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RAIT Financial Trust

Investor Presentation

Third Quarter 2012

Exhibit 99.1

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Forward Looking Statements &

Non-GAAP Financial Measures

This

document

and

the

related

presentation

may

contain

forward-looking

statements

within

the

meaning

of

the

Private

Securities

Litigation

Reform

Act

of

1995.

These

forward-looking

statements

include,

but

are

not

limited

to,

statements

about

RAIT

Financial

Trust’s

(“RAIT”)

plans,

objectives,

expectations

and

intentions

with

respect

to

future

operations,

products,

dividends,

cash

from

investments

and

services

and

other

statements

that

are

not

historical

facts.

Forward-

looking

statements

are

sometimes

identified

by

the

words

“may”,

“will”,

“should”,

“potential”,

“predict”,

“continue”,

“project”,

“guide”,

or

other

similar

words

or

expressions.

These

forward-looking

statements

are

based

upon

the

current

beliefs

and

expectations

of

RAIT's

management

and

are

inherently

subject

to

significant

business,

economic

and

competitive

uncertainties

and

contingencies,

many

of

which

are

difficult

to

predict

and

generally

not

within

RAIT’s

control.

In

addition,

these

forward-looking

statements

are

subject

to

assumptions

with

respect

to

future

business

strategies

and

decisions

that

are

subject

to

change.

RAIT

does

not

guarantee

that

the

assumptions

underlying

such

forward

looking

statements

are

free

from

errors.

Actual

results

may

differ

materially

from

the

anticipated

results

discussed

in

these

forward-looking

statements.

The following factors, among others, could cause actual results to differ materially from the anticipated results or

other expectations expressed in the forward-looking statements: the risk factors and other disclosure contained in

filings by RAIT with the Securities and Exchange Commission (“SEC”), including, without limitation, RAIT’s most recent

annual and quarterly reports filed with SEC. RAIT’s SEC filings are available on RAIT’s website at www.raitft.com.

You

are

cautioned

not

to

place

undue

reliance

on

these

forward-looking

statements,

which

speak

only

as

of

the

date

of

this

presentation.

All

subsequent

written

and

oral

forward-looking

statements

attributable

to

RAIT

or

any

person

acting

on

its

behalf

are

expressly

qualified

in

their

entirety

by

the

cautionary

statements

contained

or

referred

to

in

this

document

and

the

related

presentation.

Except

to

the

extent

required

by

applicable

law

or

regulation,

RAIT

undertakes

no

obligation

to

update

these

forward-looking

statements

to

reflect

events

or

circumstances

after

the

date

of

this

presentation

or

to

reflect

the

occurrence

of

unanticipated

events.

This document and the related presentation may contain non-U.S. generally accepted accounting principles (“GAAP”)

financial measures.  A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP

financial measure is included in this document and/or RAIT’s most recent annual and quarterly reports. 

This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer

to buy any securities of RAIT or Independence Realty Trust, Inc.

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About RAIT

RAIT Financial Trust (“RAIT”) (NYSE: RAS), is a multi-strategy commercial real

estate company organized as an internally-managed REIT

Scalable commercial real estate platform with over 350 employees

$3.6 billion of assets under management

Seasoned executive team with strong real estate experience

Increased quarterly common dividend to $0.09 for the third quarter 2012 –

a 50% increase from the fourth quarter 2011

No corporate, unsecured, recourse debt maturities until October 2015

As of September 30, 2012

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Multi-Strategy Business Approach

Commercial real estate lender

“One Source”

financing option to middle market

Comprehensive lending platform -

originate, underwrite, close & service CMBS

and transitional CRE loans

$1.0 billion loan portfolio

Commercial real estate owner

Maximize value of the portfolio over time through increased occupancy and

rental rates

$997 million portfolio (58 properties): 60% multi-family, 26% office, 9% retail

and 5% other

Adds stability to the asset mix

Asset and property manager

S&P & Morningstar rated primary and special loan servicer

Full service property management capabilities

Asset Manager –

earning management fees

Non-traded REIT sponsor: Scalable non-traded REIT platform

As of September 30, 2012

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Commercial Real Estate Lender

The lending opportunity

Over

$1.5

trillion

of

CRE

debt

is

expected

to

mature

through

2019

(1)

Limited competition for small balance CMBS loans and short term transitional loans

Increasing

CMBS

activity:

market

expects

to

end

2012

with

around

$46

billion

of

issuance,

approximately

a

43%

increase

over

the

$32.7

billion

issued

in

2011

(2)

Equity gap drives bridge and mezzanine lending opportunities

RAIT’s goal

Capitalize on lending opportunity utilizing existing, scalable platform and internal

expertise to originate and underwrite bridge, mezzanine and CMBS

loans of $5

million to $30 million on multi-family, office, retail and light industrial properties

Active credit and risk management

(1)

Morgan Stanley, Bloomberg LP, Foresight Analytics, Trepp and Intex 

(2)

Commercial Mortgage Alert and CRE Finance Council

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Commercial Real Estate Lender: CMBS

CMBS loans

Funding

Barclays $150 million

Citibank $100 million

Originated

$51

million

and

securitized

$42

million

of

CMBS

loans

from

January

1,

20

12 through

September

30,

2012

CMBS pipeline at approximately $530 million at September 30, 2012

CMBS loans: warehouse providers

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Commercial Real Estate Lender: Bridge &

Mezzanine Lending

Bridge & mezzanine lending

$234 million in transitional loan originations from January 1, 2012 through September

30, 2012

Bridge and mezzanine pipeline at approximately $134 million at September 30, 2012

General terms

–

transitional properties

Bridge loans –

floating rate, fees, approximately 6.5% -

7% coupons

Mezzanine loans -

floating rate, fees, approximately 12%+ coupons

Origination and exit fees

Funding

Senior participations: regional bank participation program

Sourcing: warehouse and credit facilities

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Commercial Real Estate Loan Examples

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Risk Management: Commercial Real Estate

Loan Performance

As of September 30, 2012 ($ in 000s)

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Commercial Real Estate Owner

Directly owned real estate portfolio

Strategy to maximize value over time through increasing occupancy and higher

rental rates

$997 million of CRE properties at September 30, 2012

Assets acquired below replacement cost

Portfolio is internally managed by seasoned property management professionals

Opportunistically acquire properties

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Owned Commercial Real Estate Performance

As of September 30, 2012 ($ in 000s)

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Fee Income: Asset and Property Manager

Asset management

Management fees

Manage approximately $1.8 billion of commercial real estate loans and $1.6

billion of U.S. real estate debt securities

S&P & Morningstar rated primary and special CRE loan servicer

Property management

Property management fees

Jupiter Communities  -

Multi-family focused

50 properties -

11,038 units

CRP Commercial Services -

Office focused

2.7 million square feet

Scalable non-traded REIT platform

Independence Realty Trust, Inc. -

multi-family equity REIT

As of September 30, 2012

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2012 Opportunities for Growth & Stability

Focus on growth & stability through a multi-strategy approach:

Utilizing RAIT’s core real estate platform and management expertise to generate

appropriate risk-adjusted returns by originating, underwriting and managing

commercial real estate loans

Focus on CMBS and transitional loans (bridge and mezzanine loans)

Continue to actively manage credit risk

Effectively manage RAIT’s portfolio of owned real estate to deliver increasing

rental and occupancy rates while managing operating costs

Leveraging RAIT’s capabilities through non-traded REIT platform to grow fee

income and assets under management

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2012-2013 Projected Cash Received from

Investments

(1)

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RAIT Highlights

Multi-strategy business approach for growth and stability

Integrated platform with synergistic business lines

Pipeline of investment opportunities

Improving cash flow and capital access

Stable and growing dividends

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Appendix

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Adjusted Book Value

(1)

Amount

Per Share (2)

Total shareholders' equity, as reported………………………………………………………………………………..

829,852

$        

16.63

$             

Liquidation value of preferred stock (3)……………………………………………………………………………….

(167,958)

(3.37)

RAIT book value…………………………………………………………………………………………………………………….

661,894

13.26

Adjustments:

Taberna securitizations net effect…………………………………………………………………………………..

(533,942)

(10.70)

CRE CDO derivative liabilities…………………………………………………………………………………………..

75,812

1.52

Accumulated depreciation and amortization…………………………………………………………………..

107,658

2.16

Valuation of recurring collateral and property management fees………………...………………..

20,590

0.41

Total adjustments…………………………………………………………………………………………………………………..

(329,882)

(6.61)

Adjusted book value…………………………………………………………………………………………………….

332,012

$        

6.65

$               

As of September 30, 2012

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Recourse Debt Summary

No unsecured, recourse debt maturities until October 2015

(1)

Assumes full exercise of holders’

7.0% convertible senior notes redemption right in April 2016. 

(2)

Includes senior secured notes issued by us with an aggregate principal amount equal to $100,000 with a weighted average coupon of 7.0%, which are eliminated in consolidation

As of September 30, 2012 ($ in 000s)

$-

$-

$-

$19,381

$123,564

$50,000

$25,000

$25,000

$-

$43,771

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

2012

2013

2014

2015

2016 (1)

2017 (2)

2018 (2)

2019 (2)

2020

Thereafter

Recourse Debt Maturities and Redemption Dates

(in 000s)

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CRE Loan Portfolio Statistics

By Property Type

(1)

(1)  Based on book value at 9/30/2012.

By Geographic Region

(1)

Improved credit performance of the loan portfolio

As of September 30, 2012 unless otherwise Indicated ($ in 000s)

Office

43%

Multi-family

24%

Retail

29%

Other

4%

Central

32%

Mid Atlantic

28%

Southeast

13%

West

18%

Northeast

9%

Book Value

Weighted-

Average

Coupon

Range of Maturities

Number

of Loans

Key Statistics

Q3

2012

Q3

2011

Commercial Real Estate (CRE) Loans

Non

-accrual loans

$70,419

$91,833

Commercial mortgages

$672,854

6.7%

Nov.

2012

to Oct. 2022

47

%

change

(23%)

Mezzanine loans

272,856

9.3%

Nov.

2012

to Nov. 2038

86

Reserve for losses

32,738

50,609

Preferred equity interests

63,701

9.7%

Mar. 2014

to Aug. 2025

15

%

change

(35%)

Total CRE Loans

$1,009,411

7.5%

148

Provision for losses

500

500

Other loans

38,651

4.9%

Nov.

2012

to Oct. 2016

2

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Directly Owned Commercial Real Estate

Portfolio Statistics

Net Real Estate Operating Income

Average Effective Rent

(a)

Improved Occupancy and Net Operating Income

Q3 2012

Q3 2011

Rental income

$26,412

$23,635

Real estate operating expenses

14,254

14,563

Net Real Estate Operating Income

$12,158

$9,072

Average Occupancy

84.6%

84.5%

As of September 30, 2012 unless otherwise Indicated ($ in 000s)