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Resource Capital Corp. Reports Results for Third Quarter Ended September 30, 2009
NEW YORK, NY, Nov 02, 2009 (MARKETWIRE via COMTEX) -- Resource Capital Corp. (NYSE: RSO)

Third Quarter Highlights

--  Net Operating Income of $0.30 per share-diluted
--  Common stock cash dividend of $0.30 per share
--  Resource Capital Corp. repurchased $14.52 million of its corporate
    notes for $1.8 million, or at an 88% discount to par, for a gain of
    $12.7 million
--  Resource Capital Corp. had $82.8 million of liquidity at September 30,
    2009
--  Resource Capital Corp. had $75.2 million of loans repaid or settled


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 third quarter ended September 30, 2009.

Other Highlights

--  Net operating income for the three and nine months ended September 30,
    2009 was $7.2 million, or $0.30 per share-diluted and $27.0 million, or
    $1.11 per share-diluted, respectively, as compared to $10.2 million, or
    $0.41 per share-diluted and $31.3 million, or $1.26 per share-diluted, for
    the three and nine months ended September 30, 2008, respectively, a
    decrease of $3.0 million (29%) and $4.3 million (14%), respectively.

--  GAAP net income for the three months ended September 30, 2009 of
    $11.5 million, or $0.47 per share-diluted, as compared to GAAP net income
    for the three months ended September 30, 2008 of $88,000, or $0.00 per
    share-diluted. The three month period in 2009 includes provisions for loan
    and lease losses of $4.6 million, other-than-temporary impairment charges
    on investment securities held to maturity of $895,000 and net unrealized
    losses on bank loans held for sale of $1.7 million and a gain on the
    extinguishment of debt of $12.7 million, or a total of $0.23 per
    share-diluted. The three month period in 2008 includes provisions for loan
    and lease losses of $11.0 million and a gain on loan settlement of
    $574,000, or a total loss of ($0.42) per share-diluted.

--  GAAP net loss for the nine months ended September 30, 2009 of
    $5.8 million, or ($0.24) per share-diluted, as compared to GAAP net income
    for the nine months ended September 30, 2008 of $4.2 million, or $0.17 per
    share-diluted. The nine month period in 2009 includes provisions for loan
    and lease losses of $32.6 million, net unrealized losses on bank loans held
    for sale of $12.6 million, other-than-temporary impairment charges of
    $6.6 million and a gain on the extinguishment of debt of $19.6 million, or
    a total loss of ($1.32) per share-diluted. The nine month period in 2008
    includes provisions for loan and lease losses of $27.8 million, gain on a
    loan settlement of $574,000 and a gain on the extinguishment of debt of
    $1.8 million, or a total loss of ($1.02) per share-diluted.

--  REIT taxable income, a non-GAAP measure, for the three and nine months
    ended September 30, 2009 was $3.5 million, or $0.14 per share-diluted, and
    $14.9 million, or $0.61 per share-diluted, respectively, as compared to
    $9.4 million or $0.38 per share-diluted and $30.9 million or $1.24 per
    share-diluted for the three and nine months ended September 30, 2008,
    respectively, a decrease of $5.9 million (63%) and $16.0 million (52%),
    respectively.

--  RCC announced a dividend of $0.30 per common share for the quarter
    ended September 30, 2009, $7.5 million in the aggregate, paid on October
    27, 2009 to stockholders of record as of September 30, 2009.

--  Economic book value, a non-GAAP measure, was $9.47 per common share as
    of September 30, 2009.

--  GAAP book value was $6.80 per common share as of September 30, 2009.

--  RCC completely paid off its non-recourse repurchase facility funding
    CRE loans which had a balance of $3.3 million as of June 30, 2009.


Jonathan Cohen, CEO and President of RCC, commented, "Although these are very tough times in the real estate business, we are content overall with our portfolio. We have been able to (i) buy down our basis through purchases of our CDO bonds at significant discounts, (ii) purchase CMBS AAA rated bonds cheaply where we expect par recoveries, (iii) continue to pay a meaningful cash dividend, and (iv) position ourselves to build value in our portfolio. All this being said, we are continuing to asset manage our portfolio aggressively -- make long term smart decisions and continue to look for opportunistic situations."

Additional financial results for the third quarter ended September 30, 2009 and recent developments include:

General

--  RCC's net interest income decreased by $351,000, or (3%), to $13.3
    million for the three months ended September 30, 2009, as compared to
    $13.6 million for the same period in 2008.


Commercial Real Estate

--  RCC funded commitments on existing CRE loans on a gross basis of
    $4.1 million during the three months ended September 30, 2009.

--  RCC bought commercial mortgage-backed securities ("CMBS") of $34.5
    million par value, for a weighted average price of $58.42 during the third
    quarter ended September 30, 2009. The net discount of $14.3 million
    improved the collateralization on its CRE collateralized debt obligations
    ("CDO") and these purchases provide a yield of approximately 9.8%.


The following table summarizes RCC's CRE loan origination activities and future funding obligations, at par, for the three, nine and 12 months ended September 30, 2009 (in millions, except percentages):

            Three Months   Nine Months   12 Months    Floating   Weighted
               Ended         Ended         Ended      Weighted    Average
           September 30, September 30, September 30,   Average     Fixed
                2009          2009          2009      Spread (1)  Rate (2)
            ------------  ------------  ------------  ---------  ---------
Whole loans
 (3)        $        4.1  $       35.0  $       40.4       2.92%      7.92%
            ------------  ------------  ------------
New loans
 production          4.1          35.0          40.4
Sale of
 real
 estate
 loans                 -         (29.8)        (29.8)
Payoffs                -          (7.0)        (25.2)
Principal
 paydowns          (20.1)        (36.8)        (38.9)
            ------------  ------------  ------------
New loans,
 net (4)    $      (16.0) $      (38.6) $      (53.5)
            ============  ============  ============
(1) Represents the weighted average rate above the London Interbank Offered
    Rate ("LIBOR") on loans whose interest rate is based on LIBOR as of
    September 30, 2009.
(2) Reflects rates on RCC's portfolio balance as of September 30, 2009.
(3) Includes fundings of previous commitments on transitional loans of
    $4.1 million for the three months ended September 30, 2009,
    $11.3 million for the nine months ended September 30, 2009 and
    $16.8 million for the 12 months ended September 30, 2009.
(4) The basis of new net loans does not include provisions for losses on
    CRE loans of $4.2 million for the three months ended September 30,
    2009, $18.3 million for the nine months ended September 30, 2009 and
    $18.7 million for the 12 months ended September 30, 2009.

Commercial Finance

--  RCC's bank loan portfolio ended the third quarter with total
    investments of $910.6 million, at amortized cost, with a weighted-average
    spread of one-month and three-month LIBOR plus 2.59%. 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%. During the three months ended September 30, 2009, RCC received
    $55.1 million in bank loan paydowns and repayments. At September 30, 2009,
    RCC had $37.0 million of cash available for reinvestment in its three bank
    CLOs combined.


Book Value

As of September 30, 2009, RCC's GAAP book value per common share was $6.80. Total stockholders' equity was $169.4 million as of September 30, 2009 as compared to $186.3 million as of December 31, 2008. Total common shares outstanding were 24,895,409 as of September 30, 2009 as compared to 25,344,867 as of December 31, 2008. The net decrease in RCC's stockholders' equity of $16.9 million was primarily the result of increased provisions for loan and lease losses of $32.6 million, losses on RCC's bank loan portfolio of $12.6 million, combined with a decrease in the value of marked-to-market securities of $9.4 million, which was partially offset by an increase in the value of interest rate swaps of $16.2 million and a gain on the extinguishment of debt of $19.6 million.

As of September 30, 2009, RCC's economic book value per share, a non-GAAP measure, was $9.47. 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 II 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 September 30, 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):

                                                        Net carrying
                                         Net            amount less
                   Amortized  Dollar   carrying  Dollar  amortized  Dollar
                    cost (3)  price     amount   price     cost     price
                   ---------- ------  ---------- ------  ---------  ------
September 30, 2009
  Floating rate
CMBS-private
 placement         $   32,063 100.00% $   11,712  36.53% $ (20,351) -63.47%
B notes (1)            26,500 100.00%     26,314  99.30%      (186)  -0.70%
Mezzanine loans (1)   129,107 100.00%    128,091  99.21%    (1,016)  -0.79%
Whole loans (1)       410,107  99.94%    396,863  96.71%   (13,244)  -3.23%
Bank loans (2)        862,840  97.52%    781,251  88.30%   (81,589)  -9.22%
Bank loans held
 for sale (3)          15,103  87.06%     15,103  87.06%         -       -%
Asset-backed
 securities held-
 to-maturity (4)       32,624  91.23%     16,844  47.10%   (15,780) -44.13%
                   ----------         ----------         ---------
  Total floating
   rate             1,508,344  98.21%  1,376,178  89.60%  (132,166)  -8.61%
                   ----------         ----------         ---------
Fixed rate
CMBS - private
 placement             59,194  77.34%     28,887  37.74%   (30,307) -39.60%
B notes (1)            55,122 100.07%     54,736  99.36%      (386)  -0.71%
Mezzanine loans (1)    81,333  94.78%     68,275  79.57%   (13,058) -15.21%
Whole loans (1)        79,500  99.71%     78,940  99.00%      (560)  -0.71%
Equipment leases
 and loans (5)          3,105 100.03%      2,205  71.04%      (900) -28.99%
                   ----------         ----------         ---------
  Total fixed rate    278,254  92.67%    233,043  77.61%   (45,211) -15.06%
                   ----------         ----------         ---------
    Grand total    $1,786,598  97.30% $1,609,221  87.64% $(177,377)  -9.66%
                   ==========         ==========         =========
(1) Net carrying amount includes an allowance for loan losses of
    $28.4 million at September 30, 2009, allocated as follows: B notes
    ($0.5 million), mezzanine loans ($14.1 million) and whole loans
    ($13.8 million).
(2) The bank loan portfolio is carried at amortized cost less allowance for
    loan loss and was $831.9 million at September 30, 2009. Amount
    disclosed represents net realizable value at September 30, 2009, which
    includes $31.0 million allowance for loan losses at September 30, 2009.
(3) Bank loans held for sale are carried at fair value and, therefore,
    amortized cost is equal to fair value.
(4) ABS Securities held-to-maturity are carried at amortized cost less
    other-than-temporary impairment.
(5) Net carrying amount includes a $900,000 allowance for equipment leases
    and loans losses at September 30, 2009.

Liquidity

At October 30, 2009, after paying the third quarter dividend, RCC's liquidity of $77.5 million consists of two primary sources:

--  unrestricted cash and cash equivalents of $12.6 million and restricted
    cash of $5.4 million in margin call accounts; and

--  capital available for reinvestment in its five CDO entities of
    $59.5 million, of which $3.0 million is designated to finance future
    funding commitments on CRE loans.


Capital Allocation

As of September 30, 2009, RCC had allocated its equity capital among its targeted asset classes as follows: 72% in CRE loans, 27% in commercial bank loans and 1% in direct financing leases and notes.

The following schedules of reconciliations as of September 30, 2009 are included in this release:

--  Schedule I -- Reconciliation of GAAP Net Income (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 income (loss) to estimated REIT taxable income, GAAP stockholders' equity to economic book value, summary of RCC's CDO and CLO performance statistics and supplemental information regarding RCC's CRE loan and bank loan portfolios.

                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                    (in thousands, except share data)
                                              September 30,  December 31,
                                                  2009           2008
                                              -------------  -------------
                                               (Unaudited)
ASSETS
  Cash and cash equivalents                   $      15,828  $      14,583
  Restricted cash                                    66,997         60,394
  Investment securities available-for-sale,
   pledged as collateral, at fair value              36,311         22,466
  Investment securities available-for-sale,
   at fair value                                      4,288          6,794
  Investment securities held to maturity,
   pledged as collateral                             32,624         28,157
  Loans, pledged as collateral and net of
   allowances of $59.4 million and
   $43.9 million                                  1,585,075      1,684,622
  Loans held for sale                                15,103              -
  Direct financing leases and notes, pledged
   as collateral, net of allowance of
   $900,000 and $450,000 and net of unearned
   income                                             2,205        104,015
  Investments in unconsolidated entities              1,548          1,548
  Interest receivable                                 6,235          8,440
  Other assets                                        2,901          5,012
                                              -------------  -------------
    Total assets                              $   1,769,115  $   1,936,031
                                              =============  =============
LIABILITIES
  Borrowings                                  $   1,567,919  $   1,699,763
  Distribution payable                                7,509          9,942
  Accrued interest expense                            2,018          4,712
  Derivatives, at fair value                         15,658         31,589
  Accounts payable and other liabilities              6,639          3,720
                                              -------------  -------------
    Total liabilities                             1,599,743      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;
   24,895,409 and 25,344,867 shares issued
   and outstanding (including 464,136 and
   452,310 unvested restricted shares)                   25             26
  Additional paid-in capital                        355,103        356,103
  Accumulated other comprehensive loss              (68,266)       (80,707)
  Distributions in excess of earnings              (117,490)       (89,117)
                                              -------------  -------------
    Total stockholders' equity                      169,372        186,305
                                              -------------  -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $   1,769,115  $   1,936,031
                                              =============  =============
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
              (in thousands, except share and per share data)
                                (Unaudited)
                              Three Months Ended      Nine Months Ended
                                September 30,           September 30,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
REVENUES
  Net interest income:
    Loans                   $   20,207  $   28,578  $   64,333  $   88,885
    Securities                   1,906       1,387       4,674       4,544
    Leases                          11       1,995       4,337       5,946
    Interest income - other        377         352       1,053       2,178
                            ----------  ----------  ----------  ----------
      Total interest income     22,501      32,312      74,397     101,553
    Interest expense             9,203      18,664      35,828      60,736
                            ----------  ----------  ----------  ----------
      Net interest income       13,298      13,648      38,569      40,817
                            ----------  ----------  ----------  ----------
OPERATING EXPENSES
  Management fees - related
   party                         3,954       1,915       5,880       4,824
  Equity compensation -
   related party                   721         157       1,074         779
  Professional services            739         773       2,792       2,229
  Insurance expenses               220         171         609         469
  General and
   administrative                  410         421       1,256       1,119
  Income tax expense
   (benefit)                         6         (33)          5         134
                            ----------  ----------  ----------  ----------
    Total expenses               6,050       3,404      11,616       9,554
                            ----------  ----------  ----------  ----------
NET OPERATING INCOME             7,248      10,244      26,953      31,263
                            ----------  ----------  ----------  ----------
OTHER (EXPENSE) INCOME
  Net realized and
   unrealized (losses)
   gains on investments         (1,517)        242     (11,805)     (1,651)
  Asset impairments               (895)          -      (6,560)          -
  Other (expense) income        (1,417)         27      (1,375)         86
  Provision for loan and
   lease losses                 (4,632)    (10,999)    (32,605)    (27,828)
  Gain on the
   extinguishment of debt       12,741           -      19,641       1,750
  Gain on the settlement of
   a loan                            -         574           -         574
                            ----------  ----------  ----------  ----------
      Total other revenues
       (expenses)                4,280     (10,156)    (32,704)    (27,069)
                            ----------  ----------  ----------  ----------
NET INCOME (LOSS)           $   11,528  $       88  $   (5,751) $    4,194
                            ==========  ==========  ==========  ==========
NET INCOME (LOSS) PER SHARE
 - BASIC                    $     0.48  $     0.00  $    (0.24) $     0.17
                            ==========  ==========  ==========  ==========
NET INCOME (LOSS) PER SHARE
 - DILUTED                  $     0.47  $     0.00  $    (0.24) $     0.17
                            ==========  ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER OF
 SHARES OUTSTANDING -
 BASIC                      24,112,240  24,814,789  24,321,007  24,719,889
                            ==========  ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER OF
 SHARES OUTSTANDING -
 DILUTED                    24,376,681  25,054,296  24,321,007  24,889,965
                            ==========  ==========  ==========  ==========
DIVIDENDS DECLARED PER
 SHARE                      $     0.30  $     0.39  $     0.90  $     1.21
                            ==========  ==========  ==========  ==========
SCHEDULE I
                 RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                 RECONCILIATION OF GAAP NET INCOME (LOSS)
                   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 income (loss) to estimated REIT taxable
income for the periods presented (in thousands, except per share data):
                                    Three Months Ended  Nine Months Ended
                                      September 30,       September 30,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------
Net income (loss) - GAAP            $ 11,528  $     88  $ (5,751) $  4,194
  Taxable REIT subsidiary's loss         653         -     1,853         -
                                    --------  --------  --------  --------
    Adjusted net income (loss)        12,181        88    (3,898)    4,194
Adjustments:
  Share-based compensation to
   related parties                       631      (190)      660      (729)
  Capital loss carryover
   (utilization)/losses from the
   sale of securities                      -         -     4,978     2,000
  Provision for loan and lease
   losses unrealized                   4,240     2,761    13,340    14,446
  Asset impairments                      895         -     6,560         -
  Deferral of extinguishment of
   debt income                       (12,741)        -   (12,741)        -
  Net book to tax adjustments for
   the Company's taxable foreign
   REIT subsidiaries                  (3,134)    7,034     4,601    11,271
  Other net book to tax adjustments    1,419      (281)    1,387      (272)
                                    --------  --------  --------  --------
Estimated REIT taxable income       $  3,491  $  9,412  $ 14,887  $ 30,910
                                    ========  ========  ========  ========
Amounts per share - diluted         $   0.14  $   0.38  $   0.61  $   1.24
                                    ========  ========  ========  ========
(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 it uses this measurement to
    determine the amount of dividends that it 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 earnings, RCC expects that its
    distributions may at times be more or less than its reported GAAP
    earnings. 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 subsidary ("TRS"), 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 TRS
    distribute its earnings to RCC. Estimated REIT taxable income, however,
    includes the taxable income of RCC's foreign TRSs because RCC will
    generally 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 nine months ended September 30, 2009 includes
    88,147 common 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 nine months ended September 30, 2009. The
    dilutive shares relate to restricted stock that has not yet vested at
    September 30, 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
                                                         September 30, 2009
                                                         ------------------
Stockholders' equity - GAAP                              $          169,372
Add:
  Unrealized losses - CMBS portfolio                                 50,657
  Unrealized losses recognized in excess of value at
   risk - interest rate swaps (2)                                    15,728
                                                         ------------------
Economic book value                                      $          235,757
                                                         ==================
Shares outstanding                                                   24,895
                                                         ------------------
Economic book value per share                            $             9.47
                                                         ==================
(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
                                            Coverage  Overcollateralization
                       Cash Distributions   Cushion          Cushion
                      -------------------- ---------- ---------------------
                                Nine Months
                     Year Ended    Ended
                      December  September  September  September   Initial
                         31,        30,        30,        30,   Measurement
            CDO Type   2008(1)     2009    2009(2)(3)   2009(4)     Date
            --------- --------- ---------- ---------- ---------- ----------
                       (actual)  (actual)
Apidos CDO
 I          CLO       $   8,957 $    4,914 $    6,189 $    3,845 $   17,136
Apidos CDO
 III        CLO       $   6,725 $    4,876 $    2,906 $    3,124 $   11,269
Apidos
 Cinco CDO  CLO       $   9,470 $    5,816 $    3,540 $   14,915 $   17,774
RREF 2006-1 CRE CDO   $  13,245 $   10,243 $   11,728 $   27,518 $   24,941
RREF 2007-1 CRE CDO   $  18,149 $   15,596 $   17,714 $   27,472 $   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 the 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, except percentages)
                                (Unaudited)
Loans and Leasing Investment Statistics
The following table presents information on RCC's impaired loans and
leases and related allowances as of September 30, 2009 and 2008
(based on par value):
                                                      As of September 30,
                                                      --------------------
                                                        2009       2008
                                                      ---------  ---------
Impaired:
  Loans and leases                                    $ 124,648  $  18,668
  Impaired loans and leases to total loans and leases       6.9%       1.0%
Allowance for loan and lease losses:
  Specific provision                                  $  43,183  $  19,728
  General provision                                      17,151     11,029
                                                      ---------  ---------
  Total allowance for loans and leases                $  60,334  $  30,757
                                                      =========  =========
  Allowance for loan and lease losses to total loans
   and leases                                               3.6%       1.6%
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                         SUPPLEMENTAL INFORMATION
                                (Unaudited)
     The following table presents CRE loan portfolio statistics as of
                 September 30, 2009 (based on par value):
Security type
  Whole loans                                                         63.7%
  Mezzanine loans                                                     25.7%
  B Notes                                                             10.6%
                                                                     -----
    Total                                                            100.0%
                                                                     =====
Collateral type
  Hotel                                                               29.4%
  Multifamily                                                         29.3%
  Office                                                              22.7%
  Retail                                                              12.7%
  Condo                                                                1.0%
  Flex                                                                 0.9%
  Self-storage                                                         0.8%
  Other                                                                3.2%
                                                                     -----
    Total                                                            100.0%
                                                                     =====
Collateral location
  Southern California                                                 23.9%
  Northern California                                                 14.8%
  New York                                                            12.1%
  Arizona                                                              7.8%
  Texas                                                                5.8%
  Florida                                                              4.4%
  Tennessee                                                            4.2%
  Washington                                                           4.1%
  Colorado                                                             4.0%
  Other                                                               18.9%
                                                                     -----
    Total                                                            100.0%
                                                                     =====
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                         SUPPLEMENTAL INFORMATION
                                (Unaudited)
  The following table presents bank loan portfolio statistics by industry
              as of September 30, 2009 (based on par value):
Industry type
  Healthcare, education and childcare                                 12.6%
  Diversified/conglomerate service                                     8.9%
  Broadcasting and entertainment                                       7.8%
  Printing and publishing                                              6.6%
  Chemicals, plastics and rubber                                       5.7%
  Retail stores                                                        4.7%
  Automobiles                                                          4.0%
  Finance                                                              3.8%
  Telecommunications                                                   3.8%
  CDO                                                                  3.7%
  Other                                                               38.4%
                                                                     -----
    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$9.26
Change (%)0.00 (0.00%)
Volume150,929
Data as of 04/24/17 12:46 p.m. ET
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