RAIT Financial Trust (RAS), a real estate investment trust (REIT), has recently expanded the operations of RAIT Securities LLC that offers commercial real estate advisory services to a host of clients.
The range of services currently offered by RAIT Securities include strategic advisory services to financial institutions and other investors, asset valuation, acquisition and disposal of assets, asset restructuring and repositioning, asset management, property management and loan servicing. Furthermore, in order to streamline the operations, the company has hired skilled management professionals.
RAIT Financial Trust is primarily engaged in the lending and investment aspects of the real estate business. The company primarily invests in the following asset classes: 1) commercial mortgages and mezzanine loans; 2) trust preferred securities; 3) residential mortgage loans; 4) mortgage-backed securities; 5) real estate investments; and 6) preferred equity in entities that own real estate.
RAIT Financial Trust generates revenues from the interest and dividend income from its investment portfolio, origination fees, and asset management fees. The company’s net investment income is the difference between interest income on the investment portfolio and the cost of financing the portfolio. Most of the company’s portfolio is financed by borrowings and securitizations. The company uses warehouse agreements, CDOs, and lines of credit to finance the majority of its investments.
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