30, 2014 |
 Commercial Real Estate Lender
5
The lending opportunity
Improved
lending
environment
-
economy,
liquid
market,
stronger
borrowers
Over
$1.5
trillion
of
CRE
debt
is
expected
to
mature
through
2019
(1)
Equity gap drives bridge and mezzanine lending opportunities
RAIT’s goal
Capitalize on lending opportunity utilizing existing, scalable platform and
internal expertise to originate and underwrite bridge, mezzanine and
conduit loans of $5 million to $30 million on multi-family, office,
retail and light industrial properties RAIT’s
competitive
advantage:
uniquely
positioned
to
deliver
a
one-source
financing
option
to
our
borrowers
-
short
term,
floating
rate
financing
for
properties
in
transition
to
long
term,
fixed
rate
financing
for
stabilized
properties
Active credit and risk management
(1)
Trepp , LLC |
 Commercial Real Estate Lender
6
Loan Types
Bridge
loans
-
balance
sheet
loans:
transitional
properties,
3
to
5
year,
floating
rate
over
LIBOR,
origination
&
exit
fee,
approximate
floor
rates
4.75%
-
7.0%
Conduit
loans
-
for
sale
loans:
stable
properties,
5
to
10
year,
fixed
rate,
approximate
coupon
range
4.50%
-
5.50%
Mezzanine
loans
-
balance
sheet
loans:
stable
properties,
floating
rate,
origination
fees,
approximate
coupon:
10.00%
-12.00%
Funding Sources
Warehouse providers
Bridge loans: Citibank, Column Financial (Credit Suisse AG affiliate), UBS Real
Estate Securities, Inc.
Conduit
loans:
Barclays,
Citibank
-
sell
loans
into
third-party
securitizations
RAIT’s balance sheet
Securitizations
-
RAIT
2013-FL1
-
$135
million
floating
rate
securitization;
RAIT
2014-FL2
-
$196
million
floating
rate
securitization
Capital markets |
 Commercial Real Estate Lender
7
Growth in loan originations
Loan repayments and sales
Average quarterly commercial loan (bridge and mezzanine) repayments of $42.8
million for the six-months ended June 30, 2014
Average quarterly conduit loan sales of $59.7 million for the six-months ended
June 30, 2014
As of June 30, 2014 |
 CRE Loan Portfolio Statistics
8
Loan Portfolio Statistics
As of June 30, 2014 unless otherwise Indicated ($ in 000s)
(1) Based on book value at 6/30/2014.
Book Value
Weighted-
Average
Coupon
Range of Maturities
Number of
Loans
Key Statistics
Q2 2014
Q4 2013
Commercial Real Estate (CRE) Loans
CRE Non-accrual loans
$30,269
$37,073
Commercial mortgages
$1,003,051
6.0%
Aug. 2014 to Jul. 2044
85
% change
(18) %
Mezzanine loans
260,320
9.5%
Sep. 2014 to Jan. 2029
80
Reserve for losses
15,336
22,955
Preferred equity interests
41,721
7.7%
May 2015 to Aug. 2025
10
% change
(33) %
Total CRE Loans
$1,305,092
6.8%
175
Provision for losses
1,000
1,500
Other loans
20,204
2.8%
Oct. 2016
1
% change
(33) %
Total investments in loans
$1,325,296
6.7%
176
|
 Commercial Real Estate Owner
9
Directly owned real estate portfolio
Strategy to maximize value over time through professional management, increasing
occupancy and higher rental rates
Opportunistic acquisitions
Provides stability to asset mix and hedges against inflation
$1.3 billion of CRE properties at June 30, 2014
Portfolio is internally managed
Acquire well located apartment buildings in secondary markets via Independence
Realty Trust, Inc. (“IRT”) (NYSE MKT: IRT)
IRT owned 19 properties totaling $343.5 million at June 30, 2014
Consolidated by RAIT and externally managed by RAIT subsidiary
RAIT owns approximately 7.3 million shares of IRT common stock
(approximately 28.2% of the outstanding common stock)
IRT utilizes RAIT’s relationships, broker-network & relationships;
off-market transactions
(1)
Includes
nineteen
apartment
buildings
totaling
$343.5
million
owned
by
IRT
as
of
June
30,
2014.
At
July
21,
2014,
RAIT
owned
28.2%
of
IRT’s
outstanding
common
stock.
.
1 |
 Directly Owned Commercial Real Estate Portfolio
Statistics
10
(a)
Based
on
book
value
of
properties
owned
as
of
June
30,
2014.
.
Investments
in
Real
Estate
Property
Types
(a)
Investments
in
Real
Estate
Geographic
U.S.
Regions
(a
) |
 Directly Owned Commercial Real Estate Portfolio
Statistics
11
Net Real Estate Operating Income
(a)
Includes
nineteen
apartment
buildings
owned
by
IRT
with
5,342
units
and
a
book
value
of
$343.5
million
as
of
June
30,
2014.
At
August
5,
2014,
RAIT
owned
28.2%
of
IRT’s
outstanding
common
stock.
(b)
Average
monthly
effective
rent
represents
the
average
monthly
rent
collected
for
all
occupied
units
after
giving
effect
to
tenant
concessions.
We
do
not
report
average
effective
rent
per
unit
in
the
month
of
acquisition
as
it
is
not
representative
of
a
full
month
of
operations.
Based
on
properties
owned
as
of
June
30,
2014.
(c)
Average
effective
rent
is
rent
per
unit
per
month.
(d)
Average
effective
rent
is
rent
per
square
foot
per
year.
Improved Occupancy and Net Operating Income
As of June 30, 2014 unless otherwise Indicated ($ in 000s)
Average
Effective
Rent
(b)
Investments
in Real
Estate
Quantity
Number of
Properties
Average Physical Occupancy
6/30/2014
6/30/2013
Multi-family real estate properties
(a)
$957,858
12,388 units
47
92.8%
92.6%
Office real estate properties
322,477
2,248,321 sq. ft.
13
74.3%
74.3%
Retail real estate properties
84,088
1,420,909 sq. ft.
4
67.5%
68.7%
Parcels of land
50,097
21.9 acres
10
Total
$1,414,520
74
Q2 2014
Q2 2013
Rental income
$39,214
$27,858
Real estate operating expenses
19,690
14,911
Net Real Estate Operating Income
$19,524
$12,947
NOI growth
51%
Property Type
Q2 2014
Q2 2013
% Increase
Multi-family
(c)
$799
$743
8%
Office
(d)
20.10
18.77
7%
Retail
(d)
12.5
11.78
6% |
 Asset and Property Manager
12
Asset & Property Management
$5.3 billion of AUM
Management fees
Manage approximately $2.6 billion of commercial real estate assets, $1.5 billion
of U.S. real estate debt securities and property manage $1.2 billion of
commercial real estate for third parties
S&P & Morningstar rated primary and special CRE loan servicer
Property
management
fees
-
RAIT,
IRT
and
3
rd
party
opportunities
Multi-family focused
–
54 properties -
12,683 units
–
17 states
Office focused
Retail focused
–
3.0 million square feet
–
13 states
–
63 properties –
18.2 million square feet
–
25 states |
 RAS Dividend History –
Since 2011
13
(a)
Compound
Annual
Growth
Rate
.
Stable and steady dividend |
 2014 Projected Cash Available for Distribution
(1)
14
(1)
Please
see
slide
17
for
CAD
definition.
(2)
Constitutes
forward-looking
information.
Actual
full
2014
projected
net
income,
cash
available
for
distribution
and
each
individual
line
item
presented
herein
could
vary
significantly
from
the
projections
presented.
Net
income,
CAD
and
each
such
item
may
fluctuate
based
upon
a
variety
of
factors,
including,
but
not
limited
to,
the
timing
and
amount
of
investments,
repayments
and
asset
sales,
capital
raised,
use
of
leverage,
changes
in
the
expected
yield
of
investments
and
the
overall
conditions
in
commercial
real
estate
and
the
economy
generally.
CAD
per
share
does
not
take
into
account
any
potential
dilution
from
our
outstanding
convertible
senior
notes
or
warrants
or
equity
compensation.
The
above
projections
assume
for
2014:
gross
loan
originations
of
$900
million
to
$1.25
billion;
Investment
portfolios
do
not
experience
significant
loan
repayments;
RAIT’s
property
portfolio
performs
at
historical
levels;
RAIT
continues
to
receive
its
securitization
collateral
management
and
property
management
fees
and
RAIT
will
take
a
one-time,
$21.5
million
settlement
charge
to
GAAP
earnings
and
cash
available
for
distribution
(“CAD”)
in
the
quarter
ended
September
30,
2014.
(3)
Represents
projected
net
income
(loss)
allocable
to
common
shares
for
2014
excluding
the
changes
in
fair
value
of
financial
instruments.
For
the
six-months
ended
June
30,
2014,
changes
in
fair
value
of
financial
instruments
was
a
loss
of
$63.5
million
and
net
income
allocable
to
common
shares
was
a
loss
of
$40.2
million.
Includes
the
one-time
$21.5
million
settlement
charge
RAIT
will
take
in
the
quarter
ended
September
30,
2014.
(4)
Based
on
80,636,895
weighted-average
shares
outstanding-diluted
for
the
six-month
period
ended
June
30,
2014.
Reconciliation of RAIT Annualized Projected Cash Available for Distribution ("CAD")
(dollars in millions, except per share data)
2014 Annualized Projected CAD
(2)
Net Income (loss) allocable to common shares
(3)
$ 1.2
-
$ 7.2
Adjustments:
Depreciation, amortization expense and other items
78.6
-
78.6
Taberna VIII and Taberna IX securitizations, net effect
(28.2)
-
(28.2)
Loan origination fees
5.6
-
7.6
CAD
$ 57.2
-
$ 65.2
CAD per share
(4)
$ 0.71
-
$ 0.81
|
 RAIT Highlights & Goals
15
Growth & stability through a multi-strategy approach
Utilizing RAIT’s core, integrated, real estate platform and management
expertise to generate appropriate risk-adjusted returns by originating,
underwriting and managing commercial real estate loans
Creating value in RAIT’s portfolio of owned real estate through increasing
rental and occupancy rates while managing operating costs through
RAIT’s property managers Expanding and maintaining our sources of
liquidity Maintaining a strong pipeline of investment opportunities
Delivering stable and growing dividends
Growing revenue through accretive capital deployment
Focus on bridge and conduit loans
Growing IRT’s portfolio of apartment properties
|
 16
Appendix |
 Cash Available for Distribution
(1)
17
(1)
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,
realized
gain
(loss)
on
assets,
provision
for
loan
losses
and
non-cash
interest
income
and
expense
items).
Furthermore,
CAD
removes
the
effect
from
our
consolidation
of
the
legacy
Taberna
securitizations.
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,
including
such
changes
reflected
in
our
consolidated
Taberna
securitizations;
net
interest
income
from
consolidated
Taberna
securitizations;
realized
gain
(loss)
on
assets
and
other;
provision
for
loan
losses;
impairment
on
depreciable
property;
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-recurring
items.
CAD
should
not
be
considered
as
an
alternative
to
net
income
(loss),
determined
in
accordance
with
U.S.
GAAP,
as
an
indicator
of
operating
performance.
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.
(2)
Based
on
81,778,947
and
80,636,895
weighted-average
shares
outstanding-diluted
for
the
three-month
period
and
six-month
period
ended
June
30,
2014.
(3)
Based
on
69,757,807and
65,086,432
weighted-average
shares
outstanding-diluted
for
the
three-month
period
and
six-month
period
ended
June
30,
2013.
(All $ in 000s except per share numbers)
For the Three-Month Period Ended
June 30,
For the Six-Month Period Ended
June 30,
2014
2013
2014
2013
Amount
Per Share
(2)
Amount
Per Share
(3)
Amount
Per Share
(2)
Amount
Per Share
(3)
Cash Available for Distribution:
Net income (loss) allocable to common shares ..........................
$(25,650)
$ (0.31)
$(65,877)
$(0.94)
$(40,237)
$ (0.50)
$(156,409)
$(2.40)
Adjustments:
Depreciation and amortization expense .........................
13,441
0.16
8,618
0.12
25,483
0.32
17,188
0.26
Change in fair value of financial instruments ..................
25,071
0.32
76,020
1.09
49,210
0.61
175,777
2.69
(Gains) losses on assets
.................................................
7,599
0.09
(224)
0.00
5,375
0.07
(221)
0.00
(Gains) losses on extinguishment of debt .......................
-
-
-
-
(2,421)
(0.03)
-
-
Taberna VIII and Taberna IX securitizations, net effect .
(7,028)
(0.09)
(9,526)
(0.14)
(14,088)
(0.18)
(18,002)
(0.28)
Straight-line rental adjustments ......................................
24
0.00
(678)
(0.01)
(91)
0.00
(966)
(0.01)
Share-based compensation ............................................
1,180
0.01
743
0.01
2,629
0.03
1,466
0.02
Origination fees and other deferred items ......................
5,181
0.06
2,300
0.03
9,732
0.12
2,978
0.05
Provision for losses .........................................................
1,000
0.01
500
0.01
2,000
0.03
1,000
0.02
Noncontrolling interest effect from certain adjustments..
(1,095)
(0.01)
(9)
0.00
(635)
(0.01)
(9)
0.00
Cash Available for Distribution ....................................................
$19,723
$0.24
$11,867
$0.17
$36,957
$0.46
$22,802
$0.35
|
 $-
$-
$34,066
$-
$141,750
$70,000
$-
$-
$-
$-
$60,000
$43,771
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
2014 (1)
2015 (1)
2016 (2)
2017 (3)
2018 (2) (3)
2019 (3)
2020
2021
2022
2023
2024 (4)
Thereafter
Unsecured Recourse Debt Maturities and Redemption Dates
(in 000s)
Unsecured Recourse Debt Summary
18
No corporate, unsecured, recourse debt maturities until April 2016
(1)
Excludes
$76.9
million
of
secured
debt
outstanding
under
RAIT’s
CMBS
and
commercial
mortgage
facilities
with
contractual
maturities
in
2015
&
2016.
(2)
Assumes
full
exercise
of
holders’
7.0%
&
4.0%
convertible
senior
notes
redemption
right
in
April
2016
and
October
2018,
respectively,
and
excludes
$12.1
million
outstanding
under
secured
credit
facilities
with
contractual
maturities
in
2016
related
to
Independence
Realty
Trust,
Inc.
(3)
Includes
$70.0
million
of
senior
unsecured
notes
issued
in
August
2014.
Excludes
$82.0
million
of
outstanding
senior
secured
notes
issued
by
us
which
are
eliminated
in
consolidation
with
contractual
maturities
ranging
from
2017
to
2019.
(4)
Includes
$60.0
million
of
senior
unsecured
notes
issued
in
April
2014.
As of June 30, 2014 |
 Key Statistics –
6.30.2014
19
(All $ in 000s except per share numbers)
(a)
CRE Loan Portfolio includes commercial mortgages, mezzanine loans, and preferred equity
interests only and does not include other loans. (b)
Includes 19 apartment properties owned by IRT with 5,342 units and a book value of $343.5
million as of June 30, 2014. (c)
Based on properties owned as of June 30, 2014.
(d)
Average effective rent is rent per unit per month.
(e)
Average effective rent is rent per square foot per year.
As of or For the Three-Month Periods Ended June 30,
2014
March 31,
2014
December 31,
2013
September 30,
2013
June 30,
2013
Financial Statistics:
Total revenue .............................................................
$
73,256
$
67,308
$
67,607
$
62,395
$
58,622
Earnings (loss) per share, diluted ...............................
$
(0.31)
$
(0.18)
$
(1.90)
$
(0.24)
$
(0.94)
Cash available for distribution per share, diluted ......
$
0.24
$
0.22
$
0.27
$
0.23
$
0.17
Common dividend declared per share .......................
$
0.18
$
0.17
$
0.16
$
0.15
$
0.13
Assets under management
.........................................
$
5,266,296
$
5,119,805
$
3,595,530
$
3,567,675
$
3,616,009
Funds from operations per share, diluted ..................
$
(0.20)
$
(0.07)
$
(1.74)
$
(0.12)
$
(0.81)
Commercial Real Estate (“CRE”) Loan Portfolio (a):
Reported CRE Loans—unpaid principal ......................
$
1,325,748
$
1,228,452
$
1,115,949
$
1,103,272
$
1,154,306
Non-accrual loans—unpaid principal .........................
$
30,269
$
28,019
$
37,073
$
45,337
$
65,597
Non-accrual loans as a % of reported loans ...............
2.3%
2.3%
3.3%
4.1%
5.7%
Reserve for losses .......................................................
$
15,336
$
14,279
$
22,955
$
23,317
$
24,222
Reserves as a % of non-accrual loans .........................
50.7%
51.0%
61.9%
51.4%
36.9%
Provision for losses
.....................................................
$
1,000
$
1,000
$
1,500
$
500
$
500
CRE Property Portfolio:
Reported investments in real estate, net (b)
..............
$
1,268,769
$
1,205,995
$
1,004,186
$
986,296
$
949,649
Net operating income.................................................
$
19,524
$
17,093
$
13,919
$
13,712
$
12,947
Number of properties owned (b) ...............................
74
71
62
61
60
Multifamily units owned (b) .......................................
12,388
12,014
9,372
8,940
8,535
Office square feet owned ...........................................
2,248,321
2,097,022
2,009,852
2,015,524
2,015,576
Retail square feet owned ...........................................
1,420,909
1,420,909
1,421,059
1,421,059
1,421,059
Acres of land owned ...................................................
21.92
21.92
21.92
21.92
21.92
Average physical occupancy data:
..............................
Multifamily properties .....................................
92.8%
93.3%
92.2%
92.5%
92.6%
Office properties
..............................................
74.3%
74.8%
75.6%
74.1%
74.3%
Retail properties ..............................................
67.5%
66.6%
69.0%
68.9%
68.7%
Average effective rent per unit/square foot (c) .........
Multifamily (d) .................................................
$
799
$
767
$
763
$
761
$
743
Office (e) ..........................................................
$
20.10
$
18.70
$
18.40
$
19.45
$
18.77
Retail (e)
...........................................................
$
12.50
$
12.44
$
12.11
$
12.05
$
11.78
|
 RAIT Income Statement
20
(All $ in 000s except per share numbers)
For the Three-Month
Periods Ended June 30
For the Six-Month
Periods Ended June 30
2014 2013 2014 2013 Revenue:
Investment interest income ......................................
$
34,646
$
31,256
$
69,609
$
62,536
Investment interest expense ....................................
(7,523)
(7,278)
(14,706)
(14,761)
Net interest margin .............................................................
27,123
23,978
54,903
47,775
Rental income ...........................................................
39,214
27,858
74,390
55,027
Fee and other income ...............................................
6,919
6,786
11,271
14,071
Total revenue ......................................................................
73,256
58,622
140,564
116,873
Expenses:
Interest expense .......................................................
13,241
9,978
24,846
19,644
Real estate operating expense
..................................
19,690
14,911
37,773
29,321
Compensation expense
.............................................
7,376
6,337
15,931
13,284
General and administrative expense ........................
4,874
3,562
9,075
7,338
Provision for losses ...................................................
1,000
500
2,000
1,000
Depreciation and amortization expense
...................
13,441
8,618
25,483
17,188
Total expenses
.....................................................................
59,622
43,906
115,108
87,775
Operating Income ............................................................
13,634
14,716
25,456
29,098
Other income (expense) ...........................................
5
69
15
145
Gains (losses) on assets
.............................................
(7,599)
224
(5,375)
221
Gains (losses) on extinguishment of debt .................
0
—
2,421
—
Change in fair value of financial instruments ............
(25,071)
(76,020)
(49,210)
(175,777)
Income (loss) before taxes ...............................................
(19,031)
(61,011)
(26,693)
(146,313)
Income tax benefit (provision)
..................................
21
673
260
634
Net income (loss) .............................................................
(19,010)
(60,338)
(26,433)
(145,679)
(Income) loss allocated to preferred shares ........................
(7,415)
(5,589)
(13,221)
(10,807)
(Income) loss allocated to noncontrolling interests ............
775
50
(583)
77
Net income (loss) allocable to common shares .................
$
(25,650)
$
(65,877)
$
(40,237)
$
(156,409)
Earnings (loss) per share—Basic:
Earnings (loss) per share—Basic ...............................
$
(0.31)
$
(0.94)
$
(0.50)
$
(2.40)
Weighted-average shares outstanding—Basic ....................
81,778,947
69,757,807
80,636,895
65,086,432
Earnings (loss) per share—Diluted:
Earnings (loss) per share—Diluted....................
$
(0.31)
$
(0.94)
$
(0.50)
$
(2.40)
Weighted-average shares outstanding—Diluted ................
81,778,947
69,757,807
80,636,895
65,086,432
ib
|
 RAIT Balance Sheet
21
(All $ in 000s except per share numbers)
As of
June 30,
2014 As of
December 31,
2013 Assets
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and preferred equity
interests………………………… $
1,323,677
$
1,122,377
Allowance for
losses……………………………………………………………………………………………………………………………
(15,336)
(22,955)
Total investments in mortgages and
loans…………………………………………………………………………………………..
1,308,341
1,099,422
Investments in real estate, net of accumulated depreciation of $145,751 and $127,745,
respectively . 1,268,769
1,004,186
Investments in securities and security-related receivables, at fair
value………………………………………………
574,178
567,302
Cash and cash
equivalents……………………………………………………………………………………………………………………
75,079
88,847
Restricted
cash…………………………………………………………………………………………………………………………………….
102,189
121,589
Accrued interest
receivable…………………………………………………………………………………………………………………
52,857
48,324
Other
assets………………………………………………………………………………………………………………………………………..
72,165
57,081
Deferred financing costs, net of accumulated amortization of $21,484 and $17,768,
respectively……... 22,469
18,932
Intangible assets, net of accumulated amortization of $8,960 and $4,564,
respectively………………………. 23,100
21,554
Total
assets…………………………………………………………………………………………………………………………..
$
3,499,147
$
3,027,237
Liabilities and Equity
Indebtedness ($425,927 and $389,146 at fair value,
respectively)………………………………………………………
$
2,417,170
$
2,086,401
Accrued interest
payable…………………………………………………………………………………………………………………….
31,177
26,936
Accounts payable and accrued
expenses…………………………………………………………………………………………….
28,683
32,447
Derivative
liabilities……………………………………………………………………………………………………………………………..
95,974
113,331
Deferred taxes, borrowers’ escrows and other
liabilities……………………………………………………………………..
128,665
79,462
Total
liabilities………………………………………………………………………………………………………………………..
2,701,669
2,338,577
Series D cumulative redeemable preferred shares, $0.01 par value per share, 4,000,000 shares
authorized, 4,000,000 and 2,600,000 shares issued and outstanding,
respectively…………………………………………...
74,723
52,970
Equity:
Shareholders’ equity:
Preferred shares, $0.01 par value per share, 25,000,000 shares authorized;
7.75% Series A cumulative redeemable preferred shares, liquidation preference $25.00 per
share, 8,069,288 and 4,760,000 shares authorized, respectively, 4,069,288 shares issued
and outstanding……………………. 41
41
8.375% Series B cumulative redeemable preferred shares, liquidation preference $25.00 per
share, 4,300,000 shares authorized, 2,288,465 shares issued and
outstanding…………………………………………………………
23
23
8.875% Series C cumulative redeemable preferred shares, liquidation preference $25.00 per
share, 3,600,000 shares authorized, 1,640,100 shares issued and
outstanding…………………………………………………………
17
17
Series E cumulative redeemable preferred shares, $0.01 par value per share, 4,000,000 shares
authorized 0
0
Common shares, $0.03 par value per share, 200,000,000 shares authorized, 82,507,410 and
71,447,437 issued and outstanding, respectively, including 541,825 and 369,500 unvested
restricted common share awards,
respectively…………………………………………………………………………………………………………………………………..
2,474
2,143
Additional paid in
capital…………………………………………………………………………………………………………………….
2,007,593
1,920,455
Accumulated other comprehensive income
(loss)……………………………………………………………………………….
(50,226)
(63,810)
Retained earnings
(deficit)…………………………………………………………………………………………………………………..
(1,326,186)
(1,257,306)
Total shareholders’
equity…………………………………………………………………………………………………………………..
633,736
601,563
Noncontrolling
interests………………………………………………………………………………………………………………………
89,019
34,127
Total
equity…………………………………………………………………………………………………………………………..
722,755
635,690
Total liabilities and
equity…………………………………………………………………………………………………….. $
3,499,147
$
3,027,237
|
 Adjusted Book Value
(1)
22
(1)
Management
views
adjusted
book
value
as
a
useful
and
appropriate
supplement
to
shareholders’
equity
and
book
value
per
share.
The
measure
serves
as
an
additional
measure
of
our
value
because
it
facilitates
evaluation
of
us
without
the
effects
of
various
items
that
we
are
required
to
record
in
accordance
with
GAAP
but
which
have
limited
economic
impact
on
our
business.
Those
adjustments
primarily
reflect
the
effect
of
consolidated
securitizations
where
we
do
not
currently
receive
cash
flows
on
our
retained
interests,
accumulated
depreciation
and
amortization,
the
valuation
of
long-
term derivative instruments and a valuation of our recurring collateral and property management
fees. Adjusted book value is a non-GAAP financial measurement, and does not purport to be an
alternative
to
reported
shareholders’
equity,
determined
in
accordance
with
GAAP,
as
a
measure
of
book
value.
Adjusted
book
value
should
be
reviewed
in
connection
with
shareholders’
equity
as
set
forth in our consolidated balance sheets, to help analyze our value to investors. Adjusted book
value may be defined in various ways throughout the REIT industry. Investors should consider these
differences when comparing our adjusted book value to that of other REITs.
(2)
Based on 82,507,410 common shares outstanding as of June 30, 2014.
(3)
Based
on
4,069,288
Series
A
preferred
shares,
2,288,465
Series
B
preferred
shares,
and
1,640,100
Series
C
preferred
shares
outstanding
as
of
June
30,
2014,
all
of
which
have
a
liquidation
preference
o
f $25.00 per share.
(All $ in 000s except per share numbers)
As of June 30, 2014
Amount Per Share (2)
Total shareholders’ equity ................................................
$
633,736
$
7.68
Liquidation value of preferred shares characterized as equity(3)
(199,946)
(2.42)
Book value ........................................................................
433,790
5.26
Adjustments:
Taberna VIII and Taberna IX securitizations, net effect
(187,864)
(2.29)
RAIT I and RAIT II derivative liabilities .....................
31,102
0.38
Change in fair value for warrants and investor SARs
18,820
0.23
Accumulated depreciation and amortization .........
183,932
2.23
Valuation of recurring collateral and property management fees
57,479
0.70
Total adjustments .............................................................
103,469
1.25
Adjusted book value .........................................................
$
537,259
$
6.51
|
 23
Pro-forma Financial Data: Assuming Taberna
Deconsolidation
Primary assumptions:
(1)The removal of the previously consolidated assets, liabilities and impact on
shareholders’
equity of the Taberna securitizations.
(2)The reflection of collateral management fees for the consolidated Taberna
securitizations previously eliminated in consolidation.
(3)See footnotes to each chart for additional assumptions. |
 Pro-Forma RAIT Income Statement –
June 30, 2014
24
(All $ in 000s except per share numbers)
(a)
RAIT
is
undertaking
to
exit
the
Taberna
business.
RAIT
expects
that
any
such
exit
will
require
RAIT
to
deconsolidate
the
assets,
liabilities
and
impact
on
shareholders’
equity
of
RAIT’s
consolidated
Taberna
securitizations:
Taberna
VIII
and
IX.
These
adjustments
reflect
the
removal
of
the
revenue,
expenses,
gains
and
losses
and
changes
in
fair
value
derived
from
these
items
from
our
results
of
operations
for
the
six-months
ended
June
30,2014.
These
adjustments
reflect
the
collateral
management
fees
for
the
consolidated
Taberna
securitizations
previously
eliminated
inconsolidation
and
do
notassume
thesale
or
other
transfer
of
the
collateral
management
agreements
associated
withany
Taberna
securitizations.
For the Six-Month Period Ended June 30, 2014
Historical
Adjustments (a)
Pro Forma
Revenue:
Investment interest income
.................................................... $
69,609
$
(15,344)
$
54,265
Investment interest expense.
.................................................. (14,706)
4,458
(10,248)
Net interest margin
......................................................................
54,903
(10,886)
44,017
Rental income
........................................................................
74,390
-
74,390
Fee and other income
.............................................................
11,271
635
11,906
Total revenue
...............................................................................
140,564
(10,251)
130,313
Expenses:
Interest expense
.....................................................................
24,846
6,381
31,227
Real estate operating expense
................................................ 37,773
-
37,773
Compensation expense
..........................................................
15,931
-
15,931
General and administrative expense
...................................... 9,075
(387)
8,688
Provision for losses
................................................................
2,000
-
2,000
Depreciation and amortization expense
................................. 25,483
-
25,483
Total expenses
.............................................................................
115,108
5,994
121,102
Operating income (loss)
............................................................
25,456
(16,245)
9,211
Other income (expense)
......................................................... 15
-
15
Gains (losses) on assets
......................................................... (5,375)
7,712
2,337
Gains (losses) on extinguishment of debt
.............................. 2,421
-
2,421
Change in fair value of financial instruments
........................ (49,210)
52,357
3,147
Income (loss) before taxes
......................................................... (26,693)
43,824
17,131
Income tax benefit (provision)
...............................................
260
-
260
Net income (loss)
........................................................................
(26,433)
43,824
17,391
(Income) loss allocated to preferred shares
........................... (13,221)
-
(13,221)
(Income) loss allocated to noncontrolling interests
............... (583)
-
(583)
Net income (loss) allocable to common shares
........................ $
(40,237)
$
43,824
$
3,587
Earnings (loss) per share - Basic:
Earnings (loss) per share – Basic
........................................... $
(0.50)
$
0.54
$
0.04
Weighted-average shares outstanding – Basic
............................ 80,636,895
80,636,895
80,636,895
Earnings (loss) per share - Diluted:
Earnings (loss) per share – Diluted
........................................ $
(0.50)
$
0.54
$
0.04
Weighted-average shares outstanding – Diluted
......................... 80,636,895
80,636,895
80,636,895
|
 Pro-Forma RAIT Income Statement –
Fiscal Year
2013
25
(All $ in 000s except per share numbers)
(a)
RAIT
is
undertaking
to
exit
the
Taberna
business.
RAIT
expects
that
any
such
exit
will
require
RAIT
to
deconsolidate
the
assets,
liabilities
and
impact
on
shareholders’
equity
of
RAIT’s
consolidated
Taberna
securitizations:
Taberna
VIIIand
IX.
These
adjustments
reflect
the
removal of the revenue, expenses, gains and losses and changes in fair value derived
from these items from our results of operations for the six-months ended June 30,
2014. These adjustments reflect the collateral management fees for the consolidated Taberna
securitizations
previously
eliminated
in
consolidation
and
do
not
assume
the
sale
or
other
transfer
of
the
collateral
management
agreements associated with any Taberna securitizations.
For the Year Ended December 31, 2013
Historical
Adjustments (a)
Pro Forma
Revenue:
Investment interest income
............................................................................................
$
134,447
$
(34,399)
$
100,048
Investment interest expense
...........................................................................................
(30,595)
9,579
(21,016)
Net interest margin
..............................................................................................................
103,852
(24,820)
79,032
Rental income
................................................................................................................
114,224
-
114,224
Fee and other income
.....................................................................................................
28,799
1,200
29,999
Total revenue
.................................................................................................................
246,875
(23,620)
223,255
Expenses:
Interest expense
.............................................................................................................
40,297
13,712
54,009
Real estate operating expense.
.......................................................................................
60,887
-
60,887
Compensation expense
..................................................................................................
26,802
-
26,802
General and administrative expense..
............................................................................
14,893
(737)
14,156
Provision for losses.
.......................................................................................................
3,000
-
3,000
Depreciation and amortization expense..
.......................................................................
36,093
-
36,093
Total expenses.
....................................................................................................................
181,972
12,975
194,947
Operating income (loss).
...................................................................................................
64,903
(36,595)
28,308
Other income (expense)
.................................................................................................
(5,233)
-
(5,233)
Gains (losses) on
assets..................................................................................................
(2,266)
90
(2,176)
Gains (losses) on extinguishment of debt.
.....................................................................
(1,275)
-
(1,275)
Change in fair value of financial instruments..
..............................................................
(344,426)
323,938
(20,488)
Income (loss) before taxes.
................................................................................................
(288,297)
287,433
(864)
Income tax benefit (provision)
.......................................................................................
2,933
-
2,933
Net income (loss)
................................................................................................................
(285,364)
287,433
2,069
(Income) loss allocated to preferred shares
...................................................................
(22,616)
-
(22,616)
(Income) loss allocated to noncontrolling interests
......................................................
(28)
-
(28)
Net income (loss) allocable to common shares.
...............................................................
$
(308,008)
$
287,433
$
(20,575)
Earnings (loss) per share - Basic:
Earnings (loss) per share - Basic
....................................................................................
$
(4.54)
$
4.24
$
(0.30)
Weighted-average shares outstanding - Basic.
....................................................................
67,814,316
67,814,316
67,814,316
Earnings (loss) per share - Diluted:
Earnings (loss) per share – Diluted
............................................................................... .
$
(4.54)
$
4.24
$
(0.30)
Weighted-average shares outstanding – Diluted
.................................................................
67,814,316
67,814,316
67,814,316
|
 Pro-Forma RAIT Balance Sheet
26
(All $ in 000s except per share numbers)
(a)
RAIT
is
undertaking
to
exit
the
Taberna
business.
RAIT
expects
that
any
such
exit
will
require
RAIT
to
deconsolidate
the
assets,
liabilities
and
impact
on
shareholders’
equity
of
RAIT’s
consolidated
Taberna
securitizations:
Taberna
VIII
and
IX.
These
adjustments
reflect
the
removal
of
these
items
from
our
consolidated
balance
sheet
as
of
June
30,
2014.
These
adjustments
do
not
assume
the
sale
or
other
transfer
of
the
collateral
management agreements
associated with any Taberna securitizations. |
 Updated Pro-Forma RAIT Adjusted Book Value
(1)
27
(1)
Management
views
adjusted
book
value
as
a
useful
and
appropriate
supplement
to
shareholders’
equity
and
book
value
per
share.
The
measure
serves
as
an
additional
measure
of
our
value
because
it
facilitates
evaluation
of
us
without
the
effects
of
various
items
that
we
are
required
to
record
in
accordance
with
GAAP
but
which
have
limited
economic
impact
on
our
business.
Those
adjustments
primarily
reflect
the
effect
of
consolidated
securitizations
where
we
do
not
currently
receive
cash
flows
on
our
retained
interests,
accumulated
depreciation
and
amortization,
the
valuation
of
long-
term derivative instruments and a valuation of our recurring collateral and property management
fees. Adjusted book value is a non-GAAP financial measurement, and does not purport to be an
alternative
to
reported
shareholders’
equity,
determined
in
accordance
with
GAAP,
as
a
measure
of
book
value.
Adjusted
book
value
should
be
reviewed
in
connection
with
shareholders’
equity
as
set
forth in our consolidated balance sheets, to help analyze our value to investors. Adjusted book
value may be defined in various ways throughout the REIT industry. Investors should consider these
differences when comparing our adjusted book value to that of other REITs.
(2)
Includes
adjustments
at
June
30,
2014
and
footnotes
(6)
and
(7)
describe
the
pro-forma
effect
of
certain
events
subsequent
to
June
30,
2014.
(3)
Based on 82,507,410 common shares outstanding as of June 30, 2014.
(4)
RAIT
is
undertaking
to
exit
the
Taberna
business.
RAIT
expects
that
any
such
exit
will
require
RAIT
to
deconsolidate
the
assets,
liabilities
and
impact
on
shareholders’
equity
of
RAIT’s
consolidated
Taberna
securitizations:
Taberna
VIII
and
IX.
See
slide
#26
for
pro-forma
balance
sheet.
The
$21.5
million
charge
RAIT
recorded
during
the
third
quarter
of
2014
for
the
SEC
Settlement
is
not
reflected
in
pro-forma
total
shareholders’
equity
but
is
reflected
as
an
adjustment
(see
footnote
7).
Does
not
assume
the
sale
or
other
transfer
of
the
collateral
management
agreements
associated
with
any
Taberna securitizations.
(5)
Based
on
4,069,288
Series
A
preferred
shares,
2,288,465
Series
B
preferred
shares,
and
1,640,100
Series
C
preferred
shares
outstanding
as
of
June
30,
2014,
all
of
which
have
a
liquidation
preference
of
$25.00 per share.
(6)
Includes
the
estimated
value
of
the
(1)
property
management
and
collateral
management
fees
to
be
received
by
RAIT
as
of
June
30,
2014
from
RAIT
Residential
and
Urban
Retail,
and
the
Taberna
I,
Taberna
VIII,
Taberna
IX,
RAIT
I
and
RAIT
II
securitizations
and
(2)
advisory
fees
to
be
received
by
RAIT
from
IRT
as
of
September
23,
2014
assuming
the
full
deployment
of
IRT’s
July
2014
common
stock
offering.
The
other
item
included
is
the
incremental
market
value
of
RAIT’s
ownership
of
7.3
million
shares
of
IRT
common
stock
over
RAIT’s
book
value
for
these
shares
at
September
16,
2014.
(7)
Includes
the
announced
$21.5
million
SEC
Settlement
charge
taken
in
the
third
quarter
of
2014.
(All $ in 000s except per share numbers)
As of June 30, 2014
(2)
Amount Per Share (3)
Pro forma total shareholders’ equity (4)
........................................................ $
404,401
$
4.90
Liquidation value of preferred shares characterized as equity (5) ........
(199,946)
(2.42)
Book value
.......................................................................................................
204,455
2.48
Adjustments (2):
RAIT I and RAIT II derivative liabilities
................................................... 31,102
0.38
Change in fair value for warrants and investor SARs ............................
18,820
0.23
Accumulated depreciation and amortization ........................................
183,932
2.23
Valuation of recurring collateral, property management fees & other
items (6)
............................................................................................
96,808
1.17
SEC settlement charge (7)
..................................................................... (21,500)
(0.26)
Total adjustments
...........................................................................................
309,162
3.75
Adjusted book value
.......................................................................................
$
513,617
$
6.23
|
 Pro-Forma Cash Available for Distribution
(1)
28
(1)
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,
realized
gain
(loss)
on
assets,
provision
for
loan
losses
and
non-cash
interest
income
and
expense
items).
Furthermore,
CAD
removes
the
effect
from
our
consolidation
of
the
legacy
Taberna
securitizations.
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,
including
such
changes
reflected
in
our
consolidated
Taberna
securitizations;
net
interest
income
from
consolidated
Taberna
securitizations;
realized
gain
(loss)
on
assets
and
other;
provision
for
loan
losses;
impairment
on
depreciable
property;
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-recurring
items.
CAD
should
not
be
considered
as
an
alternative
to
net
income
(loss),
determined
in
accordance
with
U.S.
GAAP,
as
an
indicator
of
operating
performance.
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.
(2)
RAIT
is
undertaking
to
exit
the
Taberna
business.
These
pro-forma
adjustments
remove
the
effect
of
the
assets,
liabilities
and
impact
on
sharheolders’
equity
of
RAIT’s
consolidated
securitizations;
Taberna VIII and IX. See slide #25 for the calculation of the pro-forma net income
(loss) allocable to common shares. This pro-forma CAD does not assume the sale or other transfer of the collateral
management contracts for RAIT’s managed Taberna securitizations: Taberna I, VIII
and IX. The collateral management fees for Taberna I, VIII and IX totaled $1.1 million for the six-months ended June
30, 2014 or approximately $0.01 per common share.
(3)
Based 80,636,895 weighted-average shares outstanding-diluted for the six-month
period ended June 30, 2014. (4)
Cash
available
for
distribution
for
the
six-months
ended
June
30,
2014,
as
reported
and
pro
forma,
does
not
reflect
the
impact
of
the
$21.5
million
charge
recorded
during
the
third
quarter
of
2014
for
the SEC Settlement.
(All $ in 000s except per share numbers)
AS REPORTED
PRO FORMA (2)
For the Six-Months Ended June
30, 2014
For the Six-Months Ended June
30, 2014
Amount
Per Share (3)
Amount
Per Share (3)
Cash Available for Distribution:
Net income (loss) allocable to common shares
..................................................... $(40,237)
$ (0.50)
$3,587
$ 0.04
Adjustments:
Depreciation and amortization expense
.................................................. 25,483
0.32
25,483
0.32
Change in fair value of financial instruments
........................................... 49,210
0.61
(3,147)
(0.04)
(Gains) losses on assets
........................................................................... 5,375
0.07
(2,337)
(0.03)
(Gains) losses on extinguishment of debt
................................................ (2,421)
(0.03)
(2,421)
(0.03)
Taberna VIII and Taberna IX securitizations, net effect ............................
(14,088)
(0.18)
--
--
Straight-line rental adjustments
.............................................................. (91)
--
(91)
--
Share-based compensation
..................................................................... 2,629
0.03
2,629
0.03
Origination fees and other deferred items
.............................................. 9,732
0.12
11,889
0.15
Provision for losses
..................................................................................
2,000
0.03
2,000
0.03
Noncontrolling interest effect from certain adjustments.........................
(635)
(0.01)
(635)
(0.01)
Cash Available for Distribution (4)
.........................................................................
$36,957
$0.46
$36,957
$0.46
|