RAIT Investment Trust ended a record-setting 2003 with 48% of its portfolio in office loans, 30% in multifamily properties and 17% in retail assets, noted president and chief operating officer Scott F. Schaeffer. "The pipeline is larger than ever," he said, adding it is skewed more toward multifamily properties.
Schaeffer reported the company originated $94 million in new loans in the fourth quarter, a record for the finance REIT. Taking out repayments, the company saw a $26-million increase in higher-yielding mezzanine loans with a $10-million increase in bridge loans.
"That is our main focus at RAIT," said Cohen, referring to the increase in mezzanine loans. The underlying portfolio appears to be healthy, with company officials reporting no defaults, as well as occupancy increases of one percentage point across each of the three main asset classes. The company's fortunes have more to do with its marketing efforts and repeat business than an improving US economy, Cohen said.
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