Variable Interest Entities

6 Months Ended

Jun. 30, 2012

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 June 30, 2012 and December 31, 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, 2012			As of December 31, 2011
Assets
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	$	1,952,682		$	1,856,106
Allowance for losses		(30,591	)		(36,210	)
Total investments in mortgages and loans		1,922,091			1,819,896
Investments in real estate		20,745			20,910
Investments in securities and security-related receivables, at fair value		657,248			645,915
Cash and cash equivalents		226			201
Restricted cash		59,660			235,682
Accrued interest receivable		62,397			57,560
Deferred financing costs, net of accumulated amortization of $12,295 and $10,995, respectively		14,079			15,378
Total assets	$	2,736,446		$	2,795,542
Liabilities and Equity
Indebtedness (including $159,077 and $122,506 at fair value, respectively)	$	1,707,631		$	1,682,487
Accrued interest payable		55,471			48,417
Accounts payable and accrued expenses		3,265			1,537
Derivative liabilities		167,155			181,499
Deferred taxes, borrowers’ escrows and other liabilities		8,624			4,570
Total liabilities		1,942,146			1,918,510
Equity:
Shareholders’ equity:
Accumulated other comprehensive income (loss)		(104,516	)		(114,186	)
RAIT Investment		6,443			31,004
Retained earnings		892,373			960,214
Total shareholders’ equity		794,300			877,032
Total liabilities and equity	$	2,736,446		$	2,795,542

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 our other subsidiaries that maintain investments in the debt or equity securities issued by these entities. We do not have any contractual obligation to provide the VIEs listed above with any financial support. We have not and do not intend to provide financial support to these VIEs that we were not previously contractually required to provide.