Rait Financial Trust (RAS) 10-Q 2013 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, 2013 and for the five years ended December 31, 2012 (dollars in thousands):

	For the Six  Month Period Ended June 30, 2013			For the Years Ended December 31
				2012			2011			2010		2009			2008
Net income (loss) from continuing operations	$	(145,679	)	$	(168,341	)	$	(38,457	)	$	110,590	$	(440,141	)	$	(617,130	)
Add back fixed charges:
Interest expense		34,405			75,317			89,649			96,690		261,824			486,932
Earnings before fixed charges and preferred share dividends		(111,274	)		(93,024	)		51,192			207,280		(178,317	)		(130,198	)
Fixed charges and preferred share dividends:
Interest expense		34,405			75,317			89,649			96,690		261,824			486,932
Preferred share dividends		10,807			14,660			13,649			13,641		13,641			13,641
Total fixed charges and preferred share dividends	$	45,212		$	89,977		$	103,298		$	110,331	$	275,465		$	500,573
Ratio of earnings to fixed charges		—	(1)		—	(1)		—	(1)		2.1x		—	(1)		—	(1)
Ratio of earnings to fixed charges and preferred share dividends		—	(2)		—	(2)		—	(2)		1.9x		—	(2)		—	(2)

(1) The dollar amount of the deficiency for the six-month period ended June 30, 2013 is $145.7 million and the dollar amount of the deficiency for the years ended December 31, 2012, 2011, 2009 and 2008 is $168.3 million, $38.5 million, $440.1 million, and $617.1 million, respectively.

(2) The dollar amount of the deficiency for the six-month period ended June 30, 2013 is $156.5 million and the dollar amount of the deficiency for the years ended December 31, 2012, 2011, 2009 and 2008 is $183.0 million, $52.1 million, $453.8 million, and $630.8 million, respectively.