RAIT Financial Trust Suspends Dividend On Common Shares - Quick Facts

(RTTNews) - While reporting its third-quarter financial results today, RAIT Financial Trust (RAS) said that on November 1, 2017, its board of directors has determined to suspend the dividend on RAIT's common shares.

RAIT expects that its distributions to its common and preferred shareholders in 2017 will be at least equal to the minimum amounts required in order for RAIT to remain a real estate investment trust or REIT for federal tax purposes.

The company said its board expects to consider whether to reinstate a dividend on RAIT's common shares after RAIT completes its previously announced strategic transformation and exploration of strategic and financial alternatives. The board expects to continue to review and determine the dividends on RAIT's preferred shares on a quarterly basis.

Michael Malter, RAIT's Chairman of the Board said, "The decision to suspend the quarterly common dividend was a difficult one given the importance of the dividend to our shareholders. However, the Board felt it was prudent to suspend the common dividend at this time, enhancing RAIT's financial flexibility, a benefit to all stakeholders, as RAIT continues making progress in its strategic transformation and explores strategic and financial alternatives."

However, the company declared its fourth-quarter of 2017 preferred stock dividends.