Rait Financial Trust (RAS) 10-Q 2015 Q2 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 six-month period ended June 30, 2015 and for the five years ended December 31, 2014 (dollars in thousands):

	For the Six-Month Period Ended		For the Years Ended December 31
	June 30, 2015		2014			2013			2012			2011			2010
Net income (loss)	$	26,707	$	(289,975	)	$	(285,364	)	$	(168,341	)	$	(38,457	)	$	110,590
Add back fixed charges:
Interest expense		53,852		85,701			70,892			75,317			89,649			96,690
Earnings before fixed charges and preferred share dividends		80,559		(204,274	)		(214,472	)		(93,024	)		51,192			207,280
Fixed charges and preferred share dividends:
Interest expense		53,852		85,701			70,892			75,317			89,649			96,690
Preferred share dividends		16,080		28,993			22,616			14,660			13,649			13,641
Total fixed charges and preferred share dividends	$	69,932	$	114,694		$	93,508		$	89,977		$	103,298		$	110,331
Ratio of earnings to fixed charges		1.5x		—	(1)		—	(1)		—	(1)		—	(1)		2.1x
Ratio of earnings to fixed charges and preferred share dividends		1.2x		—	(2)		—	(2)		—	(2)		—	(2)		1.9x

(1) The dollar amount of the deficiency for the years ended December 31, 2014, 2013, 2012 and 2011 is $290.0 million, $285.4 million, $168.3 million and $38.5 million, respectively.

(2) The dollar amount of the deficiency for the years ended December 31, 2014, 2013, 2012 and 2011 is $319.0 million, $308.0 million $183.0 million and $52.1 million, respectively.