In its SEC filing, the specialty finance REIT says it may issueup to 200 million common shares and 25 million preferred shares,and will use the funds for general corporate purposes. Thesepurposes may include repayment or redemption of debt, redemption ofpreferred equity, capital expenditures and working capital.Currently, RAIT has approximately 64 million common shares and 6.5million preferred shares outstanding. Calls to RAIT for additionaldetails were not returned by deadline.

| reported in February that RAIT ended 2007 with a$379-millionloss including a loss of $183.5 million in Q4 '07 alone,although its revenue for the quarter was up 25% year-over-year fromQ4 2006. Its Q3 loss was$244 million. The losses were related primarily to creditdeterioration in the residential mortgage and homebuilder sectors.Last December, reported that 10 executive officers ofRAIT voluntarilyforfeited $11.8 million in equity incentive awards. Thelargest of these forfeitures was $3.7 million that had been grantedto chairman Betsy Cohen. In an SEC filing announcing theforfeitures, Cohen said, "the action of our senior executivesreflects their commitment to aligning their long-term incentivecompensation with our shareholders' interests."


More recently, RAIT reported that its Q1 2008 earnings were$2.14 per diluted share, compared to a loss of $3.02 per dilutedshare for Q4 '07. The first quarter of this year also saw $331.4million of gross asset production and the company had a book valueof $25.63 per share, according to a news release from the REIT.


"During the first quarter, in what continued to be a challengingmarket environment, RAIT's portfolio performed well and generated$0.52 of adjusted earnings per share which supported thedeclaration of a $0.46 quarterly common dividend per share," DanielCohen, RAIT's CEO, said in a prepared release issued in May. Headded, "for the remainder of 2008, we will continue to focus ongenerating cash flows from our investment portfolio, originatingassets and fees, reducing our exposure to repurchase agreements andgenerating adjusted earnings for our investors."


Earlier this month, RAIT's board of trustees declared aquarterly cash dividend on its common shares of $0.46 per commonshare. The dividend will be paid on August 12 to holders of recordon July 16, according to a news release.


RAIT expects to report its Q2 financial results before US stockmarkets open on August 1 and has scheduled a conference call for10:30 a.m. Eastern time that day to discuss the results, accordingto a news release.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.