RAIT Financial Trust (RAS)

pytheian (78.41) Submitted: 5/06/08 11:53 AM : Start Price: $6.97 RAS Score: 25.48

So we want two things - maintain (or close to) the dividend, whose yield is ~24% at today's price, and hopefully, to take a write-up on marked down assets in future, increasing book value and taking share price with it.

Q1 08 Summary form Mgmt:

"-- Adjusted earnings per diluted share of $0.52 for the quarter ended March 31, 2008 represents a 10.6% increase from adjusted earnings of $0.47 per diluted share for the quarter ended December 31, 2007

-- Earnings per share - diluted of $2.14 for the quarter ended March 31, 2008 as compared to a loss per share - diluted of $3.02 for the quarter ended December 31, 2007

-- $331.4 million of gross asset production for the quarter ended March 31, 2008

-- $14.5 billion of assets under management at March 31, 2008

-- $10.2 billion of total consolidated assets at March 31, 2008

-- Economic book value of $14.67 per share at March 31, 2008

-- Book value of $25.63 per share at March 31, 2008 "

Mgmt Comments on funding sources:

"Now, when we have reduced, we will expand our asset origination for third parties and maintaining our balance sheet and trying to redeploy capital into higher yielding assets. At the same time, we are maintaining our balance sheet and reducing our exposure to short-term repurchase financing. We have done that by $74 million in the fourth quarter, with the year-end balance of the short-term repurchased financing of a $138 million.

This represents reduction of more than $1 billion since December 31 of 2006. We are focusing on reducing our remaining exposure and we expect to manage that balance down even further during 2008. "

And on assets:

"All of our available-for-sale securities are mark-to-market from a credit perspective. So, their estimated fair value is recorded at the end of each quarter. Whenever our estimated fair value signifies that impairment has occurred, we also assess whether or not the impairment is temporary or permanent in nature. Any permanent asset impairment is recorded as a charge to earnings based on these estimates, based on our estimate of the magnitude of probable loss, offset by the expected recovery for each asset."

"At December 31st, ‘07, our economic book value stands at $10.52 per share, as reflected on Schedule 1 in the press release."

Regarding dividends:

"we would expect and as much as that cash flow continues and our expected cash flow comes in that we will pay the dividends that we have paid previously."

Don't even think of buying this unless you've read this: http://seekingalpha.com/article/68928-rait-financial-trust-q...

Not for Grandma's IRA, but you need money, don't you? How many of these sorts of opportunities do you expect to come along?

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