"We generated significantly greater growth and net production in 2004, compared with 2003," said Betsy Cohen, chairman and CEO, during a fourth-quarter and year-end conference call. "The business of the company continues to be robust."

For the year, RAIT's average gross loan production increased 100% over the year before, according to Scott Schaeffer, president and COO. Net production increased 108% this year versus last.

Despite increased competition and potential changes in interest rates, Cohen said, "we have a healthy book of business heading into 2005. We've worked to reduce interest rate risk…and we continue to have a large market in front of us. We're a very small piece of the overall market." RAIT focuses on loans and investments in mid-size commercial real estate, generally between $2 million and $30 million, a segment not typically served by large institutions.

Regarding interest rates, she said the company's floating rate debt "represents a small percent of total borrowing…we're financing out as quickly as possible on a fixed-rate basis." Reporting that the firm's current leverage is low, "we call it pitiful," she said, and added, "We don't think this is the time to put on a lot of leverage."

The portfolio's spread among real estate segments remained stable over the last half of 2004 at 43% multifamily, 31% office, 19% retail and 7% other. The geographic spread, also unchanged, is 38% Mid-Atlantic, 30% Midwest, 24% Southeast, 6% West and 2% Northeast.