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Participants may discuss non-GAAP financial measures in this call. A copy of RAIT's press release containing financial information, other statistical information and a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure is attached to RAIT's most recent current report on Form 8-K, available at RAIT's website, www.raitft.com, under Investor Relations. RAIT's other SEC filings are also available through this link. RAIT does not undertake to update forward-looking statements in this call or with respect to matters described herein except as may be required by law.Now I'd like to turn the call over to RAIT's Chief Executive Officer, Scott Schaeffer. Scott? Scott Schaeffer Thank you very much, Andres, and thank all of you for joining us this morning as we present RAIT's second quarter results. The quarter ended June 30th, 2010 RAIT generated $0.27 per share in GAAP earning and $6.5 million of REIT taxable income. This is our third consecutive quarter of positive GAAP earnings in the first quarter of REIT taxable income, since the third quarter of 2009. We are pleased with these results and are hopeful that we have turned the corner and that these trends will continue. Of course, our success is closely tied to continued improvement in general economic and credit market conditions. On previous calls we’ve described our goals to RAIT as we continue to adapt the business to the current market and beyond. I’d like to take a moment and update you on the progress we’ve made towards achieving these goals during the first half of 2010. First, deleveraging the balance sheet. During the second quarter we made further strides in the deleveraging process. We repurchased or retired approximately $48.1 million of RAIT's total indebtedness lowering rates after equity ratio to 2.7 times. Specifically, we took advantages of opportunities to repurchase at substantial discounts $33.5 million of our 6.875% convertible note and CRE, CDO debt, the balance of such convertible debt obtaining at the end of the second quarter is $172 million as compared to $246 million at the beginning of the year.
Also, consequent to quarter end we exchange beneficial 10 million of our convertible debt for a combination of cash and equity. We expect to continue to deleverage the company throughout 2010.Our second goal is managing the performance of our commercial real estate platform. The credit performance of our commercial real estate portfolio continues to improve. Our CRE related provision for loan losses was $7.6 million in the second quarter as compared to $19.5 million a year ago and our CRE loans are non-accrual remains level up on a link quarter basis and decreased 23% year-over-year. Our portfolio of directly owned commercial real estate assets totaled $804 million at June 30th, 2010. Average occupancy rate and rent continue to improve in the portfolio as a whole with the multi-family assets being the largest and best performing property prices in the portfolio. As an owner we benefit from any potential equity upside in the portfolio and future revenue growth that we can achieve through our -- with management towards of this assets towards stabilization. We also continue to execute on our green energy initiatives and are taking advantage of government subsidies in tax credit focus on job creation within our office and retail copies. So future performance is difficult to predict in the first half of 2010, our occupancy rates rose, our provision for loan losses declined and we continue to pass those yield to collateralization and interest coverage tests on both of our CRE, CDO securitizations. Read the rest of this transcript for free on seekingalpha.com