Shareholders' Equity

12 Months Ended

Dec. 31, 2011

Shareholders' Equity [Abstract]

Shareholders' Equity

NOTE 10: SHAREHOLDERS' EQUITY

Preferred Shares

In 2004, we issued 2,760,000 shares of our 7.75% Series A Cumulative Redeemable Preferred Shares of Beneficial Interest, or Series A Preferred Shares, for net proceeds of $66,600. The Series A Preferred Shares accrue cumulative cash dividends at a rate of 7.75% per year of the $25.00 liquidation preference, equivalent to $1.9375 per year per share. Dividends are payable quarterly in arrears at the end of each March, June, September and December. The Series A Preferred Shares have no maturity date and we are not required to redeem the Series A Preferred Shares at any time. On or after March 19, 2009, we may, at our option, redeem the Series A Preferred Shares, in whole or part, at any time and from time to time, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date.

In 2004, we issued 2,258,300 shares of our 8.375% Series B Cumulative Redeemable Preferred Shares of Beneficial Interest, or Series B Preferred Shares, for net proceeds of $54,400. The Series B Preferred Shares accrue cumulative cash dividends at a rate of 8.375% per year of the $25.00 liquidation preference, equivalent to $2.09375 per year per share. Dividends are payable quarterly in arrears at the end of each March, June, September and December. The Series B Preferred Shares have no maturity date and we are not required to redeem the Series B Preferred Shares at any time. On or after October 5, 2009, we may, at our option, redeem the Series B Preferred Shares, in whole or part, at any time and from time to time, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date.

On July 5, 2007, we issued 1,600,000 shares of our 8.875% Series C Cumulative Redeemable Preferred Shares of Beneficial Interest, or the Series C Preferred Shares, in a public offering at an offering price of $25.00 per share. After offering costs, including the underwriters' discount, and expenses of $1,660, we received $38,340 of net proceeds. The Series C Preferred Shares accrue cumulative cash dividends at a rate of 8.875% per year of the $25.00 liquidation preference and are paid on a quarterly basis. The Series C Preferred Shares have no maturity date and we are not required to redeem the Series C Preferred Shares at any time. We may not redeem the Series C Preferred Shares before July 5, 2012, except for the special optional redemption to preserve our tax qualification as a REIT. On or after July 5, 2012, we may, at our option, redeem the Series C Preferred Shares, in whole or part, at any time and from time to time, for cash at $25.00 per share, plus accrued and unpaid dividends, if any, to the redemption date.

Common Shares

Reverse Stock Split:

On May 17, 2011, the board of trustees authorized a 1-for-3 reverse stock split of our common shares of beneficial interest that became effective on June 30, 2011, or the effective time. At the effective time, every three common shares issued and outstanding were automatically combined into one issued and outstanding new common share. The par value of new common shares changed to $0.03 per share after the reverse stock split from the par value of common shares prior to the reverse stock split of $0.01 per share. The reverse stock split reduced the number of common shares outstanding but did not change the number of authorized common shares. The reverse stock split did not affect our preferred shares of beneficial interest. All references in the accompanying financial statements to the number of common shares and earnings per share data for all periods presented have been adjusted to reflect the reverse stock split.

Share Repurchases:

On July 24, 2007, our board of trustees adopted a share repurchase plan that authorizes us to purchase up to $75,000 of RAIT common shares. Under the plan, we may make purchases, from time to time, through open market or privately negotiated transactions. We have not repurchased any common shares under this plan as of December 31, 2010.

On January 25, 2011, the compensation committee approved a cash payment to the board's eight non-management trustees intended to constitute a portion of their respective 2011 annual non-management trustee compensation. The cash payment was subject to terms and conditions set forth in a letter agreement, or the letter agreement, between each of the non-management trustees and RAIT. The terms and conditions included a requirement that each trustee use a portion of the cash payment to purchase RAIT's common shares in purchases that, individually and in the aggregate with all purchases made by all the other non-management trustees pursuant to their respective letter agreements, complied with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended. The aggregate amount required to be used by all of the non-management trustees to purchase common shares is $210 and was used to purchase 18,898 common shares, in the aggregate, in February 2011.

On January 24, 2012, the compensation committee of our board of trustees approved a cash payment to the board's seven non-management trustees intended to constitute a portion of their respective 2012 annual non-management trustee compensation. The cash payment was subject to terms and conditions set forth in a letter agreement, or the letter agreement, between each of the non-management trustees and RAIT. The letter agreement documented the election of each trustee to use a portion of the cash payment to purchase RAIT's common shares in purchases that, individually and in the aggregate with all purchases made by all the other non-management trustees pursuant to their respective letter agreements, complied with Rule 10b-18 promulgated under the Securities Exchange Act of 1934, as amended. The aggregate amount required to be used by all of the non-management trustees to purchase common shares was $210 and was used to purchase 36,750 common shares, in the aggregate, in February 2012.

Share Issuances:

Dividend reinvestment and share purchase plan (DRSPP). We implemented an amended and restated dividend reinvestment and share purchase plan, or DRSPP, effective as of March 13, 2008, pursuant to which we registered and reserved for issuance 6,262,545 common shares. Effective October 28, 2011, we registered and reserved for issuance an additional 7,759,080 common shares for issuance under the DRSPP so that the aggregate number of common shares available for issuance under the DRSPP was 10,500,000 common shares. During the year ended December 31, 2011, we issued a total of 2,370,710 common shares pursuant to the DRSPP at a weighted-average price of $4.20 per share and we received $9,714 of net proceeds. From January 1, 2012 through February 21, 2012, 919,391 common shares were issued pursuant to the DRSPP at a weighted-average price of $4.91 per share and we received $4,500 of net proceeds. After reflecting the common shares issued through February 21, 2012, 8,368,191 common shares, in aggregate, remain available for issuance under the DRSPP.

Standby Equity Distribution Agreement (SEDA). On January 13, 2010, we entered into a standby equity distribution agreement, or the SEDA, with YA Global Master SPV Ltd., or YA Global, which is managed by Yorkville Advisors, LLC, whereby YA Global agreed to purchase up to $50,000, or the commitment amount, worth of newly issued RAIT common shares upon notices given by us, subject to the terms and conditions of the SEDA. The number of common shares issued or issuable pursuant to the SEDA, in the aggregate, cannot exceed 4,166,667 common shares. The SEDA terminated by its terms on January 13, 2012. During the year ended December 31, 2011, no common shares were issued pursuant to this arrangement.

Capital on Demand™ Sales Agreement (COD). On August 6, 2010, we entered into a Capital on Demand™ Sales Agreement, or the COD sales agreement, with JonesTrading Institutional Services LLC, or JonesTrading, pursuant to which we may issue and sell up to 5,833,333 of our common shares from time to time through JonesTrading acting as agent and/or principal, subject to the terms and conditions of the COD sales agreement. During the year ended December 31, 2011, 2,815,528 common shares were issued pursuant to this arrangement at a weighted average price of $8.77 and we received $22,934 of proceeds. As of December 31, 2011, the COD sales agreement had terminated by its terms as there were no common shares remaining available for issuance.

Dividends

The following tables summarize the dividends we declared or paid during the years ended December 31, 2011 and 2010:

	March 31, 2011		June 30, 2011		September 30, 2011		December 31, 2011		For the Year Ended December 31, 2011
Series A Preferred Shares
Date declared		1/25/11		5/17/11		7/26/11		10/25/11
Record date		3/1/11		6/1/11		9/1/11		12/1/11
Date paid		3/31/11		6/30/11		9/30/11		1/3/12
Total dividend amount	$	1,337	$	1,337	$	1,337	$	1,337	$	5,348
Series B Preferred Shares
Date declared		1/25/11		5/17/11		7/26/11		10/25/11
Record date		3/1/11		6/1/11		9/1/11		12/1/11
Date paid		3/31/11		6/30/11		9/30/11		1/3/12
Total dividend amount	$	1,182	$	1,182	$	1,182	$	1,182	$	4,728
Series C Preferred Shares
Date declared		1/25/11		5/17/11		7/26/11		10/25/11
Record date		3/1/11		6/1/11		9/1/11		12/1/11
Date paid		3/31/11		6/30/11		9/30/11		1/3/12
Total dividend amount	$	888	$	888	$	888	$	888	$	3,552
Common shares
Date declared		1/10/11		5/17/11		9/12/11		12/15/11
Record date		1/21/11		7/8/11		10/7/11		1/9/12
Date paid		1/31/11		7/29/11		10/31/11		1/31/12
Dividend per share	$	0.09	$	0.06	$	0.06	$	0.06	$	0.27
Total dividend declared	$	3,204	$	2,293	$	2,405	$	2,498	$	10,400

	March 31, 2010		June 30, 2010		September 30, 2010		December 31, 2010		For the Year Ended December 31, 2010
Series A Preferred Shares
Date declared		1/26/10		4/22/10		7/27/10		10/28/10
Record date		3/1/10		6/1/10		9/1/10		12/1/10
Date paid		3/31/10		6/30/10		9/30/10		12/31/10
Total dividend amount	$	1,337	$	1,337	$	1,337	$	1,337	$	5,348
Series B Preferred Shares
Date declared		1/26/10		4/22/10		7/27/10		10/28/10
Record date		3/1/10		6/1/10		9/1/10		12/1/10
Date paid		3/31/10		6/30/10		9/30/10		12/31/10
Total dividend amount	$	1,182	$	1,182	$	1,182	$	1,182	$	4,728
Series C Preferred Shares
Date declared		1/26/10		4/22/10		7/27/10		10/28/10
Record date		3/1/10		6/1/10		9/1/10		12/1/10
Date paid		3/31/10		6/30/10		9/30/10		12/31/10
Total dividend amount	$	888	$	888	$	888	$	888	$	3,552
Common shares
Date declared		N/A		N/A		N/A		N/A
Record date		N/A		N/A		N/A		N/A
Date paid		N/A		N/A		N/A		N/A
Dividend per share	$	0.00	$	0.00	$	0.00	$	0.00	$	0.00
Total dividend declared	$	0	$	0	$	0	$	0	$	0

On January 24, 2012, our board of trustees declared a first quarter 2012 cash dividend of $0.484375 per share on our 7.75% Series A Preferred Shares, $0.5234375 per share on our 8.375% Series B Preferred Shares and $0.5546875 per share on our 8.875% Series C Preferred Shares. The dividends will be paid on April 2, 2012 to holders of record on March 1, 2012.