Rait Financial Trust (RAS)

We are an internally-managed Maryland real estate investment trust, or REIT, focused on managing a portfolio of commercial real estate (CRE) loans and properties.  As explained further below, we are currently undertaking steps intended to increase RAIT’s liquidity and better position RAIT to meet its financial obligations as they come due.  We were formed in August 1997 and commenced operations in January 1998. We conduct our business through our real estate lending, owning and managing segment concentrated on lending, owning and managing commercial real estate assets throughout the United States.  We incorporate the discussion of this business segment here from Note 17 of Notes to Consolidated Financial Statements set forth in Part II, Item 8, “Financial Statements and Supplementary Data.”