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Resource Capital Corp. Reports Results for Second Quarter Ended June 30, 2009
NEW YORK, NY, Aug 03, 2009 (MARKETWIRE via COMTEX) -- Resource Capital Corp. (NYSE: RSO)

Second Quarter Highlights

--  Second quarter 2009 Net Operating Income per share of $0.39.
--  Second quarter 2009 common stock cash dividend of $0.30 per share.
--  Resource Capital Corp. repurchased $7.5 million of its corporate notes
    for $600,000 or at a 92% discount to par since during the second quarter
    2009.
--  Resource Capital Corp. has $69.3 million of liquidity at June 30,
    2009.
--  During the second quarter 2009, Resource Capital Corp. had $114.6
    million of loans repaid or settled and eliminated $12.4 million of future
    funding obligations.


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 second quarter ended June 30, 2009.

Other Highlights

--  Net operating income for the three and six months ended June 30, 2009
    was $9.5 million, or $0.39 per share and $19.7 million, or $0.81 per share,
    respectively, as compared $10.3 million, or $0.42 per share and $21.0
    million, or $0.84 per share, for the three and six months ended June 30,
    2008, respectively, a decrease of $762,000 (7%) and $1.3 million (6%),
    respectively.

--  REIT taxable income, a non-GAAP measure, for the three and six months
    ended June 30, 2009 was $5.3 million, or $0.21 per share-diluted, and $11.4
    million, or $0.46 per share-diluted, respectively, as compared to $9.4
    million or $0.38 per share-diluted and $21.5 million or $0.86 per share-
    diluted for the three and six months ended June 30, 2008, respectively, a
    decrease of $4.1 million (44%) and $10.1 million (47%), respectively.

--  GAAP net loss for the quarter ended June 30, 2009 of $5.1 million, or
    (-$0.21) per share, including provisions for loan and lease losses of $20.0
    million and net unrealized losses on bank loans held for sale of $1.9
    million or a total of (-$0.90) per share, as compared to GAAP net loss for
    the quarter ended June 30, 2008 of (-$0.21) per share-diluted including
    provisions for loan and lease losses of $15.7 million or (-$0.62) per share-
    diluted.  GAAP net loss for the six months ended June 30, 2009 of $17.3
    million, or (-$0.71) per share, including provisions for loan and lease
    losses of $28.0 million, net unrealized losses on bank loans held for sale
    of $10.9 million and other-than-temporary impairment charges of $5.6
    million or a total of (-$1.82) per share, as compared to GAAP net income
    for the six months ended June 30, 2008 of $0.16 per share-diluted including
    provisions for loan and lease losses of $16.8 million or (-$0.67) per share-
    diluted.

--  RCC announced a dividend of $0.30 per common share for the quarter
    ended June 30, 2009, $7.5 million in the aggregate, paid on July 28, 2009
    to stockholders of record as of June 19, 2009.

--  Economic book value, a non-GAAP measure, was $9.25 per common share as
    of June 30, 2009.

--  GAAP book value was $6.66 per common share as of June 30, 2009.

--  RCC reduced the balance of its non-recourse repurchase facility
    funding CRE loans to $3.3 million as of June 30, 2009 from $16.0 million as
    of March 31, 2009.  This facility is secured by $24.6 million of pledged
    collateral.


Jonathan Cohen commented, "Although during the last few months the real estate market has continued to deteriorate, the bank loan market seems to have improved, our cash flow remained strong and our portfolio continued to perform decently as we worked diligently with our borrowers. Currently, we are focused on (i) asset management, (ii) exploiting the disconnect in the debt and equity marketplaces through select purchases of our own securities, (iii) building cash on our balance sheet and (iv) de-leveraging our real estate portfolios. Again, we look forward to paying a meaningful cash dividend for the third quarter."

Additional financial results for the second quarter ended June 30, 2009 and recent developments include:

General

--  RCC's net interest income decreased by $808,000, or 6%, to $12.5
    million for the second quarter ended June 30, 2009, from $13.3 million for
    the same period in 2008.


Commercial Real Estate

--  RCC funded commitments on existing CRE loans, on a gross basis, of
    $27.3 million during the second quarter ended June 30, 2009.


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, 2009 (in millions, except percentages) (unaudited):

                           Three      Six       12     Floating
                          Months    Months    Months   Weighted  Weighted
                           Ended     Ended     Ended    Average   Average
                          June 30,  June 30,  June 30,  Spread     Fixed
                            2009      2009      2009    (1) (2)   Rate (1)
                          --------  --------  --------  --------  --------
Whole loans (3)           $   27.3  $   30.9  $   44.7      2.97%     7.90%
Whole loans, future
 funding obligations             -         -         -       N/A       N/A
                          --------  --------  --------
New loans production          27.3      30.9      44.7
Sale of real estate
 loans                       (29.8)    (29.8)    (29.8)
Payoffs                          -      (7.0)    (59.5)
Principal paydowns            (6.2)    (16.7)    (29.0)
Whole loans, future
 funding obligations             -         -         -
                          --------  --------  --------
Net - new loans (4)       $   (8.7) $  (22.6) $  (73.6)
                          ========  ========  ========
(1) Reflects rates on RCC's portfolio balance as of June 30, 2009.
(2) Represents the weighted average rate above the London Interbank
    Offered Rate ("LIBOR") on loans whose interest rate is based on LIBOR.
(3) Includes fundings of previous commitments on transitional loans of
    $3.7 million for the three months ended June 30, 2009, $7.3 million
    for the six months ended June 30, 2009 and $21.1 million for the
    12 months ended June 30, 2009.
(4) The basis of new net loans does not include provisions for losses on
    CRE loans of $9.1 million for the three months ended June 30, 2009,
    $14.1 million for the six months ended June 30, 2009 and $17.2 million
    for the 12 months ended June 30, 2009.

Commercial Finance

--  RCC's bank loan portfolio ended the second quarter with total
    investments of $927.4 million, at amortized cost, with a weighted-average
    spread of one-month and three-month LIBOR plus 2.52%.  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 quarter ended June 30, 2009, RCC received $78.6 million
    of bank loan paydowns and repayments.


Book Value

As of June 30, 2009, RCC's GAAP book value per common share was $6.66. Total stockholders' equity was $165.9 million as of June 30, 2009 as compared to $186.3 million as of December 31, 2008. Total common shares outstanding were 24,911,944 as of June 30, 2009 as compared to 25,344,867 as of December 31, 2008. The net decrease in RCC's stockholders' equity of $20.4 million was primarily the result of increased provisions for loan and lease losses of $28.0 million, losses on RCC's bank loan portfolio of $10.9 million, combined with a decrease in the value of marked-to-market securities of $11.3 million, which was partially offset by an increase in the value of interest rate swaps of $19.9 million and a gain on the extinguishment of debt of $6.9 million.

As of June 30, 2009, RCC's economic book value per share, a non-GAAP measure, was $9.25. Economic book value is computed by adding back to GAAP book value any unrealized losses on the Company's investments in commercial mortgage-backed securities ("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 June 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) (unaudited):

                                                            Net
                                                         carrying
                                                          amount
                                        Net                less
                Amortized   Dollar   carrying   Dollar  amortized   Dollar
                 cost (3)   price     amount    price      cost     price
                ----------- ------  ----------- ------  ----------  ------
  June 30, 2009
  -------------
  Floating rate
  -------------
CMBS-private
 placement      $    32,064 100.00% $    11,095  34.60% $  (20,969) -65.40%
B notes (1)          26,500 100.00%      26,399  99.62%       (101)  -0.38%
Mezzanine loans
 (1)                129,184 100.00%     128,795  99.70%       (389)  -0.30%
Whole loans (1)     426,292  99.88%     415,865  97.44%    (10,427)  -2.44%
Bank loans (2)      924,988  97.83%     747,000  79.00%   (177,988) -18.83%
Bank loans held
 for sale (3)         2,401 100.00%       2,401 100.00%          -       -%
                -----------         -----------         ----------
   Total
    floating
    rate          1,541,429  98.65%   1,331,555  85.22%   (209,874) -13.43%
                -----------         -----------         ----------
   Fixed rate
   ----------
CMBS - private
 placement           38,614  91.78%       7,080  16.83%    (31,534) -74.95%
B notes (1)          55,256 100.08%      55,089  99.78%       (167)  -0.30%
Mezzanine loans
 (1)                 81,313  94.76%      68,418  79.73%    (12,895) -15.03%
Whole loans (1)      78,846  99.63%      78,614  99.34%       (232)  -0.29%
Equipment
 leases and
 loans (4)            3,433 100.03%       2,833  82.55%       (600) -17.48%
                -----------         -----------         ----------
   Total fixed
    rate            257,462  96.92%     212,034  79.81%    (45,428) -17.11%
                -----------         -----------         ----------
     Grand
      total     $ 1,798,891  98.40% $ 1,543,589  84.44% $ (255,302) -13.96%
                ===========         ===========         ==========
(1) Net carrying amount includes an allowance for loan losses of $24.2
    million at June 30, 2009, allocated as follows:  B notes
    ($0.3 million), mezzanine loans ($13.3 million) and whole loans
    ($10.6 million).
(2) The bank loan portfolio is carried at amortized cost less allowance
    for loan loss and was $890.1 million at June 30, 2009.  Amount
    disclosed represents net realizable value at June 30, 2009, which
    includes $34.9 million allowance for loan losses at June 30, 2009.
(3) Bank loans held for sale are carried at fair value and, therefore,
    amortized cost is equal to fair value.
(4) Net carrying amount includes a $0.6 million allowance for equipment
    leases and loans losses at June 30, 2009.

Liquidity

At July 31, 2009, after disbursing the second quarter 2009 dividend, there were three primary sources for RCC's liquidity:

--  unrestricted cash and cash equivalents of $7.0 million and restricted
    cash of $5.4 million in margin call accounts;
--  capital available for reinvestment in its five collateralized debt
    obligation ("CDO") entities of $38.2 million, of which $3.0 million is
    designated to finance future funding commitments on CRE loans; and
--  RCC has $96.7 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 June 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.

Supplemental Information

The following schedules of reconciliations or supplemental information as of June 30, 2009 are included at the end of this release:

--  Schedule I - Reconciliation of GAAP Net (Loss) Income 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, 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)
                                                    June 30,   December 31,
                                                      2009         2008
                                                  -----------  -----------
                                                  (Unaudited)
ASSETS
   Cash and cash equivalents                      $    10,553  $    14,583
   Restricted cash                                     58,728       60,394
   Investment securities available-for-sale,
    pledged as collateral, at fair value               13,940       22,466
   Investment securities available-for-sale, at
    fair value                                          4,236        6,794
   Loans, pledged as collateral and net of
    allowances of $59.1 million and
    $43.9 million                                   1,663,306    1,712,779
   Loans held for sale, at fair value                   2,401            -
   Direct financing leases and notes, pledged as
    collateral, net of allowance of
    $600,000 and $450,000 and net of unearned
    income                                              2,833      104,015
   Investments in unconsolidated entities               1,548        1,548
   Interest receivable                                  6,331        8,440
   Principal paydown receivables                           59          950
   Other assets                                        10,623        4,062
                                                  -----------  -----------
     Total assets                                 $ 1,774,558  $ 1,936,031
                                                  ===========  ===========
LIABILITIES
   Borrowings                                     $ 1,584,664  $ 1,699,763
   Distribution payable                                 7,532        9,942
   Accrued interest expense                             2,325        4,712
   Derivatives, at fair value                          11,830       31,589
   Accounts payable and other liabilities               2,305        3,720
                                                  -----------  -----------
     Total liabilities                              1,608,656    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; 24,911,944 and
    25,344,867 shares issued and outstanding
    (including 466,446 and 452,310 unvested
    restricted shares)                                     26           26
   Additional paid-in capital                         353,831      356,103
   Accumulated other comprehensive loss               (66,446)     (80,707)
   Distributions in excess of earnings               (121,509)     (89,117)
                                                  -----------  -----------
     Total stockholders' equity                       165,902      186,305
                                                  -----------  -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $ 1,774,558  $ 1,936,031
                                                  ===========  ===========
                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,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
REVENUES
  Net interest income:
     Loans                  $   21,969  $   28,686  $   45,129  $   61,125
     Securities                    883       1,158       1,765       2,339
     Leases                      2,093       1,961       4,326       3,951
     Interest income -
      other                        329         453         676       1,826
                            ----------  ----------  ----------  ----------
       Total interest
        income                  25,274      32,258      51,896      69,241
     Interest expense           12,748      18,924      26,625      42,072
                            ----------  ----------  ----------  ----------
       Net interest income      12,526      13,334      25,271      27,169
OPERATING EXPENSES
  Management fees - related
   party                           925       1,171       1,926       2,909
  Equity compensation -
   related party                   265         541         353         622
  Professional services          1,089         664       2,053       1,456
  Insurance expenses               217         170         389         298
  General and
   administrative                  441         343         846         698
  Income tax expense                44         138          (1)        167
                            ----------  ----------  ----------  ----------
     Total expenses              2,981       3,027       5,566       6,150
                            ----------  ----------  ----------  ----------
NET OPERATING INCOME             9,545      10,307      19,705      21,019
                            ----------  ----------  ----------  ----------
OTHER (EXPENSE) REVENUE
  Net realized and
   unrealized losses
   (gains) on
   investments                  (1,608)        102     (15,953)     (1,893)
  Other income                      20          26          42          59
  Provision for loan and
   lease losses                (19,984)    (15,692)    (27,973)    (16,829)
  Gain on the
   extinguishment of debt        6,900           -       6,900       1,750
                            ----------  ----------  ----------  ----------
       Total other expenses    (14,672)    (15,564)    (36,984)    (16,913)
                            ----------  ----------  ----------  ----------
NET (LOSS) INCOME           $   (5,127) $   (5,257) $  (17,279) $    4,106
                            ==========  ==========  ==========  ==========
NET (LOSS) INCOME PER SHARE
 - BASIC                    $    (0.21) $    (0.21) $    (0.71) $     0.17
                            ==========  ==========  ==========  ==========
NET (LOSS) INCOME PER SHARE
 - DILUTED                  $    (0.21) $    (0.21) $    (0.71) $     0.16
                            ==========  ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING -
 BASIC                      24,369,581  24,721,063  24,427,452  24,665,840
                            ==========  ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER
 OF SHARES OUTSTANDING -
 DILUTED                    24,369,581  24,721,063  24,427,452  24,922,340
                            ==========  ==========  ==========  ==========
DIVIDENDS DECLARED PER
 SHARE                      $     0.30  $     0.41  $     0.60  $     0.82
                            ==========  ==========  ==========  ==========
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 income 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,
                                --------------------  --------------------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
Net (loss) income - GAAP        $  (5,127) $  (5,257) $ (17,279) $   4,106
  Taxable REIT subsidiary's
   loss                             1,200          -      1,200          -
                                ---------  ---------  ---------  ---------
    Adjusted net (loss) income     (3,927)    (5,257)   (16,079)     4,106
Adjustments:
  Share-based compensation to
   related parties                     12       (392)        29       (539)
  Capital loss carryover
   (utilization)/losses
   from the sale of securities       (642)         -      4,978      2,000
  Provisions for loan and lease
   losses unrealized                9,787     11,629     14,765     11,685
  Net book to tax adjustments
   for the Company's taxable
   foreign REIT subsidiaries          145      3,462      7,735      4,237
  Other net book to tax
   adjustments                        (77)         1        (32)         9
                                ---------  ---------  ---------  ---------
Estimated REIT taxable income   $   5,298  $   9,443  $  11,396  $  21,498
                                =========  =========  =========  =========
Amounts per share - diluted     $    0.21  $    0.38  $    0.46  $    0.86
                                =========  =========  =========  =========
(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 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 three and six months ended June 30, 2009
    includes 282,566 and 262,515 shares, respectively, 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 and six months ended June 30, 2009.   The dilutive shares
    relate to restricted stock that has not yet vested at June 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
                                                                   June 30,
                                                                    2009
                                                                  ---------
Stockholders' equity - GAAP                                       $ 165,902
Add:
  Unrealized losses - CMBS portfolio                                 52,503
  Unrealized losses recognized in excess of value at risk -
   interest rate swaps (2)                                           11,934
                                                                  ---------
Economic book value                                               $ 230,339
                                                                  =========
Shares outstanding                                                   24,912
                                                                  ---------
Economic book value per share                                     $    9.25
                                                                  =========
(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
                         ------------------- --------- --------------------
                          Year       Six
                          Ended     Months                       Value on
                         December   Ended    June 30,             Initial
                           31,      June 30,   2009    June 30, Measurement
               CDO Type  2008 (1)    2009     (2)(3)    2009 (4)    Date
               --------- --------- --------- --------- --------- ----------
                         (actual)  (actual)
Apidos CDO I         CLO $   8,957 $   3,532 $   4,692 $   5,199 $   17,136
Apidos CDO III       CLO $   6,725 $   3,360 $   2,814 $   3,518 $   11,269
Apidos Cinco
 CDO                 CLO $   9,470 $   4,107 $   3,563 $  15,340 $   17,774
RREF 2006-1      CRE CDO $  13,245 $   7,120 $  12,437 $  27,518 $   24,941
RREF 2007-1      CRE CDO $  18,149 $  10,737 $  16,956 $  18,671 $   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, 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, 2009 and 2008 (based on
amortized cost):
                                                         As of June 30,
                                                      --------------------
                                                        2009       2008
                                                      ---------  ---------
Impaired:
  Loans and leases                                    $ 158,246  $  17,283
  Impaired loans and leases to total loans and leases       9.2%       0.9%
Allowance for loan and lease losses:
  Specific provision                                  $  43,510  $  15,494
  General provision                                      16,162      5,277
                                                      ---------  ---------
  Total allowance for loans and leases                $  59,672  $  20,771
                                                      =========  =========
  Allowance for loan and lease losses to total loans
   and leases                                               3.5%       1.1%
                RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                      SUPPLEMENTAL INFORMATION
                            (Unaudited)
The following table presents CRE loan portfolio statistics as of
June 30, 2009 (based on par value):
Security type
  Whole loans                                                        64.4%
  Mezzanine loans                                                    25.2%
  B Notes                                                            10.4%
                                                                    -----
    Total                                                           100.0%
                                                                    =====
Collateral type
  Multifamily                                                        31.2%
  Hotel                                                              28.6%
  Office                                                             22.2%
  Retail                                                             12.4%
  Condo                                                               0.9%
  Flex                                                                0.9%
  Self-storage                                                        0.8%
  Other                                                               3.0%
                                                                    -----
    Total                                                           100.0%
                                                                    =====
Collateral location
  Southern California                                                23.2%
  Northern California                                                16.9%
  New York                                                           11.9%
  Arizona                                                             7.5%
  Florida                                                             5.7%
  Texas                                                               4.3%
  Tennessee                                                           4.1%
  Washington                                                          4.0%
  Colorado                                                            3.9%
  Other                                                              18.5%
                                                                    -----
    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, 2009 (based on par value):
Industry type
  Healthcare, education and childcare                                 12.0%
  Diversified/conglomerate service                                     8.8%
  Broadcasting and entertainment                                       6.6%
  Printing and publishing                                              5.9%
  Chemicals, plastics and rubber                                       5.7%
  Retail stores                                                        4.7%
  Hotels, motels, inns and gaming                                      4.2%
  Finance                                                              3.9%
  Automobiles                                                          3.9%
  Telecommunications                                                   3.8%
  Other                                                               40.5%
                                                                     -----
    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$9.69
Change (%) Stock is Down 0.13 (1.32%)
Volume321,088
Data as of 03/24/17 4:02 p.m. ET
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