RAIT Financial Trust (“RAIT”) (NYSE: RAS) today announced the following:

Tax Treatment of 2016 Dividends

Common Shares

RAIT’s common shares (the “Common Shares”) are currently listed under the CUSIP #749227609 and trade under the NYSE ticker symbol “RAS”. The aggregate amount of dividends with record dates in 2016 was $0.36 per share. The following table contains information on the 2016 Common Share dividend payments.

               
Qualified
Dividends
(Included

Unrecap.

Declaration Record Distribution Ordinary in Ordinary Capital Gain Sec. 1250 Return of

Date

Date

Pay Date

Per Share

Dividends

Dividends)

Distribution

Gain

Capital

12/7/2015 1/8/2016 1/29/2016 $0.09 $0.0427 $0.0427 $0.0473 $0.0186 $0.0000
3/14/2016 4/8/2016 4/29/2016 $0.09 $0.0427 $0.0427 $0.0473 $0.0186 $0.0000
6/15/2016 7/8/2016 7/29/2016 $0.09 $0.0427 $0.0427 $0.0473 $0.0186 $0.0000
9/19/2016 10/7/2016 10/31/2016 $0.09 $0.0427 $0.0427 $0.0473 $0.0186 $0.0000
 

Series A Preferred Shares

RAIT’s 7.75% Series A Cumulative Redeemable Preferred Shares (the “Series A Preferred Shares”) are currently listed under the CUSIP #749227203 and trade under the NYSE ticker symbol “RAS PRA”. The aggregate amount of dividends with record dates in 2016 was $1.9376 per share. The following table contains information on the 2016 Series A Preferred Share dividend payments.

             
Qualified
Dividends
(Included in

Capital

Unrecap.
Declaration Record Distribution Per Ordinary Ordinary

Gain

Sec. 1250

Date

Date

Pay Date

Share

Dividends

Dividends)

Distribution

Gain

2/16/2016 3/1/2016 3/31/2016 $0.4844 $0.2298 $0.2298 $0.2546 $0.0999
5/19/2016 6/1/2016 6/30/2016 $0.4844 $0.2298 $0.2298 $0.2546 $0.0999
7/27/2016 9/1/2016 9/30/2016 $0.4844 $0.2298 $0.2298 $0.2546 $0.0999
11/2/2016 12/1/2016 1/3/2017 $0.4844 $0.2298 $0.2298 $0.2546 $0.0999
 

Series B Preferred Shares

RAIT’s 8.375% Series B Cumulative Redeemable Preferred Shares (the “Series B Preferred Shares”) are currently listed under the CUSIP #749227302 and trade under the NYSE ticker symbol “RAS PRB”. The aggregate amount of dividends with record dates in 2016 was $2.0936 per share. The following table contains information on the 2016 Series B Preferred Share dividend payments.

             
Qualified
Dividends
(Included in Capital Unrecap.
Declaration Record Distribution Per Ordinary Ordinary Gain Sec. 1250

Date

Date

Pay Date

Share

Dividends

Dividends)

Distribution

Gain

2/16/2016 3/1/2016 3/31/2016 $0.5234 $0.2483 $0.2483 $0.2751 $0.1079
5/19/2016 6/1/2016 6/30/2016 $0.5234 $0.2483 $0.2483 $0.2751 $0.1079
7/27/2016 9/1/2016 9/30/2016 $0.5234 $0.2483 $0.2483 $0.2751 $0.1079
11/2/2016 12/1/2016 1/3/2017 $0.5234 $0.2483 $0.2483 $0.2751 $0.1079
 

Series C Preferred Shares

RAIT’s 8.875% Series C Cumulative Redeemable Preferred Shares (the “Series C Preferred Shares”) are currently listed under the CUSIP #749227500 and trade under the NYSE ticker symbol “RAS PRC”. The aggregate amount of dividends with record dates in 2016 was $2.2188 per share. The following table contains information on the 2016 Series C Preferred Share dividend payments.

             
Qualified
Dividends
(Included in Capital Unrecap.
Declaration Record Distribution Per Ordinary Ordinary Gain Sec. 1250

Date

Date

Pay Date

Share

Dividends

Dividends)

Distribution

Gain

2/16/2016 3/1/2016 3/31/2016 $0.5547 $0.2631 $0.2631 $0.2916 $0.1144
5/19/2016 6/1/2016 6/30/2016 $0.5547 $0.2631 $0.2631 $0.2916 $0.1144
7/27/2016 9/1/2016 9/30/2016 $0.5547 $0.2631 $0.2631 $0.2916 $0.1144
11/2/2016 12/1/2016 1/3/2017 $0.5547 $0.2631 $0.2631 $0.2916 $0.1144
 

Alternative minimum tax adjustments are to be apportioned between a real estate investment trust (“REIT”) and its shareholders under Internal Revenue Code Section 59(d). Although regulations have not yet been issued under that provision, based on regulations issued pursuant to a similar provision of prior law and the legislative history of the current provision, it appears that such alternative minimum tax adjustments are to be apportioned to a REIT’s shareholders to the extent that the REIT distributes its regular taxable income. It is RAIT’s policy to distribute all of its regular taxable income and accordingly, all of RAIT’s alternative minimum tax adjustments are being apportioned to RAIT’s shareholders.

RAIT has determined that 4.36% of each distribution to its common shareholders, Series A preferred shareholders, Series B preferred shareholders and Series C preferred shareholder for the tax year ended December 31, 2016 consists of alternative minimum tax adjustments (i.e., for each $1 of dividend reportable by a shareholder, $0.0436 represents an alternative minimum tax adjustment). To determine your share of RAIT’s alternative minimum tax adjustments, multiply the aggregate dollar amount of your reportable 2016 dividends from RAIT (the sum of the amounts shown in Boxes 1a and 2a of RAIT’s 2016 Form 1099-DIV) by 4.36%.

If you are an individual, please refer to Internal Revenue Service Form 6251, Alternative Minimum Tax— Individuals. Your share of alternative minimum tax adjustments should be input as a positive amount in Part I, Line 27 (other adjustments). A corporation’s share of alternative minimum tax adjustments should be input as a positive amount on Internal Revenue Service Form 4626, Alternative Minimum Tax—Corporations, on line 2o (Other adjustments and preferences).

If you have questions, please consult your tax advisor for further guidance.

About RAIT Financial Trust

RAIT Financial Trust is an internally-managed real estate investment trust focused on providing debt financing options to owners of commercial real estate throughout the United States. For more information, please visit www.rait.com or call Investor Relations at 215.207.2100.