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Resource Capital Corp. Reports Results for Three and Six Months Ended June 30, 2010

NEW YORK, NY, Aug 02, 2010 (MARKETWIRE via COMTEX) --

Resource Capital Corp. (NYSE: RSO)

Highlights

--  Net income of $0.30 and $0.36 per share-diluted, respectively.
--  REIT taxable income of $0.30 and $0.55 per share-diluted, respectively.
--  Common stock cash dividend of $0.25 per share.
--  $147.1 million of total cash, including restricted cash, and no
    short-term borrowings at June 30, 2010.
--  $170.3 million of total loans receivable repaid and settled.
--  Repurchased $36.1 million of its CDO notes for $19.7 million, a 45.5%
    discount to par, for gains of $16.4 million during the second quarter
    ended June 30, 2010.

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, commercial mortgage-backed securities ("CMBS"), and commercial finance assets, reported results for the three and six months ended June 30, 2010.

--  Net income for the three and six months ended June 30, 2010 was $13.4
    million, or $0.30 per share-diluted and $14.8 million, or $0.36 per
    share-diluted, respectively, as compared to net loss for the three and
    six months ended June 30, 2009 of $5.1 million, or $(0.21) per share
    and $17.3 million, or $(0.71) per share, respectively.
--  REIT taxable income, a non-GAAP measure, for the three and six months
    ended June 30, 2010, was $13.4 million, or $0.30 per share-diluted, and
    $22.7 million, or $0.55 per share-diluted, respectively, as compared to
    $5.3 million, or $0.21 per share-diluted, and $11.4 million, or $0.46
    per share-diluted for the three and six months ended June 30, 2009,
    respectively, increases of $8.1 million (152%) and $11.3 million
    (99%), respectively.
--  On June 10, 2010, the Company declared a quarterly distribution of
    $0.25 per share of common stock, $12.8 million in the aggregate, which
    was paid on July 27, 2010 to stockholders of record on June 30, 2010.
--  Book value was $5.92 per common share as of June 30, 2010.
--  During the three months ended June 30, 2010, the Company realized gains
    of $2.5 million from the trading of structured notes, a trading venture
    with Resource Capital Markets, a related party, begun in June 2010,
    with an intial seed investment of approximately $5.0 million.
--  During the three months ended June 30, 2010, the Company sold for
    approximately $1.4 million its interest in a real estate joint venture
    acquired in 2009 with a cost basis to the Company of $632,000,
    resulting in an estimated gain of $753,000.
--  Subsequent to June 30th, the Company agreed to sell two loans, each for
    approximately 85% of the Company's amortized cost, which sales resulted
    in an additional $7.0 million charge to the provision for loan losses
    for the quarter ended June 30, 2010 (representing 89% of the total of
    $7.9 million for the quarter).  RCC was motivated to sell these loans,
    which were a B-note secured by an office building and a mezzanine loan
    to the owner of a hotel portfolio with a carrying value of $23.3
    million and $20.0 million, respectively, in order to reduce its
    exposure to loans other than whole loans.  The proceeds for the B-note
    are included in the CDO cash available for reinvestment (restricted
    cash as of July 31, 2010 in the liquidity update included in this
    release). The sale of the mezzanine position is expected to close in
    August 2010 and will add to CDO cash available for reinvestment upon
    settlement.
--  In a recent development, on July 14, 2010, RCC repurchased $20.0
    million par value of its CDO notes for $13.8 million, a 31.3% discount
    to par, for an estimated gain of $6.3 million, or approximately $0.12
    per share based on outstanding shares as of June 30, 2010.

Jonathan Cohen, CEO and President of Resource Capital Corp., commented, "Our second quarter results reflect our ability to continue to execute on our plan, even in a difficult economic environment. As we recently reported, we are making focused new investments of relatively small amounts in different areas which allows us to pick only the best risk-adjusted investments. As we make new investments, we continue our careful management of our existing portfolios and opportunistically repurchase our debt at discounted prices. We remain on track to distribute $0.25 per quarter for the rest of this year."

Additional financial results for the second quarter ended June 30, 2010:

General

--  RCC's net interest income increased by $3.0 million, or 24.0%, to $15.5
    million for the second quarter ended June 30, 2010, from $12.5 million
    for the same period in 2009.

Commercial Real Estate

--  RCC funded commitments on existing CRE loans, on a gross basis, of $1.5
    million during the second quarter ended June 30, 2010.
--  During the three months ended June 30, 2010, RCC bought through its CRE
    CDOs CMBS of $7.5 million par value at a discount to par of 27.6%.  The
    net discount of $2.1 million improved the asset collateralization in
    its CRE CDOs and these purchases provided a weighted average annual
    yield of approximately 7.9%.
--  During the six months ended June 30, 2010, RCC bought through its CRE
    CDOs CMBS of $15.2 million par value at a discount to par of 31.7%.
    The net discount of $4.8 million improved the asset collateralization
    in its CRE CDOs and these purchases provided a weighted average annual
    yield of approximately 8.3%.

The following table summarizes RCC's CRE loan repayment and orgination activities (including future funding obligations), at par, for the three, six and 12 months ended June 30, 2010 (in millions, except percentages) (unaudited):

                      Three       Six
                      Months     Months   12 Months    Floating   Weighted
                      Ended      Ended      Ended      Weighted   Average
                     June 30,   June 30,   June 30,    Average     Fixed
                       2010       2010       2010     Spread (1)  Rate (2)
                     ---------  ---------  ---------  ---------  ---------
Whole loans (3)      $     1.5  $     3.0  $    10.9       2.56%     8.155%
                     ---------  ---------  ---------
New loans production       1.5        3.0       10.9
Sale of real estate
 loans                       -          -      (29.8)
Payoffs                      -          -      (15.0)
Principal paydowns       (11.4)     (39.9)     (64.5)
Whole loans, future
 funding
 obligations                 -          -          -
                     ---------  ---------  ---------
Net loans (4)        $    (9.9) $   (36.9) $   (98.4)
                     =========  =========  =========
(1) Represents the weighted average rate above the London Interbank Offered
    Rate ("LIBOR") on loans whose interest rate is based on LIBOR as of
    June 30, 2010.
(2) Reflects rates on RCC's portfolio balance as of June 30, 2010.
(3) Consists of fundings of loan commitments.
(4) The basis of new net loans does not include provisions for losses on
    CRE loans of $8.5 million for the three months ended June 30, 2010,
    $24.0 million for the six months ended June 30, 2010 and $41.8 million
    for the 12 months ended June 30, 2010.

Commercial Finance

--  RCC's bank loan portfolio, including asset-backed securities ("ABS")
    held-to-maturity, ended the second quarter with total investments of
    $914.0 million, at amortized cost, with a weighted-average spread of
    one-month and three-month LIBOR plus 2.70%.  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% (0.94% at June 30, 2010).
--  During the three months ended June 30, 2010, RCC bought bank loans
    through its CLOs par value of $93.6 million at a discount to par of
    3.4%. The net discount of $3.1 million improved the asset
    collateralization in its CLOs and these purchases provided a weighted
    average annual yield of approximately 4.1%.
--  During the six months ended June 30, 2010, RCC bought bank loans
    through its CLOs par value of $167.0 million at a discount to par of
    5.0%. The net discount of $8.3 million improved the asset
    collateralization in its CLOs and these purchases provided a weighted
    average annual yield of approximately 4.0%.
--  During the three months ended June 30, 2010, the Company expanded its
    equipment leasing and loan portfolio by the acquisition, through its
    taxable REIT subsidiary, of a $118 million pool of equipment leases and
    loans from an affiliate of its manager at a cost of $14 million plus
    the assumption of $104 million of non-recourse, term notes secured by
    the leases and loans.  Guggenheim Securities, Inc. was the arranger and
    initial purchaser of the notes.  The Company believes it will realize
    in excess of a 17% GAAP return on equity after all credit provisions.
    The portfolio is predominantly comprised of small ticket business
    equipment loans.

Book Value

As of June 30, 2010, RCC's book value per common share was $5.92. Total stockholders' equity was $301.8 million as of June 30, 2010 as compared to $228.8 million as of December 31, 2009. Total common shares outstanding were 50,968,334 as of June 30, 2010 as compared to 36,545,737 as of December 31, 2009. The increase in RCC's stockholders' equity of $73.0 million was substantially the result of its $42.8 million common stock offering in May 2010 combined with $32.5 million of common stock sales through the Company's Dividend Reinvestment Plan ("DRIP") during the six months ended June 30, 2010.

Investment Portfolio

The table below summarizes the amortized cost and net carrying amount of RCC's investment portfolio as of June 30, 2010, 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
                                                        amount less
                Amortized  Dollar  Net carrying  Dollar  amortized  Dollar
                 cost (3)   price     amount      price    cost      price
                ---------- -------  ----------   ------- ---------  -------
 June 30, 2010
 Floating rate
CMBS            $ 31,133    100.00% $    8,790    28.23% $ (22,343) -71.77%
Structured
 notes               4,985   49.85%      4,985    49.85%         -       -%
Other ABS                -       -%         24     0.29%        24    0.29%
B notes (1)         26,500  100.00%     26,298    99.24%      (202)  -0.76%
Mezzanine
 loans (1)         104,048  100.00%    103,255    99.24%      (793)  -0.76%
Whole loans (1)    446,271   99.99%    428,123    95.92%   (18,148)  -4.07%
Bank loans         881,659   96.76%    836,794(2) 91.84%   (44,865)  -4.92%
Loans held for
 sale (3)           17,938   98.41%     17,938    98.41%         -       -%
ABS held-to-
 maturity (4)       31,446   89.28%     22,272    63.24%    (9,174) -26.04%
                ----------          ----------           ---------
  Total floating
   rate          1,543,980   97.05%  1,448,479    91.04%   (95,501)  -6.01%
                ----------          ----------           ---------
    Fixed rate
CMBS                64,778   61.18%     46,715    44.12%   (18,063) -17.06%
B notes (1)         31,053   99.62%     30,817    98.86%      (236)  -0.76%
Mezzanine
 loans (1)          58,625  100.26%     51,447    87.99%    (7,178) -12.27%
Whole loans (1)      2,403   97.60%      1,403    56.99%    (1,000) -40.61%
Loans held for
 sale (3)           19,825   84.37%     19,825    84.37%         -       -%
Leases and
 loans (5)         118,578  100.00%    118,528    99.96%       (50)  -0.04%
                ----------          ----------           ---------
  Total fixed
   rate            295,262   86.83%    268,735    79.03%   (26,527)  -7.80%
                ----------          ----------           ---------
    Grand total $1,839,242   95.25% $1,717,214    88.93% $(122,028)  -6.32%
                ==========          ==========           =========
(1) Net carrying amount includes an allowance for loan losses of
    $27.6 million at June 30, 2010, allocated as follows: B notes
    ($0.4 million), mezzanine loans ($8.0 million) and whole loans
    ($19.2 million).
(2) The bank loan portfolio is carried at amortized cost less allowance for
    loan loss and was $870.4 million at June 30, 2010. The amount disclosed
    represents net realizable value at June 30, 2010, which includes an
    $11.3 million allowance for loan losses at June 30, 2010.
(3) Loans held for sale are carried at lower of cost or market. Amortized
    cost is equal to fair value.
(4) Asset-backed securities held-to-maturity are carried at amortized cost
    less any other-than-temporary impairment charges.
(5) Net carrying amount includes a $50,000 allowance for lease and loan
    losses at June 30, 2010.

Liquidity

At July 31, 2010, after disbursing the second quarter 2010 dividend, RCC's liquidity of $138.9 million consists of three primary sources:

--  unrestricted cash and cash equivalents of $20.5 million and restricted
    cash of $3.5 million in margin call accounts;
--  capital available for reinvestment in its five CDO entities of $109.6
    million, of which $1.7 million is designated to finance future funding
    commitments on CRE loans; and
--  capital available for reinvestment in its equipment backed securitized
    notes of $5.3 million.

Capital Allocation

As of June 30, 2010, RCC had allocated its invested equity capital among its targeted asset classes as follows: 78% in CRE loans, 19% in commercial bank loans, 2% in leases and loans and 1% in structured notes.

Supplemental Information

The following schedules of reconciliations or supplemental information as of June 30, 2010 are included at the end of this release:

--  Schedule I - Reconciliation of GAAP Net Income (Loss) to Estimated REIT
    Taxable Income; and
--  Schedule II - Summary of CDO and CLO Performance Statistics.

About Resource Capital Corp.

RCC is a diversified real estate finance company that is organized and conducts its operations to qualify 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, leases and loans, 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 real estate, commercial finance and financial fund management 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 may 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, unaudited consolidated statements of operations, a reconciliation of GAAP net income (loss) to estimated REIT taxable income and a summary of 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 and per share data)
                                                   June 30,    December 31,
                                                     2010          2009
                                                 -----------   -----------
                                                 (Unaudited)
ASSETS
  Cash and cash equivalents                      $    38,505   $    51,991
  Restricted cash                                    108,613        85,125
  Investment securities available-for-sale,
   pledged as collateral, at fair value               48,424        39,304
  Investment securities available-for-sale, at
   fair value                                          7,105         5,238
  Investment securities, trading                       4,985             -
  Investment securities held-to-maturity, pledged
   as collateral                                      31,446        31,401
  Loans, pledged as collateral and net of
   allowances of $38.9 million and $47.1 million   1,511,695     1,558,687
  Loans held for sale                                 37,763         8,050
  Leases and loans, net of allowances of $50,000
   and $1.1 million and net of unearned income       118,528           927
  Loans receivable - related party                     9,999             -
  Investments in unconsolidated entities               5,111         3,605
  Interest receivable                                  5,587         5,754
  Other assets                                         6,610         3,878
                                                 -----------   -----------
    Total assets                                 $ 1,934,371   $ 1,793,960
                                                 ===========   ===========
LIABILITIES
  Borrowings                                     $ 1,592,397   $ 1,536,500
  Distribution payable                                12,775         9,170
  Accrued interest expense                             1,746         1,516
  Derivatives, at fair value                          15,643        12,767
  Accounts payable and other liabilities               9,997         5,177
                                                 -----------   -----------
    Total liabilities                              1,632,558     1,565,130
                                                 -----------   -----------
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; 50,968,334 and 36,545,737
   shares issued and outstanding (including
   559,459 and 437,319 unvested restricted shares)        51            36
  Additional paid-in capital                         481,897       405,517
  Accumulated other comprehensive loss               (57,506)      (62,154)
  Distributions in excess of earnings               (176,065)     (114,569)
  Retained earnings                                   53,436             -
                                                 -----------   -----------
    Total stockholders' equity                       301,813       228,830
                                                 -----------   -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $ 1,934,371   $ 1,793,960
                                                 ===========   ===========
                 RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
             (in thousands, except share and per share data)
                              (Unaudited)
                             Three Months Ended       Six Months Ended
                                   June 30,                June 30,
                            ----------------------  ----------------------
                               2010        2009        2010        2009
                            ----------  ----------  ----------  ----------
REVENUES
  Net interest income:
    Loans                   $   19,103  $   21,507  $   37,488  $   44,128
    Securities                   2,895       1,345       5,769       2,766
    Leases                       1,928       2,093       2,163       4,326
    Interest income - other        534         329         749         676
                            ----------  ----------  ----------  ----------
      Total interest income     24,460      25,274      46,169      51,896
    Interest expense             8,929      12,748      16,866      26,625
                            ----------  ----------  ----------  ----------
      Net interest income       15,531      12,526      29,303      25,271
OPERATING EXPENSES
  Management fees - related
   party                         4,288         925       5,440       1,926
  Equity compensation -
   related party                   199         265         923         353
  Professional services            876       1,089       1,695       2,053
  Insurance expenses               180         217         392         389
  Depreciation on operating
   leases                          685           -         685           -
  General and administrative       862         462       1,507         867
  Income tax expense             1,132          23       1,237         (22)
                            ----------  ----------  ----------  ----------
    Total expenses               8,222       2,981      11,879       5,566
                            ----------  ----------  ----------  ----------
NET OPERATING INCOME             7,309       9,545      17,424      19,705
                            ----------  ----------  ----------  ----------
OTHER REVENUE (EXPENSE)
  Impairment losses on
   investment securities        (8,896)     (2,261)     (7,584)    (16,925)
  Recognized in other
   comprehensive loss           (2,838)     (2,216)     (1,526)    (11,260)
                            ----------  ----------  ----------  ----------
  Net impairment losses
   recognized in earrings       (6,058)        (45)     (6,058)     (5,665)
  Net realized gains on loans
   and investments               2,718         465       2,864         701
  Provision for loan and
   lease losses                 (7,897)    (22,012)    (23,268)    (38,962)
  Gain on the extinguishment
   of debt                      16,407       6,900      23,035       6,900
  Other income                     883          20         771          42
                            ----------  ----------  ----------  ----------
    Total other revenue
     (expense)                   6,053     (14,672)     (2,656)    (36,984)
                            ----------  ----------  ----------  ----------
NET INCOME (LOSS)           $   13,362  $   (5,127) $   14,768  $  (17,279)
                            ==========  ==========  ==========  ==========
NET  INCOME (LOSS) PER
 SHARE - BASIC              $     0.30  $    (0.21) $     0.36  $    (0.71)
                            ==========  ==========  ==========  ==========
NET INCOME (LOSS) PER
 SHARE - DILUTED            $     0.30  $    (0.21) $     0.36  $    (0.71)
                            ==========  ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING -
 BASIC                      44,424,281  24,369,581  41,223,517  24,427,452
                            ==========  ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING -
 DILUTED                    44,724,087  24,369,581  41,555,127  24,427,452
                            ==========  ==========  ==========  ==========
DIVIDENDS DECLARED PER
 SHARE                      $     0.25  $     0.30  $     0.50  $     0.60
                            ==========  ==========  ==========  ==========
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 GAAP net income (loss) to estimated REIT taxable
income for the periods presented (in thousands, except per share data):
                                 Three Months Ended     Six Months Ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2010       2009       2010       2009
                                ---------  ---------  ---------  ---------
Net income (loss) - GAAP        $  13,362  $  (5,127) $  14,768  $ (17,279)
  Taxable REIT subsidiary's
   (income) loss                   (1,345)     1,200     (1,470)     1,200
                                ---------  ---------  ---------  ---------
    Adjusted net income (loss)     12,017     (3,927)    13,298    (16,079)
Adjustments:
  Share-based compensation to
   related parties                    202         12       (114)        29
  Capital loss carryover
   (utilization)/losses from
   the sale of securities               -       (642)         -      4,978
  Provisions for loan and lease
   losses unrealized                8,529      9,742     24,029      9,100
  Asset Impairments                 6,058         45      6,058      5,665
  Equity in income of Real
   Estate Joint Venture            (4,891)         -     (4,891)         -
  Deferral of extinguishment of
   debt income                     (8,307)         -     (8,307)         -
  Net book to tax adjustments
   for our taxable foreign REIT
   subsidiaries                       261        145     (6,117)     7,735
  Subpart F income limitation        (322)         -          -          -
  Other net book to tax
   adjustments                       (188)       (77)    (1,271)       (32)
                                ---------  ---------  ---------  ---------
Estimated REIT taxable income   $  13,359  $   5,298  $  22,685  $  11,396
                                =========  =========  =========  =========
Amounts per share - diluted     $    0.30  $    0.21  $    0.55  $    0.46
                                =========  =========  =========  =========
(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 GAAP net
    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 (if any) of RCC's domestic taxable REIT subsidiary,
    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) U.S. shareholders of controlled foreign corporations are required to
    include their share of such corporations' income on a current basis;
    however, losses sustained by such corporations do not offset income of
    their U.S. shareholders on a current basis.
SCHEDULE II
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
              SUMMARY OF CDO AND CLO PERFORMANCE STATISTICS
                              (in thousands)
                                (Unaudited)
Collateralized Debt Obligations - Distributions and Coverage Test Summary
                                           Annualized
                                           Interest
                                           Coverage   Overcollateralization
                      Cash Distributions    Cushion         Cushion
                     --------------------- ---------- ---------------------
                                 Six Months                        As of
                     Year Ended    Ended                As of     Initial
                    December 31,  June 30,  June 30,   June 30, Measurement
   Name     CDO Type  2009 (1)   2010 (1)  2010(2)(3)  2010 (4)     Date
----------   ------- ---------- ---------- ---------- ---------- ----------
                       (actual)   (actual)
Apidos CDO I CLO     $    6,643 $    3,837 $    1,898 $   11,805 $   17,136
Apidos CDO
 III         CLO     $    6,390 $    3,066 $    3,099 $    6,773 $   11,269
Apidos Cinco
 CDO         CLO     $    7,553 $    3,714 $    3,844 $   18,457 $   17,774
RREF 2006-1  CRE CDO $   13,222 $    5,195 $    7,823 $   11,295 $   24,941
RREF 2007-1  CRE CDO $   20,536 $    7,947 $   13,420 $   22,454 $   26,032
(1) Distributions on retained equity interests in CDOs (comprised of note
    investment and preference share ownership).
(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)
Loan and Leasing Investment Statistics
The following table presents information on RCC's impaired loans and leases
and related allowances as of June 30, 2010 and 2009 (based on amortized
cost):
                                                         As of June 30,
                                                      --------------------
                                                        2010       2009
                                                      ---------  ---------
Impaired:
  Loans and leases                                    $ 112,567  $ 158,246
  Loans and leases as a percentage of total                 6.5%       9.2%
Allowance for loan and lease losses:
  Specific allowance                                  $  27,938  $  43,510
  General allowance                                      10,976     16,162
                                                      ---------  ---------
  Total allowance for loans and leases                $  38,914  $  59,672
                                                      =========  =========
  Allowance as a percentage of total loans and leases       2.2%       3.5%
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
               SUPPLEMENTAL INFORMATION, A NON-GAAP MEASURE
                                (Unaudited)
The following table presents commercial real estate loan portfolio
statistics as of June 30, 2010 (based on par value):
Security type:
  Whole loans                                                         63.0%
  Mezzanine loans                                                     25.6%
  B Notes                                                             11.4%
                                                                     -----
    Total                                                            100.0%
                                                                     =====
Collateral type:
  Hotel                                                               32.3%
  Multifamily                                                         25.3%
  Office                                                              24.5%
  Retail                                                              11.4%
  Condo                                                                1.0%
  Flex                                                                 1.0%
  Self-storage                                                         0.9%
  Other                                                                3.6%
                                                                     -----
    Total                                                            100.0%
                                                                     =====
Collateral location:
  Southern California                                                 25.0%
  Northern California                                                 11.1%
  New York                                                            13.0%
  Arizona                                                              8.2%
  Florida                                                              6.2%
  Texas                                                                4.7%
  Tennessee                                                            4.4%
  Washington                                                           4.3%
  Colorado                                                             4.3%
  Other                                                               18.8%
                                                                     -----
    Total                                                            100.0%
                                                                     =====
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                         SUPPLEMENTAL INFORMATION
                                (Unaudited)
The following table presents bank loan portfolio statistics by industry as
of June 30, 2010 (based on par value):
Industry type:
  Healthcare, education and childcare                                 12.1%
  Diversified/conglomerate service                                     8.9%
  Broadcasting and entertainment                                       7.5%
  Chemicals, plastics and rubber                                       5.6%
  Printing and publishing                                              5.2%
  Retail stores                                                        4.8%
  Personal, food and miscellaneous services                            4.7%
  Automobiles                                                          4.5%
  Personal transportation                                              4.2%
  Telecommunications                                                   4.2%
  Diversified/conglomerate manufacturing                               4.0%
  CLO securities                                                       3.7%
  Other                                                               30.6%
                                                                     -----
    Total                                                            100.0%
                                                                     =====
The following table describes equipment leases and loans by industry as of
June 30, 2010 (based on par value):
Industry type:
  Services                                                            55.1%
  Manufacturing                                                       10.8%
  Finance, insurance and real estate                                   9.8%
  Retail Trade                                                         6.8%
  Wholesale Trade                                                      6.0%
  Transportation, communication, energy                                5.1%
  Construction                                                         3.3%
  Other                                                                3.1%
                                                                     -----
    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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