NEW YORK, NY, Aug 02, 2010 (MARKETWIRE via COMTEX) --
Resource Capital Corp. (NYSE: RSO)
Highlights
-- Net income of $0.30 and $0.36 per share-diluted, respectively.
-- REIT taxable income of $0.30 and $0.55 per share-diluted, respectively.
-- Common stock cash dividend of $0.25 per share.
-- $147.1 million of total cash, including restricted cash, and no
short-term borrowings at June 30, 2010.
-- $170.3 million of total loans receivable repaid and settled.
-- Repurchased $36.1 million of its CDO notes for $19.7 million, a 45.5%
discount to par, for gains of $16.4 million during the second quarter
ended June 30, 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 commercial finance assets, reported results for the three and six months ended June 30, 2010.
-- Net income for the three and six months ended June 30, 2010 was $13.4
million, or $0.30 per share-diluted and $14.8 million, or $0.36 per
share-diluted, respectively, as compared to net loss for the three and
six months ended June 30, 2009 of $5.1 million, or $(0.21) per share
and $17.3 million, or $(0.71) per share, respectively.
-- REIT taxable income, a non-GAAP measure, for the three and six months
ended June 30, 2010, was $13.4 million, or $0.30 per share-diluted, and
$22.7 million, or $0.55 per share-diluted, respectively, as compared to
$5.3 million, or $0.21 per share-diluted, and $11.4 million, or $0.46
per share-diluted for the three and six months ended June 30, 2009,
respectively, increases of $8.1 million (152%) and $11.3 million
(99%), respectively.
-- On June 10, 2010, the Company declared a quarterly distribution of
$0.25 per share of common stock, $12.8 million in the aggregate, which
was paid on July 27, 2010 to stockholders of record on June 30, 2010.
-- Book value was $5.92 per common share as of June 30, 2010.
-- During the three months ended June 30, 2010, the Company realized gains
of $2.5 million from the trading of structured notes, a trading venture
with Resource Capital Markets, a related party, begun in June 2010,
with an intial seed investment of approximately $5.0 million.
-- During the three months ended June 30, 2010, the Company sold for
approximately $1.4 million its interest in a real estate joint venture
acquired in 2009 with a cost basis to the Company of $632,000,
resulting in an estimated gain of $753,000.
-- Subsequent to June 30th, the Company agreed to sell two loans, each for
approximately 85% of the Company's amortized cost, which sales resulted
in an additional $7.0 million charge to the provision for loan losses
for the quarter ended June 30, 2010 (representing 89% of the total of
$7.9 million for the quarter). RCC was motivated to sell these loans,
which were a B-note secured by an office building and a mezzanine loan
to the owner of a hotel portfolio with a carrying value of $23.3
million and $20.0 million, respectively, in order to reduce its
exposure to loans other than whole loans. The proceeds for the B-note
are included in the CDO cash available for reinvestment (restricted
cash as of July 31, 2010 in the liquidity update included in this
release). The sale of the mezzanine position is expected to close in
August 2010 and will add to CDO cash available for reinvestment upon
settlement.
-- In a recent development, on July 14, 2010, RCC repurchased $20.0
million par value of its CDO notes for $13.8 million, a 31.3% discount
to par, for an estimated gain of $6.3 million, or approximately $0.12
per share based on outstanding shares as of June 30, 2010.
Jonathan Cohen, CEO and President of Resource Capital Corp., commented, "Our second quarter results reflect our ability to continue to execute on our plan, even in a difficult economic environment. As we recently reported, we are making focused new investments of relatively small amounts in different areas which allows us to pick only the best risk-adjusted investments. As we make new investments, we continue our careful management of our existing portfolios and opportunistically repurchase our debt at discounted prices. We remain on track to distribute $0.25 per quarter for the rest of this year."
Additional financial results for the second quarter ended June 30, 2010:
General
-- RCC's net interest income increased by $3.0 million, or 24.0%, to $15.5
million for the second quarter ended June 30, 2010, from $12.5 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 second quarter ended June 30, 2010.
-- During the three months ended June 30, 2010, RCC bought through its CRE
CDOs CMBS of $7.5 million par value at a discount to par of 27.6%. The
net discount of $2.1 million improved the asset collateralization in
its CRE CDOs and these purchases provided a weighted average annual
yield of approximately 7.9%.
-- During the six months ended June 30, 2010, RCC bought through its CRE
CDOs CMBS of $15.2 million par value at a discount to par of 31.7%.
The net discount of $4.8 million improved the asset collateralization
in its CRE CDOs and these purchases provided a weighted average annual
yield of approximately 8.3%.
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, 2010 (in millions, except percentages) (unaudited):
Three Six
Months Months 12 Months Floating Weighted
Ended Ended Ended Weighted Average
June 30, June 30, June 30, Average Fixed
2010 2010 2010 Spread (1) Rate (2)
--------- --------- --------- --------- ---------
Whole loans (3) $ 1.5 $ 3.0 $ 10.9 2.56% 8.155%
--------- --------- ---------
New loans production 1.5 3.0 10.9
Sale of real estate
loans - - (29.8)
Payoffs - - (15.0)
Principal paydowns (11.4) (39.9) (64.5)
Whole loans, future
funding
obligations - - -
--------- --------- ---------
Net loans (4) $ (9.9) $ (36.9) $ (98.4)
========= ========= =========
(1) Represents the weighted average rate above the London Interbank Offered
Rate ("LIBOR") on loans whose interest rate is based on LIBOR as of
June 30, 2010.
(2) Reflects rates on RCC's portfolio balance as of June 30, 2010.
(3) Consists of fundings of loan commitments.
(4) The basis of new net loans does not include provisions for losses on
CRE loans of $8.5 million for the three months ended June 30, 2010,
$24.0 million for the six months ended June 30, 2010 and $41.8 million
for the 12 months ended June 30, 2010.
Commercial Finance
-- RCC's bank loan portfolio, including asset-backed securities ("ABS")
held-to-maturity, ended the second quarter with total investments of
$914.0 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% (0.94% at June 30, 2010).
-- During the three months ended June 30, 2010, RCC bought bank loans
through its CLOs par value of $93.6 million at a discount to par of
3.4%. The net discount of $3.1 million improved the asset
collateralization in its CLOs and these purchases provided a weighted
average annual yield of approximately 4.1%.
-- During the six months ended June 30, 2010, RCC bought bank loans
through its CLOs par value of $167.0 million at a discount to par of
5.0%. The net discount of $8.3 million improved the asset
collateralization in its CLOs and these purchases provided a weighted
average annual yield of approximately 4.0%.
-- During the three months ended June 30, 2010, the Company expanded its
equipment leasing and loan portfolio by the acquisition, through its
taxable REIT subsidiary, of a $118 million pool of equipment leases and
loans from an affiliate of its manager at a cost of $14 million plus
the assumption of $104 million of non-recourse, term notes secured by
the leases and loans. Guggenheim Securities, Inc. was the arranger and
initial purchaser of the notes. The Company believes it will realize
in excess of a 17% GAAP return on equity after all credit provisions.
The portfolio is predominantly comprised of small ticket business
equipment loans.
Book Value
As of June 30, 2010, RCC's book value per common share was $5.92. Total stockholders' equity was $301.8 million as of June 30, 2010 as compared to $228.8 million as of December 31, 2009. Total common shares outstanding were 50,968,334 as of June 30, 2010 as compared to 36,545,737 as of December 31, 2009. The increase in RCC's stockholders' equity of $73.0 million was substantially the result of its $42.8 million common stock offering in May 2010 combined with $32.5 million of common stock sales through the Company's Dividend Reinvestment Plan ("DRIP") during the six months ended June 30, 2010.
Investment Portfolio
The table below summarizes the amortized cost and net carrying amount of RCC's investment portfolio as of June 30, 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
amount less
Amortized Dollar Net carrying Dollar amortized Dollar
cost (3) price amount price cost price
---------- ------- ---------- ------- --------- -------
June 30, 2010
Floating rate
CMBS $ 31,133 100.00% $ 8,790 28.23% $ (22,343) -71.77%
Structured
notes 4,985 49.85% 4,985 49.85% - -%
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) 104,048 100.00% 103,255 99.24% (793) -0.76%
Whole loans (1) 446,271 99.99% 428,123 95.92% (18,148) -4.07%
Bank loans 881,659 96.76% 836,794(2) 91.84% (44,865) -4.92%
Loans held for
sale (3) 17,938 98.41% 17,938 98.41% - -%
ABS held-to-
maturity (4) 31,446 89.28% 22,272 63.24% (9,174) -26.04%
---------- ---------- ---------
Total floating
rate 1,543,980 97.05% 1,448,479 91.04% (95,501) -6.01%
---------- ---------- ---------
Fixed rate
CMBS 64,778 61.18% 46,715 44.12% (18,063) -17.06%
B notes (1) 31,053 99.62% 30,817 98.86% (236) -0.76%
Mezzanine
loans (1) 58,625 100.26% 51,447 87.99% (7,178) -12.27%
Whole loans (1) 2,403 97.60% 1,403 56.99% (1,000) -40.61%
Loans held for
sale (3) 19,825 84.37% 19,825 84.37% - -%
Leases and
loans (5) 118,578 100.00% 118,528 99.96% (50) -0.04%
---------- ---------- ---------
Total fixed
rate 295,262 86.83% 268,735 79.03% (26,527) -7.80%
---------- ---------- ---------
Grand total $1,839,242 95.25% $1,717,214 88.93% $(122,028) -6.32%
========== ========== =========
(1) Net carrying amount includes an allowance for loan losses of
$27.6 million at June 30, 2010, allocated as follows: B notes
($0.4 million), mezzanine loans ($8.0 million) and whole loans
($19.2 million).
(2) The bank loan portfolio is carried at amortized cost less allowance for
loan loss and was $870.4 million at June 30, 2010. The amount disclosed
represents net realizable value at June 30, 2010, which includes an
$11.3 million allowance for loan losses at June 30, 2010.
(3) Loans held for sale are carried at 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 $50,000 allowance for lease and loan
losses at June 30, 2010.
Liquidity
At July 31, 2010, after disbursing the second quarter 2010 dividend, RCC's liquidity of $138.9 million consists of three primary sources:
-- unrestricted cash and cash equivalents of $20.5 million and restricted
cash of $3.5 million in margin call accounts;
-- capital available for reinvestment in its five CDO entities of $109.6
million, of which $1.7 million is designated to finance future funding
commitments on CRE loans; and
-- capital available for reinvestment in its equipment backed securitized
notes of $5.3 million.
Capital Allocation
As of June 30, 2010, RCC had allocated its invested equity capital among its targeted asset classes as follows: 78% in CRE loans, 19% in commercial bank loans, 2% in leases and loans and 1% in structured notes.
Supplemental Information
The following schedules of reconciliations or supplemental information as of June 30, 2010 are included at the end of this release:
-- Schedule I - Reconciliation of GAAP Net Income (Loss) to Estimated REIT
Taxable Income; and
-- Schedule II - Summary of CDO and CLO Performance Statistics.
About Resource Capital Corp.
RCC is a diversified real estate finance company that is organized and conducts its operations to qualify 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, leases and loans, 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 may 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 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)
June 30, December 31,
2010 2009
----------- -----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 38,505 $ 51,991
Restricted cash 108,613 85,125
Investment securities available-for-sale,
pledged as collateral, at fair value 48,424 39,304
Investment securities available-for-sale, at
fair value 7,105 5,238
Investment securities, trading 4,985 -
Investment securities held-to-maturity, pledged
as collateral 31,446 31,401
Loans, pledged as collateral and net of
allowances of $38.9 million and $47.1 million 1,511,695 1,558,687
Loans held for sale 37,763 8,050
Leases and loans, net of allowances of $50,000
and $1.1 million and net of unearned income 118,528 927
Loans receivable - related party 9,999 -
Investments in unconsolidated entities 5,111 3,605
Interest receivable 5,587 5,754
Other assets 6,610 3,878
----------- -----------
Total assets $ 1,934,371 $ 1,793,960
=========== ===========
LIABILITIES
Borrowings $ 1,592,397 $ 1,536,500
Distribution payable 12,775 9,170
Accrued interest expense 1,746 1,516
Derivatives, at fair value 15,643 12,767
Accounts payable and other liabilities 9,997 5,177
----------- -----------
Total liabilities 1,632,558 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; 50,968,334 and 36,545,737
shares issued and outstanding (including
559,459 and 437,319 unvested restricted shares) 51 36
Additional paid-in capital 481,897 405,517
Accumulated other comprehensive loss (57,506) (62,154)
Distributions in excess of earnings (176,065) (114,569)
Retained earnings 53,436 -
----------- -----------
Total stockholders' equity 301,813 228,830
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,934,371 $ 1,793,960
=========== ===========
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,
---------------------- ----------------------
2010 2009 2010 2009
---------- ---------- ---------- ----------
REVENUES
Net interest income:
Loans $ 19,103 $ 21,507 $ 37,488 $ 44,128
Securities 2,895 1,345 5,769 2,766
Leases 1,928 2,093 2,163 4,326
Interest income - other 534 329 749 676
---------- ---------- ---------- ----------
Total interest income 24,460 25,274 46,169 51,896
Interest expense 8,929 12,748 16,866 26,625
---------- ---------- ---------- ----------
Net interest income 15,531 12,526 29,303 25,271
OPERATING EXPENSES
Management fees - related
party 4,288 925 5,440 1,926
Equity compensation -
related party 199 265 923 353
Professional services 876 1,089 1,695 2,053
Insurance expenses 180 217 392 389
Depreciation on operating
leases 685 - 685 -
General and administrative 862 462 1,507 867
Income tax expense 1,132 23 1,237 (22)
---------- ---------- ---------- ----------
Total expenses 8,222 2,981 11,879 5,566
---------- ---------- ---------- ----------
NET OPERATING INCOME 7,309 9,545 17,424 19,705
---------- ---------- ---------- ----------
OTHER REVENUE (EXPENSE)
Impairment losses on
investment securities (8,896) (2,261) (7,584) (16,925)
Recognized in other
comprehensive loss (2,838) (2,216) (1,526) (11,260)
---------- ---------- ---------- ----------
Net impairment losses
recognized in earrings (6,058) (45) (6,058) (5,665)
Net realized gains on loans
and investments 2,718 465 2,864 701
Provision for loan and
lease losses (7,897) (22,012) (23,268) (38,962)
Gain on the extinguishment
of debt 16,407 6,900 23,035 6,900
Other income 883 20 771 42
---------- ---------- ---------- ----------
Total other revenue
(expense) 6,053 (14,672) (2,656) (36,984)
---------- ---------- ---------- ----------
NET INCOME (LOSS) $ 13,362 $ (5,127) $ 14,768 $ (17,279)
========== ========== ========== ==========
NET INCOME (LOSS) PER
SHARE - BASIC $ 0.30 $ (0.21) $ 0.36 $ (0.71)
========== ========== ========== ==========
NET INCOME (LOSS) PER
SHARE - DILUTED $ 0.30 $ (0.21) $ 0.36 $ (0.71)
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING -
BASIC 44,424,281 24,369,581 41,223,517 24,427,452
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING -
DILUTED 44,724,087 24,369,581 41,555,127 24,427,452
========== ========== ========== ==========
DIVIDENDS DECLARED PER
SHARE $ 0.25 $ 0.30 $ 0.50 $ 0.60
========== ========== ========== ==========
SCHEDULE I
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME (LOSS)
TO ESTIMATED REIT TAXABLE INCOME (1)
(Unaudited)
RCC calculates estimated REIT taxable income, which is a non-GAAP financial
measure, according to the requirements of the Internal Revenue Code. The
following table reconciles GAAP net income (loss) to estimated REIT taxable
income for the periods presented (in thousands, except per share data):
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Net income (loss) - GAAP $ 13,362 $ (5,127) $ 14,768 $ (17,279)
Taxable REIT subsidiary's
(income) loss (1,345) 1,200 (1,470) 1,200
--------- --------- --------- ---------
Adjusted net income (loss) 12,017 (3,927) 13,298 (16,079)
Adjustments:
Share-based compensation to
related parties 202 12 (114) 29
Capital loss carryover
(utilization)/losses from
the sale of securities - (642) - 4,978
Provisions for loan and lease
losses unrealized 8,529 9,742 24,029 9,100
Asset Impairments 6,058 45 6,058 5,665
Equity in income of Real
Estate Joint Venture (4,891) - (4,891) -
Deferral of extinguishment of
debt income (8,307) - (8,307) -
Net book to tax adjustments
for our taxable foreign REIT
subsidiaries 261 145 (6,117) 7,735
Subpart F income limitation (322) - - -
Other net book to tax
adjustments (188) (77) (1,271) (32)
--------- --------- --------- ---------
Estimated REIT taxable income $ 13,359 $ 5,298 $ 22,685 $ 11,396
========= ========= ========= =========
Amounts per share - diluted $ 0.30 $ 0.21 $ 0.55 $ 0.46
========= ========= ========= =========
(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
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
--------------------- ---------- ---------------------
Six Months As of
Year Ended Ended As of Initial
December 31, June 30, June 30, June 30, Measurement
Name CDO Type 2009 (1) 2010 (1) 2010(2)(3) 2010 (4) Date
---------- ------- ---------- ---------- ---------- ---------- ----------
(actual) (actual)
Apidos CDO I CLO $ 6,643 $ 3,837 $ 1,898 $ 11,805 $ 17,136
Apidos CDO
III CLO $ 6,390 $ 3,066 $ 3,099 $ 6,773 $ 11,269
Apidos Cinco
CDO CLO $ 7,553 $ 3,714 $ 3,844 $ 18,457 $ 17,774
RREF 2006-1 CRE CDO $ 13,222 $ 5,195 $ 7,823 $ 11,295 $ 24,941
RREF 2007-1 CRE CDO $ 20,536 $ 7,947 $ 13,420 $ 22,454 $ 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, 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, 2010 and 2009 (based on amortized
cost):
As of June 30,
--------------------
2010 2009
--------- ---------
Impaired:
Loans and leases $ 112,567 $ 158,246
Loans and leases as a percentage of total 6.5% 9.2%
Allowance for loan and lease losses:
Specific allowance $ 27,938 $ 43,510
General allowance 10,976 16,162
--------- ---------
Total allowance for loans and leases $ 38,914 $ 59,672
========= =========
Allowance as a percentage of total loans and leases 2.2% 3.5%
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, 2010 (based on par value):
Security type:
Whole loans 63.0%
Mezzanine loans 25.6%
B Notes 11.4%
-----
Total 100.0%
=====
Collateral type:
Hotel 32.3%
Multifamily 25.3%
Office 24.5%
Retail 11.4%
Condo 1.0%
Flex 1.0%
Self-storage 0.9%
Other 3.6%
-----
Total 100.0%
=====
Collateral location:
Southern California 25.0%
Northern California 11.1%
New York 13.0%
Arizona 8.2%
Florida 6.2%
Texas 4.7%
Tennessee 4.4%
Washington 4.3%
Colorado 4.3%
Other 18.8%
-----
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, 2010 (based on par value):
Industry type:
Healthcare, education and childcare 12.1%
Diversified/conglomerate service 8.9%
Broadcasting and entertainment 7.5%
Chemicals, plastics and rubber 5.6%
Printing and publishing 5.2%
Retail stores 4.8%
Personal, food and miscellaneous services 4.7%
Automobiles 4.5%
Personal transportation 4.2%
Telecommunications 4.2%
Diversified/conglomerate manufacturing 4.0%
CLO securities 3.7%
Other 30.6%
-----
Total 100.0%
=====
The following table describes equipment leases and loans by industry as of
June 30, 2010 (based on par value):
Industry type:
Services 55.1%
Manufacturing 10.8%
Finance, insurance and real estate 9.8%
Retail Trade 6.8%
Wholesale Trade 6.0%
Transportation, communication, energy 5.1%
Construction 3.3%
Other 3.1%
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Total 100.0%
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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.
