NEW YORK, NY, Aug 04, 2008 (MARKET WIRE via COMTEX News Network) -- Resource Capital Corp. (NYSE: RSO) ("RCC" or the "Company"), a real estate investment trust whose investment strategy focuses on commercial real estate loan assets and, to a lesser extent, commercial finance assets, reported results for the second quarter ended June 30, 2008.
Financial Summary
-- REIT taxable income, a non-GAAP measure, for the three and six months
ended June 30, 2008 was $9.4 million or $0.38 per share-diluted and $21.5
million or $0.86 per share-diluted, respectively, as compared to $10.5
million or $0.42 per share-diluted and $20.2 million or $0.81 per share-
diluted for the three and six months ended June 30, 2007, respectively, a
decrease of $1.1 million (10%) and an increase of $1.3 million (6%),
respectively. RCC announced a dividend distribution of $0.41 per common
share for the quarter ended June 30, 2008, unchanged from the quarters
ended March 31, 2008 and June 30, 2007.
-- Adjusted net income, a non-GAAP measure excluding the effect of non-
cash charges and non-operating capital transactions, of $9.3 million, or
$0.37 per share-diluted for the quarter ended June 30, 2008 as compared to
$10.6 million, or $0.43 per share-diluted for the quarter ended June 30,
2007, a decrease of $1.4 million (13%).
-- Economic book value, a non-GAAP measure, was $11.34 per common share
as of June 30, 2008.
-- GAAP book value was $9.90 per common share as of June 30, 2008.
-- GAAP net loss of $0.21 per share-diluted, including non-cash charges
for loan and lease losses of $14.5 million or $0.58 per share-diluted, for
the second quarter ended June 30, 2008.
-- Paydowns on RCC's bank loan portfolio were $25.5 million for the
quarter ended June 30, 2008. Paydowns on RCC's commercial real estate loan
portfolio were $164,000 for the quarter ended June 30, 2008.
-- As of July 31, 2008, short-term repurchase agreement borrowings were
down to $880,000 from $7.6 million as of March 31, 2008.
Jonathan Cohen, CEO and President of RCC, commented, "With the exception of one loan which defaulted in the first quarter of 2008 that we fully reserved for this quarter, the credit quality of our loan portfolio appears to be stable in the current credit environment. We have increased our general reserves but feel confident that our portfolio quality is intact. Although our prepayments this quarter were virtually non-existent, we expect that prepayments will increase, based upon our conversations with several of our borrowers. As these prepayments occur, we will be able to continue to reinvest at very attractive spreads thereby increasing portfolio income and realizing exit fees. We also worked hard to eliminate all but $880,000 of short term recourse liabilities."
The following schedules of reconciliations as of June 30, 2008 are included in this release:
-- Schedule I -- Reconciliation of GAAP Net Income to Adjusted Net
Income;
-- Schedule II -- Reconciliation of GAAP Net Income to Estimated REIT
Taxable Income; and
-- Schedule III -- Reconciliation of GAAP Stockholders' Equity to
Economic Book Value.
Additional financial results for the second quarter ended June 30, 2008 and recent developments include:
General
-- RCC's net interest income decreased by $0.3 million, or 2%, to $13.3
million for the second quarter ended June 30, 2008, as compared to $13.6
million for the same period in 2007.
Commercial Real Estate
-- RCC produced new commercial real estate ("CRE") loans, on a gross
basis, of $7.7 million during the second quarter ended June 30, 2008. The
aggregate net portfolio of CRE loans grew by $12.1 million to $903.8
million at June 30, 2008, from $891.7 million at June 30, 2007, not
including future funding obligations of $17.9 million.
The following table summarizes RCC's CRE loan origination activities and future funding obligations, at par, for the three, six and 12 months ended June 30, 2008 (in millions, except percentages):
TABLE WITH 3 FOOTNOTES
Commercial Finance
-- RCC's bank loan portfolio ended the second quarter with total
investments of $946.9 million, at amortized cost, with a weighted-average
spread of one-month and three-month LIBOR plus 2.28%. 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%.
-- RCC's commercial finance subsidiary ended the second quarter with
$92.6 million, at cost, in direct financing leases and notes at a weighted-
average rate of 9.23%. RCC's leasing portfolio is match-funded through a
secured term facility, which had a balance of $85.8 million as of June 30,
2008 and a weighted-average interest rate of 3.84%.
Book Value
As of June 30, 2008, RCC's GAAP book value per common share was $9.90. Total stockholders' equity was $250.3 million as of June 30, 2008 as compared to $271.6 million as of December 31, 2007. Total common shares outstanding were 25,282,632 as of June 30, 2008 as compared to 25,103,532 as of December 31, 2007.
As of June 30, 2008, RCC's economic book value per common share outstanding, a non-GAAP measure, was $11.34. Economic book value is computed by adding back to GAAP book value any unrealized losses on the Company's investments in CMBS for which it expects to recover full par value at maturity, and on derivatives (cash flow hedges) that are associated with fixed-rate loans which it intends to hold until maturity, in excess of its value at risk, and that have not been adjusted through stockholders' equity for market fluctuations (see Footnote 1 of Schedule III). 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 the RCC's investment portfolio as of June 30, 2008, 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):
Three Floating Weighted
Months Six Months 12 Months Weighted Average
Ended June Ended June Ended June Average Fixed
30, 2008 30, 2008 30, 2008 Spread (1) Rate (1)
---------- ---------- ---------- ---------- ----------
Whole loans $ 7.7 $ 43.3 $ 167.5 2.89% 7.81%
Whole loans,
future funding
obligations - - 17.9 N/A N/A
B notes - - - 2.78% 7.57%
Mezzanine loans - - - 2.61% 8.15%
CMBS - - 14.0 N/A (2) 5.06%
---------- ---------- ----------
New loans
production 7.7 43.3 199.4
Payoffs - (11.4) (106.4)
Principal
paydowns (2.4) (4.5) (16.1)
Whole loans,
future funding
obligations - - (17.9)
Sales of CMBS - (10.0) (10.0)
---------- ---------- ----------
Net - new loans 5.3 17.4 49.0
Other 0.5 0.8 1.5
---------- ---------- ----------
New loans, net
(3) $ 5.8 $ 18.2 $ 50.5
========== ========== ==========
(1) Reflects rates on our portfolio balance as of June 30, 2008.
(2) Weighted average floating rate coupon of 4.87% at June 30, 2008.
(3) The basis of new net loans does not include provisions on commercial
real estate loans of $11.6 million for the three months ended June 30,
2008, of $11.7 million for the six months ended June 30, 2008 and $14.8
million for the 12 months ended June 30, 2008.
Liquidity
At July 31, 2008, RCC's liquidity consists of three primary sources:
-- unrestricted cash and cash equivalents of $7.1 million and restricted
cash of $7.0 million comprised of $4.0 million in margin call accounts and
$3.0 million related to its leasing portfolio;
-- capital available for reinvestment in its five collateralized debt
obligation ("CDO") entities of $44.4 million, which is made up of $27.0
million of restricted cash and $17.4 million of availability to finance
future funding commitments on commercial real estate loans; and
-- financing available under existing borrowing facilities of $26.5
million, comprised of $16.5 million of available cash from RCC's three year
non-recourse secured financing facility and $10.0 million of unused
capacity under its unsecured revolving credit facility. RCC also has $83.4
million of unused capacity under a three-year non-recourse commercial real
estate repurchase facility, which, however, requires approval of individual
repurchase transactions by the repurchase counterparty.
Capital Allocation
As of June 30, 2008, RCC had allocated its equity capital among its targeted asset classes as follows: 73% in commercial real estate loans, 25% in commercial bank loans and 2% in direct financing leases and notes.
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 commercial real estate-related assets, and, to a lesser extent, commercial finance assets. RCC invests in the following asset classes: commercial real estate-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 collateralized debt obligations 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 the 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 may 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 would impair the credit
quality of borrowers and RCC's ability to originate loans.
For further information concerning these and other risks pertaining to the forward-looking statements contained in this release, and to the general risks to which RCC is subject, see Item 1A, "Risk Factors" included in its annual report on Form 10-K and in other of its public filings with the Securities and Exchange Commission.
RCC cautions you not to place undue reliance on any forward-looking statements contained in this release, which speak only as of the date of this release. All subsequent written and oral forward-looking statements attributable to RCC or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this release. Except to the extent required by applicable law or regulation, RCC undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this filing or to reflect the occurrence of unanticipated events.
The remainder of this release contains RCC's unaudited consolidated balance sheets, consolidated statements of operations and reconciliations of GAAP net income to adjusted net income, GAAP net income to estimated REIT taxable income and GAAP stockholders' equity to economic book value and supplemental information regarding RCC's commercial real estate, bank loan and equipment leasing portfolios.
Net
carrying
Net amount less
Amortized Dollar carrying Dollar amortized Dollar
cost price amount price cost price
------------ ------ ----------- ------ ----------- ------
June 30,
2008
Floating
rate
CMBS -
private
placement $ 39,212 94.58% $ 26,773 64.58% $ (12,439) -30.00%
Other ABS 5,665 94.42% 300 5.00% (5,365) -89.42%
B notes (1) 33,545 100.03% 33,462 99.78% (83) -0.25%
Mezzanine
loans (1) 130,132 100.04% 129,807 99.79% (325) -0.25%
Whole loans
(1) 473,493 99.55% 472,309 99.31% (1,184) -0.24%
Bank loans
(2) 946,917 99.59% 857,274(4) 90.16% (89,643) -9.43%
------------ ----------- -----------
Total
floating
rate $ 1,628,964 99.48% $ 1,519,925 92.82% $ (109,039) -6.66%
============ =========== ===========
Fixed rate
CMBS -
private
placement $ 31,114 94.94% $ 20,001 61.03% $ (11,113) -33.91%
B notes (1) 55,792 100.14% 55,652 99.89% (140) -0.25%
Mezzanine
loans (1) 81,236 94.67% 68,374 79.68% (12,862) -14.99%
Whole loans
(1) 97,669 99.41% 97,425 99.17% (244) -0.24%
Equipment
leases and
notes (3) 92,597 100.00% 92,104 99.47% (493) -0.53%
------------ ----------- -----------
Total
fixed
rate $ 358,408 98.16% $ 333,556 91.35% $ (24,852) -6.81%
============ =========== ===========
Grand
total $ 1,987,372 99.24% $ 1,853,481 92.55% $ (133,891) -6.69%
============ =========== ===========
(1) Net carrying amount includes an allowance for loan losses of $14.9
million at June 30, 2008, allocated as follows: B notes ($0.2
million), mezzanine loans ($13.2 million) and whole loans ($1.5
million).
(2) Net carrying amount includes a $5.4 million allowance for loan losses
at June 30, 2008.
(3) Net carrying amount includes a $493,000 allowance for lease losses at
June 30, 2008.
(4) Bank loan portfolio is carried at amortized cost less allowance for
loan loss.
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
June 30, December 31
2008 2007
----------- -----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 14,255 $ 6,029
Restricted cash 36,292 119,482
Investment securities available-for-sale,
pledged as collateral, at fair value 47,074 65,464
Loans, pledged as collateral and net of
allowances of $20.3 million and $5.9 million 1,798,504 1,766,639
Direct financing leases and notes, pledged as
collateral and net of allowances of
$0.5 million and $0.3 million and net of
unearned income 92,104 95,030
Investments in unconsolidated entities 1,548 1,805
Interest receivable 9,112 11,965
Principal paydown receivables 60 836
Other assets 5,072 4,898
----------- -----------
Total assets $ 2,004,021 $ 2,072,148
=========== ===========
LIABILITIES
Borrowings $ 1,722,244 $ 1,760,969
Distribution payable 10,440 10,366
Accrued interest expense 4,599 7,209
Derivatives, at fair value 12,833 18,040
Accounts payable and other liabilities 3,557 3,958
----------- -----------
Total liabilities 1,753,673 1,800,542
----------- -----------
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; 25,282,632 and 25,103,532
shares issued and outstanding (including
491,195 and 581,493 unvested restricted
shares) 25 25
Additional paid-in capital 355,969 355,205
Accumulated other comprehensive loss (43,579) (38,323)
Distributions in excess of earnings (62,067) (45,301)
----------- -----------
Total stockholders' equity 250,348 271,606
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,004,021 $ 2,072,148
=========== ===========
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,
---------------------- ----------------------
2008 2007 2008 2007
---------- ---------- ---------- ----------
REVENUES
Loans $ 28,686 $ 33,107 $ 61,125 $ 63,388
Securities 1,158 7,908 2,339 15,304
Leases 1,961 1,901 3,951 3,811
Interest income - other 453 910 1,826 1,311
---------- ---------- ---------- ----------
Interest income 32,258 43,826 69,241 83,814
Interest expense 18,924 30,222 42,072 56,989
---------- ---------- ---------- ----------
Net interest income 13,334 13,604 27,169 26,825
OPERATING EXPENSES
Management fees - related
party 1,171 2,027 2,909 4,059
Equity compensation-
related party 541 137 622 623
Professional services 664 541 1,456 1,233
Insurance expenses 170 114 298 235
General and
administrative 343 324 698 736
Income tax expense 138 26 167 171
---------- ---------- ---------- ----------
Total expenses 3,027 3,169 6,150 7,057
---------- ---------- ---------- ----------
NET OPERATING INCOME 10,307 10,435 21,019 19,768
---------- ---------- ---------- ----------
OTHER (EXPENSE) REVENUE
Net realized gains
(losses) on investments 102 152 (1,893) 222
Asset impairments - (788) - (788)
Other income 26 37 59 73
Provision for loan and
lease losses (15,692) - (16,829) -
Gain on the
extinguishment of debt - 1,750 -
---------- ---------- ----------
Total other (expenses)
revenues (15,564) (599) (16,913) (493)
---------- ---------- ---------- ----------
NET (LOSS) INCOME $ (5,257) $ 9,836 $ 4,106 $ 19,275
========== ========== ========== ==========
NET (LOSS) INCOME PER SHARE
- BASIC $ (0.21) $ 0.40 $ 0.17 $ 0.78
========== ========== ========== ==========
NET (LOSS) INCOME PER SHARE
- DILUTED $ (0.21) $ 0.39 $ 0.16 $ 0.77
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING -
BASIC 24,721,063 24,704,471 24,665,840 24,569,694
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING -
DILUTED 24,721,063 24,944,162 24,922,340 24,891,686
========== ========== ========== ==========
DIVIDENDS DECLARED PER
SHARE $ 0.41 $ 0.41 $ 0.82 $ 0.80
========== ========== ========== ==========
SCHEDULE I
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME (1)
(in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2008 2007 2008 2007
-------- --------- -------- ---------
Net (loss) income - GAAP $ (5,257) $ 9,836 $ 4,106 $ 19,275
Adjustments:
Provision for loan and lease losses
(2) 15,692 - 16,829 -
Realized loss on the sale of loans
included in provision (1,182) - (1,533) -
Asset impairments related to
ABS-RMBS Portfolio - 788 - 788
Capital losses on the sale of
available-for-sale
securities - - 2,000 -
Gain on the extinguishment of debt - - (1,750) -
-------- --------- -------- ---------
Adjusted net income, excluding
non-cash charges and
non-operating
capital transactions $ 9,253 $ 10,624 $ 19,652 $ 20,063
======== ========= ======== =========
Adjusted net income per share -
diluted, excluding
non-cash
charges and non-operating
capital transactions $ 0.37 $ 0.43 $ 0.79 $ 0.81
======== ========= ======== =========
(1) During 2007, RCC began evaluating its performance based on several
performance measures, including adjusted net income, in addition to net
income. Adjusted net income represents net income available to common
shares, computed in accordance with GAAP, before provision for loan and
lease losses, gain on the extinguishment of debt and non-operating
capital items. These items are recorded in accordance with GAAP and
are typically non-cash or non-operating items that do not impact RCC's
operating performance or ability to pay a dividend.
Management views adjusted net income as a useful and appropriate
supplement to GAAP net income (loss) because it helps management
evaluate RCC's performance without the effects of certain GAAP
adjustments that may not have a direct financial impact on RCC's
current operating performance and dividend paying ability. Management
uses adjusted net income to evaluate the performance of RCC's
investment portfolios, ability to manage its expenses and dividend
paying ability before the impact of non-cash adjustments and
non-operating capital gain or loss recorded in accordance with GAAP.
RCC believes this is a useful performance measure for investors to
evaluate these aspects of RCC's business as well. The most
significant adjustments RCC excludes in determining adjusted earnings
as of June 30, 2008 are its provision for loan and lease losses, gain
on the extinguishment of debt and losses on the sale of
available-for-sale securities. At June 30, 2007 RCC also excluded
asset impairments related to its ABS-RMBS portfolio that was
deconsolidated on November 13, 2007. Management excludes all such
items from its calculation of adjusted net income because these items
are not charges or losses which would impact RCC's current operating
performance. However, by excluding these significant items, adjusted
net income reduces an investor's understanding of RCC's operating
performance by excluding management's expectation of possible future
gains or losses from RCC's investment portfolio.
Adjusted net income, as a non-GAAP financial measurement, does not
purport to be an alternative to GAAP net income (loss), or a measure of
operating performance or cash flows from operating activities
determined in accordance with GAAP as a measure of liquidity. Instead,
adjusted net income should be reviewed in connection with net income
(loss) and cash flows from operating, investing and financing
activities in RCC's consolidated financial statements to help analyze
management's expectation of potential future losses from RCC's
investment portfolio and other non-cash or capital matters that impact
its financial results. Adjusted net income and other supplemental
performance measures are defined in various ways throughout the REIT
industry. Investors should consider these differences when comparing
RCC's adjusted net income to these other REITs.
(2) Non-cash charges for loan and lease losses.
SCHEDULE II
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET 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,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Net (loss) income - GAAP $ (5,257) $ 9,836 $ 4,106 $ 19,275
Adjustments:
Share-based compensation to
related parties (392) (345) (539) (340)
Incentive management fee expense
to related parties paid in
shares - 231 - 417
Capital loss carryover
(utilization)/losses from the
sale of securities - - 2,000 -
Provisions for loan and lease
losses unrealized 11,629 - 11,685 -
Net book to tax adjustments for
the Company's taxable foreign
REIT subsidiaries 3,462 (15) 4,237 (34)
Addback of GAAP loss reserve - 856 - 856
Other net book to tax adjustments 1 (45) 9 14
-------- -------- -------- --------
Estimated REIT taxable income $ 9,443 $ 10,518 $ 21,498 $ 20,188
======== ======== ======== ========
Amounts per share - diluted $ 0.38 $ 0.42 $ 0.86 $ 0.81
======== ======== ======== ========
(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 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 of RCC's domestic taxable REIT subsidiary, 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 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.
SCHEDULE III
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
June 30, 2008
-------------
Stockholders' equity - GAAP $ 250,348
Add:
Unrealized losses - CMBS portfolio 23,552
Unrealized losses recognized in excess of value at risk -
interest rate swaps 12,833
-------------
Economic book value $ 286,733
=============
Shares outstanding as of June 30, 2008 25,283
-------------
Economic book value per share $ 11.34
=============
(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
adjusted through stockholders' equity for market fluctuations.
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(in thousands)
(Unaudited)
Loans and Leasing Investment Statistics
The following table presents information on RCC's non-performing loans and
leases and related allowances as of June 30, 2008 and 2007 (based on par
value):
As of June 30,
------------------
2008 2007
-------- --------
Non-performing:
Loans and leases $ 17,283 $ -
Loans and leases as a percentage of total loans and
leases 0.9% -%
Allowance for loan and lease losses:
Specific provision $ 15,494 $ -
General provision 5,277 -
-------- --------
Total allowance for loan and leases $ 20,771 $ -
======== ========
Percentage of total 1.1% -%
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION, A NON-GAAP MEASURE
(Unaudited)
The following table presents commercial real estate loan portfolio
statistics as of June 30, 2008 (based on par value):
Security type
Whole loans 65.3%
Mezzanine loans 24.6%
B Notes 10.1%
-----
Total 100.0%
=====
Collateral type
Multifamily 30.7%
Hotel 24.7%
Office 23.0%
Retail 16.1%
Condo 1.6%
Flex 0.8%
Self-storage 0.7%
Other 2.4%
-----
Total 100.0%
=====
Collateral location
Southern California 25.2%
Northern California 15.5%
New York 10.5%
Arizona 8.2%
Texas 4.6%
Florida 4.3%
Tennessee 3.6%
Washington 3.5%
Colorado 3.4%
Other states
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.
