NEW YORK, NY, May 03, 2010 (MARKETWIRE via COMTEX) --Resource Capital Corp. (NYSE: RSO)
Highlights -- Net operating income of $0.26 per share-diluted;
-- Net income of $0.04 per share-diluted;
-- Common stock cash dividend of $0.25 per share;
-- Repurchased $20.3 million of its corporate notes for $13.6 million,
a 32.7% discount to par, for gains of $6.6 million during the
quarter ended March 31, 2010;
-- $73.6 million of total loans receivable repaid and settled;
-- $109.8 million of total cash, including restricted cash and no
short-term borrowings at March 31, 2010; and
-- In a recent development, on April 12, 2010, RCC repurchased
$26.6 million par value of its corporate notes for $16.1 million,
a 39.5% discount to par, for an estimated gain of $10.5 million,
or approximately $0.25 per share based on outstanding shares
as of April 28, 2010.
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 first quarter ended March 31, 2010.
Financial Results
-- Net operating income for the three months ended March 31, 2010 was
$10.0 million, or $0.26 per share-diluted as compared to $10.2
million, or $0.42 per share-diluted for the three months ended
March 31, 2009.
-- Net income for the three months ended March 31, 2010 was $1.4
million, or $0.04 per share-diluted, as compared to net loss
for the three months ended March 31, 2009 of $12.2 million, or
($0.50) per share-diluted. The three months ended March 31, 2010
includes provisions for loan and lease losses of $15.4 million,
net realized gains on bank loans and securities held-to-maturity
totaling $146,000 and a gain on the extinguishment of debt of
$6.6 million that, in the aggregate, decreased net income
by ($0.22) per share-diluted. The three months ended March 31,
2009 includes provisions for loan and lease losses of $17.0
million and other-than-temporary impairment charges of $5.6
million, that, in the aggregate, reduced net income by
($0.92) per share-diluted.
-- REIT taxable income, a non-GAAP measure, for the first quarter
ended March 31, 2010 was $9.3 million or $0.24 per share-diluted
as compared to $6.1 million or $0.25 per share-diluted for the
first quarter ended March 31, 2009, an increase of $3.2 million
(53%).
-- On April 27, 2010, RCC paid a cash dividend of $0.25 per common
share, or $10.1 million, to stockholders of record as of March 31,
2010.
-- Book value was $5.98 per common share as of March 31, 2010.
Jonathan Cohen, CEO and President of Resource Capital Corp., commented, "We continue to deleverage our real estate loan portfolio, build cash and continue to benefit from the underwriting we did in 2005 to 2007. As the markets heal, we are seeing improvements in operating performance at the properties collateralizing our loans, increased commitment from our borrowers and real liquidity in the marketplace. We believe that we are seeing economic fundamentals finally going in our favor. We are particularly proud that we were able to do this and to maintain throughout the worst of the downturn a meaningful cash dividend to our shareholders, and we are committed to continuing to do so. We are exploring opportunities to make new loans and investments in order to fully utilize the platforms that we have maintained."
Additional financial results for the first quarter ended March 31, 2010:
General
-- RCC's net interest income increased by $891,000, or 7.0%, to
$13.6 million for the first quarter ended March 31, 2010, as
compared to $12.7 million for the same period in 2009.
Commercial Real Estate
-- RCC funded commitments on existing CRE loans on a gross basis of
$1.5 million during the three months ended March 31, 2010.
-- RCC bought and retained CMBS of $7.7 million par value at a
discount to par of 35.7% for the three months ended March 31,
2010. The net discount of $2.8 million improved the
collateralization on its CRE collateralized debt obligations
("CDO") and these purchases provided a yield of approximately
8.7%.
The following table summarizes RCC's CRE loan activities and fundings of previous commitments, at par, for the three and 12 months ended March 31, 2010 (in millions, except percentages):
Three Months 12 Months Floating Weighted
Ended Ended Weighted Average
March 31, March 31, Average Fixed Rate
2010 2010 Spread (1) (2)
---------- ---------- ---------- ----------
Whole loans (3) $ 1.5 $ 36.6 3.17% 8.14%
========== ==========
New loans production (3) 1.5 36.6
Sale of real estate loans - (29.8)
Payoffs - (15.0)
Principal paydowns (28.6) (64.5)
---------- ----------
Loans, net (4) $ (27.1) $ (72.7)
========== ==========
(1) Represents the weighted average rate above the London Interbank
Offered Rate ("LIBOR") on loans whose interest rate is based on LIBOR
as of March 31, 2010.
(2) Reflects rates on RCC's portfolio balance as of March 31, 2010.
(3) Consists of fundings of previous commitments.
(4) The basis of new net loans does not include provisions for losses on
CRE loans of $15.5 million for the three months ended March 31, 2010
and $42.4 million for the 12 months ended March 31, 2010.
Commercial Finance
-- RCC's bank loan portfolio ended the first quarter with total
investments of $906.0 million, at amortized cost, with a
weighted-average spread of one-month and three-month LIBOR plus
2.70%. 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 bought and retained bank loans of $73.4 million par value at
a discount to par of 7.0% for the three months ended March 31,
2010. The net discount of $5.2 million improved the
collateralization on its CLO collateralized debt obligations and
these purchases provided a yield of approximately 3.8%.
Book Value
As of March 31, 2010, RCC's book value per common share was $5.98. Total stockholders' equity was $239.6 million as of March 31, 2010 as compared to $228.8 million as of December 31, 2009. Total common shares outstanding were 40,079,753 as of March 31, 2010 as compared to 36,545,737 as of December 31, 2009. The increase in RCC's stockholder's equity of $10.8 million was substantially the result of the receipt of $18.0 million of proceeds related to the Company's Dividend Reinvestment Plan (DRIP).
As of March 31, 2010, RCC's economic book value per common share outstanding, a non-GAAP measure, was $8.30. 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 and net unrealized accretion on bank loan investments that were purchased at a discount (see Notes 1 to 3 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 March 31, 2010, 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 (3) price amount price cost price
---------- ------ ---------- ----- --------- ------
March 31, 2010
Floating rate
CMBS - private
placement $ 32,043 100.00% $ 10,322 32.21% $ (21,721) -67.79%
Other ABS 24 0.29% 24 0.29% - -%
B notes (1) 26,500 100.00% 26,298 99.24% (202) -0.76%
Mezzanine loans(1) 124,048 100.00% 123,101 99.24% (947) -0.76%
Whole loans (1) 410,657 99.98% 407,387 99.18% (3,270) -0.80%
Bank loans 872,085 96.69% 843,454(2) 93.51% (28,631) -3.18%
Bank loans held
for sale (3) 2,376 88.99% 2,376 88.99% - -%
ABS held-to-
maturity (4) 31,559 89.06% 23,189 65.44% (8,370) -23.62%
---------- ---------- ---------
Total floating
rate 1,499,292 97.25% 1,436,151 93.15% (63,141) -4.10%
---------- ---------- ---------
Fixed rate
CMBS - private
placement 66,125 65.16% 40,978 40.38% (25,147) -24.78%
B notes (1) 54,820 100.03% 54,402 99.27% (418) -0.76%
Mezzanine loans(1) 58,634 100.27% 51,788 88.56% (6,846) -11.71%
Whole loans (1) 46,721 99.83% 32,371 69.17% (14,350) -30.66%
Equipment leases
and loans (5) 10,975 100.01% 10,325 94.09% (650) -5.92%
---------- ---------- ---------
Total fixed rate 237,275 87.06% 189,864 69.67% (47,411) -17.39%
---------- ---------- ---------
Grand total $1,736,567 95.72% $1,626,015 89.62% $(110,552) -6.10%
========== ========== =========
(1) Net carrying amount includes an allowance for loan losses of $26.0
million at March 31, 2010, allocated as follows: B notes ($0.6
million), mezzanine loans ($7.8 million) and whole loans ($17.6
million).
(2) The bank loan portfolio is carried at amortized cost less allowance
for loan loss and was $860.2 million at March 31, 2010. Amount
disclosed represents net realizable value at March 31, 2010, which
includes $11.9 million allowance for loan losses at March 31, 2010.
(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 $650,000 allowance for equipment lease
and loan losses at March 31, 2010.
Liquidity
At April 30, 2010, after paying the fourth quarter dividend, RCC's liquidity of $116.4 million consists of two primary sources:
-- unrestricted cash and cash equivalents of $17.9 million and
restricted cash of $3.5 million in margin call accounts; and
-- capital available for reinvestment in its five CDO entities of
$95.0 million, of which $1.7 million is designated to finance
future funding commitments on CRE loans.
Capital Allocation
As of March 31, 2010, RCC had allocated its invested equity capital among its targeted asset classes as follows: 74.6% in commercial real estate loans, 22.5% in commercial bank loans and 2.9% in direct financing leases and loans.
Supplemental Information
The following reconciliations and supplemental statistics as of March 31, 2010 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, unaudited 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)
March 31, December 31,
2010 2009
------------ ------------
ASSETS (Unaudited)
Cash and cash equivalents $ 27,650 $ 51,991
Restricted cash 82,176 85,125
Investment securities available-for-sale,
pledged as collateral, at fair value 46,086 39,304
Investment securities available-for-sale, at
fair value 5,238 5,238
Investment securities held-to-maturity,
pledged as collateral 31,559 31,401
Loans, pledged as collateral and net of
allowances of $37.9 million and $47.1 million 1,555,593 1,558,687
Loans held for sale 2,376 8,050
Direct financing leases and notes, net of
allowances of $650,000 and $1.1 million
and net of unearned income 10,325 927
Loans receivable - related parties 10,000 -
Investments in unconsolidated entities 4,040 3,605
Interest receivable 5,367 5,754
Other assets 4,735 3,878
------------ ------------
Total assets $ 1,785,145 $ 1,793,960
============ ============
LIABILITIES
Borrowings $ 1,517,330 $ 1,536,500
Distribution payable 10,053 9,170
Accrued interest expense 1,551 1,516
Derivatives, at fair value 13,267 12,767
Accounts payable and other liabilities 3,297 5,177
------------ ------------
Total liabilities 1,545,498 1,565,130
------------ ------------
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; 40,079,753 and 36,545,737
shares issued and outstanding (including
566,575 and 437,319 unvested restricted shares) 40 36
Additional paid-in capital 424,586 405,517
Accumulated other comprehensive loss (61,761) (62,154)
Distributions in excess of earnings (123,218) (114,569)
------------ ------------
Total stockholders' equity 239,647 228,830
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,785,145 $ 1,793,960
============ ============
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended
March 31,
----------------------
2010 2009
---------- ----------
REVENUES
Net interest income:
Loans $ 18,267 $ 22,620
Securities 2,874 1,422
Leases 235 2,233
Interest income - other 197 347
---------- ----------
Total interest income 21,573 26,622
Interest expense 7,937 13,877
---------- ----------
Net interest income 13,636 12,745
---------- ----------
OPERATING EXPENSES
Management fees - related party 1,152 1,001
Equity compensation - related party 724 88
Professional services 819 964
Insurance expense 212 172
General and administrative 645 405
Income tax expense (benefit) 105 (45)
---------- ----------
Total expenses 3,657 2,585
---------- ----------
NET OPERATING INCOME 9,979 10,160
---------- ----------
OTHER INCOME (EXPENSES)
Impairment losses on investment securities (2,665) (14,916)
Recognized in other comprehensive loss (2,665) (9,296)
---------- ----------
Net impairment losses recognized in earnings - (5,620)
Net realized gains on loans and investments 146 237
Provision for loan and lease losses (15,371) (16,951)
Gain on the extinguishment of debt 6,628 -
Other income 24 22
---------- ----------
Total expenses (8,573) (22,312)
---------- ----------
NET INCOME (LOSS) $ 1,406 $ (12,152)
========== ==========
NET INCOME (LOSS) PER SHARE - BASIC $ 0.04 $ (0.50)
========== ==========
NET INCOME (LOSS) PER SHARE - DILUTED $ 0.04 $ (0.50)
========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING - BASIC 37,987,192 24,467,408
========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING - DILUTED 38,150,605 24,467,408
========== ==========
DIVIDENDS DECLARED PER SHARE $ 0.25 $ 0.30
========== ==========
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
March 31,
--------------------
2010 2009
--------- ---------
Net income (loss) - GAAP $ 1,406 $ (12,152)
Taxable REIT subsidiary's income (125) -
--------- ---------
Adjusted net income (loss) 1,281 (12,152)
Adjustments:
Share-based compensation to related parties (316) 17
Capital loss carryover losses from the sale of
securities 15,500 5,620
Provisions for loan and lease losses unrealized - 4,978
Net book to tax adjustments for the Company's
taxable foreign REIT subsidiaries (6,378) 7,590
Subpart F income limitation (2) 322 -
Other net book to tax adjustments (1,083) 45
--------- ---------
Estimated REIT taxable income $ 9,326 $ 6,098
========= =========
Amounts per share - diluted $ 0.24 $ 0.25
========= =========
(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)
(in thousands, except per share data)
(Unaudited)
As of
March 31, 2010
--------------
Stockholders' equity - GAAP $ 239,647
Add:
Unrealized losses - CMBS portfolio 46,869
Unrealized losses recognized in excess of value at risk -
interest rate swaps (2) 13,277
Unrealized net accretion of bank loans purchased at a
discount (3) 32,845
--------------
Economic book value $ 332,638
==============
Shares outstanding 40,079,753
--------------
Economic book value per share $ 8.30
==============
(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 and unrealized
net discounts on loans and securities 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.
(3) RCC adds back unrealized net accretion of those bank loans which were
purchased at a net discount and will be accreted into interest income
over the lives of the loans or securities using the effective yield
method, adjusted for the effects of estimated prepayments. If the
investment is purchased at a discount or at a premium, the effective
yield is computed based on the contractual interest rate increased for
the accretion of a purchase discount or decreased for the amortization
of a purchase premium. The effective yield method requires the Company
to make estimates of future prepayment rates for its investments that
can be contractually prepaid before their contractual maturity date so
that the purchase discount can be accreted, or the purchase premium can
be amortized, over the estimated remaining life of the investment. The
prepayment estimates that the Company uses directly impact the
estimated remaining lives of its investments. Actual prepayment
estimates are reviewed as of each quarter end or more frequently if the
Company becomes aware of any material information that would lead it to
believe that an adjustment is necessary. If prepayment estimates are
incorrect, the amortization or accretion of premiums and discounts may
have to be adjusted, which would have an impact on future income.
In addition to prepayment estimates and their impact on the accretion
of premiums and discounts, RCC's accretion of premiums and discounts
may be affected by loan defaults and modifications. Loan defaults and
modifications may result in an adjustment to the amount of loan
principal collectible by RCC. If a loan principal amount is reduced
because of loan impairment or a loan modification, i.e. a concession,
the result would impact the amount of discount that could be accreted
into income since RCC could only recognize the amount of the discount
up to the realizable loan principal. If RCC's estimate of realizable
loan balances are incorrect, the amortization or accretion of premiums
and discounts may have to be adjusted, which would also have an impact
on future income.
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 As of
Ended Quarter Initial
December Ended As of Measure-
31, March 31, March 31, March 31, ment
Name CDO Type 2009 (1) 2010 (1) 2010(2) (3) 2010 (4) Date
-------- --------- --------- --------- --------- ---------
(actual) (actual)
Apidos CDO I CLO $ 6,643 $ 1,948 $ 1,926 $ 10,323 $ 17,136
Apidos CDO III CLO $ 6,390 $ 1,468 $ 2,886 $ 5,486 $ 11,269
Apidos Cinco CDO CLO $ 7,553 $ 1,766 $ 4,028 $ 16,625 $ 17,774
RREF 2006-1 CRE CDO $ 13,222 $ 2,709 $ 8,440 $ 16,298 $ 24,941
RREF 2007-1 CRE CDO $ 20,536 $ 4,264 $ 12,762 $ 20,316 $ 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)
Loan and Leasing Investment Statistics
The following table presents information on RCC's impaired loans and leases
and related allowances as of March 31, 2010 and 2009 (based on amortized
costs):
As of March 31,
--------------------
2010 2009
--------- ---------
Impaired:
Loans and leases $ 120,646 $ 67,561
Loans and leases as a percentage of total 7.4% 3.6%
Allowance for loan and lease losses:
Specific provision $ 20,766 $ 33,393
General provision 17,757 14,008
--------- ---------
Total allowance for loans and leases $ 38,523 $ 47,401
========= =========
Allowance as a percentage of total loans and leases 2.4% 2.6%
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION, A NON-GAAP MEASURE
(Unaudited)
The following table presents commercial real estate loan portfolio
statistics as of March 31, 2010 (based on par value):
Security type
Whole loans 63.4%
Mezzanine loans 25.3%
B Notes 11.3%
------
Total 100.0%
======
Collateral type
Hotel 31.7%
Multifamily 26.4%
Office 24.2%
Retail 11.2%
Condo 1.0%
Flex 1.0%
Self-storage 0.9%
Other 3.6%
------
Total 100.0%
======
Collateral location
Southern California 25.9%
Northern California 10.9%
New York 12.8%
Arizona 8.1%
Florida 6.2%
Texas 4.6%
Tennessee 4.4%
Washington 4.3%
Colorado 4.2%
Other 18.6%
------
Total 100.0%
======
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Unaudited)
The following table presents bank loan portfolio statistics by industry as
of March 31, 2010 (based on par value):
Industry type
Healthcare, education and childcare 12.5%
Diversified/conglomerate service 8.9%
Broadcasting and entertainment 8.9%
Chemicals, plastics and rubber 5.9%
Printing and publishing 5.0%
Retail stores 4.9%
Personal transportation 4.5%
Personal, food and miscellaneous services 4.5%
Automobiles 4.3%
Telecommunications 3.9%
CLO securities 3.8%
Diversified/conglomerate manufacturing 3.4%
Other 29.5%
------
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.
