Rait Financial Trust (RAS) has reported 391.87 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $8.71 million in the quarter, compared with $1.77 million for the same period last year.
Revenue during the quarter dropped 11.67 percent to $43.24 million from $48.95 million in the previous year period.
Cost of revenue went down marginally by 2.37 percent or $0.36 million during the quarter to $14.64 million. Gross margin for the quarter contracted 322 basis points over the previous year period to 66.15 percent.
Total expenses were $51.08 million for the quarter, down 0.83 percent or $0.43 million from year-ago period. Operating margin for the quarter stood at negative 18.14 percent as compared to a negative 5.22 percent for the previous year period.
Operating loss for the quarter was $7.84 million, compared with an operating loss of $2.56 million in the previous year period.
For fiscal year 2016, Rait Financial Trust forecasts net income to be in the range of $16.09 million to $27.24 million. The company projects diluted earnings per share to be in the range of $0.18 to $0.30.
Scott Schaeffer, RAIT’s chief executive officer, said, "During the quarter we continued to take advantage of strong markets in which to sell RAIT properties as part of our capital recycling and debt reduction plan. Though we remain selective with our loan originations we are on track to complete our sixth floating rate securitization during the fourth quarter of 2016."
Net receivables were at $41.60 million as on Sep. 30, 2016, down 26.04 percent or $14.65 million from year-ago.
Investments stood at $1,354.96 million as on Sep. 30, 2016, down 13.89 percent or $218.49 million from year-ago.
Total assets declined 9.43 percent or $404.11 million to $3,882.53 million on Sep. 30, 2016. On the other hand, total liabilities were at $3,083.07 million as on Sep. 30, 2016, down 10.73 percent or $370.63 million from year-ago.
Return on assets moved up 19 basis points to 0.48 percent in the quarter.
Debt comes down significantlyTotal debt was at $1,975.86 million as on Sep. 30, 2016, down 38.25 percent or $1,224.12 million from year-ago. Shareholders equity stood at $708.73 million as on Sep. 30, 2016, down 5.39 percent or $40.41 million from year-ago. As a result, debt to equity ratio went down 148 basis points to 2.79 percent in the quarter.
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