EX-12.1

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 three-month period ended March 31, 2016 and for the five years ended December 31, 2015 (dollars in thousands):

	For the Three-Month
	Period Ended			For the Years Ended December 31
	March 31, 2016			2015			2014				2013				2012				2011
Net income (loss)	$	(10,503	)	$	63,493		$	(289,975	)		$	(285,364	)		$	(168,341	)		$	(38,457	)
Add back fixed charges:
Interest expense		27,006			113,588			85,701				70,892				75,317				89,649
Earnings before fixed charges and preferred share dividends	$	16,503		$	177,081		$	(204,274	)		$	(214,472	)			(93,024	)			51,192
Fixed charges and preferred share dividends:
Interest expense		27,006			113,588			85,701				70,892				75,317				89,649
Preferred share dividends		8,520			32,830			28,993				22,616				14,660				13,649
Total fixed charges and preferred share dividends	$	35,526		$	146,418		$	114,694			$	93,508			$	89,977			$	103,298
Ratio of earnings to fixed charges		0.6	x		1.6	x	—			(1)	—			(1)	—			(1)	—			(1)
Ratio of earnings to fixed charges and preferred share dividends		0.5	x		1.2	x	—			(2)	—			(2)	—			(2)	—			(2)

(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.

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES

EXCHANGE ACT OF 1934, AS AMENDED

I, Scott F. Schaeffer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of RAIT Financial Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2016		/s/ Scott F. Schaeffer
	Name:	Scott F. Schaeffer
	Title:	Chairman of the Board and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES

EXCHANGE ACT OF 1934, AS AMENDED

I, James J. Sebra, certify that:

1. I have reviewed this quarterly report on Form 10-Q of RAIT Financial Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2016		/s/ James J. Sebra
	Name:	James J. Sebra
	Title:	Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of RAIT Financial Trust (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Scott F. Schaeffer, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Scott F. Schaeffer

Scott F. Schaeffer

Chairman of the Board and Chief Executive Officer

Date: May 9, 2016

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of RAIT Financial Trust (the “Company”) on Form 10-Q for the quarterly period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, James J. Sebra, Chief Financial Officer and Treasurer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ James J. Sebra

James J. Sebra

Chief Financial Officer and Treasurer

Date: May 9, 2016

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 06, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	RAS
Entity Registrant Name	RAIT FINANCIAL TRUST
Entity Central Index Key	0001045425
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		91,870,571

XML

Consolidated Balance Sheets - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Investment in mortgages and loans:
Commercial mortgages, mezzanine loans, and preferred equity interests		$ 1,612,632	$ 1,623,583
Allowance for loan losses		(18,165)	(17,097)
Total investment in mortgages and loans, net		1,594,467	1,606,486
Investments in real estate, net of accumulated depreciation of $209,421 and $198,326, respectively	[1]	2,278,213	2,319,319
Cash and cash equivalents		94,569	125,886
Restricted cash		200,166	213,012
Accrued interest receivable		49,987	47,343
Other assets		73,670	71,207
Intangible assets, net of accumulated amortization of $32,228 and $26,307, respectively		26,698	32,675
Total assets		4,317,770	4,415,928
Liabilities and Equity
Indebtedness, net of unamortized discount and deferred financing costs of $56,998 and $61,941, respectively		3,267,230	3,328,082
Accrued interest payable		13,160	9,834
Accounts payable and accrued expenses		29,989	39,672
Derivative liabilities		4,181	4,727
Deferred taxes, borrowers’ escrows and other liabilities		203,612	203,477
Total liabilities		3,518,172	3,585,792
Series D cumulative redeemable preferred shares, $0.01 par value per share, 4,000,000 shares authorized, 4,000,000 and 4,000,000 shares issued and outstanding, respectively		87,085	85,395
Shareholders’ equity:
Common shares, $0.03 par value per share, 200,000,000 shares authorized, 91,870,571 and 91,586,767 issued and outstanding, respectively, including 770,536 and 742,764 unvested restricted common share awards, respectively		2,756	2,748
Additional paid in capital		2,087,913	2,087,137
Accumulated other comprehensive income (loss)		(2,434)	(4,699)
Retained earnings (deficit)		(1,707,143)	(1,680,751)
Total shareholders’ equity		381,185	404,528
Noncontrolling interests		331,328	340,213
Total equity		712,513	744,741
Total liabilities and equity		4,317,770	4,415,928
7.75% Series A Cumulative Redeemable Preferred Stock
Shareholders’ equity:
Preferred shares, $0.01 par value per share		53	53
Total equity		53	53
8.375% Series B Cumulative Redeemable Preferred Stock
Shareholders’ equity:
Preferred shares, $0.01 par value per share		23	23
Total equity		23	23
8.875% Series C Cumulative Redeemable Preferred Stock
Shareholders’ equity:
Preferred shares, $0.01 par value per share		17	17
Total equity		$ 17	$ 17
Series E Cumulative Redeemable Preferred Stock
Shareholders’ equity:
Preferred shares, $0.01 par value per share

[1] As of March 31, 2016, four of our multifamily real estate properties, two of IRT’s multifamily real estate properties and one parcel of land were considered held-for-sale. The carrying amount of our multifamily properties was $36,301. The carrying amount of the IRT properties was $39,347. The carrying amount of the parcel of land was $1,470.

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Real estate, accumulated depreciation	[1]	$ 209,421	$ 198,326
Intangible assets, accumulated amortization		32,228	26,307
Indebtedness, unamortized discount and deferred financing costs		$ 56,998	$ 61,941
Preferred shares, authorized		25,000,000	25,000,000
Common shares, par value		$ 0.03	$ 0.03
Common shares, shares authorized		200,000,000	200,000,000
Common shares, shares issued		91,870,571	91,586,767
Common shares, shares outstanding		91,870,571	91,586,767
Unvested restricted common share awards		770,536	742,764
Series D Cumulative Redeemable Preferred Stock
Series D cumulative redeemable preferred shares, par value		$ 0.01	$ 0.01
Series D cumulative redeemable preferred shares, shares authorized		4,000,000	4,000,000
Series D cumulative redeemable preferred shares, shares issued		4,000,000	4,000,000
Series D cumulative redeemable preferred shares, shares outstanding		4,000,000	4,000,000
7.75% Series A Cumulative Redeemable Preferred Stock
Preferred shares, authorized		8,069,288	8,069,288
Preferred shares, dividend rate		7.75%	7.75%
Cumulative redeemable preferred shares, liquidation preference		$ 25.00	$ 25.00
Cumulative redeemable preferred shares, shares issued		5,306,084	5,306,084
Cumulative redeemable preferred shares, shares outstanding		5,306,084	5,306,084
Preferred shares, par value		$ 0.01	$ 0.01
8.375% Series B Cumulative Redeemable Preferred Stock
Preferred shares, authorized		4,300,000	4,300,000
Preferred shares, dividend rate		8.375%	8.375%
Cumulative redeemable preferred shares, liquidation preference		$ 25.00	$ 25.00
Cumulative redeemable preferred shares, shares issued		2,340,969	2,340,969
Cumulative redeemable preferred shares, shares outstanding		2,340,969	2,340,969
Preferred shares, par value		$ 0.01	$ 0.01
8.875% Series C Cumulative Redeemable Preferred Stock
Preferred shares, authorized		3,600,000	3,600,000
Preferred shares, dividend rate		8.875%	8.875%
Cumulative redeemable preferred shares, liquidation preference		$ 25.00	$ 25.00
Cumulative redeemable preferred shares, shares issued		1,640,425	1,640,425
Cumulative redeemable preferred shares, shares outstanding		1,640,425	1,640,425
Preferred shares, par value		$ 0.01	$ 0.01
Series E Cumulative Redeemable Preferred Stock
Preferred shares, authorized		4,000,000	4,000,000
Preferred shares, par value		$ 0.01	$ 0.01

[1] As of March 31, 2016, includes properties owned by Independence Realty Trust, Inc., or IRT, with a book value of $1,357,338 and accumulated depreciation of $44,422. As of December 31, 2015, includes properties owned by IRT, with a book value of $1,372,015 and accumulated depreciation of $39,638.

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Investment interest income	$ 25,802	$ 23,248
Investment interest expense	(7,896)	(6,914)
Net interest margin	17,906	16,334
Property income	68,722	53,274
Fee and other income	2,852	5,594
Total revenue	89,480	75,202
Expenses:
Interest expense	27,006	19,683
Real estate operating expense	30,706	25,277
Compensation expense	7,075	6,108
General and administrative expense	5,063	5,400
Acquisition expense	269	957
Provision for loan losses	1,325	2,000
Depreciation and amortization expense	24,276	19,024
Total expenses	95,720	78,449
Operating (Loss) Income	(6,240)	(3,247)
Interest and other income (expense), net	61	(395)
Gains (losses) on assets	2,258
Gain on IRT merger with TSRE	91
Gains (losses) on extinguishments of debt	344
Asset impairment	(3,922)
Change in fair value of financial instruments	(4,088)	4,490
Income (loss) before taxes	(11,496)	848
Income tax benefit (provision)	993	(582)
Net income (loss)	(10,503)	266
(Income) loss allocated to preferred shares	(8,520)	(7,859)
(Income) loss allocated to noncontrolling interests	1,179	496
Net income (loss) allocable to common shares	$ (17,844)	$ (7,097)
Earnings (loss) per share-Basic:
Earnings (loss) per share-Basic	$ (0.20)	$ (0.09)
Weighted-average shares outstanding-Basic	91,018,160	82,081,024
Earnings (loss) per share-Diluted:
Earnings (loss) per share-Diluted	$ (0.20)	$ (0.09)
Weighted average shares outstanding-Diluted	91,018,160	82,081,024

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ (10,503)	$ 266
Other comprehensive income (loss):
Change in fair value of interest rate hedges	(138)	43
Realized (gains) losses on interest rate hedges reclassified to earnings	2,403	4,967
Total other comprehensive income	2,265	5,010
Comprehensive income (loss) before allocation to noncontrolling interests	(8,238)	5,276
Allocation to noncontrolling interests	1,179	496
Comprehensive income (loss)	$ (7,059)	$ 5,772

XML

Consolidated Statement of Changes in Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands	Total	7.75% Series A Cumulative Redeemable Preferred Stock	8.375% Series B Cumulative Redeemable Preferred Stock	8.875% Series C Cumulative Redeemable Preferred Stock	Common Shares	Additional Paid In Capital	Accumulated Other Comprehensive Income (Loss)	Retained Earnings (Deficit)	Total Shareholders' Equity	Total Shareholders' Equity Preferred Series D	Noncontrolling Interests
Beginning Balance at Dec. 31, 2015	$ 744,741	$ 53	$ 23	$ 17	$ 2,748	$ 2,087,137	$ (4,699)	$ (1,680,751)	$ 404,528		$ 340,213
Beginning Balance (in shares) at Dec. 31, 2015		5,306,084	2,340,969	1,640,425	91,586,767
Net income (loss)	(10,503)							(9,324)	(9,324)		(1,179)
Preferred dividends	(6,830)							(6,830)	(6,830)
Preferred Series D discount amortization	(1,690)							(1,690)		$ (1,690)
Common dividends declared	(8,548)							(8,548)	(8,548)
Other comprehensive income (loss), net	2,265						2,265		2,265
Share-based compensation	1,068					1,068			1,068
Issuance of noncontrolling interests	68										68
Distribution to noncontrolling interests	(7,774)										(7,774)
Common shares issued for equity compensation	(284)				$ 8	(292)			(284)
Common shares issued for equity compensation (in shares)					281,277
Common shares issued, net (in shares)					2,527
Ending Balance at Mar. 31, 2016	$ 712,513	$ 53	$ 23	$ 17	$ 2,756	$ 2,087,913	$ (2,434)	$ (1,707,143)	$ 381,185		$ 331,328
Ending Balance (in shares) at Mar. 31, 2016		5,306,084	2,340,969	1,640,425	91,870,571

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities:
Net income (loss)	$ (10,503)	$ 266
Adjustments to reconcile net income (loss) to cash flow from operating activities:
Provision for loan losses	1,325	2,000
Share-based compensation expense	1,273	1,348
Depreciation and amortization	24,276	19,024
Amortization of deferred financing costs and debt discounts	6,076	4,299
Accretion of discounts on investments	(1,457)	(2,452)
Amortization of above/below market leases	(424)	(134)
(Gains) losses on assets	(2,258)
(Gains) losses on extinguishment of debt	(344)
(Gains) on IRT merger with TSRE	(91)
Asset impairment	3,922
Change in fair value of financial instruments	4,088	(4,490)
Provision (benefit) for deferred taxes	(1,108)	(1,525)
Changes in assets and liabilities:
(Increase) in accrued interest receivable	(2,653)	(1,951)
(Increase) in other assets	(3,701)	(13,112)
Increase in accrued interest payable	3,486	2,620
(Decrease) in accounts payable and accrued expenses	(9,453)	(6,473)
Increase in other liabilities	4,907	5,166
Origination of conduit loans	(8,800)	(128,670)
Sales of conduit loans		92,897
Net conduit loans (originated) sold	(8,800)	(35,773)
Cash flows provided by (used in) operating activities	8,561	(31,187)
Investing activities:
Proceeds from sales or repayments of other securities		31,241
Origination of loans for investment	(35,591)	(91,359)
Principal repayments on loans	55,052	17,148
Investments in real estate	(7,521)	(4,239)
IRT's acquisition of TSRE, net of cash acquired	91
Proceeds from the disposition of real estate	23,286
Decrease in restricted cash	7,265	6,467
Cash flows provided by (used in) investing activities	42,582	(40,742)
Financing activities:
Repayments on secured credit facilities and loans payable on real estate	(74,266)	(19,629)
Proceeds from secured credit facilities, term loans and loans payable on real estate	53,476	22,900
Repayments and repurchase of CDO notes payable and floating rate transactions	(84,065)	(19,855)
Repayments of senior secured notes	(2,000)	(2,000)
Net proceeds related to conduit loan repurchase agreements	4,049	39,723
Net proceeds related to floating rate loan repurchase agreements	21,685	48,600
Proceeds from issuance of venture interests accounted for as indebtedness	24,796
Distribution to noncontrolling interests	(7,774)	(4,907)
Issuance of noncontrolling interests	68
Payments for deferred costs	(467)	(260)
Preferred share issuance, net of costs incurred		(21)
Common share issuance, net of costs incurred	(489)	(652)
Distributions paid to preferred shareholders	(8,955)	(6,296)
Distributions paid to common shareholders	(8,518)	(14,743)
Cash flows (used in) provided by financing activities	(82,460)	42,860
Net change in cash and cash equivalents	(31,317)	(29,069)
Cash and cash equivalents at the beginning of the period	125,886	121,726
Cash and cash equivalents at the end of the period	$ 94,569	$ 92,657

XML

THE COMPANY

3 Months Ended

Mar. 31, 2016

Nature Of Operations [Abstract]

THE COMPANY

NOTE 1: THE COMPANY

RAIT Financial Trust invests in and manages a portfolio of real estate-related assets, including direct ownership of real estate properties, and provides a comprehensive set of debt financing options to the real estate industry. References to “RAIT”, “we”, “us”, and “our” refer to RAIT Financial Trust and its subsidiaries, unless the context otherwise requires. RAIT is a self-managed and self-advised Maryland real estate investment trust, or REIT.

We finance a substantial portion of our investments through borrowing and securitization strategies seeking to match the maturities and terms of our financings with the maturities and terms of those investments, and to mitigate interest rate risk through derivative instruments.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles, or GAAP. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. The unaudited interim consolidated financial statements should be read in conjunction with our audited financial statements as of and for the year ended December 31, 2015 included in our Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position and consolidated results of operations and cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year.

Certain prior period amounts have been reclassified to conform with the current period presentation, including in 2015, reclassifying $695 from property income to real estate operating expense in the amount of $702 and to depreciation and amortization expense in the amount of $7 for the three months ended March 31, 2015.

The Consolidated Statement of Cash Flows for the three months ended March 31, 2015 includes the impact of correcting the reporting of certain activity that occurred in the three months ended March 31, 2015.  Specifically, the correction eliminated the impact of a clerical error made in the determination of the amounts reported for the change in borrowers’ escrows within cash flows from operating activities and the related amounts reported for changes in restricted cash within cash flow from investing activities. The impact of this was a decrease to cash flows from operating activities and an increase to cash flows from investing activities of $18,194 for the three months ended March 31, 2015. This correction had no impact to cash and cash equivalents as of March 31, 2015, nor did it impact any other consolidated financial statement amounts as of March 31, 2015 or for the three months ended March 31, 2015.

We evaluated these error corrections and determined, based on quantitative and qualitative factors, the changes were not material to the consolidated financial statements taken as a whole for any previously filed consolidated financial statements.

b. Principles of Consolidation

The consolidated financial statements reflect our accounts and the accounts of our majority-owned and/or controlled subsidiaries. We also consolidate entities that are variable interest entities, or VIEs, where we have determined that we are the primary beneficiary of such entities. The portions of these entities that we do not own are presented as noncontrolling interests as of the dates and for the periods presented in the consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation.

Under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 810, “Consolidation”, the determination of whether to consolidate a VIE is based on the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance together with either the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. We define the power to direct the activities that most significantly impact the VIE’s economic performance as the ability to buy, sell, refinance, or recapitalize assets or entities, and solely control other material operating events or items of the entity. For our commercial mortgages, mezzanine loans, and preferred equity investments, certain rights we hold are protective in nature and would preclude us from having the power to direct the activities that most significantly impact the VIE’s economic performance. Assuming both criteria are met, we would be considered the primary beneficiary and would consolidate the VIE. We will continually assess our involvement with VIEs and consolidate the VIEs when we are the primary beneficiary. See Note 8 for additional disclosures pertaining to VIEs.

c. Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The items that include significant estimates are fair value of financial instruments and allowance for loan losses. Actual results could differ from those estimates.

d. Cash and Cash Equivalents

          Cash and cash equivalents include cash held in banks and highly liquid investments with maturities of three months or less when purchased.  Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250 per institution.  We mitigate credit risk by placing cash and cash equivalents with major financial institutions.  To date, we have not experienced any losses on cash and cash equivalents.

e. Restricted Cash

          Restricted cash consists primarily of tenant escrows and borrowers’ funds held by us to fund certain expenditures or to be released at our discretion upon the occurrence of certain pre-specified events, and to serve as additional collateral for borrowers’ loans.  As of March 31, 2016 and December 31, 2015, we had $158,177 and $165,866, respectively, of tenant escrows and borrowers’ funds.

          Restricted cash also includes proceeds from the issuance of securitization notes that are restricted for the purpose of funding additional investments in securities subsequent to the balance sheet date.  As of March 31, 2016 and December 31, 2015, we had $41,989 and $47,146, respectively, of restricted cash held by securitizations.

f. Investments in Commercial Mortgages, Mezzanine Loans and Preferred Equity Interests

We invest in commercial mortgages, mezzanine loans, and preferred equity interests. We account for our investments in commercial mortgages, mezzanine loans and preferred equity interests at amortized cost. The carrying value of these investments is adjusted for origination discounts/premiums, nonrefundable fees and direct costs for originating loans which are amortized into income on a level yield basis over the terms of the loans.

g. Allowance for Loan Losses, Impaired Loans and Non-accrual Status

We maintain an allowance for loan losses on our investments in commercial mortgages, mezzanine loans and preferred equity interests. Management’s periodic evaluation of the adequacy of the allowance is based upon expected and inherent risks in the portfolio, the estimated value of underlying collateral, and current economic conditions. The credit quality of our loans is monitored via quantitative and qualitative metrics.  Quantitatively we evaluate items such as the current debt service coverage ratio and annual net operating income of the underlying property.  Qualitatively we evaluate items such as recent operating performance of the underlying property and history of the borrower’s ability to provide financial support.  These items together are considered in developing our view of each loan’s risk rating which are categorized as either watchlist/impaired or satisfactory.  Management reviews loans for impairment and establishes specific reserves when a loss is probable under the provisions of FASB ASC Topic 310, “Receivables.” A loan is impaired when it is probable that we may not collect all principal and interest payments according to the contractual terms. As part of the detailed loan review, we consider many factors about the specific loan, including payment history, asset performance, borrower’s financial capability and other characteristics. Management evaluates loans for non-accrual status each reporting period. A loan is placed on non-accrual status when the loan payment deficiencies exceed 90 days or if the collection of principal and interest in full is not probable. Payments received for non-accrual loans are applied to accrued interest receivable. Past due interest is recognized on non-accrual loans when they are removed from non-accrual status and are making current interest payments. The allowance for loan losses is increased by the provision for loan losses and decreased by charge-offs (net of recoveries). We charge off a loan when we determine that all commercially reasonable means of recovering the loan balance have been exhausted.  This may occur at a variety of times, including when we receive cash or other assets in a pre-foreclosure sale or take control of the underlying collateral in full satisfaction of the loan upon foreclosure. We consider circumstances such as these to indicate that the loan collection process has ceased and that a loan is uncollectible.

h. Investments in Real Estate

Investments in real estate are shown net of accumulated depreciation. We capitalize those costs that have been determined to improve the real property and depreciate those costs on a straight-line basis over the useful life of the asset. We depreciate real property using the following useful lives: buildings and improvements—30 to 40 years; furniture, fixtures, and equipment—5 to 10 years; and tenant improvements—shorter of the lease term or the life of the asset. Costs for ordinary maintenance and repairs are charged to expense as incurred.

Acquisitions of real estate assets and any related intangible assets are recorded initially at fair value under FASB ASC Topic 805, “Business Combinations.” Fair value is determined by management based on market conditions and inputs at the time the asset is acquired. The fair value of the real estate acquired is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases for acquired in-place leases and the value of tenant relationships, based in each case on their fair values. Purchase accounting is applied to assets and liabilities associated with the real estate acquired. Transaction costs and fees incurred related to acquisitions are expensed as incurred.

Upon the acquisition of properties, we estimate the fair value of acquired tangible assets (consisting of land, building and improvements) and identified intangible assets and liabilities (consisting of above and below-market leases, in-place leases and tenant relationships), and assumed debt at the date of acquisition, based on the evaluation of information and estimates available at that date. In determining the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease. The capitalized above-market lease values and the capitalized below-market lease values are amortized as an adjustment to property income over the lease term.

The aggregate value of in-place leases is determined by evaluating various factors, including an estimate of carrying costs during the expected lease-up periods, current market conditions and similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases including leasing commissions, legal and other related costs. The value assigned to this intangible asset is amortized over the assumed lease up period.

Management reviews our investments in real estate for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset’s use and eventual disposition. These cash flows consider factors such as expected future operating income, trends and prospects, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a long-lived asset, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property.

i. Revenue Recognition

1) Interest income—We recognize interest income from investments in commercial mortgages, mezzanine loans, and preferred equity interests on a yield to maturity basis. Certain of our commercial mortgages, mezzanine loans and preferred equity interests provide for the accrual of interest at specified rates which differ from current payment terms. Interest income is recognized on such loans at the accrual rate subject to management’s determination that accrued interest and outstanding principal are ultimately collectible. Management will cease accruing interest on these loans when it determines that the interest income may not be collectible based on the ultimate value of the underlying collateral using discounted cash flow models and market based assumptions. The accrued interest receivable associated with these loans as of March 31, 2016 and December 31, 2015 was $35,977 and $34,132, respectively.  These loans are considered to be impaired when the total amount owed exceeds the value of the underlying collateral.  None of these loans were considered to be impaired as of March 31, 2016 and December 31, 2015.

Origination fees and direct loan origination costs on our investments in commercial mortgages, mezzanine loans and preferred equity interests are deferred and amortized to investment interest income, using the effective interest method, over the contractual life of the underlying loan security or loan, in accordance with FASB ASC Topic 310, “Receivables.”

2) Property income—We generate property income from tenant rent and other tenant-related activities at our consolidated real estate properties. For multi-family real estate properties, property income is recorded when due from residents and recognized monthly as it is earned and realizable, under lease terms which are generally for periods of one year or less. For retail and office real estate properties, property income is recognized on a straight-line basis from the later of the date of the commencement of the lease or the date of acquisition of the property subject to existing leases, which averages minimum rents over the terms of the leases. For retail and office real estate properties, leases also typically provide for tenant reimbursement of a portion of common area maintenance and other operating expenses to the extent that a tenant’s pro rata share of expenses exceeds a base year level set in the lease.

3) Fee and other income—We generate fee and other income through our various subsidiaries by (a) funding conduit loans for sale into unaffiliated commercial mortgage-backed securities, or CMBS, securitizations, (b) providing or arranging to provide financing to our borrowers, (c) providing ongoing asset management services to investment portfolios under cancelable management agreements, and (d) providing property management services to third parties. We recognize revenue for these activities when the fees are fixed or determinable, are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. While we may receive asset management fees when they are earned, we eliminate earned asset management fee income from securitizations while such securitizations are consolidated. During the three months ended March 31, 2016 and 2015, we received $402 and $315, respectively, of earned asset management fees, which were eliminated as they were associated with consolidated securitizations.

Also, during the three months ended March 31, 2016 and 2015 we earned $1,631 and $1,001 of asset management fees, respectively, and $65 and $211 of incentive fees, respectively, related to our advisory agreement with IRT.  During the three months ended March 31, 2016 and 2015 we also earned $1,262 and $755, respectively, of property management and leasing fees related to our property management agreements with IRT’s properties.  As we consolidate IRT, these fees are eliminated in consolidation.

j. Fair Value of Financial Instruments

In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity for disclosure purposes. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined in FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows:

· Level 1: Valuations are based on unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are equity securities listed in active markets. As such, valuations of these investments do not entail a significant degree of judgment.

· Level 2: Valuations are based on quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

· Level 3: Inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.  

The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of investment, whether the investment is new, whether the investment is traded on an active exchange or in the secondary market, and the current market condition. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by us in determining fair value is greatest for instruments categorized in Level 3.

Fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, our own assumptions are set to reflect those that management believes market participants would use in pricing the asset or liability at the measurement date. We use prices and inputs that management believes are current as of the measurement

date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be transferred from Level 1 to Level 2 or Level 2 to Level 3.

Many financial instruments have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that buyers in the market are willing to pay for an asset. Ask prices represent the lowest price that sellers in the market are willing to accept for an asset. For financial instruments whose inputs are based on bid-ask prices, we do not require that fair value always be a predetermined point in the bid-ask range. Our policy is to allow for mid-market pricing and adjusting to the point within the bid-ask range that results in our best estimate of fair value.

Fair value for certain of our Level 3 financial instruments is derived using internal valuation models. These internal valuation models include discounted cash flow analyses developed by management using current interest rates, estimates of the term of the particular instrument, specific issuer information and other market data for securities without an active market. In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, the impact of our own credit spreads is also considered when measuring the fair value of financial assets or liabilities, including derivative contracts. Where appropriate, valuation adjustments are made to account for various factors, including bid-ask spreads, credit quality and market liquidity. These adjustments are applied on a consistent basis and are based on observable inputs where available. Management’s estimate of fair value requires significant management judgment and is subject to a high degree of variability based upon market conditions, the availability of specific issuer information and management’s assumptions.

k. Investments in Securities

          During the first quarter of 2015, we sold all our remaining investments in securities with an aggregate fair value of $31,412 and we had no investments in securities as of March 31, 2016 and December 31, 2015.

l. Transfers of Financial Assets

           We account for transfers of financial assets under FASB ASC Topic 860, “Transfers and Servicing”, as either sales or financings.  Transfers of financial assets that result in sales accounting are those in which (1) the transfer legally isolates the transferred assets from the transferor, (2) the transferee has the right to pledge or exchange the transferred assets and no condition both constrains the transferee’s right to pledge or exchange the assets and provides more than a trivial benefit to the transferor, and (3) the transferor does not maintain effective control over the transferred assets.  If the transfer does not meet these criteria, the transfer is accounted for as a financing.  Financial assets that are treated as sales are removed from our accounts with any realized gain (loss) reflected in earnings during the period of sale.  Financial assets that are treated as financings are maintained on the balance sheet with proceeds received from the legal transfer reflected as securitized borrowings or security-related receivables.

m. Deferred Financing Costs

Costs incurred in connection with debt financing are deferred and classified within indebtedness and charged to interest expense over the terms of the related debt agreements, under the effective interest method.

n. Intangible Assets

Intangible assets on our consolidated balance sheets represent identifiable intangible assets acquired in business acquisitions. We amortize identified intangible assets to expense over their estimated lives using the straight-line method. We evaluate intangible assets for impairment as events and circumstances change, in accordance with FASB ASC Topic 360, “Property, Plant, and Equipment.” The gross carrying amount for our customer relationships was $19,149 as of March 31, 2016 and December 31, 2015. The gross carrying amount for our in-place leases, above market leases, and ground lease was $38,277 and $38,333 as of March 31, 2016 and December 31, 2015, respectively. The gross carrying amount for Urban Retail’s trade name was $1,500 as of March 31, 2016 and December 31, 2015, respectively. The accumulated amortization for our intangible assets was $32,228 and $26,307 as of March 31, 2016 and December 31, 2015, respectively. We recorded amortization expense of $5,920 and $3,931 for the three months ended March 31, 2016 and 2015, respectively. Based on the intangible assets identified above, we expect to record amortization expense of intangible assets of $5,141 for the remainder of 2016, $4,861 for 2017, $3,662 for 2018, $3,209 for 2019, $2,764 for 2020 and $7,062 thereafter.  

o. Goodwill

Goodwill on our consolidated balance sheet represented the amounts paid in excess of the fair value of the net assets acquired from business acquisitions accounted for under FASB ASC Topic 805, “Business Combinations.” Pursuant to FASB ASC Topic 350, “Intangibles-Goodwill and Other”, goodwill is not amortized to expense but rather is analyzed for impairment. We evaluate goodwill for impairment on an annual basis and as events and circumstances change, in accordance with FASB ASC Topic 350. As of March 31, 2016 and December 31, 2015, we have $8,854 of goodwill that is included in Other Assets in the accompanying consolidated balance sheets. As of March 31, 2016, we have determined that no triggering events occurred that would indicate an impairment on our goodwill.

p. Recent Accounting Pronouncements

In May 2014, the FASB issued an accounting standard classified under FASB ASC Topic 606, “Revenue from Contracts with Customers”. This accounting standard generally replaces existing guidance by requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This standard is currently effective for annual reporting periods beginning after December 15, 2017. Management is currently evaluating the impact that this standard may have on our consolidated financial statements.

In February 2015, the FASB issued an accounting standard classified under FASB ASC Topic 810, “Consolidation”. This accounting standard amends the consolidation analysis required under GAAP and requires management to reevaluate all previous consolidation conclusions. This standard considers limited partnerships to be VIEs, unless the limited partners have either substantive kick-out or participating rights. The presumption that a general partner should consolidate a limited partnership has also been eliminated. The standard amends the effect that fees paid to a decision maker or service provider have on the consolidation analysis, as well as amends how variable interests held by a reporting entity’s related parties affect the consolidation conclusion. This standard also clarifies how to determine whether equity holders as a group have power over an entity. This standard was effective for interim and annual reporting periods beginning on or after December 15, 2015, with early adoption permitted. The adoption of this accounting standard did not have an impact on our previous conclusions with respect to the entities consolidated in our consolidated financial statements.

In April 2015, the FASB issued an accounting standard classified under FASB ASC Topic 835, “Interest”. This accounting standard amends existing guidance to change reporting requirements for debt issuance costs by requiring debt issuance costs to be presented on the balance sheet as a direct deduction from the debt liability. This standard was effective for interim and annual reporting periods beginning on or after December 15, 2015, with an early adoption permitted. Retrospective application to prior periods is required. The adoption of this accounting standard resulted in the reclassification of $31,368 of deferred costs, net of $33,769 of accumulated amortization, as of December 31, 2015 to total indebtedness on our consolidated balance sheet.

In September 2015, the FASB issued an accounting standard classified under FASB ASC Topic 805, “Business Combinations”.  This accounting standard amends existing guidance related to measurement period adjustments by requiring the adjustments to be recognized prospectively with disclosure of the impact of the adjustments had they been applied previously.  This standard was effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted.  As this standard only applies to measurement period adjustments that occur after the effective date, this standard did not have a material impact on our consolidated financial statements.

In January 2016, the FASB issued an accounting standard classified under FASB ASC Topic 825, “Financial Instruments”. This accounting standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments.  Among other things, the amendment (i) eliminates certain disclosure requirements for financial instruments measured at amortized cost; (ii) requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (iii) requires separate presentation, in other comprehensive income, of the change in fair value of a liability, when the fair value option has been elected, resulting from a change in the instrument-specific credit risk; and (iv) requires separate presentation of financial instruments by measurement category and form.  This standard is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years.  Early adoption is permitted for the separate presentation of changes in fair value due to changes in instrument-specific credit risk. Management is currently evaluating the impact that this standard may have on our consolidated financial statements.

In February 2016, the FASB issued an accounting standard classified under FASB ASC Topic 842, “Leases”.  This accounting standard amends lease accounting by requiring the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases on the balance sheet and disclosing key information about leasing arrangements.  This standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years.  Early application of the amendments in this standard is permitted Management is currently evaluating the impact that this standard may have on our consolidated financial statements.

In March 2016, the FASB issued an accounting standard classified under FASB ASC Topic 815, “Derivatives and Hedging”.  This accounting standard clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met.  This standard is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period.  Management does not expect this standard to have a significant impact on our consolidated financial statements.

In March 2016, the FASB issued an accounting standard classified under FASB ASC Topic 815, “Derivatives and Hedging”. This accounting standard clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts.  This accounting standard clarifies what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative.  Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks.  This standard is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those fiscal years.  Early adoption is permitted, including adoption in an interim period. Management does not expect this standard to have a significant impact on our consolidated financial statements.

In March 2016, the FASB issued an accounting standard classified under FASB ASC Topic 606, “Revenue from Contracts with Customers”.  This accounting standard clarifies the implementation guidance on principal versus agent considerations in Topic 606.  This accounting standard clarifies the following: (i) an entity determines whether it is a principal or an agent for each specified good or service promised to the customer; (ii) an entity determines the nature of each specified good or service (for example, whether it is a good, a service, or a right to a good or service); (iii) when a principal obtains control of a good or right to service whether another party is involved in providing goods or services to a customer; and (iv) the indicators in the assessment of control may be more or less relevant to the control assessment and that one or more indicators may be more or less persuasive to the control assessment, depending on the facts and circumstances.  This standard is effective for annual reporting periods beginning after December 15, 2017. Management is currently evaluating the impact that this standard may have on our consolidated financial statements.

In March 2016, the FASB issued an accounting standard classified under FASB ASC Topic 718, “Compensation – Stock Compensation”.  This accounting standard simplifies several aspects of the accounting for share-based payment award transactions, including: (i) income tax consequences; (ii) classification of awards as either equity or liabilities; and (iii) classification on the statement of cash flows.  This standard is effective for annual periods beginning after December 15, 2016, and interim period within those annual periods. Early adoption is permitted for any entity in any interim or annual period. Management is currently evaluating the impact that this standard may have on our consolidated financial statements.  

In April 2016, the FASB issued an accounting standard classified under FASB ASC Topic 606, “Revenue from Contracts with Customers.” The amendments in this standard add further guidance on identifying performance obligations and clarifying the licensing implementation guidance.  The amendments do not change the core principle of the guidance in Topic 606.  This standard is effective for annual periods beginning after December 15, 2017, including interim periods therein. Management is currently evaluating the impact that this standard may have on consolidated financial statements.

XML

INVESTMENTS IN LOANS

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

INVESTMENTS IN LOANS

NOTE 3: INVESTMENTS IN LOANS

Investments in Commercial Mortgages, Mezzanine Loans, and Preferred Equity Interests

The following table summarizes our investments in commercial mortgages, mezzanine loans, and preferred equity interests as of March 31, 2016:

	Unpaid Principal Balance			Unamortized (Discounts) Premiums			Carrying Amount			Number of Loans		Weighted- Average Coupon (1)			Range of Maturity Dates (3)
Commercial Real Estate (CRE)
Commercial mortgages (2)	$	1,421,060		$	(1,001	)	$	1,420,059			121		5.6	%	Apr. 2016 to Jan. 2029
Mezzanine loans		169,415			(218	)	$	169,197			54		9.8	%	May 2016 to May 2025
Preferred equity interests		24,237			(1	)	$	24,236			6		5.9	%	Sept. 2016 to Aug. 2025
Total CRE		1,614,712			(1,220	)	$	1,613,492			181		6.0	%
Deferred fees, net		(860	)					(860	)
Total	$	1,613,852		$	(1,220	)	$	1,612,632

(1) Weighted-average coupon is calculated on the unpaid principal balance, which does not necessarily correspond to the carrying amount.

(2) Commercial mortgages includes seven conduit loans with an unpaid principal balance and carrying amount of $57,928, a weighted-average coupon of 4.9% and maturity dates ranging from December 2020 through February 2026. These commercial mortgages are accounted for as loans held for sale.

(3) Does not include the maturity dates of five mezzanine loans all of which had maturity dates prior to March 31, 2016 and have been identified as impaired.  Three of these loans are 90 days or more past due, one of these loans is 30 to 59 days past due and one of these loans is in the process of being restructured.  

The following table summarizes our investments in commercial mortgages, mezzanine loans, other loans and preferred equity interests as of December 31, 2015:

	Unpaid Principal Balance			Unamortized (Discounts) Premiums			Carrying Amount			Number of Loans		Weighted- Average Coupon (1)			Range of Maturity Dates (3)
Commercial Real Estate (CRE)
Commercial mortgages (2)	$	1,427,328		$	(1,049	)	$	1,426,279			124		5.2	%	Mar.2016 to Jan. 2029
Mezzanine loans		169,556			(218	)		169,338			57		10.0	%	Jan. 2016 to May 2025
Preferred equity interests		30,237			(1	)		30,236			7		6.9	%	Feb. 2016 to Aug. 2025
Total CRE		1,627,121			(1,268	)		1,625,853			188		6.1	%
Deferred fees, net		(2,270	)		—			(2,270	)
Total	$	1,624,851		$	(1,268	)	$	1,623,583

(1) Weighted-average coupon is calculated on the unpaid principal balance, which does not necessarily correspond to the carrying amount.

(2) Commercial mortgages includes six conduit loans with an unpaid principal balance and carrying amount of $49,239, a weighted-average coupon of 4.8% and maturity dates ranging from December 2020 through January 2026. These commercial mortgages are accounted for as loans held for sale.

(3) Does not include the maturity dates of three mezzanine loans that were 90 days or more past due which had contractual maturity date prior to December 31, 2015.

The following table summarizes the delinquency statistics of our commercial real estate loans as of March 31, 2016 and December 31, 2015:

	As of March 31, 2016
Delinquency Status	Current		30 to 59 days		60 to 89 days		90 days or more		In foreclosure or bankruptcy proceedings (b)		Total		Non-accrual (a)
Commercial mortgages	$	1,346,260	$	74,800	$	—	$	—	$	—	$	1,421,060	$	15,645
Mezzanine loans		165,107		2,145		—		1,163		1,000		169,415		12,098
Preferred equity interests		24,237		—		—		—		—		24,237		7,946
Total	$	1,535,604	$	76,945	$	—	$	1,163	$	1,000	$	1,614,712	$	35,689

(1) Includes four loans that were current and two loans that were 30 days past due in accordance with their terms, however are on non-accrual due to uncertainty over full collection of principal and interest.

(2) These loans were on non-accrual due to uncertainty over full collection of principal and interest.

	As of December 31, 2015
Delinquency Status	Current		30 to 59 days		60 to 89 days		90 days or more		In foreclosure or bankruptcy proceedings (b)		Total		Non-Accrual (a)
Commercial mortgages	$	1,427,328	$	—	$	—	$	—	$	—	$	1,427,328	$	15,645
Mezzanine loans		167,145		—		—		1,163		1,248		169,556		12,346
Preferred equity interests		30,237		—		—		—		—		30,237		7,946
Total	$	1,624,710	$	—	$	—	$	1,163	$	1,248	$	1,627,121	$	35,937

(1) Includes six loans that were current in accordance with their terms, however are on non-accrual due to uncertainty over full collection of principal and interest.

(2) These loans were on non-accrual due to uncertainty over full collection of principal and interest.

As of March 31, 2016 and December 31, 2015, all of our commercial mortgages, mezzanine loans and preferred equity interests that were 90 days or more past due or in foreclosure were on non-accrual status.  As of March 31, 2016 and December 31, 2015, $35,689 and $35,937, respectively, of our commercial real estate loans were on non-accrual status and had a weighted-average interest rate of 4.6% and 4.6%, respectively. Also, as of March 31, 2016 and December 31, 2015, three and two loans, respectively, with a unpaid principal balance of $25,871 and $13,002, respectively, and a weighted average interest rate of 12.9% and 11.6%, respectively, were recognizing interest on the cash basis. Additionally, as of March 31, 2016 and December 31, 2015, one loan, with an unpaid principal balance of $18,500, which had previously been restructured in a troubled debt restructuring, or TDR, does not accrue interest in accordance with its restructured terms as it has the option to be prepaid at par.

Allowance For Loan Losses And Impaired Loans

We closely monitor our loans which require evaluation for loan loss in two categories: satisfactory and watchlist/impaired. Loans classified as impaired are generally loans which have credit weaknesses or in which the credit quality of the collateral has deteriorated. This is determined by evaluating quantitative factors including debt service coverage ratios, net operating income of the underlying collateral and qualitative factors such as current performance of the underlying collateral.  As of March 31, 2016 and December 31, 2015 we have classified our investment in loans by credit risk category as follows:

	As of March 31, 2016
Credit Status	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Satisfactory	$	1,330,615	$	135,817	$	16,291	$	1,482,723
Watchlist / Impaired		90,445		33,598		7,946	$	131,989
Total	$	1,421,060	$	169,415	$	24,237	$	1,614,712

	As of December 31, 2015
Credit Status	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Satisfactory	$	1,336,883	$	135,710	$	22,291	$	1,494,884
Watchlist / Impaired		90,445		33,846		7,946		132,237
Total	$	1,427,328	$	169,556	$	30,237	$	1,627,121

The following tables provide roll-forwards of our allowance for loan losses for our commercial mortgages, mezzanine loans and preferred equity interests for the three months ended March 31, 2016 and 2015:

	For the Three Months Ended March 31, 2016
	Commercial Mortgages		Mezzanine Loans			Preferred Equity		Total
Beginning balance	$	3,154	$	12,139		$	1,804	$	17,097
Provision for loan losses		174		158			993		1,325
Charge-offs, net of recoveries		—		(257	)		—	$	(257	)
Ending balance	$	3,328	$	12,040		$	2,797	$	18,165

	For the Three Months Ended March 31, 2015
	Commercial Mortgages		Mezzanine Loans			Preferred Equity		Total
Beginning balance	$	—	$	7,892		$	1,326	$	9,218
Provision for loan losses		—		2,000			—		2,000
Charge-offs, net of recoveries		—		(421	)		—		(421	)
Ending balance	$	—	$	9,471		$	1,326	$	10,797

Information related to those loans on our watchlist or considered to be impaired was as follows:

	As of March 31, 2016
Watchlist/Impaired Loans	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Watchlist/Impaired loans expecting full recovery	$	74,800	$	3,000	$	—	$	77,800
Watchlist/Impaired loans with reserves		15,645		30,598		7,946		54,189
Total Watchlist/Impaired Loans (1)	$	90,445	$	33,598	$	7,946	$	131,989
Allowance for loan losses	$	3,328	$	12,040	$	2,797	$	18,165

(1) As of March 31, 2016, this includes no unpaid principal relating to previously identified TDRs that are on accrual status.

	As of December 31, 2015
Watchlist/Impaired Loans	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Watchlist/Impaired loans expecting full recovery	$	74,800	$	3,000	$	—	$	77,800
Watchlist/Impaired loans with reserves		15,645		30,846		7,946		54,437
Total Watchlist/Impaired Loans (1)	$	90,445	$	33,846	$	7,946	$	132,237
Allowance for loan losses	$	3,154	$	12,139	$	1,804	$	17,097

(1) As of December 31, 2015, this includes no unpaid principal relating to previously identified TDRs that are on accrual status.

The average unpaid principal balance and recorded investment of total impaired loans was $132,113 and $80,903 during the three months ended March 31, 2016 and 2015, respectively.  We recorded interest income of $1,262 and $582 on loans that were impaired for the three months ended March 31, 2016 and 2015, respectively.

We have evaluated restructurings of our commercial real estate loans to determine if the restructuring constitutes a TDR under FASB ASC Topic 310, “Receivables”. During the three months ended March 31, 2016, we have determined that a restructuring of one commercial real estate loan with an unpaid principal balance of $15,645 constituted a TDR as the interest payment rate was decreased, although interest will continue to accrue on the original contractual rate, subject to management’s determination that it is collectible, and will be owed upon maturity. During the three months ended March 31, 2015, there were no restructurings of our commercial real estate loans that constituted a TDR. As of March 31, 2016, there were no TDRs that subsequently defaulted for restructurings that had been entered into within the previous 12 months.

During the three months ended March 31, 2016, we did not convert any commercial real estate loans to owned real estate property.

XML

INVESTMENTS IN REAL ESTATE

3 Months Ended

Mar. 31, 2016

Banking And Thrift [Abstract]

INVESTMENTS IN REAL ESTATE

NOTE 4: INVESTMENTS IN REAL ESTATE

The table below summarizes our investments in real estate:

	Book Value
	As of March 31, 2016			As of December 31, 2015
Multi-family real estate properties (1)	$	1,820,062		$	1,842,704
Office real estate properties		387,537			395,224
Industrial real estate properties		94,938			94,938
Retail real estate properties		134,484			134,331
Parcels of land		50,613			50,448
Subtotal		2,487,634			2,517,645
Less: Accumulated depreciation and amortization (1)		(209,421	)		(198,326	)
Investments in real estate (2)	$	2,278,213		$	2,319,319

(1) As of March 31, 2016, includes properties owned by Independence Realty Trust, Inc., or IRT, with a book value of $1,357,338 and accumulated depreciation of $44,422. As of December 31, 2015, includes properties owned by IRT, with a book value of $1,372,015 and accumulated depreciation of $39,638.                                                                                                

(2) As of March 31, 2016, four of our multifamily real estate properties, two of IRT’s multifamily real estate properties and one parcel of land were considered held-for-sale.  The carrying amount of our multifamily properties was $36,301. The carrying amount of the IRT properties was $39,347.  The carrying amount of the parcel of land was $1,470.

As of March 31, 2016 and December 31, 2015, our investments in real estate were comprised of land of $408,755 and $415,707, respectively, and buildings and improvements of $2,078,878 and $2,101,938, respectively.

As of March 31, 2016, our investments in real estate of $2,278,213 were financed through $761,767 of mortgages or other debt held by third parties and $916,763 of mortgages held by our RAIT I and RAIT II CDO securitizations. As of December 31, 2015, our investments in real estate of $2,319,319 were financed through $815,745 of mortgages held by third parties and $889,786 of mortgages held by our RAIT I and RAIT II CDO securitizations. Together, along with commercial real estate loans held by RAIT I and RAIT II, these mortgages serve as collateral for the CDO notes payable issued by the RAIT I and RAIT II CDO securitizations. All intercompany balances and interest charges are eliminated in consolidation.

Acquisitions:

During the first quarter of 2016, IRT received additional information regarding estimates IRT had made for certain accrued expenses related to the TSRE merger that was completed on September 17, 2015.  This information led to an increase in fair value of the net assets IRT acquired of $91, which IRT recognized during the three months ended March 31, 2016.

During the first quarter of 2016, we received additional information regarding estimates we had made for certain assets including cash related to tenant security deposits related to our October 2015 acquisition of 10 industrial properties through our conversion of a mezzanine loan to real estate owned property.  This information led to an increase in fair value of the net assets acquired of $437, which we recognized within interest income, as the converted loan was on non-accrual and the fair value of the net assets acquired exceeded the amount of the converted loan plus previously accrued interest.

During the first quarter of 2016, we received additional information regarding estimates we had made as part of the purchase price allocation related to our December 2015 acquisition of Erieview Tower & Parking.  This information, which related to an allocation of the estimated costs required to stabilize this property and an adjacent property to which we have rights to collateral secured by a first mortgage, led to an increase in fair value of the net assets acquired of $1,499.  This was offset by a decrease of $1,499 to the previously discussed collateral which is reported within investment in mortgages, loans and preferred equity interests on our consolidated balance sheets.  The $1,499 increase in the net assets acquired was related to an increase in investments in real estate of $3,351, a decrease in intangible assets of $57 and an increase in intangible liabilities of $1,795.  The cumulative catch up effect of the allocation (based on the different useful lives) was an increase to net income of $11.

Dispositions:

During the three months ended March 31, 2016, we disposed of one multifamily real estate property and one office property.  IRT also disposed of one multifamily real estate property. The below table summarizes these dispositions and also presents each property’s contribution to net income (loss) allocable to common shares, excluding the impact of the gain (loss) on sale:

					For the Three Months Ended March 31, 2016
Property Name	Property Type	Date of Sale	Sale Price		Gain (loss) on sale			Net income (loss) allocable to common shares
Cumberland Glen	IRT Multifamily	2/18/2016	$	18,000	$	2,453		$	52
Mineral/Lincoln	Office	3/25/2016		7,949		(374	)		5
Ventura	Multifamily	3/30/2016		8,750		120			37
Total			$	34,699	$	2,199		$	94

In April 2016, IRT sold one multifamily real estate property for a sale price of $23,000.  IRT will recognize a gain on the sale of this asset.

In April 2016, we sold one parcel of land for a sale price of $1,500.  We will recognize a gain on the sale of this asset.

In May 2016, IRT sold one multifamily real estate property for a sale price of $47,000.  IRT will recognize a gain on the sale of this asset.

Impairment:

During the three months ended March 31, 2016, we recognized an impairment of a real estate asset of $3,922 as it was more likely than not we would dispose of the asset before the end of its previously estimated useful life and a portion of our recorded investment in that asset was determined to not be recoverable.

XML

INDEBTEDNESS

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

INDEBTEDNESS

NOTE 5: INDEBTEDNESS

We maintain various forms of short-term and long-term financing arrangements. Generally, these financing agreements are collateralized by assets within securitizations.

The following table summarizes our total recourse and non-recourse indebtedness as of March 31, 2016:

Description	Unpaid Principal Balance		Unamortized Discount and Debt Issuance Costs			Carrying Amount		Weighted- Average Interest Rate			Contractual Maturity
Recourse indebtedness:
7.0% convertible senior notes (1)	$	30,048	$	(1,044	)	$	29,004		7.0	%		Apr. 2031
4.0% convertible senior notes (2)		141,750		(7,987	)		133,763		4.0	%		Oct. 2033
7.625% senior notes		60,000		(1,986	)		58,014		7.6	%		Apr. 2024
7.125% senior notes		71,905		(2,009	)		69,896		7.1	%		Aug. 2019
Senior secured notes		68,000		(6,153	)		61,847		7.0	%		Apr. 2017 to Apr. 2019
Junior subordinated notes, at fair value (3)		18,671		(8,886	)		9,785		4.6	%		Mar. 2035
Junior subordinated notes, at amortized cost		25,100		(213	)		24,887		3.1	%		Apr. 2037
CMBS facilities		122,801		(531	)		122,270		2.5	%		Jul.2016 to Jan 2018
Total recourse indebtedness		538,275		(28,809	)		509,466		5.0	%
Non-recourse indebtedness:
Secured credit facilities (4)		324,977		(4,122	)		320,855		2.9	%		September 2018
Term Loans (5)		90,216		(939	)		89,277		5.4	%		September 2016
CDO notes payable, at amortized cost (6)(7)		917,725		(12,495	)		905,230		1.2	%		2045 to 2046
CMBS securitizations (8)		666,947		(6,808	)		660,139		2.6	%		May 2031 to Dec. 2031
Loans payable on real estate (9)		761,767		(4,099	)		757,668		4.4	%		June 2016 to Apr. 2026
Total non-recourse indebtedness		2,761,632		(28,463	)		2,733,169		2.8	%
Other indebtedness (10)		24,321		274			24,595		—				—
Total indebtedness	$	3,324,228	$	(56,998	)	$	3,267,230		3.1	%

(1) Our 7.0% convertible senior notes are redeemable at par, at the option of the holder, in April 2016, April 2021, and April 2026.

(2) Our 4.0% convertible senior notes are redeemable at par, at the option of the holder, in October 2018, October 2023, and October 2028.

(3) Relates to liabilities which we elected to record at fair value under FASB ASC Topic 825.

(4)      Floating rate at 245 basis points over 1-month LIBOR. As of March 31, 2016, 1-month LIBOR was 0.43725%. Interest only payments are due monthly.

(5) Floating rate at 500 basis points over 1-month LIBOR. As of March 31, 2016, 1-month LIBOR was 0.43725%. Interest only payments are due monthly.

(6) Excludes CDO notes payable purchased by us which are eliminated in consolidation

(7) Collateralized by $1,358,687 principal amount of commercial mortgages, mezzanine loans, other loans and preferred equity interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

(8) Excludes the RAIT FL2 junior notes, RAIT FL3 junior notes, RAIT FL4 junior notes and RAIT FL5 junior notes purchased by us which are eliminated in consolidation.  Collateralized by $855,555 principal amount of commercial mortgages loans and participation interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

(9) Includes $495,253 of unpaid principal balance and $492,129 of carrying amount, respectively, of third party mortgage indebtedness that encumbers properties owned by IRT. The weighted-average interest rate is 3.8% and has a range of maturity dates from January 2021 to May 2025.

(10) Represents a 40% interest issued to an unaffiliated third party in a venture to which we contributed the junior notes and equity of a floating rate securitization.  We retained a 60% interest in this venture, and, as a result of our controlling financial interest, we consolidated the venture.  We received $24,796 of proceeds as a result of issuing this 40% interest and incurred $201 of costs with third parties.  This 40% interest has no stated maturity date and does not provide for its mandatory redemption or any required return or interest payment.  The venture interests allocate the distributions on such junior notes and equity when made between the parties to the venture.       

The following table summarizes our total recourse and non-recourse indebtedness as of December 31, 2015:

Description	Unpaid Principal Balance		Unamortized Discount and Debt Issuance Costs			Carrying Amount		Weighted- Average Interest Rate			Contractual Maturity
Recourse indebtedness:
7.0% convertible senior notes (1)	$	30,048	$	(1,180	)	$	28,868		7.0	%	Apr. 2031
4.0% convertible senior notes (2)		141,750		(8,711	)		133,039		4.0	%	Oct. 2033
7.625% senior notes		60,000		(2,048	)		57,952		7.6	%	Apr. 2024
7.125% senior notes		71,905		(2,156	)		69,749		7.1	%	Aug. 2019
Senior secured notes		70,000		(6,955	)		63,045		7.0	%	Apr. 2017 to Apr. 2019
Junior subordinated notes, at fair value (3)		18,671		(8,167	)		10,504		4.3	%	Mar. 2035
Junior subordinated notes, at amortized cost		25,100		(216	)		24,884		2.7	%	Apr. 2037
CMBS facilities		97,067		(344	)		96,723		2.4	%	Jul. 2016 to Jan. 2018
Total recourse indebtedness		514,541		(29,777	)		484,764		5.1	%
Non-recourse indebtedness:
Secured credit facilities (4)		271,500		(4,345	)		267,155		2.9	%	Sep. 2018
Term Loans (5)		120,000		(1,582	)		118,418		5.4	%	Sept. 2016
CDO notes payable, at amortized cost (6)(7)		950,981		(13,412	)		937,569		0.9	%	Jun. 2045 to Nov. 2046
CMBS securitizations (8)		717,255		(8,745	)		708,510		2.4	%	May 2031 to Dec. 2031
Loans payable on real estate (9)		815,746		(4,080	)		811,666		4.5	%	Apr. 2016 to Apr. 2026
Total non-recourse indebtedness		2,875,482		(32,164	)		2,843,318		2.7	%
Total indebtedness	$	3,390,023	$	(61,941	)	$	3,328,082		3.0	%

(1) Our 7.0% convertible senior notes are redeemable at par, at the option of the holder, in April 2016, April 2021, and April 2026.

(2) Our 4.0% convertible senior notes are redeemable at par, at the option of the holder, in October 2018, October 2023, and October 2028.

(3) Relates to liabilities which we elected to record at fair value under FASB ASC Topic 825.

(4) Floating rate at 245 basis points over 1-month LIBOR. As of December 31, 2015, 1-month LIBOR was 0.4295%. Interest only payments are due monthly.

(5) Floating rate at 500 basis points over 1-month LIBOR. As of December 31, 2015, 1-month LIBOR was 0.4295%. Interest only payments are due monthly.

(6) Excludes CDO notes payable purchased by us which are eliminated in consolidation.

(7) Collateralized by $1,388,194 principal amount of commercial mortgages, mezzanine loans, other loans and preferred equity interests, $815,745 of which eliminates in consolidation. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

(8) Excludes the RAIT FL2 junior notes, RAIT FL3 junior notes, RAIT FL4 junior notes and RAIT FL5 junior notes purchased by us which are eliminated in consolidation. Collateralized by $885,055 principal amount of commercial mortgage loans and participation interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

(9) Includes $545,956 of unpaid principal balance and $543,080 of carrying amount of third party mortgage indebtedness that encumbers properties owned by IRT. The weighted-average interest rate is 3.8% and has a range of maturity dates from April 2016 to May 2025.

Recourse indebtedness refers to indebtedness that is recourse to our general assets, including the loans payable on real estate that are guaranteed by us. Non-recourse indebtedness consists of indebtedness of consolidated VIEs (e.g., securitization vehicles) and loans payable on real estate which is recourse only to specific assets pledged as collateral to the lenders. The creditors of each consolidated VIE have no recourse to our general credit.

The current status or activity in our financing arrangements occurring as of or during the three months ended March 31, 2016 is as follows:

Recourse Indebtedness

7.0% convertible senior notes. The 7.0% convertible senior notes are convertible at the option of the holder at a current conversion rate of 179.4009 common shares per $1 principal amount of 7.0% convertible senior notes (equivalent to a current conversion price of $5.57 per common share).  

  On April 1, 2016, we redeemed $29,177 of the 7.0% convertible senior notes at a redemption price equal to the principal amount plus accrued and unpaid interest. After this redemption, $871 of the 7.0% convertible notes remain outstanding.

4.0% convertible senior notes. The 4.0% convertible senior notes are convertible at the option of the holder at a current conversion rate of 108.5803 common shares per $1 principal amount of 4.0% convertible senior notes (equivalent to a current conversion price of $9.21 per common share).

7.625% senior notes. No activity other than recurring interest during the current period.

7.125% senior notes. No activity other than recurring interest during the current period.

  Senior secured notes. During the three months ended March 31, 2016, we prepaid $2,000 of the senior secured notes. As of March 31, 2016 we have $68,000 of outstanding senior secured notes.  

Junior subordinated notes, at fair value. At issuance, we elected to record the current $18,671 junior subordinated note at fair value under FASB ASC Topic 825, with all subsequent changes in fair value recorded in earnings. The fair value, or carrying amount, of this indebtedness was $9,785 as of March 31, 2016

Junior subordinated notes, at amortized cost.  No activity other than recurring interest during the current period.

CMBS facilities. As of March 31, 2016, we had $5,475 of outstanding borrowings under the amended and restated master repurchase agreement, or the Amended MRA.  The Amended MRA has a capacity of $200,000 with a limit of $100,000 for floating rate loans. As of March 31, 2016, we were in compliance with all financial covenants contained in the Amended MRA.

 As of March 31, 2016, we had $35,496 of outstanding borrowings under the $150,000 CMBS facility. As of March 31, 2016, we were in compliance with all financial covenants contained in the $150,000 CMBS facility.

As of March 31, 2016, we had $40,179 of outstanding borrowings under the $75,000 commercial mortgage facility. As of March 31, 2016, we were in compliance with all financial covenants contained in the $75,000 commercial mortgage facility.

As of March 31, 2016, we had $26,131 of outstanding borrowings under the $150,000 commercial mortgage facility. As of March 31, 2016, we were in compliance with all financial covenants contained in the $150,000 commercial mortgage facility.

As of March 31, 2016, we had $15,520 of outstanding borrowings under the $150,000 commercial mortgage facility. As of March 31, 2016, we were in compliance with all financial covenants contained in the $150,000 commercial mortgage facility.

Non-Recourse Indebtedness

Secured credit facilities. On September 17, 2015, IROP entered into a credit agreement with respect to a $325,000 senior secured credit facility, or the KeyBank senior facility, which will mature on September 17, 2018. The KeyBank senior facility is available for additional loans, may be increased to $450,000 and at the option of IROP may be extended for two additional 12-month periods under certain circumstances. At March 31, 2016, amounts outstanding under the KeyBank secured facility bear interest at 245 basis points over 1-month LIBOR. As of March 31, 2016, there was $23 of availability under the revolver.

Term loans. On September 17, 2015, IROP entered into a credit agreement with respect to a $120,000 senior interim term loan facility, or the KeyBank interim facility, which will mature on September 16, 2016. The KeyBank interim facility may be extended at the option of IROP for an additional six months under certain circumstances. The KeyBank interim facility requires monthly payments of interest only. IROP must apply 100% of all net proceeds from equity issuances, sales of assets, or refinancings of assets towards repaying the KeyBank interim facility. At March 31, 2016, the KeyBank interim facility bears interest at 500 basis points over 1-month LIBOR.  

In April of 2016, IROP repaid $11,600 of the KeyBank interim facility subsequent to a property disposition.

In May of 2016, IROP repaid $18,400 of the KeyBank interim facility subsequent to a property disposition.

CDO notes payable, at amortized cost. CDO notes payable at amortized cost represent notes issued by consolidated CDO securitizations which are used to finance the acquisition of unsecured REIT notes, CMBS securities, commercial mortgages, mezzanine loans, and other loans in our commercial real estate portfolio. Generally, CDO notes payable are comprised of various classes of notes payable, with each class bearing interest at variable or fixed rates. Both RAIT I and RAIT II are meeting all of their over collateralization, or OC, and interest coverage, or IC, trigger tests as of March 31, 2016.

CMBS securitizations.  As of March 31, 2016, our subsidiary, RAIT 2014-FL2 Trust, or RAIT FL2, had $134,725 of total collateral at par value, none of which is defaulted. RAIT FL2 had classes of investment grade senior notes with an aggregate principal balance outstanding of approximately $94,537 to investors. We currently own the unrated classes of junior notes, including a class with an aggregate principal balance of $40,188, and the equity, or the retained interests, of RAIT FL2. RAIT FL2 does not have OC triggers or IC triggers.

As of March 31, 2016, our subsidiary, RAIT 2014-FL3 Trust, or RAIT FL3, had $168,278 of total collateral at par value, none of which is defaulted. RAIT FL3 had classes of investment grade senior notes with an aggregate principal balance outstanding of approximately $130,892 to investors. We currently own the unrated classes of junior notes, including a class with an aggregate principal balance of $37,386, and the equity, or the retained interests, of RAIT FL3. RAIT FL3 does not have OC triggers or IC triggers.

As of March 31, 2016, our subsidiary, RAIT 2015-FL4 Trust, or RAIT FL4, had $219,284 of total collateral at par value, none of which is defaulted. RAIT FL4 had classes of investment grade senior notes with an aggregate principal balance outstanding of approximately $177,894 to investors. We currently own the unrated classes of junior notes, including a class with an aggregate principal balance of $41,390, and the equity, or the retained interests, of RAIT FL4. RAIT FL4 does not have OC triggers or IC triggers.

As of March 31, 2016, our subsidiary, RAIT 2015-FL5 Trust, or RAIT FL5, has $347,446 of total collateral at par value, none of which is defaulted. RAIT FL5 had classes of investment grade senior notes with an aggregate principal balance outstanding of approximately $263,624 to investors.  Upon closing we retained $23,019 of investment grade notes and all of the unrated classes of junior notes and equity. In February 2016, we contributed the unrated classes of junior notes and equity of RAIT FL5 to a venture. We retained a 60% interest in the venture, and, as a result of our control, we consolidate the venture.  We received approximately $24.8 million of proceeds as a result of this contribution. RAIT FL5 does not have OC triggers or IC triggers.  In April 2016, we sold the $23,019 of investment grade notes.

Loans payable on real estate. As of March 30, 2016 and December 31, 2015, we had $761,767 and $815,746, respectively, of other indebtedness outstanding relating to loans payable on consolidated real estate. These loans are secured by specific consolidated real estate and commercial loans included in our consolidated balance sheets.

Maturity of Indebtedness

Generally, the majority of our indebtedness is payable in full upon the maturity or termination date of the underlying indebtedness.  The following table displays the aggregate contractual maturities of our indebtedness on or before December 31 by year:

	Recourse indebtedness		Non-recourse indebtedness
2016	$	82,622	$	182,762
2017		34,000		18,470
2018		57,179		370,299
2019		88,905		5,347
2020		-		43,309
Thereafter (1)		275,569		2,141,445
Total	$	538,275	$	2,761,632

(1) Includes $30,048 of our 7.0% convertible senior notes which are redeemable at par at the option of the holder in April 2016, April 2021, and April 2026.  Includes $141,750 of our 4.0% convertible senior notes which are redeemable at par at the option of the holder in October 2018, October 2023, and October 2028.  

XML

DERIVATIVE FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 6: DERIVATIVE FINANCIAL INSTRUMENTS

We may use derivative financial instruments to hedge all or a portion of the interest rate risk associated with our borrowings. The principal objective of such arrangements is to minimize the risks and/or costs associated with our operating and financial structure as well as to hedge specific anticipated transactions.  While these instruments may impact our periodic cash flows, they benefit us by minimizing the risks and/or costs previously described. The counterparties to these contractual arrangements are major financial institutions with which we and our affiliates may also have other financial relationships. In the event of nonperformance by the counterparties, we are potentially exposed to credit loss. However, because of the high credit ratings of the counterparties, we do not anticipate that any of the counterparties will fail to meet their obligations.

Interest Rate Swaps and Caps

We have entered into various interest rate swap contracts to hedge interest rate exposure on floating rate indebtedness. IRT has also entered into an interest cap contract to hedge its interest rate exposure on floating rate indebtedness.  

We designate interest rate hedge agreements at inception and determine whether or not the interest rate hedge agreement is highly effective in offsetting interest rate fluctuations associated with the identified indebtedness. At designation, certain of these interest rate swaps had a fair value not equal to zero. However, we concluded, at designation, that these hedging arrangements were highly effective during their term using regression analysis and determined that the hypothetical derivative method would be used in measuring any ineffectiveness. At each reporting period, we update our regression analysis and, as of March 31, 2016, we concluded that these hedging arrangements were highly effective during their remaining term and used the hypothetical derivative method in measuring the ineffective portions of these hedging arrangements.

The following table summarizes the aggregate notional amount and estimated net fair value of our derivative instruments as of March 31, 2016 and December 31, 2015:

	As of March 31, 2016							As of December 31, 2015
	Notional		Fair Value of Assets		Fair Value of Liabilities			Notional		Fair Value of Assets		Fair Value of Liabilities
Cash flow hedges:
Interest rate swaps	$	171,288	$	-	$	(2,401	)	$	243,816	$	—	$	(4,672	)
Interest rate cap		200,000		6		-			200,000		24		-
Other interest rate swaps		43,925		-		(1,780	)		37,325		182		(55	)
Net fair value	$	415,213	$	6	$	(4,181	)	$	481,141	$	206	$	(4,727	)

During the period April 1, 2016 through September 30, 2016, interest rate swap agreements relating to RAIT I and RAIT II with a notional amount of $171,288 and a weighted average strike rate of 4.8% as of March 31, 2016, will terminate in accordance with their terms.

Effective interest rate swaps and caps are reported in accumulated other comprehensive income and the fair value of these hedge agreements is included in other assets or derivative liabilities.

For interest rate swaps and caps that are considered effective hedges, we reclassified realized losses of $2,403 and $4,967, respectively, to earnings for the three months ended March 31, 2016 and 2015.

Changes in the fair value of our other interest rate swaps are reported in change in fair value of financial instruments in the Consolidated Statements of Operations.  

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 7: FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair Value of Financial Instruments

FASB ASC Topic 825, “Financial Instruments” requires disclosure of the fair value of financial instruments for which it is practicable to estimate that value. The fair value of investments in mortgages and loans, investments in securities, CDO notes payable, convertible senior notes, junior subordinated notes, warrants and investor share appreciation rights, or SARs and derivative assets and liabilities is based on significant observable and unobservable inputs. The fair value of cash and cash equivalents, restricted cash, secured credit facilities, CMBS facilities, commercial mortgage facilities and other indebtedness approximates cost due to the nature of these instruments.

The following table summarizes the carrying amount and the fair value of our financial instruments as of March 31, 2016:

Financial Instrument	Carrying Amount		Estimated Fair Value
Assets
Commercial mortgages, mezzanine loans, and preferred equity interests	$	1,594,467	$	1,538,346
Cash and cash equivalents		94,569		94,569
Restricted cash		200,166		200,166
Derivative assets		6		6
Liabilities
Recourse indebtedness:
7.0% convertible senior notes		29,004		25,541
4.0% convertible senior notes		133,763		113,754
7.625% senior notes		58,014		47,712
7.125% senior notes		69,896		65,807
Senior secured notes		61,847		66,521
Junior subordinated notes, at fair value		9,785		9,785
Junior subordinated notes, at amortized cost		24,887		10,236
CMBS facilities		122,270		122,801
Non-recourse indebtedness:
Secured credit facilities		320,855		324,977
Term loans		89,277		90,216
CDO notes payable, at amortized cost		905,230		741,480
CMBS securitizations		660,139		657,753
Loans payable on real estate		757,668		787,681
Other indebtedness		24,595		24,321
Derivative liabilities		4,181		4,181
Warrants and investor SARs		29,100		29,100

The following table summarizes the carrying amount and the fair value of our financial instruments as of December 31, 2015:

Financial Instrument	Carrying Amount		Estimated Fair Value
Assets
Commercial mortgages, mezzanine loans, and    preferred equity interests, net	$	1,606,486	$	1,537,086
Cash and cash equivalents		125,886		125,886
Restricted cash		213,012		213,012
Derivative assets		206		206
Liabilities
Recourse indebtedness:
7.0% convertible senior notes		28,868		27,795
4.0% convertible senior notes		133,039		104,184
7.625% senior notes		57,952		46,560
7.125% senior notes		69,749		62,471
Senior secured notes		63,045		66,725
Junior subordinated notes, at fair value		10,504		10,504
Junior subordinated notes, at amortized cost		24,884		11,221
CMBS facilities		96,723		97,067
Non-recourse indebtedness:
Secured credit facilities		267,155		271,500
Term loans		118,418		120,000
CDO notes payable, at amortized cost		937,569		801,289
CMBS securitizations		708,510		709,001
Loans payable on real estate		811,666		834,816
Derivative liabilities		4,727		4,727
Warrants and investor SARs		26,200		26,200

Fair Value Measurements

The following tables summarize information about our assets and liabilities measured at fair value on a recurring basis as of March 31, 2016, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of March 31, 2016
Derivative assets	$	—	$	6	$	—	$	6
Total assets	$	—	$	6	$	—	$	6

Liabilities:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of March 31, 2016
Junior subordinated notes, at fair value	$	—	$	—	$	9,785	$	9,785
Derivative liabilities		—		4,181		—		4,181
Warrants and investor SARs		—		—		29,100		29,100
Total liabilities	$	—	$	4,181	$	38,885	$	43,066

(a) During the three months ended March 31, 2016, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

The following tables summarize information about our assets and liabilities measured at fair value on a recurring basis as of December 31, 2015, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of December 31, 2015
Derivative assets	$	—	$	206	$	—	$	206
Total assets	$	—	$	206	$	—	$	206

Liabilities:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of December 31, 2015
Junior subordinated notes, at fair value	$	—	$	—	$	10,504	$	10,504
Derivative liabilities		—		4,727		—		4,727
Warrants and investor SARs		—		—		26,200		26,200
Total liabilities	$	—	$	4,727	$	36,704	$	41,431

(a) During the year ended December 31, 2015, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

When estimating the fair value of our Level 3 financial instruments, management uses various observable and unobservable inputs. These inputs include yields, credit spreads, duration, effective dollar prices and overall market conditions on not only the exact financial instrument for which management is estimating the fair value, but also financial instruments that are similar or issued by the same issuer when such inputs are unavailable. Generally, an increase in the yields, credit spreads or estimated duration will decrease the fair value of our financial instruments. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value, as determined by management, may fluctuate from period to period and any ultimate liquidation or sale of the investment may result in proceeds that may be significantly different than fair value.  

For the fair value of our junior subordinated notes, at fair value, and warrant and investor SARs classified as Level 3 liabilities, we estimate the fair value of these financial instruments using significant unobservable inputs.  For the junior subordinated notes, at fair value, we use a discounted cash flow model as the valuation technique and the significant unobservable inputs as of December 31, 2015 include discount rates ranging from 12.9% to 13.3% and as of March 31, 2016 include discount rates ranging from 13.0% to 13.4%.  For the warrants and investor SARs, we utilized a third party valuation firm who used a binomial model as the valuation technique and the significant unobservable inputs as of March 31, 2016 and December 31, 2015 include 61.0% and 61.0%, respectively, for the annual volatility of our common shares of beneficial interest over the term of the warrants and investor SARs, 11.5% and 12.0%, respectively, for the credit adjusted discount rate on our unsecured debt issued that may be issued in satisfaction of the warrants and investor SARs, and 10.0% and 10.6%, respectively, for the dividend rate and future dividend rate on our common shares of beneficial interest.

The following table summarizes additional information about assets and liabilities that are measured at fair value on a recurring basis for which we have utilized level 3 inputs to determine fair value for the three months ended March 31, 2016:

Liabilities	Warrants and investor SARS		Junior Subordinated Notes, at Fair Value			Total Level 3 Liabilities
Balance, as of December 31, 2015	$	26,200	$	10,504		$	36,704
Change in fair value of financial instruments		2,900		(719	)		2,181
Purchases		—		—			—
Principal Repayments		—		—			—
Balance, as of March 31, 2016	$	29,100	$	9,785		$	38,885

Non-Recurring Fair Value Measurements

As of March 31, 2016, we measured a real estate asset at a fair value of $6,386 in our consolidated balance sheets as it was impaired.  The fair value was based on an executed letter of intent to sell the real estate asset and was classified within Level 2 of the fair value hierarchy.  The significant input was the purchase price derived by the potential buyer.

Our other non-recurring fair value measurements relate primarily to our commercial real estate loans that are considered impaired and for which we maintain an allowance for loss. In determining the allowance for losses, we estimate the fair value of the respective commercial real estate loan and compare that fair value to our total investment in the loan. When estimating the fair value of the commercial real estate loan, management uses discounted cash flow analyses and capitalization rates on the underlying property’s net operating income. The discounted cash flow analyses and capitalization rates are based on market information and comparable sales of similar properties.  These methodologies are classified in Level 3 of the fair value hierarchy.

The following tables summarize the valuation technique and the level of the fair value hierarchy for financial instruments that are not fair valued in the accompanying consolidated balance sheets but for which fair value is required to be disclosed. The fair value of cash and cash equivalents, restricted cash, secured credit facilities, CMBS facilities, commercial mortgage facilities and other indebtedness approximates cost due to the nature of these instruments and are not included in the tables below.

						Fair Value Measurement
	Carrying Amount as of March 31, 2016		Estimated Fair Value as of March 31, 2016		Valuation Technique	QuotedPrices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	$	1,594,467	$	1,538,346	Discountedcash flows	$	—	$	—	$	1,551,077
7.0% convertible senior notes		29,004		25,541	Trading price		25,506		—		—
4.0% convertible senior notes		133,763		113,754	Trading price		113,754		—
7.625% senior notes		58,014		47,712	Trading price		47,712		—		—
7.125% senior notes		69,896		65,807	Trading price		65,807		—
Senior secured notes		61,847		66,521	Discounted cash flows		—		—		66,521
Junior subordinated notes, at amortized cost		24,887		10,236	Discounted cash flows		—		—		10,236
CDO notes payable, at amortized cost		905,230		741,480	Discounted cash flows		—		—		741,480
CMBS securitizations		660,139		657,753	Discounted cash flows		—		—		657,753
Loans payable on real estate		757,668		787,681	Discounted cash flows		—		—		787,681

						Fair Value Measurement
	Carrying Amount as of December 31, 2015		Estimated Fair Value as of December 31, 2015		Valuation Technique	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	$	1,606,486	$	1,537,086	Discountedcash flows	$	—	$	—	$	1,537,086
7.0% convertible senior notes		28,868		27,795	Trading price		27,795		—		—
4.0% convertible senior notes		133,039		104,184	Trading price		104,184		—		—
7.625% senior notes		57,952		46,560	'Trading price		46,560		—		—
7.125% senior notes		69,749		62,471	Trading price		62,471		—		—
Senior secured notes		63,045		66,725	Discounted cash flows		—		—		66,725
Junior subordinated notes, at amortized cost		24,884		11,221	Discounted cash flows		—		—		11,221
CDO notes payable, at amortized cost		937,569		801,289	Discounted cash flows		—		—		801,289
CMBS securitization		708,510		709,001	Discounted cash flows		—		—		709,001
Loans payable on real estate		811,666		834,816	Discounted cash flows		—		—		834,816

Change in Fair Value of Financial Instruments

The following table summarizes realized and unrealized gains and losses on assets and liabilities for which we elected the fair value option of FASB ASC Topic 825, “Financial Instruments” and derivatives as reported in change in fair value of financial instruments in the accompanying consolidated statements of operations:

	For the Three Months Ended March 31,
Description	2016			2015
Change in fair value of trading securities and    security-related receivables	$	—		$	(171	)
Change in fair value of junior subordinated notes		719			(81	)
Change in fair value of derivatives		(1,907	)		(2,047	)
Change in fair value of warrants and investors SARs		(2,900	)		6,789
Change in fair value of financial instruments	$	(4,088	)	$	4,490

The changes in the fair value for the trading securities and security-related receivables, and junior subordinated notes for which the fair value option was elected for the three months ended March 31, 2016 and 2015 was primarily attributable to changes in instrument specific credit risks. The changes in the fair value of derivatives for which the fair value option was elected for the three months ended March 31, 2016 and 2015 were mainly due to changes in interest rates. The changes in fair value of the warrants and investor SARs for the three months ended March 31, 2016 and 2015 were due to changes in the reference stock price and volatility.

XML

VARIABLE INTEREST ENTITIES

3 Months Ended

Mar. 31, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

NOTE 8: VARIABLE INTEREST ENTITIES

The determination of when to consolidate a VIE is based on the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance together with either the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. On January 1, 2016, we adopted a new accounting standard related to consolidation.  Refer to NOTE 2: Summary of Significant Accounting Policies for further information.  We evaluated our investments and determined that, as of March 31, 2016 and December 31, 2015, our consolidated VIEs were: RAIT I, RAIT II, IRT, and RAIT VIE Properties (Willow Grove, Cherry Hill, South Terrace, Cole’s Crossing, McDowell, and our ten industrial properties).  Also, as of March 31, 2016, the venture described in Note 5: Indebtedness was determined to be a VIE (RAIT Venture VIE). The following table presents the assets and liabilities of our consolidated VIEs as of each respective date.

	As of March 31, 2016
	RAIT Securitizations			IRT			RAIT VIE Properties			RAIT Venture VIE		Total
Assets
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and    preferred equity interests	$	1,330,285		$	—		$	—		$	346,385	$	1,676,670
Allowance for losses		—			—			—			—		0
Total investments in mortgages and loans		1,330,285			—			—			346,385		1,676,670
Investments in real estate
Investments in real estate		—			1,357,338			279,008			—		1,636,346
Accumulated depreciation		—			(44,422	)		(28,874	)		—		(73,296	)
Total investments in real estate		—			1,312,916			250,134			—		1,563,050
Cash and cash equivalents		—			21,924			1,761			722		24,407
Restricted cash		11,295			7,015			3,290			3		21,603
Accrued interest receivable		76,722			—			—			1,555		78,277
Other assets		11,735			2,795			13,492			—		28,022
Intangible assets
Intangible assets		—			15,287			5,245			—		20,532
Accumulated amortization		—			(15,287	)		(2,196	)		—		(17,483	)
Total intangible assets		—			—			3,049			—		3,049
Total assets	$	1,430,037		$	1,344,650		$	271,726		$	348,665	$	3,395,078
Liabilities and Equity
Indebtedness	$	1,146,378		$	940,336		$	273,548		$	307,704	$	2,667,966
Accrued interest payable		456			1,175			15,935			613		18,179
Accounts payable and accrued expenses		2			16,089			5,676			—		21,767
Derivative liabilities		2,401			—			—			—		2,401
Deferred taxes, borrowers’ escrows and other liabilities		—			6,078			22,194			630		28,902
Total liabilities		1,149,237			963,678			317,353			308,947		2,739,215
Equity:
Shareholders’ equity:
Accumulated other comprehensive income (loss)		(2,409	)		(26	)		—			—		(2,435	)
RAIT investment		118,291			75,542			17,887			38,628		250,348
Retained earnings (deficit)		164,918			(23,090	)		(62,768	)		1,090		80,150
Total shareholders’ equity		280,800			52,426			(44,881	)		39,718		328,063
Noncontrolling Interests		—			328,546			(746	)		—		327,800
Total liabilities and equity	$	1,430,037		$	1,344,650		$	271,726		$	348,665	$	3,395,078

	As of December 31, 2015
	RAIT Securitizations			IRT			RAIT VIE Properties			Total
Assets
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and    preferred equity interests	$	1,358,497		$	—		$	—		$	1,358,497
Allowance for losses		—			—			—			—
Total investments in mortgages and loans		1,358,497			—			—			1,358,497
Investments in real estate
Investments in real estate		—			1,372,015			278,774			1,650,789
Accumulated depreciation		—			(39,638	)		(26,398	)		(66,036	)
Total investments in real estate		—			1,332,377			252,376			1,584,753
Cash and cash equivalents		—			38,301			1,589			39,890
Restricted cash		12,718			5,413			2,859			20,990
Accrued interest receivable		73,368			—			—			73,368
Other assets		11,539			3,362			13,740			28,641
Intangible assets
Intangible assets		—			15,287			5,245			20,532
Accumulated amortization		—			(11,551	)		(1,446	)		(12,997	)
Total intangible assets		—			3,736			3,799			7,535
Total assets	$	1,456,122		$	1,383,189		$	274,363		$	3,113,674
Liabilities and Equity
Indebtedness	$	1,178,794		$	966,611		$	273,766		$	2,419,171
Accrued interest payable		445			1,239			13,997			15,681
Accounts payable and accrued expenses		8			19,304			6,000			25,312
Derivative liabilities		4,672			—			—			4,672
Deferred taxes, borrowers’ escrows and other liabilities		—			6,004			22,214			28,218
Total liabilities		1,183,919			993,158			315,977			2,493,054
Equity:
Shareholders’ equity:
Accumulated other comprehensive income (loss)		(4,691	)		(8	)		—			(4,699	)
RAIT investment		115,810			68,273			17,420			201,503
Retained earnings (deficit)		161,084			(14,499	)		(59,454	)		87,131
Total shareholders’ equity		272,203			53,766			(42,034	)		283,935
Noncontrolling Interests		—			336,265			420			336,685
Total liabilities and equity	$	1,456,122		$	1,383,189		$	274,363		$	3,113,674

The assets of the VIEs can only be used to settle obligations of the VIEs and are not available to our creditors. Certain amounts included in the table above are eliminated upon consolidation with our other subsidiaries that maintain investments in the debt or equity securities issued by these entities. We do not have any contractual obligation to provide the VIEs listed above with any financial support. We have not and do not intend to provide financial support to these VIEs that we were not previously contractually required to provide.

XML

SERIES D PREFERRED SHARES

3 Months Ended

Mar. 31, 2016

Temporary Equity Disclosure [Abstract]

SERIES D PREFERRED SHARES

NOTE 9: SERIES D PREFERRED SHARES

On October 1, 2012, we entered into a Securities Purchase Agreement, or the purchase agreement, with ARS VI Investor I, LLC, or the investor, an affiliate of Almanac Realty Investors, LLC, or Almanac. During the period from the effective date of the purchase agreement through March 31, 2016, we sold to the investor on a private placement basis in four sales between October 2012 and March 2014 for an aggregate purchase price of $100,000, or the total commitment, the following securities, in the aggregate: (i) 4,000,000 Series D Cumulative Redeemable Preferred Shares of Beneficial Interest, par value $0.01 per share, of RAIT, or the Series D Preferred Shares, (ii) common share purchase warrants, or the warrants, exercisable for 9,931,000 of our common shares, or the common shares which have subsequently adjusted to 11,014,048 shares), and (iii) common share appreciation rights, or the investor SARs, with respect to up to 6,735,667 common shares (which have subsequently adjusted to 7,470,241 shares).

In September 2015, we amended the Securities Purchase Agreement with Almanac related to the Series D Preferred Shares.  This amendment changed two of the covenants therein.  As consideration for this amendment, we paid Almanac $450.  We accounted for this amendment as a modification of the Series D Preferred Shares.

The warrants and investor SARs had an initial strike price of $6.00 per common share, subject to adjustment. As of the filing of this report, the strike price has adjusted to $5.41.

The warrants and investor SARs were both determined to be classified as liabilities and had a combined fair value of $29,100 as of March 31, 2016. The initial fair value of the warrants and investor SARs are recorded as a liability and re-measured at each reporting period until the warrants and investor SARs are settled. Changes in fair value will be recorded in earnings as a component of the change in fair value of financial instruments in the consolidated statement of operations.

The following table summarizes the sales activity of the Series D Preferred Shares from the effective date of the agreement through March 31, 2016:

Aggregate purchase price			$	100,000
Initial value of warrants and investor SARs issued to-date	(21,805	)
Costs incurred	(6,834	)
Total discount				(28,639	)
Discount amortization to-date				15,724
Carrying amount of Series D Preferred Shares			$	87,085

XML

SHAREHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

SHAREHOLDERS' EQUITY

NOTE 10: SHAREHOLDERS’ EQUITY

Preferred Shares

Dividends:

The following table summarizes the dividends we declared and paid on the preferred shares for the three months ended March 31, 2016:

	March 31, 2016
Series A Preferred Shares
Date declared	2/16/2016
Record date	3/1/2016
Date paid	3/31/2016
Total dividend amount	$	2,570
Series B Preferred Shares
Date declared	2/16/2016
Record date	3/1/2016
Date paid	3/31/2016
Total dividend amount	$	1,225
Series C Preferred Shares
Date declared	2/16/2016
Record date	3/1/2016
Date paid	3/31/2016
Total dividend amount	$	910
Series D Preferred Shares
Date declared	2/16/2016
Record date	3/1/2016
Date paid	3/31/2016
Total dividend amount	$	2,125

At Market Issuance Sales Agreement (ATM):

On June 13, 2014, we entered into an At Market Issuance Sales Agreement, or the 2014 Preferred ATM agreement, with MLV & Co. LLC, or MLV, providing that, from time to time during the term of the 2014 Preferred ATM agreement, on the terms and subject to the conditions set forth therein, we may issue and sell through MLV up to $150,000 aggregate amount of preferred shares.

With respect to each series of preferred shares, the maximum amount issuable is as follows: 4,000,000 Series A Preferred Shares, 1,000,000 Series B Preferred Shares, and 1,000,000 Series C Preferred Shares. Unless the 2014 Preferred ATM agreement is earlier terminated by MLV or us, the 2014 Preferred ATM agreement automatically terminates upon the issuance and sale of all of the Series A Preferred Shares, Series B Preferred Shares, and Series C Preferred Shares.

As of March 31, 2016, 2,763,204 Series A Preferred Shares, 947,496 Series B Preferred Shares, and 999,675 Series C Preferred Shares remain available for issuance under the 2014 Preferred ATM agreement.

Common Shares

Dividends:

On March 14, 2016, the board of trustees declared a $0.09 dividend on our common shares to holders of record as of April 8, 2016. The dividend was paid on April 29, 2016 and totaled $8,200. During the three months ended March 31, 2016, we also paid $348 of dividends on restricted common share awards that vested in this period.

Equity Compensation:

On February 23, 2016, the compensation committee awarded 168,776 common share awards, valued at $400 using our closing stock price of $2.37, to the board’s non-management trustees. These awards vested immediately. On February 22, 2016, the compensation committee awarded 367,000 restricted common share awards, valued at $873 using our closing stock price of $2.38, to our non-executive officer employees. These awards generally vest over a three-year period.

On February 22, 2016, the compensation committee awarded 895,000 stock appreciation rights, or SARs, valued at $206 based on a Black-Scholes option pricing model at the date of grant, to our non-executive officer employees. The SARs vest over a three-year period and may be exercised between the date of vesting and February 22, 2021, the expiration date of the SARs.

On March 31, 2015, the compensation committee adopted a 2015 Annual Incentive Compensation Plan, or the annual cash bonus plan, and made awards to three of our executive officers, or the eligible officers, setting forth the basis on which 2015 target cash bonus awards are earned. In addition, the compensation committee adopted a 2015 Long Term Incentive Plan, or the LTIP, and made awards, or the 2015 awards, to the eligible officers setting forth the basis on which the eligible officers could earn equity compensation for the years 2015 through 2018. Pursuant to the LTIP, each eligible officer was granted an initial long term equity award, consisting of both a performance share unit award for a three year performance period and an annual restricted share award vesting over a four year period. Three components of the performance share unit award have market conditions and had grant date fair values of $3.35, $3.26 and $2.17 per share. Both the annual cash bonus plan and the LTIP were adopted pursuant to our 2012 Incentive Award Plan. For the three months ended March 31, 2016, we recorded $122 of compensation expense related to the LTIP.

On April 22, 2016, the compensation committee made 2016 awards, or the 2016 awards, to the eligible executives pursuant to the annual cash bonus plan and the LTIP.  The LTIP awards consist of both a performance share unit award for a three year performance period commencing January 1, 2016 and ending December 31, 2018 and an annual restricted share award vesting over a four year period.

The total compensation awarded under our new short term annual cash bonus plan is at-risk and tied to pre-determined performance criteria. For 2015, 75% of the target cash bonus awards is payable based on the following objective performance goals and weightings; cash available for distribution per share of 35%, adjusted book value per share of 20% and return on equity at 20%. The amounts are earned based on our annual performance relative to threshold, target and maximum performance goals for these objective measures, with 50% of target incentive opportunity payable based on threshold performance achieved, 100% based on target performance achieved and 150% based on maximum performance achieved. The remaining 25% of the target cash bonus award is based on the achievement of various individual performance criterion that may be earned based on individual performance factors deemed relevant by the compensation committee.

The long term incentive plan is an equity program whereby long-term performance awards are granted each year and earned based on our performance over a three year period. Compensation awarded under the long term equity plan is based on predefined performance for 75% of the award, performance measures and weighting for the performance component of the 2015-2017 awards are based on the following objective performance measures relating to the total shareholder return (stock price appreciation plus aggregate dividends or TSR); TSR as compared to a peer group of public companies over the same period at 40%, TSR as compared to the TSR for the NAREIT Mortgage Index at 20%, company’s absolute TSR at 20%, and strategic objective at 20%. The remaining 25% of the compensation award is time-based vesting over three years.

Independence Realty Trust, Inc.

On February 12, 2016, the compensation committee of IRT awarded 210,000 shares of IRT restricted common stock, valued at $1,306 using IRT’s closing stock price of $6.22, to persons affiliated with IRT’s advisor, including their executive officers.  These awards generally vest over three-year periods.

Dividend Reinvestment and Share Purchase Plan (DRSPP):

We have a dividend reinvestment and share purchase plan, or DRSPP, under which we registered and reserved for issuance, in the aggregate, 10,500,000 common shares. During the three months ended March 31, 2016, we issued a total of 2,527 common shares pursuant to the DRSPP at a weighted-average price of $2.56 per share and we received $6 of net proceeds. As of March 31, 2016, 7,759,195 common shares, in the aggregate, remain available for issuance under the DRSPP.

Capital on Demand™ Sales Agreement (COD):

On November 21, 2012, we entered into a Capital on Demand™ Sales Agreement, or the COD sales agreement, with JonesTrading Institutional Services LLC, or JonesTrading, pursuant to which we may issue and sell up to 10,000,000 of our common shares from time to time through JonesTrading acting as agent and/or principal, subject to the terms and conditions of the COD sales agreement. Unless the COD sales agreement is earlier terminated by JonesTrading or us, the COD sales agreement automatically terminates upon the issuance and sale of all of the common shares subject to the COD sales agreement. During the three months ended March 31, 2016, we did not issue any common shares pursuant to this agreement. As of March 31, 2016, 7,918,919 common shares, in the aggregate, remain available for issuance under the COD sales agreement.

Noncontrolling Interests

On September 17, 2015, IRT issued 15,110,994 shares of IRT common stock in connection with the TSRE merger. As of March 31, 2016 and December 31, 2015, we held 7,269,719 shares, of IRT common stock representing 15.4% and 15.5%, respectively, of the outstanding shares of IRT common stock.  On September 17, 2015 IRT also issued 1,925,419 IROP units in connection with the TSRE merger. We consolidate IRT as it is a VIE and we are the primary beneficiary. See Note 8 for additional disclosures pertaining to VIEs.

XML

EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

EARNINGS (LOSS) PER SHARE

NOTE 11: EARNINGS (LOSS) PER SHARE

The following table presents a reconciliation of basic and diluted earnings (loss) per share for the three months ended March 31, 2016 and 2015:

	For the Three Months Ended March 31,
	2016			2015
Net income (loss)	$	(10,503	)	$	266
(Income) loss allocated to preferred shares		(8,520	)		(7,859	)
(Income) loss allocated to noncontrolling interests		1,179			496
Net income (loss) allocable to common shares	$	(17,844	)	$	(7,097	)
Weighted-average shares outstanding—Basic		91,018,160			82,081,024
Dilutive securities		—			—
Weighted-average shares outstanding—Diluted		91,018,160			82,081,024
Earnings (loss) per share—Basic:
Earnings (loss) per share—Basic	$	(0.20	)	$	(0.09	)
Earnings (loss) per share—Diluted:
Earnings (loss) per share—Diluted	$	(0.20	)	$	(0.09	)

For the three months ended March 31, 2016 and 2015, securities convertible into 32,325,109 and 31,562,037 common shares, respectively, were excluded from the earnings (loss) per share computations because their effect would have been anti-dilutive.

XML

RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2016

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 12: RELATED PARTY TRANSACTIONS

In the ordinary course of our business operations, we have ongoing relationships and have engaged in transactions with the related entities described below. All of these relationships and transactions were approved or ratified by our audit committee as being on terms comparable to those available on an arm’s-length basis from an unaffiliated third party or otherwise not creating a conflict of interest.

Andrew M. Silberstein serves as a trustee on our board of trustees, as designated pursuant to the purchase agreement. Mr. Silberstein is an equity owner of Almanac and an officer of the investor and holds indirect equity interests in the investor. The transactions pursuant to the purchase agreement are described above in Note 9.

XML

SUPPLEMENTAL DISCLOSURE TO STATEMENT OF CASH FLOWS

3 Months Ended

Mar. 31, 2016

Supplemental Cash Flow Elements [Abstract]

SUPPLEMENTAL DISCLOSURE TO STATEMENT OF CASH FLOWS

NOTE 13: SUPPLEMENTAL DISCLOSURE TO STATEMENT OF CASH FLOWS

The following are supplemental disclosures to the statements of cash flows for the three months ended March 31, 2016 and 2015:

	For the Three Months Ended March 31,
	2016			2015
Cash paid for interest	$	22,766		$	13,933
Cash paid for taxes		120			57
Non-cash decrease in investments in real estate, intangible assets and other liabilities from conversion of loans		(1,499	)		—

For a discussion of the non-cash decrease in investments in real estate, intangible assets and other liabilities that occurred during the three months ended March 31, 2016, see Note 4.

XML

SEGMENT REPORTING

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 14: SEGMENT REPORTING

As a group, our executive officers act as the Chief Operating Decision Maker (“CODM”). The CODM reviews operating results of our reportable segments to make decisions about investments and resources and to assess performance for each of these reportable segments. We conduct our business through the following reportable segments:

· Our real estate lending, owning and managing segment concentrates on lending, owning and managing commercial real estate assets throughout the United States. The form of our investment may range from first mortgage loans to equity ownership of a commercial real estate property. We manage our investments in-house through our asset management and property management professionals.

· Our IRT segment concentrates on the ownership of apartment properties in opportunistic markets throughout the United States. As of March 31, 2016, IRT owns properties totaling $1,357,338 in gross real estate investments, before accumulated depreciation.

	Real Estate Lending Owning and Management			IRT			Eliminations (a)			Consolidated
Three-Month Period Ended March 31, 2016:
Net interest margin	$	18,171		$	-		$	(265	)	$	17,906
Property income		30,056			38,666			—			68,722
Fee and other income		9,725			—			(6,873	)		2,852
Provision for losses		1,325			—			—			1,325
Depreciation and amortization expense		12,749			11,527			—			24,276
Operating income		(3,650	)		(2,590	)		—			(6,240	)
Change in fair value of financial instruments		(4,088	)		—			—			(4,088	)
Income tax benefit (provision)		993			—			—			993
Net income (loss)		(9,148	)		(46	)		(1,309	)		(10,503	)
Three-Month Period Ended March 31, 2015:
Net interest margin	$	16,572		$	-		$	(238	)	$	16,334
Property income		31,617			21,657			—			53,274
Fee and other income		9,790			—			(4,196	)		5,594
Provision for losses		2,000			—			—			2,000
Depreciation and amortization expense		12,986			6,038			—			19,024
Operating income		(3,004	)		(242	)		(1	)		(3,247	)
Change in fair value of financial instruments		4,490			—			—			4,490
Income tax benefit (provision)		(582	)		—			—			(582	)
Net income (loss)		1,817			(241	)		(1,310	)		266

(a) The transactions that occur between the reportable segments include advisory and property management services, as well as, providing commercial mortgages on our owned real estate.

XML

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2016

Commitments And Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 15: COMMITMENTS AND CONTINGENCIES

We are involved from time to time in litigation on various matters, including disputes with tenants of owned properties, disputes arising out of agreements to purchase or sell properties and disputes arising out of our loan portfolio. Given the nature of our business activities, these lawsuits are considered routine to the conduct of our business. The result of any particular lawsuit cannot be predicted, because of the very nature of litigation, the litigation process and its adversarial nature, and the jury system. We do not expect that the liabilities, if any, that may ultimately result from such routine legal actions will have a material adverse effect on our consolidated financial position, results of operations or cash flows.

On November 23, 2015, a shareholders’ derivative action, or the action, captioned Lobins v. Brown, et al., was filed in the Court of Common Pleas of Philadelphia County, or the court, (Civil Case No. 151103347) naming RAIT, as nominal defendant, and certain of our current and former executive officers and trustees as defendants, or the individual defendants.  The complaint in the action alleges that the individual defendants breached their fiduciary duties in connection with certain restructuring fees paid to TCM. These restructuring fees were the subject of the investigation by the staff of the SEC, the settlement of which was concluded on September 3, 2015.  RAIT and the individual defendants have denied and continue to deny each and all of the allegations made in the action.

On March 4, 2016, the court issued an order preliminary approving a proposed settlement of the action.  The proposed settlement consists of the adoption by RAIT of additions to its Trust Governance Guidelines and the creation of a Board-level Risk Management Committee.  The action is not a “class action” and no individual shareholder has the right to receive any direct recovery from the proposed settlement.  The proposed settlement, if finally approved by the court, will fully and finally resolve the issues raised in the action.  The court has scheduled a hearing on June 7, 2016 at which the court will consider: (i) whether to approve the proposed settlement as fair, reasonable, adequate and in the best interests of RAIT and its shareholders; (ii) whether to dismiss the action and whether the releases set forth in the related Stipulation and Agreement of Settlement should be made full and final; (iii) whether the notice provided to RAIT shareholders conformed with court rules and due process; and (iv) whether the court should approve plaintiff’s counsel’s request for attorneys’ fees and reimbursement of expenses in an aggregate amount no greater than $250,000, as well as such other matters as may properly come before the Court.  At this juncture, we cannot guarantee that this approval will be forthcoming.  Similarly, we cannot guarantee what the exact terms of any such final settlement or other resolution of this matter will be.

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation

a. Basis of Presentation

The accompanying unaudited interim consolidated financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles, or GAAP. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although we believe that the included disclosures are adequate to make the information presented not misleading. The unaudited interim consolidated financial statements should be read in conjunction with our audited financial statements as of and for the year ended December 31, 2015 included in our Annual Report on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our consolidated financial position and consolidated results of operations and cash flows are included. The results of operations for the interim periods presented are not necessarily indicative of the results for the full year.

Certain prior period amounts have been reclassified to conform with the current period presentation, including in 2015, reclassifying $695 from property income to real estate operating expense in the amount of $702 and to depreciation and amortization expense in the amount of $7 for the three months ended March 31, 2015.

The Consolidated Statement of Cash Flows for the three months ended March 31, 2015 includes the impact of correcting the reporting of certain activity that occurred in the three months ended March 31, 2015.  Specifically, the correction eliminated the impact of a clerical error made in the determination of the amounts reported for the change in borrowers’ escrows within cash flows from operating activities and the related amounts reported for changes in restricted cash within cash flow from investing activities. The impact of this was a decrease to cash flows from operating activities and an increase to cash flows from investing activities of $18,194 for the three months ended March 31, 2015. This correction had no impact to cash and cash equivalents as of March 31, 2015, nor did it impact any other consolidated financial statement amounts as of March 31, 2015 or for the three months ended March 31, 2015.

We evaluated these error corrections and determined, based on quantitative and qualitative factors, the changes were not material to the consolidated financial statements taken as a whole for any previously filed consolidated financial statements.

Principles of Consolidation

b. Principles of Consolidation

The consolidated financial statements reflect our accounts and the accounts of our majority-owned and/or controlled subsidiaries. We also consolidate entities that are variable interest entities, or VIEs, where we have determined that we are the primary beneficiary of such entities. The portions of these entities that we do not own are presented as noncontrolling interests as of the dates and for the periods presented in the consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation.

Under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 810, “Consolidation”, the determination of whether to consolidate a VIE is based on the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance together with either the obligation to absorb losses or the right to receive benefits that could be significant to the VIE. We define the power to direct the activities that most significantly impact the VIE’s economic performance as the ability to buy, sell, refinance, or recapitalize assets or entities, and solely control other material operating events or items of the entity. For our commercial mortgages, mezzanine loans, and preferred equity investments, certain rights we hold are protective in nature and would preclude us from having the power to direct the activities that most significantly impact the VIE’s economic performance. Assuming both criteria are met, we would be considered the primary beneficiary and would consolidate the VIE. We will continually assess our involvement with VIEs and consolidate the VIEs when we are the primary beneficiary. See Note 8 for additional disclosures pertaining to VIEs.

Use of Estimates

c. Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. The items that include significant estimates are fair value of financial instruments and allowance for loan losses. Actual results could differ from those estimates.

Cash and Cash Equivalents

d. Cash and Cash Equivalents

          Cash and cash equivalents include cash held in banks and highly liquid investments with maturities of three months or less when purchased.  Cash, including amounts restricted, may at times exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250 per institution.  We mitigate credit risk by placing cash and cash equivalents with major financial institutions.  To date, we have not experienced any losses on cash and cash equivalents.

Restricted Cash

e. Restricted Cash

          Restricted cash consists primarily of tenant escrows and borrowers’ funds held by us to fund certain expenditures or to be released at our discretion upon the occurrence of certain pre-specified events, and to serve as additional collateral for borrowers’ loans.  As of March 31, 2016 and December 31, 2015, we had $158,177 and $165,866, respectively, of tenant escrows and borrowers’ funds.

          Restricted cash also includes proceeds from the issuance of securitization notes that are restricted for the purpose of funding additional investments in securities subsequent to the balance sheet date.  As of March 31, 2016 and December 31, 2015, we had $41,989 and $47,146, respectively, of restricted cash held by securitizations.

Investments in Commercial Mortgages, Mezzanine Loans and Preferred Equity Interests

f. Investments in Commercial Mortgages, Mezzanine Loans and Preferred Equity Interests

We invest in commercial mortgages, mezzanine loans, and preferred equity interests. We account for our investments in commercial mortgages, mezzanine loans and preferred equity interests at amortized cost. The carrying value of these investments is adjusted for origination discounts/premiums, nonrefundable fees and direct costs for originating loans which are amortized into income on a level yield basis over the terms of the loans.

Allowance for Loan Losses, Impaired Loans and Non-accrual Status

g. Allowance for Loan Losses, Impaired Loans and Non-accrual Status

We maintain an allowance for loan losses on our investments in commercial mortgages, mezzanine loans and preferred equity interests. Management’s periodic evaluation of the adequacy of the allowance is based upon expected and inherent risks in the portfolio, the estimated value of underlying collateral, and current economic conditions. The credit quality of our loans is monitored via quantitative and qualitative metrics.  Quantitatively we evaluate items such as the current debt service coverage ratio and annual net operating income of the underlying property.  Qualitatively we evaluate items such as recent operating performance of the underlying property and history of the borrower’s ability to provide financial support.  These items together are considered in developing our view of each loan’s risk rating which are categorized as either watchlist/impaired or satisfactory.  Management reviews loans for impairment and establishes specific reserves when a loss is probable under the provisions of FASB ASC Topic 310, “Receivables.” A loan is impaired when it is probable that we may not collect all principal and interest payments according to the contractual terms. As part of the detailed loan review, we consider many factors about the specific loan, including payment history, asset performance, borrower’s financial capability and other characteristics. Management evaluates loans for non-accrual status each reporting period. A loan is placed on non-accrual status when the loan payment deficiencies exceed 90 days or if the collection of principal and interest in full is not probable. Payments received for non-accrual loans are applied to accrued interest receivable. Past due interest is recognized on non-accrual loans when they are removed from non-accrual status and are making current interest payments. The allowance for loan losses is increased by the provision for loan losses and decreased by charge-offs (net of recoveries). We charge off a loan when we determine that all commercially reasonable means of recovering the loan balance have been exhausted.  This may occur at a variety of times, including when we receive cash or other assets in a pre-foreclosure sale or take control of the underlying collateral in full satisfaction of the loan upon foreclosure. We consider circumstances such as these to indicate that the loan collection process has ceased and that a loan is uncollectible.

Investments in Real Estate

h. Investments in Real Estate

Investments in real estate are shown net of accumulated depreciation. We capitalize those costs that have been determined to improve the real property and depreciate those costs on a straight-line basis over the useful life of the asset. We depreciate real property using the following useful lives: buildings and improvements—30 to 40 years; furniture, fixtures, and equipment—5 to 10 years; and tenant improvements—shorter of the lease term or the life of the asset. Costs for ordinary maintenance and repairs are charged to expense as incurred.

Acquisitions of real estate assets and any related intangible assets are recorded initially at fair value under FASB ASC Topic 805, “Business Combinations.” Fair value is determined by management based on market conditions and inputs at the time the asset is acquired. The fair value of the real estate acquired is allocated to the acquired tangible assets, consisting of land, building and tenant improvements, and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases for acquired in-place leases and the value of tenant relationships, based in each case on their fair values. Purchase accounting is applied to assets and liabilities associated with the real estate acquired. Transaction costs and fees incurred related to acquisitions are expensed as incurred.

Upon the acquisition of properties, we estimate the fair value of acquired tangible assets (consisting of land, building and improvements) and identified intangible assets and liabilities (consisting of above and below-market leases, in-place leases and tenant relationships), and assumed debt at the date of acquisition, based on the evaluation of information and estimates available at that date. In determining the fair value of the identified intangible assets and liabilities of an acquired property, above-market and below-market in-place lease values are recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management’s estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining term of the lease. The capitalized above-market lease values and the capitalized below-market lease values are amortized as an adjustment to property income over the lease term.

The aggregate value of in-place leases is determined by evaluating various factors, including an estimate of carrying costs during the expected lease-up periods, current market conditions and similar leases. In estimating carrying costs, management includes real estate taxes, insurance and other operating expenses, and estimates of lost rental revenue during the expected lease-up periods based on current market demand. Management also estimates costs to execute similar leases including leasing commissions, legal and other related costs. The value assigned to this intangible asset is amortized over the assumed lease up period.

Management reviews our investments in real estate for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The review of recoverability is based on an estimate of the future undiscounted cash flows (excluding interest charges) expected to result from the long-lived asset’s use and eventual disposition. These cash flows consider factors such as expected future operating income, trends and prospects, as well as the effects of leasing demand, competition and other factors. If impairment exists due to the inability to recover the carrying value of a long-lived asset, an impairment loss is recorded to the extent that the carrying value exceeds the estimated fair value of the property.

Revenue Recognition

i. Revenue Recognition

1) Interest income—We recognize interest income from investments in commercial mortgages, mezzanine loans, and preferred equity interests on a yield to maturity basis. Certain of our commercial mortgages, mezzanine loans and preferred equity interests provide for the accrual of interest at specified rates which differ from current payment terms. Interest income is recognized on such loans at the accrual rate subject to management’s determination that accrued interest and outstanding principal are ultimately collectible. Management will cease accruing interest on these loans when it determines that the interest income may not be collectible based on the ultimate value of the underlying collateral using discounted cash flow models and market based assumptions. The accrued interest receivable associated with these loans as of March 31, 2016 and December 31, 2015 was $35,977 and $34,132, respectively.  These loans are considered to be impaired when the total amount owed exceeds the value of the underlying collateral.  None of these loans were considered to be impaired as of March 31, 2016 and December 31, 2015.

Origination fees and direct loan origination costs on our investments in commercial mortgages, mezzanine loans and preferred equity interests are deferred and amortized to investment interest income, using the effective interest method, over the contractual life of the underlying loan security or loan, in accordance with FASB ASC Topic 310, “Receivables.”

2) Property income—We generate property income from tenant rent and other tenant-related activities at our consolidated real estate properties. For multi-family real estate properties, property income is recorded when due from residents and recognized monthly as it is earned and realizable, under lease terms which are generally for periods of one year or less. For retail and office real estate properties, property income is recognized on a straight-line basis from the later of the date of the commencement of the lease or the date of acquisition of the property subject to existing leases, which averages minimum rents over the terms of the leases. For retail and office real estate properties, leases also typically provide for tenant reimbursement of a portion of common area maintenance and other operating expenses to the extent that a tenant’s pro rata share of expenses exceeds a base year level set in the lease.

3) Fee and other income—We generate fee and other income through our various subsidiaries by (a) funding conduit loans for sale into unaffiliated commercial mortgage-backed securities, or CMBS, securitizations, (b) providing or arranging to provide financing to our borrowers, (c) providing ongoing asset management services to investment portfolios under cancelable management agreements, and (d) providing property management services to third parties. We recognize revenue for these activities when the fees are fixed or determinable, are evidenced by an arrangement, collection is reasonably assured and the services under the arrangement have been provided. While we may receive asset management fees when they are earned, we eliminate earned asset management fee income from securitizations while such securitizations are consolidated. During the three months ended March 31, 2016 and 2015, we received $402 and $315, respectively, of earned asset management fees, which were eliminated as they were associated with consolidated securitizations.

Also, during the three months ended March 31, 2016 and 2015 we earned $1,631 and $1,001 of asset management fees, respectively, and $65 and $211 of incentive fees, respectively, related to our advisory agreement with IRT.  During the three months ended March 31, 2016 and 2015 we also earned $1,262 and $755, respectively, of property management and leasing fees related to our property management agreements with IRT’s properties.  As we consolidate IRT, these fees are eliminated in consolidation.

Fair Value of Financial Instruments

j. Fair Value of Financial Instruments

In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity for disclosure purposes. Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their value. Hierarchical levels, as defined in FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and directly related to the amount of subjectivity associated with the inputs to fair valuations of these assets and liabilities, are as follows:

· Level 1: Valuations are based on unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. The types of assets carried at Level 1 fair value generally are equity securities listed in active markets. As such, valuations of these investments do not entail a significant degree of judgment.

· Level 2: Valuations are based on quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

· Level 3: Inputs are unobservable inputs for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.  

The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of investment, whether the investment is new, whether the investment is traded on an active exchange or in the secondary market, and the current market condition. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by us in determining fair value is greatest for instruments categorized in Level 3.

Fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, our own assumptions are set to reflect those that management believes market participants would use in pricing the asset or liability at the measurement date. We use prices and inputs that management believes are current as of the measurement

date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be transferred from Level 1 to Level 2 or Level 2 to Level 3.

Many financial instruments have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that buyers in the market are willing to pay for an asset. Ask prices represent the lowest price that sellers in the market are willing to accept for an asset. For financial instruments whose inputs are based on bid-ask prices, we do not require that fair value always be a predetermined point in the bid-ask range. Our policy is to allow for mid-market pricing and adjusting to the point within the bid-ask range that results in our best estimate of fair value.

Fair value for certain of our Level 3 financial instruments is derived using internal valuation models. These internal valuation models include discounted cash flow analyses developed by management using current interest rates, estimates of the term of the particular instrument, specific issuer information and other market data for securities without an active market. In accordance with FASB ASC Topic 820, “Fair Value Measurements and Disclosures”, the impact of our own credit spreads is also considered when measuring the fair value of financial assets or liabilities, including derivative contracts. Where appropriate, valuation adjustments are made to account for various factors, including bid-ask spreads, credit quality and market liquidity. These adjustments are applied on a consistent basis and are based on observable inputs where available. Management’s estimate of fair value requires significant management judgment and is subject to a high degree of variability based upon market conditions, the availability of specific issuer information and management’s assumptions.

Investments in Securities

k. Investments in Securities

          During the first quarter of 2015, we sold all our remaining investments in securities with an aggregate fair value of $31,412 and we had no investments in securities as of March 31, 2016 and December 31, 2015.

Transfers of Financial Assets

l. Transfers of Financial Assets

           We account for transfers of financial assets under FASB ASC Topic 860, “Transfers and Servicing”, as either sales or financings.  Transfers of financial assets that result in sales accounting are those in which (1) the transfer legally isolates the transferred assets from the transferor, (2) the transferee has the right to pledge or exchange the transferred assets and no condition both constrains the transferee’s right to pledge or exchange the assets and provides more than a trivial benefit to the transferor, and (3) the transferor does not maintain effective control over the transferred assets.  If the transfer does not meet these criteria, the transfer is accounted for as a financing.  Financial assets that are treated as sales are removed from our accounts with any realized gain (loss) reflected in earnings during the period of sale.  Financial assets that are treated as financings are maintained on the balance sheet with proceeds received from the legal transfer reflected as securitized borrowings or security-related receivables.

Deferred Financing Costs

m. Deferred Financing Costs

Costs incurred in connection with debt financing are deferred and classified within indebtedness and charged to interest expense over the terms of the related debt agreements, under the effective interest method.

Intangible Assets

n. Intangible Assets

Intangible assets on our consolidated balance sheets represent identifiable intangible assets acquired in business acquisitions. We amortize identified intangible assets to expense over their estimated lives using the straight-line method. We evaluate intangible assets for impairment as events and circumstances change, in accordance with FASB ASC Topic 360, “Property, Plant, and Equipment.” The gross carrying amount for our customer relationships was $19,149 as of March 31, 2016 and December 31, 2015. The gross carrying amount for our in-place leases, above market leases, and ground lease was $38,277 and $38,333 as of March 31, 2016 and December 31, 2015, respectively. The gross carrying amount for Urban Retail’s trade name was $1,500 as of March 31, 2016 and December 31, 2015, respectively. The accumulated amortization for our intangible assets was $32,228 and $26,307 as of March 31, 2016 and December 31, 2015, respectively. We recorded amortization expense of $5,920 and $3,931 for the three months ended March 31, 2016 and 2015, respectively. Based on the intangible assets identified above, we expect to record amortization expense of intangible assets of $5,141 for the remainder of 2016, $4,861 for 2017, $3,662 for 2018, $3,209 for 2019, $2,764 for 2020 and $7,062 thereafter.  

Goodwill

o. Goodwill

Goodwill on our consolidated balance sheet represented the amounts paid in excess of the fair value of the net assets acquired from business acquisitions accounted for under FASB ASC Topic 805, “Business Combinations.” Pursuant to FASB ASC Topic 350, “Intangibles-Goodwill and Other”, goodwill is not amortized to expense but rather is analyzed for impairment. We evaluate goodwill for impairment on an annual basis and as events and circumstances change, in accordance with FASB ASC Topic 350. As of March 31, 2016 and December 31, 2015, we have $8,854 of goodwill that is included in Other Assets in the accompanying consolidated balance sheets. As of March 31, 2016, we have determined that no triggering events occurred that would indicate an impairment on our goodwill.

Recent Accounting Pronouncements

p. Recent Accounting Pronouncements

In May 2014, the FASB issued an accounting standard classified under FASB ASC Topic 606, “Revenue from Contracts with Customers”. This accounting standard generally replaces existing guidance by requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This standard is currently effective for annual reporting periods beginning after December 15, 2017. Management is currently evaluating the impact that this standard may have on our consolidated financial statements.

In February 2015, the FASB issued an accounting standard classified under FASB ASC Topic 810, “Consolidation”. This accounting standard amends the consolidation analysis required under GAAP and requires management to reevaluate all previous consolidation conclusions. This standard considers limited partnerships to be VIEs, unless the limited partners have either substantive kick-out or participating rights. The presumption that a general partner should consolidate a limited partnership has also been eliminated. The standard amends the effect that fees paid to a decision maker or service provider have on the consolidation analysis, as well as amends how variable interests held by a reporting entity’s related parties affect the consolidation conclusion. This standard also clarifies how to determine whether equity holders as a group have power over an entity. This standard was effective for interim and annual reporting periods beginning on or after December 15, 2015, with early adoption permitted. The adoption of this accounting standard did not have an impact on our previous conclusions with respect to the entities consolidated in our consolidated financial statements.

In April 2015, the FASB issued an accounting standard classified under FASB ASC Topic 835, “Interest”. This accounting standard amends existing guidance to change reporting requirements for debt issuance costs by requiring debt issuance costs to be presented on the balance sheet as a direct deduction from the debt liability. This standard was effective for interim and annual reporting periods beginning on or after December 15, 2015, with an early adoption permitted. Retrospective application to prior periods is required. The adoption of this accounting standard resulted in the reclassification of $31,368 of deferred costs, net of $33,769 of accumulated amortization, as of December 31, 2015 to total indebtedness on our consolidated balance sheet.

In September 2015, the FASB issued an accounting standard classified under FASB ASC Topic 805, “Business Combinations”.  This accounting standard amends existing guidance related to measurement period adjustments by requiring the adjustments to be recognized prospectively with disclosure of the impact of the adjustments had they been applied previously.  This standard was effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted.  As this standard only applies to measurement period adjustments that occur after the effective date, this standard did not have a material impact on our consolidated financial statements.

In January 2016, the FASB issued an accounting standard classified under FASB ASC Topic 825, “Financial Instruments”. This accounting standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments.  Among other things, the amendment (i) eliminates certain disclosure requirements for financial instruments measured at amortized cost; (ii) requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (iii) requires separate presentation, in other comprehensive income, of the change in fair value of a liability, when the fair value option has been elected, resulting from a change in the instrument-specific credit risk; and (iv) requires separate presentation of financial instruments by measurement category and form.  This standard is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years.  Early adoption is permitted for the separate presentation of changes in fair value due to changes in instrument-specific credit risk. Management is currently evaluating the impact that this standard may have on our consolidated financial statements.

In February 2016, the FASB issued an accounting standard classified under FASB ASC Topic 842, “Leases”.  This accounting standard amends lease accounting by requiring the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases on the balance sheet and disclosing key information about leasing arrangements.  This standard is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years.  Early application of the amendments in this standard is permitted Management is currently evaluating the impact that this standard may have on our consolidated financial statements.

In March 2016, the FASB issued an accounting standard classified under FASB ASC Topic 815, “Derivatives and Hedging”.  This accounting standard clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met.  This standard is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period.  Management does not expect this standard to have a significant impact on our consolidated financial statements.

In March 2016, the FASB issued an accounting standard classified under FASB ASC Topic 815, “Derivatives and Hedging”. This accounting standard clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts.  This accounting standard clarifies what steps are required when assessing whether the economic characteristics and risks of call (put) options are clearly and closely related to the economic characteristics and risks of their debt hosts, which is one of the criteria for bifurcating an embedded derivative.  Consequently, when a call (put) option is contingently exercisable, an entity does not have to assess whether the event that triggers the ability to exercise a call (put) option is related to interest rates or credit risks.  This standard is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those fiscal years.  Early adoption is permitted, including adoption in an interim period. Management does not expect this standard to have a significant impact on our consolidated financial statements.

In March 2016, the FASB issued an accounting standard classified under FASB ASC Topic 606, “Revenue from Contracts with Customers”.  This accounting standard clarifies the implementation guidance on principal versus agent considerations in Topic 606.  This accounting standard clarifies the following: (i) an entity determines whether it is a principal or an agent for each specified good or service promised to the customer; (ii) an entity determines the nature of each specified good or service (for example, whether it is a good, a service, or a right to a good or service); (iii) when a principal obtains control of a good or right to service whether another party is involved in providing goods or services to a customer; and (iv) the indicators in the assessment of control may be more or less relevant to the control assessment and that one or more indicators may be more or less persuasive to the control assessment, depending on the facts and circumstances.  This standard is effective for annual reporting periods beginning after December 15, 2017. Management is currently evaluating the impact that this standard may have on our consolidated financial statements.

In March 2016, the FASB issued an accounting standard classified under FASB ASC Topic 718, “Compensation – Stock Compensation”.  This accounting standard simplifies several aspects of the accounting for share-based payment award transactions, including: (i) income tax consequences; (ii) classification of awards as either equity or liabilities; and (iii) classification on the statement of cash flows.  This standard is effective for annual periods beginning after December 15, 2016, and interim period within those annual periods. Early adoption is permitted for any entity in any interim or annual period. Management is currently evaluating the impact that this standard may have on our consolidated financial statements.  

In April 2016, the FASB issued an accounting standard classified under FASB ASC Topic 606, “Revenue from Contracts with Customers.” The amendments in this standard add further guidance on identifying performance obligations and clarifying the licensing implementation guidance.  The amendments do not change the core principle of the guidance in Topic 606.  This standard is effective for annual periods beginning after December 15, 2017, including interim periods therein. Management is currently evaluating the impact that this standard may have on consolidated financial statements.

XML

INVESTMENTS IN LOANS (Tables)

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Investments in Loans

The following table summarizes our investments in commercial mortgages, mezzanine loans, and preferred equity interests as of March 31, 2016:

	Unpaid Principal Balance			Unamortized (Discounts) Premiums			Carrying Amount			Number of Loans		Weighted- Average Coupon (1)			Range of Maturity Dates (3)
Commercial Real Estate (CRE)
Commercial mortgages (2)	$	1,421,060		$	(1,001	)	$	1,420,059			121		5.6	%	Apr. 2016 to Jan. 2029
Mezzanine loans		169,415			(218	)	$	169,197			54		9.8	%	May 2016 to May 2025
Preferred equity interests		24,237			(1	)	$	24,236			6		5.9	%	Sept. 2016 to Aug. 2025
Total CRE		1,614,712			(1,220	)	$	1,613,492			181		6.0	%
Deferred fees, net		(860	)					(860	)
Total	$	1,613,852		$	(1,220	)	$	1,612,632

(1) Weighted-average coupon is calculated on the unpaid principal balance, which does not necessarily correspond to the carrying amount.

(2) Commercial mortgages includes seven conduit loans with an unpaid principal balance and carrying amount of $57,928, a weighted-average coupon of 4.9% and maturity dates ranging from December 2020 through February 2026. These commercial mortgages are accounted for as loans held for sale.

(3) Does not include the maturity dates of five mezzanine loans all of which had maturity dates prior to March 31, 2016 and have been identified as impaired.  Three of these loans are 90 days or more past due, one of these loans is 30 to 59 days past due and one of these loans is in the process of being restructured.  

The following table summarizes our investments in commercial mortgages, mezzanine loans, other loans and preferred equity interests as of December 31, 2015:

	Unpaid Principal Balance			Unamortized (Discounts) Premiums			Carrying Amount			Number of Loans		Weighted- Average Coupon (1)			Range of Maturity Dates (3)
Commercial Real Estate (CRE)
Commercial mortgages (2)	$	1,427,328		$	(1,049	)	$	1,426,279			124		5.2	%	Mar.2016 to Jan. 2029
Mezzanine loans		169,556			(218	)		169,338			57		10.0	%	Jan. 2016 to May 2025
Preferred equity interests		30,237			(1	)		30,236			7		6.9	%	Feb. 2016 to Aug. 2025
Total CRE		1,627,121			(1,268	)		1,625,853			188		6.1	%
Deferred fees, net		(2,270	)		—			(2,270	)
Total	$	1,624,851		$	(1,268	)	$	1,623,583

(1) Weighted-average coupon is calculated on the unpaid principal balance, which does not necessarily correspond to the carrying amount.

(2) Commercial mortgages includes six conduit loans with an unpaid principal balance and carrying amount of $49,239, a weighted-average coupon of 4.8% and maturity dates ranging from December 2020 through January 2026. These commercial mortgages are accounted for as loans held for sale.

(3) Does not include the maturity dates of three mezzanine loans that were 90 days or more past due which had contractual maturity date prior to December 31, 2015.

Delinquency Statistics of Commercial Real Estate Loan

The following table summarizes the delinquency statistics of our commercial real estate loans as of March 31, 2016 and December 31, 2015:

	As of March 31, 2016
Delinquency Status	Current		30 to 59 days		60 to 89 days		90 days or more		In foreclosure or bankruptcy proceedings (b)		Total		Non-accrual (a)
Commercial mortgages	$	1,346,260	$	74,800	$	—	$	—	$	—	$	1,421,060	$	15,645
Mezzanine loans		165,107		2,145		—		1,163		1,000		169,415		12,098
Preferred equity interests		24,237		—		—		—		—		24,237		7,946
Total	$	1,535,604	$	76,945	$	—	$	1,163	$	1,000	$	1,614,712	$	35,689

(1) Includes four loans that were current and two loans that were 30 days past due in accordance with their terms, however are on non-accrual due to uncertainty over full collection of principal and interest.

(2) These loans were on non-accrual due to uncertainty over full collection of principal and interest.

	As of December 31, 2015
Delinquency Status	Current		30 to 59 days		60 to 89 days		90 days or more		In foreclosure or bankruptcy proceedings (b)		Total		Non-Accrual (a)
Commercial mortgages	$	1,427,328	$	—	$	—	$	—	$	—	$	1,427,328	$	15,645
Mezzanine loans		167,145		—		—		1,163		1,248		169,556		12,346
Preferred equity interests		30,237		—		—		—		—		30,237		7,946
Total	$	1,624,710	$	—	$	—	$	1,163	$	1,248	$	1,627,121	$	35,937

(1) Includes six loans that were current in accordance with their terms, however are on non-accrual due to uncertainty over full collection of principal and interest.

(2) These loans were on non-accrual due to uncertainty over full collection of principal and interest.

Investment in Loans by Credit Risk Category

we have classified our investment in loans by credit risk category as follows:

	As of March 31, 2016
Credit Status	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Satisfactory	$	1,330,615	$	135,817	$	16,291	$	1,482,723
Watchlist / Impaired		90,445		33,598		7,946	$	131,989
Total	$	1,421,060	$	169,415	$	24,237	$	1,614,712

	As of December 31, 2015
Credit Status	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Satisfactory	$	1,336,883	$	135,710	$	22,291	$	1,494,884
Watchlist / Impaired		90,445		33,846		7,946		132,237
Total	$	1,427,328	$	169,556	$	30,237	$	1,627,121

Roll-Forwards of Allowance for Loan Losses for Commercial Mortgage Loans, Mezzanine Loans and Preferred Equity Interests

The following tables provide roll-forwards of our allowance for loan losses for our commercial mortgages, mezzanine loans and preferred equity interests for the three months ended March 31, 2016 and 2015:

	For the Three Months Ended March 31, 2016
	Commercial Mortgages		Mezzanine Loans			Preferred Equity		Total
Beginning balance	$	3,154	$	12,139		$	1,804	$	17,097
Provision for loan losses		174		158			993		1,325
Charge-offs, net of recoveries		—		(257	)		—	$	(257	)
Ending balance	$	3,328	$	12,040		$	2,797	$	18,165

	For the Three Months Ended March 31, 2015
	Commercial Mortgages		Mezzanine Loans			Preferred Equity		Total
Beginning balance	$	—	$	7,892		$	1,326	$	9,218
Provision for loan losses		—		2,000			—		2,000
Charge-offs, net of recoveries		—		(421	)		—		(421	)
Ending balance	$	—	$	9,471		$	1,326	$	10,797

Loans Considered to be Impaired

Information related to those loans on our watchlist or considered to be impaired was as follows:

	As of March 31, 2016
Watchlist/Impaired Loans	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Watchlist/Impaired loans expecting full recovery	$	74,800	$	3,000	$	—	$	77,800
Watchlist/Impaired loans with reserves		15,645		30,598		7,946		54,189
Total Watchlist/Impaired Loans (1)	$	90,445	$	33,598	$	7,946	$	131,989
Allowance for loan losses	$	3,328	$	12,040	$	2,797	$	18,165

(1) As of March 31, 2016, this includes no unpaid principal relating to previously identified TDRs that are on accrual status.

	As of December 31, 2015
Watchlist/Impaired Loans	Commercial Mortgages		Mezzanine Loans		Preferred Equity		Total
Watchlist/Impaired loans expecting full recovery	$	74,800	$	3,000	$	—	$	77,800
Watchlist/Impaired loans with reserves		15,645		30,846		7,946		54,437
Total Watchlist/Impaired Loans (1)	$	90,445	$	33,846	$	7,946	$	132,237
Allowance for loan losses	$	3,154	$	12,139	$	1,804	$	17,097

(1) As of December 31, 2015, this includes no unpaid principal relating to previously identified TDRs that are on accrual status.

XML

INVESTMENTS IN REAL ESTATE (Tables)

3 Months Ended

Mar. 31, 2016

Banking And Thrift [Abstract]

Summary of Investments in Real Estate

The table below summarizes our investments in real estate:

	Book Value
	As of March 31, 2016			As of December 31, 2015
Multi-family real estate properties (1)	$	1,820,062		$	1,842,704
Office real estate properties		387,537			395,224
Industrial real estate properties		94,938			94,938
Retail real estate properties		134,484			134,331
Parcels of land		50,613			50,448
Subtotal		2,487,634			2,517,645
Less: Accumulated depreciation and amortization (1)		(209,421	)		(198,326	)
Investments in real estate (2)	$	2,278,213		$	2,319,319

(1) As of March 31, 2016, includes properties owned by Independence Realty Trust, Inc., or IRT, with a book value of $1,357,338 and accumulated depreciation of $44,422. As of December 31, 2015, includes properties owned by IRT, with a book value of $1,372,015 and accumulated depreciation of $39,638.                                                                                                

(2) As of March 31, 2016, four of our multifamily real estate properties, two of IRT’s multifamily real estate properties and one parcel of land were considered held-for-sale.  The carrying amount of our multifamily properties was $36,301. The carrying amount of the IRT properties was $39,347.  The carrying amount of the parcel of land was $1,470.

Summary of Disposition and Each Property's Contribution

The below table summarizes these dispositions and also presents each property’s contribution to net income (loss) allocable to common shares, excluding the impact of the gain (loss) on sale:

					For the Three Months Ended March 31, 2016
Property Name	Property Type	Date of Sale	Sale Price		Gain (loss) on sale			Net income (loss) allocable to common shares
Cumberland Glen	IRT Multifamily	2/18/2016	$	18,000	$	2,453		$	52
Mineral/Lincoln	Office	3/25/2016		7,949		(374	)		5
Ventura	Multifamily	3/30/2016		8,750		120			37
Total			$	34,699	$	2,199		$	94

XML

INDEBTEDNESS (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Summary of Total Recourse and Non-Recourse Indebtedness

The following table summarizes our total recourse and non-recourse indebtedness as of March 31, 2016:

Description	Unpaid Principal Balance		Unamortized Discount and Debt Issuance Costs			Carrying Amount		Weighted- Average Interest Rate			Contractual Maturity
Recourse indebtedness:
7.0% convertible senior notes (1)	$	30,048	$	(1,044	)	$	29,004		7.0	%		Apr. 2031
4.0% convertible senior notes (2)		141,750		(7,987	)		133,763		4.0	%		Oct. 2033
7.625% senior notes		60,000		(1,986	)		58,014		7.6	%		Apr. 2024
7.125% senior notes		71,905		(2,009	)		69,896		7.1	%		Aug. 2019
Senior secured notes		68,000		(6,153	)		61,847		7.0	%		Apr. 2017 to Apr. 2019
Junior subordinated notes, at fair value (3)		18,671		(8,886	)		9,785		4.6	%		Mar. 2035
Junior subordinated notes, at amortized cost		25,100		(213	)		24,887		3.1	%		Apr. 2037
CMBS facilities		122,801		(531	)		122,270		2.5	%		Jul.2016 to Jan 2018
Total recourse indebtedness		538,275		(28,809	)		509,466		5.0	%
Non-recourse indebtedness:
Secured credit facilities (4)		324,977		(4,122	)		320,855		2.9	%		September 2018
Term Loans (5)		90,216		(939	)		89,277		5.4	%		September 2016
CDO notes payable, at amortized cost (6)(7)		917,725		(12,495	)		905,230		1.2	%		2045 to 2046
CMBS securitizations (8)		666,947		(6,808	)		660,139		2.6	%		May 2031 to Dec. 2031
Loans payable on real estate (9)		761,767		(4,099	)		757,668		4.4	%		June 2016 to Apr. 2026
Total non-recourse indebtedness		2,761,632		(28,463	)		2,733,169		2.8	%
Other indebtedness (10)		24,321		274			24,595		—				—
Total indebtedness	$	3,324,228	$	(56,998	)	$	3,267,230		3.1	%

(1) Our 7.0% convertible senior notes are redeemable at par, at the option of the holder, in April 2016, April 2021, and April 2026.

(2) Our 4.0% convertible senior notes are redeemable at par, at the option of the holder, in October 2018, October 2023, and October 2028.

(3) Relates to liabilities which we elected to record at fair value under FASB ASC Topic 825.

(4)      Floating rate at 245 basis points over 1-month LIBOR. As of March 31, 2016, 1-month LIBOR was 0.43725%. Interest only payments are due monthly.

(5) Floating rate at 500 basis points over 1-month LIBOR. As of March 31, 2016, 1-month LIBOR was 0.43725%. Interest only payments are due monthly.

(6) Excludes CDO notes payable purchased by us which are eliminated in consolidation

(7) Collateralized by $1,358,687 principal amount of commercial mortgages, mezzanine loans, other loans and preferred equity interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

(8) Excludes the RAIT FL2 junior notes, RAIT FL3 junior notes, RAIT FL4 junior notes and RAIT FL5 junior notes purchased by us which are eliminated in consolidation.  Collateralized by $855,555 principal amount of commercial mortgages loans and participation interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

(9) Includes $495,253 of unpaid principal balance and $492,129 of carrying amount, respectively, of third party mortgage indebtedness that encumbers properties owned by IRT. The weighted-average interest rate is 3.8% and has a range of maturity dates from January 2021 to May 2025.

(10) Represents a 40% interest issued to an unaffiliated third party in a venture to which we contributed the junior notes and equity of a floating rate securitization.  We retained a 60% interest in this venture, and, as a result of our controlling financial interest, we consolidated the venture.  We received $24,796 of proceeds as a result of issuing this 40% interest and incurred $201 of costs with third parties.  This 40% interest has no stated maturity date and does not provide for its mandatory redemption or any required return or interest payment.  The venture interests allocate the distributions on such junior notes and equity when made between the parties to the venture.       

The following table summarizes our total recourse and non-recourse indebtedness as of December 31, 2015:

Description	Unpaid Principal Balance		Unamortized Discount and Debt Issuance Costs			Carrying Amount		Weighted- Average Interest Rate			Contractual Maturity
Recourse indebtedness:
7.0% convertible senior notes (1)	$	30,048	$	(1,180	)	$	28,868		7.0	%	Apr. 2031
4.0% convertible senior notes (2)		141,750		(8,711	)		133,039		4.0	%	Oct. 2033
7.625% senior notes		60,000		(2,048	)		57,952		7.6	%	Apr. 2024
7.125% senior notes		71,905		(2,156	)		69,749		7.1	%	Aug. 2019
Senior secured notes		70,000		(6,955	)		63,045		7.0	%	Apr. 2017 to Apr. 2019
Junior subordinated notes, at fair value (3)		18,671		(8,167	)		10,504		4.3	%	Mar. 2035
Junior subordinated notes, at amortized cost		25,100		(216	)		24,884		2.7	%	Apr. 2037
CMBS facilities		97,067		(344	)		96,723		2.4	%	Jul. 2016 to Jan. 2018
Total recourse indebtedness		514,541		(29,777	)		484,764		5.1	%
Non-recourse indebtedness:
Secured credit facilities (4)		271,500		(4,345	)		267,155		2.9	%	Sep. 2018
Term Loans (5)		120,000		(1,582	)		118,418		5.4	%	Sept. 2016
CDO notes payable, at amortized cost (6)(7)		950,981		(13,412	)		937,569		0.9	%	Jun. 2045 to Nov. 2046
CMBS securitizations (8)		717,255		(8,745	)		708,510		2.4	%	May 2031 to Dec. 2031
Loans payable on real estate (9)		815,746		(4,080	)		811,666		4.5	%	Apr. 2016 to Apr. 2026
Total non-recourse indebtedness		2,875,482		(32,164	)		2,843,318		2.7	%
Total indebtedness	$	3,390,023	$	(61,941	)	$	3,328,082		3.0	%

(1) Our 7.0% convertible senior notes are redeemable at par, at the option of the holder, in April 2016, April 2021, and April 2026.

(2) Our 4.0% convertible senior notes are redeemable at par, at the option of the holder, in October 2018, October 2023, and October 2028.

(3) Relates to liabilities which we elected to record at fair value under FASB ASC Topic 825.

(4) Floating rate at 245 basis points over 1-month LIBOR. As of December 31, 2015, 1-month LIBOR was 0.4295%. Interest only payments are due monthly.

(5) Floating rate at 500 basis points over 1-month LIBOR. As of December 31, 2015, 1-month LIBOR was 0.4295%. Interest only payments are due monthly.

(6) Excludes CDO notes payable purchased by us which are eliminated in consolidation.

(7) Collateralized by $1,388,194 principal amount of commercial mortgages, mezzanine loans, other loans and preferred equity interests, $815,745 of which eliminates in consolidation. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

(8) Excludes the RAIT FL2 junior notes, RAIT FL3 junior notes, RAIT FL4 junior notes and RAIT FL5 junior notes purchased by us which are eliminated in consolidation. Collateralized by $885,055 principal amount of commercial mortgage loans and participation interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

(9) Includes $545,956 of unpaid principal balance and $543,080 of carrying amount of third party mortgage indebtedness that encumbers properties owned by IRT. The weighted-average interest rate is 3.8% and has a range of maturity dates from April 2016 to May 2025.

Aggregate Contractual Maturities of Indebtedness by Year

The following table displays the aggregate contractual maturities of our indebtedness on or before December 31 by year:

	Recourse indebtedness		Non-recourse indebtedness
2016	$	82,622	$	182,762
2017		34,000		18,470
2018		57,179		370,299
2019		88,905		5,347
2020		-		43,309
Thereafter (1)		275,569		2,141,445
Total	$	538,275	$	2,761,632

(1) Includes $30,048 of our 7.0% convertible senior notes which are redeemable at par at the option of the holder in April 2016, April 2021, and April 2026.  Includes $141,750 of our 4.0% convertible senior notes which are redeemable at par at the option of the holder in October 2018, October 2023, and October 2028.  

XML

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Aggregate Notional Amount and Estimated Net Fair Value of Derivative Instruments

The following table summarizes the aggregate notional amount and estimated net fair value of our derivative instruments as of March 31, 2016 and December 31, 2015:

	As of March 31, 2016							As of December 31, 2015
	Notional		Fair Value of Assets		Fair Value of Liabilities			Notional		Fair Value of Assets		Fair Value of Liabilities
Cash flow hedges:
Interest rate swaps	$	171,288	$	-	$	(2,401	)	$	243,816	$	—	$	(4,672	)
Interest rate cap		200,000		6		-			200,000		24		-
Other interest rate swaps		43,925		-		(1,780	)		37,325		182		(55	)
Net fair value	$	415,213	$	6	$	(4,181	)	$	481,141	$	206	$	(4,727	)

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Carrying Amount and Fair Value of Financial Instruments

The following table summarizes the carrying amount and the fair value of our financial instruments as of March 31, 2016:

Financial Instrument	Carrying Amount		Estimated Fair Value
Assets
Commercial mortgages, mezzanine loans, and preferred equity interests	$	1,594,467	$	1,538,346
Cash and cash equivalents		94,569		94,569
Restricted cash		200,166		200,166
Derivative assets		6		6
Liabilities
Recourse indebtedness:
7.0% convertible senior notes		29,004		25,541
4.0% convertible senior notes		133,763		113,754
7.625% senior notes		58,014		47,712
7.125% senior notes		69,896		65,807
Senior secured notes		61,847		66,521
Junior subordinated notes, at fair value		9,785		9,785
Junior subordinated notes, at amortized cost		24,887		10,236
CMBS facilities		122,270		122,801
Non-recourse indebtedness:
Secured credit facilities		320,855		324,977
Term loans		89,277		90,216
CDO notes payable, at amortized cost		905,230		741,480
CMBS securitizations		660,139		657,753
Loans payable on real estate		757,668		787,681
Other indebtedness		24,595		24,321
Derivative liabilities		4,181		4,181
Warrants and investor SARs		29,100		29,100

The following table summarizes the carrying amount and the fair value of our financial instruments as of December 31, 2015:

Financial Instrument	Carrying Amount		Estimated Fair Value
Assets
Commercial mortgages, mezzanine loans, and    preferred equity interests, net	$	1,606,486	$	1,537,086
Cash and cash equivalents		125,886		125,886
Restricted cash		213,012		213,012
Derivative assets		206		206
Liabilities
Recourse indebtedness:
7.0% convertible senior notes		28,868		27,795
4.0% convertible senior notes		133,039		104,184
7.625% senior notes		57,952		46,560
7.125% senior notes		69,749		62,471
Senior secured notes		63,045		66,725
Junior subordinated notes, at fair value		10,504		10,504
Junior subordinated notes, at amortized cost		24,884		11,221
CMBS facilities		96,723		97,067
Non-recourse indebtedness:
Secured credit facilities		267,155		271,500
Term loans		118,418		120,000
CDO notes payable, at amortized cost		937,569		801,289
CMBS securitizations		708,510		709,001
Loans payable on real estate		811,666		834,816
Derivative liabilities		4,727		4,727
Warrants and investor SARs		26,200		26,200

Information of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following tables summarize information about our assets and liabilities measured at fair value on a recurring basis as of March 31, 2016, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of March 31, 2016
Derivative assets	$	—	$	6	$	—	$	6
Total assets	$	—	$	6	$	—	$	6

Liabilities:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of March 31, 2016
Junior subordinated notes, at fair value	$	—	$	—	$	9,785	$	9,785
Derivative liabilities		—		4,181		—		4,181
Warrants and investor SARs		—		—		29,100		29,100
Total liabilities	$	—	$	4,181	$	38,885	$	43,066

(a) During the three months ended March 31, 2016, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

The following tables summarize information about our assets and liabilities measured at fair value on a recurring basis as of December 31, 2015, and indicate the fair value hierarchy of the valuation techniques utilized to determine such fair value:

Assets:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of December 31, 2015
Derivative assets	$	—	$	206	$	—	$	206
Total assets	$	—	$	206	$	—	$	206

Liabilities:	Quoted Prices in Active Markets for Identical Assets (Level 1) (a)		Significant Other Observable Inputs (Level 2) (a)		Significant Unobservable Inputs (Level 3) (a)		Balance as of December 31, 2015
Junior subordinated notes, at fair value	$	—	$	—	$	10,504	$	10,504
Derivative liabilities		—		4,727		—		4,727
Warrants and investor SARs		—		—		26,200		26,200
Total liabilities	$	—	$	4,727	$	36,704	$	41,431

(a) During the year ended December 31, 2015, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

Rollforward of Level 3 Liabilities

Liabilities	Warrants and investor SARS		Junior Subordinated Notes, at Fair Value			Total Level 3 Liabilities
Balance, as of December 31, 2015	$	26,200	$	10,504		$	36,704
Change in fair value of financial instruments		2,900		(719	)		2,181
Purchases		—		—			—
Principal Repayments		—		—			—
Balance, as of March 31, 2016	$	29,100	$	9,785		$	38,885

Fair Value Hierarchy for Financial Instruments Not Fair Valued but For Which Fair Value Is Required To Be Disclosed

The following tables summarize the valuation technique and the level of the fair value hierarchy for financial instruments that are not fair valued in the accompanying consolidated balance sheets but for which fair value is required to be disclosed. The fair value of cash and cash equivalents, restricted cash, secured credit facilities, CMBS facilities, commercial mortgage facilities and other indebtedness approximates cost due to the nature of these instruments and are not included in the tables below.

						Fair Value Measurement
	Carrying Amount as of March 31, 2016		Estimated Fair Value as of March 31, 2016		Valuation Technique	QuotedPrices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	$	1,594,467	$	1,538,346	Discountedcash flows	$	—	$	—	$	1,551,077
7.0% convertible senior notes		29,004		25,541	Trading price		25,506		—		—
4.0% convertible senior notes		133,763		113,754	Trading price		113,754		—
7.625% senior notes		58,014		47,712	Trading price		47,712		—		—
7.125% senior notes		69,896		65,807	Trading price		65,807		—
Senior secured notes		61,847		66,521	Discounted cash flows		—		—		66,521
Junior subordinated notes, at amortized cost		24,887		10,236	Discounted cash flows		—		—		10,236
CDO notes payable, at amortized cost		905,230		741,480	Discounted cash flows		—		—		741,480
CMBS securitizations		660,139		657,753	Discounted cash flows		—		—		657,753
Loans payable on real estate		757,668		787,681	Discounted cash flows		—		—		787,681

						Fair Value Measurement
	Carrying Amount as of December 31, 2015		Estimated Fair Value as of December 31, 2015		Valuation Technique	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	$	1,606,486	$	1,537,086	Discountedcash flows	$	—	$	—	$	1,537,086
7.0% convertible senior notes		28,868		27,795	Trading price		27,795		—		—
4.0% convertible senior notes		133,039		104,184	Trading price		104,184		—		—
7.625% senior notes		57,952		46,560	'Trading price		46,560		—		—
7.125% senior notes		69,749		62,471	Trading price		62,471		—		—
Senior secured notes		63,045		66,725	Discounted cash flows		—		—		66,725
Junior subordinated notes, at amortized cost		24,884		11,221	Discounted cash flows		—		—		11,221
CDO notes payable, at amortized cost		937,569		801,289	Discounted cash flows		—		—		801,289
CMBS securitization		708,510		709,001	Discounted cash flows		—		—		709,001
Loans payable on real estate		811,666		834,816	Discounted cash flows		—		—		834,816

Summary of Realized and Unrealized Gains and Losses on Assets and Liabilities

The following table summarizes realized and unrealized gains and losses on assets and liabilities for which we elected the fair value option of FASB ASC Topic 825, “Financial Instruments” and derivatives as reported in change in fair value of financial instruments in the accompanying consolidated statements of operations:

	For the Three Months Ended March 31,
Description	2016			2015
Change in fair value of trading securities and    security-related receivables	$	—		$	(171	)
Change in fair value of junior subordinated notes		719			(81	)
Change in fair value of derivatives		(1,907	)		(2,047	)
Change in fair value of warrants and investors SARs		(2,900	)		6,789
Change in fair value of financial instruments	$	(4,088	)	$	4,490

XML

VARIABLE INTEREST ENTITIES (Tables)

3 Months Ended

Mar. 31, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Assets and Liabilities of Consolidated Variable Interest Entities

The following table presents the assets and liabilities of our consolidated VIEs as of each respective date.

	As of March 31, 2016
	RAIT Securitizations			IRT			RAIT VIE Properties			RAIT Venture VIE		Total
Assets
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and    preferred equity interests	$	1,330,285		$	—		$	—		$	346,385	$	1,676,670
Allowance for losses		—			—			—			—		0
Total investments in mortgages and loans		1,330,285			—			—			346,385		1,676,670
Investments in real estate
Investments in real estate		—			1,357,338			279,008			—		1,636,346
Accumulated depreciation		—			(44,422	)		(28,874	)		—		(73,296	)
Total investments in real estate		—			1,312,916			250,134			—		1,563,050
Cash and cash equivalents		—			21,924			1,761			722		24,407
Restricted cash		11,295			7,015			3,290			3		21,603
Accrued interest receivable		76,722			—			—			1,555		78,277
Other assets		11,735			2,795			13,492			—		28,022
Intangible assets
Intangible assets		—			15,287			5,245			—		20,532
Accumulated amortization		—			(15,287	)		(2,196	)		—		(17,483	)
Total intangible assets		—			—			3,049			—		3,049
Total assets	$	1,430,037		$	1,344,650		$	271,726		$	348,665	$	3,395,078
Liabilities and Equity
Indebtedness	$	1,146,378		$	940,336		$	273,548		$	307,704	$	2,667,966
Accrued interest payable		456			1,175			15,935			613		18,179
Accounts payable and accrued expenses		2			16,089			5,676			—		21,767
Derivative liabilities		2,401			—			—			—		2,401
Deferred taxes, borrowers’ escrows and other liabilities		—			6,078			22,194			630		28,902
Total liabilities		1,149,237			963,678			317,353			308,947		2,739,215
Equity:
Shareholders’ equity:
Accumulated other comprehensive income (loss)		(2,409	)		(26	)		—			—		(2,435	)
RAIT investment		118,291			75,542			17,887			38,628		250,348
Retained earnings (deficit)		164,918			(23,090	)		(62,768	)		1,090		80,150
Total shareholders’ equity		280,800			52,426			(44,881	)		39,718		328,063
Noncontrolling Interests		—			328,546			(746	)		—		327,800
Total liabilities and equity	$	1,430,037		$	1,344,650		$	271,726		$	348,665	$	3,395,078

	As of December 31, 2015
	RAIT Securitizations			IRT			RAIT VIE Properties			Total
Assets
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and    preferred equity interests	$	1,358,497		$	—		$	—		$	1,358,497
Allowance for losses		—			—			—			—
Total investments in mortgages and loans		1,358,497			—			—			1,358,497
Investments in real estate
Investments in real estate		—			1,372,015			278,774			1,650,789
Accumulated depreciation		—			(39,638	)		(26,398	)		(66,036	)
Total investments in real estate		—			1,332,377			252,376			1,584,753
Cash and cash equivalents		—			38,301			1,589			39,890
Restricted cash		12,718			5,413			2,859			20,990
Accrued interest receivable		73,368			—			—			73,368
Other assets		11,539			3,362			13,740			28,641
Intangible assets
Intangible assets		—			15,287			5,245			20,532
Accumulated amortization		—			(11,551	)		(1,446	)		(12,997	)
Total intangible assets		—			3,736			3,799			7,535
Total assets	$	1,456,122		$	1,383,189		$	274,363		$	3,113,674
Liabilities and Equity
Indebtedness	$	1,178,794		$	966,611		$	273,766		$	2,419,171
Accrued interest payable		445			1,239			13,997			15,681
Accounts payable and accrued expenses		8			19,304			6,000			25,312
Derivative liabilities		4,672			—			—			4,672
Deferred taxes, borrowers’ escrows and other liabilities		—			6,004			22,214			28,218
Total liabilities		1,183,919			993,158			315,977			2,493,054
Equity:
Shareholders’ equity:
Accumulated other comprehensive income (loss)		(4,691	)		(8	)		—			(4,699	)
RAIT investment		115,810			68,273			17,420			201,503
Retained earnings (deficit)		161,084			(14,499	)		(59,454	)		87,131
Total shareholders’ equity		272,203			53,766			(42,034	)		283,935
Noncontrolling Interests		—			336,265			420			336,685
Total liabilities and equity	$	1,456,122		$	1,383,189		$	274,363		$	3,113,674

XML

SERIES D PREFERRED SHARES (Tables)

3 Months Ended

Mar. 31, 2016

Text Block [Abstract]

Sales Activity of Series D Preferred Shares

The following table summarizes the sales activity of the Series D Preferred Shares from the effective date of the agreement through March 31, 2016:

Aggregate purchase price			$	100,000
Initial value of warrants and investor SARs issued to-date	(21,805	)
Costs incurred	(6,834	)
Total discount				(28,639	)
Discount amortization to-date				15,724
Carrying amount of Series D Preferred Shares			$	87,085

XML

SHAREHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Dividends Declared and Paid on Preferred Shares

The following table summarizes the dividends we declared and paid on the preferred shares for the three months ended March 31, 2016

	March 31, 2016
Series A Preferred Shares
Date declared	2/16/2016
Record date	3/1/2016
Date paid	3/31/2016
Total dividend amount	$	2,570
Series B Preferred Shares
Date declared	2/16/2016
Record date	3/1/2016
Date paid	3/31/2016
Total dividend amount	$	1,225
Series C Preferred Shares
Date declared	2/16/2016
Record date	3/1/2016
Date paid	3/31/2016
Total dividend amount	$	910
Series D Preferred Shares
Date declared	2/16/2016
Record date	3/1/2016
Date paid	3/31/2016
Total dividend amount	$	2,125

XML

EARNINGS (LOSS) PER SHARE (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Basic and Diluted Earnings (Loss) per Share

The following table presents a reconciliation of basic and diluted earnings (loss) per share for the three months ended March 31, 2016 and 2015:

	For the Three Months Ended March 31,
	2016			2015
Net income (loss)	$	(10,503	)	$	266
(Income) loss allocated to preferred shares		(8,520	)		(7,859	)
(Income) loss allocated to noncontrolling interests		1,179			496
Net income (loss) allocable to common shares	$	(17,844	)	$	(7,097	)
Weighted-average shares outstanding—Basic		91,018,160			82,081,024
Dilutive securities		—			—
Weighted-average shares outstanding—Diluted		91,018,160			82,081,024
Earnings (loss) per share—Basic:
Earnings (loss) per share—Basic	$	(0.20	)	$	(0.09	)
Earnings (loss) per share—Diluted:
Earnings (loss) per share—Diluted	$	(0.20	)	$	(0.09	)

XML

SUPPLEMENTAL DISCLOSURE TO STATEMENT OF CASH FLOWS (Tables)

3 Months Ended

Mar. 31, 2016

Supplemental Cash Flow Elements [Abstract]

Schedule of Supplemental Disclosures to Statements of Cash Flows

The following are supplemental disclosures to the statements of cash flows for the three months ended March 31, 2016 and 2015:

	For the Three Months Ended March 31,
	2016			2015
Cash paid for interest	$	22,766		$	13,933
Cash paid for taxes		120			57
Non-cash decrease in investments in real estate, intangible assets and other liabilities from conversion of loans		(1,499	)		—

XML

SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting

	Real Estate Lending Owning and Management			IRT			Eliminations (a)			Consolidated
Three-Month Period Ended March 31, 2016:
Net interest margin	$	18,171		$	-		$	(265	)	$	17,906
Property income		30,056			38,666			—			68,722
Fee and other income		9,725			—			(6,873	)		2,852
Provision for losses		1,325			—			—			1,325
Depreciation and amortization expense		12,749			11,527			—			24,276
Operating income		(3,650	)		(2,590	)		—			(6,240	)
Change in fair value of financial instruments		(4,088	)		—			—			(4,088	)
Income tax benefit (provision)		993			—			—			993
Net income (loss)		(9,148	)		(46	)		(1,309	)		(10,503	)
Three-Month Period Ended March 31, 2015:
Net interest margin	$	16,572		$	-		$	(238	)	$	16,334
Property income		31,617			21,657			—			53,274
Fee and other income		9,790			—			(4,196	)		5,594
Provision for losses		2,000			—			—			2,000
Depreciation and amortization expense		12,986			6,038			—			19,024
Operating income		(3,004	)		(242	)		(1	)		(3,247	)
Change in fair value of financial instruments		4,490			—			—			4,490
Income tax benefit (provision)		(582	)		—			—			(582	)
Net income (loss)		1,817			(241	)		(1,310	)		266

(a) The transactions that occur between the reportable segments include advisory and property management services, as well as, providing commercial mortgages on our owned real estate.

XML

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Significant Accounting Policies [Line Items]
Reclassification from property income to real estate operating expenses		$ 695,000
Real estate operating expense	$ 30,706,000	25,277,000
Depreciation and amortization expense	24,276,000	19,024,000
Federal deposit insurance corporation, insurance limit per institution	250,000
Restricted cash	200,166,000		$ 213,012,000
Accrued interest receivable	49,987,000		47,343,000
Earned asset management fees	402,000	315,000
Investment in securities	0		0
Investments in securities sold during the period		31,412,000
Intangible assets, accumulated amortization	32,228,000		26,307,000
Intangible assets, amortization expenses	5,920,000	3,931,000
Expected amortization expense of intangible assets, remainder of 2016	5,141,000
Expected amortization expense of intangible assets in 2017	4,861,000
Expected amortization expense of intangible assets in 2018	3,662,000
Expected amortization expense of intangible assets in 2019	3,209,000
Expected amortization expense of intangible assets in 2020	2,764,000
Expected amortization expense of intangible assets thereafter	7,062,000
Goodwill	8,854,000		8,854,000
Deferred Costs, Net			31,368,000
Deferred financing costs, accumulated amortization			33,769,000
Customer relationships
Significant Accounting Policies [Line Items]
Intangible assets, gross carrying amount	19,149,000		19,149,000
In-place leases
Significant Accounting Policies [Line Items]
Intangible assets, gross carrying amount	38,277,000		38,333,000
Trade name
Significant Accounting Policies [Line Items]
Intangible assets, gross carrying amount	1,500,000		1,500,000
IRT
Significant Accounting Policies [Line Items]
Earned asset management fees	1,631,000	1,001,000
Incentive fees	65,000	211,000
Property management and leasing fees	1,262,000	755,000
Loans and Finance Receivables
Significant Accounting Policies [Line Items]
Accrued interest receivable	35,977,000		34,132,000
Impairment of loans	$ 0		0
Building and Building Improvements | Minimum
Significant Accounting Policies [Line Items]
Property, useful lives	30 years
Building and Building Improvements | Maximum
Significant Accounting Policies [Line Items]
Property, useful lives	40 years
Furniture, fixtures, and equipment | Minimum
Significant Accounting Policies [Line Items]
Property, useful lives	5 years
Furniture, fixtures, and equipment | Maximum
Significant Accounting Policies [Line Items]
Property, useful lives	10 years
Tenant escrows and borrowers' funds
Significant Accounting Policies [Line Items]
Restricted cash	$ 158,177,000		165,866,000
Securitizations
Significant Accounting Policies [Line Items]
Restricted cash	$ 41,989,000		$ 47,146,000
Cash and Cash Equivalents
Significant Accounting Policies [Line Items]
Increase (decrease) in cash flows activities		0
Cash Flows from Operating Activities
Significant Accounting Policies [Line Items]
Increase (decrease) in cash flows activities		(18,194,000)
Cash Flows from Investing Activities
Significant Accounting Policies [Line Items]
Increase (decrease) in cash flows activities		18,194,000
Scenario, Adjustment
Significant Accounting Policies [Line Items]
Real estate operating expense		702,000
Depreciation and amortization expense		$ 7,000

XML

Investments in Loans (Detail) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016 USD ($) Loan		Dec. 31, 2015 USD ($) Loan
Mortgage Loans On Real Estate [Line Items]
Unpaid Principal Balance	$ 1,614,712		$ 1,627,121
Total investment in loans, Unamortized (Discounts) Premiums	$ (1,220)		(1,268)
Number of Loans | Loan	1
Deferred fees	$ (860)		(2,270)
Total investments in loans, Unpaid Principal Balance	1,613,852		1,624,851
Commercial mortgages, mezzanine loans and other loans, Carrying Amount	1,612,632		1,623,583
CRE Loans
Mortgage Loans On Real Estate [Line Items]
Unpaid Principal Balance	1,614,712		1,627,121
Total investment in loans, Unamortized (Discounts) Premiums	(1,220)		(1,268)
Carrying Amount	$ 1,613,492		$ 1,625,853
Number of Loans | Loan	181		188
Weighted-Average Coupon	6.00%	[1]	6.10%	[2]
Commercial mortgages
Mortgage Loans On Real Estate [Line Items]
Unpaid Principal Balance	$ 1,421,060	[3]	$ 1,427,328	[4]
Total investment in loans, Unamortized (Discounts) Premiums	(1,001)	[3]	(1,049)	[4]
Carrying Amount	$ 1,420,059	[3]	$ 1,426,279	[4]
Number of Loans | Loan	121	[3]	124	[4]
Weighted-Average Coupon	5.60%	[1],[3]	5.20%	[2],[4]
Range of Maturity Dates, Minimum	Apr. 01, 2016	[3],[5]	Mar. 01, 2016	[4],[6]
Range of Maturity Dates, Maximum	Jan. 01, 2029	[3],[5]	Jan. 01, 2029	[4],[6]
Mezzanine Loans
Mortgage Loans On Real Estate [Line Items]
Unpaid Principal Balance	$ 169,415		$ 169,556
Total investment in loans, Unamortized (Discounts) Premiums	(218)		(218)
Carrying Amount	$ 169,197		$ 169,338
Number of Loans | Loan	54		57
Weighted-Average Coupon	9.80%	[1]	10.00%	[2]
Range of Maturity Dates, Minimum	May 01, 2016	[5]	Jan. 01, 2016	[6]
Range of Maturity Dates, Maximum	May 01, 2025	[5]	May 01, 2025	[6]
Preferred Equity Interests
Mortgage Loans On Real Estate [Line Items]
Unpaid Principal Balance	$ 24,237		$ 30,237
Total investment in loans, Unamortized (Discounts) Premiums	(1)		(1)
Carrying Amount	$ 24,236		$ 30,236
Number of Loans | Loan	6		7
Weighted-Average Coupon	5.90%	[1]	6.90%	[2]
Range of Maturity Dates, Minimum	Sep. 01, 2016	[5]	Feb. 01, 2016	[6]
Range of Maturity Dates, Maximum	Aug. 01, 2025	[5]	Aug. 01, 2025	[6]

[1] Weighted-average coupon is calculated on the unpaid principal balance, which does not necessarily correspond to the carrying amount.

[2] Weighted-average coupon is calculated on the unpaid principal balance, which does not necessarily correspond to the carrying amount.

[3] Commercial mortgages includes seven conduit loans with an unpaid principal balance and carrying amount of $57,928, a weighted-average coupon of 4.9% and maturity dates ranging from December 2020 through February 2026. These commercial mortgages are accounted for as loans held for sale.

[4] Commercial mortgages includes six conduit loans with an unpaid principal balance and carrying amount of $49,239, a weighted-average coupon of 4.8% and maturity dates ranging from December 2020 through January 2026. These commercial mortgages are accounted for as loans held for sale.

[5] Does not include the maturity dates of five mezzanine loans all of which had maturity dates prior to March 31, 2016 and have been identified as impaired. Three of these loans are 90 days or more past due, one of these loans is 30 to 59 days past due and one of these loans is in the process of being restructured.

[6] Does not include the maturity dates of three mezzanine loans that were 90 days or more past due which had contractual maturity date prior to December 31, 2015.

XML

Investments in Loans (Parenthetical) (Detail) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016 USD ($) Loan		Dec. 31, 2015 USD ($) Loan
Mortgage Loans On Real Estate [Line Items]
Number of Loans	1
Unpaid Principal Balance | $	$ 1,614,712		$ 1,627,121
Mezzanine Loans
Mortgage Loans On Real Estate [Line Items]
Number of Loans	54		57
Unpaid Principal Balance | $	$ 169,415		$ 169,556
Weighted-Average Coupon	9.80%	[1]	10.00%	[2]
Mezzanine Loans | Impaired Loans
Mortgage Loans On Real Estate [Line Items]
Number of Loans	5
Mezzanine Loans | 90 days or more
Mortgage Loans On Real Estate [Line Items]
Number of Loans	3		3
Mezzanine Loans | 30 to 59 days
Mortgage Loans On Real Estate [Line Items]
Number of Loans	1
Mezzanine Loans | Loans to be Restructured
Mortgage Loans On Real Estate [Line Items]
Number of Loans	1
Conduit Loans
Mortgage Loans On Real Estate [Line Items]
Number of Loans	7		6
Unpaid Principal Balance | $	$ 57,928		$ 49,239
Weighted-Average Coupon	4.90%		4.80%

[1] Weighted-average coupon is calculated on the unpaid principal balance, which does not necessarily correspond to the carrying amount.

[2] Weighted-average coupon is calculated on the unpaid principal balance, which does not necessarily correspond to the carrying amount.

XML

Delinquency Statistics of Commercial Real Estate Loan (Detail) - USD ($) $ in Thousands		Mar. 31, 2016		Dec. 31, 2015
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		$ 1,614,712		$ 1,627,121
Current
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		1,535,604		1,624,710
30 to 59 days
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		76,945
90 days or more
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		1,163		1,163
In foreclosure or bankruptcy proceedings
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total	[1]	1,000		1,248
Non-Accrual
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		35,689	[2]	35,937	[3]
Commercial mortgages
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		1,421,060		1,427,328
Commercial mortgages | Current
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		1,346,260		1,427,328
Commercial mortgages | 30 to 59 days
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		74,800
Commercial mortgages | Non-Accrual
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		15,645	[2]	15,645	[3]
Mezzanine Loans
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		169,415		169,556
Mezzanine Loans | Current
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		165,107		167,145
Mezzanine Loans | 30 to 59 days
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		2,145
Mezzanine Loans | 90 days or more
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		1,163		1,163
Mezzanine Loans | In foreclosure or bankruptcy proceedings
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total	[1]	1,000		1,248
Mezzanine Loans | Non-Accrual
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		12,098	[2]	12,346	[3]
Preferred Equity Interests
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		24,237		30,237
Preferred Equity Interests | Current
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		24,237		30,237
Preferred Equity Interests | Non-Accrual
Mortgage Loans On Real Estate [Line Items]
Delinquency statistics, Total		$ 7,946	[2]	$ 7,946	[3]

[1] These loans were on non-accrual due to uncertainty over full collection of principal and interest.

[2] Includes four loans that were current and two loans that were 30 days past due in accordance with their terms, however are on non-accrual due to uncertainty over full collection of principal and interest.

[3] Includes six loans that were current in accordance with their terms, however are on non-accrual due to uncertainty over full collection of principal and interest.

XML

Investments in Loans - Additional Information (Detail) $ in Thousands	3 Months Ended			12 Months Ended
	Mar. 31, 2016 USD ($) Loan		Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($) Loan
Accounts Notes And Loans Receivable [Line Items]
Number of Loans | Loan	1
Commercial real estate loans on non-accrual status	$ 1,614,712			$ 1,627,121
Average impaired loans unpaid balance	132,113		$ 80,903
Interest income from impaired loans	1,262		$ 582
Transfer of commercial real estate loan to real estate owned	$ 0
Commercial mortgages
Accounts Notes And Loans Receivable [Line Items]
Number of Loans | Loan	121	[1]		124	[2]
Commercial real estate loans on non-accrual status	$ 1,421,060	[1]		$ 1,427,328	[2]
Commercial real estate loans on non-accrual status	1,420,059	[1]		1,426,279	[2]
Watchlist
Accounts Notes And Loans Receivable [Line Items]
Commercial real estate loans on non-accrual status	131,989			132,237
Unpaid principal balance constituted a TDR	54,189			54,437
Watchlist | Commercial mortgages
Accounts Notes And Loans Receivable [Line Items]
Commercial real estate loans on non-accrual status	90,445			90,445
Unpaid principal balance constituted a TDR	$ 15,645			$ 15,645
Commercial Portfolio Segment
Accounts Notes And Loans Receivable [Line Items]
Modification troubled debt restructuring, subsequently defaulted, number of loans | Loan	0
Modification troubled debt restructuring, number of loans | Loan	0
Commercial Portfolio Segment | Minimum
Accounts Notes And Loans Receivable [Line Items]
Loan maturity	90 days			90 days
Commercial Portfolio Segment | 90 days or more
Accounts Notes And Loans Receivable [Line Items]
Commercial real estate loans on non-accrual status	$ 35,689			$ 35,937
Weighted-average interest rate	4.60%			4.60%
Commercial Portfolio Segment | Recognizing interest on the cash basis
Accounts Notes And Loans Receivable [Line Items]
Weighted-average interest rate	12.90%			11.60%
Number of Loans | Loan	3			2
Commercial real estate loans on non-accrual status	$ 25,871			$ 13,002
Commercial Portfolio Segment | Troubled Debt Restructured Loans
Accounts Notes And Loans Receivable [Line Items]
Number of Loans | Loan	1			1
Commercial real estate loans on non-accrual status	$ 18,500			$ 18,500

[1] Commercial mortgages includes seven conduit loans with an unpaid principal balance and carrying amount of $57,928, a weighted-average coupon of 4.9% and maturity dates ranging from December 2020 through February 2026. These commercial mortgages are accounted for as loans held for sale.

[2] Commercial mortgages includes six conduit loans with an unpaid principal balance and carrying amount of $49,239, a weighted-average coupon of 4.8% and maturity dates ranging from December 2020 through January 2026. These commercial mortgages are accounted for as loans held for sale.

XML

Investment in Loans by Credit Risk Category (Detail) - USD ($) $ in Thousands	Mar. 31, 2016		Dec. 31, 2015
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	$ 1,614,712		$ 1,627,121
Commercial mortgages
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	1,421,060	[1]	1,427,328	[2]
Mezzanine Loans
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	169,415		169,556
Preferred Equity Interests
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	24,237		30,237
Satisfactory
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	1,482,723		1,494,884
Satisfactory | Commercial mortgages
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	1,330,615		1,336,883
Satisfactory | Mezzanine Loans
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	135,817		135,710
Satisfactory | Preferred Equity Interests
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	16,291		22,291
Watchlist
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	131,989		132,237
Watchlist | Commercial mortgages
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	90,445		90,445
Watchlist | Mezzanine Loans
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	33,598		33,846
Watchlist | Preferred Equity Interests
Financing Receivable Recorded Investment [Line Items]
Unpaid Principal Balance	$ 7,946		$ 7,946

[1] Commercial mortgages includes seven conduit loans with an unpaid principal balance and carrying amount of $57,928, a weighted-average coupon of 4.9% and maturity dates ranging from December 2020 through February 2026. These commercial mortgages are accounted for as loans held for sale.

[2] Commercial mortgages includes six conduit loans with an unpaid principal balance and carrying amount of $49,239, a weighted-average coupon of 4.8% and maturity dates ranging from December 2020 through January 2026. These commercial mortgages are accounted for as loans held for sale.

XML

Roll-Forwards of Allowance for Loan Losses for Commercial Mortgage Loans, Mezzanine Loans and Preferred Equity Interests (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Mortgage Loans On Real Estate [Line Items]
Beginning balance	$ 17,097	$ 9,218
Provision for loan losses	1,325	2,000
Charge-offs, net of recoveries	(257)	(421)
Ending balance	18,165	10,797
Commercial mortgages
Mortgage Loans On Real Estate [Line Items]
Beginning balance	3,154
Provision for loan losses	174
Ending balance	3,328
Mezzanine Loans
Mortgage Loans On Real Estate [Line Items]
Beginning balance	12,139	7,892
Provision for loan losses	158	2,000
Charge-offs, net of recoveries	(257)	(421)
Ending balance	12,040	9,471
Preferred Equity Interests
Mortgage Loans On Real Estate [Line Items]
Beginning balance	1,804	1,326
Provision for loan losses	993
Ending balance	$ 2,797	$ 1,326

XML

Loans on Watchlist or Considered to be Impaired (Detail) - USD ($) $ in Thousands	Mar. 31, 2016		Dec. 31, 2015		Mar. 31, 2015	Dec. 31, 2014
Financing Receivable Impaired [Line Items]
Allowance for loan losses	$ 18,165		$ 17,097		$ 10,797	$ 9,218
Commercial mortgages
Financing Receivable Impaired [Line Items]
Allowance for loan losses	3,328		3,154
Mezzanine Loans
Financing Receivable Impaired [Line Items]
Allowance for loan losses	12,040		12,139		9,471	7,892
Preferred Equity Interests
Financing Receivable Impaired [Line Items]
Allowance for loan losses	2,797		1,804		$ 1,326	$ 1,326
Watchlist
Financing Receivable Impaired [Line Items]
Watchlist/Impaired loans expecting full recovery	77,800		77,800
Watchlist/Impaired loans with reserves	54,189		54,437
Total Watchlist/Impaired Loans	131,989	[1]	132,237	[2]
Watchlist | Commercial mortgages
Financing Receivable Impaired [Line Items]
Watchlist/Impaired loans expecting full recovery	74,800		74,800
Watchlist/Impaired loans with reserves	15,645		15,645
Total Watchlist/Impaired Loans	90,445	[1]	90,445	[2]
Watchlist | Mezzanine Loans
Financing Receivable Impaired [Line Items]
Watchlist/Impaired loans expecting full recovery	3,000		3,000
Watchlist/Impaired loans with reserves	30,598		30,846
Total Watchlist/Impaired Loans	33,598	[1]	33,846	[2]
Watchlist | Preferred Equity Interests
Financing Receivable Impaired [Line Items]
Watchlist/Impaired loans with reserves	7,946		7,946
Total Watchlist/Impaired Loans	$ 7,946	[1]	$ 7,946	[2]

[1] As of March 31, 2016, this includes no unpaid principal relating to previously identified TDRs that are on accrual status.

[2] As of December 31, 2015, this includes no unpaid principal relating to previously identified TDRs that are on accrual status.

XML

Loans on Watchlist or Considered to be Impaired (Parenthetical) (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Unpaid principal relating to previously identified TDRs that are on accrual status	$ 0	$ 0

XML

Summary of Investments in Real Estate (Detail) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Real Estate Properties [Line Items]
Investments in real estate, Book Value		$ 2,487,634	$ 2,517,645
Less: Accumulated depreciation and amortization	[1]	(209,421)	(198,326)
Investments in real estate, net, Book Value	[2]	2,278,213	2,319,319
Multifamily
Real Estate Properties [Line Items]
Investments in real estate, Book Value	[1]	1,820,062	1,842,704
Office real estate properties
Real Estate Properties [Line Items]
Investments in real estate, Book Value		387,537	395,224
Industrial real estate properties
Real Estate Properties [Line Items]
Investments in real estate, Book Value		94,938	94,938
Retail real estate properties
Real Estate Properties [Line Items]
Investments in real estate, Book Value		134,484	134,331
Parcels of land
Real Estate Properties [Line Items]
Investments in real estate, Book Value		$ 50,613	$ 50,448

[1] As of March 31, 2016, includes properties owned by Independence Realty Trust, Inc., or IRT, with a book value of $1,357,338 and accumulated depreciation of $44,422. As of December 31, 2015, includes properties owned by IRT, with a book value of $1,372,015 and accumulated depreciation of $39,638.

[2] As of March 31, 2016, four of our multifamily real estate properties, two of IRT’s multifamily real estate properties and one parcel of land were considered held-for-sale. The carrying amount of our multifamily properties was $36,301. The carrying amount of the IRT properties was $39,347. The carrying amount of the parcel of land was $1,470.

XML

Summary of Investments in Real Estate (Parenthetical) (Detail) $ in Thousands		Mar. 31, 2016 USD ($) Property Land	Dec. 31, 2015 USD ($)
Real Estate Properties [Line Items]
Investments in real estate, Book Value		$ 2,487,634	$ 2,517,645
Accumulated depreciation and amortization	[1]	209,421	198,326
Multifamily
Real Estate Properties [Line Items]
Investments in real estate, Book Value	[1]	$ 1,820,062	1,842,704
Number of real estate properties held for sale | Property		4
Carrying value of asset held for sale		$ 36,301
Parcels of land
Real Estate Properties [Line Items]
Investments in real estate, Book Value		$ 50,613	50,448
Number of real estate properties held for sale | Land		1
Carrying value of asset held for sale		$ 1,470
IRT
Real Estate Properties [Line Items]
Investments in real estate, Book Value		1,357,338	1,372,015
Accumulated depreciation and amortization		$ 44,422	$ 39,638
IRT | Multifamily
Real Estate Properties [Line Items]
Number of real estate properties held for sale | Property		2
Carrying value of asset held for sale		$ 39,347

[1] As of March 31, 2016, includes properties owned by Independence Realty Trust, Inc., or IRT, with a book value of $1,357,338 and accumulated depreciation of $44,422. As of December 31, 2015, includes properties owned by IRT, with a book value of $1,372,015 and accumulated depreciation of $39,638.

XML

Investments in Real Estate - Additional Information (Detail) $ in Thousands			1 Months Ended	3 Months Ended
		May. 10, 2016 USD ($) Property	Apr. 30, 2016 USD ($) Property	Mar. 31, 2016 USD ($) Property	Dec. 31, 2015 USD ($)
Real Estate Properties [Line Items]
Investments in real estate, net, Book Value	[1]			$ 2,278,213	$ 2,319,319
Mortgages or other debt held by third parties				761,767	815,745
Mortgages held by consolidated securitizations				916,763	889,786
Fair value of net assets acquired				$ 437
Number of industrial properties acquired | Property				10
Increase in fair value of net assets acquired				$ 1,499
Increase in investments of real estate				3,351
Decrease in intangible assets				57
Increase in intangible liabilities				1,795
Business acquisitions purchase price allocation subsequent adjustments				11
Impairment of real estate asset				$ 3,922
Multifamily
Real Estate Properties [Line Items]
Number of real estate properties disposed | Property				1
Office real estate properties
Real Estate Properties [Line Items]
Number of real estate properties disposed | Property				1
Parcels of land | Subsequent Event
Real Estate Properties [Line Items]
Number of real estate properties disposed | Property			1
Real estate property for sale price			$ 1,500
IRT
Real Estate Properties [Line Items]
Fair value of net assets acquired				$ 91
Number of real estate properties disposed | Property				1
IRT | Multifamily | Subsequent Event
Real Estate Properties [Line Items]
Number of real estate properties disposed | Property		1	1
Real estate property for sale price		$ 47,000	$ 23,000
Land
Real Estate Properties [Line Items]
Investments in real estate, net, Book Value				$ 408,755	415,707
Building and Building Improvements
Real Estate Properties [Line Items]
Investments in real estate, net, Book Value				$ 2,078,878	$ 2,101,938

[1] As of March 31, 2016, four of our multifamily real estate properties, two of IRT’s multifamily real estate properties and one parcel of land were considered held-for-sale. The carrying amount of our multifamily properties was $36,301. The carrying amount of the IRT properties was $39,347. The carrying amount of the parcel of land was $1,470.

XML

Summary of Disposition and Each Property's Contribution (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Real Estate Properties [Line Items]
Net income (loss) allocable to common shares	$ (17,844)	$ (7,097)
Disposal Group Held For Sale Or Disposed Of By Sale Not Discontinued Operations
Real Estate Properties [Line Items]
Sale Price	34,699
Gain (loss) on sale	2,199
Net income (loss) allocable to common shares	$ 94
Disposal Group Held For Sale Or Disposed Of By Sale Not Discontinued Operations | Multi family | Ventura
Real Estate Properties [Line Items]
Date of Sale	Mar. 30, 2016
Sale Price	$ 8,750
Gain (loss) on sale	120
Net income (loss) allocable to common shares	$ 37
Disposal Group Held For Sale Or Disposed Of By Sale Not Discontinued Operations | Office | Mineral Or Lincoln
Real Estate Properties [Line Items]
Date of Sale	Mar. 25, 2016
Sale Price	$ 7,949
Gain (loss) on sale	(374)
Net income (loss) allocable to common shares	$ 5
Disposal Group Held For Sale Or Disposed Of By Sale Not Discontinued Operations | IRT | Multi family | Cumberland Glen
Real Estate Properties [Line Items]
Date of Sale	Feb. 18, 2016
Sale Price	$ 18,000
Gain (loss) on sale	2,453
Net income (loss) allocable to common shares	$ 52

XML

Summary of Total Recourse and Non-Recourse Indebtedness (Detail) - USD ($) $ in Thousands		3 Months Ended		12 Months Ended
		Mar. 31, 2016		Dec. 31, 2015
Debt Instrument [Line Items]
Unpaid Principal Balance		$ 3,324,228		$ 3,390,023
Unamortized Discount and Debt Issuance Costs		(56,998)		(61,941)
Indebtedness		$ 3,267,230		$ 3,328,082
Weighted-Average Interest Rate		3.10%		3.00%
Recourse Indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		$ 538,275		$ 514,541
Unamortized Discount and Debt Issuance Costs		(28,809)		(29,777)
Indebtedness		$ 509,466		$ 484,764
Weighted-Average Interest Rate		5.00%		5.10%
Non-recourse indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		$ 2,761,632		$ 2,875,482
Unamortized Discount and Debt Issuance Costs		(28,463)		(32,164)
Indebtedness		$ 2,733,169		$ 2,843,318
Weighted-Average Interest Rate		2.80%		2.70%
7.0% convertible senior notes | Recourse Indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance	[1]	$ 30,048		$ 30,048
Unamortized Discount and Debt Issuance Costs	[1]	(1,044)		(1,180)
Indebtedness	[1]	$ 29,004		$ 28,868
Weighted-Average Interest Rate	[1]	7.00%		7.00%
Contractual Maturity, month and year	[1]	2031-04		2031-04
4.0% convertible senior notes | Recourse Indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance	[2]	$ 141,750		$ 141,750
Unamortized Discount and Debt Issuance Costs	[2]	(7,987)		(8,711)
Indebtedness	[2]	$ 133,763		$ 133,039
Weighted-Average Interest Rate	[2]	4.00%		4.00%
Contractual Maturity, month and year	[2]	2033-10		2033-10
7.625% senior notes due 2024 | Recourse Indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		$ 60,000		$ 60,000
Unamortized Discount and Debt Issuance Costs		(1,986)		(2,048)
Indebtedness		$ 58,014		$ 57,952
Weighted-Average Interest Rate		7.60%		7.60%
Contractual Maturity, month and year		2024-04		2024-04
7.125% Senior Notes due 2019 | Recourse Indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		$ 71,905		$ 71,905
Unamortized Discount and Debt Issuance Costs		(2,009)		(2,156)
Indebtedness		$ 69,896		$ 69,749
Weighted-Average Interest Rate		7.10%		7.10%
Contractual Maturity, month and year		2019-08		2019-08
Senior Secured Notes | Recourse Indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		$ 68,000		$ 70,000
Unamortized Discount and Debt Issuance Costs		(6,153)		(6,955)
Indebtedness		$ 61,847		$ 63,045
Weighted-Average Interest Rate		7.00%		7.00%
Senior Secured Notes | Minimum | Recourse Indebtedness
Debt Instrument [Line Items]
Contractual Maturity, month and year		2017-04		2017-04
Senior Secured Notes | Maximum | Recourse Indebtedness
Debt Instrument [Line Items]
Contractual Maturity, month and year		2019-04		2019-04
Junior Subordinated Notes, at Fair Value | Recourse Indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance	[3]	$ 18,671		$ 18,671
Unamortized Discount and Debt Issuance Costs	[3]	(8,886)		(8,167)
Indebtedness	[3]	$ 9,785		$ 10,504
Weighted-Average Interest Rate	[3]	4.60%		4.30%
Contractual Maturity, month and year	[3]	2035-03		2035-03
Junior subordinated notes, at amortized cost | Recourse Indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		$ 25,100		$ 25,100
Unamortized Discount and Debt Issuance Costs		(213)		(216)
Indebtedness		$ 24,887		$ 24,884
Weighted-Average Interest Rate		3.10%		2.70%
Contractual Maturity, month and year		2037-04		2037-04
CMBS Facilities
Debt Instrument [Line Items]
Indebtedness		$ 1,358,687		$ 1,388,194
CMBS Facilities | Recourse Indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		122,801		97,067
Unamortized Discount and Debt Issuance Costs		(531)		(344)
Indebtedness		$ 122,270		$ 96,723
Weighted-Average Interest Rate		2.50%		2.40%
CMBS Facilities | Minimum | Recourse Indebtedness
Debt Instrument [Line Items]
Contractual Maturity, month and year		2016-07		2016-07
CMBS Facilities | Maximum | Recourse Indebtedness
Debt Instrument [Line Items]
Contractual Maturity, month and year		2018-01		2018-01
Secured credit facilities | Non-recourse indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		$ 324,977	[4]	$ 271,500	[5]
Unamortized Discount and Debt Issuance Costs		(4,122)	[4]	(4,345)	[5]
Indebtedness		$ 320,855	[4]	$ 267,155	[5]
Weighted-Average Interest Rate		2.90%	[4]	2.90%	[5]
Contractual Maturity, month and year		2018-09	[4]	2018-09	[5]
Term Loans | Non-recourse indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		$ 90,216	[6]	$ 120,000	[7]
Unamortized Discount and Debt Issuance Costs		(939)	[6]	(1,582)	[7]
Indebtedness		$ 89,277	[6]	$ 118,418	[7]
Weighted-Average Interest Rate		5.40%	[6]	5.40%	[7]
Contractual Maturity, month and year		2016-09	[6]	2016-09	[7]
CDO notes payable, at amortized cost | Non-recourse indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		$ 917,725	[8],[9]	$ 950,981	[10],[11]
Unamortized Discount and Debt Issuance Costs		(12,495)	[8],[9]	(13,412)	[10],[11]
Indebtedness		$ 905,230	[8],[9]	$ 937,569	[10],[11]
Weighted-Average Interest Rate		1.20%	[8],[9]	0.90%	[10],[11]
CDO notes payable, at amortized cost | Minimum | Non-recourse indebtedness
Debt Instrument [Line Items]
Contractual Maturity, month and year	[10],[11]			2045-06
Contractual Maturity, year	[8],[9]	2045
CDO notes payable, at amortized cost | Maximum | Non-recourse indebtedness
Debt Instrument [Line Items]
Contractual Maturity, month and year	[10],[11]			2046-11
Contractual Maturity, year	[8],[9]	2046
Loans payable on real estate | Non-recourse indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		$ 761,767	[12]	$ 815,746	[13]
Unamortized Discount and Debt Issuance Costs		(4,099)	[12]	(4,080)	[13]
Indebtedness		$ 757,668	[12]	$ 811,666	[13]
Weighted-Average Interest Rate		4.40%	[12]	4.50%	[13]
Loans payable on real estate | Minimum | Non-recourse indebtedness
Debt Instrument [Line Items]
Contractual Maturity, month and year		2016-06	[12]	2016-04	[13]
Loans payable on real estate | Maximum | Non-recourse indebtedness
Debt Instrument [Line Items]
Contractual Maturity, month and year		2026-04	[12]	2026-04	[13]
Other indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance	[14]	$ 24,321
Unamortized Discount and Debt Issuance Costs	[14]	274
Indebtedness	[14]	24,595
CMBS securitizations
Debt Instrument [Line Items]
Indebtedness		855,555		$ 885,055
CMBS securitizations | Non-recourse indebtedness
Debt Instrument [Line Items]
Unpaid Principal Balance		666,947	[15]	717,255	[16]
Unamortized Discount and Debt Issuance Costs		(6,808)	[15]	(8,745)	[16]
Indebtedness		$ 660,139	[15]	$ 708,510	[16]
Weighted-Average Interest Rate		2.60%	[15]	2.40%	[16]
CMBS securitizations | Minimum | Non-recourse indebtedness
Debt Instrument [Line Items]
Contractual Maturity, month and year		2031-05	[15]	2031-05	[16]
CMBS securitizations | Maximum | Non-recourse indebtedness
Debt Instrument [Line Items]
Contractual Maturity, month and year		2031-12	[15]	2031-12	[16]

[1] Our 7.0% convertible senior notes are redeemable at par, at the option of the holder, in April 2016, April 2021, and April 2026.

[2] Our 4.0% convertible senior notes are redeemable at par, at the option of the holder, in October 2018, October 2023, and October 2028.

[3] Relates to liabilities which we elected to record at fair value under FASB ASC Topic 825.

[4] Floating rate at 245 basis points over 1-month LIBOR. As of March 31, 2016, 1-month LIBOR was 0.43725%. Interest only payments are due monthly.

[5] Floating rate at 245 basis points over 1-month LIBOR. As of December 31, 2015, 1-month LIBOR was 0.4295%. Interest only payments are due monthly.

[6] Floating rate at 500 basis points over 1-month LIBOR. As of March 31, 2016, 1-month LIBOR was 0.43725%. Interest only payments are due monthly.

[7] Floating rate at 500 basis points over 1-month LIBOR. As of December 31, 2015, 1-month LIBOR was 0.4295%. Interest only payments are due monthly.

[8] Collateralized by $1,358,687 principal amount of commercial mortgages, mezzanine loans, other loans and preferred equity interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

[9] Excludes CDO notes payable purchased by us which are eliminated in consolidation

[10] Collateralized by $1,388,194 principal amount of commercial mortgages, mezzanine loans, other loans and preferred equity interests, $815,745 of which eliminates in consolidation. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

[11] Excludes CDO notes payable purchased by us which are eliminated in consolidation.

[12] Includes $495,253 of unpaid principal balance and $492,129 of carrying amount, respectively, of third party mortgage indebtedness that encumbers properties owned by IRT. The weighted-average interest rate is 3.8% and has a range of maturity dates from January 2021 to May 2025.

[13] Includes $545,956 of unpaid principal balance and $543,080 of carrying amount of third party mortgage indebtedness that encumbers properties owned by IRT. The weighted-average interest rate is 3.8% and has a range of maturity dates from April 2016 to May 2025.

[14] Represents a 40% interest issued to an unaffiliated third party in a venture to which we contributed the junior notes and equity of a floating rate securitization. We retained a 60% interest in this venture, and, as a result of our controlling financial interest, we consolidated the venture. We received $24,796 of proceeds as a result of issuing this 40% interest and incurred $201 of costs with third parties. This 40% interest has no stated maturity date and does not provide for its mandatory redemption or any required return or interest payment. The venture interests allocate the distributions on such junior notes and equity when made between the parties to the venture.

[15] Excludes the RAIT FL2 junior notes, RAIT FL3 junior notes, RAIT FL4 junior notes and RAIT FL5 junior notes purchased by us which are eliminated in consolidation. Collateralized by $855,555 principal amount of commercial mortgages loans and participation interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

[16] Excludes the RAIT FL2 junior notes, RAIT FL3 junior notes, RAIT FL4 junior notes and RAIT FL5 junior notes purchased by us which are eliminated in consolidation. Collateralized by $885,055 principal amount of commercial mortgage loans and participation interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

XML

Summary of Total Recourse and Non-Recourse Indebtedness (Parenthetical) (Detail) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Mar. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Indebtedness		$ 3,267,230	$ 3,328,082
Unpaid Principal Balance		$ 3,324,228	$ 3,390,023
Weighted-Average Interest Rate		3.10%	3.00%
Proceeds from issuance of joint venture interests accounted for as indebtedness		$ 24,796
Consolidation Eliminations
Debt Instrument [Line Items]
Indebtedness			$ 815,745
IRT
Debt Instrument [Line Items]
Indebtedness		492,129	543,080
Unpaid Principal Balance		$ 495,253	$ 545,956
Weighted-Average Interest Rate		3.80%	3.80%
Minimum | IRT
Debt Instrument [Line Items]
Contractual Maturity, month and year		2021-01	2016-04
Maximum | IRT
Debt Instrument [Line Items]
Contractual Maturity, month and year		2025-05	2025-05
CMBS securitizations
Debt Instrument [Line Items]
Indebtedness		$ 855,555	$ 885,055
7.0% convertible senior notes
Debt Instrument [Line Items]
Stated interest rate		7.00%	7.00%
4.0% convertible senior notes
Debt Instrument [Line Items]
Stated interest rate		4.00%	4.00%
Secured credit facilities | London Interest Bank Offer Rate
Debt Instrument [Line Items]
Stated interest rate		0.43725%	0.4295%
Interest rate at LIBOR plus basis rate		2.45%	2.45%
Debt instrument, description of variable rate basis		1-month LIBOR
CMBS Facilities
Debt Instrument [Line Items]
Indebtedness		$ 1,358,687	$ 1,388,194
Term Loans | London Interest Bank Offer Rate
Debt Instrument [Line Items]
Stated interest rate		0.43725%	0.4295%
Interest rate at LIBOR plus basis rate		5.00%	5.00%
Debt instrument, description of variable rate basis		1-month LIBOR
Other indebtedness
Debt Instrument [Line Items]
Indebtedness	[1]	$ 24,595
Unpaid Principal Balance	[1]	$ 24,321
Percentage of interest issued to unaffiliated third party		40.00%
Proceeds from issuance of joint venture interests accounted for as indebtedness		$ 24,796
Payment of debt issuance costs		$ 201
Interest owned in joint venture		60.00%

[1] Represents a 40% interest issued to an unaffiliated third party in a venture to which we contributed the junior notes and equity of a floating rate securitization. We retained a 60% interest in this venture, and, as a result of our controlling financial interest, we consolidated the venture. We received $24,796 of proceeds as a result of issuing this 40% interest and incurred $201 of costs with third parties. This 40% interest has no stated maturity date and does not provide for its mandatory redemption or any required return or interest payment. The venture interests allocate the distributions on such junior notes and equity when made between the parties to the venture.

XML

Indebtedness - Additional Information (Detail)				1 Months Ended		3 Months Ended			12 Months Ended
		May. 10, 2016 USD ($)	Sep. 17, 2015 USD ($) Option	Apr. 30, 2016 USD ($)	Feb. 29, 2016 USD ($)	Mar. 31, 2016 USD ($) $ / shares		Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)		Apr. 01, 2016 USD ($)
Debt Instrument [Line Items]
Payment of notes						$ 74,266,000		$ 19,629,000
Indebtedness						3,267,230,000			$ 3,328,082,000
Unpaid Principal Balance						3,324,228,000			3,390,023,000
R A I T F L Five
Debt Instrument [Line Items]
Percentage of ownership in joint venture					60.00%
Proceeds from contribution of junior notes					$ 24,800,000
Equity interest | R A I T F L Two
Debt Instrument [Line Items]
Real estate investment						40,188,000
Equity interest | R A I T F L Three
Debt Instrument [Line Items]
Real estate investment						37,386,000
Junior Notes | R A I T F L Four
Debt Instrument [Line Items]
Real estate investment						41,390,000
CMBS securitizations
Debt Instrument [Line Items]
Indebtedness						855,555,000			$ 885,055,000
CMBS securitizations | R A I T F L Two
Debt Instrument [Line Items]
Real estate investment						134,725,000
CMBS securitizations | R A I T F L Three
Debt Instrument [Line Items]
Real estate investment						168,278,000
CMBS securitizations | R A I T F L Four
Debt Instrument [Line Items]
Real estate investment						219,284,000
CMBS securitizations | R A I T F L Five
Debt Instrument [Line Items]
Real estate investment						$ 347,446,000
7.0% convertible senior notes
Debt Instrument [Line Items]
Stated interest rate						7.00%			7.00%
4.0% convertible senior notes
Debt Instrument [Line Items]
Stated interest rate						4.00%			4.00%
Secured credit facilities | London Interest Bank Offer Rate
Debt Instrument [Line Items]
Stated interest rate						0.43725%			0.4295%
Interest rate on excess of reference rate						2.45%			2.45%
Term Loan One | Subsequent Event
Debt Instrument [Line Items]
Line of credit facility, repayments		$ 18,400,000
Recourse Indebtedness
Debt Instrument [Line Items]
Indebtedness						$ 509,466,000			$ 484,764,000
Unpaid Principal Balance						538,275,000			$ 514,541,000
Recourse Indebtedness | Floating Rate Loans
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity						100,000,000
Recourse Indebtedness | Seventy Five Thousand CMF [Member] | CMBS securitizations
Debt Instrument [Line Items]
Indebtedness						40,179,000
Line of credit facility, borrowing capacity						$ 75,000,000
Debt instrument, financial covenant compliance						As of March 31, 2016, we were in compliance with all financial covenants contained in the $75,000 commercial mortgage facility.
Recourse Indebtedness | One Hundred Fifty Thousand CMF One [Member] | CMBS securitizations
Debt Instrument [Line Items]
Indebtedness						$ 26,131,000
Line of credit facility, borrowing capacity						$ 150,000,000
Debt instrument, financial covenant compliance						As of March 31, 2016, we were in compliance with all financial covenants contained in the $150,000 commercial mortgage facility.
Recourse Indebtedness | One Hundred Fifty Thousand CMF Two [Member] | CMBS securitizations
Debt Instrument [Line Items]
Indebtedness						$ 15,520,000
Line of credit facility, borrowing capacity						$ 150,000,000
Debt instrument, financial covenant compliance						As of March 31, 2016, we were in compliance with all financial covenants contained in the $150,000 commercial mortgage facility.
Recourse Indebtedness | 7.0% convertible senior notes
Debt Instrument [Line Items]
Stated interest rate						7.00%			7.00%
Convertible note conversion rate						179.4009
Principal amount of convertible note, conversion rate						$ 1,000
Initial conversion price | $ / shares						$ 5.57
Aggregate principal amount of notes issued									$ 30,048,000
Indebtedness	[1]					$ 29,004,000			28,868,000
Unpaid Principal Balance	[1]					$ 30,048,000			$ 30,048,000
Recourse Indebtedness | 7.0% convertible senior notes | Subsequent Event
Debt Instrument [Line Items]
Debt instrument redemption amount											$ 29,177,000
Convertible notes outstanding											$ 871,000
Recourse Indebtedness | 4.0% convertible senior notes
Debt Instrument [Line Items]
Stated interest rate									4.00%
Convertible note conversion rate						1.085803
Principal amount of convertible note, conversion rate						$ 1,000
Initial conversion price | $ / shares						$ 9.21
Aggregate principal amount of notes issued									$ 141,750,000
Indebtedness	[2]					$ 133,763,000			133,039,000
Unpaid Principal Balance	[2]					141,750,000			141,750,000
Recourse Indebtedness | Senior Secured Notes
Debt Instrument [Line Items]
Payment of notes						2,000,000
Senior notes, outstanding						68,000,000
Indebtedness						61,847,000			63,045,000
Unpaid Principal Balance						68,000,000			70,000,000
Recourse Indebtedness | Junior subordinated notes, at fair value
Debt Instrument [Line Items]
Aggregate principal amount of notes issued						18,671,000
Fair value of indebtedness						9,785,000
Recourse Indebtedness | Two Year CMBS Facilities
Debt Instrument [Line Items]
Indebtedness						$ 5,475,000
Debt instrument, financial covenant compliance						As of March 31, 2016, we were in compliance with all financial covenants contained in the Amended MRA.
Recourse Indebtedness | Amended Master Repurchase Agreement
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity						$ 200,000,000
Recourse Indebtedness | One Year CMBS Facilities | CMBS securitizations
Debt Instrument [Line Items]
Indebtedness						35,496,000
Line of credit facility, borrowing capacity						$ 150,000,000
Debt instrument, financial covenant compliance						As of March 31, 2016, we were in compliance with all financial covenants contained in the $150,000 CMBS facility.
Non-recourse indebtedness
Debt Instrument [Line Items]
Indebtedness						$ 2,733,169,000			2,843,318,000
Line of credit facility, borrowing capacity			$ 325,000,000
Right to increase line of credit facility maximum borrowing capacity			$ 450,000,000
Maturity date			Sep. 17, 2018
Line of credit facility, expiration period extension term						option of IROP may be extended for two additional 12-month periods under certain circumstances
Line of credit facility, number of options available for extension | Option			2
Unpaid Principal Balance						$ 2,761,632,000			2,875,482,000
Non-recourse indebtedness | R A I T F L Two
Debt Instrument [Line Items]
Real estate investment						94,537,000
Non-recourse indebtedness | R A I T F L Three
Debt Instrument [Line Items]
Real estate investment						130,892,000
Non-recourse indebtedness | R A I T F L Four
Debt Instrument [Line Items]
Real estate investment						177,894,000
Non-recourse indebtedness | R A I T F L Five
Debt Instrument [Line Items]
Real estate investment						$ 263,624,000
Non-recourse indebtedness | London Interest Bank Offer Rate
Debt Instrument [Line Items]
Interest rate on excess of reference rate						2.45%
Non-recourse indebtedness | CMBS securitizations
Debt Instrument [Line Items]
Indebtedness						$ 660,139,000	[3]		708,510,000	[4]
Unpaid Principal Balance						666,947,000	[3]		717,255,000	[4]
Non-recourse indebtedness | Secured credit facilities
Debt Instrument [Line Items]
Indebtedness						320,855,000	[5]		267,155,000	[6]
Line of credit facility, remaining borrowing capacity						23,000
Unpaid Principal Balance						$ 324,977,000	[5]		271,500,000	[6]
Non-recourse indebtedness | Term Loan One
Debt Instrument [Line Items]
Line of credit facility, borrowing capacity			$ 120,000,000
Maturity date			Sep. 16, 2016
Line of credit facility, expiration period extension term						The KeyBank interim facility may be extended at the option of IROP for an additional six months under certain circumstances
Line of credit facility, payment terms						The KeyBank interim facility requires monthly payments of interest only. IROP must apply 100% of all net proceeds from equity issuances, sales of assets, or refinancings of assets towards repaying the KeyBank interim facility.
Required percentage of proceeds from equity issuances, sales of assets, or refinancing of assets to use for repayment of debt			100.00%
Non-recourse indebtedness | Term Loan One | London Interest Bank Offer Rate
Debt Instrument [Line Items]
Interest rate on excess of reference rate						5.00%
Non-recourse indebtedness | Term Loan One | Subsequent Event
Debt Instrument [Line Items]
Line of credit facility, repayments				$ 11,600,000
Non-recourse indebtedness | Loans payable on real estate
Debt Instrument [Line Items]
Indebtedness						$ 757,668,000	[7]		811,666,000	[8]
Unpaid Principal Balance						761,767,000	[7]		$ 815,746,000	[8]
Investment Grade Senior Notes | R A I T F L Five
Debt Instrument [Line Items]
Real estate investment						$ 23,019,000
Investment Grade Senior Notes | Subsequent Event | R A I T F L Five
Debt Instrument [Line Items]
Real estate investment				$ 23,019,000

[1] Our 7.0% convertible senior notes are redeemable at par, at the option of the holder, in April 2016, April 2021, and April 2026.

[2] Our 4.0% convertible senior notes are redeemable at par, at the option of the holder, in October 2018, October 2023, and October 2028.

[3] Excludes the RAIT FL2 junior notes, RAIT FL3 junior notes, RAIT FL4 junior notes and RAIT FL5 junior notes purchased by us which are eliminated in consolidation. Collateralized by $855,555 principal amount of commercial mortgages loans and participation interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

[4] Excludes the RAIT FL2 junior notes, RAIT FL3 junior notes, RAIT FL4 junior notes and RAIT FL5 junior notes purchased by us which are eliminated in consolidation. Collateralized by $885,055 principal amount of commercial mortgage loans and participation interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

[5] Floating rate at 245 basis points over 1-month LIBOR. As of March 31, 2016, 1-month LIBOR was 0.43725%. Interest only payments are due monthly.

[6] Floating rate at 245 basis points over 1-month LIBOR. As of December 31, 2015, 1-month LIBOR was 0.4295%. Interest only payments are due monthly.

[7] Includes $495,253 of unpaid principal balance and $492,129 of carrying amount, respectively, of third party mortgage indebtedness that encumbers properties owned by IRT. The weighted-average interest rate is 3.8% and has a range of maturity dates from January 2021 to May 2025.

[8] Includes $545,956 of unpaid principal balance and $543,080 of carrying amount of third party mortgage indebtedness that encumbers properties owned by IRT. The weighted-average interest rate is 3.8% and has a range of maturity dates from April 2016 to May 2025.

XML

Aggregate Contractual Maturities of Indebtedness by Year (Detail) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015
Extinguishment Of Debt [Line Items]
Total		$ 3,324,228	$ 3,390,023
Recourse Indebtedness
Extinguishment Of Debt [Line Items]
2016		82,622
2017		34,000
2018		57,179
2019		88,905
Thereafter	[1]	275,569
Total		538,275	514,541
Non-recourse indebtedness
Extinguishment Of Debt [Line Items]
2016		182,762
2017		18,470
2018		370,299
2019		5,347
2020		43,309
Thereafter	[1]	2,141,445
Total		$ 2,761,632	$ 2,875,482

[1] Includes $30,048 of our 7.0% convertible senior notes which are redeemable at par at the option of the holder in April 2016, April 2021, and April 2026. Includes $141,750 of our 4.0% convertible senior notes which are redeemable at par at the option of the holder in October 2018, October 2023, and October 2028.

XML

Aggregate Contractual Maturities of Indebtedness by Year (Parenthetical) (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
7.0% convertible senior notes
Extinguishment Of Debt [Line Items]
Convertible senior notes interest rate	7.00%	7.00%
7.0% convertible senior notes | Recourse Indebtedness
Extinguishment Of Debt [Line Items]
Aggregate principal amount of notes issued		$ 30,048
Convertible senior notes interest rate	7.00%	7.00%
4.0% convertible senior notes
Extinguishment Of Debt [Line Items]
Convertible senior notes interest rate	4.00%	4.00%
4.0% convertible senior notes | Recourse Indebtedness
Extinguishment Of Debt [Line Items]
Aggregate principal amount of notes issued		$ 141,750
Convertible senior notes interest rate		4.00%

XML

Aggregate Notional Amount and Estimated Net Fair Value of Derivative Instruments (Detail) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Derivative [Line Items]
Notional amount	$ 415,213,000	$ 481,141,000
Fair Value of Assets	6,000	206,000
Fair Value of Liabilities	(4,181,000)	(4,727,000)
Interest rate swaps
Derivative [Line Items]
Notional amount	171,288,000	243,816,000
Fair Value of Liabilities	(2,401,000)	(4,672,000)
Interest rate cap
Derivative [Line Items]
Notional amount	200,000,000	200,000,000
Fair Value of Assets	6,000	24,000
Other interest rate swaps
Derivative [Line Items]
Notional amount	43,925,000	37,325,000
Fair Value of Assets		182,000
Fair Value of Liabilities	$ (1,780,000)	$ (55,000)

XML

Derivative Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Derivative [Line Items]
Notional amount	$ 415,213,000		$ 481,141,000
Realized losses	2,403,000	$ 4,967,000
Interest rate swaps
Derivative [Line Items]
Notional amount	$ 171,288,000		$ 243,816,000
RAIT I and RAIT II | Interest rate swaps
Derivative [Line Items]
Derivative, inception date	Apr. 01, 2016
Derivative, maturity date	Sep. 30, 2016
Notional amount	$ 171,288
Weighted average strike rate	4.80%

XML

Carrying Amount and Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2016		Dec. 31, 2015		Mar. 31, 2015	Dec. 31, 2014
Assets
Commercial mortgages, mezzanine loans, and preferred equity interests	$ 1,612,632		$ 1,623,583
Cash and cash equivalents	94,569		125,886		$ 92,657	$ 121,726
Restricted cash	200,166		213,012
Derivative assets	6		206
Liabilities
Indebtedness	3,267,230		3,328,082
Derivative liabilities	4,181		4,727
Junior subordinated notes	9,785		10,504
Warrants and investor SARs	29,100		26,200
Recourse Indebtedness
Liabilities
Indebtedness	509,466		484,764
Non-recourse indebtedness
Liabilities
Indebtedness	2,733,169		2,843,318
CMBS securitizations
Liabilities
Indebtedness	855,555		885,055
CMBS securitizations | Non-recourse indebtedness
Liabilities
Indebtedness	660,139	[1]	708,510	[2]
Carrying Amount
Assets
Commercial mortgages, mezzanine loans, and preferred equity interests	1,594,467		1,606,486
Cash and cash equivalents	94,569		125,886
Restricted cash	200,166		213,012
Derivative assets	6		206
Liabilities
Indebtedness			63,045
Carrying Amount | 7.0% convertible senior notes
Liabilities
Indebtedness	29,004		28,868
Carrying Amount | 4.0% convertible senior notes
Liabilities
Indebtedness	133,763		133,039
Carrying Amount | 7.625% senior notes due 2024
Liabilities
Indebtedness	58,014		57,952
Carrying Amount | 7.125% Senior Notes due 2019
Liabilities
Indebtedness	69,896		69,749
Carrying Amount | Senior Secured Notes
Liabilities
Indebtedness	61,847		63,045
Carrying Amount | Junior subordinated notes, at amortized cost
Liabilities
Indebtedness	24,887		24,884
Carrying Amount | CDO notes payable, at amortized cost
Liabilities
Indebtedness	905,230		937,569
Carrying Amount | Loans payable on real estate
Liabilities
Indebtedness	757,668		811,666
Carrying Amount | Derivative Liabilities
Liabilities
Derivative liabilities	4,181		4,727
Carrying Amount | Warrants and investor SARs
Liabilities
Warrants and investor SARs	29,100		26,200
Carrying Amount | Recourse Indebtedness | 7.0% convertible senior notes
Liabilities
Indebtedness	29,004		28,868
Carrying Amount | Recourse Indebtedness | 4.0% convertible senior notes
Liabilities
Indebtedness	133,763		133,039
Carrying Amount | Recourse Indebtedness | 7.625% senior notes due 2024
Liabilities
Indebtedness	58,014		57,952
Carrying Amount | Recourse Indebtedness | 7.125% Senior Notes due 2019
Liabilities
Indebtedness	69,896		69,749
Carrying Amount | Recourse Indebtedness | Senior Secured Notes
Liabilities
Indebtedness	61,847
Carrying Amount | Recourse Indebtedness | Junior subordinated notes, at amortized cost
Liabilities
Indebtedness	24,887		24,884
Carrying Amount | Recourse Indebtedness | CMBS Facilities
Liabilities
Indebtedness	122,270		96,723
Carrying Amount | Non-recourse indebtedness | Term Loans
Liabilities
Indebtedness	89,277		118,418
Carrying Amount | Non-recourse indebtedness | CDO notes payable, at amortized cost
Liabilities
Indebtedness	905,230		937,569
Carrying Amount | Non-recourse indebtedness | Loans payable on real estate
Liabilities
Indebtedness	757,668		811,666
Carrying Amount | Other indebtedness
Liabilities
Indebtedness	24,595
Carrying Amount | CMBS securitizations
Liabilities
Indebtedness	660,139		708,510
Carrying Amount | CMBS securitizations | Non-recourse indebtedness
Liabilities
Indebtedness	660,139		708,510
Estimated Fair Value
Assets
Commercial mortgages, mezzanine loans, other loans and	1,538,346		1,537,086
Cash and cash equivalents	94,569		125,886
Restricted cash	200,166		213,012
Derivative assets	6		206
Estimated Fair Value | 7.0% convertible senior notes
Liabilities
Convertible senior notes, Estimated Fair Value	25,541		27,795
Estimated Fair Value | 4.0% convertible senior notes
Liabilities
Convertible senior notes, Estimated Fair Value	113,754		104,184
Estimated Fair Value | 7.625% senior notes due 2024
Liabilities
Senior notes, Estimated Fair Value	47,712		46,560
Estimated Fair Value | 7.125% Senior Notes due 2019
Liabilities
Senior notes, Estimated Fair Value	65,807		62,471
Estimated Fair Value | Senior Secured Notes
Liabilities
Senior notes, Estimated Fair Value	66,521		66,725
Estimated Fair Value | Junior subordinated notes, at amortized cost
Liabilities
Junior subordinated notes	10,236		11,221
Estimated Fair Value | CDO notes payable, at amortized cost
Liabilities
Notes payable, Estimated Fair Value	741,480		801,289
Estimated Fair Value | Loans payable on real estate
Liabilities
Loans payable on real estate, Estimated Fair Value	787,681		834,816
Estimated Fair Value | Derivative Liabilities
Liabilities
Derivative liabilities	4,181		4,727
Estimated Fair Value | Warrants and investor SARs
Liabilities
Warrants and investor SARs	29,100		26,200
Estimated Fair Value | Recourse Indebtedness | 7.0% convertible senior notes
Liabilities
Convertible senior notes, Estimated Fair Value	25,541		27,795
Estimated Fair Value | Recourse Indebtedness | 4.0% convertible senior notes
Liabilities
Convertible senior notes, Estimated Fair Value	113,754		104,184
Estimated Fair Value | Recourse Indebtedness | 7.625% senior notes due 2024
Liabilities
Senior notes, Estimated Fair Value	47,712		46,560
Estimated Fair Value | Recourse Indebtedness | 7.125% Senior Notes due 2019
Liabilities
Senior notes, Estimated Fair Value	65,807		62,471
Estimated Fair Value | Recourse Indebtedness | Senior Secured Notes
Liabilities
Senior notes, Estimated Fair Value	66,521		66,725
Estimated Fair Value | Recourse Indebtedness | Junior subordinated notes, at amortized cost
Liabilities
Junior subordinated notes	10,236		11,221
Estimated Fair Value | Recourse Indebtedness | CMBS Facilities
Liabilities
Indebtedness	122,801		97,067
Estimated Fair Value | Non-recourse indebtedness | Term Loans
Liabilities
Indebtedness	90,216		120,000
Estimated Fair Value | Non-recourse indebtedness | CDO notes payable, at amortized cost
Liabilities
Notes payable, Estimated Fair Value	741,480		801,289
Estimated Fair Value | Non-recourse indebtedness | Loans payable on real estate
Liabilities
Loans payable on real estate, Estimated Fair Value	787,681		834,816
Estimated Fair Value | Other indebtedness
Liabilities
Indebtedness	24,321
Estimated Fair Value | CMBS securitizations
Liabilities
Notes payable, Estimated Fair Value	657,753		709,001
Estimated Fair Value | CMBS securitizations | Non-recourse indebtedness
Liabilities
Notes payable, Estimated Fair Value	657,753		709,001
Junior subordinated notes, at fair value | Carrying Amount | Recourse Indebtedness
Liabilities
Indebtedness	9,785		10,504
Junior subordinated notes, at fair value | Estimated Fair Value | Recourse Indebtedness
Liabilities
Junior subordinated notes	9,785		10,504
Secured credit facilities | Non-recourse indebtedness
Liabilities
Indebtedness	320,855	[3]	267,155	[4]
Secured credit facilities | Carrying Amount | Non-recourse indebtedness
Liabilities
Indebtedness	320,855		267,155
Secured credit facilities | Estimated Fair Value | Non-recourse indebtedness
Liabilities
Indebtedness			$ 271,500
Secured credit facilities, Estimated Fair Value	$ 324,977

[1] Excludes the RAIT FL2 junior notes, RAIT FL3 junior notes, RAIT FL4 junior notes and RAIT FL5 junior notes purchased by us which are eliminated in consolidation. Collateralized by $855,555 principal amount of commercial mortgages loans and participation interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

[2] Excludes the RAIT FL2 junior notes, RAIT FL3 junior notes, RAIT FL4 junior notes and RAIT FL5 junior notes purchased by us which are eliminated in consolidation. Collateralized by $885,055 principal amount of commercial mortgage loans and participation interests. These obligations were issued by separate legal entities and consequently the assets of the special purpose entities that collateralize these obligations are not available to our creditors.

[3] Floating rate at 245 basis points over 1-month LIBOR. As of March 31, 2016, 1-month LIBOR was 0.43725%. Interest only payments are due monthly.

[4] Floating rate at 245 basis points over 1-month LIBOR. As of December 31, 2015, 1-month LIBOR was 0.4295%. Interest only payments are due monthly.

XML

Information of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2016		Dec. 31, 2015
Assets:
Derivative assets	$ 6		$ 206
Total assets	6		206
Liabilities:
Junior subordinated notes, at fair value	9,785		10,504
Derivative liabilities	4,181		4,727
Warrants and investor SARs	29,100		26,200
Total liabilities	43,066		41,431
Significant Other Observable Inputs (Level 2)
Assets:
Derivative assets	6	[1]	206	[2]
Total assets	6	[1]	206	[2]
Liabilities:
Derivative liabilities	4,181	[1]	4,727	[2]
Total liabilities	4,181	[1]	4,727	[2]
Significant Unobservable Inputs (Level 3)
Liabilities:
Junior subordinated notes, at fair value	9,785	[1]	10,504	[2]
Warrants and investor SARs	29,100	[1]	26,200	[2]
Total liabilities	$ 38,885	[1]	$ 36,704	[2]

[1] During the three months ended March 31, 2016, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

[2] During the year ended December 31, 2015, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

XML

Information of Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair value, assets, Level 1 to Level 2 transfers, amount	$ 0	$ 0
Fair value, liabilities, Level 1 to Level 2 transfers, amount	0	0
Fair value, assets and liabilities, Level 3 into and out transfers, amount	$ 0	$ 0

XML

Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016		Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets Fair Value Disclosure	$ 6		$ 206
Significant Unobservable Inputs (Level 3)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Volatility rate	61.00%		61.00%
Credit adjusted discount rate	11.50%		12.00%
Dividend rate	10.00%		10.60%
Significant Unobservable Inputs (Level 3) | Minimum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Discount rate	13.00%		12.90%
Significant Unobservable Inputs (Level 3) | Maximum
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Discount rate	13.40%		13.30%
Significant Other Observable Inputs (Level 2)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets Fair Value Disclosure	$ 6	[1]	$ 206	[2]
Significant Other Observable Inputs (Level 2) | Non-Recurring Fair Value Measurements
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets Fair Value Disclosure	$ 6,386

[1] During the three months ended March 31, 2016, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

[2] During the year ended December 31, 2015, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

XML

Additional Information about Assets and Liabilities That Are Measured at Fair Value on Recurring Basis (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	$ 36,704
Change in fair value of financial instruments	2,181
Ending Balance	38,885
Warrants and investor SARs
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	26,200
Change in fair value of financial instruments	2,900
Ending Balance	29,100
Junior Subordinated Notes, at Fair Value
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning Balance	10,504
Change in fair value of financial instruments	(719)
Ending Balance	$ 9,785

XML

Fair Value Hierarchy for Financial Instruments Not Fair Valued but For Which Fair Value Is Required To Be Disclosed (Detail) - USD ($) $ in Thousands	Mar. 31, 2016		Dec. 31, 2015
Fair Value Measurement Inputs Disclosure [Line Items]
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	$ 1,612,632		$ 1,623,583
Indebtedness	3,267,230		3,328,082
Junior subordinated notes	9,785		10,504
Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs Disclosure [Line Items]
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	1,551,077		1,537,086
Junior subordinated notes	9,785	[1]	10,504	[2]
Carrying Amount
Fair Value Measurement Inputs Disclosure [Line Items]
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	1,594,467		1,606,486
Indebtedness			63,045
Estimated Fair Value
Fair Value Measurement Inputs Disclosure [Line Items]
Commercial mortgages, mezzanine loans, other loans and preferred equity interests	1,538,346		1,537,086
CMBS securitizations
Fair Value Measurement Inputs Disclosure [Line Items]
Indebtedness	855,555		885,055
CMBS securitizations | Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs Disclosure [Line Items]
Notes payable, Estimated Fair Value	657,753		709,001
CMBS securitizations | Carrying Amount
Fair Value Measurement Inputs Disclosure [Line Items]
Indebtedness	660,139		708,510
CMBS securitizations | Estimated Fair Value
Fair Value Measurement Inputs Disclosure [Line Items]
Notes payable, Estimated Fair Value	657,753		709,001
7.0% convertible senior notes | Quoted Prices in Active Markets for Identical Assets (Level1)
Fair Value Measurement Inputs Disclosure [Line Items]
Convertible senior notes, Estimated Fair Value	25,506		27,795
7.0% convertible senior notes | Carrying Amount
Fair Value Measurement Inputs Disclosure [Line Items]
Indebtedness	29,004		28,868
7.0% convertible senior notes | Estimated Fair Value
Fair Value Measurement Inputs Disclosure [Line Items]
Convertible senior notes, Estimated Fair Value	25,541		27,795
4.0% convertible senior notes | Quoted Prices in Active Markets for Identical Assets (Level1)
Fair Value Measurement Inputs Disclosure [Line Items]
Convertible senior notes, Estimated Fair Value	113,754		104,184
4.0% convertible senior notes | Carrying Amount
Fair Value Measurement Inputs Disclosure [Line Items]
Indebtedness	133,763		133,039
4.0% convertible senior notes | Estimated Fair Value
Fair Value Measurement Inputs Disclosure [Line Items]
Convertible senior notes, Estimated Fair Value	113,754		104,184
7.625% senior notes due 2024 | Quoted Prices in Active Markets for Identical Assets (Level1)
Fair Value Measurement Inputs Disclosure [Line Items]
Senior notes, Estimated Fair Value	47,712		46,560
7.625% senior notes due 2024 | Carrying Amount
Fair Value Measurement Inputs Disclosure [Line Items]
Indebtedness	58,014		57,952
7.625% senior notes due 2024 | Estimated Fair Value
Fair Value Measurement Inputs Disclosure [Line Items]
Senior notes, Estimated Fair Value	47,712		46,560
7.125% Senior Notes due 2019 | Quoted Prices in Active Markets for Identical Assets (Level1)
Fair Value Measurement Inputs Disclosure [Line Items]
Senior notes, Estimated Fair Value	65,807		62,471
7.125% Senior Notes due 2019 | Carrying Amount
Fair Value Measurement Inputs Disclosure [Line Items]
Indebtedness	69,896		69,749
7.125% Senior Notes due 2019 | Estimated Fair Value
Fair Value Measurement Inputs Disclosure [Line Items]
Senior notes, Estimated Fair Value	65,807		62,471
Senior Secured Notes | Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs Disclosure [Line Items]
Senior notes, Estimated Fair Value	66,521		66,725
Senior Secured Notes | Carrying Amount
Fair Value Measurement Inputs Disclosure [Line Items]
Indebtedness	61,847		63,045
Senior Secured Notes | Estimated Fair Value
Fair Value Measurement Inputs Disclosure [Line Items]
Senior notes, Estimated Fair Value	66,521		66,725
Junior subordinated notes, at amortized cost | Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs Disclosure [Line Items]
Junior subordinated notes	10,236		11,221
Junior subordinated notes, at amortized cost | Carrying Amount
Fair Value Measurement Inputs Disclosure [Line Items]
Indebtedness	24,887		24,884
Junior subordinated notes, at amortized cost | Estimated Fair Value
Fair Value Measurement Inputs Disclosure [Line Items]
Junior subordinated notes	10,236		11,221
CDO notes payable, at amortized cost | Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs Disclosure [Line Items]
Notes payable, Estimated Fair Value	741,480		801,289
CDO notes payable, at amortized cost | Carrying Amount
Fair Value Measurement Inputs Disclosure [Line Items]
Indebtedness	905,230		937,569
CDO notes payable, at amortized cost | Estimated Fair Value
Fair Value Measurement Inputs Disclosure [Line Items]
Notes payable, Estimated Fair Value	741,480		801,289
Loans payable on real estate | Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs Disclosure [Line Items]
Loans payable on real estate, Estimated Fair Value	787,681		834,816
Loans payable on real estate | Carrying Amount
Fair Value Measurement Inputs Disclosure [Line Items]
Indebtedness	757,668		811,666
Loans payable on real estate | Estimated Fair Value
Fair Value Measurement Inputs Disclosure [Line Items]
Loans payable on real estate, Estimated Fair Value	$ 787,681		$ 834,816

[1] During the three months ended March 31, 2016, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

[2] During the year ended December 31, 2015, there were no transfers between Level 1 and Level 2, and there were no transfers into and/or out of Level 3.

XML

Realized and Unrealized Gains and Losses on Assets and Liabilities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value Assets And Liabilities Measured On Unobservable Inputs [Line Items]
Change in fair value of financial instruments, Liabilities	$ 2,181
Change in fair value of financial instruments	(4,088)	$ 4,490
Trading securities and security-related receivables
Fair Value Assets And Liabilities Measured On Unobservable Inputs [Line Items]
Change in fair value of financial instruments, Assets		(171)
Junior subordinated notes
Fair Value Assets And Liabilities Measured On Unobservable Inputs [Line Items]
Change in fair value of financial instruments, Liabilities	719	(81)
Derivative
Fair Value Assets And Liabilities Measured On Unobservable Inputs [Line Items]
Change in fair value of financial instruments, Liabilities	(1,907)	(2,047)
Warrants and investor SARs
Fair Value Assets And Liabilities Measured On Unobservable Inputs [Line Items]
Change in fair value of financial instruments, Liabilities	2,900
Fair Value, Measurements, Recurring | Warrants and investor SARs
Fair Value Assets And Liabilities Measured On Unobservable Inputs [Line Items]
Change in fair value of financial instruments, Liabilities	$ (2,900)	$ 6,789

XML

Assets and Liabilities of Consolidated Variable Interest Entities (Detail) - USD ($) $ in Thousands		Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and preferred equity interests		$ 1,612,632	$ 1,623,583
Allowance for loan losses		(18,165)	(17,097)	$ (10,797)	$ (9,218)
Total investment in mortgages and loans, net		1,594,467	1,606,486
Investments in real estate
Investments in real estate		2,487,634	2,517,645
Less: Accumulated depreciation and amortization	[1]	(209,421)	(198,326)
Total investments in real estate	[2]	2,278,213	2,319,319
Cash and cash equivalents		94,569	125,886	$ 92,657	$ 121,726
Restricted cash		200,166	213,012
Accrued interest receivable		49,987	47,343
Other assets		73,670	71,207
Intangible assets
Accumulated amortization		(32,228)	(26,307)
Total intangible assets		26,698	32,675
Total assets		4,317,770	4,415,928
Liabilities and Equity
Indebtedness		3,267,230	3,328,082
Accrued interest payable		13,160	9,834
Accounts payable and accrued expenses		29,989	39,672
Derivative liabilities		4,181	4,727
Deferred taxes, borrowers’ escrows and other liabilities		203,612	203,477
Total liabilities		3,518,172	3,585,792
Shareholders’ equity:
Accumulated other comprehensive income (loss)		(2,434)	(4,699)
Retained earnings (deficit)		(1,707,143)	(1,680,751)
Total shareholders’ equity		381,185	404,528
Noncontrolling interests		331,328	340,213
Total liabilities and equity		4,317,770	4,415,928
IRT
Investments in real estate
Investments in real estate		1,357,338	1,372,015
Less: Accumulated depreciation and amortization		(44,422)	(39,638)
Liabilities and Equity
Indebtedness		492,129	543,080
Variable Interest Entities
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and preferred equity interests		1,676,670	1,358,497
Allowance for loan losses		0
Total investment in mortgages and loans, net		1,676,670	1,358,497
Investments in real estate
Investments in real estate		1,636,346	1,650,789
Less: Accumulated depreciation and amortization		(73,296)	(66,036)
Total investments in real estate		1,563,050	1,584,753
Cash and cash equivalents		24,407	39,890
Restricted cash		21,603	20,990
Accrued interest receivable		78,277	73,368
Other assets		28,022	28,641
Intangible assets
Intangible assets		20,532	20,532
Accumulated amortization		(17,483)	(12,997)
Total intangible assets		3,049	7,535
Total assets		3,395,078	3,113,674
Liabilities and Equity
Indebtedness		2,667,966	2,419,171
Accrued interest payable		18,179	15,681
Accounts payable and accrued expenses		21,767	25,312
Derivative liabilities		2,401	4,672
Deferred taxes, borrowers’ escrows and other liabilities		28,902	28,218
Total liabilities		2,739,215	2,493,054
Shareholders’ equity:
Accumulated other comprehensive income (loss)		(2,435)	(4,699)
RAIT investment		250,348	201,503
Retained earnings (deficit)		80,150	87,131
Total shareholders’ equity		328,063	283,935
Noncontrolling interests		327,800	336,685
Total liabilities and equity		3,395,078	3,113,674
Variable Interest Entities | RAIT Securitizations
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and preferred equity interests		1,330,285	1,358,497
Total investment in mortgages and loans, net		1,330,285	1,358,497
Investments in real estate
Restricted cash		11,295	12,718
Accrued interest receivable		76,722	73,368
Other assets		11,735	11,539
Intangible assets
Total assets		1,430,037	1,456,122
Liabilities and Equity
Indebtedness		1,146,378	1,178,794
Accrued interest payable		456	445
Accounts payable and accrued expenses		2	8
Derivative liabilities		2,401	4,672
Total liabilities		1,149,237	1,183,919
Shareholders’ equity:
Accumulated other comprehensive income (loss)		(2,409)	(4,691)
RAIT investment		118,291	115,810
Retained earnings (deficit)		164,918	161,084
Total shareholders’ equity		280,800	272,203
Total liabilities and equity		1,430,037	1,456,122
Variable Interest Entities | IRT
Investments in real estate
Investments in real estate		1,357,338	1,372,015
Less: Accumulated depreciation and amortization		(44,422)	(39,638)
Total investments in real estate		1,312,916	1,332,377
Cash and cash equivalents		21,924	38,301
Restricted cash		7,015	5,413
Other assets		2,795	3,362
Intangible assets
Intangible assets		15,287	15,287
Accumulated amortization		(15,287)	(11,551)
Total intangible assets			3,736
Total assets		1,344,650	1,383,189
Liabilities and Equity
Indebtedness		940,336	966,611
Accrued interest payable		1,175	1,239
Accounts payable and accrued expenses		16,089	19,304
Deferred taxes, borrowers’ escrows and other liabilities		6,078	6,004
Total liabilities		963,678	993,158
Shareholders’ equity:
Accumulated other comprehensive income (loss)		(26)	(8)
RAIT investment		75,542	68,273
Retained earnings (deficit)		(23,090)	(14,499)
Total shareholders’ equity		52,426	53,766
Noncontrolling interests		328,546	336,265
Total liabilities and equity		1,344,650	1,383,189
Variable Interest Entities | RAIT VIE Properties
Investments in real estate
Investments in real estate		279,008	278,774
Less: Accumulated depreciation and amortization		(28,874)	(26,398)
Total investments in real estate		250,134	252,376
Cash and cash equivalents		1,761	1,589
Restricted cash		3,290	2,859
Other assets		13,492	13,740
Intangible assets
Intangible assets		5,245	5,245
Accumulated amortization		(2,196)	(1,446)
Total intangible assets		3,049	3,799
Total assets		271,726	274,363
Liabilities and Equity
Indebtedness		273,548	273,766
Accrued interest payable		15,935	13,997
Accounts payable and accrued expenses		5,676	6,000
Deferred taxes, borrowers’ escrows and other liabilities		22,194	22,214
Total liabilities		317,353	315,977
Shareholders’ equity:
RAIT investment		17,887	17,420
Retained earnings (deficit)		(62,768)	(59,454)
Total shareholders’ equity		(44,881)	(42,034)
Noncontrolling interests		(746)	420
Total liabilities and equity		271,726	$ 274,363
Variable Interest Entities | RAIT Venture VIE
Investments in mortgages and loans, at amortized cost:
Commercial mortgages, mezzanine loans, other loans and preferred equity interests		346,385
Total investment in mortgages and loans, net		346,385
Investments in real estate
Cash and cash equivalents		722
Restricted cash		3
Accrued interest receivable		1,555
Intangible assets
Total assets		348,665
Liabilities and Equity
Indebtedness		307,704
Accrued interest payable		613
Deferred taxes, borrowers’ escrows and other liabilities		630
Total liabilities		308,947
Shareholders’ equity:
RAIT investment		38,628
Retained earnings (deficit)		1,090
Total shareholders’ equity		39,718
Total liabilities and equity		$ 348,665

[1] As of March 31, 2016, includes properties owned by Independence Realty Trust, Inc., or IRT, with a book value of $1,357,338 and accumulated depreciation of $44,422. As of December 31, 2015, includes properties owned by IRT, with a book value of $1,372,015 and accumulated depreciation of $39,638.

[2] As of March 31, 2016, four of our multifamily real estate properties, two of IRT’s multifamily real estate properties and one parcel of land were considered held-for-sale. The carrying amount of our multifamily properties was $36,301. The carrying amount of the IRT properties was $39,347. The carrying amount of the parcel of land was $1,470.

XML

Series D Preferred Shares - Additional Information (Detail) $ / shares in Units, $ in Thousands	Mar. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($) Covenant	Oct. 01, 2012 USD ($) $ / shares shares
Temporary Equity [Line Items]
Aggregate purchase price under Securities Purchase Agreement | $	$ 100,000
Stock Appreciation Rights				6,735,667
Warrants and investor SARs | $	$ 29,100	$ 26,200
Adjusted
Temporary Equity [Line Items]
Warrants exercisable for common shares	11,014,048
Stock Appreciation Rights	7,470,241
ARS VI
Temporary Equity [Line Items]
Aggregate purchase price under Securities Purchase Agreement | $				$ 100,000
Preferred Series D
Temporary Equity [Line Items]
Preferred shares with warrants				9,931,000
Warrants Exercise Price | $ / shares				$ 6.00
Preferred Series D | Adjusted
Temporary Equity [Line Items]
Warrants Exercise Price | $ / shares	$ 5.41
Preferred Series D | ARS VI
Temporary Equity [Line Items]
Cumulative redeemable preferred shares, shares issued				4,000,000
Cumulative Redeemable Preferred Shares, par value | $ / shares				$ 0.01
Number of covenants | Covenant			2
Consideration paid under Securities Purchase Agreement | $			$ 450

XML

Sales Activity of Series D Preferred Shares (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Temporary Equity Disclosure [Abstract]
Aggregate purchase price	$ 100,000
Initial value of warrants and investor SARs issued to-date	(21,805)
Costs incurred	(6,834)
Total discount	(28,639)
Discount amortization to-date	15,724
Carrying amount of Series D Preferred Shares	$ 87,085	$ 85,395

XML

Dividends Declared and Paid on Preferred Shares (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($)
Dividends [Line Items]
Total dividend amount	$ 6,830
Preferred Stock | 7.75% Series A Cumulative Redeemable Preferred Stock
Dividends [Line Items]
Date declared	Feb. 16, 2016
Record date	Mar. 01, 2016
Date paid	Mar. 31, 2016
Total dividend amount	$ 2,570
Preferred Stock | 8.375% Series B Cumulative Redeemable Preferred Stock
Dividends [Line Items]
Date declared	Feb. 16, 2016
Record date	Mar. 01, 2016
Date paid	Mar. 31, 2016
Total dividend amount	$ 1,225
Preferred Stock | 8.875% Series C Cumulative Redeemable Preferred Stock
Dividends [Line Items]
Date declared	Feb. 16, 2016
Record date	Mar. 01, 2016
Date paid	Mar. 31, 2016
Total dividend amount	$ 910
Preferred Stock | Series D cumulative redeemable preferred shares
Dividends [Line Items]
Date declared	Feb. 16, 2016
Record date	Mar. 01, 2016
Date paid	Mar. 31, 2016
Total dividend amount	$ 2,125

XML

Shareholders' Equity - Additional Information (Detail) - USD ($)									3 Months Ended		6 Months Ended
	Apr. 29, 2016	Apr. 22, 2016	Mar. 14, 2016	Feb. 23, 2016	Feb. 22, 2016	Feb. 12, 2016	Sep. 17, 2015	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015	Dec. 31, 2015	Jun. 13, 2014	Nov. 21, 2012
Class of Stock [Line Items]
Common stock, dividend declared			$ 0.09
Common stock, dividend paid									$ 8,548,000
Annual incentive compensation plan description									On March 31, 2015, the compensation committee adopted a 2015 Annual Incentive Compensation Plan, or the annual cash bonus plan, and made awards to three of our executive officers, or the eligible officers, setting forth the basis on which 2015 target cash bonus awards are earned. In addition, the compensation committee adopted a 2015 Long Term Incentive Plan, or the LTIP, and made awards, or the 2015 awards, to the eligible officers setting forth the basis on which the eligible officers could earn equity compensation for the years 2015 through 2018. Pursuant to the LTIP, each eligible officer was granted an initial long term equity award, consisting of both a performance share unit award for a three year performance period and an annual restricted share award vesting over a four year period. Three components of the performance share unit award have market conditions and had grant date fair values of $3.35, $3.26 and $2.17 per share. Both the annual cash bonus plan and the LTIP were adopted pursuant to our 2012 Incentive Award Plan. For the three months ended March 31, 2016, we recorded $122 of compensation expense related to the LTIP.
Compensation expense									$ 7,075,000	$ 6,108,000
Common shares pursuant to the DRSPP									2,527
Net proceeds received									$ 6,000
Common shares remaining available under the DRSPP									7,759,195
Jones Trading Institutional Services LLC
Class of Stock [Line Items]
Common shares, shares issued									0
Common shares remaining available for issuance									7,918,919
Jones Trading Institutional Services LLC | Maximum
Class of Stock [Line Items]
Common shares to be issued and sold														10,000,000
IRT
Class of Stock [Line Items]
Shares outstanding									7,269,719			7,269,719
Ownership percentage									15.40%			15.50%
IRT | Trade Street Residential, Inc
Class of Stock [Line Items]
Common stock issued in connection with merger							15,110,994
IROP | Trade Street Residential, Inc
Class of Stock [Line Items]
Common stock issued in connection with merger							1,925,419
Long Term Incentive Compensation Plan Ltip
Class of Stock [Line Items]
Compensation expense											$ 122,000
Short Term Annual Cash Bonus Plan | Tranche One
Class of Stock [Line Items]
Percentage of target awards payable										75.00%
Percentage of cash available for distribution										35.00%
Percentage of adjusted book value										20.00%
Percentage of return on equity										20.00%
Short Term Annual Cash Bonus Plan | Tranche Two
Class of Stock [Line Items]
Percentage of target awards payable										25.00%
Short Term Annual Cash Bonus Plan | Minimum Performance Target
Class of Stock [Line Items]
Target incentive opportunity payable percentage										50.00%
Short Term Annual Cash Bonus Plan | Target Performance Target
Class of Stock [Line Items]
Target incentive opportunity payable percentage										100.00%
Short Term Annual Cash Bonus Plan | Maximum Performance Target
Class of Stock [Line Items]
Target incentive opportunity payable percentage										150.00%
LTIP | Performance Based Long Term Incentive Plan
Class of Stock [Line Items]
Vesting period								3 years
Compensation awarded, Percentage of award								75.00%
LTIP | Time Based Long Term Incentive Plan
Class of Stock [Line Items]
Vesting period								3 years
Compensation awarded, Percentage of award								25.00%
LTIP | Peer Group of Public Companies Over The Same Period
Class of Stock [Line Items]
Equity award target percentage								40.00%
LTIP | TSR for the NAREIT Mortgage Index
Class of Stock [Line Items]
Equity award target percentage								20.00%
LTIP | Absolute TSR
Class of Stock [Line Items]
Equity award target percentage								20.00%
LTIP | Strategic Objective
Class of Stock [Line Items]
Equity award target percentage								20.00%
Non-management trustees
Class of Stock [Line Items]
Number of shares awarded, share				168,776
Number of shares awarded, value				$ 400,000
Closing stock price				$ 2.37
Vesting period				3 years
Subsequent Event
Class of Stock [Line Items]
Common stock, dividend paid	$ 8,200,000
Restricted Stock
Class of Stock [Line Items]
Common stock, dividend paid									$ 348,000
Restricted Stock | IRT
Class of Stock [Line Items]
Number of shares awarded, value						$ 1,306,000
Closing stock price						$ 6.22
Vesting period						3 years
Number of shares awarded, share						210,000
Restricted Stock | Non Executive Officer
Class of Stock [Line Items]
Number of shares awarded, share					367,000
Number of shares awarded, value					$ 873,000
Closing stock price					$ 2.38
Vesting period					3 years
Restricted Stock | Subsequent Event
Class of Stock [Line Items]
Vesting period		4 years
Stock Appreciation Rights (SARs) | Non Executive Officer
Class of Stock [Line Items]
Number of shares awarded, share					895,000
Number of shares awarded, value					$ 206,000
Vesting period					3 years
Expiration date					Feb. 22, 2021
Performance Shares Component One | Long Term Incentive Compensation Plan Ltip
Class of Stock [Line Items]
Grant date fair value per share									$ 3.35
Performance Shares Component Two | Long Term Incentive Compensation Plan Ltip
Class of Stock [Line Items]
Grant date fair value per share									3.26
Performance Shares Component Three | Long Term Incentive Compensation Plan Ltip
Class of Stock [Line Items]
Grant date fair value per share									$ 2.17
Performance Shares | Subsequent Event
Class of Stock [Line Items]
Performance period		3 years
Performance period earliest date		Jan. 01, 2016
Performance period latest date		Dec. 31, 2018
Dividend Reinvestment And Share Purchase Plan
Class of Stock [Line Items]
Registered and reserved common shares									10,500,000
Weighted-average price per shares									$ 2.56
Preferred Stock
Class of Stock [Line Items]
Preferred shares aggregate amount to be issued and sold													$ 150,000,000
Preferred Stock | 7.75% Series A Cumulative Redeemable Preferred Stock
Class of Stock [Line Items]
Preferred shares authorized to be issued under agreement													4,000,000
Dividend payment date									Mar. 31, 2016
Dividend record date									Mar. 01, 2016
Preferred Stock | 8.375% Series B Cumulative Redeemable Preferred Stock
Class of Stock [Line Items]
Preferred shares authorized to be issued under agreement													1,000,000
Dividend payment date									Mar. 31, 2016
Dividend record date									Mar. 01, 2016
Preferred Stock | 8.875% Series C Cumulative Redeemable Preferred Stock
Class of Stock [Line Items]
Preferred shares authorized to be issued under agreement													1,000,000
Dividend payment date									Mar. 31, 2016
Dividend record date									Mar. 01, 2016
Preferred Stock | 7.75% Series A cumulative redeemable preferred shares
Class of Stock [Line Items]
Aggregate of Series A,B,C Preferred Shares available for issuance									2,763,204
Preferred Stock | 8.375% Series B cumulative redeemable preferred shares
Class of Stock [Line Items]
Aggregate of Series A,B,C Preferred Shares available for issuance									947,496
Preferred Stock | 8.875% Series C cumulative redeemable preferred shares
Class of Stock [Line Items]
Aggregate of Series A,B,C Preferred Shares available for issuance									999,675
Common Shares
Class of Stock [Line Items]
Dividend payment date			Apr. 29, 2016
Dividend record date			Apr. 08, 2016
Common shares, shares issued									2,527

XML

Reconciliation of Basic and Diluted Earnings (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Net income (loss)	$ (10,503)	$ 266
(Income) loss allocated to preferred shares	(8,520)	(7,859)
(Income) loss allocated to noncontrolling interests	1,179	496
Net income (loss) allocable to common shares	$ (17,844)	$ (7,097)
Weighted-average shares outstanding-Basic	91,018,160	82,081,024
Weighted-average shares outstanding—Diluted	91,018,160	82,081,024
Earnings (loss) per share-Basic:
Earnings (loss) per share-Basic	$ (0.20)	$ (0.09)
Earnings (loss) per share-Diluted:
Earnings (loss) per share-Diluted	$ (0.20)	$ (0.09)

XML

Earnings (Loss) Per Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Anti-dilutive shares not included in computation of earnings per common share	32,325,109	31,562,037

XML

Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Supplemental Cash Flow Elements [Abstract]
Cash paid for interest	$ 22,766	$ 13,933
Cash paid for taxes	120	$ 57
Non-cash decrease in investments in real estate, intangible assets and other liabilities from conversion of loans	$ (1,499)

XML

Segment Reporting - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Investments in real estate, Book Value	$ 2,487,634	$ 2,517,645
IRT
Segment Reporting Information [Line Items]
Investments in real estate, Book Value	$ 1,357,338	$ 1,372,015

XML

Segment Reporting (Detail) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Net interest margin		$ 17,906	$ 16,334
Property income		68,722	53,274
Fee and other income		2,852	5,594
Provision for losses		1,325	2,000
Depreciation and amortization expense		24,276	19,024
Operating income		(6,240)	(3,247)
Change in fair value of financial instruments		(4,088)	4,490
Income tax benefit (provision)		993	(582)
Net income (loss)		(10,503)	266
Operating Segments | Owning and Management Segment
Segment Reporting Information [Line Items]
Net interest margin		18,171	16,572
Property income		30,056	31,617
Fee and other income		9,725	9,790
Provision for losses		1,325	2,000
Depreciation and amortization expense		12,749	12,986
Operating income		(3,650)	(3,004)
Change in fair value of financial instruments		(4,088)	4,490
Income tax benefit (provision)		993	(582)
Net income (loss)		(9,148)	1,817
Operating Segments | IRT Segment
Segment Reporting Information [Line Items]
Property income		38,666	21,657
Depreciation and amortization expense		11,527	6,038
Operating income		(2,590)	(242)
Net income (loss)		(46)	(241)
Eliminations
Segment Reporting Information [Line Items]
Net interest margin	[1]	(265)	(238)
Fee and other income	[1]	(6,873)	(4,196)
Operating income	[1]		(1)
Net income (loss)	[1]	$ (1,309)	$ (1,310)

[1] The transactions that occur between the reportable segments include advisory and property management services, as well as, providing commercial mortgages on our owned real estate.

XML

Commitments and Contingencies - Additional Information (Detail)	Mar. 31, 2016 USD ($)
Maximum
Commitment And Contingencies [Line Items]
Attorneys’ fees and reimbursement expenses	$ 250,000