Variable Interest Entities

9 Months Ended

Sep. 30, 2011

Variable Interest Entities [Abstract]

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 September 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 September 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	$	1,869,713		$	1,913,089
Allowance for losses		(13,083	)		(15,526	)
Total investments in mortgages and loans		1,856,630			1,897,563
Investments in real estate		21,046			21,054
Investments in securities and security-related receivables, at fair value		719,555			705,455
Cash and cash equivalents		327			73
Restricted cash		149,972			151,045
Accrued interest receivable		56,894			55,105
Other assets		27,421			0
Deferred financing costs, net of accumulated amortization of $10,359 and $8,608, respectively		16,021			17,999
Total assets	$	2,847,866		$	2,848,294
Liabilities and Equity
Indebtedness (including $130,694 and $148,072 at fair value, respectively)	$	1,691,049		$	1,707,352
Accrued interest payable		45,144			34,745
Accounts payable and accrued expenses		1,450			1,450
Derivative liabilities		194,224			184,878
Deferred taxes, borrowers' escrows and other liabilities		0			3,814
Total liabilities		1,931,867			1,932,239
Equity:
Shareholders' equity:
Accumulated other comprehensive income (loss)		(121,966	)		(123,316	)
RAIT Investment		55,700			103,862
Retained earnings		982,265			935,509
Total shareholders' equity		915,999			916,055
Total liabilities and equity	$	2,847,866		$	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.