NEW YORK, NY, Aug 03, 2009 (MARKETWIRE via COMTEX) -- Resource Capital Corp. (NYSE: RSO)
Second Quarter Highlights
-- Second quarter 2009 Net Operating Income per share of $0.39.
-- Second quarter 2009 common stock cash dividend of $0.30 per share.
-- Resource Capital Corp. repurchased $7.5 million of its corporate notes
for $600,000 or at a 92% discount to par since during the second quarter
2009.
-- Resource Capital Corp. has $69.3 million of liquidity at June 30,
2009.
-- During the second quarter 2009, Resource Capital Corp. had $114.6
million of loans repaid or settled and eliminated $12.4 million of future
funding obligations.
Resource Capital Corp. (NYSE: RSO) ("RCC" or the "Company"), a real estate investment trust whose investment strategy focuses on commercial real estate ("CRE") loan assets and, to a lesser extent, commercial finance assets, reported results for the second quarter ended June 30, 2009.
Other Highlights
-- Net operating income for the three and six months ended June 30, 2009
was $9.5 million, or $0.39 per share and $19.7 million, or $0.81 per share,
respectively, as compared $10.3 million, or $0.42 per share and $21.0
million, or $0.84 per share, for the three and six months ended June 30,
2008, respectively, a decrease of $762,000 (7%) and $1.3 million (6%),
respectively.
-- REIT taxable income, a non-GAAP measure, for the three and six months
ended June 30, 2009 was $5.3 million, or $0.21 per share-diluted, and $11.4
million, or $0.46 per share-diluted, respectively, as compared to $9.4
million or $0.38 per share-diluted and $21.5 million or $0.86 per share-
diluted for the three and six months ended June 30, 2008, respectively, a
decrease of $4.1 million (44%) and $10.1 million (47%), respectively.
-- GAAP net loss for the quarter ended June 30, 2009 of $5.1 million, or
(-$0.21) per share, including provisions for loan and lease losses of $20.0
million and net unrealized losses on bank loans held for sale of $1.9
million or a total of (-$0.90) per share, as compared to GAAP net loss for
the quarter ended June 30, 2008 of (-$0.21) per share-diluted including
provisions for loan and lease losses of $15.7 million or (-$0.62) per share-
diluted. GAAP net loss for the six months ended June 30, 2009 of $17.3
million, or (-$0.71) per share, including provisions for loan and lease
losses of $28.0 million, net unrealized losses on bank loans held for sale
of $10.9 million and other-than-temporary impairment charges of $5.6
million or a total of (-$1.82) per share, as compared to GAAP net income
for the six months ended June 30, 2008 of $0.16 per share-diluted including
provisions for loan and lease losses of $16.8 million or (-$0.67) per share-
diluted.
-- RCC announced a dividend of $0.30 per common share for the quarter
ended June 30, 2009, $7.5 million in the aggregate, paid on July 28, 2009
to stockholders of record as of June 19, 2009.
-- Economic book value, a non-GAAP measure, was $9.25 per common share as
of June 30, 2009.
-- GAAP book value was $6.66 per common share as of June 30, 2009.
-- RCC reduced the balance of its non-recourse repurchase facility
funding CRE loans to $3.3 million as of June 30, 2009 from $16.0 million as
of March 31, 2009. This facility is secured by $24.6 million of pledged
collateral.
Jonathan Cohen commented, "Although during the last few months the real estate market has continued to deteriorate, the bank loan market seems to have improved, our cash flow remained strong and our portfolio continued to perform decently as we worked diligently with our borrowers. Currently, we are focused on (i) asset management, (ii) exploiting the disconnect in the debt and equity marketplaces through select purchases of our own securities, (iii) building cash on our balance sheet and (iv) de-leveraging our real estate portfolios. Again, we look forward to paying a meaningful cash dividend for the third quarter."
Additional financial results for the second quarter ended June 30, 2009 and recent developments include:
General
-- RCC's net interest income decreased by $808,000, or 6%, to $12.5
million for the second quarter ended June 30, 2009, from $13.3 million for
the same period in 2008.
Commercial Real Estate
-- RCC funded commitments on existing CRE loans, on a gross basis, of
$27.3 million during the second quarter ended June 30, 2009.
The following table summarizes RCC's CRE loan repayment and orgination activities (including future funding obligations), at par, for the three, six and 12 months ended June 30, 2009 (in millions, except percentages) (unaudited):
Three Six 12 Floating
Months Months Months Weighted Weighted
Ended Ended Ended Average Average
June 30, June 30, June 30, Spread Fixed
2009 2009 2009 (1) (2) Rate (1)
-------- -------- -------- -------- --------
Whole loans (3) $ 27.3 $ 30.9 $ 44.7 2.97% 7.90%
Whole loans, future
funding obligations - - - N/A N/A
-------- -------- --------
New loans production 27.3 30.9 44.7
Sale of real estate
loans (29.8) (29.8) (29.8)
Payoffs - (7.0) (59.5)
Principal paydowns (6.2) (16.7) (29.0)
Whole loans, future
funding obligations - - -
-------- -------- --------
Net - new loans (4) $ (8.7) $ (22.6) $ (73.6)
======== ======== ========
(1) Reflects rates on RCC's portfolio balance as of June 30, 2009.
(2) Represents the weighted average rate above the London Interbank
Offered Rate ("LIBOR") on loans whose interest rate is based on LIBOR.
(3) Includes fundings of previous commitments on transitional loans of
$3.7 million for the three months ended June 30, 2009, $7.3 million
for the six months ended June 30, 2009 and $21.1 million for the
12 months ended June 30, 2009.
(4) The basis of new net loans does not include provisions for losses on
CRE loans of $9.1 million for the three months ended June 30, 2009,
$14.1 million for the six months ended June 30, 2009 and $17.2 million
for the 12 months ended June 30, 2009.
Commercial Finance
-- RCC's bank loan portfolio ended the second quarter with total
investments of $927.4 million, at amortized cost, with a weighted-average
spread of one-month and three-month LIBOR plus 2.52%. All of RCC's bank
loan portfolio is match-funded through three collateralized loan obligation
("CLO") issuances with a weighted-average cost of three-month LIBOR plus
0.47%. During the quarter ended June 30, 2009, RCC received $78.6 million
of bank loan paydowns and repayments.
Book Value
As of June 30, 2009, RCC's GAAP book value per common share was $6.66. Total stockholders' equity was $165.9 million as of June 30, 2009 as compared to $186.3 million as of December 31, 2008. Total common shares outstanding were 24,911,944 as of June 30, 2009 as compared to 25,344,867 as of December 31, 2008. The net decrease in RCC's stockholders' equity of $20.4 million was primarily the result of increased provisions for loan and lease losses of $28.0 million, losses on RCC's bank loan portfolio of $10.9 million, combined with a decrease in the value of marked-to-market securities of $11.3 million, which was partially offset by an increase in the value of interest rate swaps of $19.9 million and a gain on the extinguishment of debt of $6.9 million.
As of June 30, 2009, RCC's economic book value per share, a non-GAAP measure, was $9.25. Economic book value is computed by adding back to GAAP book value any unrealized losses on the Company's investments in commercial mortgage-backed securities ("CMBS") for which it expects to recover full par value at maturity, and on derivatives (cash flow hedges) that are associated with fixed-rate loans which it intends to hold until maturity, in excess of its value at risk, and that have not been adjusted through stockholders' equity for market fluctuations (see Note 1 of Schedule II in this release). Economic book value per share is computed by dividing the economic book value by the number of shares outstanding at the end of the period.
Investment Portfolio
The table below summarizes the amortized cost and net carrying amount of RCC's investment portfolio as of June 30, 2009, classified by interest rate type. The following table includes both (i) the amortized cost of RCC's investment portfolio and the related dollar price, which is computed by dividing amortized cost by par amount, and (ii) the net carrying amount of RCC's investment portfolio and the related dollar price, which is computed by dividing the net carrying amount by par amount (in thousands, except percentages) (unaudited):
Net
carrying
amount
Net less
Amortized Dollar carrying Dollar amortized Dollar
cost (3) price amount price cost price
----------- ------ ----------- ------ ---------- ------
June 30, 2009
-------------
Floating rate
-------------
CMBS-private
placement $ 32,064 100.00% $ 11,095 34.60% $ (20,969) -65.40%
B notes (1) 26,500 100.00% 26,399 99.62% (101) -0.38%
Mezzanine loans
(1) 129,184 100.00% 128,795 99.70% (389) -0.30%
Whole loans (1) 426,292 99.88% 415,865 97.44% (10,427) -2.44%
Bank loans (2) 924,988 97.83% 747,000 79.00% (177,988) -18.83%
Bank loans held
for sale (3) 2,401 100.00% 2,401 100.00% - -%
----------- ----------- ----------
Total
floating
rate 1,541,429 98.65% 1,331,555 85.22% (209,874) -13.43%
----------- ----------- ----------
Fixed rate
----------
CMBS - private
placement 38,614 91.78% 7,080 16.83% (31,534) -74.95%
B notes (1) 55,256 100.08% 55,089 99.78% (167) -0.30%
Mezzanine loans
(1) 81,313 94.76% 68,418 79.73% (12,895) -15.03%
Whole loans (1) 78,846 99.63% 78,614 99.34% (232) -0.29%
Equipment
leases and
loans (4) 3,433 100.03% 2,833 82.55% (600) -17.48%
----------- ----------- ----------
Total fixed
rate 257,462 96.92% 212,034 79.81% (45,428) -17.11%
----------- ----------- ----------
Grand
total $ 1,798,891 98.40% $ 1,543,589 84.44% $ (255,302) -13.96%
=========== =========== ==========
(1) Net carrying amount includes an allowance for loan losses of $24.2
million at June 30, 2009, allocated as follows: B notes
($0.3 million), mezzanine loans ($13.3 million) and whole loans
($10.6 million).
(2) The bank loan portfolio is carried at amortized cost less allowance
for loan loss and was $890.1 million at June 30, 2009. Amount
disclosed represents net realizable value at June 30, 2009, which
includes $34.9 million allowance for loan losses at June 30, 2009.
(3) Bank loans held for sale are carried at fair value and, therefore,
amortized cost is equal to fair value.
(4) Net carrying amount includes a $0.6 million allowance for equipment
leases and loans losses at June 30, 2009.
Liquidity
At July 31, 2009, after disbursing the second quarter 2009 dividend, there were three primary sources for RCC's liquidity:
-- unrestricted cash and cash equivalents of $7.0 million and restricted
cash of $5.4 million in margin call accounts;
-- capital available for reinvestment in its five collateralized debt
obligation ("CDO") entities of $38.2 million, of which $3.0 million is
designated to finance future funding commitments on CRE loans; and
-- RCC has $96.7 million of unused capacity under a three-year non-
recourse CRE repurchase facility, which, however, requires approval of
individual repurchase transactions by the repurchase counterparty.
Capital Allocation
As of June 30, 2009, RCC had allocated its equity capital among its targeted asset classes as follows: 72% in CRE loans, 27% in commercial bank loans and 1% in direct financing leases and notes.
Supplemental Information
The following schedules of reconciliations or supplemental information as of June 30, 2009 are included at the end of this release:
-- Schedule I - Reconciliation of GAAP Net (Loss) Income to Estimated
REIT Taxable Income;
-- Schedule II - Reconciliation of GAAP Stockholders' Equity to Economic
Book Value; and
-- Schedule III - Summary of RCC's CDO and CLO Performance Statistics.
About Resource Capital Corp.
RCC is a diversified real estate finance company that qualifies as a real estate investment trust, or REIT, for federal income tax purposes. RCC's investment strategy focuses on CRE-related assets, and, to a lesser extent, commercial finance assets. RCC invests in the following asset classes: CRE-related assets such as whole loans, A-notes, B-notes, mezzanine loans and mortgage-related securities and commercial finance assets such as other asset-backed securities, bank loans, equipment leases and notes, trust preferred securities, debt tranches of CDOs and private equity investments principally issued by financial institutions.
RCC is externally managed by Resource Capital Manager, Inc., an indirect wholly-owned subsidiary of Resource America, Inc. (NASDAQ: REXI), a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the financial fund management, real estate, and commercial finance sectors.
For more information, please visit RCC's website at www.resourcecapitalcorp.com or contact investor relations at pkamdar@resourceamerica.com
Safe Harbor Statement
Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. RCC's actual results, performance or achievements could differ materially from those expressed or implied in this release. The risks and uncertainties associated with forward-looking statements contained in this release include those related to:
-- fluctuations in interest rates and related hedging activities;
-- capital markets conditions and the availability of financing;
-- defaults or bankruptcies by borrowers on RCC's loans or on loans
underlying its investments;
-- adverse market trends which have affected and may continue to affect
the value of real estate and other assets underlying RCC's investments;
-- increases in financing or administrative costs; and
-- general business and economic conditions that have impaired and may
continue to impair the credit quality of borrowers and RCC's ability to
originate loans.
For further information concerning these and other risks pertaining to the forward-looking statements contained in this release, and to the general risks to which RCC is subject, see Item 1A, "Risk Factors" included in its annual report on Form 10-K and in other of its public filings with the Securities and Exchange Commission.
RCC cautions you not to place undue reliance on any forward-looking statements contained in this release, which speak only as of the date of this release. All subsequent written and oral forward-looking statements attributable to RCC or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this release. Except to the extent required by applicable law or regulation, RCC undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this filing or to reflect the occurrence of unanticipated events.
The remainder of this release contains RCC's unaudited consolidated balance sheets, consolidated statements of operations and reconciliations of GAAP net (loss) income to estimated REIT taxable income, GAAP stockholders' equity to economic book value, summary of RCC's CDO and CLO performance statistics and supplemental information regarding RCC's CRE loan and bank loan portfolios.
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
June 30, December 31,
2009 2008
----------- -----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 10,553 $ 14,583
Restricted cash 58,728 60,394
Investment securities available-for-sale,
pledged as collateral, at fair value 13,940 22,466
Investment securities available-for-sale, at
fair value 4,236 6,794
Loans, pledged as collateral and net of
allowances of $59.1 million and
$43.9 million 1,663,306 1,712,779
Loans held for sale, at fair value 2,401 -
Direct financing leases and notes, pledged as
collateral, net of allowance of
$600,000 and $450,000 and net of unearned
income 2,833 104,015
Investments in unconsolidated entities 1,548 1,548
Interest receivable 6,331 8,440
Principal paydown receivables 59 950
Other assets 10,623 4,062
----------- -----------
Total assets $ 1,774,558 $ 1,936,031
=========== ===========
LIABILITIES
Borrowings $ 1,584,664 $ 1,699,763
Distribution payable 7,532 9,942
Accrued interest expense 2,325 4,712
Derivatives, at fair value 11,830 31,589
Accounts payable and other liabilities 2,305 3,720
----------- -----------
Total liabilities 1,608,656 1,749,726
----------- -----------
STOCKHOLDERS' EQUITY
Preferred stock, par value $0.001:
100,000,000 shares authorized;
no shares issued and outstanding - -
Common stock, par value $0.001: 500,000,000
shares authorized; 24,911,944 and
25,344,867 shares issued and outstanding
(including 466,446 and 452,310 unvested
restricted shares) 26 26
Additional paid-in capital 353,831 356,103
Accumulated other comprehensive loss (66,446) (80,707)
Distributions in excess of earnings (121,509) (89,117)
----------- -----------
Total stockholders' equity 165,902 186,305
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,774,558 $ 1,936,031
=========== ===========
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2009 2008 2009 2008
---------- ---------- ---------- ----------
REVENUES
Net interest income:
Loans $ 21,969 $ 28,686 $ 45,129 $ 61,125
Securities 883 1,158 1,765 2,339
Leases 2,093 1,961 4,326 3,951
Interest income -
other 329 453 676 1,826
---------- ---------- ---------- ----------
Total interest
income 25,274 32,258 51,896 69,241
Interest expense 12,748 18,924 26,625 42,072
---------- ---------- ---------- ----------
Net interest income 12,526 13,334 25,271 27,169
OPERATING EXPENSES
Management fees - related
party 925 1,171 1,926 2,909
Equity compensation -
related party 265 541 353 622
Professional services 1,089 664 2,053 1,456
Insurance expenses 217 170 389 298
General and
administrative 441 343 846 698
Income tax expense 44 138 (1) 167
---------- ---------- ---------- ----------
Total expenses 2,981 3,027 5,566 6,150
---------- ---------- ---------- ----------
NET OPERATING INCOME 9,545 10,307 19,705 21,019
---------- ---------- ---------- ----------
OTHER (EXPENSE) REVENUE
Net realized and
unrealized losses
(gains) on
investments (1,608) 102 (15,953) (1,893)
Other income 20 26 42 59
Provision for loan and
lease losses (19,984) (15,692) (27,973) (16,829)
Gain on the
extinguishment of debt 6,900 - 6,900 1,750
---------- ---------- ---------- ----------
Total other expenses (14,672) (15,564) (36,984) (16,913)
---------- ---------- ---------- ----------
NET (LOSS) INCOME $ (5,127) $ (5,257) $ (17,279) $ 4,106
========== ========== ========== ==========
NET (LOSS) INCOME PER SHARE
- BASIC $ (0.21) $ (0.21) $ (0.71) $ 0.17
========== ========== ========== ==========
NET (LOSS) INCOME PER SHARE
- DILUTED $ (0.21) $ (0.21) $ (0.71) $ 0.16
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING -
BASIC 24,369,581 24,721,063 24,427,452 24,665,840
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING -
DILUTED 24,369,581 24,721,063 24,427,452 24,922,340
========== ========== ========== ==========
DIVIDENDS DECLARED PER
SHARE $ 0.30 $ 0.41 $ 0.60 $ 0.82
========== ========== ========== ==========
SCHEDULE I
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET (LOSS) INCOME
TO ESTIMATED REIT TAXABLE INCOME (1)
(Unaudited)
RCC calculates estimated REIT taxable income, which is a non-GAAP financial
measure, according to the requirements of the Internal Revenue Code.
The following table reconciles net income to estimated REIT taxable
income for the periods presented (in thousands, except per share data):
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2009 2008 2009 2008
--------- --------- --------- ---------
Net (loss) income - GAAP $ (5,127) $ (5,257) $ (17,279) $ 4,106
Taxable REIT subsidiary's
loss 1,200 - 1,200 -
--------- --------- --------- ---------
Adjusted net (loss) income (3,927) (5,257) (16,079) 4,106
Adjustments:
Share-based compensation to
related parties 12 (392) 29 (539)
Capital loss carryover
(utilization)/losses
from the sale of securities (642) - 4,978 2,000
Provisions for loan and lease
losses unrealized 9,787 11,629 14,765 11,685
Net book to tax adjustments
for the Company's taxable
foreign REIT subsidiaries 145 3,462 7,735 4,237
Other net book to tax
adjustments (77) 1 (32) 9
--------- --------- --------- ---------
Estimated REIT taxable income $ 5,298 $ 9,443 $ 11,396 $ 21,498
========= ========= ========= =========
Amounts per share - diluted $ 0.21 $ 0.38 $ 0.46 $ 0.86
========= ========= ========= =========
(1) RCC believes that a presentation of estimated REIT taxable income
provides useful information to investors regarding its financial
condition and results of operations as it uses this measurement to
determine the amount of dividends that it is required to declare to its
stockholders in order to maintain its status as a REIT for federal
income tax purposes. Since RCC, as a REIT, expects to make
distributions based on taxable earnings, RCC expects that its
distributions may at times be more or less than its reported GAAP
earnings. Total taxable income is the aggregate amount of taxable
income generated by RCC and by its domestic and foreign taxable REIT
subsidiaries. Estimated REIT taxable income excludes the undistributed
taxable income of RCC's domestic TRS, if any such income exists,
which is not included in REIT taxable income until distributed to RCC.
There is no requirement that RCC's domestic TRS distribute its
earnings to RCC. Estimated REIT taxable income, however, includes
the taxable income of RCC's foreign TRSs because RCC will generally be
required to recognize and report their taxable income on a current
basis. Because not all companies use identical calculations, this
presentation of estimated REIT taxable income may not be comparable
to other similarly-titled measures of other companies.
(2) Denominator for the three and six months ended June 30, 2009
includes 282,566 and 262,515 shares, respectively, that were not
included in the calculation of GAAP earnings per share because the
effect would have been anti-dilutive due to RCC's net loss for the
three and six months ended June 30, 2009. The dilutive shares
relate to restricted stock that has not yet vested at June 30, 2009.
SCHEDULE II
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
RECONCILIATION OF GAAP STOCKHOLDERS' EQUITY TO ECONOMIC BOOK VALUE (1)
(in thousands, except per share data)
(Unaudited)
As of
June 30,
2009
---------
Stockholders' equity - GAAP $ 165,902
Add:
Unrealized losses - CMBS portfolio 52,503
Unrealized losses recognized in excess of value at risk -
interest rate swaps (2) 11,934
---------
Economic book value $ 230,339
=========
Shares outstanding 24,912
---------
Economic book value per share $ 9.25
=========
(1) Management views economic book value, a non-GAAP measure, as a useful
and appropriate supplement to GAAP stockholders' equity and book value
per share. The measure serves as an additional measure of RCC's value
because it facilitates evaluation of RCC without the effects of
unrealized losses on investments for which RCC expects to recover full
par value at maturity and on interest rate swaps, which RCC intends to
hold to maturity, in excess of RCC's value at risk. Unrealized losses
recognized in RCC's financial statements, prepared in accordance with
GAAP, that are in excess of RCC's maximum value at risk are added back
to stockholders' equity in arriving at economic book value. Economic
book value should be reviewed in connection with GAAP stockholders'
equity as set forth in RCC's consolidated balance sheets, to help
analyze RCC's value to investors. Economic book value is defined in
various ways throughout the REIT industry. Investors should consider
these differences when comparing RCC's economic book value to that of
other REITs.
(2) RCC adds back unrealized losses on interest rate swaps (cash flow
hedges) that are associated with fixed-rate loans that have not
been adjusted through stockholders' equity for market fluctuations.
SCHEDULE III
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUMMARY OF RCC's CDO AND CLO PERFORMANCE STATISTICS
(in thousands)
(Unaudited)
Collateralized Debt Obligations - Distributions and Coverage Test Summary
Annualized
Interest
Coverage Overcollateralization
Cash Distributions Cushion Cushion
------------------- --------- --------------------
Year Six
Ended Months Value on
December Ended June 30, Initial
31, June 30, 2009 June 30, Measurement
CDO Type 2008 (1) 2009 (2)(3) 2009 (4) Date
--------- --------- --------- --------- --------- ----------
(actual) (actual)
Apidos CDO I CLO $ 8,957 $ 3,532 $ 4,692 $ 5,199 $ 17,136
Apidos CDO III CLO $ 6,725 $ 3,360 $ 2,814 $ 3,518 $ 11,269
Apidos Cinco
CDO CLO $ 9,470 $ 4,107 $ 3,563 $ 15,340 $ 17,774
RREF 2006-1 CRE CDO $ 13,245 $ 7,120 $ 12,437 $ 27,518 $ 24,941
RREF 2007-1 CRE CDO $ 18,149 $ 10,737 $ 16,956 $ 18,671 $ 26,032
(1) Distributions on retained equity interests in CDOs (comprised of note
investment and preference share ownership); see Note 8 of RCC's Form
10-K for the year ended December 31, 2008 for a more detailed
discussion of RCC's equity interests.
(2) Interest coverage includes annualized amounts based on most recent
trustee statements.
(3) Interest coverage cushion represents the amount by which annualized
interest income expected exceeds the annualized amount payable on all
classes of CDO notes senior to the Company's preference shares.
(4) Overcollateralization cushion represents the amount by which the
collateral held by the CDO issuer exceeds the maximum amount required.
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(in thousands, except percentages)
(Unaudited)
Loan and Leasing Investment Statistics
The following table presents information on RCC's impaired loans and
leases and related allowances as of June 30, 2009 and 2008 (based on
amortized cost):
As of June 30,
--------------------
2009 2008
--------- ---------
Impaired:
Loans and leases $ 158,246 $ 17,283
Impaired loans and leases to total loans and leases 9.2% 0.9%
Allowance for loan and lease losses:
Specific provision $ 43,510 $ 15,494
General provision 16,162 5,277
--------- ---------
Total allowance for loans and leases $ 59,672 $ 20,771
========= =========
Allowance for loan and lease losses to total loans
and leases 3.5% 1.1%
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Unaudited)
The following table presents CRE loan portfolio statistics as of
June 30, 2009 (based on par value):
Security type
Whole loans 64.4%
Mezzanine loans 25.2%
B Notes 10.4%
-----
Total 100.0%
=====
Collateral type
Multifamily 31.2%
Hotel 28.6%
Office 22.2%
Retail 12.4%
Condo 0.9%
Flex 0.9%
Self-storage 0.8%
Other 3.0%
-----
Total 100.0%
=====
Collateral location
Southern California 23.2%
Northern California 16.9%
New York 11.9%
Arizona 7.5%
Florida 5.7%
Texas 4.3%
Tennessee 4.1%
Washington 4.0%
Colorado 3.9%
Other 18.5%
-----
Total 100.0%
=====
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Unaudited)
The following table presents bank loan portfolio statistics by industry
as of June 30, 2009 (based on par value):
Industry type
Healthcare, education and childcare 12.0%
Diversified/conglomerate service 8.8%
Broadcasting and entertainment 6.6%
Printing and publishing 5.9%
Chemicals, plastics and rubber 5.7%
Retail stores 4.7%
Hotels, motels, inns and gaming 4.2%
Finance 3.9%
Automobiles 3.9%
Telecommunications 3.8%
Other 40.5%
-----
Total 100.0%
=====
CONTACT: David J. Bryant Chief Financial Officer Resource Capital Corp. 1845 Walnut Street 10th Floor Philadelphia, PA 19103 215/546-5005, 215/546-5388 (fax)
SOURCE: Resource Capital Corp.
