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Resource Capital Corp. Reports Results for First Quarter March 31, 2009
NEW YORK, NY, May 05, 2009 (MARKETWIRE via COMTEX) -- Resource Capital Corp. (NYSE: RSO) ("RCC" or the "Company"), a real estate investment trust whose investment strategy focuses on commercial real estate ("CRE") loan assets and, to a lesser extent, commercial finance assets, reported results for the first quarter ended March 31, 2009.

Financial Highlights

--  Net operating income of $10.2 million, or $0.42 per share-diluted for
    the quarter ended March 31, 2009 as compared to $10.7 million, or $0.43 per
    share-diluted for the quarter ended March 31, 2008, a decrease of $552,000
    (5%).
--  REIT taxable income, a non-GAAP measure, of $6.1 million or $0.25 per
    share-diluted for the first quarter ended March 31, 2009 as compared to
    $12.1 million or $0.48 per share-diluted for the first quarter ended March
    31, 2008, a decrease of $6.0 million (49%).
--  GAAP net loss for the quarter ended March 31, 2009 of $0.50 per share,
    including provisions for loan and lease losses of $8.0 million, net
    unrealized losses on bank loans held for sale of $9.0 million and other-
    than-temporary impairment charges of $5.6 million, or a total of (-$0.92)
    per share, as compared to GAAP net income for the quarter ended March 31,
    2008 of $0.38 per share-diluted including provisions for loan and lease
    losses of $1.1 million or (-$0.05) per share-diluted.
--  RCC announced a dividend distribution of $0.30 per common share for
    the quarter ended March 31, 2009, $7.5 million in the aggregate, paid on
    April 28, 2009 to stockholders of record as of March 31, 2009.
--  Economic book value, a non-GAAP measure, was $9.74 per common share as
    of March 31, 2009.
--  GAAP book value was $6.81 per common share as of March 31, 2009.
--  Paydowns and repayments totaled $35.4 million, which included $17.4
    million on RCC's CRE loan portfolio and $18.0 million on RCC's bank loan
    portfolio for the quarter ended March 31, 2009. Since the quarter end,
    RCC's bank loan portfolio paydowns and repayments totaled an additional
    $10.4 million and RCC's CRE loan portfolio paydowns and repayments totaled
    an additional $5.1 million.
--  RCC reduced the balance of its non-recourse repurchase facility
    funding CRE loans to $16.0 million as of March 31, 2009, which is secured
    by $36.0 million of pledged collateral.


Jonathan Z. Cohen, CEO and President of RCC, commented, "Given the global and macroeconomic circumstances, our real estate portfolio continues to perform well -- we continue to benefit from overall good asset quality and a low cost of funding due to our long term matched liabilities. We are actively managing our portfolios to maintain the creditworthiness of our assets and to maximize our ability to reinvest our funds into the opportunities we see arising in this marketplace. We continue to reduce the amount of leverage we use, as can be seen in our CRE loan repayments and origination activities. Because we are seeing attractive new investment opportunities ahead, we believe that in the future, as we receive increased loan repayments and proceeds from asset sales, we will be able to generate new loans with substantial returns without relying on new leverage to achieve such returns. We also look forward to continue paying a meaningful cash dividend."

Additional financial results for the first quarter ended March 31, 2009 and recent developments include:

General

--  RCC's net interest income decreased by $1.1 million, or 8%, to $12.7
    million for the first quarter ended March 31, 2009, as compared to $13.8
    million for the same period in 2008.


Commercial Real Estate

--  RCC funded commitments on existing CRE loans, on a gross basis, of
    $3.6 million during the first quarter ended March 31, 2009. The aggregate
    net portfolio of CRE loans was reduced by $103.2 million to $805.9 million
    at March 31, 2009, from $909.1 million at March 31, 2008, not including
    future funding obligations of $3.4 million.


The following table summarizes RCC's CRE loan repayment and orgination activities (including future funding obligations), at par, for the three and 12 months ended March 31, 2009 (in millions, except percentages)(unaudited):

                                  Three               Floating
                                  Months   12 Months  Weighted   Weighted
                                  Ended      Ended     Average    Average
                                March 31,  March 31,    Spread     Fixed
                                  2009       2009      (1) (2)   Rate (1)
                                ---------  ---------  ---------  ---------
Whole loans (3)                 $     3.6  $    25.1       2.91%      7.78%
Whole loans, future
 funding obligations                    -        3.4        N/A        N/A
                                ---------  ---------
New loans production                  3.6       28.5
Payoffs                              (7.0)     (59.5)
Principal paydowns                  (10.4)     (25.1)
Whole loans, future funding
 obligations                            -       (3.4)
                                ---------  ---------
Net - new loans (4)             $   (13.8) $   (59.5)
                                =========  =========
(1) Reflects rates on our portfolio balance as of March 31, 2009.
(2) Represents the weighted average rate above London Interbank Offered
    Rate ("LIBOR") on loans whose interest rate is based on LIBOR.
(3) Includes fundings of previous commitments on transitional loans of
    $3.6 million for the three months ended March 31, 2009 and $4.3 million
    for the 12 months ended March 31, 2009.
(4) The basis of new net loans does not include provisions for losses on
    CRE loans of $5.0 for the three months ended March 31, 2009 and $19.7
    million for the 12 months ended March 31, 2009.

Commercial Finance

--  RCC's bank loan portfolio ended the first quarter with total
    investments of $939.4 million, at amortized cost, with a weighted-average
    spread of one-month and three-month LIBOR plus 2.48%. All of RCC's bank
    loan portfolio is match-funded through three collateralized loan obligation
    ("CLO") issuances with a weighted-average cost of three-month LIBOR plus
    0.47%.
--  RCC's commercial finance subsidiary ended the first quarter with $97.1
    million, at amortized cost, in direct financing leases and loans at a
    weighted-average rate of 8.70%. RCC's leasing portfolio is match-funded
    through a secured term facility which had an outstanding balance of $88.7
    million as of March 31, 2009 and a weighted-average interest rate of 7.68%,
    which includes the cost of interest rate swaps with respect to the term
    facility.


Book Value

As of March 31, 2009, RCC's GAAP book value per common share was $6.81. Total stockholders' equity was $169.5 million as of March 31, 2009 as compared to $186.3 million as of December 31, 2008. Total common shares outstanding were 24,901,995 as of March 31, 2009 as compared to 25,344,867 as of December 31, 2008. The net decrease in RCC's stockholders' equity of $16.8 million was substantially the result of increased provisions for loan and lease losses of $8.0 million, losses on our bank loan portfolio of $9.0 million, combined with a decrease in the value of marked-to-market securities of $9.0 million, which was partially offset by an increase in the value of interest swap liabilities of $8.9 million.

As of March 31, 2009, RCC's economic book value per common share outstanding, a non-GAAP measure, was $9.74. Economic book value is computed by adding back to GAAP book value any unrealized losses on the Company's investments in CMBS for which it expects to recover full par value at maturity, and on derivatives (cash flow hedges) that are associated with fixed-rate loans which it intends to hold until maturity, in excess of its value at risk, and that have not been adjusted through stockholders' equity for market fluctuations (see Note 1 of Schedule III in this release). Economic book value per share is computed by dividing the economic book value by the number of shares outstanding at the end of the period.

Investment Portfolio

The table below summarizes the amortized cost and net carrying amount of RCC's investment portfolio as of March 31, 2009, classified by interest rate type. The following table includes both (i) the amortized cost of RCC's investment portfolio and the related dollar price, which is computed by dividing amortized cost by par amount, and (ii) the net carrying amount of RCC's investment portfolio and the related dollar price, which is computed by dividing the net carrying amount by par amount (in thousands, except percentages)(unaudited):

                                                            Net
                                                         carrying
                                     Net               amount less
             Amortized   Dollar    carrying     Dollar  amortized   Dollar
              cost (3)   price      amount      price      cost     price
             ----------- ------  -----------    ------  ----------  ------
  March 31,
   2009
  Floating
   rate
CMBS-private
 placement   $    32,063  99.99% $    12,142     37.87% $  (19,921) -62.12%
Other ABS             45 100.00%          45    100.00%          -       -%
B notes (1)       26,500 100.00%      26,399     99.62%       (101)  -0.38%
Mezzanine
 loans (1)       129,396 100.00%     129,007     99.70%       (389)  -0.30%
Whole loans
 (1)             424,645  99.80%     418,371     98.32%     (6,274)  -1.48%
Bank
 loans (2)       923,441  97.58%     648,566     68.54%   (274,875) -29.04%
Bank loans
 held for
 sale             15,968 100.00%      15,968    100.00%          -       -%
             -----------         -----------            ----------
  Total
   floating
   rate      $ 1,552,058  98.49% $ 1,250,498     79.36% $ (301,560) -19.13%
             ===========         ===========            ==========
  Fixed rate
CMBS -
 private
 placement   $    38,505  91.52% $     8,139     19.34% $  (30,366) -72.18%
B notes (1)       55,387 100.10%      55,221     99.80%       (166)  -0.30%
Mezzanine
 loans (1)        81,293  94.74%      68,398     79.71%    (12,895) -15.03%
Whole loans
 (1)              88,472  99.61%      88,210     99.31%       (262)  -0.30%
Equipment
 leases and
 loans (4)        97,096  99.27%      96,546     98.71%       (550)  -0.56%
             -----------         -----------            ----------
  Total
   fixed
   rate      $   360,753  97.54% $   316,514     85.58% $  (44,239) -11.96%
             ===========         ===========            ==========
    Grand
     total   $ 1,912,811  98.31% $ 1,567,012     80.54% $ (345,799) -17.77%
             ===========         ===========            ==========
(1)  Net carrying amount includes an allowance for loan losses of $20.1
     million at March 31, 2009, allocated as follows:  B notes ($0.3
     million), mezzanine loans ($13.3 million) and whole loans ($6.5
     million).
(2)  The bank loan portfolio is carried at amortized cost less allowance
     for loan loss and was $896.7 million at March 31, 2009. Amount
     disclosed represents net realized value at March 31, 2009, which
     includes $26.7 million allowance for loan losses at March 31, 2009.
(3)  Bank loans held for sale and other ABS are carried at fair value and,
     therefore, amortized cost is equal to fair value.
(4)  Net carrying amount includes a $550,000 allowance for lease and loan
     losses at March 31, 2009.

Liquidity

At April 30, 2009, after disbursing the first quarter 2009 dividend, there were three primary sources for RCC's liquidity:

--  unrestricted cash and cash equivalents of $7.6 million and restricted
    cash of $10.0 million comprised of $6.6 million in margin call accounts and
    $3.4 million related to the leasing portfolio;
--  capital available for reinvestment in its five collateralized debt
    obligation ("CDO") entities of $41.9 million, of which $6.8 million is
    designated to finance future funding commitments on CRE loans; and
--  financing available under existing borrowing facilities of $11.3
    million from RCC's secured financing facility. RCC also has $84.0 million
    of unused capacity under a three-year non-recourse CRE repurchase facility,
    which, however, requires approval of individual repurchase transactions by
    the repurchase counterparty.


Capital Allocation

As of March 31, 2009, RCC had allocated its equity capital among its targeted asset classes as follows: 72% in CRE loans, 25% in commercial bank loans and 3% in direct financing leases and notes.

Supplemental Information

The following schedules of reconciliations or supplemental information as of March 31, 2009 are included at the end of this release:

--  Schedule I - Reconciliation of GAAP Net Loss to Estimated REIT Taxable
    Income;
--  Schedule II - Reconciliation of GAAP Stockholders' Equity to Economic
    Book Value; and
--  Schedule III - Summary of RCC's CDO and CLO Performance Statistics.


About Resource Capital Corp.

RCC is a diversified real estate finance company that qualifies as a real estate investment trust, or REIT, for federal income tax purposes. RCC's investment strategy focuses on CRE-related assets, and, to a lesser extent, commercial finance assets. RCC invests in the following asset classes: CRE-related assets such as whole loans, A-notes, B-notes, mezzanine loans and mortgage-related securities and commercial finance assets such as other asset-backed securities, bank loans, equipment leases and notes, trust preferred securities, debt tranches of CDOs and private equity investments principally issued by financial institutions.

RCC is externally managed by Resource Capital Manager, Inc., an indirect wholly-owned subsidiary of Resource America, Inc. (NASDAQ: REXI), a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the financial fund management, real estate, and commercial finance sectors.

For more information, please visit RCC's website at www.resourcecapitalcorp.com or contact investor relations at pkamdar@resourceamerica.com

Safe Harbor Statement

Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. RCC's actual results, performance or achievements could differ materially from those expressed or implied in this release. The risks and uncertainties associated with forward-looking statements contained in this release include those related to:

--  fluctuations in interest rates and related hedging activities;
--  capital markets conditions and the availability of financing;
--  defaults or bankruptcies by borrowers on RCC's loans or on loans
    underlying its investments;
--  adverse market trends which have affected and may continue to affect
    the value of real estate and other assets underlying RCC's investments;
--  increases in financing or administrative costs; and
--  general business and economic conditions that have impaired and may
    continue to impair the credit quality of borrowers and RCC's ability to
    originate loans.


For further information concerning these and other risks pertaining to the forward-looking statements contained in this release, and to the general risks to which RCC is subject, see Item 1A, "Risk Factors" included in its annual report on Form 10-K and in other of its public filings with the Securities and Exchange Commission.

RCC cautions you not to place undue reliance on any forward-looking statements contained in this release, which speak only as of the date of this release. All subsequent written and oral forward-looking statements attributable to RCC or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this release. Except to the extent required by applicable law or regulation, RCC undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this filing or to reflect the occurrence of unanticipated events.

The remainder of this release contains RCC's unaudited consolidated balance sheets, consolidated statements of operations and reconciliations of GAAP net (loss) income to estimated REIT taxable income and GAAP stockholders' equity to economic book value and supplemental information regarding RCC's CRE loan, bank loan and equipment leasing portfolios.

                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
             (in thousands, except share and per share data)
                                                  March 31,   December 31,
                                                     2009         2008
                                                 -----------  ------------
                                                 (Unaudited)
ASSETS
  Cash and cash equivalents                      $    10,668  $     14,583
  Restricted cash                                     60,273        60,394
  Investment securities available-for-sale,
   pledged as collateral, at fair value               15,376        22,466
  Investment securities available-for-sale, at
   fair value                                          4,950         6,794
  Loans, pledged as collateral and net of
   allowances of $46.9 million and $43.9 million   1,682,283     1,712,779
  Loans held for sale, at fair value                  15,968             -
  Direct financing leases and notes, pledged as
   collateral, net of allowance of $550,000 and
   $450,000 and net of unearned income                96,546       104,015
  Investments in unconsolidated entities               1,548         1,548
  Interest receivable                                  6,992         8,440
  Principal paydown receivables                           44           950
  Other assets                                         4,780         4,062
                                                 -----------  ------------
    Total assets                                 $ 1,899,428  $  1,936,031
                                                 ===========  ============
LIABILITIES
  Borrowings                                     $ 1,692,571  $  1,699,763
  Distribution payable                                 7,529         9,942
  Accrued interest expense                             2,737         4,712
  Derivatives, at fair value                          22,786        31,589
  Accounts payable and other liabilities               4,297         3,720
                                                 -----------  ------------
    Total liabilities                              1,729,920     1,749,726
                                                 -----------  ------------
STOCKHOLDERS' EQUITY
  Preferred stock, par value $0.001:
   100,000,000 shares authorized; no shares
   issued and outstanding                                  -             -
  Common stock, par value $0.001:  500,000,000
   shares authorized; 24,901,995 and 25,344,867
   shares issued and outstanding (including
   554,769 and 452,310 unvested restricted shares)        26            26
  Additional paid-in capital                         353,534       356,103
  Accumulated other comprehensive loss               (75,249)      (80,707)
  Distributions in excess of earnings               (108,803)      (89,117)
                                                 -----------  ------------
    Total stockholders' equity                       169,508       186,305
                                                 -----------  ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $ 1,899,428  $  1,936,031
                                                 -----------  ------------
                 RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF INCOME
              (in thousands, except share and per share data)
                               (Unaudited)
                                                      Three Months Ended
                                                          March 31,
                                                    ----------------------
                                                       2009        2008
                                                    ----------  ----------
REVENUES
Interest income:
Loans                                               $   23,160  $   32,439
Securities                                                 882       1,181
Leases                                                   2,233       1,990
Interest income - other                                    347       1,373
                                                    ----------  ----------
Total interest income                                   26,622      36,983
  Interest expense                                      13,877      23,148
                                                    ----------  ----------
  Net interest income                                   12,745      13,835
OPERATING EXPENSES
  Management fee expense - related party                 1,001       1,738
  Equity compensation expense - related party               88          81
  Professional services                                    964         792
  Insurance expense                                        172         128
  General and administrative                               405         355
  Income tax (benefit) expense                             (45)         29
                                                    ----------  ----------
  Total expenses                                         2,585       3,123
                                                    ----------  ----------
NET OPERATING INCOME                                    10,160      10,712
                                                    ----------  ----------
OTHER (EXPENSE) REVENUES
  Net realized and unrealized losses on sales of
   investments                                         (14,345)     (1,995)
  Other income                                              22          33
  Provision for loan and lease loss                     (7,989)     (1,137)
  Gain on the extinguishment of debt                         -       1,750
                                                    ----------  ----------
    Total other expenses, net                          (22,312)     (1,349)
                                                    ----------  ----------
NET (LOSS) INCOME                                   $  (12,152) $    9,363
                                                    ==========  ==========
NET (LOSS) INCOME PER SHARE - BASIC                 $    (0.50) $     0.38
                                                    ==========  ==========
NET (LOSS) INCOME PER SHARE - DILUTED               $    (0.50) $     0.38
                                                    ==========  ==========
WEIGHTED AVERAGE NUMBER OF SHARES
 OUTSTANDING - BASIC                                24,467,408  24,612,724
                                                    ==========  ==========
WEIGHTED AVERAGE NUMBER OF SHARES
 OUTSTANDING - DILUTED                              24,467,408  24,883,444
                                                    ==========  ==========
DIVIDENDS DECLARED PER SHARE                        $     0.30  $     0.41
                                                    ==========  ==========
SCHEDULE I
                 RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                 RECONCILIATION OF GAAP NET (LOSS) INCOME
                    TO ESTIMATED REIT TAXABLE INCOME (1)
                               (Unaudited)
RCC calculates estimated REIT taxable income, which is a non-GAAP financial
measure, according to the requirements of the Internal Revenue Code.  The
following table reconciles net (loss) income to estimated REIT taxable
income for the periods presented (in thousands, except per share data):
                                                       Three Months Ended
                                                            March 31,
                                                      --------------------
                                                        2009       2008
                                                      ---------  ---------
Net (loss) income - GAAP                              $ (12,152) $   9,363
Adjustments:
  Share-based compensation to related parties                17       (147)
  Capital loss carryover (utilization)/losses from the
   sale of securities                                     5,620      2,000
  Provisions for loan and lease losses unrealized         4,978         56
  Net book to tax adjustments for the Company's
   taxable foreign REIT subsidiaries                      7,590        775
  Other net book to tax adjustments                          45          8
                                                      ---------  ---------
Estimated REIT taxable income                         $   6,098  $  12,055
                                                      =========  =========
Estimated REIT taxable income per share - diluted (2) $    0.25  $    0.48
                                                      =========  =========
(1) RCC believes that a presentation of estimated REIT taxable income
    provides useful information to investors regarding its financial
    condition and results of operations as this measurement is used to
    determine the amount of dividends that RCC is required to declare to
    its stockholders in order to maintain its status as a REIT for federal
    income tax purposes.  Since RCC, as a REIT, expects to make
    distributions based on taxable income, RCC expects that its
    distributions may at times be more or less than its reported income.
    Total taxable income is the aggregate amount of taxable income
    generated by RCC and by its domestic and foreign taxable REIT
    subsidiaries.  Estimated REIT taxable income excludes the undistributed
    taxable income of RCC's domestic taxable REIT subsidiary, if any such
    income exists, which is not included in REIT taxable income until
    distributed to RCC.  There is no requirement that RCC's domestic
    taxable REIT subsidiary distribute its income to RCC.  Estimated REIT
    taxable income, however, includes the taxable income of RCC's foreign
    taxable REIT subsidiaries because RCC generally will be required to
    recognize and report their taxable income on a current basis.  Because
    not all companies use identical calculations, this presentation of
    estimated REIT taxable income may not be comparable to other
    similarly-titled measures of other companies.
(2) Denominator for the three months ended March 31, 2009 includes 242,464
    shares that were not included in the calculation of GAAP earnings per
    share because the effect would have been anti-dilutive due to RCC's
    net loss for the three months ended March 31, 2009.   The dilutive
    shares relate to restricted stock that has not yet vested at
    March 31, 2009.
SCHEDULE II
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
  RECONCILIATION OF GAAP STOCKHOLDERS' EQUITY TO ECONOMIC BOOK VALUE (1)
                   (in thousands, except per share data)
                               (Unaudited)
                                                                    As of
                                                                  March 31,
                                                                    2009
                                                                  ---------
Stockholders' equity - GAAP                                       $ 169,508
Add:
  Unrealized losses - CMBS portfolio                                 50,287
  Unrealized losses recognized in excess of value at risk -
   interest rate swaps (2)                                           22,829
                                                                  ---------
Economic book value                                               $ 242,624
                                                                  =========
Shares outstanding                                                   24,902
                                                                  ---------
Economic book value per share                                     $    9.74
                                                                  =========
(1) Management views economic book value, a non-GAAP measure, as a useful
    and appropriate supplement to GAAP stockholders' equity and book
    value per share.  The measure serves as an additional measure of
    RCC's value because it facilitates evaluation of RCC without the
    effects of unrealized losses on investments for which RCC expects to
    recover full par value at maturity and on interest rate swaps, which
    RCC intends to hold to maturity, in excess of RCC's value at risk.
    Unrealized losses recognized in RCC's financial statements, prepared
    in accordance with GAAP, that are in excess of RCC's maximum value at
    risk are added back to stockholders' equity in arriving at economic
    book value.  Economic book value should be reviewed in connection with
    GAAP stockholders' equity as set forth in RCC's consolidated balance
    sheets, to help analyze RCC's value to investors.  Economic book value
    is defined in various ways throughout the REIT industry.  Investors
    should consider these differences when comparing RCC's economic book
    value to that of other REITs.
(2) RCC adds back unrealized losses on interest rate swaps (cash flow
    hedges) that are associated with fixed-rate loans that have not been
    adjusted through stockholders' equity for market fluctuations.
SCHEDULE III
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
           SUMMARY OF RCC's CDO AND CLO PERFORMANCE STATISTICS
                              (in thousands)
                                (Unaudited)
Collateralized Debt Obligations - Distributions and Coverage Test Summary
                                           Annualized
                                           Interest
                               Cash        Coverage   Overcollateralization
                           Distributions    Cushion         Cushion
                         ----------------- ---------- ---------------------
                           Year   Quarter
                          Ended    Ended
                         December  March    March 31,
                            31,      31,    2009 (2)   March 31, Effective
                CDO Type 2008 (1)   2009      (3)      2009 (4)     Date
                -------- -------- -------- ---------- ---------- ----------
                         (actual) (actual)
Apidos CDO I         CLO $  8,957 $  1,423 $    6,303 $    3,874 $   17,176
Apidos CDO III       CLO $  6,725 $  2,067 $    3,799 $    6,694 $   11,269
Apidos Cinco
 CDO                 CLO $  9,470 $  2,342 $    3,276 $   12,912 $   17,774
RREF 2006-1      CRE CDO $ 10,658 $  3,048 $   13,353 $   24,107 $   24,941
RREF 2007-1      CRE CDO $ 13,297 $  4,358 $   21,827 $   20,604 $   26,032
(1) Distributions on retained equity interests in CDOs (comprised of note
    investment and preference share ownership); see Note 8 of RCC's Form
    10-K for the year ended December 31, 2008 for a more detailed
    discussion of RCC's equity interests.
(2) Interest coverage includes annualized amounts based on most recent
    trustee statements.
(3) Interest coverage cushion represents the amount by which annualized
    interest income expected exceeds the annualized amount payable on all
    classes of CDO notes senior to the Company's preference shares.
(4) Overcollateralization cushion represents the amount by which the
    collateral held by the CDO issuer exceeds the maximum amount required.
                 RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                         SUPPLEMENTAL INFORMATION
                             (in thousands)
                               (Unaudited)
Loan and Leasing Investment Statistics
The following table presents information on RCC's non-performing loans and
leases and related allowances as of March 31, 2009 and 2008 (based on
amortized costs):
                                                          As of March 31,
                                                        ------------------
                                                          2009      2008
                                                        --------  --------
Non-performing:
  Loans and leases                                      $ 67,561  $ 16,827
  Loans and leases as a percentage of total                  3.6%      0.9%
Allowance for loan and lease losses:
  Specific provision                                    $ 33,393  $  2,973
  General provision                                       14,008     4,024
                                                        --------  --------
  Total allowance for loan and leases                   $ 47,401  $  6,997
                                                        ========  ========
Allowance as a percentage of total loans and leases          2.6%      0.4%
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                         SUPPLEMENTAL INFORMATION
                              (in thousands)
                               (Unaudited)
The following table presents CRE loan portfolio statistics as of March 31,
2009 (based on par value):
Security type
Whole loans                                                           64.8%
Mezzanine loans                                                       24.9%
  B Notes                                                             10.3%
                                                                    ------
    Total                                                            100.0%
                                                                    ======
Collateral type
  Multifamily                                                         31.7%
  Hotel                                                               28.1%
  Office                                                              22.0%
  Retail                                                              12.7%
  Condo                                                                0.9%
  Flex                                                                 0.9%
  Self-storage                                                         0.8%
  Other                                                                2.9%
                                                                    ------
    Total                                                            100.0%
                                                                    ======
Collateral location
  Southern California                                                 22.8%
  Northern California                                                 17.3%
  New York                                                            11.6%
  Arizona                                                              7.5%
  Florida                                                              4.8%
  Texas                                                                4.3%
  Tennessee                                                            4.0%
  Washington                                                           3.9%
  Colorado                                                             3.9%
  Other                                                               19.9%
                                                                    ------
    Total                                                            100.0%
                                                                    ======
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                          SUPPLEMENTAL INFORMATION
                                (in thousands)
                                 (Unaudited)
The following table presents bank loan portfolio statistics by industry as
of March 31, 2009 (based on par value):
Industry type
  Healthcare, education and childcare                                 11.3%
  Diversified/conglomerate service                                     9.0%
  Broadcasting and entertainment                                       6.4%
  Printing and publishing                                              6.0%
  Chemicals, plastics and rubber                                       6.0%
  Retail stores                                                        5.0%
  Personal, food and miscellaneous services                            3.9%
  Hotels, motels, inns and gaming                                      3.8%
  Finance                                                              3.7%
  Automobiles                                                          3.7%
  Leisure, amusement, motion pictures, entertainment                   3.5%
  Other                                                               37.7%
                                                                     -----
    Total                                                            100.0%
                                                                     =====
The following table describes equipment leases and notes by industry as of
March 31, 2009 (based on par value):
Industry type
  Services                                                            54.1%
  Retail trade                                                        11.5%
  Transportation,communications, electric, gas and sanitary services  10.8%
  Manufacturing                                                        6.2%
  Construction                                                         4.7%
  Finance, insurance and real estate                                   4.1%
  Agriculture, forestry and fishing                                    3.5%
  Other                                                                5.1%
                                                                    ------
    Total                                                            100.0%
                                                                    ======

Contact:
David J. Bryant
Chief Financial Officer
Resource Capital Corp.
1845 Walnut Street
10th Floor
Philadelphia, Pa 19103
215/546-5005, 215/546-5388 (fax)


SOURCE: Resource Capital Corp.


Investor News
New York and Philadelphia Locations
712 Fifth Avenue
12th Floor
New York, NY 10019

1845 Walnut Street
18th Floor
Philadelphia, PA 19103
t. 212.506.3899



t. 215.546.5005
RSO (Common Stock)
ExchangeNYSE (US Dollar)
Price$9.35
Change (%) Stock is Down 0.14 (1.48%)
Volume257,908
Data as of 04/28/17 4:00 p.m. ET
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