RAIT Financial Trust (RAS) saw its loss widen to $21.56 million, or $0.33 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $9.32 million, or $0.20 a share. Revenue during the quarter plunged 39.15 percent to $29.60 million from $48.65 million in the previous year period.
Cost of revenue dropped 24.50 percent or $4.17 million during the quarter to $12.85 million. Gross margin for the quarter contracted 842 basis points over the previous year period to 56.60 percent.
Total expenses were $42.07 million for the quarter, down 21.84 percent or $11.76 million from year-ago period. Operating margin for the quarter stood at negative 42.12 percent as compared to a negative 10.65 percent for the previous year period.
Operating loss for the quarter was $12.47 million, compared with an operating loss of $5.18 million in the previous year period.
“We have continued to make progress executing on our strategy of refocusing the business on our core commercial real estate lending activities,” said Scott Davidson, RAIT’s Chief Executive Officer. “We increased loan originations during the quarter while continuing to dispose of non-lending assets, reduced both recourse and non-recourse indebtedness and lowered our expenses. We are committed to our transformation strategy and our Board and management team are confident that we are on the right path to position RAIT to grow long-term shareholder value.”
Net receivables were at $36.18 million as on Mar. 31, 2017, down 27.63 percent or $13.81 million from year-ago.
Investments stood at $1,302.01 million as on Mar. 31, 2017, down 18.34 percent or $292.46 million from year-ago.
Total assets plunged 48.52 percent or $2,095.16 million to $2,222.62 million on Mar. 31, 2017. On the other hand, total liabilities were at $1,792.13 million as on Mar. 31, 2017, down 49.06 percent or $1,726.04 million from year-ago.
Return on assets was negative at 0.51 percent in the quarter against a positive 0.09 percent in the last year period. Return on equity for the quarter stood at negative 8.67 percent as compared to a negative 2.50 percent for the previous year period.
Debt comes down significantly
Total debt was at $1,623.13 million as on Mar. 31, 2017, down 50.32 percent or $1,644.10 million from year-ago. Shareholders equity stood at $346.98 million as on Mar. 31, 2017, down 51.30 percent or $365.54 million from year-ago. As a result, debt to equity ratio went up 9 basis points to 4.68 percent in the quarter.
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