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8-K - 06/30/12 RESULTS - ACRES Commercial Realty Corp.rso8k063012.htm
 


 
FOR IMMEDIATE RELEASE
 

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



RESOURCE CAPITAL CORP.
REPORTS RESULTS FOR
THREE AND SIX MONTHS ENDED JUNE 30, 2012

 
Highlights
 
  
Adjusted Funds from Operations (“AFFO”) of $0.26 and $0.49 per share-diluted.
 
  
GAAP net income of $0.20 and $0.37 per share-diluted.
 
  
Common stock cash dividend of $0.20 and $0.40 per share.
 
  
Total operating revenues increased by $3.9 million, or 18% and $8.6 million, or 20% as compared to the three and six months ended June 30, 2011.
 
  
Book value per share of $5.44 at June 30, 2012 as compared to $5.38 at December 31, 2011.
 
  
Cash on hand of $110.2 million at June 30, 2012.
 

New York, N.Y., July 31, 2012 - 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 and six months ended June 30, 2012.
 
  
AFFO for the three and six months ended June 30, 2012 was $22.2 million, or $0.26 per share-diluted and $40.8 million, or $0.49 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 and six months ended June 30, 2012 was $16.4 million, or $0.20 per share-diluted and $30.9 million, or $0.37 per share-diluted, respectively as compared to $9.2 million, or $0.13 share-diluted and $22.4 million, or $0.34 per share-diluted for the three and six months ended June 30, 2011, respectively.
 

Jonathan Cohen, CEO and President of Resource Capital Corp., commented, “Resource Capital Corp. had a very strong second quarter.  Adjusted Funds from Operations were $0.26 per share diluted, and GAAP net income was $0.20 per share diluted, in both cases more than a 10% increase over the first quarter.  We closed on over $212 million of new investments, including almost $66 million of new CRE loans. We paid a $0.20 cash dividend and our book value per share has increased since the end of 2011.  We are continuing to build our asset generating activities and hope to accelerate their growth.”

 
 

 


Additional highlights:

Corporate
 
  
RSO has begun to issue its 8.50% Series A Cumulative Redeemable Preferred Stock, at a price of $23.50 per share with a liquidation preference of $25.00 per share.  Through July 30, 2012, RSO sold 491,835 shares at a weighted average price of $23.85 for net proceeds of $11.4 million.

Commercial Real Estate
 
  
CRE loan portfolio is now comprised of approximately 87% senior whole loans as of June 30, 2012, as compared to 80% a year ago.
 
  
RSO closed $79.7 million of whole loans in the six months ended June 30, 2012 with a weighted average yield of 6.9%, including origination fees.
 
  
RSO received paydowns and payoffs on CRE loans of $24.9 million for the six months ended June 30, 2012.

The following table summarizes RSO’s CRE loan activities and fundings of previous commitments, at par, for the three and six months ended June 30, 2012 (in millions, except percentages):

   
Three Months Ended
June 30, 2012
   
Six Months Ended
June 30, 2012
   
12 Months
Ended
June 30, 2012
   
Floating
Weighted
Average
Spread (1) (2)
   
Weighted
Average
Fixed Rate (2)
 
New whole loans production (3)
  $ 65.8     $ 82.8     $ 148.7       3.45 %     9.60 %
Sale of real estate loans
                (14.4 )                
Payoffs
    (22.3 )     (22.3 )     (46.8 )                
Principal paydowns
    (1.7 )     (2.6 )     (2.8 )                
Loans, net (4) 
  $ 41.8     $ 57.9     $ 84.7                  

(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 June 30, 2012.  Of these new loans, $138.7 million have LIBOR floors with a weighted average floor of 3.12%.
 
(2)  
Reflects rates on RSO’s portfolio balance as of June 30, 2012.
 
(3)  
Whole loan production includes funding of previous commitments of $1.2 million, $3.1 million and $10.0 million for the three, six and 12 months ended June 30, 2012, respectively.
 
(4)  
The basis of new net loans does not include provisions for losses on legacy CRE loans of $3.5 million, $3.8 million and $5.1 million for the three, six and 12 months ended June 30, 2012, respectively.
 

CMBS Securities
 
  
During the six months ended June 30, 2012, RSO acquired $15.1 million, par value, of CMBS at a weighted average price of 97.7%.  In addition, RSO acquired $23.8 million, at cost, of interest only CMBS at a weighted average price of 10.9%.  All of these 2012 CMBS purchases 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 second quarter of 2012 was $1.2 billion, at amortized cost, with a weighted-average spread of a weighted- average of one-month and three-month LIBOR plus 3.44% at June 30, 2012.  RSO’s bank loan portfolio is 100% match-funded through four collateralized loan obligation (“CLO”) issuances.
 
  
During the three and six months ended June 30, 2012, RSO bought bank loans through its four CLOs with a par value of $123.5 million and $260.1 million, respectively, at a net discount of $1.6 million and $4.3 million, respectively.  These purchased loans have an aggregate weighted average unlevered annual yield of approximately 3.9% and 4.2%, respectively.
 
  
RSO, through its subsidiary Resource Capital Asset Management, earned $3.7 million of net fees during the six months ended June 30, 2012.

 
 

 

 
Book Value

As of June 30, 2012, RSO’s book value per common share was $5.44, an increase from $5.38 per common share at December 31, 2011.  Total stockholders’ equity was $475.7 million as of June 30, 2012 as compared to $429.7 million as of December 31, 2011.  Total common shares outstanding were 86,266,500 as of June 30, 2012 as compared to 79,877,516 as of December 31, 2011.

Investment Portfolio

The table below summarizes the amortized cost and net carrying amount of RSO’s investment portfolio as of June 30, 2012, 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):
   
Amortized
cost
   
Dollar price
   
Net carrying amount
   
Dollar price
   
Net carrying amount less amortized cost
   
Dollar price
 
 
June 30, 2012
                                   
Floating rate
                                   
RMBS
  $ 10,547       28.65 %   $ 7,517       20.42 %   $ (3,030 )     -8.23 %
CMBS-private placement
    28,411       100.00 %     12,495       43.98 %     (15,916 )     -56.02 %
Structured notes
    26,872       42.36 %     36,636       57.75 %     9,764       15.39 %
Other ABS
          0.00 %     23       0.28 %     23       0.28 %
Mezzanine loans (1) 
    53,921       99.99 %     53,128       98.52 %     (793 )     -1.47 %
Whole loans (1) 
    547,233       99.62 %     541,297       98.54 %     (5,936 )     -1.08 %
Bank loans (2) 
    1,116,993       97.94 %     1,111,779       97.48 %     (5,214 )     -0.46 %
Loans held for sale
    49,114       90.75 %     49,114       90.75 %           0.00 %
ABS Securities
    29,703       89.19 %     28,247       84.82 %     (1,456 )     -4.37 %
Total floating rate
    1,862,794       94.64 %     1,840,236       93.50 %     (22,558 )     -1.14 %
Fixed rate
                                               
CMBS – private placement
    149,669       75.13 %     144,367       72.47 %     (5,302 )     -2.66 %
B notes (1) 
    16,382       99.21 %     16,144       97.77 %     (238 )     -1.44 %
Mezzanine loans (1) 
    13,926       100.32 %     13,731       93.91 %     (195 )     -1.41 %
Whole loans (1) 
          0.00 %           0.00 %           0.00 %
Loans receivable-related party
    9,438       100.00 %     9,438       100.00 %           0.00 %
Total fixed rate
    189,415       79.24 %     183,680       76.84 %     (5,735 )     -2.40 %
Other (non-interest bearing)
                                               
Investment in real estate
    47,362       100.00 %     47,362       100.00 %           0.00 %
Investment in unconsolidated
entities
    45,289       100.00 %     45,289       100.00 %           0.00 %
Total other
    92,651       100.00 %     92,651       100.00 %           0.00 %
Grand total
  $ 2,144,860       93.26 %   $ 2,116,567       91.98 %   $ (28,293 )     -1.28 %

(1)  
Net carrying amount includes an allowance for loan losses of $7.2 million at June 30, 2012, allocated as follows:  B notes ($238,000), mezzanine loans ($988,000) and whole loans ($5.9 million).
 
(2)  
Net carrying amount includes an allowance for loan losses of $5.2 million at June 30, 2012.

 
 

 


Liquidity

At July 30, 2012, after paying RSO’s second quarter dividends, RSO’s liquidity of $95.4 million consisted of two primary sources:
 
  
unrestricted cash and cash equivalents of $24.7 million, restricted cash of $500,000 in margin call accounts and $2.0 million in the form of real estate escrows, reserves and deposits; and
 
  
capital available for reinvestment in its six CDO entities of $16.9 million, of which $775,000 is designated to finance future funding commitments on CRE loans, loan principal repayments that will pay down outstanding CLO notes of $43.0 million and $8.3 million in interest collections.
 
In addition, RSO has funds available through two CRE term facilities to finance the purchase of CMBS securities and origination of commercial real estate loans of $29.9 million and $136.4 million, respectively.
 

Capital Allocation

As of June 30, 2012, RSO had allocated its invested equity capital among its targeted asset classes as follows: 64% in CRE assets, 30% in commercial finance assets and 6% in other investments.

Supplemental Information

The following schedules of reconciliations or supplemental information as of June 30, 2012 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 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, financial fund management and commercial finance 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;
 
  
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 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)

   
June 30,
   
December 31,
 
   
2012
   
2011
 
   
(unaudited)
       
ASSETS
           
Cash and cash equivalents
  $ 31,897     $ 43,116  
Restricted cash
    78,343       142,806  
Investment securities, trading
    44,153       38,673  
Investment securities available-for-sale, pledged as collateral, at fair value
    177,332       153,366  
Investment securities available-for-sale, at fair value
    7,800       4,678  
Property available-for-sale
          2,980  
Investment in real estate
    47,362       48,027  
Loans, pledged as collateral and net of allowances of $12.4 million and
$27.5 million
    1,736,079       1,772,063  
Loans held for sale
    49,114       3,154  
Loans receivable–related party
    9,438       9,497  
Investments in unconsolidated entities
    45,289       47,899  
Interest receivable
    9,597       8,836  
Deferred tax asset
    626       626  
Intangible assets
    17,877       19,813  
Prepaid expenses
    6,485       648  
Other assets
    5,514       3,445  
Total assets
  $ 2,266,906     $ 2,299,627  
LIABILITIES
               
Borrowings
  $ 1,739,805     $ 1,808,986  
Distribution payable
    17,279       19,979  
Accrued interest expense
    3,294       3,260  
Derivatives, at fair value
    13,570       13,210  
Accrued tax liability
    4,593       12,567  
Deferred tax liability
    3,906       5,624  
Accounts payable and other liabilities
    8,756       6,311  
Total liabilities
    1,791,203       1,869,937  
STOCKHOLDERS’ EQUITY
               
Preferred stock, par value $0.001:  100,000,000 shares authorized 8.50% Series A
cumulative redeemable preferred shares, liquidation preference $25.00
per share, 268,720 shares issued and outstanding
           
Common stock, par value $0.001:  500,000,000 shares authorized;
86,266,500 and 79,877,516 shares issued and outstanding
(including 1,638,906 and 1,428,931 unvested restricted shares)
    86       80  
Additional paid-in capital
    699,971       659,700  
Accumulated other comprehensive loss
    (37,245 )     (46,327 )
Distributions in excess of earnings
    (187,109 )     (183,763 )
Total stockholders’ equity
    475,703       429,690  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
  $ 2,266,906     $ 2,299,627  

 
 

 
 
RESOURCE CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
(Unaudited)
 
   
Three Months Ended
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
REVENUES
                       
Interest income:
                       
Loans
  $ 23,012     $ 20,591     $ 46,627     $ 41,841  
Securities
    3,752       2,955       7,336       5,715  
Interest income − other
    3,157       1,716       5,986       2,935  
Total interest income
    29,921       25,262       59,949       50,491  
Interest expense
    8,936       7,062       17,379       13,995  
Net interest income
    20,985       18,200       42,570       36,496  
Rental income
    2,034       157       3,953       180  
Dividend income
          866             1,527  
Fee income
    2,329       2,253       4,191       3,899  
Total revenues
    25,348       21,476       50,714       42,102  
                                 
OPERATING EXPENSES
                               
Management fees − related party
    4,548       3,148       7,991       5,486  
Equity compensation − related party
    1,140       623       2,008       1,083  
Professional services
    806       989       2,158       1,908  
Insurance
    159       159       317       336  
Rental operating expense
    1,309       185       2,629       330  
General and administrative
    1,470       1,121       2,533       1,921  
Depreciation and amortization
    1,364       756       2,725       1,009  
Income tax expense
    384       1,171       2,999       2,980  
Total operating expenses
    11,180       8,152       23,360       15,053  
      14,168       13,324       27,354       27,049  
OTHER REVENUE (EXPENSE)
                               
Net impairment losses recognized in earnings
    (32 )     (4,649 )     (171 )     (4,649 )
Net realized gain on investment securities
available-for-sale and loans
    1,422       3,696       1,802       3,852  
Net realized and unrealized gain on investment
securities, trading
    1,424       1,473       3,568       3,279  
Provision for loan losses
    (4,253 )     (4,113 )     (6,431 )     (6,719 )
Gain on the extinguishment of debt
    5,464             5,464        
Other expenses
    (1,743 )     (512 )     (655 )     (451 )
Total other revenue (expense)
    2,282       (4,105 )     3,577       (4,688 )
NET INCOME
    16,450       9,219       30,931       22,361  
Net income allocated to preferred shares
    (25 )           (25 )      
NET INCOME ALLOCABLE TO
COMMON SHARES
  $ 16,425     $ 9,219     $ 30,906     $ 22,361  
NET INCOME PER SHARE – BASIC
  $ 0.20     $ 0.13     $ 0.38     $ 0.34  
NET INCOME PER SHARE – DILUTED
  $ 0.20     $ 0.13     $ 0.37     $ 0.34  
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING − BASIC
    83,466,810       70,704,579       82,334,303       65,455,811  
WEIGHTED AVERAGE NUMBER OF
SHARES OUTSTANDING − DILUTED
    84,188,216       71,008,075       83,040,604       65,732,464  
DIVIDENDS DECLARED PER SHARE
  $ 0.20     $ 0.25     $ 0.40     $ 0.50  
 

 
 

 

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
   
Six Months Ended
 
   
June 30,
   
June 30,
 
   
2012 (3)
   
2012 (3)
 
Net income allocable to common shares − GAAP
  $ 16,425     $ 30,906  
Adjustments:
               
Real estate depreciation and amortization
    779       1,489  
Gains on sales of joint venture real estate interests (2) 
          (1,087 )
FFO (1) 
    17,204       31,308  
Adjustments:
               
Non-cash items:
               
Provisions for loan losses
    2,884       4,468  
Amortization of deferred costs (non real estate) and intangible assets
    2,336       3,991  
Equity investment losses
    1,275       1,275  
Share-based compensation
    1,140       2,008  
Impairment losses on real property held for sale
    32       171  
Straight line rental adjustments
    4       12  
Gain on the extinguishment of debt
    (1,835 )     (1,835 )
Cash items:
               
Gains on sales of joint venture real estate interests(2) 
          1,087  
Capital expenditures
    (861 )     (1,664 )
AFFO (1) 
  $ 22,179     $ 40,821  
Weighted average shares – diluted
    84,188       83,041  
AFFO per share – diluted
  $ 0.26     $ 0.49  

(1)  
RSO currently 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 impacts of the following: provision for loan losses, gains on the extinguishment of debt, equity investment losses, straight-line rental effects, share based compensation, amortization of various deferred items and intangible assets, gains on sales of property through a joint venture and cash impact of capital expenditures that are related to RSO’s real estate owned.
 
Management believes that FFO and AFFO are appropriate measures of RSO’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 RSO’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 gains on sales of joint venture real estate interests from a joint venture recorded by RSO.
 
(3)  
Comparative FFO and AFFO data is not provided since RSO did not present these metrics in the comparable periods in 2011.

 
 

 
 
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 cash distributions from RSO’s CDO investments and a summary of coverage test compliance for the CDO issuers for the periods presented:

                 
Annualized
             
                 
Interest
             
                 
Coverage
   
Overcollateralization
 
     
Cash Distributions
   
Cushion
   
Cushion
 
           
Six Months
                   
     
Year Ended
   
Ended
   
As of
   
As of
   
As of Initial
 
     
December 31,
   
June 30,
   
June 30,
   
June 30,
   
Measurement
 
Name
CDO Type
 
2011 (1)
   
2012 (1)
   
2012 (2) (3)
   
2012 (4)
   
Date
 
     
(actual)
   
(actual)
                   
Apidos CDO I (5)
CLO
  $ 9,305     $ 4,249     $ 6,772     $ 12,996     $ 17,136  
Apidos CDO III(6)
CLO
  $ 8,351     $ 4,284     $ 4,288     $ 9,293     $ 11,269  
Apidos Cinco CDO
CLO
  $ 9,941     $ 5,067     $ 5,801     $ 18,496     $ 17,774  
Apidos CLO VIII(7)
CLO
  $     $ 1,110     $ 3,656     $ 13,974     $ 13,657  
RREF 2006-1(8)
CRE CDO
  $ 11,637     $ 6,558     $ 12,204     $ 44,018     $ 24,941  
RREF 2007-1(9)
CRE CDO
  $ 10,743     $ 6,887     $ 11,041     $ 55,535     $ 26,032  

(1)  
Distributions on retained equity interests in CDOs (comprised of note investments 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)  
Apidos CDO I reinvestment period expired in July 2011.
 
(6)  
Apidos CDO III reinvestment period expired in June 2012.
 
(7)  
Apidos CLO VIII, which closed in October 2011, had its first distribution in April 2012 which includes $373,000 in subordinated management fees; RSO’s total share was $1.1 million.
 
(8)  
RREF CDO 2006-1 reinvestment period expired in September 2011.
 
(9)  
RREF CDO 2007-1 reinvestment period expired in June 2012.

 
 

 
 
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):

   
June 30,
   
December 31,
 
   
2012
   
2011
 
Allowance for loan losses:
           
Specific allowance:
           
Commercial real estate loans
  $ 1,375     $ 17,065  
Bank loans
    2,130       1,593  
Total specific allowance
    3,505       18,658  
General allowance:
               
Commercial real estate loans
    5,787       7,156  
Bank loans
    3,084       1,704  
Total general allowance
    8,871       8,860  
Total allowance for loans and leases
  $ 12,376     $ 27,518  
Allowance as a percentage of total loans
    0.7 %     1.5 %
                 
Loans held for sale:
               
Commercial Real Estate Loans:
               
Commercial real estate loans at cost
  $ 38,086     $  
Commercial real estate loans allowance for loan loss
    (4,086 )      
Commercial real estate loans held for sale
    34,000        
Bank Loans:
               
Bank loans at cost
    15,483       5,692  
Bank loans allowance for loan loss
    (369 )     (2,538 )
Bank loans held for sale
    15,114       3,154  
Loans held for sale
  $ 49,114     $ 3,154  
 

 
 

 

RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(unaudited)
 
The following table presents commercial real estate loan portfolio statistics as of June 30, 2012 (based on par value):

Security type:
     
Whole loans
    87.4 %
Mezzanine loans
    10.2 %
B Notes
    2.4 %
Total
    100.0 %
         
Collateral type:
       
Multifamily
    31.1 %
Hotel
    25.9 %
Retail
    21.6 %
Office
    13.8 %
Flex
    1.0 %
Self-storage
    0.9 %
Other
    5.7 %
Total
    100.0 %
         
Collateral location:
       
Southern California
    29.3 %
Northern California
    11.8 %
Arizona
    8.5 %
Florida
    7.6 %
Colorado
    5.8 %
Texas
    5.7 %
Washington
    4.5 %
New York
    1.5 %
Other
    25.3 %
Total
    100.0 %


 
 

 

RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(unaudited)

The following table presents bank loan portfolio statistics by industry as of June 30, 2012 (based on par value):

Industry type:
     
Healthcare, education and childcare
    13.9 %
Diversified/conglomerate service
    10.5 %
Broadcasting and entertainment
    7.7 %
Automobile
    6.7 %
Chemicals, plastics and rubber
    5.8 %
Retail Stores
    5.3 %
Electronics
    4.8 %
Hotels, motels, inns and gaming
    4.2 %
Telecommunications
    3.9 %
Leisure, amusement, motion pictures, entertainment
    3.3 %
Printing and publishing
    3.2 %
Personal transportation
    3.1 %
Other
    27.6 %
Total
    100.0 %