Variable Interest Entities

6 Months Ended

Jun. 30, 2011

Variable Interest Entities

Variable Interest Entities

NOTE 9: VARIABLE INTEREST ENTITIES

The following table presents the assets and liabilities of our consolidated VIEs as of each respective date. As of June 30, 2011 our consolidated VIEs were: Taberna Preferred Funding VIII, Ltd., Taberna Preferred Funding IX, Ltd, RAIT CRE CDO I, Ltd., RAIT Preferred Funding II, Ltd., Willow Grove and Cherry Hill.

	As of June 30, 2011			As of December 31, 2010
Assets
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	$	1,901,133		$	1,913,089
Allowance for losses		(15,526	)		(15,526	)
Total investments in mortgages and loans		1,885,607			1,897,563
Investments in real estate		21,065			21,054
Investments in securities and security-related receivables, at fair value		717,983			705,455
Cash and cash equivalents		206			73
Restricted cash		153,157			151,045
Accrued interest receivable		53,560			55,105
Deferred financing costs, net of accumulated amortization of $0 and $8,608, respectively		16,829			17,999
Total assets	$	2,848,407		$	2,848,294
Liabilities and Equity
Indebtedness (including $140,619 and $148,072 at fair value, respectively)	$	1,699,670		$	1,707,352
Accrued interest payable		41,813			34,745
Accounts payable and accrued expenses		1,591			1,450
Derivative liabilities		174,880			184,878
Deferred taxes, borrowers' escrows and other liabilities		5,279			3,814
Total liabilities		1,923,233			1,932,239
Equity:
Shareholders' equity:
Accumulated other comprehensive income (loss)		(114,382	)		(123,316	)
RAIT Investment		70,356			103,862
Retained earnings		969,200			935,509
Total shareholders' equity		925,174			916,055
Total liabilities and equity	$	2,848,407		$	2,848,294

The assets of the VIEs can only be used to settle obligations of the VIEs and are not available to our creditors. Certain amounts included in the table above are eliminated upon consolidation with other RAIT subsidiaries that maintain investments in the debt or equity securities issued by these entities.

RAIT does not have any contractual obligation to provide the VIEs listed above with any financial support. RAIT has not provided and does not intend to provide financial support to these VIEs that we were not previously contractually required to provide.