PHILADELPHIA-Characterizing second quarter as a "core" quarter with nothing unusual occurring, Betsey Cohen, chairman and CEO of locally based RAIT Investment Trust, said in a conference call that increases in earnings and net income were "harbingers of continued growth" that will benefit "our very significant pipeline. The pipeline retains the characteristics of the current portfolio," she added.
Net income for the quarter was $16.7 million, a 15% increase over $14.5 million in the same quarter a year ago. Income for the first half reached $33.1 million, compared with $28.4 million for first-half 2004. Total assets for the first half of this year reached $866.1 million, a 19% increase over $729.5 million at year-end 2004.
"We're slightly more leveraged this quarter than last," Cohen said. "We'll continue to leverage in what we think is a sensible and measured way." Noting RAIT's return on equity was 14% and it had a 0.52-to-1 leverage-ratio, an analyst asked where RAIT would take leverage. Cohen said, "near term, 0.7-to-1 and 1-to-1 is where we think we will be migrating, if we don't see significant risk." The mix of the current portfolio is 47% multifamily, 29% office, 20% retail and 4% other. Scott Schaeffer, president and COO, said the retail portion increased 2% over the first quarter of this year at the expense of "other."
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