Rait Financial Trust (RAS) 10-Q 2014 Q3 Quarterly report

Exhibit 12.1

RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED SHARE DIVIDENDS

Our ratio of earnings to fixed charges and 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 (loss) 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 our ratio of earnings to fixed charges and preferred share dividends for the nine-month period ended September 30, 2014 and for the five years ended December 31, 2013 (dollars in thousands):

	For the Nine-Month Period Ended September 30, 2014			For the Years Ended December 31
				2013			2012			2011			2010		2009
Net income (loss)	$	(42,895	)	$	(285,364	)	$	(168,341	)	$	(38,457	)	$	110,590	$	(440,141	)
Add back fixed charges:
Interest expense		61,098			70,892			75,317			89,649			96,690		261,824
Earnings before fixed charges and preferred share dividends		18,203			(214,472	)		(93,024	)		51,192			207,280		(178,317	)
Fixed charges and preferred share dividends:
Interest expense		61,098			70,892			75,317			89,649			96,690		261,824
Preferred share dividends		20,628			22,616			14,660			13,649			13,641		13,641
Total fixed charges and preferred share dividends	$	81,726		$	93,508		$	89,977		$	103,298		$	110,331	$	275,465
Ratio of earnings to fixed charges		—	(1)		—	(1)		—	(1)		—	(1)		2.1x		—	(1)
Ratio of earnings to fixed charges and preferred share dividends		—	(2)		—	(2)		—	(2)		—	(2)		1.9x		—	(2)

(1) The dollar amount of the deficiency for the nine-month period ended September 30, 2014 is $42.9 million and the dollar amount of the deficiency for the years ended December 31, 2013, 2012, 2011 and 2009 is $285.4 million, $168.3 million, $38.5 million, and $440.1 million, respectively.

(2) The dollar amount of the deficiency for the nine-month period ended September 30, 2014 is $63.5 million and the dollar amount of the deficiency for the years ended December 31, 2013, 2012, 2011 and 2009 is $308.0 million, $183.0 million, $52.1 million, and $453.8 million, respectively.