VARIABLE INTEREST ENTITIES (Tables)

6 Months Ended

Jun. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Assets and Liabilities of Consolidated Variable Interest Entities

The following tables present the assets and liabilities of our consolidated VIEs as of each respective date. Certain amounts included in the tables below are eliminated upon consolidation with our other subsidiaries that maintain investments in the debt or equity securities issued by these entities.

	As of June 30, 2018
	RAIT Securitizations		RAIT VIE Properties			Total
Assets
Investments in commercial mortgage loans, mezzanine loans and preferred equity interests, at amortized cost:
Commercial mortgage loans, mezzanine loans, and preferred equity interests	$	936,034	$	—		$	936,034
Allowance for losses		—		—			—
Total investments in commercial mortgage loans, mezzanine loans and preferred equity interests		936,034		—			936,034
Investments in real estate
Investments in real estate		—		25,662			25,662
Accumulated depreciation		—		(7,454	)		(7,454	)
Total investments in real estate		—		18,208			18,208
Cash and cash equivalents		—		228			228
Restricted cash		16,354		414			16,768
Accrued interest receivable		37,878		—			37,878
Other assets		109		3,848			3,957
Intangible assets
Intangible assets		—		—			—
Accumulated amortization		—		—			—
Total intangible assets		—		—			—
Total assets	$	990,375	$	22,698		$	1,013,073
Liabilities and Equity
Indebtedness, net	$	933,977	$	19,563		$	953,540
Accrued interest payable		1,947		5,616			7,563
Accounts payable and accrued expenses		37		3,244			3,281
Derivative liabilities		—		—			—
Deferred taxes, borrowers’ escrows and other liabilities		2		181			183
Total liabilities		935,963		28,604			964,567
Equity:
Shareholders’ equity:
RAIT investment and Retained earnings (deficit)		54,412		(5,906	)		48,506
Total shareholders’ equity		54,412		(5,906	)		48,506
Noncontrolling Interests		—		—			—
Total liabilities and equity	$	990,375	$	22,698		$	1,013,073

	As of December 31, 2017
	RAIT Securitizations		RAIT VIE Properties			RAIT Venture VIE			Total
Assets
Investments in commercial mortgage loans, mezzanine loans and preferred equity interests, at amortized cost:
Commercial mortgage loans, mezzanine loans, and preferred equity interests	$	1,082,528	$	—		$	349,924		$	1,432,452
Allowance for losses		—		—			—			—
Total investments in commercial mortgage loans, mezzanine loans and preferred equity interests		1,082,528		—			349,924			1,432,452
Investments in real estate
Investments in real estate		—		25,536			—			25,536
Accumulated depreciation		—		(6,902	)		—			(6,902	)
Total investments in real estate		—		18,634			—			18,634
Cash and cash equivalents		—		283			92			375
Restricted cash		1,068		237			10			1,315
Accrued interest receivable		41,639		—			2,462			44,101
Other assets		16,860		3,954			—			20,814
Intangible assets
Intangible assets		—		—			—			—
Accumulated amortization		—		—			—			—
Total intangible assets		—		—			—			—
Total assets	$	1,142,095	$	23,108		$	352,488		$	1,517,691
Liabilities and Equity
Indebtedness, net	$	1,034,750	$	19,630		$	354,835		$	1,409,215
Accrued interest payable		1,869		5,356			1,111			8,336
Accounts payable and accrued expenses		23		3,274			—			3,297
Derivative liabilities		—		—			—			—
Deferred taxes, borrowers’ escrows and other liabilities		—		184			643			827
Total liabilities		1,036,642		28,444			356,589			1,421,675
Equity:
Shareholders’ equity:
RAIT investment and Retained earnings (deficit)		105,453		(5,336	)		(4,140	)		95,978
Total shareholders’ equity		105,453		(5,336	)		(4,140	)		95,977
Noncontrolling Interests		—		—			39			39
Total liabilities and equity	$	1,142,095	$	23,108		$	352,488		$	1,517,691

Assets and Liabilities of Deconsolidated Variable Interest Entities

The following table summarizes the effects of deconsolidating the RAIT Venture VIEs, RAIT FL5 and RAIT FL6 from our balance sheet as of June 27, 2018:

	As of June 27, 2018
Assets
Commercial mortgage loans, mezzanine loans, and preferred equity interests	$	266,502
Cash and cash equivalents		189
Restricted cash		22,569
Accrued interest receivable		1,191
Other assets		1,233
Total assets	$	291,684
Liabilities
Indebtedness, net	$	205,137
Accrued interest payable		502
Accounts payable and accrued expenses		45
Borrowers' escrows		22,549
Deferred taxes and other liabilities		531
Total liabilities		228,764
Equity:
Stockholders' equity:
Noncontrolling interests		111
Total liabilities and equity	$	228,875

RAIT IV's net investment in RAIT FL5 & RAIT FL6	$	62,809
Purchase price for RAIT IV's FL5 Interests & FL6 Interests	$	54,632
Loss on deconsolidation of RAIT Venture VIEs, RAIT FL5 & RAIT FL6	$	(8,177	)

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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