Investors
Resource Capital Corp. Reports Results for Fourth Quarter and Year Ended 2006

NEW YORK, NY, Mar 07, 2007 (MARKET WIRE via COMTEX News Network) -- Resource Capital Corp. (NYSE: RSO) (the "Company" or "RCC"), a real estate investment trust focused on originating and investing in commercial real estate secured loans, whole loans, B-notes, mezzanine loans, mortgage-related securities and other real estate-related assets and, to a lesser extent, higher-yielding commercial finance assets and asset-backed securities, reported net income of $6.8 million or $0.36 per share-diluted (weighted-average shares of 18,736,063) for the fourth quarter ended December 31, 2006 as compared to net income of $4.9 million or $0.32 per share-diluted (weighted-average shares of 15,481,622) for the fourth quarter ended December 31, 2005, an increase of $1.9 million (39%) and $0.04 (13%) per share-diluted, respectively. Excluding the impact of the additional shares outstanding from the Company's December follow-on offering, net income was $0.38 per-share diluted. Net income for the year ended December 31, 2006 was $15.6 million, or $0.87 per share-diluted, as compared to net income for the period from March 8, 2005 (date operations commenced) to December 31, 2005, hereafter referred to as the period ended December 31, 2005, of $10.9 million, or $0.71 per share-diluted, an increase of $4.7 million (43%) and $0.16 (23%) per share-diluted, respectively.

Estimated REIT taxable income for the year ended December 31, 2006 was $27.9 million or $1.57 per share-diluted as compared to $12.7 million or $0.82 per share-diluted for the period ended December 31, 2005, an increase of $15.2 million (121%). A reconciliation of estimated REIT taxable income to the Company's GAAP net income accompanies this release.

The Company estimates that, for the year ended December 31, 2007, it will pay dividends between $1.65 and $1.80 per common share. As of both December 31, 2006 and February 28, 2007, the Company reports that the credit performance of its investment portfolio continues to perform as anticipated. "We reaffirm that the core of our investment process is disciplined credit analysis and proactive risk management. Our Company will continue to focus on its commercial real estate activities which represent the predominate portion of our capital and asset commitments. We believe that we are well-positioned to capitalize on the strength of our commercial real estate platform in the next few quarters," reports Jonathan Cohen, CEO and President.

Highlights for the fourth quarter and year end 2006 and recent developments include:

--  The Company paid a regular quarterly dividend of $0.38 and a special
    dividend of $0.05 per common share on 17,821,434 common shares for the
    fourth quarter of 2006, an increase of $0.01 per common share or 3% from
    the regular dividend paid for the third quarter of 2006.  These
    distributions were paid on January 4, 2007 to all shareholders of record
    prior to the effect of the follow-on offering, as of December 15, 2006.
    For the year ended December 31, 2006, RCC declared and paid dividends of
    $1.49 per common share for a total dividends paid of $26.5 million (95% of
    estimated REIT taxable income) for the calendar year 2006.
--  The Company's net interest income increased by $2.6 million (35%) to
    $10.0 million for the quarter ended December 31, 2006 as compared to $7.4
    million for the same period in 2005.  For the year ended December 31, 2006,
    net interest income increased by $16.6 million (91%) to $34.9 million up
    from $18.3 million for the period ended December 31, 2005.


Commercial Real Estate

--  The Company continued to increase its investment in commercial real
    estate loans. The portfolio of loans (net of repayments and discounts) grew
    by $485.0 million to $656.1 million at December 31, 2006 from $171.1
    million at December 31, 2005.  The Company anticipates new commercial real
    estate loan investments of approximately $800.0 million to $1.0 billion at
    an average range of $200.0 to $250.0 million per fiscal quarter during the
    year ending December 31, 2007.
--  The following table summarizes the Company's commercial real estate
    ("CRE") loan origination activities, at par, for the quarter, six months
    and year ended December 31, 2006:


                       Three Months Six Months  Year   Floating   Weighted
                           Ended      Ended    Ended   Weighted   Average
                          December  December  December  Average    Fixed
                          31, 2006  31, 2006  31, 2006  Spread      Rate
                          --------  --------  --------  --------  --------
Whole loans               $  116.1  $  192.6  $  192.6      3.19%      N/A
A-notes                          -      22.5      42.5      1.30%      N/A
B-notes                       48.9      73.7     125.8      2.46%     7.57%
Mezzanine                     40.6      91.3     155.8      2.64%     8.05%
CMBS                          30.1      30.1      30.1       N/A       N/A
                          --------  --------  --------
New loans                    235.7     410.2     546.8
Payoffs                       (5.5)    (33.0)    (49.5)
Principal pay downs           (5.6)     (5.6)     (5.6)
                          --------  --------  --------
Net - new loans           $  224.6  $  371.6  $  491.7
                          ========  ========  ========

Commercial Finance

--  RCC's bank loan portfolio ended the period with total investments of
    $614.2 million, at cost, with a weighted-average spread of LIBOR plus
    2.34%.  The Company's bank loan portfolio is match-funded through two
    collateralized loan obligation ("CLO") issuances with a weighted-average
    cost of LIBOR plus 0.46%.
--  RCC's commercial finance subsidiary ended the period with $89.0
    million in direct financing leases and notes at a weighted-average rate of
    8.74%.  The Company's leasing portfolio is match-funded through a secured
    term facility, which had a balance of $84.7 million as of December 31, 2006
    and a weighted-average interest rate of 6.33%.
--  On January 8, 2007, the Company entered into a new $350.0 million
    warehouse agreement with Credit Suisse to finance the purchase of bank
    loans.  The Company entered into this warehouse agreement to facilitate its
    third bank loan CLO.


Corporate Matters

--  On December 20, 2006, the Company sold 6,000,000 shares of common
    stock, at a price of $16.50 per Share ($15.5925 per share, net of
    underwriting discount and commissions), in a follow-on public offering. RCC
    received net proceeds of $93.0 million from the offering. On January 8,
    2007, the Company's underwriters purchased 650,000 shares of the 900,000
    shares available under the over-allotment option RCC granted them in
    connection with the offering. The exercise of the over-allotment option
    generated net proceeds, after underwriting discounts and commissions, of
    $10.1 million and brought the aggregate net proceeds of the offering up to
    $103.1 million. RCC used proceeds of the follow-on offering and over-
    allotment option exercise to repay indebtedness under its repurchase
    agreements.
--  RCC received warrant exercises through February 28, 2007, which were
    granted to common shareholders in January 2006 and became exercisable on
    January 13, 2007, for 273,608 shares at $15.00 per share for proceeds of
    approximately $4.1 million. These exercises increased the Company's
    outstanding shares to 24,930,399 common shares at March 6, 2007.
--  The Company announced that Mr. Gary Ickowicz joined the Board of
    Directors increasing the size of the Board of Directors from six to seven
    members on February 1, 2006.  Mr. Ickowicz is a principal of Lazard Freres
    Real Estate Investors.  Mr. Ickowicz oversees several real estate
    investment companies and is the President and a Board member of
    Commonwealth Atlantic Properties, Inc.


Capital Allocation

As of December 31, 2006, RCC had allocated its equity capital among its targeted asset classes as follows: 77% in commercial real estate loans, 14% in commercial bank loans, 7% in asset-backed securities ("ABS") and 2% in direct financing leases and notes.

Balance Sheet Summary

At December 31, 2006, RCC's investment portfolio totaled $1.8 billion and included the following: $683.6 million of commercial real estate-related investments, $614.2 million of bank loans, $363.5 million of asset-backed securities, $89.0 million of direct financing leases and notes and $36.1 million of temporary cash investments. At December 31, 2006, RCC's investment portfolio was financed with $1.5 billion of total indebtedness and included the following: $1.2 billion of senior notes issued by collaterlized debt obligations secured primarily by commercial real estate related investments, mortgage-backed securities, syndicated bank loans and other asset-backed securities; $120.5 million of repurchase agreements secured by commercial real estate-related investments, $84.7 million through a term facility secured by equipment leases and notes and $51.5 million of unsecured junior subordinated debentures.

Book Value

The Company's book value per common share at December 31, 2006 was $13.33 as compared to $12.46 at December 31, 2005, a 7.0% increase. Total stockholders' equity was $317.6 million at December 31, 2006 and $195.3 million at December 31, 2005. Total common shares outstanding were 23,821,434 and 15,682,334 at December 31, 2006 and 2005, respectively.

Impact of previously reported transactions

As previously reported, on September 28, 2006 the Company sold the remainder of its agency residential mortgage backed securities ("RMBS") portfolio and terminated the related interest rate swap contract in order to redeploy its invested capital into higher earning asset classes. Consequently, included in the Company's operating results for the year ended December 31, 2006 is a net loss of $8.8 million.

Pro-forma net income from on-going operations excludes the $8.8 million of net realized loss from the agency RMBS sale. Pro-forma net income was $24.4 million for the year ended December 31, 2006 as compared to $10.9 million for the period ended December 31, 2005, an increase of $13.5 million. The following table reconciles net income to pro-forma net income from on-going operations for both periods:

                                                  Year Ended   Period Ended
                                                  December 31, December 31,
                                                      2006         2005
                                                  ------------ ------------
Net income                                        $     15,606 $     10,908
Plus:
   Net realized loss from sale of agency RMBS
    portfolio                                            8,768            -
                                                  ------------ ------------
Pro-forma income from on-going operations         $     24,374 $     10,908
                                                  ============ ============
Pro-forma income from on-going operations per
 share diluted                                    $       1.36 $       0.71
                                                  ============ ============

Pro-forma income from on-going operations is not a measure of financial performance under GAAP and accordingly, should not be considered as a substitute for net income.

Investment Portfolio

The following table summarizes the amortized cost and estimated fair value of the Company's investment portfolio as of December 31, 2006, classified by interest rate type. The following table includes both (i) the amortized cost of the Company's investment portfolio and the related dollar price, which is computed by dividing amortized cost by par amount, and (ii) the estimated fair value of the Company's investment portfolio and the related dollar price, which is computed by dividing the estimated fair value by par amount (in thousands, except percentages):

                                                        Estimated fair
                                                          value less
                    Amortized  Dollar  Estimated  Dollar  amortized  Dollar
                       cost    price   fair value price     cost     Price
                    ---------- ------  ---------- ------  ---------  -----
 December 31, 2006
   Floating rate
ABS-RMBS            $  342,496  99.22% $  336,968  97.62% $  (5,528) -1.60%
CMBS                       401 100.00%        406 101.25%         5   1.25%
CMBS-private
 placement              30,055 100.00%     30,055 100.00%         -   0.00%
Other ABS               17,539  99.87%     17,669 100.61%       130   0.74%
A notes                 42,515 100.04%     42,515 100.04%         -   0.00%
B notes                147,196 100.03%    147,196 100.03%         -   0.00%
Mezzanine loans        105,288 100.07%    105,288 100.07%         -   0.00%
Whole loans            190,768  99.06%    190,768  99.06%         -   0.00%
Bank loans             613,981 100.15%    613,540 100.08%      (441) -0.07%
                    ----------         ----------         ---------
   Total floating
    rate            $1,490,239  99.77% $1,484,405  99.38% $  (5,834) -0.39%
                    ==========         ==========         =========
    Fixed rate
ABS-RMBS            $    6,000 100.00% $    5,880  98.00% $    (120) -2.00%
CMBS                    27,550  98.77%     27,031  96.91%      (519) -1.86%
Other ABS                2,987  99.97%      2,988 100.00%         1   0.03%
B notes                 56,390 100.22%     56,390 100.22%         -   0.00%
Mezzanine loans         83,901  94.06%     83,901  94.06%         -   0.00%
Bank loans                 249 100.00%        249 100.00%         -   0.00%
Equipment leases and
 notes                  88,970 100.00%     88,970 100.00%         -   0.00%
                    ----------         ----------         ---------
   Total fixed rate $  266,047  97.97% $  265,409  97.73% $    (638) -0.24%
                    ==========         ==========         =========
      Grand total   $1,756,286  99.49% $1,749,814  99.12% $  (6,472) -0.37%
                    ==========         ==========         =========

About Resource Capital Corp.

Resource Capital Corp. is a specialty finance company that began operations in March 2005 and has elected and intends to continue to qualify as a real estate investment trust for federal income tax purposes. RCC's investment strategy focuses on real estate-related assets, and, to a lesser extent, higher-yielding commercial finance assets with a concentration on the following asset classes: commercial real estate-related assets such as whole loans, B-notes, mezzanine loans and mortgage-related securities and commercial finance assets such as other ABS, syndicated bank loans, equipment leases and notes, trust preferred securities 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 equipment finance sectors.

For more information, please visit the Company's website at www.resourcecapitalcorp.com or contact investors relations at pschreiber@resourceamerica.com

Safe Harbor Statement

Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company'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 the Company's loans or on
    loans underlying the Company's investments;
--  adverse market trends which may affect the value of real estate and
    other assets underlying the Company's investments;
--  increases in financing or administrative costs; and
--  general business and economic conditions that would impair the credit
    quality of borrowers and the Company'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 the Company is subject, see Item 1A, "Risk Factors" included in the Company's annual report on Form 10-K and in other of its public filings with the Securities and Exchange Commission.

The Company 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 the Company 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, the Company 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 the Company's consolidated balance sheets, consolidated statements of operations and a reconciliation of the Company's estimated REIT taxable income.

                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
              (in thousands, except share and per share data)
                                                        December 31,
                                                  ------------------------
                                                      2006         2005
                                                  -----------  -----------
ASSETS
  Cash and cash equivalents                       $     5,354  $    17,729
  Restricted cash                                      30,721       23,592
  Due from broker                                       2,010          525
  Available-for-sale securities, pledged as
   collateral, at fair value                          420,997    1,362,392
  Available-for-sale securities, at fair value              -       28,285
  Loans                                             1,240,288      569,873
  Direct financing leases and notes, net of
   unearned income                                     88,970       23,317
  Investments in unconsolidated trusts                  1,548            -
  Derivatives, at fair value                                -        3,006
  Interest receivable                                   8,839        9,337
  Accounts receivable                                     486          183
  Principal paydown receivables                           503        5,805
  Other assets                                          3,113        1,503
                                                  -----------  -----------
    Total assets                                  $ 1,802,829  $ 2,045,547
                                                  ===========  ===========
LIABILITIES
  Repurchase agreements, including accrued
   interest of $322 and $2,104                    $   120,457  $ 1,068,277
  Collateralized debt obligations ("CDOs")
   (net of debt issuance costs of $18,310
   and $10,093)                                     1,207,175      687,407
  Warehouse agreement                                       -       62,961
  Secured term facility                                84,673            -
  Unsecured revolving credit facility                       -       15,000
  Distribution payable                                  7,663        5,646
  Accrued interest expense                              6,523        9,514
  Unsecured junior subordinated debentures held
   by unconsolidated trusts that issued trust
   preferred securities                                51,548            -
  Management and incentive fee payable - related
   party                                                1,398          896
  Derivatives, at fair value                            2,904            -
  Security deposits                                       725            -
  Accounts payable and accrued liabilities              2,166          513
  Other liabilities                                        46            -
                                                  -----------  -----------
    Total liabilities                               1,485,278    1,850,214
                                                  -----------  -----------
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; 23,821,434 and 15,682,334
   shares issued and outstanding (including
   234,224 and 349,000 unvested restricted shares)         24          16
  Additional paid-in capital                          341,400      220,161
  Deferred equity compensation                         (1,072)      (2,684)
  Accumulated other comprehensive loss                 (9,279)     (19,581)
  Distributions in excess of earnings                 (13,522)      (2,579)
                                                  -----------  -----------
    Total stockholders' equity                        317,551      195,333
                                                  -----------  -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $ 1,802,829  $ 2,045,547
                                                  ===========  ===========
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS
              (in thousands, except share and per share data)
                                (Unaudited)
                                                               Period from
                                                              March 8, 2005
                                                                  (Date
                                                               Operations
                              Three Months Ended   Year Ended  Commenced)to
                                 December 31,     December 31, December 31,
                            -----------------------
                               2006        2005        2006        2005
                            ----------- ----------- ----------  -----------
REVENUES
  Net interest income:
    Interest income from
     securities
     available-for-sale     $     7,375 $    17,507 $   56,048  $    44,247
  Interest income from
   loans                         23,637       8,340     70,262       14,662
  Interest income - other         2,260         851     10,438        2,478
                            ----------- ----------- ----------  -----------
    Total interest income        33,272      26,698    136,748       61,387
  Interest expense               23,275      19,327    101,851       43,062
                            ----------- ----------- ----------  -----------
    Net interest income           9,997       7,371     34,897       18,325
                            ----------- ----------- ----------  -----------
OTHER REVENUE
  Net realized (losses)
   gains on investments             226         133     (8,627)         311
  Other income                       88           -        480            -
                            ----------- ----------- ----------  -----------
    Total other revenue             314         133     (8,147)         311
                            ----------- ----------- ----------  -----------
EXPENSES
  Management fees - related
   party                          1,690       1,173      4,838        3,012
  Equity compensation -
   related party                    812         836      2,432        2,709
  Professional services             615         236      1,881          580
  Insurance                         127         122        498          395
  General and
   administrative                   275         237      1,495        1,032
                            ----------- ----------- ----------  -----------
    Total expenses                3,519       2,604     11,144        7,728
                            ----------- ----------- ----------  -----------
NET INCOME                  $     6,792 $     4,900 $   15,606  $    10,908
                            =========== =========== ==========  ===========
NET INCOME PER SHARE -
 BASIC                      $      0.37 $      0.32 $     0.89  $      0.71
                            =========== =========== ==========  ===========
NET INCOME PER SHARE -
 DILUTED                    $      0.36 $      0.32 $     0.87  $      0.71
                            =========== =========== ==========  ===========
WEIGHTED AVERAGE NUMBER OF
  SHARES OUTSTANDING -
   BASIC                     18,369,819  15,333,334 17,538,273   15,333,334
                            =========== =========== ==========  ===========
WEIGHTED AVERAGE NUMBER OF
  SHARES OUTSTANDING -
   DILUTED                   18,736,063  15,481,622 17,881,355   15,405,714
                            =========== =========== ==========  ===========
DIVIDENDS DECLARED PER
 SHARE                      $      0.43 $      0.36 $     1.49  $      0.86
                            =========== =========== ==========  ===========
                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME (LOSS) TO ESTIMATED REIT TAXABLE INCOME
                                (Unaudited)

Estimated REIT Taxable Income

The Company 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 its net income to estimated REIT taxable income for the periods presented (in thousands):

                                                             Period from
                                                            March 8, 2005
                                                           (Date Operations
                                                             Commenced)to
                                                December 31,  December 31,
                                                    2006          2005
                                                -------------  -----------
Net income                                      $    15,606    $    10,908
Additions:
  Share-based compensation to related parties           368          2,709
  Incentive management fee expense to related
   party paid in shares                                 371             86
  Capital losses from the sale of
   available-for-sale securities                     11,624              -
  Accrued and/or prepaid expenses                        90            (86)
  Removal of non-consolidating taxable REIT
   subsidiary                                           (80)             -
  Net book to tax adjustment for the inclusion
   of the Company's taxable foreign REIT
   subsidiaries                                         121           (876)
  Amortization of deferred debt issuance costs
   on CDO financings                                   (162)           (71)
                                                -----------    -----------
Estimated REIT taxable income                   $    27,938    $    12,670
                                                ===========    ===========

The Company 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 the Company's 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 earnings. Total taxable income is the aggregate amount of taxable income generated by RCC and by its domestic and foreign taxable REIT subsidiaries. Estimated REIT taxable income excludes the undistributed taxable income of RCC's domestic taxable REIT subsidiary, if any such income exists, which is not included in REIT taxable income until distributed by RCC. There is no requirement that RCC's domestic taxable REIT subsidiary distribute its earnings to the Company. Estimated REIT taxable income, however, includes the taxable income of RCC's foreign taxable REIT subsidiaries because the Company will generally be required to recognize and report its taxable income on a current basis. RCC uses estimated REIT taxable income for this purpose. 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.

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.