RAIT Financial's stock jumps on higher first-quarter profit

Shares of RAIT Financial Trust jumped Tuesday after the real estate investment trust reported a higher profit in the first quarter.

RAIT Financial earned $133.5 million, or $2.14 per share, in the first quarter, compared with profit of $20.3 million, or 34 cents per share, in the first quarter last year.

Adjusted to exclude certain unusual costs and gains _ including a $255 million gain on the value of a book of investments _ profit was 52 cents per share.

Analysts polled by Thomson Financial forecast profit of 45 cents per share.

Revenue, which the company derives mostly from collecting rent, management fees and interest on loans, climbed 2 percent to $53.2 million from $52.2 million. Analysts expected revenue of $47 million.

Friedman Billings Ramsey analyst Merrill Ross wrote in a research report the company has proved its dividend is viable. RAIT Financial is paying a 46-cent quarterly dividend with the cash generated from its business.

Shares of RAIT Financial Trust climbed $1.24, or 16.1 percent, to $8.94 in afternoon trading Tuesday. The company's shares have traded in a range of $4.82 and $30.55 in the past year.