RAIT Financial Trust Sells and Divests Seven Properties Totaling $124.7 Million

1/11/18

PHILADELPHIA--(BUSINESS WIRE)--RAIT Financial Trust (NYSE: RAS) today announced that it has completed sales of five properties for an aggregate purchase price of approximately $110.4 million and divested an additional two properties with an aggregate net carrying value of approximately $14.3 million during the fourth quarter of 2017. RAIT expects these transactions to result in a reduction of related indebtedness by approximately $128.3 million. These sales and divestitures align with RAIT’s previously announced strategy of transforming RAIT into a more focused and cost-efficient business concentrated on its core commercial real estate lending activities. During 2017, consistent with this strategy, RAIT sold or divested approximately $399.3 million of its property portfolio and reduced related indebtedness by approximately $356.2 million. During 2016 and 2017, RAIT sold or divested $737.2 million of its property portfolio and reduced related indebtedness by approximately $652.0 million.

The properties sold by RAIT during the fourth quarter of 2017 were two parcels of land in Daytona Beach, Florida, an office property in Scottsdale, Arizona, a retail property located in Round Rock, Texas, an office property in Milwaukee, Wisconsin and an office property in Charlotte, North Carolina. RAIT used approximately $90.8 million of the gross proceeds received from these sales to repay related indebtedness, pay transaction costs and for other items. RAIT received net cash proceeds of approximately $5.7 million related to these sales.

The properties divested by RAIT during the fourth quarter of 2017 were two industrial properties in Westmoreland, Pennsylvania and Marysville, Ohio. These properties had a net carrying value of approximately $14.3 million and related debt of $39.9 million. As previously disclosed, these divestitures completed RAIT’s divestiture of an industrial portfolio which RAIT expects to result in RAIT recognizing a non-cash gain of approximately $25.0 million during the fourth quarter of 2017.

About RAIT Financial Trust

RAIT Financial Trust is an internally-managed real estate investment trust focused on providing debt financing options to owners of commercial real estate throughout the United States. For more information, please visit www.rait.com or call Investor Relations at 215.207.2100.

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