NOTE 8: VARIABLE INTEREST ENTITIES

The determination of when to consolidate a VIE is based on the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance together with either the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. On January 1, 2016, we adopted a new accounting standard related to consolidation. Refer to NOTE 2: Summary of Significant Accounting Policies for further information. We evaluated our investments and determined that, as of March 31, 2016 and December 31, 2015, our consolidated VIEs were: RAIT I, RAIT II, IRT, and RAIT VIE Properties (Willow Grove, Cherry Hill, South Terrace, Cole’s Crossing, McDowell, and our ten industrial properties). Also, as of March 31, 2016, the venture described in Note 5: Indebtedness was determined to be a VIE (RAIT Venture VIE). The following table presents the assets and liabilities of our consolidated VIEs as of each respective date.

	As of March 31, 2016
	RAIT Securitizations			IRT			RAIT VIE Properties			RAIT Venture VIE		Total
Assets
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	$	1,330,285		$	—		$	—		$	346,385	$	1,676,670
Allowance for losses		—			—			—			—		0
Total investments in mortgages and loans		1,330,285			—			—			346,385		1,676,670
Investments in real estate
Investments in real estate		—			1,357,338			279,008			—		1,636,346
Accumulated depreciation		—			(44,422	)		(28,874	)		—		(73,296	)
Total investments in real estate		—			1,312,916			250,134			—		1,563,050
Cash and cash equivalents		—			21,924			1,761			722		24,407
Restricted cash		11,295			7,015			3,290			3		21,603
Accrued interest receivable		76,722			—			—			1,555		78,277
Other assets		11,735			2,795			13,492			—		28,022
Intangible assets
Intangible assets		—			15,287			5,245			—		20,532
Accumulated amortization		—			(15,287	)		(2,196	)		—		(17,483	)
Total intangible assets		—			—			3,049			—		3,049
Total assets	$	1,430,037		$	1,344,650		$	271,726		$	348,665	$	3,395,078
Liabilities and Equity
Indebtedness	$	1,146,378		$	940,336		$	273,548		$	307,704	$	2,667,966
Accrued interest payable		456			1,175			15,935			613		18,179
Accounts payable and accrued expenses		2			16,089			5,676			—		21,767
Derivative liabilities		2,401			—			—			—		2,401
Deferred taxes, borrowers’ escrows and other liabilities		—			6,078			22,194			630		28,902
Total liabilities		1,149,237			963,678			317,353			308,947		2,739,215
Equity:
Shareholders’ equity:
Accumulated other comprehensive income (loss)		(2,409	)		(26	)		—			—		(2,435	)
RAIT investment		118,291			75,542			17,887			38,628		250,348
Retained earnings (deficit)		164,918			(23,090	)		(62,768	)		1,090		80,150
Total shareholders’ equity		280,800			52,426			(44,881	)		39,718		328,063
Noncontrolling Interests		—			328,546			(746	)		—		327,800
Total liabilities and equity	$	1,430,037		$	1,344,650		$	271,726		$	348,665	$	3,395,078

	As of December 31, 2015
	RAIT Securitizations			IRT			RAIT VIE Properties			Total
Assets
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	$	1,358,497		$	—		$	—		$	1,358,497
Allowance for losses		—			—			—			—
Total investments in mortgages and loans		1,358,497			—			—			1,358,497
Investments in real estate
Investments in real estate		—			1,372,015			278,774			1,650,789
Accumulated depreciation		—			(39,638	)		(26,398	)		(66,036	)
Total investments in real estate		—			1,332,377			252,376			1,584,753
Cash and cash equivalents		—			38,301			1,589			39,890
Restricted cash		12,718			5,413			2,859			20,990
Accrued interest receivable		73,368			—			—			73,368
Other assets		11,539			3,362			13,740			28,641
Intangible assets
Intangible assets		—			15,287			5,245			20,532
Accumulated amortization		—			(11,551	)		(1,446	)		(12,997	)
Total intangible assets		—			3,736			3,799			7,535
Total assets	$	1,456,122		$	1,383,189		$	274,363		$	3,113,674
Liabilities and Equity
Indebtedness	$	1,178,794		$	966,611		$	273,766		$	2,419,171
Accrued interest payable		445			1,239			13,997			15,681
Accounts payable and accrued expenses		8			19,304			6,000			25,312
Derivative liabilities		4,672			—			—			4,672
Deferred taxes, borrowers’ escrows and other liabilities		—			6,004			22,214			28,218
Total liabilities		1,183,919			993,158			315,977			2,493,054
Equity:
Shareholders’ equity:
Accumulated other comprehensive income (loss)		(4,691	)		(8	)		—			(4,699	)
RAIT investment		115,810			68,273			17,420			201,503
Retained earnings (deficit)		161,084			(14,499	)		(59,454	)		87,131
Total shareholders’ equity		272,203			53,766			(42,034	)		283,935
Noncontrolling Interests		—			336,265			420			336,685
Total liabilities and equity	$	1,456,122		$	1,383,189		$	274,363		$	3,113,674

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.