NEW YORK, NY, May 02, 2011 (MARKETWIRE via COMTEX) --
Highlights
-- Adjusted net income of $0.26 per share-diluted.
-- GAAP net income of $0.22 per share-diluted.
-- Estimated REIT taxable income of $0.14 per share-diluted.
-- Net interest income increased by $4.5 million, or 33% as compared to
the three months ended March 31, 2010.
-- Provisions for loan losses decreased by $12.8 million, or 83% as
compared to the three months ended March 31, 2010.
-- Common stock cash dividend of $0.25 per share.
-- $221.1 million of total cash, including unrestricted cash of $61.5
million at March 31, 2011.
-- Completed a public offering on March 30, 2011 and issued 6.9 million
shares which generated net proceeds of $46.6 million at a price of
$6.76 per common share.
-- Book value per common share increased from $5.99 at December 31, 2010
to $6.08 at March 31, 2011.
Resource Capital Corp. (NYSE: RSO) ("RSO" or the "Company"), a real estate investment trust, or REIT, whose investment strategy focuses on commercial real estate ("CRE") loan assets, commercial mortgage-backed securities ("CMBS"), commercial finance assets and structured note investments, reported results for the three months ended March 31, 2011.
-- Adjusted net income, a non-GAAP measure excluding the effect of
non-cash charges and non-operating capital transactions, was $15.7
million, or $0.26 per share-diluted for the three months ended March
31, 2011 as compared to $10.1 million, or $0.27 per share-diluted for
the three months ended March 31, 2010, an increase of $5.6 million, or
55%. For a reconciliation of adjusted net income to GAAP net income,
see Schedule I to this press release.
-- GAAP net income for the three months ended March 31, 2011 was $13.1
million, or $0.22 per share-diluted as compared to GAAP net income for
the three months ended March 31, 2010 of $1.4 million, or $0.04 per
share-diluted, an increase of $11.7 million, or 835%.
-- Estimated REIT taxable income, a non-GAAP measure, for the three months
ended March 31, 2011 was $8.6 million, or $0.14 per share-diluted as
compared to $9.3 million, or $0.24 per share-diluted for the three
months ended March 31, 2010, a decrease of $719,000, or 8%. For a
reconciliation of estimated REIT taxable income to GAAP net income, see
Schedule II to this press release.
Jonathan Cohen, CEO and President of Resource Capital Corp., commented, "This quarter demonstrates our ability to continue to reduce our real estate legacy assets with very little credit loss and move into higher income producing investments. We are excited by our ability to now increase our commercial real estate business and continue to expand our corporate loan business. I believe the growth in net interest income and book value per share are indicators of the strength of our business."
Additional financial results:
Commercial Real Estate
-- RSO received repayments on CRE loans of $1.9 million and sold two CRE
loans for proceeds of $24.6 million for the three months ended March
31, 2011.
-- RSO received repayments on CMBS investments of $1.2 million during the
three months ended March 31, 2011.
-- During the three months ended March 31, 2011, RSO acquired $22.5
million par value of CMBS at a weighted average price of 101%. The
majority of these purchases were financed by our new Wells Fargo
facility and are highly rated bonds. These purchases are anticipated
to provide a levered yield of approximately 13%.
-- RSO has negotiated and expects to sell two additional CRE positions in
Q2-2011:
-- $19.5 million mezzanine position secured by an office property for
par less associated costs of approximately $0.7 million.
-- $15.0 million B note secured by a hotel portfolio for a dollar price
of $85, for which we allowed a $2.25 million loss.
The following table summarizes RSO's CRE loan activities and fundings of previous commitments, at par, for the three months ended March 31, 2011 (in millions, except percentages):
Floating Weighted
Three Months 12 Months Weighted Average
Ended Ended Average Fixed
March 31, 2011 March 31, 2011 Spread (1) Rate (2)
-------------- -------------- --------- -------
Whole loans $ 18.3 $ 36.2
Whole loans -
future fundings (3) 1.6 4.7 3.10% 8.55%
============== ==============
New loans production 19.9 40.9
Sale of real estate
loans (24.6) (61.4)
Payoffs - (17.7)
Principal paydowns (1.9) (16.4)
-------------- --------------
Loans, net (4) $ (6.6) $ (54.6)
============== ==============
(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, 2011.
(2) Reflects rates on RSO's portfolio balance as of March 31, 2011.
(3) Consists of fundings of previous commitments.
(4) The basis of new net loans does not include provisions for losses on
CRE loans of $3.1 million for the three months ended March 31, 2011 and
$32.0 million for the 12 months ended March 31, 2011.
Commercial Finance - Syndicated Bank Loans
-- RSO's bank loan portfolio, including asset-backed securities ("ABS")
held-to-maturity and certain loans held for sale, ended the first
quarter with total investments of $905.3 million, at amortized cost,
with a weighted-average spread of one-month and three-month LIBOR plus
3.02%. All of RSO'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% (0.82% at March
31, 2011).
-- During the three months March 31, 2011, RSO bought bank loans through
its three CLOs with a par value of $162.0 million at modest net
discount of $1.6 million. These purchased loans had an aggregate
weighted average annual yield of approximately 4.64%.
-- On February 24, 2011, RSO entered into a definitive agreement that will
expand its management operations in broadly syndicated bank loans. A
subsidiary of RSO has purchased 100% of the ownership interests in
Churchill Pacific Asset Management LLC from Churchill Financial
Holdings LLC for $22.5 million and renamed it Resource Capital Asset
Management LLC ("RCAM"). Through RCAM, RSO will be entitled to collect
senior, subordinated and incentive fees related to five Collateralized
Loan Obligations ("CLOs") totaling approximately $1.9 billion in assets
managed by RCAM. RCAM will be assisted by Apidos Capital Management,
LLC, in managing the five CLOs. For the period from acquisition
through March 31, 2011, RCAM earned $1.6 million of net fees.
Commercial Finance - Preferred Stock Investment
On January 4, 2011, RSO made an investment, in conjunction with a debt financing commitment from Guggenheim Securities, in LEAF Commercial Capital, Inc. ("LCC"). LCC is a newly formed commercial finance company specializing in equipment leasing and is a subsidiary of LEAF Financial Corp ("LEAF"). LEAF contributed its leasing platform and directly-held leases and loans to LCC while RSO and Guggenheim Securities committed to investing up to $44.0 million of capital (which includes the option to invest an additional $10 million at a later date) in the form of preferred stock and subordinated debt, respectively, into LCC. A portion of RSO's investment consisted of the contribution of leases and loans and equity in these investments it had previously acquired from LEAF. In return, RSO received 2,626 shares of LEAF Commercial Series A preferred stock and warrants to purchase 4,800 shares of LCC common stock for an exercise price of $0.01 per share (representing 48% of LCC's common stock on a fully-diluted basis).
RSO's preferred stock investment in LCC has a stated dividend rate of 10% and earned $0.7 million in dividends during the period ended March 31, 2011.
Book Value
As of March 31, 2011, RSO's book value per common share was $6.08, an increase from $5.99 per common share at December 31, 2010. Total stockholders' equity was $427.2 million as of March 31, 2011 as compared to $348.3 million as of December 31, 2010. Total common shares outstanding were 70,320,966 as of March 31, 2011 as compared to 58,183,425 as of December 31, 2010.
Investment Portfolio
The table below summarizes the amortized cost and net carrying amount of RSO's investment portfolio as of March 31, 2011, classified by interest rate and by asset type. The following table includes both (i) the amortized cost of RSO'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 RSO'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
Net less
Amortized Dollar carrying Dollar amortized Dollar
cost (3) price amount price cost price
---------- ------ ---------- ------ --------- ------
March 31, 2011
Floating rate
CMBS-private
placement $ 29,946 100.00% $ 10,328 34.49% $ (19,618) -65.51%
Structured notes 21,989 26.25% 31,270 37.33% 9,281 11.08%
Other ABS - -% 23 0.26% 23 0.26%
B notes (1) 11,492 99.93% 11,324 98.47% (168) -1.46%
Mezzanine
loans (1) 81,878 100.00% 80,679 98.54% (1,199) -1.46%
Whole loans (1) 459,405 99.90% 437,906 95.23% (21,499) -4.67%
Bank loans (2) 865,910 97.37% 866,541 97.44% 631 0.07%
Loans held for
sale (3) 23,316 86.37% 23,316 86.37% - 0.00%
ABS held-to-
maturity (4) 29,206 91.46% 26,903 84.26% (2,303) -7.20%
---------- ---------- ---------
Total floating
rate 1,523,142 93.82% 1,488,290 91.67% (34,852) -2.15%
---------- ---------- ---------
Fixed rate
CMBS - private
placement 75,532 58.45% 80,738 62.48% 5,206 4.03%
B notes (1) 30,925 99.51% 30,472 98.05% (453) -1.46%
Mezzanine
loans (1) 14,004 100.40% 11,485 82.34% (2,519) -18.06%
Loans held for
sale (3) 19,528 100.14% 19,528 100.14% - 0.00%
Preferred stock 31,213 100.00% 31,213 100.00% - 0.00%
---------- ---------- ---------
Total fixed rate 171,202 76.10% 173,436 77.10% 2,234 1.00%
---------- ---------- ---------
Grand total $1,694,344 91.66% $1,661,726 89.90% $ (32,618) -1.76%
========== ========== =========
(1) Net carrying amount includes an allowance for loan losses of $25.9
million at March 31, 2011, allocated as follows: B notes ($621,000),
mezzanine loans ($3.7 million) and whole loans ($21.6 million).
(2) The bank loan portfolio is carried at amortized cost less allowance for
loan loss and was $864.1 million at March 31, 2011. The amount
disclosed represents net realizable value at March 31, 2011, which
includes a $1.8 million allowance for loan losses at March 31, 2011.
(3) Loans held for sale are carried at the lower of cost or market.
Amortized cost is equal to fair value.
(4) ABS held-to-maturity are carried at amortized cost less other-than-
temporary impairments.
Liquidity
At April 30, 2011, after disbursing the first quarter 2011 dividend, RSO's liquidity of $207.8 million consists of two primary sources:
-- unrestricted cash and cash equivalents of $38.3 million and restricted
cash of $2.0 million in margin call accounts; and
-- capital available for reinvestment in its five CDO entities of $167.5
million, of which $0.9 million is designated to finance future funding
commitments on CRE loans.
Capital Allocation
As of March 31, 2011, RSO had allocated its invested equity capital among its targeted asset classes as follows: 71% in CRE investments, 17% in commercial bank loans, 7% in its preferred equity investment in LCC and 5% in structured notes (trading securities).
Supplemental Information
The following schedules of reconciliations or supplemental information as of March 31, 2011 are included at the end of this release:
-- Schedule I - Reconciliation of GAAP Net Income to Adjusted Net Income;
and
-- Schedule II - Reconciliation of GAAP Net Income to Estimated REIT
Taxable Income; and
-- Schedule III - Summary of CDO and CLO Performance Statistics.
-- Supplemental Information regarding loan and leasing investment
statistics, CRE loans and bank loans.
About Resource Capital Corp.
RSO is a diversified real estate finance company that is organized and conducts its operations to qualify as a REIT for federal income tax purposes. RSO's investment strategy focuses on CRE and CRE-related assets, and, to a lesser extent, commercial finance assets. RSO invests in the following asset classes: CRE-related assets such as whole loans, A-notes, B-notes, mezzanine loans, commercial mortgage-backed securities and investments in real estate joint ventures as well as commercial finance assets such as bank loans, lease receivables, other asset-backed securities, trust preferred securities, debt tranches of CDOs, structured note investments, and private equity investments principally issued by financial institutions.
RSO 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 RSO'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. RSO'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 RSO'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 RSO'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 RSO'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 RSO 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.
RSO 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 RSO 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, RSO 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 RSO's unaudited consolidated balance sheets, unaudited consolidated statements of income, reconciliation of GAAP net income to adjusted net income, a reconciliation of GAAP net income to estimated REIT taxable income and a summary of CDO and CLO performance statistics and supplemental information regarding RSO'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,
2011 2010
----------- -----------
ASSETS (Unaudited)
Cash and cash equivalents $ 61,499 $ 29,488
Restricted cash 159,639 168,192
Investment securities-trading 31,270 17,723
Investment securities available-for-sale,
pledged as collateral, at fair value 84,733 57,998
Investment securities available-for-sale, at
fair value 37,569 5,962
Investment securities held-to-maturity, pledged
as collateral 29,206 29,036
Property available-for-sale 4,444 4,444
Loans, pledged as collateral and net of
allowances of $27.6 million and $34.2 million 1,435,945 1,443,271
Loans held for sale 42,844 28,593
Lease receivables, pledged as collateral, net
of allowances of $0 and $70,000 and net of
unearned income - 109,612
Loans receivable-related party 9,689 9,927
Investments in unconsolidated entities 6,789 6,791
Dividend reinvestment plan proceeds receivable - 10,000
Interest receivable 5,555 6,330
Deferred tax asset 4,401 4,401
Intangible asset 20,960 -
Other assets 3,093 2,432
----------- -----------
Total assets $ 1,937,636 $ 1,934,200
=========== ===========
LIABILITIES
Borrowings $ 1,463,701 $ 1,543,251
Distribution payable 17,590 14,555
Accrued interest expense 1,506 1,618
Derivatives, at fair value 12,009 13,292
Deferred tax liability 9,798 9,798
Accounts payable and other liabilities 5,829 3,360
----------- -----------
Total liabilities 1,510,433 1,585,874
----------- -----------
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; 70,320,966 and 58,183,425
shares issues and outstanding (including
1,158,875 and 534,957 unvested restricted
shares) 70 58
Additional paid-in capital 605,474 528,373
Accumulated other comprehensive loss (27,706) (33,918)
Distributions in excess of earnings (150,635) (146,187)
----------- -----------
Total stockholders' equity 427,203 348,326
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,937,636 $ 1,934,200
=========== ===========
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
(Unaudited)
Three Months Ended
March 31,
------------------------
2011 2010
----------- -----------
REVENUES
Net interest income:
Loans $ 20,148 $ 18,385
Securities 2,604 2,874
Leases - 235
Interest income - other 2,477 215
----------- -----------
Total interest income 25,229 21,709
Interest expense 6,933 7,937
----------- -----------
Net interest income 18,296 13,772
Dividend income 661 -
Fee income 1,646 -
----------- -----------
Total revenues 20,603 13,772
----------- -----------
OPERATING EXPENSES
Management fees - related party 2,338 1,152
Equity compensation - related party 460 722
Professional services 919 819
Insurance 177 212
General and administrative 945 647
Amortization of intangible asset 253 -
Income tax expense 1,809 105
----------- -----------
Total expenses 6,901 3,657
----------- -----------
NET OPERATING INCOME 13,702 10,115
----------- -----------
OTHER INCOME (EXPENSE)
Impairment losses on investment securities (665) (2,665)
Recognized in other comprehensive loss (665) (2,665)
----------- -----------
Net impairment losses recognized in earnings - -
Net realized gain on investment securities
available-for-sale and loans 35 146
Net realized gain on investment
securities-trading 2,263 -
Net unrealized loss on investment
securities-trading (336) -
Provision for loan and lease losses (2,606) (15,371)
Gain on the extinguishment of debt - 6,628
Other income (expense) 84 (112)
----------- -----------
Total other expenses (560) (8,709)
----------- -----------
NET INCOME $ 13,142 $ 1,406
=========== ===========
NET INCOME PER SHARE - BASIC $ 0.22 $ 0.04
=========== ===========
NET INCOME PER SHARE - DILUTED $ 0.22 $ 0.04
=========== ===========
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING - BASIC 60,147,820 37,987,192
=========== ===========
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING - DILUTED 60,397,630 38,150,605
=========== ===========
DIVIDENDS DECLARED PER SHARE $ 0.25 $ 0.25
=========== ===========
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
March 31,
------------------------
2011 2010
----------- -----------
Net income - GAAP $ 13,142 $ 1,406
Adjustments:
Provision for loan and lease losses (2) 2,606 15,371
Gains on the extinguishment of debt - (6,628)
----------- -----------
Adjusted net income, excluding non-cash
charges (1) $ 15,748 $ 10,149
=========== ===========
Adjusted net income per share - diluted,
excluding non-cash charges $ 0.26 $ 0.27
=========== ===========
(1) RSO evaluates its performance based on several performance measures,
including adjusted net income, in addition to net income and estimated
REIT taxable 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 RSO's operating performance or ability to pay a dividend.
Management views adjusted net income as a useful and appropriate
supplement to GAAP net income because it helps management evaluate
RSO's performance without the effects of certain GAAP adjustments that
may not have a direct financial impact on RSO's current operating
performance and dividend paying ability. Management uses adjusted net
income to evaluate the performance of RSO'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. RSO believes this is a useful
performance measure for investors to evaluate these aspects of RSO's
business as well. The most significant adjustments RSO excludes in
determining adjusted earnings as of March 31, 2011 and 2010 are its
provision for loan and lease losses, loss from asset impairments and
gain on the extinguishment of debt. Management excludes all such items
from its calculation of adjusted net income because these items are not
charges or losses which would impact RSO's current operating
performance. However, by excluding these significant items, adjusted
net income reduces an investor's understanding of RSO's operating
performance by excluding management's expectation of possible future
gains or losses from RSO's investment portfolio.
Adjusted net income, as a non-GAAP financial measurement, does not
purport to be an alternative to GAAP net income, 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
and cash flows from operating, investing and financing activities in
RSO's consolidated financial statements to help analyze management's
expectation of potential future losses from RSO'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 RSO'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)
(in thousands, except per share data)
(Unaudited)
RSO 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 to estimated REIT taxable income
for the periods presented (in thousands, except per share data):
Three Months Ended
March 31,
------------------------
2011 2010
----------- -----------
Net income - GAAP $ 13,142 $ 1,406
Taxable REIT subsidiary's (income) loss (2,004) (125)
----------- -----------
Adjusted net income 11,138 1,281
Adjustments:
Share-based compensation to related parties (93) (316)
Provision for loan and lease losses unrealized 3,122 15,500
Equity in income of real estate joint venture (4,473) -
Net book to tax adjustment for the inclusion
of our taxable foreign REIT subsidiaries (1,098) (6,378)
Subpart F income limitation (2) - 322
Other net book to tax adjustments 11 (1,083)
----------- -----------
Estimated REIT taxable income $ 8,607 $ 9,326
=========== ===========
Amounts per share - diluted $ 0.14 $ 0.24
=========== ===========
(1) RSO 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 RSO is required to declare to
its stockholders in order to maintain its status as a REIT for federal
income tax purposes. Since RSO, as a REIT, expects to make
distributions based on estimated REIT taxable income, RSO expects that
its distributions may at times be more or less than its reported GAAP
net income. Total estimated REIT taxable income is the aggregate amount
of estimated REIT taxable income generated by RSO and by its domestic
and foreign taxable REIT subsidiaries. Estimated REIT taxable income
excludes the undistributed taxable income (if any) of RSO's domestic
taxable REIT subsidiary, which is not included in REIT taxable income
until distributed to RSO. There is no requirement that RSO's domestic
taxable REIT subsidiary distribute its income to RSO. Estimated REIT
taxable income, however, includes the taxable income of RSO's foreign
taxable REIT subsidiaries because RSO 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 III
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUMMARY OF CDO AND CLO PERFORMANCE STATISTICS
(in thousands)
(Unaudited)
Collateralized Debt Obligations - Distributions and Coverage Test Summary
The following table sets forth collateralized debt obligations -
distributions and coverage test summary for the periods presented:
Annualized
Interest Overcollateral-
Coverage ization
Cash Distributions Cushion Cushion
------------------ -------- ------------------
Three
Months As of
Year Ended Ended As of As of Initial
December March March March Measure-
CDO 31, 2010 31, 2011 31, 2011 31, 2011 ment
Name Type (1) (1) (2)(3) (4) Date
------- -------- -------- -------- -------- --------
(actual) (actual)
Apidos CDO I CLO $ 7,695 $ 2,057 $ 9,639 $ 14,181 $ 17,136
Apidos CDO III CLO $ 6,552 $ 1,961 $ 3,885 $ 8,951 $ 11,269
Apidos Cinco CDO CLO $ 7,792 $ 2,304 $ 5,189 $ 21,906 $ 17,774
RREF 2006-1 CRE CDO $ 8,929 $ 1,773 $ 6,407 $ 10,512 $ 24,941
RREF 2007-1 CRE CDO $ 15,068 $ 3,317 $ 8,355 $ 10,857 $ 26,032
(1) Distributions on retained equity interests in CDOs (comprised of note
investment and preference share ownership).
(2) Interest coverage cushion 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 RSO'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 RSO's impaired loans and lease
receivables and related allowances for the periods indicated (based on
amortized cost):
March 31, December 31,
2011 2010
----------- -----------
Allowance for loan and lease receivable losses:
Specific allowance:
Commercial real estate loans $ 15,300 $ 20,844
Bank loans 112 112
----------- -----------
Total specific allowance (1) 15,412 20,956
----------- -----------
General allowance:
Commercial real estate loans 10,538 10,773
Bank loans 1,719 2,504
Lease receivables - 70
----------- -----------
Total general allowance 12,257 13,347
----------- -----------
Total allowance for loans and leases $ 27,669 $ 34,303
=========== ===========
Allowance as a percentage of total loans and
lease receivables 1.8% 2.1%
Loans held for sale:
Commercial Real Estate Loans:
Commercial real estate loans at cost $ 36,198 $ 39,187
Commercial real estate loans provision (3,244) (14,621)
----------- -----------
Commercial real estate loans held for sale 32,954 24,566
----------- -----------
Bank Loans:
Bank loans at cost $ 10,328 $ 5,172
Bank loans provision (438) (1,145)
----------- -----------
Bank loans held for sale 9,890 4,027
----------- -----------
Loans held for sale $ 42,844 $ 28,593
=========== ===========
(1) Includes allowances on the following assets: commercial real estate
loans of $36.0 million and bank loans of $361,000. A loan of
$5.0 million that was fully reserved as of December 31, 2010 was
charged off as of March 31, 2011.
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, 2011 (based on par value):
Security type:
Whole loans 76.9%
Mezzanine loans 16.0%
B Notes 7.1%
-------
Total 100.0%
=======
Collateral type:
Hotel 32.9%
Multifamily 32.7%
Office 14.0%
Retail 12.0%
Flex 1.2%
Self-storage 1.0%
Other 6.2%
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Total 100.0%
=======
Collateral location:
Southern California 27.9%
Northern California 13.8%
Arizona 9.5%
Florida 8.5%
Texas 5.5%
Washington 5.2%
Colorado 4.9%
New York 4.1%
Tennessee 3.7%
Other 16.9%
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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, 2011 (based on par value):
Industry type:
Healthcare, education and childcare 11.1%
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Diversified/conglomerate service 9.5%
Broadcasting and entertainment 7.4%
Printing and publishing 5.4%
Telecommunications 5.3%
Automobile 5.1%
Personal transportation 4.8%
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Retail stores 4.7%
Chemicals, plastics and rubber 4.7%
Electronics 4.5%
Personal, food and miscellaneous services 4.0%
Other 33.5%
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Total 100.0%
=======
CONTACT: DAVID J. BRYANT CHIEF FINANCIAL OFFICER RESOURCE CAPITAL CORP. 712 Fifth Ave, 12TH Floor New York, NY 10019 212-506-3870
SOURCE: Resource Capital Corp.
