Rait Financial Trust (RAS) 10-Q 2010 Q3 Quarterly report

Exhibit 99.3

Item 6. Selected Financial Data

The following selected financial data information should be read in conjunction with Item 7—“Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and our consolidated financial statements, including the notes thereto, included elsewhere herein (dollars in thousands, except share and per share data).

	As of and For the Years Ended December 31
	2009			2008			2007			2006			2005
Operating Data:
Net interest margin	$	126,375		$	206,001		$	194,621		$	76,806		$	73,241
Rental income		44,637			17,425			11,291			12,639			12,164
Total revenue		197,510			244,783			231,637			103,832			92,448
Real estate operating expenses		(41,399	)		(14,781	)		(9,958	)		(9,198	)		(7,229	)
Provision for losses		(226,567	)		(162,783	)		(21,721	)		(2,499	)		—
Asset impairments		(46,015	)		(67,052	)		(517,452	)		—			—
Total expenses		(384,451	)		(319,623	)		(686,660	)		(34,720	)		(17,752	)
Change in fair value of financial instruments		1,563			(552,437	)		—			—			—
Income (loss) from continuing operations		(440,141	)		(617,130	)		(435,991	)		74,704			75,074
Net income (loss) allocable to common shares		(441,203	)		(443,246	)		(379,588	)		67,839			67,951
Earnings (loss) per share from continuing operations
Basic	$	(6.76	)	$	(6.96	)	$	(6.16	)	$	2.11		$	2.48
Diluted	$	(6.76	)	$	(6.96	)	$	(6.16	)	$	2.09		$	2.46
Earnings (loss) per share:
Basic	$	(6.77	)	$	(6.99	)	$	(6.18	)	$	2.31		$	2.59
Diluted	$	(6.77	)	$	(6.99	)	$	(6.18	)	$	2.29		$	2.57
Balance Sheet Data:
Investments in mortgages and loans, net	$	1,380,957		$	5,468,064		$	6,378,050		$	5,922,550		$	714,428
Investments in real estate		738,235			350,487			117,238			61,432			44,958
Investments in securities		694,897			1,920,883			3,827,800			5,138,311			—
Total assets		3,094,976			8,151,450			11,057,580			12,060,506			1,024,585
Total indebtedness		2,077,123			6,102,890			10,040,925			10,452,191			329,859
Total liabilities		2,325,055			6,882,109			10,474,982			10,739,829			414,890
Total equity		769,921			1,269,341			582,598			1,320,677			609,695
	As of and For the Years Ended December 31
	2009			2008			2007			2006			2005
Other Data:
Common shares outstanding, at period end, including unvested restricted share awards		74,420,598			64,842,571			61,018,231			52,151,412			27,899,065
Book value per share	$	8.08		$	14.09		$	6.81		$	20.54		$	17.34
Ratio of earnings to fixed charges and preferred share dividends		—	(1)		—	(1)		—	(1)		1.9x			3.8x
Dividends declared per share	$	—		$	1.27		$	2.56		$	2.70		$	2.43

(1) The ratio of earnings to fixed charges and preferred share dividends for the years ended December 31, 2009, 2008 and 2007 is deficient by $453.8 million, $630.8 million and $447.8 million, respectively.

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