EX-99.1 2 exh991.htm PRESS RELEASE exh 99.1




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 NINE MONTHS ENDED SEPTEMBER 30, 2012

Highlights
•
Adjusted Funds from Operations (“AFFO”) of $0.26 and $0.75 per share-diluted.
•
GAAP net income to common shares of $0.20 and $0.57 per share-diluted.
•
Common stock cash dividend of $0.20 and $0.60 per share.
•
Book value per share of $5.51 at September 30, 2012 as compared to $5.38 at December 31, 2011.
•
Total revenues increased by $3.0 million, or 13% and $11.7 million, or 18% as compared to the three and nine months ended September 30, 2011.
•
Cash on hand of $169.5 million at September 30, 2012.

New York, N.Y., October 30, 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 nine months ended September 30, 2012.
•
AFFO for the three and nine months ended September 30, 2012 was $23.0 million, or $0.26 per share-diluted and $63.8 million, or $0.75 per share-diluted, respectively. A reconciliation of GAAP net income to AFFO is set forth in Schedule I of this release.
•
GAAP net income to common shares for the three and nine months ended September 30, 2012 was $18.2 million, or $0.20 per share-diluted and $49.1 million, or $0.57 per share-diluted, respectively as compared to $14.9 million, or $0.20 per share-diluted and $37.3 million, or $0.54 per share-diluted for the three and nine months ended September 30, 2011, respectively.

Jonathan Cohen, CEO and President of Resource Capital Corp., commented, "We continue to source new investments across all of the asset classes in which we participate. With growing revenues, good liquidity and good dividend coverage, we are in good shape. We look forward to investing proceeds from our common and preferred share offerings and substantially enlarging our real estate mortgage portfolio."






Additional highlights:

Commercial Real Estate
•
CRE loan portfolio is comprised of approximately 87% senior whole loans as of September 30, 2012, as compared to 83% a year ago.
•
RSO closed $152.6 million of new whole loans in the last twelve months with a weighted average yield of 6.9%, including origination fees. In addition, RSO funded $4.2 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 nine months ended September 30, 2012 (in millions, except percentages):
 
 
Three Months Ended
 
Nine Months Ended
 
12 Months Ended
 
Floating Weighted
Average Spread (1) (2)
 
Weighted Average
Fixed Rate (2)
 
 
September 30,
2012
 
September 30,
2012
 
September 30,
2012
 
 
New whole loans production (3) 
 
$
32.6

 
$
115.4

 
$
152.6

 
3.45%
 
9.6%
Sale of real estate loans
 
—

 
—

 
(14.4
)
 
 
 
 
Payoffs
 
(34.4
)
 
(56.6
)
 
(66.7
)
 
 
 
 
Principal paydowns
 
(2.4
)
 
(5.0
)
 
(5.0
)
 
 
 
 
Loans, net (4)
 
$
(4.2
)
 
$
53.8

 
$
66.5

 
 
 
 
________________
(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 September 30, 2012. Of these new loans, $145.7 million have LIBOR floors with a weighted average floor of 2.68%.
(2)
Reflects rates on RSO's portfolio balance as of September 30, 2012.
(3)
Whole loan production includes funding of previous commitments of $1.1 million, $4.2 million and $6.9 million for the three, nine and 12 months ended September 30, 2012, respectively.
(4)
The basis of new net loans does not include provisions for losses on legacy CRE loans of $1.0 million, $4.8 million and $5.7 million for the three, nine and 12 months ended September 30, 2012, respectively.

CMBS Securities
•
During the nine months ended September 30, 2012, RSO acquired $48.3 million of CMBS. These 2012 CMBS purchases were financed by RSO's Wells Fargo repurchase facility and were AAA rated by at least one rating agency. Also, on an unlevered basis, during the nine months ended September 30, 2012, RSO acquired $24.0 million, par value, of CMBS at a weighted average price of 90.95%.





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 third quarter of 2012 was $1.1 billion, at amortized cost, with a weighted-average spread of a weighted-average of one-month and three-month LIBOR plus 3.49% at September 30, 2012. RSO's bank loan portfolio is 100% match-funded through four collateralized loan obligation (“CLO”) issuances.
•
During the three and nine months ended September 30, 2012, RSO bought bank loans through its CLOs with a par value of $108.1 million and $369.8 million, respectively, at a net discount of $1.7 million and $5.9 million, respectively. These purchased loans have an aggregate weighted average unlevered annual yield of approximately 4.6% and 4.3%, respectively.
•
RSO, through its subsidiary Resource Capital Asset Management, earned $5.4 million of net fees during the nine months ended September 30, 2012.

Corporate
•
RSO issued a follow-on common stock offering, including over-allotment exercise for a total of 9.8 million shares during September 2012, at a net price of $5.69 per share, after underwriting commissions for net proceeds of $55.6 million.
•
RSO issued 1.0 million shares of its 8.25% Series B Cumulative Redeemable Preferred Stock, at a price of $24.2125 per share with a liquidation preference of $25.00 per share for net proceeds of $24.2 million which were received on October 2, 2012.
•
RSO also sold 411,000 shares of its 8.50% Series A cumulative Preferred Stock at a weighted average price of $24.25 for net proceeds of $9.8 million through September 30, 2012 through an at-the-market program.

Book Value

As of September 30, 2012, RSO's book value per common share was $5.51, an increase from $5.38 per common share at December 31, 2011. Total stockholders' equity was $587.5 million as of September 30, 2012 as compared to $429.7 million as of December 31, 2011. Total common shares outstanding were 99,482,787 as of September 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 September 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
September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
Floating rate
 
 
 
 
 
 
 
 
 
 
 
 
RMBS
 
$
6,093

 
36.32
%
 
$
5,548

 
33.07
%
 
$
(545
)
 
(3.25
)%
CMBS-private placement
 
28,170

 
100.00
%
 
12,667

 
44.97
%
 
(15,503
)
 
(55.03
)%
Structured notes
 
9,413

 
26.67
%
 
20,256

 
57.39
%
 
10,843

 
30.72
 %
Other ABS
 
—

 
—
%
 
23

 
0.28
%
 
23

 
0.28
 %
Mezzanine loans (1)
 
15,842

 
99.93
%
 
15,641

 
98.66
%
 
(201
)
 
(1.27
)%
Whole loans (1)
 
521,656

 
99.66
%
 
515,009

 
98.39
%
 
(6,647
)
 
(1.27
)%
Bank loans (2)
 
1,106,810

 
98.15
%
 
1,101,676

 
97.69
%
 
(5,134
)
 
(0.46
)%
Loans held for sale
 
45,187

 
89.87
%
 
45,187

 
89.87
%
 
—

 
—
 %
ABS Securities
 
27,762

 
89.36
%
 
27,435

 
88.31
%
 
(327
)
 
(1.05
)%
Total floating rate
 
1,760,933

 
95.86
%
 
1,743,442

 
94.91
%
 
(17,491
)
 
(0.95
)%
Fixed rate
 
 
 
 
 
 
 
 
 
 
 
 
CMBS - private placement
 
164,192

 
76.37
%
 
164,256

 
76.40
%
 
64

 
0.03
 %
B notes (1)
 
16,357

 
99.26
%
 
16,150

 
98.00
%
 
(207
)
 
(1.26
)%
Mezzanine loans (1)
 
51,980

 
100.08
%
 
51,322

 
98.82
%
 
(658
)
 
(1.26
)%
Whole loans (1)
 
—

 
—
%
 
—

 
—
%
 
—

 
—
 %
Loans receivable-related party
 
9,116

 
100.00
%
 
9,116

 
100.00
%
 
—

 
—
 %
Total fixed rate
 
241,645

 
82.61
%
 
240,844

 
82.33
%
 
(801
)
 
(0.28
)%
Other (non-interest bearing)
 
 
 
 
 
 
 
 
 
 
 
 
Investment in real estate
 
72,453

 
100.00
%
 
72,453

 
100.00
%
 
—

 
—
 %
Investment in unconsolidated
  entities
 
47,020

 
100.00
%
 
47,020

 
100.00
%
 
—

 
—
 %
Total other
 
119,473

 
100.00
%
 
119,473

 
100.00
%
 
—

 
—
 %
Grand total
 
$
2,122,051

 
94.36
%
 
$
2,103,759

 
93.55
%
 
$
(18,292
)
 
(0.81
)%
________________
(1)
Net carrying amount includes an allowance for loan losses of $7.7 million at September 30, 2012, allocated as follows: B notes ($207,000), mezzanine loans ($858,000) and whole loans ($6.6 million).
(2)
Net carrying amount includes an allowance for loan losses of $5.1 million at September 30, 2012.

Liquidity

At October 26, 2012, after paying RSO's third quarter common stock dividend, RSO's liquidity is provided by two primary sources:
•
unrestricted cash and cash equivalents of $98.9 million, restricted cash of $500,000 in margin call accounts and $1.4 million in the form of real estate escrows, reserves and deposits; and
•
capital available for reinvestment in its six CDO entities of $23.3 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 $41.2 million and $8.7 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 $42.0 million and $121.1 million, respectively.




Capital Allocation

As of September 30, 2012, RSO had allocated its invested equity capital among its targeted asset classes as follows: 70% in CRE assets, 28% in commercial finance assets and 2% in other investments.

Supplemental Information

The following schedules of reconciliations or supplemental information as of September 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)
 
September 30,
 
December 31,
 
2012
 
2011
 
(unaudited)
 
 
ASSETS
 
 
 
Cash and cash equivalents
$
112,732

 
$
43,116

Restricted cash
56,718

 
142,806

Investment securities, trading
25,804

 
38,673

Investment securities available-for-sale, pledged as collateral, at fair value
174,243

 
153,366

Investment securities available-for-sale, at fair value
30,138

 
4,678

Loans held for sale
45,187

 
3,154

Property available-for-sale
—

 
2,980

Investment in real estate
72,453

 
48,027

Loans, pledged as collateral and net of allowances of $12.8 million and
$27.5 million
1,699,798

 
1,772,063

Loans receivable–related party
9,116

 
9,497

Investments in unconsolidated entities
47,020

 
47,899

Interest receivable
7,239

 
8,836

Deferred tax asset
666

 
626

Intangible assets
17,104

 
19,813

Prepaid expenses
8,507

 
648

Subscription receivable
24,213

 
—

Other assets
4,884

 
3,445

Total assets
$
2,335,822

 
$
2,299,627

LIABILITIES
 

 
 

Borrowings
$
1,683,396

 
$
1,808,986

Distribution payable
20,136

 
19,979

Accrued interest expense
3,204

 
3,260

Derivatives, at fair value
16,195

 
13,210

Accrued tax liability
7,598

 
12,567

Deferred tax liability
4,353

 
5,624

Accounts payable and other liabilities
13,449

 
6,311

Total liabilities
1,748,331

 
1,869,937

STOCKHOLDERS’ EQUITY
 

 
 

Preferred stock, par value $0.001:  100,000,000 shares authorized 8.50% Series A per share, 676,373 shares issued and outstanding
1

 
—

Common stock, par value $0.001:  500,000,000 shares authorized; 99,482,787 and 79,877,516 shares issued and outstanding (including 1,637,343 and 1,428,931 unvested restricted shares)
100

 
80

Additional paid-in capital
809,147

 
659,700

Accumulated other comprehensive loss
(32,903
)
 
(46,327
)
Distributions in excess of earnings
(188,854
)
 
(183,763
)
Total stockholders’ equity
587,491

 
429,690

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,335,822

 
$
2,299,627






RESOURCE CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2012
 
2011
 
2012
 
2011
REVENUES
 
 
 
 
 
 
 
Interest income:
 
 
 
 
 
 
 
Loans
$
24,130

 
$
18,863

 
$
70,757

 
$
60,704

Securities
3,757

 
3,383

 
11,093

 
9,098

Interest income − other
2,218

 
3,899

 
8,204

 
6,834

Total interest income
30,105

 
26,145

 
90,054

 
76,636

Interest expense
8,268

 
7,175

 
25,647

 
21,170

Net interest income
21,837

 
18,970

 
64,407

 
55,466

Rental income
2,689

 
1,592

 
6,642

 
1,772

Dividend income
—

 
926

 
—

 
2,453

Fee income
1,969

 
1,960

 
6,160

 
5,859

Total revenues
26,495

 
23,448

 
77,209

 
65,550

OPERATING EXPENSES
 

 
 

 
 

 
 

Management fees − related party
5,521

 
3,136

 
13,512

 
8,622

Equity compensation − related party
1,404

 
316

 
3,412

 
1,399

Professional services
1,038

 
624

 
3,196

 
2,532

Insurance
161

 
161

 
478

 
497

Rental operating expense
1,827

 
1,065

 
4,456

 
1,395

General and administrative
844

 
1,273

 
3,377

 
3,194

Depreciation and amortization
1,249

 
1,856

 
3,974

 
2,865

Income tax expense
3,979

 
1,289

 
6,978

 
4,269

Total operating expenses
16,023

 
9,720

 
39,383

 
24,773

 
10,472

 
13,728

 
37,826

 
40,777

OTHER REVENUE (EXPENSE)
 

 
 

 
 

 
 

Net impairment losses recognized in earnings
(9
)
 
—

 
(180
)
 
(4,649
)
Net realized gain on the sales of investment securities available-for-sale and loans
346

 
591

 
2,148

 
4,443

Net realized and unrealized gain on investment securities, trading
9,782

 
(1,861
)
 
13,350

 
1,418

Provision for loan losses
(1,370
)
 
(1,198
)
 
(7,801
)
 
(7,917
)
Gain on the extinguishment of debt
—

 
3,875

 
5,464

 
3,875

Other expenses
(761
)
 
(191
)
 
(1,416
)
 
(642
)
Total other revenue (expense)
7,988

 
1,216

 
11,565

 
(3,472
)
NET INCOME
18,460

 
14,944

 
49,391

 
37,305

Net income allocated to preferred shares
(308
)
 
—

 
(333
)
 
—

NET INCOME ALLOCABLE TO COMMON SHARES
$
18,152

 
$
14,944

 
$
49,058

 
$
37,305

NET INCOME PER SHARE – BASIC
$
0.20

 
$
0.20

 
$
0.58

 
$
0.55

NET INCOME PER SHARE – DILUTED
$
0.20

 
$
0.20

 
$
0.57

 
$
0.54

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING − BASIC
89,066,927

 
73,761,028

 
84,594,892

 
68,254,639

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING − DILUTED
89,965,680

 
74,283,894

 
85,365,343

 
68,613,363

DIVIDENDS DECLARED PER SHARE
$
0.20

 
$
0.25

 
$
0.60

 
$
0.75





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

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.
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2012 (1)
 
2012 (1)
Net income allocable to common shares − GAAP
$
18,152

 
$
49,058

Adjustments:
 

 
 

Real estate depreciation and amortization
536

 
2,025

Gains on sales of property (2)
(353
)
 
(1,440
)
FFO (1)
18,335

 
49,643

Adjustments:
 
 
 
Non-cash items:
 
 
 
Provisions for loan losses
40

 
4,508

Amortization of deferred costs (non real estate) and intangible assets
1,765

 
5,756

Equity investment losses
1,025

 
2,300

Share-based compensation
1,404

 
3,412

Impairment losses on real property held for sale
10

 
180

Straight line rental adjustments
2

 
14

Gain on the extinguishment of debt
—

 
(1,835
)
Cash items:
 

 
 

Gains on sales of joint venture real estate interests (2)
353

 
1,440

 Gain on the extinguishment of debt
663

 
663

Capital expenditures
(591
)
 
(2,255
)
AFFO
$
23,006

 
$
63,826

Weighted average shares - diluted
89,966

 
85,365

AFFO per share - diluted
$
0.26

 
$
0.75

(1)
RSO disclosed FFO in the comparable periods of $16.2 million and $40.2 million for the three and nine months ended September 30, 2011. Comparative AFFO data is not provided since RSO did not present these metrics in the comparable periods of 2011.
(2)
Amount represents gains on sales of joint venture real estate interests from a joint venture recorded by RSO.




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:
 
 
 
 
Cash Distributions
 
Annualized Interest Coverage Cushion
 
Overcollateralization Cushion
 
 
 
 
Year Ended
 
Nine Months Ended
 
As of
 
As of
 
As of Initial
 
 
 
 
December 31,
 
September 30,
 
September 30,
 
September 30,
 
Measurement
Name
 
CDO Type
 
2011 (1)
 
2012 (1)
 
2012 (2) (3)
 
2012 (4)
 
Date
 
 
 
 
(actual)
 
(actual)
 
 
 
 
 
 
Apidos CDO I (5)
 
CLO
 
$
9,305

 
$
6,257

 
$
6,326

 
$
13,833

 
$
17,136

Apidos CDO III (6)
 
CLO
 
$
8,351

 
$
6,161

 
$
3,518

 
$
9,634

 
$
11,269

Apidos Cinco CDO
 
CLO
 
$
9,941

 
$
7,924

 
$
6,147

 
$
18,930

 
$
17,774

Apidos CLO VIII (7)
 
CLO
 
$
—

 
$
4,119

 
$
4,200

 
$
14,610

 
$
13,657

RREF 2006-1(8)
 
CRE CDO
 
$
11,637

 
$
12,237

 
$
11,421

 
$
45,799

 
$
24,941

RREF 2007-1(9)
 
CRE CDO
 
$
10,743

 
$
10,099

 
$
12,036

 
$
34,845

 
$
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, distributions include $757,000 in subordinated management fees; RSO's 43% ownership of the preference share was $15.0 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):
 
 
September 30,
 
December 31,
 
 
2012
 
2011
Allowance for loan losses:
 
 
 
 
Specific allowance:
 
 
 
 
Commercial real estate loans
 
$
1,869

 
$
17,065

Bank loans
 
2,131

 
1,593

Total specific allowance
 
4,000

 
18,658

General allowance:
 
 
 
 
Commercial real estate loans
 
5,844

 
7,156

Bank loans
 
3,003

 
1,704

Total general allowance
 
8,847

 
8,860

Total allowance for loans and leases
 
$
12,847

 
$
27,518

Allowance as a percentage of total loans
 
0.7
%
 
1.5
%
 
 
 
 
 
Loans held for sale:
 
 
 
 
Commercial real estate loans held for sale
 
$
34,000

 
$
—

Bank loans held for sale
 
11,187

 
3,154

Loans held for sale (1)
 
$
45,187

 
$
3,154

__________________
(1)
Loans held for sale are held 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 September 30, 2012 (based on par value):
Security type:
 
Whole loans
86.9
%
Mezzanine loans
10.6
%
B Notes
2.5
%
Total
100.0
%
 
 
Collateral type:
 
Multifamily
29.3
%
Hotel
23.8
%
Retail
22.1
%
Office
15.9
%
Flex
1.1
%
Industrial
1.1
%
Self-storage
1.0
%
Other
5.7
%
Total
100.0
%
 
 
Collateral location:
 
Southern California
33.2
%
Northern California
12.3
%
Arizona
8.9
%
Texas
8.2
%
Washington
4.7
%
Florida
4.6
%
Colorado
1.7
%
New York
1.6
%
Other
24.8
%
Total
100.0
%





RESOURCE CAPITAL CORP. AND SUBSIDIARIES
SUPPLEMENTAL INFORMATION
(unaudited)

The following table presents bank loan portfolio statistics by industry as of September 30, 2012 (based on par value):
Industry type:
 
Healthcare, education and childcare
13.9
%
Diversified/conglomerate service
11.6
%
Broadcasting and entertainment
7.3
%
Automobile
6.9
%
Chemicals, plastics and rubber
5.8
%
Retail Stores
5.7
%
Electronics
4.9
%
Telecommunications
3.8
%
Hotels, motels, inns and gaming
3.6
%
Personal, food and miscellaneous services
3.1
%
Leisure, amusement, motion pictures, entertainment
3.0
%
Aerospace and defense
3.0
%
Other
27.4
%
Total
100.0
%