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Resource Capital Corp. Reports Results for Fourth Quarter and Year Ended December 31, 2009
NEW YORK, NY, Mar 02, 2010 (MARKETWIRE via COMTEX) -- Resource Capital Corp. (NYSE: RSO)

Highlights for Fourth Quarter and Year Ended December 31, 2009

--  Net operating income of $0.32 and $1.42 per share-diluted,
    respectively;
--  GAAP net income of $0.43 and $0.25 per share-diluted, respectively;
--  Common stock cash dividend of $0.25 and $1.15 per share, respectively;
--  Repurchased $33.5 million and $55.5 million of its corporate notes for
    $8.6 million and $11.0 million, or at a 74% and 80% discount to par,
    for gains of $24.9 million and $44.5 million, respectively;
--  $128.7 million and $307.7 million of loans receivable repaid and
    settled, respectively;
--  Raised net proceeds of $43.4 million in a public offering in December
    2009;
--  No short-term borrowings at December 31, 2009; and
--  $137.1 million of liquidity at December 31, 2009.

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, to a lesser extent, commercial finance assets, reported results for the fourth quarter and year ended December 31, 2009.

Financial Results

--  Net operating income for the three months and year ended December 31,
    2009 was $9.2 million, or $0.32 per share-diluted and $36.1 million, or
    $1.42 per share-diluted, respectively, as compared to $11.0 million, or
    $0.44 per share-diluted and $42.3 million, or $1.71 per share-diluted,
    for the three months and year ended December 31, 2008, respectively.
--  GAAP net income for the three months ended December 31, 2009 was $12.1
    million, or $0.43 per share-diluted, as compared to GAAP net loss for
    the three months ended December 31, 2008 of $7.3 million, or ($0.29)
    per share-diluted. The three months ended December 31, 2009 includes
    provisions for loan and lease losses of $16.1 million, net asset
    impairments of $6.9 million, net realized gains on bank loans,
    CMBS-private placement and securities held-to-maturity totaling $1.0
    million and a gain on the extinguishment of debt of $24.9 million that,
    in the aggregate, increased GAAP net income by $0.10 per share-diluted.
    The three months ended December 31, 2008 includes provisions for loan
    and lease losses of $18.3 million that  reduced GAAP net income by
    ($0.74) per share-diluted.
--  GAAP net income for the year ended December 31, 2009 was $6.3 million,
    or $0.25 per share-diluted, as compared to GAAP net loss for the year
    ended December 31, 2008 of $3.1 million, or ($0.12) per share-diluted.
    The year ended December 31, 2009 includes provisions for loan and lease
    losses of $61.4 million, net realized gains/(losses) on bank loans,
    CMBS-private placement and securities held-to-maturity totaling $1.9
    million, net asset impairments of $13.5 million and a gain on the
    extinguishment of debt of $44.5 million that, in the aggregate, reduced
    GAAP net income by ($1.17) per share-diluted. The year ended December
    31, 2008 included provisions for loan and lease losses of $46.2
    million, net realized gains/(losses) on CMBS-private placement, bank
    loans and leases of $1.6 million, gain on a loan settlement of $574,000
    and a gain on the extinguishment of debt of $1.8 million that, in the
    aggregate, reduced GAAP net income by ($1.83) per share-diluted.
--  REIT taxable income, a non-GAAP measure, for the fourth quarter and
    year ended December 31, 2009 was $9.7 million or $0.34 per
    share-diluted and $31.5 million or $1.23 per share-diluted,
    respectively, as compared to $8.3 million or $0.33 per share-diluted
    and $39.3 million or $1.57 per share-diluted for the fourth quarter
    and year ended December 31, 2008, respectively, an increase of $1.4
    million (16%) for the quarter and a decrease of $7.8 million (20%) for
    the year, respectively.
--  On January 26, 2010, RCC paid a dividend of $0.25 per common share, or
    $9.2 million, to stockholders of record as of December 31, 2009. RCC
    paid dividends of $31.8 million, or $1.15 per common share, for the
    year ended December 31, 2009.
--  Economic book value, a non-GAAP measure, was $7.91 per common share as
    of December 31, 2009.
--  GAAP book value was $6.26 per common share as of December 31, 2009.

Jonathan Cohen, CEO and President of Resource Capital Corp., commented, "We are pleased with how we ended 2009 and began 2010. We are well positioned to grow book value through discount purchases of our debt as well as to pay a projected dividend of $1.00 per share in 2010. We maintain our conservative stance with a decent amount of investable cash as well as no short term debt. We are focused on deleveraging before we begin to start investing again in earnest. As the broader economy begins to slowly improve, we feel that Resource Capital is very well positioned to participate in and benefit from that recovery."

Additional financial results for the fourth quarter and year ended December 31, 2009 and recent developments include:

General

--  RCC's net interest income decreased by $308,000, or (2%), to $13.6
    million for the fourth quarter ended December 31, 2009, as compared
    to $13.9 million for the same period in 2008. RCC's net interest
    income decreased by $2.5 million, or (5%), to $52.2 million for the
    year ended December 31, 2009, as compared to $54.7 million for the
    same period in 2008.

Commercial Real Estate

--  RCC funded commitments on existing CRE loans on a gross basis of
    $3.8 million during the three months ended December 31, 2009.
--  RCC bought and retained CMBS of $51.7 million par value at a discount
    to par of 47.4% for the year ended December 31, 2009. The net discount
    of $24.5 million improved the collateralization on its CRE
    collateralized debt obligations ("CDO") and these purchases provided a
    yield of approximately 10.7%.

The following table summarizes RCC's CRE loan activities and fundings of previous commitments, at par, for the three months and year ended December 31, 2009 (in millions, except percentages):

                    Three Months      Year        Floating
                       Ended         Ended        Weighted     Weighted
                    December 31,  December 31,    Average       Average
                        2009          2009       Spread (1)  Fixed Rate (2)
                    ------------  ------------  ------------  ------------
Whole loans (3)     $        3.8  $       38.7          3.22%         7.94%
                    ============  ============
New loans
 production (3)              3.8          38.7
Sale of real estate
 loans                         -         (29.8)
Payoffs                    (15.0)        (22.0)
Principal paydowns          (9.6)        (46.4)
                    ------------  ------------
Loans, net (4)      $      (20.8) $      (59.5)
                    ============  ============
(1) Represents the weighted average rate above the London Interbank Offered
    Rate ("LIBOR") on loans whose interest rate is based on LIBOR as of
    December 31, 2009.
(2) Reflects rates on RCC's portfolio balance as of December 31, 2009.
(3) Consists of fundings of previous commitments.
(4) The basis of new net loans does not include provisions for losses on
    CRE loans of $13.5 million for the three months ended December 31, 2009
    and $31.9 million for the year ended December 31, 2009.

Commercial Finance

--  RCC's bank loan portfolio ended the fourth quarter with total
    investments of $896.9 million, at amortized cost, with a
    weighted-average spread of one-month and three-month LIBOR plus 2.66%.
    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%.

Book Value

As of December 31, 2009, RCC's stockholders' equity per common share was $6.26. Total stockholders' equity was $228.8 million as of December 31, 2009 as compared to $186.3 million as of December 31, 2008. Total common shares outstanding were 36,545,737 as of December 31, 2009 as compared to 25,344,867 as of December 31, 2008. The increase in RCC's stockholder's equity of $42.5 million was substantially the result of the offering completed in December 2009 that raised net offering proceeds of $43.4 million.

As of December 31, 2009, RCC's economic book value per common share outstanding, a non-GAAP measure, was $7.91. Economic book value is computed by adding back to stockholders' equity 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 December 31, 2009, classified by interest rate type. The following table includes both (i) the amortized cost of RCC's investment portfolio and the related dollar price, which is computed by dividing amortized cost by par amount, and (ii) the net carrying amount of RCC's investment portfolio and the related dollar price, which is computed by dividing the net carrying amount by par amount (in thousands, except percentages):

                                                       Net carrying
                                        Net            amount less
                Amortized   Dollar   carrying   Dollar  amortized   Dollar
                   cost     price     amount    price      cost     price
                ----------- ------  ----------- ------  ----------  ------
December 31,
 2009
 Floating rate
CMBS-private
 placement      $    32,043 100.00% $    11,185  34.91% $  (20,858) -65.09%
Other
 asset-backed
 securities
 ("ABS")                 24   0.29%          24   0.29%          -       -%
B notes (1)          26,500 100.00%      26,283  99.18%       (217)  -0.82%
Mezzanine loans
 (1)                124,048 100.00%     123,033  99.18%     (1,015)  -0.82%
Whole loans (1)     403,890  99.98%     382,371  94.65%    (21,519)  -5.33%
Bank loans (2)      857,451  96.87%     798,614  90.23%    (58,837)  -6.64%
Bank loans held
 for sale (3)         8,050  78.88%       8,050  78.88%          -       -%
ABS
 held-to-maturity
 (4)                 31,401  88.77%      21,287  60.18%    (10,114) -28.59%
                -----------         -----------         ----------
  Total
   floating
   rate           1,483,407  97.23%   1,370,847  89.85%   (112,560)  -7.38%
                -----------         -----------         ----------
  Fixed rate
CMBS - private
 placement           60,067  64.08%      33,333  35.56%    (26,734) -28.52%
B notes (1)          54,977 100.05%      54,527  99.23%       (450)  -0.82%
Mezzanine loans
 (1)                 58,638 100.28%      53,200  90.98%     (5,438)  -9.30%
Whole loans (1)      80,305  99.78%      79,647  98.96%       (658)  -0.82%
Equipment
 leases and
 loans (5)            2,067 100.05%         927  44.87%     (1,140) -55.18%
                -----------         -----------         ----------
  Total fixed
   rate             256,054  88.38%     221,634  76.50%    (34,420) -11.88%
                -----------         -----------         ----------
    Grand total $ 1,739,461  95.82% $ 1,592,481  87.72% $ (146,980)  -8.10%
                ===========         ===========         ==========
(1) Net carrying amount includes an allowance for loan losses of $29.3
    million at December 31, 2009, allocated as follows: B notes ($0.7
    million), mezzanine loans ($6.4 million) and whole loans ($22.2
    million).
(2) The bank loan portfolio is carried at amortized cost less allowance for
    loan loss and was $839.6 million at December 31, 2009. Amount disclosed
    represents net realizable value at December 31, 2009, which includes
    $17.8 million allowance for loan losses at December 31, 2009.
(3) Bank loans held for sale are carried at the 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 $1.1 million allowance for equipment
    lease and loan losses at December 31, 2009.

Liquidity

At February 28, 2010, after paying the fourth quarter dividend, RCC's liquidity of $116.7 million consists of two primary sources:

--  unrestricted cash and cash equivalents of $29.1 million and restricted
    cash of $4.0 million in margin call accounts; and
--  capital available for reinvestment in its five CDO entities of $83.6
    million, of which $1.7 million is designated to finance future funding
    commitments on CRE loans.

Capital Allocation

As of December 31, 2009, RCC had allocated its invested equity capital among its targeted asset classes as follows: 76.5% in commercial real estate loans, 23.2% in commercial bank loans and 0.3% in direct financing leases and loans.

Supplemental Information

The following reconciliations and supplemental statistics as of December 31, 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 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 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 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, a reconciliation of GAAP net income (loss) to estimated REIT taxable income, a reconciliation of GAAP stockholders' equity to economic book value, 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)
                                                        December 31,
                                                  ------------------------
                                                      2009         2008
                                                  -----------  -----------
                                                  (unaudited)
ASSETS
  Cash and cash equivalents                       $    51,991  $    14,583
  Restricted cash                                      85,125       60,394
  Investment securities available-for-sale,
   pledged as collateral, at fair value                39,304       22,466
  Investment securities available-for-sale, at
   fair value                                           5,238        6,794
  Investment securities held-to-maturity, pledged
   as collateral                                       31,401       28,157
  Loans, pledged as collateral and net of
   allowances of $47.1 million and $43.9 million    1,558,687    1,684,622
  Loans held for sale                                   8,050            -
  Direct financing leases and notes, pledged as
   collateral and net of allowance of $1.1
   million and $450,000 and net of unearned
   income                                                 927      104,015
  Investments in unconsolidated entities                3,605        1,548
  Interest receivable                                   5,754        8,440
  Other assets                                          5,102        5,012
                                                  -----------  -----------
    Total assets                                  $ 1,795,184  $ 1,936,031
                                                  ===========  ===========
LIABILITIES
  Borrowings                                      $ 1,536,500  $ 1,699,763
  Distribution payable                                  9,170        9,942
  Accrued interest expense                              1,516        4,712
  Derivatives, at fair value                           12,767       31,589
  Accounts payable and other liabilities                6,401        3,720
                                                  -----------  -----------
    Total liabilities                               1,566,354    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; 36,545,737 and 25,344,867
   shares issued and outstanding (including
   437,319 and 452,310 unvested restricted shares)         36           26
  Additional paid-in capital                          405,517      356,103
  Accumulated other comprehensive loss                (62,154)     (80,707)
  Distributions in excess of earnings                (114,569)     (89,117)
                                                  -----------  -----------
    Total stockholders' equity                        228,830      186,305
                                                  -----------  -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $ 1,795,184  $ 1,936,031
                                                  ===========  ===========
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
              (in thousands, except share and per share data)
                              Three Months Ended          Years Ended
                                 December 31,            December 31,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
                                  (unaudited)       (unaudited)
REVENUES
  Net interest income:
    Loans                   $   20,230  $   29,014  $   84,563  $  117,108
    Securities                   2,551       1,043       7,225       6,378
    Leases                          (1)      2,234       4,336       8,180
    Interest income - other        416         497       1,469       2,675
                            ----------  ----------  ----------  ----------
      Total interest income     23,196      32,788      97,593     134,341
  Interest expense               9,599      18,883      45,427      79,619
                            ----------  ----------  ----------  ----------
      Net interest income       13,597      13,905      52,166      54,722
                            ----------  ----------  ----------  ----------
OPERATING EXPENSES
  Management fees - related
   party                         2,483       1,477       8,363       6,301
  Equity compensation -
   related party                   166        (239)      1,240         540
  Professional services          1,074       1,120       3,866       3,349
  Insurance expense                219         172         828         641
  General and
   administrative                  487         729       1,764       1,848
  Income tax expense
   (benefit)                        14        (375)         (2)       (241)
                            ----------  ----------  ----------  ----------
    Total expenses               4,443       2,884      16,059      12,438
                            ----------  ----------  ----------  ----------
NET OPERATING INCOME             9,154      11,021      36,107      42,284
                            ----------  ----------  ----------  ----------
OTHER INCOME (EXPENSES)
  Impairment losses on
   investment securities       (11,396)    (17,046)    (27,490)    (26,611)
  Recognized in other
   comprehensive loss           (4,485)    (17,046)    (14,019)    (26,611)
                            ----------  ----------  ----------  ----------
  Net impairment losses
   recognized in earnings       (6,911)          -     (13,471)          -
  Net realized
   gains/(losses) on loans
   and investments               1,026          14       1,890      (1,637)
  Provision for loan and
   lease losses                (16,109)    (18,332)    (61,383)    (46,160)
  Gain on the
   extinguishment of debt       24,905           -      44,546       1,750
  Gain on the settlement of
   loan                              -           -           -         574
  Other income (expense)            25          29      (1,350)        115
                            ----------  ----------  ----------  ----------
    Total income (expense)       2,936     (18,289)    (29,768)    (45,358)
                            ----------  ----------  ----------  ----------
NET INCOME (LOSS)           $   12,090  $   (7,268) $    6,339  $   (3,074)
                            ==========  ==========  ==========  ==========
NET INCOME (LOSS) PER SHARE
 - BASIC                    $     0.43  $    (0.29) $     0.25  $    (0.12)
                            ==========  ==========  ==========  ==========
NET INCOME (LOSS) PER SHARE
 - DILUTED                  $     0.43  $    (0.29) $     0.25  $    (0.12)
                            ==========  ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER OF
 SHARES OUTSTANDING - BASIC 27,829,752  24,869,062  25,205,403  24,757,386
                            ==========  ==========  ==========  ==========
WEIGHTED AVERAGE NUMBER OF
 SHARES OUTSTANDING -
 DILUTED                    28,166,984  24,869,062  25,355,821  24,757,386
                            ==========  ==========  ==========  ==========
DIVIDENDS DECLARED PER
 SHARE                      $     0.25  $     0.30  $     1.15  $     1.60
                            ==========  ==========  ==========  ==========
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      Years Ended
                                       December 31,        December 31,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  --------
Net income (loss)  - GAAP           $ 12,090  $ (7,268) $  6,339  $ (3,074)
  Taxable REIT subsidiary's loss       1,285         -     3,138         -
                                    --------  --------  --------  --------
    Adjusted net income (loss)        13,375    (7,268)    9,477    (3,074)
Adjustments:
  Share-based compensation to
   related parties                      (117)     (891)      543    (1,620)
  Capital loss carryover
   (utilization)/losses from the
   sale of securities                   (160)        -     4,818     2,000
  Provision for loan and lease
   losses unrealized                  13,537       371    26,877    14,817
  Asset impairments                    6,911         -    13,471         -
  Deferral of extinguishment of
   debt income                       (15,789)        -   (28,530)        -
  Net book to tax adjustments for
   the Company's taxable foreign
   REIT subsidiaries                 (10,878)   15,844    (6,277)   27,115
  Subpart F income limitation (2)      3,001         -     9,872
  Other net book to tax adjustments     (175)      288     1,212        16
                                    --------  --------  --------  --------
Estimated REIT taxable income       $  9,705  $  8,344  $ 31,463  $ 39,254
                                    ========  ========  ========  ========
Amounts per share - diluted         $   0.34  $   0.33  $   1.23  $   1.57
                                    ========  ========  ========  ========
(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
                RECONCILIATION OF GAAP STOCKHOLDERS' EQUITY
                      TO ECONOMIC BOOK VALUE (1) (2)
                  (in thousands, except per share data)
                                (Unaudited)
                                                        As of December 31,
                                                        -------------------
                                                          2009      2008
                                                        --------- ---------
Stockholders' equity - GAAP                             $ 228,830 $ 186,305
Add:
  Unrealized losses - CMBS portfolio                       47,592    41,243
  Unrealized losses recognized in excess of value at
   risk - interest rate swaps                              12,812    31,589
                                                        --------- ---------
Economic book value                                     $ 289,234 $ 259,137
                                                        ========= =========
Shares outstanding                                         36,546    25,345
                                                        --------- ---------
Economic book value per share                           $    7.91 $   10.22
                                                        ========= =========
(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 us without the effects of
    unrealized losses on investments for which we expect to recover full
    par value at maturity and on interest rate swaps, which we intend 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
    fair-valued through stockholders' equity.
SCHEDULE III
                  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
                        ------------------- --------- -------------------
                          Year      Year
                          Ended     Ended               As of     As of
                        December  December  December  December   Initial
                           31,       31,    31, 2009     31,    Measurement
Name          CDO Type    2008    2009 (1)   (2) (3)   2009 (4)    Date
              --------- --------- --------- --------- --------- ---------
                         (actual)  (actual)
Apidos CDO I  CLO       $   8,957 $   6,643 $   4,928 $   3,475 $  17,136
Apidos CDO
 III          CLO       $   6,725 $   6,390 $   3,008 $   5,014 $  11,269
Apidos Cinco
 CDO          CLO       $   9,470 $   7,553 $   3,696 $  15,604 $  17,774
RREF 2006-1   CRE CDO   $  13,245 $  13,222 $  10,808 $  26,810 $  24,941
RREF 2007-1   CRE CDO   $  18,149 $  20,536 $  15,244 $  17,560 $  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)
                                (Unaudited)

Loans and Leasing Investment Statistics

The following table presents information on RCC's impaired loans and leases and related allowances as of December 31, 2009 and 2008 (based on amortized cost):

                                                        As of December 31,
                                                        ------------------
                                                          2009      2008
                                                        --------  --------
Impaired:
  Loans and leases                                      $ 89,563  $ 23,938
  Impaired loans and leases to total loans and leases        5.4%      1.3%
Allowance for loan and lease losses:
  Specific provision                                    $ 28,341  $ 18,929
  General provision                                       19,921    25,388
                                                        --------  --------
  Total allowance for loans and leases                  $ 48,262  $ 44,317
                                                        ========  ========
  Allowance as a percentage of total loans and leases        2.9%      2.4%
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
               SUPPLEMENTAL INFORMATION, A NON-GAAP MEASURE
                                (Unaudited)

The following table presents commercial real estate loan portfolio statistics as of December 31, 2009 (based on par value):

Security type
  Whole loans                                                         64.7%
  Mezzanine loans                                                     24.4%
  B Notes                                                             10.9%
                                                                     -----
    Total                                                            100.0%
                                                                     =====
Collateral type
  Hotel                                                               30.4%
  Multifamily                                                         29.1%
  Office                                                              23.3%
  Retail                                                              11.0%
  Condo                                                                1.0%
  Flex                                                                 0.9%
  Self-storage                                                         0.8%
  Other                                                                3.5%
                                                                     -----
    Total                                                            100.0%
                                                                     =====
Collateral location
  Southern California                                                 24.8%
  Northern California                                                 14.2%
  New York                                                            12.4%
  Arizona                                                              7.9%
  Florida                                                              5.9%
  Texas                                                                4.4%
  Tennessee                                                            4.2%
  Washington                                                           4.2%
  Colorado                                                             4.1%
  Other                                                               17.9%
                                                                     -----
    Total                                                            100.0%
                                                                     =====
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                         SUPPLEMENTAL INFORMATION
                                (Unaudited)

The following table presents bank loan portfolio statistics by industry as of December 31, 2009 (based on par value):

Industry type
  Healthcare, education and childcare                                 12.4%
  Diversified/conglomerate service                                     8.2%
  Broadcasting and entertainment                                       8.0%
  Chemicals, plastics and rubber                                       6.1%
  Printing and publishing                                              5.6%
  Retail stores                                                        4.7%
  Personal transportation                                              4.3%
  Personal, food and miscellaneous services                            4.2%
  Automobiles                                                          4.2%
  Telecommunications                                                   4.1%
  CLO securities                                                       3.8%
  Hotels, motels, inns and gaming                                      3.4%
  Other                                                               31.0%
                                                                     -----
    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$8.49
Change (%) Stock is Up 0.09 (1.07%)
Volume275,092
Data as of 03/01/17 1:33 p.m. ET
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