The biggest risk on these is if the company decides to suspend the dividend. But, that is unlikely to happen now since they continued to pay during 2008. At $20, the yield is almost 10% and you get 25% capital gain if the company calls the shares:
RAIT Investment Trust, 7.75% Series A Cumulative Redeemable Preferred Shares, liquidation preference $25 per share, redeemable at the issuer's option on or after 3/19/2009 at $25 per share plus accrued and unpaid dividends, with no stated maturity, and with distributions of 7.75% ($1.9375) per annum paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the record date which is the first calendar day of the month in which the payment is due or on the date fixed by the board, not more than 30 days or less than 10 days prior to the payment date (NOTE: the ex-dividend date is at least 2 business days prior to the record date). Dividends paid by preferreds issued by REITs are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company.