Welcome!

News Feed Item

Resource Capital Corp. Reports Results for Three Months Ended March 31, 2014

NEW YORK, NY -- (Marketwired) -- 05/06/14 -- Resource Capital Corp. (NYSE: RSO)

Highlights

  • Adjusted Funds from Operations ("AFFO") of $0.20 per share-diluted (see Schedule I).

  • Invested over $300.0 million in new assets including over $161.0 million in commercial real estate loans and securities during the twelve months ended March 31, 2014.

  • GAAP net income allocable to common shares of $0.12 per share-diluted.
  • Common stock cash dividend of $0.20 per share.

Resource Capital Corp. (NYSE: RSO) ("RSO" or the "Company"), a real estate investment trust, or REIT, whose investment strategy focuses on commercial real estate assets, commercial mortgage-backed securities ("CMBS"), commercial finance assets and other investments, reported results for the three months ended March 31, 2014.

  • AFFO for the three months ended March 31, 2014 was $25.0 million, or $0.20 per share-diluted as compared to $21.0 million, or $0.20 per share-diluted for the three months ended March 31, 2013. A reconciliation of GAAP net income to AFFO is set forth in Schedule I of this release.

  • GAAP net income allocable to common shares for the three months ended March 31, 2014 was $15.1 million, or $0.12 per share-diluted, as compared to $11.5 million, or $0.11 per share-diluted, for the three months ended March 31, 2013.

Jonathan Cohen, CEO and President of Resource Capital Corp., commented, "We are pleased with our investment program during the 1st quarter. We are seeing real momentum in achieving our goals of increased commercial real estate loan originations, good credit, and adjusted funds from operations in line or better than our dividend."

Additional highlights:

Commercial Real Estate

  • CRE loan portfolio is comprised of approximately 91% senior whole loans as of March 31, 2014, as compared to 85% a year ago.

  • RSO closed $374.1 million of new whole loans in the last 12 months with a weighted average yield of 6.31%, including origination fees. In addition, RSO funded $20.4 million of previous loan commitments on existing loans.

The following table summarizes RSO's CRE loan activities and fundings of previous commitments, at par, for the three and the twelve months ended March 31, 2014 (in millions, except percentages):


                              Three                   Floating
                              Months     12 Months    Weighted
                              Ended        Ended       Average    Weighted
                            March 31,    March 31,   Spread (1)    Average
                               2014         2014         (2)     Fixed Rate
                           -----------  -----------  ----------  ----------
New whole loans production
 (3)                       $     111.6  $     394.5        4.70%         --%
Payoffs (4)                      (22.2)       (81.5)
Sales                               --        (29.9)
Principal paydowns                (1.0)       (16.7)
                           -----------  -----------
Loans, net                 $      88.4  $     266.4
                           ===========  ===========

(1) Represents the weighted average rate above the one-month London
    Interbank Offered Rate ("LIBOR") on loans whose interest rate is based
    on LIBOR as of March 31, 2014. Of these loans, $107.9 million have LIBOR
    floors with a weighted average floor of 0.80%.
(2) Reflects rates on RSO's portfolio balance as of March 31, 2014.
(3) Whole loan production includes the funding of previous commitments of
    $3.7 million for the three months and $20.4 million for the twelve
    months ended March 31, 2014, respectively.
(4) CRE loan payoffs and extensions resulted in $148,000 in extension and
    exit fees during the three months ended March 31, 2014

CMBS

  • During the three months ended March 31, 2014, RSO acquired $36.8 million, par value, of CMBS which were partially financed by 30-day repurchase contracts with a repurchase value of $25.0 million. In addition, RSO acquired $4.1 million, par value, of CMBS, which 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"), corporate bonds and certain loans held for sale, at the end of the first quarter of 2014 was $726.0 million, at amortized cost, with a weighted-average spread of one-month and three-month LIBOR plus 3.43% at March 31, 2014. RSO's bank loan portfolio was nearly 100% match-funded through three CLOs issuances.
  • RSO, through its subsidiary Resource Capital Asset Management, earned $1.7 million of net fees during the three months ended March 31, 2014.

Middle Market Loans

  • RSO's middle market lending platform has made $58.2 million of loan commitments since January 1, 2014 and funded $41.2 million of those commitments.

Investment Portfolio

The table below summarizes the amortized cost and net carrying amount of RSO's investment portfolio as of March 31, 2014, 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     price     amount   price     cost     price
                   ---------- ------  ---------- ------  ---------  ------
  March 31, 2014
------------------
   Floating rate
------------------
RMBS               $    1,909  20.68% $      438   4.74% $  (1,471) (15.93)%
CMBS-private
 placement             27,138  91.99%     15,508  52.57%   (11,630) (39.42)%
Structured notes -
 trading                8,057  34.49%      9,549  40.88%     1,492    6.39%
Structured notes -
 available-for-
 sale                  12,841 100.00%     12,841 100.00%        --      --%
Mezzanine loans        12,467  99.06%     12,365  98.25%      (102)  (0.81)%
Whole loans (1)       833,853  99.56%    828,664  98.94%    (5,189)  (0.62)%
Bank loans (2)        687,154  99.56%    686,413  99.45%      (741)  (0.11)%
Loans held for
 sale (3)                 272  22.08%        272  22.08%        --      --%
ABS Securities         35,648  94.25%     36,839  97.40%     1,191    3.51%
Corporate Bonds         2,603  96.23%      2,580  95.38%       (23)  (0.85)%
                   ----------         ----------         ---------
 Total floating
  rate              1,621,942  97.88%  1,605,469  96.89%   (16,473)  (0.99)%
                   ----------         ----------         ---------
    Fixed rate
------------------
CMBS-private
 placement            159,565  80.24%    165,783  83.36%     6,218    3.12%
CMBS-linked
 transactions          38,214 105.59%     34,829  96.24%    (3,385)  (9.40)%
B notes (1)            16,168  99.54%     16,036  98.73%      (132)  (0.81)%
Mezzanine loans
 (1)                   51,832 100.05%     51,410  99.24%      (422)  (0.81)%
Residential
 mortgage loans         1,843 100.00%      1,843 100.00%        --      --%
Loans held for
 sale (3)              15,117 100.00%     15,117 100.00%        --      --%
Loans receivable-
 related party          6,498 100.00%      6,498 100.00%        --      --%
                   ----------         ----------         ---------
 Total fixed rate     289,237  88.57%    291,516  89.27%     2,279    0.70%
                   ----------         ----------         ---------
    Other (non-
 interest bearing)
------------------
Investment in real
 estate                19,971 100.00%     19,971 100.00%        --      --%
Property
 available-for-
 sale                  35,256 100.00%     35,256 100.00%        --      --%
Investment in
 unconsolidated
 entities              62,053 100.00%     62,053 100.00%        --      --%
                   ----------         ----------         ---------
 Total other          117,280 100.00%    117,280 100.00%        --      --%
                   ----------         ----------         ---------
  Grand total      $2,028,459  96.55% $2,014,265  95.88% $ (14,194)  (0.68)%
                   ==========         ==========         =========

(1) Net carrying amount includes an allowance for loan losses of $5.8
    million at March 31, 2014, allocated as follows: B notes $132,000,
    mezzanine loans $524,000 and whole loans $5.2 million.
(2) Net carrying amount includes allowance for loan losses of $741,000 at
    March 31, 2014.
(3) Loans held for sale are carried at the lower of cost or fair market
    value. Amortized cost is equal to fair value.

Liquidity

At April 30, 2014, after paying RSO's first quarter 2014 common and preferred stock dividends, RSO's liquidity is derived from three primary sources:

  • unrestricted cash and cash equivalents of $156.1 million, restricted cash of $500,000 in margin call accounts and $2.1 million in the form of real estate escrows, reserves and deposits;

  • capital available for reinvestment in its securitizations of $40.3 million, of which $4.9 million is designated to finance future funding commitments on CRE loans; and

  • loan principal repayments that will pay down outstanding CLO notes of $9.3 million and $4.7 million in interest collections.

In addition, RSO has funds available through three term financing facilities to finance the origination of CRE loans of $130.6 million and $194.3 million, respectively, and to finance the purchase of CMBS of $61.1 million.

Capital Allocation

As of March 31, 2014, RSO had allocated its invested equity capital among its targeted asset classes as follows: 73% in CRE assets, 26% in commercial finance assets and 1% in other investments.

Supplemental Information

The following schedules of reconciliations or supplemental information as of March 31, 2014 are included at the end of this release:

  • Schedule I - Reconciliation of GAAP Net Income to Funds from Operations ("FFO") and AFFO.
  • Schedule II - Book Value Allocable to Common Shareholders Rollforward.
  • Schedule III - Securitizations - Distributions and Coverage Test Summary.
  • Supplemental Information regarding loan investment statistics, CRE loans and bank loans.

About Resource Capital Corp.

RSO is a real estate investment trust that is primarily focused on originating, holding and managing commercial mortgage loans and other commercial real estate-related debt and equity investments. RSO also makes other commercial finance investments.

RSO is externally managed by Resource Capital Manager, Inc., an indirect wholly-owned subsidiary of Resource America, Inc. (NASDAQ: REXI), an asset management company that specializes in real estate and credit investments.

For more information, please visit RSO's website at www.resourcecapitalcorp.com or contact investor relations at [email protected].

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;
  • the availability of debt and equity capital to acquire and finance investments;
  • 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 the risks expressed 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, Book value allocable to common shareholders rollforward, 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,
                                                     2014          2013
                                                 -----------  -------------
                                                 (unaudited)
ASSETS (1)
  Cash and cash equivalents                      $   166,686  $     262,270
  Restricted cash                                    115,952         63,309
  Investment securities, trading                       9,987         11,558
  Investment securities available-for-sale,
   pledged as collateral, at fair value              159,051        162,608
  Investment securities available-for-sale, at
   fair value                                         74,500         52,598
  Linked transactions, net at fair value              34,829         30,066
  Loans held for sale                                 15,389         21,916
  Property available-for-sale                         35,256         25,346
  Investment in real estate                           19,971         29,778
  Loans, pledged as collateral and net of
   allowances of $6.6 million and $13.8 million    1,596,731      1,369,526
  Loans receivable-related party                       6,498          6,966
  Investments in unconsolidated entities              62,053         69,069
  Derivatives, at fair value                             556             --
  Interest receivable                                 10,503          8,965
  Deferred tax asset                                   5,048          5,212
  Principal paydown receivable                             1          6,821
  Intangible assets                                   11,283         11,822
  Prepaid expenses                                     4,155          2,871
  Other assets                                        13,459         10,726
                                                 -----------  -------------
    Total assets                                 $ 2,341,908  $   2,151,427
                                                 ===========  =============
LIABILITIES (2)
  Borrowings                                     $ 1,502,089  $   1,319,810
  Distribution payable                                27,601         27,023
  Accrued interest expense                             3,848          1,693
  Derivatives, at fair value                          10,242         10,586
  Accrued tax liability                                  387          1,629
  Deferred tax liability                               4,036          4,112
  Accounts payable and other liabilities              13,511         12,650
                                                 -----------  -------------
    Total liabilities                              1,561,714      1,377,503
                                                 -----------  -------------
STOCKHOLDERS' EQUITY
  Preferred stock, par value $0.001: 100,000,000
   shares authorized 8.50% Series A cumulative
   redeemable preferred shares, liquidation
   preference $25.00per share, 872,039 and
   680,952 shares issued and outstanding                   1              1
  Preferred stock, par value $0.001: 100,000,000
   shares authorized 8.25% Series B cumulative
   redeemable preferred shares, liquidation
   preference $25.00 per share 3,988,977 and
   3,485,078 shares issued and outstanding                 4              3
  Common stock, par value $0.001: 500,000,000
   shares authorized; 128,577,980 and
   127,918,927 shares issued and outstanding
   (including 2,670,189 and 3,112,595 unvested
   restricted shares)                                    129            128
  Additional paid-in capital                       1,059,805      1,042,480
  Accumulated other comprehensive loss               (14,071)       (14,043)
  Distributions in excess of earnings               (265,618)      (254,645)
                                                 -----------  -------------
    Total stockholders' equity                       780,250        773,924
  Non-controlling interest                               (56)            --
                                                 -----------  -------------
    Total equity                                     780,194        773,924
                                                 -----------  -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY       $ 2,341,908  $   2,151,427
                                                 ===========  =============



                   RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                  CONSOLIDATED BALANCE SHEETS - (Continued)
               (in thousands, except share and per share data)


                                                    March 31,   December 31,
                                                       2014         2013
                                                   ----------- -------------
                                                   (unaudited)
(1) Assets of consolidated VIEs included in the
 total assets:
  Restricted cash                                  $   113,362 $      61,372
  Investment securities available-for-sale,
   pledged as collateral, at fair value                116,429       105,846
  Loans held for sale                                      272         2,376
  Loans, pledged as collateral and net of
   allowances of $5.1 million and $8.8 million       1,305,377     1,219,569
  Interest receivable                                    6,626         5,627
  Prepaid expenses                                         163           247
  Principal paydown receivable                               1         6,821
                                                   ----------- -------------
  Total assets of consolidated VIEs (a)            $ 1,542,230 $   1,401,858
                                                   =========== =============

(2) Liabilities of consolidated VIEs included in
 the total liabilities:
  Borrowings                                       $ 1,183,468 $   1,070,339
  Accrued interest expense                               1,356           918
  Derivatives, at fair value                             9,841        10,191
  Accounts payable and other liabilities                 4,150         1,604
                                                   ----------- -------------
  Total liabilities of consolidated VIEs (b)       $ 1,198,815 $   1,083,052
                                                   =========== =============

(a) Assets of each of the consolidated variable interest entities ("VIE"s)
    may only be used to settle the obligations of each respective VIE.
(b) The creditors of the Company's VIEs have no recourse to the general
    credit of the Company.



                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF OPERATIONS
              (in thousands, except share and per share data)
                                (unaudited)


                                                    Three Months Ended
                                                         March 31,
                                               ----------------------------
                                                    2014           2013
                                               -------------  -------------
REVENUES
  Interest income:
    Loans                                      $      20,229  $      27,812
    Securities                                         4,004          3,642
    Interest income − other                      2,852          1,866
                                               -------------  -------------
      Total interest income                           27,085         33,320
  Interest expense                                     9,637         11,165
                                               -------------  -------------
      Net interest income                             17,448         22,155
  Rental income                                        5,152          6,174
  Dividend income                                        136             16
  Equity in net earnings (losses) of
   unconsolidated subsidiaries                         2,014           (425)
  Fee income                                           2,756          1,410
  Net realized gain on sales of investment
   securities available-for-sale and loans             3,680            391
  Net realized and unrealized (loss) gain on
   investment securities, trading                     (1,560)         1,116
  Unrealized gain (loss) and net interest
   income on linked transactions, net                  2,305           (259)
                                               -------------  -------------
    Total revenues                                    31,931         30,578
                                               -------------  -------------
OPERATING EXPENSES
  Management fees − related party                3,080          2,978
  Equity compensation − related party            1,667          3,591
  Rental operating expense                             3,396          3,937
  General and administrative                           8,105          3,481
  Depreciation and amortization                          836          1,138
  Income tax expense                                      16          1,762
  Net impairment losses recognized in earnings             -             21
  (Benefit) provision for loan losses                 (3,960)         1,042
                                               -------------  -------------
    Total operating expenses                          13,140         17,950
                                               -------------  -------------
                                                      18,791         12,628
                                               -------------  -------------
OTHER REVENUE (EXPENSE)
  Other expense                                       (1,262)             -
  Loss on the extinguishment of debt                     (69)             -
                                               -------------  -------------
    Total other expense                               (1,331)             -
                                               -------------  -------------
NET INCOME                                            17,460         12,628
  Net income allocated to preferred shares            (2,400)        (1,311)
  Net loss allocable to non-controlling
   interest                                               56            209
                                               -------------  -------------
NET INCOME ALLOCABLE TO COMMON SHARES          $      15,116  $      11,526
                                               =============  =============
NET INCOME PER COMMON SHARE - BASIC            $        0.12  $        0.11
                                               =============  =============
NET INCOME PER COMMON SHARE - DILUTED          $        0.12  $        0.11
                                               =============  =============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
 OUTSTANDING − BASIC                       125,616,537    104,224,083
                                               =============  =============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
 OUTSTANDING − DILUTED                     126,667,614    105,326,614
                                               =============  =============


SCHEDULE I

                   RESOURCE CAPITAL CORP. AND SUBSIDIARIES
              RECONCILIATION OF GAAP NET INCOME TO FFO and AFFO
                    (in thousands, except per share data)
                                 (unaudited)

Funds from Operations

The Company evaluates its performance based on several performance measures, including funds from operations, or FFO, and adjusted funds from operations ("AFFO") in addition to net income. The Company 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. The Company calculates AFFO by adding or subtracting from FFO the non-cash impacts of the following: non-cash impairment losses resulting from fair value adjustments on financial instruments, provision for loan losses, equity investment gains and losses, straight-line rental effects, share based compensation, amortization of various deferred items and intangible assets, gains on sales of property that are wholly owned or through a joint venture in addition to the cash impact of capital expenditures that are related to its real estate owned. In addition, the Company calculates AFFO by adding and subtracting from FFO the cash impacts of the following: extinguishment of debt and sales of property.

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 its operating performance, and believes they are also useful to investors, because they facilitate an understanding of the Company'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 the Company's operating performance between periods.

While the Company calculations 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, the Company also believe that FFO and AFFO may provide the Company 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 GAAP net income as an indicator of the Company's operating performance or as an alternative to cash flow from operating activities as a measure of its liquidity.

The following table reconciles GAAP net income to FFO and AFFO for the periods presented (unaudited) (in thousands, except per share data):


                                                             March 31,
                                                       --------------------
                                                          2014       2013
                                                       ---------  ---------
Net income allocable to common shares - GAAP           $  15,116  $  11,526
Adjustments:
  Real estate depreciation and amortization                  292        673
  (Gains) losses on sales of property (1)                   (866)        22
  Gains on sale of preferred equity                         (984)        --
                                                       ---------  ---------
FFO                                                       13,558     12,221
Adjustments:
Non-cash items:
  Adjust for impact of imputed interest on VIE
   accounting                                                 --     (1,090)
  (Benefit) provision for loan losses                       (125)       194
  Amortization of deferred costs (non real estate) and
   intangible assets                                       2,223      1,866
  Equity investment losses                                 1,282        336
  Share-based compensation                                 1,667      3,591
  Impairment losses                                           --         21
  Unrealized gain on CMBS marks - linked transactions     (1,763)        --
  Unrealized loss on trading portfolio                       442         --
  Straight line rental adjustments                             2          2
  Loss on the extinguishment of debt                          69         --
  PCA expenses                                               300         --
REIT tax planning adjustments                                957        726
Cash items:
  Gains (losses) on sales of property (1)                    866        (22)
  Gains on sale of preferred equity                          984         --
  Gain on the extinguishment of debt                       4,532      3,585
  Capital expenditures                                       (13)      (418)
                                                       ---------  ---------
AFFO                                                   $  24,981  $  21,012
                                                       =========  =========

Weighted average shares - diluted                        126,668    105,327

AFFO per share - diluted                               $    0.20  $    0.20
                                                       =========  =========

(1) Amount represents gains/losses on sales of joint venture real estate
    interests that were recorded by RSO on an equity basis.


SCHEDULE II

                  RESOURCE CAPITAL CORP. AND SUBSIDIARIES
          BOOK VALUE ALLOCABLE TO COMMON SHAREHOLDERS ROLLFORWARD
               (dollars in thousands, except per share data)
                                (unaudited)


                                                      Amount     Per Share
                                                   -----------  -----------
Book value at December 31, 2013, allocable to
 common shareholders (1)                           $   674,681  $      5.41
Net income allocable to common shareholders             15,116         0.12

Change in other comprehensive income:
  Available for sale securities                           (289)          --
  Derivatives                                              458           --
  Foreign currency conversion                             (196)          --
Common dividends                                       (25,663)       (0.20)
Proceeds (dilution) from additional shares issued
 during the year (2)                                     1,193        (0.05)
                                                   -----------  -----------
Total net decrease                                      (9,381)       (0.13)
                                                   -----------  -----------
Book value at March 31, 2014, allocable to common
 shareholders (1)(3)                               $   665,300  $      5.28
                                                   ===========  ===========

(1) Per share calculations exclude unvested restricted stock, as disclosed
    on the consolidated balance sheets, of 2.7 million and 3.1 million
    shares as of March 31, 2014 and December 31, 2013, respectively.
(2) Includes issuance of common shares from the Company's dividend
    reinvestment plan of 111,000 shares and 442,000 vesting of shares of
    restricted stock.
(3) Book value is calculated as total stockholder's equity of $780.2 million
    less preferred stock equity of $114.9 million.


SCHEDULE III

                   RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                SUMMARY OF CDO AND CLO PERFORMANCE STATISTICS
                               (in thousands)
                                 (unaudited)

Securitizations - Distributions and Coverage Test Summary

The following table sets forth the distributions made and coverage test summaries for each of RSO's securitizations for the periods presented (in thousands):


                                           Annualized
                                            Interest
                                            Coverage   Overcollateralization
        Name           Cash Distributions    Cushion          Cushion
                     --------------------- ---------- ----------------------
                                              Three
                        Three                Months      Three
                       Months   Year Ended    Ended     Months      As of
                        Ended    December   March 31,    Ended     Initial
                      March 31,     31,     2014 (2)   March 31, Measurement
                      2014 (1)   2013 (1)      (3)     2014 (4)      Date
                     ---------- ---------- ---------- ---------- -----------
Apidos CDO I (5)     $      532 $    4,615 $    1,512 $   11,272 $    17,136
Apidos CDO III (6)   $    1,170 $    6,495 $    3,225 $    8,853 $    11,269
Apidos Cinco CDO (7) $    2,764 $   12,058 $    5,451 $   19,639 $    17,774
RREF 2006-1 (8)      $    1,770 $   36,828 $    5,272 $   67,336 $    24,941
RREF 2007-1 (9)      $    2,433 $   10,880 $    9,022 $   39,703 $    26,032
RCC CRE Notes 2013
 (10)                $    2,398        N/A        N/A        N/A         N/A

* The above table does not include new CLO investments made in the quarter ended March 31, 2014, as cash distributions were received subsequent to period end. In addition, the above table does not include Apidos CLO VIII or Whitney CLO I, as these CLOs were previously called and were substantially liquidated as of March 31, 2014.

(1)  Distributions on retained equity interests in CDOs (comprised of note
     investments and preference share ownership) and principal paydowns on
     notes owned; RREF CDO 2006-1 includes $231,000 and $28.1 million of
     paydowns during the three months ended March 31, 2014 and the year
     ended December 31, 2013, respectively.
(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.
(5)  Apidos CDO I's reinvestment period expired in July 2011.
(6)  Apidos CDO III's reinvestment period expired in June 2012.
(7)  Apidos Cinco CDO's reinvestment period ends in May 2014.
(8)  RREF CDO 2006-1's reinvestment period expired in September 2011.
(9)  RREF CDO 2007-1's reinvestment period expired in June 2012.
(10) RCC CRE Notes 2013 closed on December 23, 2013; the first distribution
     was in January 2014. There is no reinvestment period for the
     securitization. Additionally, the indenture contains no coverage tests.



                   RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                          SUPPLEMENTAL INFORMATION
                     (in thousands, except percentages)
                                 (unaudited)

Loan Investment Statistics

The following table presents information on RSO's impaired loans and related allowances for the periods indicated (based on amortized cost):


                                                 March 31,     December 31,
                                                    2014           2013
                                               -------------  -------------
Allowance for loan losses:
Specific allowance:
  Commercial real estate loans                 $          --  $       4,572
  Bank loans                                             441          2,621
                                               -------------  -------------
Total specific allowance                                 441          7,193
                                               -------------  -------------
General allowance:
  Commercial real estate loans                         5,844          5,844
  Bank loans                                             300            770
                                               -------------  -------------
Total general allowance                                6,144          6,614
                                               -------------  -------------
Total allowance for loans                      $       6,585  $      13,807
                                               =============  =============
Allowance as a percentage of total loans                 0.4%           1.0%

Loans held for sale:
  Commercial real estate                       $          --  $          --
  Bank loans                                             272          6,850
  Residential mortgage loans                          15,117         15,066
                                               -------------  -------------
Total loans held for sale (1)                  $      15,389  $      21,916
                                               =============  =============

(1)  Loans held for sale are presented at the lower of cost or fair value.


                   RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                          SUPPLEMENTAL INFORMATION
                                 (unaudited)

The following table presents commercial real estate loan portfolio statistics as of March 31, 2014 (based on par value):


Security type:
Whole loans                                                            91.2%
Mezzanine loans                                                         7.0%
B Notes                                                                 1.8%
                                                                     ------
Total                                                                 100.0%
                                                                     ======

Collateral type:
Multifamily                                                            39.9%
Hotel                                                                  19.3%
Retail                                                                 18.9%
Office                                                                 14.0%
Mixed Use                                                               3.6%
Industrial                                                              1.5%
Other                                                                   2.8%
                                                                     ------
Total                                                                 100.0%
                                                                     ======

Collateral location:
Southern California                                                    27.3%
Northern California                                                     9.2%
Texas                                                                  13.2%
Arizona                                                                10.7%
Florida                                                                 5.9%
Utah                                                                    3.4%
Washington                                                              3.3%
Minnesota                                                               3.2%
Nevada                                                                  2.7%
Other                                                                  21.1%
                                                                     ------
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, 2014 (based on par value):


Industry type:
Healthcare, education and childcare                                    13.3%
Diversified/conglomerate service                                       11.6%
Broadcasting and entertainment                                          6.9%
Automobile                                                              6.3%
Chemicals, plastics and rubber                                          5.8%
CDO                                                                     5.2%
Retail stores                                                           5.1%
Telecommunications                                                      4.2%
Oil and gas                                                             3.5%
Leisure, amusement, motion pictures, entertainment                      3.4%
Hotels, motels, inns and gaming                                         3.3%
Personal, food and miscellaneous services                               3.2%
Electronics                                                             3.0%
Utilities                                                               2.7%
Finance                                                                 2.3%
Aerospace and defense                                                   2.1%
Mining, steel, iron and non-precious metals                             2.0%
Other                                                                  16.1%
                                                                     ------
Total                                                                 100.0%
                                                                     ======

CONTACT:
DAVID J. BRYANT
CHIEF FINANCIAL OFFICER
RESOURCE CAPITAL CORP.
712 Fifth Ave, 12
TH Floor
New York, NY 10019
212-506-3870


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
"We have several customers now running private clouds. They're not as large as they should be but it's getting there. The adoption challenge has been pretty simple. Look at the world today of virtualization vs cloud," stated Nara Rajagopalan, CEO of Accelerite, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, will discuss recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model f...
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captu...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm ...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Digitization is driving a fundamental change in society that is transforming the way businesses work with their customers, their supply chains and their people. Digital transformation leverages DevOps best practices, such as Agile Parallel Development, Continuous Delivery and Agile Operations to capitalize on opportunities and create competitive differentiation in the application economy. However, information security has been notably absent from the DevOps movement. Speed doesn’t have to negat...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...