NEW YORK, NY, Mar 07, 2012 (MARKETWIRE via COMTEX) --Resource Capital Corp. (NYSE: RSO)
Highlights
-- Adjusted Funds from Operations ("AFFO") of $0.22 and $0.90 per
share-diluted.
-- GAAP net income of $0.01 and $0.53 per share-diluted.
-- Total revenues increased by $9.6 million, or 51% and increased by
$26.7 million, or 40% as compared to the three months and year ended
December 31, 2010, respectively.
-- Provisions for loan losses decreased by 65% and 68% as compared to the
three months and year ended December 31, 2010, respectively.
-- Common stock cash dividend of $0.25 and $1.00 per share.
-- Cash on hand of $185.9 million at December 31, 2011, an increase of
$8.5 million from $177.4 million at September 30, 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") assets, commercial mortgage-backed securities ("CMBS"), commercial finance assets and other investments, reported results for the three months and year ended December 31, 2011.
-- AFFO for the three months and year ended December 31, 2011 was $17.0
million, or $0.22 per share-diluted, and $63.9 million, or $0.90 per
share-diluted, respectively. A reconciliation of GAAP net income to
AFFO is set forth in Schedule I of this release.
-- GAAP net income for the three months and year ended December 31, 2011
was $413,000, or $0.01 per share-diluted, and $37.7 million, or $0.53
per share-diluted, respectively, as compared to GAAP net loss for the
three months ended December 31, 2010 of $9.4 million, or $0.17 per
share-diluted and GAAP net income for the year ended December 31, 2010
of $19.4 million, or $0.41 per share-diluted, respectively, increases
of $9.8 million, or 104%, and $18.3 million, or 94%, respectively.
Jonathan Cohen, CEO and President of Resource Capital Corp., commented, "During the year ended 2011, Resource Capital significantly increased its operating revenues, grew its capital base, and positioned its core businesses for further growth, and improved the credit quality of our portfolio. We did all this while providing a very good cash distribution to our shareholders. In 2012, we plan on continuing to grow our core businesses and also to build book value through investments that have longer term appreciation prospects."
Additional highlights:
Commercial Real Estate
-- The Company received repayments and paydowns on CRE loans of $43.1
million and sold six CRE loans for proceeds of $69.7 million for the
year ended December 31, 2011.
-- CRE loan portfolio is now comprised of approximately 87% senior whole
loans as of December 31, 2011, as compared to 67% a year ago.
-- The Company originated $139.0 million of whole loans in the year ended
December 31, 2011 with a weighted average yield of 7.31%, as compared
to $17.9 million with a weighted average yield of 8.4% originated
during the year ended December 31, 2010.
-- The Company has committed over $15 million to new CRE whole loans
closed and expected to close in the first quarter of 2012 from an
ongoing pipeline of new CRE loans of over $250 million.
-- During the three months ended December 31, 2011, a joint venture
focused on distressed real estate between RSO and an institutional
partner sold two real estate investments that provided cash proceeds
to RSO of $2.9 million, and resulted in gains of approximately $1.1
million. The joint venture is anticipating the sale of another
investment in March 2012 with expected net cash proceeds and an
estimated gain to RSO of $1.2 million.
The following table summarizes RSO's CRE loan activities and fundings of previous commitments, at par, for the three months and year ended December 31, 2011 (in millions, except percentages):
Three
Months Year Floating Weighted
Ended Ended Weighted Average
December December Average Fixed Rate
31, 2011 31, 2011 Spread (1) (2)
--------- --------- ---------- ----------
Whole loans $ 34.5 $ 139.0 3.45% 10.07%
Whole loans - future fundings
(3) 2.8 10.6
========= =========
New loans production 37.3 149.6
Sale of real estate loans (14.4) (88.0)
Payoffs (10.0) (36.0)
Principal paydowns (0.0) (8.1)
--------- ---------
Loans, net (4) $ 12.9 $ 17.5
========= =========
(1) Represents the weighted average rate above the London Interbank Offered Rate ("LIBOR") on loans whose interest rate is based on LIBOR as of December 31, 2011. Of these new loans, $120.0 million have LIBOR floors with a weighted average rate of 3.10%. (2) Reflects rates on RSO's portfolio balance as of December 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 $0.9 million for the three months ended December 31, 2011 and $6.5 million for the year ended December 31, 2011.
CMBS Securities
-- During the year ended December 31, 2011, RSO acquired $102.4 million,
par value, of commercial mortgage backed securities ("CMBS") at a
weighted average price of 99.6%. Of these 2011 CMBS purchases, $72.8
million, par value, were financed by RSO's Wells Fargo repurchase
facility and were AAA rated by at least one rating agency.
Commercial Finance - Syndicated Bank Loans
-- RSO's bank loan portfolio, including asset-backed securities ("ABS")
and certain loans held for sale, at the end of the fourth quarter was
$1.2 billion, at amortized cost, with a weighted-average spread of
one-month and three-month LIBOR plus 3.19% at December 31, 2011. RSO's
bank loan portfolio is 100% match-funded through four collateralized
loan obligation ("CLO") issuances.
-- RSO, through its subsidiary Resource Capital Asset Management, earned
$7.8 million of net fees from February 24, 2011, the date of
acquisition, through December 31, 2011.
Apidos CLO VIII ("CLO VIII")
-- RSO closed CLO VIII, its fourth CLO, on October 13, 2011, with $317.6
million of notes issued at a weighted average cost of three-month
LIBOR plus 1.83% or 2.42% at December 31, 2011. RSO retained an
investment of $15.0 million of an aggregate total of $34.7 million of
subordinated notes in CLO VIII. Apidos Capital Management manages CLO
VIII and RSO's investment in the structure.
-- During the three months and year ended December 31, 2011, RSO bought
bank loans through its four CLOs with a par value of $236.4 million
and $827.2 million, respectively, at a significant net discount of
$11.5 million and $24.9 million, respectively. These purchased loans
had an aggregate weighted average unlevered annual yield of
approximately 4.12%.
Book Value
As of December 31, 2011, RSO's book value per common share was $5.38. Total stockholders' equity was $429.7 million as of December 31, 2011 as compared to $348.3 million as of December 31, 2010. Total common shares outstanding were 79,877,516 as of December 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 December 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
---------- ------ ---------- ------ ---------- ------
December 31, 2011
Floating rate
RMBS $ 8,729 18.60% $ 7,120 15.17% $ (1,609) -3.43%
CMBS-private
placement 28,691 100.00% 8,311 28.97% (20,380) -71.03%
Structured notes 27,345 41.53% 31,553 47.93% 4,208 6.40%
ABS 28,513 88.21% 25,201 77.96% (3,312) -10.25%
Other ABS - 0.00% 23 0.28% 23 0.28%
Mezzanine loans
(1) 53,908 99.97% 53,077 98.43% (831) -1.54%
Whole loans (1) 537,708 99.79% 515,176 95.61% (22,532) -4.18%
Bank loans (2) 1,170,599 97.33% 1,142,907 95.03% (27,692) -2.30%
Loans held for
sale (3) 3,154 54.59% 3,154 54.59% - 0.00%
---------- ---------- ----------
Total floating
rate 1,858,647 93.71% 1,786,522 90.08% (72,125) -3.63%
---------- ---------- ----------
Fixed rate
CMBS - private
placement 132,821 71.94% 124,509 67.44% (8,312) -4.50%
B notes (1) 16,435 99.13% 16,182 97.61% (253) -1.52%
Mezzanine loans
(1) 13,966 100.35% 13,361 96.00% (605) -4.35%
Whole loans (1) 6,965 99.47% 6,965 99.47% - 0.00%
Loans receivable-
related party 9,497 100.00% 9,497 100.00% - 0.00%
---------- ---------- ----------
Total fixed rate 179,684 77.58% 170,514 73.62% (9,170) -3.96%
---------- ---------- ----------
Other (non-
interest bearing)
Investment in real
estate 48,027 100.00% 48,027 100.00% - 0.00%
Investment in
unconsolidated
entities 47,899 100.00% 47,899 100.00% - 0.00%
---------- ---------- ----------
Total other 95,926 100.00% 95,926 100.00% - 0.00%
---------- ---------- ----------
Grand total $2,134,257 92.36% $2,052,962 88.84% $ (81,295) -3.52%
========== ========== ==========
(1) Net carrying amount includes an allowance for loan losses of $24.2 million at December 31, 2011, allocated as follows: B notes ($253,000), mezzanine loans ($1.4 million) and whole loans ($22.5 million). (2) The bank loan portfolio is carried at amortized cost less allowance for loan loss and was $1.2 billion at December 31, 2011. The amount disclosed represents net realizable value at December 31, 2011, which includes a $3.3 million allowance for loan losses at December 31, 2011. (3) Loans held for sale are carried at the lower of cost or market. Amortized cost is equal to fair value.
Liquidity
At February 29, 2012, after paying RSO's fourth quarter dividend, RSO's liquidity of $158.3 million consisted of two primary sources:
-- unrestricted cash and cash equivalents of $44.7 million, restricted
cash of $1.0 million in margin call accounts and $2.9 million in the
form of real estate escrows, reserves and deposits; and
-- capital available for reinvestment in its six CDO entities of $109.7
million, of which $1.6 million is designated to finance future funding
commitments on CRE loans.
In addition, RSO has availability through two CRE term facilities to finance the purchase of CMBS securities and origination of commercial real estate loans of $38.6 million and $150.0 million, respectively.
Capital Allocation
As of December 31, 2011, RSO had allocated its invested equity capital among its targeted asset classes as follows: 63.0% in CRE assets, 30.6% in commercial finance assets and 6.4% in other investments.
Supplemental Information
The following schedules of reconciliations or supplemental information as of December 31, 2011 are included at the end of this release:
-- Schedule I - Reconciliation of GAAP Net Income to Funds from
Operations ("FFO") and AFFO.
-- Schedule II - 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 commercial real estate property, whole loans, A-notes, B-notes, mezzanine loans, CMBS 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 FFO and AFFO 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)
December 31,
----------------------------
2011 2010
------------- -------------
(unaudited)
ASSETS
Cash and cash equivalents $ 43,116 $ 29,488
Restricted cash 142,806 168,192
Investment securities, trading 38,673 17,723
Investment securities available-for-sale,
pledged as collateral, at fair value 153,366 57,998
Investment securities available-for-sale, at
fair value 4,678 5,962
Investment securities held-to-maturity,
pledged as collateral - 29,036
Property available-for-sale 2,980 4,444
Investment in real estate 48,027 -
Loans, pledged as collateral and net of
allowances of $27.5 million and $34.2
million 1,772,063 1,443,271
Loans held for sale 3,154 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 9,497 9,927
Investments in unconsolidated entities 47,899 6,791
Dividend reinvestment plan proceeds
receivable - 10,000
Interest receivable 8,836 6,330
Deferred tax asset 626 4,401
Intangible assets 19,813 -
Other assets 4,093 2,432
------------- -------------
Total assets $ 2,299,627 $ 1,934,200
============= =============
LIABILITIES
Borrowings $ 1,808,986 $ 1,543,251
Distribution payable 19,979 14,555
Accrued interest expense 3,260 1,618
Derivatives, at fair value 13,210 13,292
Accrued tax liability 12,567 30
Deferred tax liability 5,624 9,798
Accounts payable and other liabilities 6,311 3,330
------------- -------------
Total liabilities 1,869,937 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; 79,877,516 and
58,183,425 shares issued and outstanding
(including 1,428,931 and 534,957 unvested
restricted shares) 80 58
Additional paid-in capital 659,700 528,373
Accumulated other comprehensive loss (46,327) (33,918)
Distributions in excess of earnings (183,763) (146,187)
------------- -------------
Total stockholders' equity 429,690 348,326
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,299,627 $ 1,934,200
============= =============
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
Three Months Ended Years Ended
December 31, December 31,
------------------------ ------------------------
2011 2010 2011 2010
----------- ----------- ----------- -----------
(unaudited) (unaudited)
REVENUES
Interest income:
Loans $ 26,035 $ 19,819 $ 86,739 $ 77,694
Securities 3,646 2,529 12,744 11,434
Leases - 4,529 - 11,306
Interest income -
other 3,877 1,616 10,711 3,477
----------- ----------- ----------- -----------
Total interest
income 33,558 28,493 110,194 103,911
Interest expense 9,261 9,511 30,431 36,466
----------- ----------- ----------- -----------
Net interest income 24,297 18,982 79,763 67,445
Rental income 1,884 - 3,656 -
Dividend income 502 - 2,955 -
Fee income 1,930 - 7,789 -
----------- ----------- ----------- -----------
Total revenues 28,613 18,982 94,163 67,445
----------- ----------- ----------- -----------
OPERATING EXPENSES
Management fees -
related party 2,400 3,371 11,022 13,216
Equity compensation -
related party 1,127 758 2,526 2,221
Professional services 1,259 1,441 3,791 3,627
Insurance 161 183 658 759
Rental operating
expense 1,348 40 2,743 46
General and
administrative 754 789 3,950 3,015
Depreciation on
operating leases - 1,660 - 4,003
Depreciation and
amortization 1,754 - 4,619 -
Income tax expense 7,767 416 12,036 5,721
----------- ----------- ----------- -----------
Total expenses 16,570 8,658 41,345 32,608
----------- ----------- ----------- -----------
12,043 10,324 52,818 34,837
----------- ----------- ----------- -----------
OTHER (EXPENSE) REVENUE
Net impairment losses
recognized in
earnings (2,249) (16,290) (6,898) (26,804)
Net realized (loss)
gains on investment
securities available-
for-sale and loans (1,821) 3,314 2,622 4,821
Net realized and
unrealized (loss)
gains on Investment
securities, trading (560) 5,048 858 14,791
Provision for loan and
lease losses (5,979) (16,958) (13,896) (43,321)
Gains on
extinguishment of
debt - 5,325 3,875 34,610
Other (expense) income (1,021) (137) (1,663) 513
----------- ----------- ----------- -----------
Total other expense (11,630) (19,698) (15,102) (15,390)
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 413 $ (9,374) $ 37,716 $ 19,447
=========== =========== =========== ===========
NET INCOME (LOSS) PER
SHARE - BASIC $ 0.01 $ (0.17) $ 0.54 $ 0.41
=========== =========== =========== ===========
NET INCOME (LOSS) PER
SHARE - DILUTED $ 0.01 $ (0.17) $ 0.53 $ 0.41
=========== =========== =========== ===========
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING -
BASIC 76,806,318 55,928,662 70,410,131 47,715,082
=========== =========== =========== ===========
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING -
DILUTED 77,325,974 55,928,662 70,809,088 47,907,281
=========== =========== =========== ===========
DIVIDENDS DECLARED PER
SHARE $ 0.25 $ 0.25 $ 1.00 $ 1.00
=========== =========== =========== ===========
SCHEDULE I
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO FFO and AFFO (1)
(in thousands, except per share data)
(Unaudited)
Three Months
Ended Year Ended
December 31, December 31,
2011 (3) 2011 (3)
------------- -------------
Net income - GAAP $ 413 $ 37,716
Adjustments:
Real estate depreciation and amortization 1,112 2,606
Impairment charges on repossessed real
estate assets (2) - 1,449
------------- -------------
FFO (1) 1,525 41,771
Adjustments:
Non-cash items:
Impairment losses on financial instruments 2,249 6,898
Provisions for loan losses 193 317
Straight line rental adjustments (7) (17)
Share-based compensation 1,127 2,526
Amortization of deferred costs (non real
estate) and intangible assets 1,771 5,870
(Gains) on debt extinguishment - (3,875)
REIT Tax planning adjustments (4) 11,008 11,751
Cash items:
Capital expenditures (864) (1,296)
------------- -------------
AFFO (1) $ 17,002 $ 63,945
============= =============
Weighted average shares - diluted 77,326 70,809
AFFO per share - diluted $ 0.22 $ 0.90
============= =============
(1) RSO now evaluates its performance based on several performance measures, including FFO and AFFO (both non-GAAP measures), in addition to net income. RSO computes FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts as net income (computed in accordance with GAAP), excluding gains or losses on the sale of depreciable real estate, the cumulative effect of changes in accounting principles, real estate-related depreciation and amortization, and after adjustments for unconsolidated/ uncombined partnerships and joint ventures.
AFFO is a computation made by analysts and investors to measure a real estate company's cash flow generated by operations. RSO calculates AFFO by adding or subtracting from FFO: non-cash impairment losses resulting from fair value adjustments on financial instruments, non-cash provision for loan losses, straight-line rental effects, share based compensation, amortization of various deferred items and intangible assets, gains on debt extinguishment, several REIT tax planning adjustments considered non-recurring by management and capital expenditures that are related to RSO's real estate owned.
Management believes that FFO and AFFO are appropriate measures of the Company's operating performance in that they are frequently used by analysts, investors and other parties in the evaluation of REITs. Management uses FFO and AFFO as measures of RSO's operating performance, and believes they are also useful to investors, because they facilitate an understanding of RSO's operating performance after adjustment for certain non-cash items, such as real estate depreciation, share-based compensation and various other items required by GAAP, and capital expenditures, that may not necessarily be indicative of current operating performance and that may not accurately compare RSO's operating performance between periods.
While the Company's calculation of AFFO may differ from the methodology used for calculating AFFO by other REITs and its AFFO may not be comparable to AFFO reported by other REITs, RSO also believes that FFO and AFFO may provide it and its investors with an additional useful measure to compare its performance with some other REITs. Neither FFO nor AFFO is equivalent to net income or cash generated from operating activities determined in accordance with GAAP. Furthermore FFO and AFFO do not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Neither FFO nor AFFO should be considered as an alternative to net income as an indicator of RSO's operating performance or as an alternative to cash flow from operating activities as a measure of its liquidity.
(2) Amount represents impairment charges recorded by RSO in connection with real estate debt converted to equity.
(3) Comparative FFO and AFFO data is not provided since RSO did not own depreciable real property during the comparable periods in 2010.
(4) During the three months ended December 31, 2011, RSO took actions to remain in compliance with respect to its 75% REIT gross income test. First, RSO transferred two of its CLOs, with non-qualifying income, into a taxable REIT subsidiary for the period October 27, 2011 and ending on December 31, 2011. This transfer increased the tax provision during the three months and year ended December 31, 2011 by $4.7 million. In addition, RSO sold several positions and generated tax losses to further reduce its non-qualifying income by $6.3 million and $7.0 million for the three months and year ended December 31, 2011 respectively. Management believes these actions were unique to the 2011 75% REIT gross income test and does not anticipate the significant impact of these transactions to recur in 2012.
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
The following table sets forth collateralized debt obligations -- distributions and coverage test summary for the periods presented:
Annualized
Interest
Coverage Overcollateralization
Cash Distributions Cushion Cushion
--------------------- ---------- ----------------------
As of
Years Ended As of As of Initial
December December December December
31, 31, 31, 31, Measurement
2011 (2)
Name (5) CDO Type 2011 (1) 2010 (1) (3) 2011 (4) Date
----------- -------- ---------- ---------- ---------- ---------- -----------
(actual) (actual)
Apidos CDO
I (6) CLO $ 9,305 $ 7,695 $ 2,588 $ 14,187 $ 17,136
Apidos CDO
III CLO $ 8,351 $ 6,552 $ 4,961 $ 9,634 $ 11,269
Apidos
Cinco CDO CLO $ 9,941 $ 7,792 $ 4,924 $ 19,623 $ 17,774
RREF 2006-
1(7) CRE CDO $ 11,637 $ 8,929 $ 13,590 $ 53,698 $ 24,941
RREF 2007-1 CRE CDO $ 10,743 $ 15,068 $ 8,806 $ 39,293 $ 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 RSO's preference shares. (4) Overcollateralization cushion represents the amount by which the collateral held by the CDO issuer exceeds the maximum amount required. (5) The table above excludes Apidos VIII CLO, which closed on October 13, 2011 and has yet to reach the initial measurement date or issue a cash distribution as of December 31, 2011. (6) Apidos CDO I reinvestment period expired in July 2011.
(7) RREF CDO 2006-1 reinvestment period expired in September 2011.
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):
December 31,
2011 2010
----------- -----------
Allowance for loan and lease receivable losses:
Specific allowance:
Commercial real estate loans $ 17,065 $ 20,844
Bank loans 1,593 112
----------- -----------
Total specific allowance (1) 18,658 20,956
----------- -----------
General allowance:
Commercial real estate loans 7,156 10,773
Bank loans 1,704 2,504
Lease receivables - 70
----------- -----------
Total general allowance 8,860 13,347
----------- -----------
Total allowance for loans and leases $ 27,518 $ 34,303
=========== ===========
Allowance as a percentage of total loans and
lease receivables 1.5% 2.1%
Loans held for sale:
Commercial Real Estate Loans:
Commercial real estate loans at cost $ - $ 39,187
Commercial real estate loans provision - (14,621)
----------- -----------
Commercial real estate loans held for sale - 24,566
----------- -----------
Bank Loans:
Bank loans at cost 5,692 5,172
Bank loans provision (2,538) (1,145)
----------- -----------
Bank loans held for sale 3,154 4,027
----------- -----------
Loans held for sale $ 3,154 $ 28,593
=========== ===========
(1) Includes allowances on the following specifically reserved assets: commercial real estate loans of $37.8 million, at par, and bank loans of $2.9 million, at par. 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
(Unaudited)
The following table presents commercial real estate loan portfolio statistics as of December 31, 2011 (based on par value):
Security type:
Whole loans 86.7%
Mezzanine loans 10.7%
B Notes 2.6%
--------------
Total 100.0%
==============
Collateral type:
Multifamily 38.2%
Hotel 29.5%
Retail 17.0%
Office 7.4%
Flex 1.1%
Self-storage 1.0%
Other 5.8%
--------------
Total 100.0%
==============
Collateral location:
Southern California 28.5%
Northern California 13.6%
Arizona 8.9%
Florida 8.0%
Texas 6.0%
Washington 4.9%
Colorado 4.6%
New York 1.6%
Other 23.9%
--------------
Total 100.0%
==============
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(Unaudited)
The following table presents bank loan portfolio statistics by industry as of December 31, 2011 (based on par value):
Industry type:
Healthcare, education and childcare 13.8%
Diversified/conglomerate service 9.0%
Broadcasting and entertainment 7.7%
Automobile 6.6%
Retail stores 5.5%
Chemicals, plastics and rubber 5.4%
Telecommunications 5.0%
Electronics 4.4%
Hotels, motels, inns and gaming 4.1%
Printing and publishing 3.8%
Leisure, amusement, motion pictures, entertainment 3.5%
Personal transportation 3.2%
Other 28.0%
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Total 100.0%
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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.
