RAIT Financial Trust

Schedule IV

Mortgage Loans on Real Estate

As of December 31, 2013

(Dollars in thousands)

(1) Summary of Commercial Mortgages, Mezzanine Loans, Other Loans and Preferred Equity Interests


Description of mortgages	Number of Loans		Interest Rate						Maturity Date				Principal				Carrying Amount of Mortgages
Description of mortgages	Number of Loans		Lowest			Highest			Earliest		Latest		Lowest		Highest		Carrying Amount of Mortgages
Commercial mortgages
Multi-family		7		5.0	%		7.8	%		11/30/16		1/1/24	$	5,500	$	29,493	$	105,451
Office		27		5.3	%		8.0	%		2/9/14		1/1/24		4,575		43,196		320,240
Retail		17		5.0	%		11.2	%		9/9/14		1/1/29		801		80,179		292,853
Other		8		4.5	%		8.0	%		7/30/14		1/1/24		2,225		15,500		54,725

Subtotal		59		4.5	%		11.2	%		2/9/14		1/1/29		801		80,179		773,269
Mezzanine loans
Multi-family		28		4.1	%		14.5	%		3/1/14		4/1/24		100		12,339		61,099
Office		35		6.0	%		12.5	%		4/1/14		1/2/29		151		24,909		123,191
Retail		11		0.5	%(b)		14.4	%		5/10/15		12/1/22		192		25,860		59,743
Other		7		3.7	%		12.5	%		9/1/15		8/31/21		545		13,572		21,728

Subtotal		81		0.5	%		14.5	%		3/1/14		1/2/29		100		25,860		265,761
Preferred equity interests
Multi-family		8		4.0	%		16.0	%		2/11/16		8/18/25		884		8,917		36,390
Office		2		0.0	%(c)		10.5	%		5/1/15		3/11/17		3,650		7,750		15,760
Retail		1		12.0	%		12.0	%		9/30/16		9/30/16		1,300		1,300		1,300

Subtotal		11		0.0	%		16.0	%		5/1/15		8/18/25		884		8,917		53,450
Other loans
Multi-family		1		7.2	%		7.2	%		3/1/14		3/1/14		10,487		10,487		10,487
Office		1		2.8	%		2.8	%		10/30/16		10/30/16		20,138		20,138		20,210

Subtotal		2		2.8	%		7.2	%		3/1/14		10/30/16		10,487		20,138		30,697
Total commercial mortgages, mezzanine loans, preferred equity interests and other loans		153		0.0	%		16.0	%		2/9/14		1/2/29	$	100	$	80,179	$	1,123,177

(a)	The tax basis of the commercial mortgages, mezzanine loans, other loans and preferred equity interests approximates the carrying amount.

(b)	Relates to a $7.8 million commercial real estate loan that was restructured in 2011 to reduce the interest rate from 10.25% to 0.5%.

(c)	Relates to a $3.7 million and a $4.4 million equity investments where there is no contractual interest; however, we receive returns based on the performance of the underlying real estate property.

(d)	Reconciliation of carrying amount of commercial mortgages, mezzanine loans, other loans and preferred equity interests:


	For the Year Ended December 31, 2013			For the Year Ended December 31, 2012
Balance, beginning of period	$	1,076,360		$	997,412
Additions during period:
Investments in loans		589,902			356,197
Accretion of discount		7,828			3,192
Deductions during period:
Collections of principal		(486,369	)		(238,015	)
Conversion of loans to real estate owned property and charge-offs		(64,544	)		(42,426	)

Balance, end of period:	$	1,123,177		$	1,076,360

(a)	Summary of Commercial Mortgages, Mezzanine Loans, Preferred Equity and Other Loans by Geographic Location:


Location by State	Number of Loans		Interest Rate						Principal				Total Carrying Amount of Mortgages (a)
Location by State	Number of Loans		Lowest			Highest			Lowest		Highest		Total Carrying Amount of Mortgages (a)
Various States		8		0.5	%(a)		12.5	%	$	963	$	80,179	$	203,363
Texas		31		3.7	%		14.5	%		244		25,860		190,552
Florida		14		4.1	%		12.0	%		192		24,974		133,548
Pennsylvania		14		5.0	%		12.5	%		151		29,493		124,981
California		13		0.0	%(b)		12.5	%		245		12,125		69,217
Ohio		5		6.1	%		12.5	%		430		43,196		64,598
Colorado		3		6.5	%		12.0	%		3,000		26,085		32,935
Massachusetts		2		5.2	%		7.2	%		13,572		18,500		31,160
New York		8		8.5	%		12.5	%		731		7,750		29,916
Wisconsin		12		6.0	%		12.5	%		249		13,000		28,342
Arizona		6		5.0	%		12.1	%		100		11,750		27,859
Oregon		1		6.3	%		6.3	%		23,500		23,500		23,500
Alabama		3		5.0	%		7.0	%		2,603		13,500		23,298
Minnesota		2		5.5	%		16.0	%		1,955		21,000		22,955
Tennessee		3		4.0	%		11.0	%		1,230		7,250		14,639
Maryland		3		6.6	%		14.5	%		1,373		9,151		18,024
Kentucky		3		5.2	%		12.5	%		241		12,000		13,441
Illinois		2		6.8	%		12.5	%		210		13,000		13,210
New Jersey		4		5.7	%		12.0	%		811		6,750		12,649
Georgia		4		6.0	%		12.5	%		389		7,000		10,855
Connecticut		1		12.0	%		12.0	%		8,302		8,302		8,302
Michigan		2		7.3	%		12.0	%		1,300		6,550		7,850
Idaho		1		7.5	%		7.5	%		6,500		6,500		6,500
South Carolina		1		7.0	%		7.0	%		4,000		4,000		4,000
Indiana		3		12.0	%		12.5	%		363		1,568		2,999
Missouri		1		9.2	%		9.2	%		2,600		2,600		2,600
Mississippi		1		12.5	%		12.5	%		820		820		820
Delaware		1		12.5	%		12.5	%		666		666		666
Virginia		1		12.5	%		12.5	%		398		398		398

		153		0.0	%		16.0	%	$	100	$	80,179	$	1,123,177

(a)	Relates to a $7.8 million commercial real estate loan that was restructured in 2011 to reduce the interest rate from 10.25% to 0.5%.

(b)	Relates to a $3.7 million and a $4.4 million equity investments where there is no contractual interest; however, we receive returns based on the performance of the underlying real estate property.