Rait Financial Trust (RAS) 10-Q 2012 Q2 Quarterly report

Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED SHARE DIVIDENDS

Our ratio of earnings to fixed charges and preferred share dividends for the periods indicated are set forth below. For purposes of calculating the ratios set forth below, earnings represent net income from continuing operations from our consolidated statements of operations, as adjusted for fixed charges; fixed charges represent interest expense and preferred share dividends represent income or loss allocated to preferred shares from our consolidated statements of operations.

The following table presents our ratio of earnings to fixed charges and preferred share dividends for the six-month period ended June 30, 2012 and for the five years ended December 31, 2011 (dollars in thousands):

	For the Six Months Ended June 30			For the Years Ended December 31
	2012			2011			2010		2009			2008			2007
Net income (loss) from continuing operations	$	(107,234	)	$	(38,457	)	$	110,590	$	(440,141	)	$	(617,130	)	$	(435,991	)
Add back fixed charges:
Interest expense		38,586			89,649			96,690		261,824			486,932			699,892
Earnings before fixed charges and preferred share dividends		(68,648	)		51,192			207,280		(178,317	)		(130,198	)		263,901
Fixed charges and preferred share dividends:
Interest expense		38,586			89,649			96,690		261,824			486,932			699,892
Preferred share dividends		6,829			13,649			13,641		13,641			13,641			11,817
Total fixed charges and preferred share dividends	$	45,415		$	103,298		$	110,331	$	275,465		$	500,573		$	711,709
Ratio of earnings to fixed charges		—	(1)		—	(1)		2.1x		—	(1)		—	(1)		—	(1)
Ratio of earnings to fixed charges and preferred share dividends		—	(2)		—	(2)		1.9x		—	(2)		—	(2)		—	(2)

(1) The dollar amount of the deficiency for the six-month period ended June 30, 2012 is $107.2 million and the dollar amount of the deficiency for the years ended December 31, 2011, 2009, 2008 and 2007 is $38.5 million, $440.1 million, $617.1 million, and $436.0 million, respectively.

(2) The dollar amount of the deficiency for the six-month period ended June 30, 2012 is $114.1 million and the dollar amount of the deficiency for the years ended December 31, 2011, 2009, 2008 and 2007 is $52.1 million, $453.8 million, $630.8 million, and $447.8 million, respectively.

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