Rait Financial Trust (RAS) 8-K Regulation FD Disclosure

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RAIT Financial Trust

Investor Presentation

Full Year 2012

Exhibit 99.1

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Forward Looking Statements &

Non-GAAP Financial Measures

This document and the related presentation may contain forward-looking statements within the meaning of the Private

Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements

about

RAIT

Financial

Trust’s

(“RAIT”)

plans,

objectives,

expectations

and

intentions

with

respect

to

future

operations,

products, dividends, cash from investments and services and other statements that are not historical facts. Forward-

looking statements are sometimes identified by the words “may”, “will”, “should”, “potential”, “predict”, “continue”,

“project”, “guide”, or other similar words or expressions.  These forward-looking statements are based upon the

current beliefs and expectations of RAIT's management and are inherently subject to significant business, economic

and competitive uncertainties and contingencies, many of which are difficult to predict and generally not within RAIT’s

control. In addition, these forward-looking statements are subject to assumptions with respect to future business

strategies and decisions that are subject to change. RAIT does not guarantee that the assumptions underlying such

forward looking statements are free from errors. Actual results may differ materially from the anticipated results

discussed in these forward-looking statements.

The following factors, among others, could cause actual results to differ materially from the anticipated results or

other expectations expressed in the forward-looking statements: the risk factors and other disclosure contained in

filings by RAIT with the Securities and Exchange Commission (“SEC”), including, without limitation, RAIT’s most recent

annual and quarterly reports filed with SEC. RAIT’s SEC filings are available on RAIT’s website at www.raitft.com.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of

this presentation. All subsequent written and oral forward-looking statements attributable to RAIT or any person

acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in

this

document

and

the

related

presentation.

Except

to

the

extent

required

by

applicable

law

or

regulation,

RAIT

undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date

of this presentation or to reflect the occurrence of unanticipated events.

This document and the related presentation may contain non-U.S. generally accepted accounting principles (“GAAP”)

financial measures.  A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP

financial measure is included in this document and/or RAIT’s most recent annual and quarterly reports. 

This presentation is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer

to buy any securities of RAIT or Independence Realty Trust, Inc.

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About RAIT

RAIT Financial Trust (“RAIT”) (NYSE: RAS), is a multi-strategy commercial real

estate company organized as an internally-managed REIT

Scalable commercial real estate platform with over 350 employees

$3.6 billion of assets under management

Seasoned executive team with strong real estate experience

Increased quarterly common dividend to $0.10 for the fourth quarter 2012 –

a 67% increase from the fourth quarter 2011

No corporate, unsecured, recourse debt maturities until April 2016

As of December 31, 2012

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Multi-Strategy Business Approach

Commercial real estate lender

“One Source”

financing option to middle market

Comprehensive lending platform -

originate, underwrite, close & service CMBS

and transitional CRE loans

$1.0 billion loan portfolio

Commercial real estate owner

Maximize value of the portfolio over time through increased occupancy and

rental rates

$1.0 billion portfolio (59 properties): 61% multi-family, 26% office, 8% retail

and 5% other

Adds stability to the asset mix and hedge against inflation

Asset and property manager

S&P & Morningstar rated primary and special loan servicer

Full service property management capabilities

Asset Manager –

earning management fees

Non-traded REIT sponsor: Scalable non-traded REIT platform

As of December 31, 2012

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Commercial Real Estate Lender

The lending opportunity

Over

$1.5

trillion

of

CRE

debt

is

expected

to

mature

through

2019

(1)

Limited competition for small balance CMBS loans and short term transitional loans

Increasing

CMBS

activity:

market

expects

to

end

2013

with

around

$65

billion

of

issuance,

approximately

a

35%

increase

over

the

$48

billion

issued

in

2012

(2)

Equity gap drives bridge and mezzanine lending opportunities

RAIT’s goal

Capitalize on lending opportunity utilizing existing, scalable platform and internal

expertise

to

originate

and

underwrite

bridge,

mezzanine

and

CMBS

loans

of

$5

million to $30 million on multi-family, office, retail and light industrial properties

Active credit and risk management

(1)

Morgan Stanley, Bloomberg LP, Foresight Analytics, Trepp and Intex

(2)

Commercial Mortgage Alert

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Commercial Real Estate Lender: CMBS

CMBS loans

Funding

Funded $119.3 million and sold $98 million of CMBS loans in 2012

CMBS pipeline at approximately $740 million at March 13, 2013

CMBS loans: warehouse providers

Barclays $150 million

Citibank $100 million

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Commercial Real Estate Lender: Bridge &

Mezzanine Lending

Bridge & mezzanine lending

Funded $240.1 million in bridge and $15.4 million in mezzanine loans in 2012

Bridge and mezzanine pipeline at approximately $283 million at March 13, 2013

General terms

–

transitional properties

Bridge

loans

–

floating

rate,

fees,

approximately

6.5%

-

7%

coupons

Mezzanine

loans

-

floating

rate,

fees,

approximately

12%+

coupons

Origination and exit fees

Funding

$150 million facility with a subsidiary of Credit Suisse AG

Senior participations: regional bank participation program

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Commercial Real Estate Loan Examples

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Risk Management: Commercial Real Estate

Loan Performance

As of December 31, 2012 ($ in 000s)

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Commercial Real Estate Owner

Directly owned real estate portfolio

Strategy to maximize value over time through increasing occupancy and higher

rental rates

$1.0 billion of CRE properties at December 31, 2012

Portfolio is internally managed by seasoned property management professionals

5% average effective rent growth in multi-family portfolio from December 31,

2011 to December 31, 2012

Opportunistically acquire properties

RAIT subsidiary acquired Runaway Bay apartments in Indianapolis,

Indiana

$15.8 million acquisition at a 6.9% cap rate; $10.2 million first mortgage

at 3.59%; expected 15% internal rate of return

192 garden style apartments

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Directly Owned Commercial Real Estate

Portfolio Statistics

Net Real Estate Operating Income

Average Effective Rent

(a)

a)

Based

on

properties

owned

as

of

December

31,

2012.

b)

Average

effective

rent

is

rent

per

unit

per

month.

c)

Average

effective

rent

is

rent

per

square

foot

per

year.

Improved Occupancy and Net Operating Income

As of December 31, 2012 unless otherwise Indicated ($ in 000s)

Q4 2012

Q4 2011

Rental income

$27,089

$24,817

Real estate operating expenses

14,905

14,314

Net Real Estate Operating Income

$12,184

$10,503

Average Occupancy

85.1%

83.6%

Property Type

Q4 2012

Q4 2011

% Variance

Multi-family

(b)

$718

$681

5%

Office

(c)

18.82

20.85

-10%

Retail

(c)

12.53

9.73

29%

Investments

in Real

Estate

Quantity

Number of

Properties

Average Physical Occupancy

12/31/2012

12/31/2011

Multi-family real estate properties

$613,888

8,206

units

34

90.0%

88.5%

Office real estate properties

271,847

2,015,524

sq. ft.

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72.8%

69.2%

Retail real estate properties

82,081

1,422,572

sq. ft.

4

73.2%

68.0%

Parcels of land

47,765

21.92

acres

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–

–

Total

$1,015,581

59

85.1%

83.6%

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Directly Owned Commercial Real Estate

Portfolio Statistics

(a)

Based on properties owned as of  December 31, 2012.

.

Retail

8.3%

Other

5.2%

Investments in Real Estate

Property Types

(a)

Central

32.0%

Investments in Real Estate

Geographic U.S. Regions

(a)

Multi-family

60.7%

Office

25.8%

West

33.8%

Southeast

28.6%

Mid

-Atlantic

5.6%

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Fee Income: Asset and Property Manager

Asset management

Management fees

Manage approximately $2 billion of commercial real estate loans and $1.6 billion

of U.S. real estate debt securities

S&P & Morningstar rated primary and special CRE loan servicer

Property management

Property management fees

Jupiter Communities  -

Multi-family focused

49 properties –

10,649 units

CRP Commercial Services -

Office focused

2.7 million square feet

Scalable non-traded REIT platform

Independence

Realty

Trust,

Inc.

-

multi-family

equity

REIT

As of December 31, 2012

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2013 Opportunities for Growth & Stability

Focus on growth & stability through a multi-strategy approach:

Utilizing RAIT’s core real estate platform and management expertise to generate

appropriate risk-adjusted returns by originating, underwriting and managing

commercial real estate loans

Grow cash flow through accretive capital deployment

Focus on CMBS and transitional loans (bridge and mezzanine loans)

Continue to actively manage credit risk

Effectively manage RAIT’s portfolio of owned real estate to deliver increasing

rental and occupancy rates while managing operating costs

Leveraging RAIT’s capabilities through non-traded REIT platform to grow fee

income and assets under management

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2013 Projected Cash Received from

Investments

(1)

(1)

Constitutes forward-looking information.  Actual full 2013 projected cash received from investments and each individual line item presented herein, could vary significantly from the

projections presented.  The above projections assume: RAIT does not raise any other capital and fully deploys capital raised from Almanac  affiliate before the end of 2013; Investment

portfolios do not experience significant loan repayments; RAIT continues to receive its securitization collateral management fees and generates property management fees and loan

origination

fees

from

third

parties

at

historical

levels;

RAIT’s

sponsored

non-traded

REITs

experience

growth

in

their

investment

portfolios

by

the

end

of

the

period

covered

and

the

identified cash uses remain at historical levels.

($'s in millions, except per share amounts)

Projected In-flows

178

$ 

-

$196

Less: CRE and Property level interest costs

(52)

Less: Corporate interest and preferred dividends

(35)

Less: General and administrative costs

(34)

-

(35)

Net cash flow available to common shareholders

$57

$74

Per Share

0.95

$

1.23

$

2013

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RAIT Highlights

Multi-strategy business approach for growth and stability

Improving cash flow and capital access

Stable and growing dividends

Integrated platform with synergistic business lines

Strong Pipeline of investment opportunities

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Appendix

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Adjusted Book Value

(1)

(1)

Management views adjusted book value as a useful and appropriate

supplement to shareholders’

equity and book value per share. The measure serves as an additional measure of our

value because it facilitates evaluation of us without the effects of various items that we are required to record in accordance with GAAP but which have limited economic impact on our

business.

Those adjustments primarily reflect the effect of consolidated securitizations where we do not currently receive cash flows on our retained interests, accumulated depreciation and

amortization, the valuation of long-term derivative instruments and a valuation of our recurring collateral and property management fees.  Adjusted book value is a non-GAAP financial

measurement,

and

does

not

purport

to

be

an

alternative

to

reported

shareholders’

equity,

determined

in

accordance

with

GAAP,

as

a

measure

of

book

value.

Adjusted

book

value

should

be

reviewed

in

connection

with

shareholders’

equity

as

set

forth

in

our

consolidated

balance

sheets,

to

help

analyze

our

value

to

investors.

Adjusted

book

value

may

be

defined

in

various

ways

throughout

the

REIT

industry.

Investors

should

consider

these

differences

when

comparing

our

adjusted

book

value

to

that

of

other

REITs.

(2)

Based on 58,913,142 common shares outstanding as of December 31,

2012.

(3)

Based

on

3,124,288

Series

A

preferred

shares,

2,288,465

Series

B

preferred

shares,

and

1,640,100

Series

C

preferred

shares

outstanding

as

of

December

31,

2012,

all

of

which

have

a

liquidation preference of $25.00 per share.

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Recourse Debt Summary

No unsecured, recourse debt maturities until April 2016

(1)

In

January

2013,

we

prepaid

the

$19.4

million

junior

subordinated

note.

(2)

Assumes full exercise of holders’

7.0% convertible senior notes redemption right in April 2016. 

(3)

Includes

senior

secured

notes

issued

by

us

with

an

aggregate

principal

amount

equal

to

$94,000

with

a

weighted

average

coupon

of

7.0%,

which

are

eliminated

in

consolidation

As of December 31, 2012

$-

$-

$19,381

$123,090

$47,000

$23,500

$23,500

$-

$43,771

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

2013

2014

2015 (1)

2016 (2)

2017 (3)

2018 (3)

2019 (3)

2020

Thereafter

Recourse Debt Maturities and Redemption Dates

(in 000s)

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CRE Loan Portfolio Statistics

By Property Type

(1)

(1)  Based on book value at 12/31/2012.

By Geographic Region

(1)

Improved credit performance of the loan portfolio

As of December 31, 2012 unless otherwise Indicated ($ in 000s)

Office

43%

Multi-family

25%

Retail

28%

Other

4%

Central

32%

Mid Atlantic

29%

Southeast

12%

West

17%

Northeast

10%

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Owned Commercial Real Estate Performance

As of December 31, 2012 ($ in 000s)