Maryland | 1-32733 | 20-2287134 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of Incorporation) | File Number) | Identification No.) | ||
712 Fifth Avenue, 12th Floor New York, NY | 10019 | |||
(Address of principal executive offices) | (Zip Code) |
(d) | The exhibit furnished as part of this report is identified in the Exhibit Index immediately following the signature page of this report. Such Exhibit Index is incorporated herein by this reference. |
Resource Capital Corp. | ||||
/s/ David J. Bryant | ||||
Date: | November 3, 2015 | David J. Bryant Chief Financial Officer |
Exhibit No. | Description | |||
EX 99.1 | Press Release |
CONTACT: | DAVID J. BRYANT |
• | Adjusted Funds from Operations (“AFFO”) of $0.44 and $1.71 per share (see Schedule I). |
• | Closed a $312.9 million CRE securitization at a weighted average cost of LIBOR + 171 bps. |
• | From mid-August through November 2, 2015, RSO has repurchased $24.8 million of common stock, which includes $15.4 million repurchased through September 30, 2015. |
• | Net interest income increased $89,000, or 0.4% and $6.1 million, or 10.3%, as compared to the three and nine months ended September 30, 2014. |
• | Originated $147.8 million in new commercial real estate ("CRE") loans during the three month period, $489.1 million during the nine month period and $791.4 million during the 12 month period. |
• | GAAP net income (loss) allocable to common shares of $0.21 and $(0.45) per share. |
• | Common stock cash dividend of $0.64 and $1.92 per share. |
• | AFFO for the three and nine months ended September 30, 2015 was $14.6 million, or $0.44 per share and $56.0 million, or $1.71 per share, respectively, as compared to $24.3 million, or $0.74 per share and $73.3 million, or $2.28 for the three and nine months ended September 30, 2014, respectively. A reconciliation of GAAP net income (loss) to AFFO is set forth in Schedule I of this release. |
• | GAAP net income (loss) allocable to common shares for the three and nine months ended September 30, 2015 was $6.8 million, or $0.21 per share-diluted and ($14.8) million, or $(0.45) as compared to net income of $7.3 million, or $0.22 per share-diluted and $37.1 million, or $1.15 for the three and nine months ended September 30, 2014, respectively. |
• | CRE loan portfolio, at carrying value, is comprised of approximately 99% senior whole loans as of September 30, 2015, an increase from 94% as of December 31, 2014. |
• | $1.5 billion, or 93%, of floating rate loans in the CRE portfolio have London Interbank Offered Rate (“LIBOR”) floors with a weighted average floor of 0.49%, or 30 basis points above one-month LIBOR, as of September 30, 2015. |
• | Interest income on whole loans increased by $7.1 million, or 49.8%, to $21.5 million during the three months ended September 30, 2015 as compared to $14.4 million during the three months ended September 30, 2014. |
• | Closed and funded $710.5 million of new whole loans in the 12 months ended September 30, 2015, with a weighted average yield of 5.61%, including amortization of origination fees. |
Three Months Ended | Nine Months Ended | 12 Months Ended | Floating Weighted Average Spread (1) (2) | Weighted Average Fixed Rate | |||||||||||||
September 30, 2015 | September 30, 2015 | September 30, 2015 | |||||||||||||||
New whole loans funded and originated | $ | 139.8 | $ | 454.7 | $ | 710.5 | 4.64 | % | — | % | |||||||
Unfunded loan commitments | 8.0 | 34.4 | 80.9 | ||||||||||||||
New loans originated | 147.8 | 489.1 | 791.4 | ||||||||||||||
Payoffs (3) | (65.7 | ) | (170.3 | ) | (190.8 | ) | |||||||||||
Previous commitments funded | 11.1 | 36.6 | 46.3 | ||||||||||||||
Principal pay downs | (0.4 | ) | (2.0 | ) | (4.3 | ) | |||||||||||
Unfunded loan commitments | (8.0 | ) | (34.4 | ) | (80.9 | ) | |||||||||||
Loans, net funded | $ | 84.8 | $ | 319.0 | $ | 561.7 |
(1) | Represents the weighted-average rate above the one-month LIBOR on loans whose interest rate is based on LIBOR as of September 30, 2015. $94.8 million of loans originated during the three months ended September 30, 2015 have LIBOR floors, with a weighted average floor of 0.21%, or 2 basis points, above one-month LIBOR as of September 30, 2015. |
(2) | Reflects rates on new whole loans funded and originated during the three months ended September 30, 2015. |
(3) | CRE loan payoffs and extensions resulted in $1.1 million of exit fees earned during the nine months ended September 30, 2015. |
• | During 2015, RSO increased the total availability on a syndicated revolving credit facility used to fund middle market loans by $85.0 million, from $140.0 million to $225.0 million, and total commitment to $300.0 million. At September 30, 2015, $162.0 million was outstanding on the facility. |
• | RSO's middle market loan portfolio was $349.5 million at amortized cost, with a weighted-average spread of one-month and three-month LIBOR plus 8.44% at September 30, 2015. |
• | RSO's legacy bank loan portfolio, including asset-backed securities (“ABS”), corporate bonds, and loans held for sale was $152.6 million at amortized cost, with a weighted-average spread of one-month and three-month LIBOR plus 3.60% at September 30, 2015. RSO's bank loan portfolio was completely match-funded through a collateralized loan obligation issuer ("CLO"). |
• | RSO earned $2.7 million of net fees through its subsidiary, Resource Capital Asset Management, during the nine months ended September 30, 2015. |
Three Months Ended September 30, 2015 | Nine Months Ended September 30, 2015 | 12 Months Ended September 30, 2015 | Weighted Average Spread (1) | Weighted Average All-in Rate (2) | Weighted Average Yield | |||||||||||||||
New loans funded and originated | $ | 33.1 | $ | 130.1 | $ | 216.8 | 8.44 | % | 9.49 | % | 9.76 | % | ||||||||
Unfunded loan commitments | — | 4.8 | 6.3 | |||||||||||||||||
New loans originated | 33.1 | 134.9 | 223.1 | |||||||||||||||||
Payoffs and sales | (20.7 | ) | (53.7 | ) | (58.4 | ) | ||||||||||||||
Previous commitments funded | 7.6 | 12.7 | 13.2 | |||||||||||||||||
Principal pay downs | (1.5 | ) | (4.5 | ) | (6.4 | ) | ||||||||||||||
Unfunded loan commitments | — | (4.8 | ) | (6.3 | ) | |||||||||||||||
Loans, net funded | $ | 18.5 | $ | 84.6 | $ | 165.2 |
(1) | Represents the weighted-average rate above the one-month and three-month LIBOR on loans whose interest rate is based on LIBOR as of September 30, 2015, excluding fees. Of these loans, $293.2 million have LIBOR floors with a weighted average floor of 1.21%. |
(2) | Reflects rates on RSO's portfolio balance as of September 30, 2015, excluding fees. |
• | unrestricted cash and cash equivalents of $76.5 million and restricted cash of $1.7 million in margin call accounts; |
• | capital available for reinvestment in one of RSO's CRE collateralized debt obligation issuers ("CDO") of $250,000 and two of its CRE securitizations of $6.7 million, all of which is designated to finance future funding commitments on CRE loans; and |
• | loan principal repayments of $16.9 million that will pay down outstanding CLO note balances, as well as interest collections of $1.8 million. |
Outstanding common shares, beginning of period July 1, 2015 | 134,172,504 | ||
Issuances through DRSPP (1) in July and August | 18,337 | ||
Restricted share issuance net of forfeitures - August | 44,421 | ||
Shares repurchased during August | (2,292,700 | ) | |
Outstanding shares prior to effective reverse stock split | 131,942,562 | ||
Outstanding shares immediately following 1-4 reverse stock split | 32,985,641 | ||
Issuances though DRSPP, net of forfeitures - September | 212 | ||
Shares repurchased during September | (615,831 | ) | |
Outstanding common shares, end of period September 30, 2015 | 32,370,022 | ||
Less: unvested restricted stock at September 30, 2015 | (694,430 | ) | |
Common shares used to determine book value per share | 31,675,592 |
Amortized Cost | Net Carrying Amount | Percent of Portfolio | Weighted Average Coupon | |||||||||
As of September 30, 2015 | ||||||||||||
Loans Held for Investment: | ||||||||||||
Commercial real estate loans (1): | ||||||||||||
Whole loans | $ | 1,603,385 | $ | 1,599,371 | 62.69 | % | 5.21% | |||||
B notes | 15,964 | 15,944 | 0.62 | % | 8.68% | |||||||
Mezzanine loans | 45,387 | 7,307 | 0.29 | % | 9.01% | |||||||
Bank loans (4) | 149,633 | 148,549 | 5.82 | % | 3.72% | |||||||
Middle market loans (5) | 349,471 | 345,385 | 13.54 | % | 9.49% | |||||||
Residential mortgage loans | 2,422 | 2,422 | 0.09 | % | 4.44% | |||||||
2,166,262 | 2,118,978 | 83.05 | % | |||||||||
Loans held for sale (2): | ||||||||||||
Bank loans | 2,994 | 2,994 | 0.12 | % | 1.97% | |||||||
Residential mortgage loans | 113,007 | 113,007 | 4.43 | % | 3.90% | |||||||
116,001 | 116,001 | 4.55 | % | |||||||||
Investments in Available-for-Sale Securities: | ||||||||||||
CMBS-private placement | 175,167 | 177,825 | 6.97 | % | 5.19% | |||||||
RMBS | 2,286 | 2,320 | 0.09 | % | 5.19% | |||||||
ABS (3) | 47,110 | 52,148 | 2.04 | % | N/A | |||||||
Corporate Bonds | 2,420 | 2,307 | 0.09 | % | 4.88% | |||||||
226,983 | 234,600 | 9.19 | % | |||||||||
Investment Securities-Trading: | ||||||||||||
Structured notes (3) | 29,647 | 25,715 | 1.01 | % | N/A | |||||||
29,647 | 25,715 | 1.01 | % | |||||||||
Other (non-interest bearing): | ||||||||||||
Property held for sale | 180 | 180 | 0.01 | % | N/A | |||||||
Investment in unconsolidated entities | 55,858 | 55,858 | 2.19 | % | N/A | |||||||
56,038 | 56,038 | 2.20 | % | |||||||||
Total Investment Portfolio | $ | 2,594,931 | $ | 2,551,332 | 100.00 | % |
(1) | Net carrying amount includes allowance for loan losses of $42.1 million at September 30, 2015, allocated as follows: general allowance: B notes $20,000, mezzanine loans $8,000 and whole loans $1.8 million; specific allowance: mezzanine loans $38.1 million and whole loans $2.2 million. |
(2) | Loans held for sale are carried at the lower of cost or market. |
(3) | There is no stated rate associated with these securities. |
(4) | Net carrying amount includes allowance for loan losses of $1.1 million at September 30, 2015. |
(5) | Net carrying amount includes allowance for loan losses of $4.1 million at September 30, 2015. |
• | Schedule I - Reconciliation of GAAP Net Income (Loss) to Funds from Operations (“FFO”) and AFFO. |
• | Schedule II - Summary of Securitization Performance Statistics. |
• | Supplemental Information regarding loan investment statistics, CRE loans, bank loans and middle market loans. |
• | 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 have in the past affected and may in the future 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 have in the past impaired and may in the future impair the credit quality of borrowers and RSO's ability to originate loans. |
September 30, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
ASSETS (1) | |||||||
Cash and cash equivalents | $ | 104,735 | $ | 79,905 | |||
Restricted cash | 24,110 | 122,138 | |||||
Investment securities, trading | 25,715 | 20,786 | |||||
Investment securities available-for-sale, pledged as collateral, at fair value | 118,797 | 197,800 | |||||
Investment securities available-for-sale, at fair value | 115,803 | 77,920 | |||||
Linked transactions, net at fair value | — | 15,367 | |||||
Loans held for sale ($105.1 million and $113.4 at fair value) | 116,001 | 113,675 | |||||
Property held for sale | 180 | 180 | |||||
Loans, pledged as collateral and net of allowances of $47.3 million and $4.6 million | 2,118,978 | 1,925,980 | |||||
Loans receivable–related party | — | 558 | |||||
Investments in unconsolidated entities | 55,858 | 59,827 | |||||
Derivatives, at fair value | 3,730 | 5,304 | |||||
Interest receivable | 13,923 | 16,260 | |||||
Deferred tax asset, net | 11,351 | 12,634 | |||||
Principal paydown receivable | 32,100 | 40,920 | |||||
Direct financing leases | 1,135 | 2,109 | |||||
Intangible assets | 25,806 | 18,610 | |||||
Prepaid expenses | 5,049 | 4,196 | |||||
Other assets | 12,771 | 14,510 | |||||
Total assets | $ | 2,786,042 | $ | 2,728,679 | |||
LIABILITIES (2) | |||||||
Borrowings | $ | 1,880,891 | $ | 1,716,871 | |||
Distribution payable | 24,744 | 30,592 | |||||
Accrued interest expense | 5,437 | 2,123 | |||||
Derivatives, at fair value | 7,466 | 8,476 | |||||
Accrued tax liability | 4,697 | 9,219 | |||||
Accounts payable and other liabilities | 9,531 | 9,287 | |||||
Total liabilities | 1,932,766 | 1,776,568 | |||||
EQUITY | |||||||
Preferred stock, par value $0.001: 10,000,000 shares authorized 8.50% Series A cumulative redeemable preferred shares, liquidation preference $25.00 per share,1,069,016 and 1,069,016 shares issued and outstanding | 1 | 1 | |||||
Preferred stock, par value $0.001: 10,000,000 shares authorized 8.25% Series B cumulative redeemable preferred shares, liquidation preference $25.00 per share 5,740,479 and 5,601,146 shares issued and outstanding | 6 | 6 | |||||
Preferred stock, par value $0.001: 10,000,000 shares authorized 8.625% Series C cumulative redeemable preferred shares, liquidation preference $25.00 per share 4,800,000 and 4,800,000 shares issued and outstanding | 5 | 5 | |||||
Common stock, par value $0.001: 125,000,000 shares authorized; 32,370,022 and 33,243,794 shares issued and outstanding (including 694,430 and 505,910 unvested restricted shares) | 32 | 33 | |||||
Additional paid-in capital | 1,237,198 | 1,245,345 | |||||
Accumulated other comprehensive income (loss) | 374 | 6,043 | |||||
Distributions in excess of earnings | (394,278 | ) | (315,910 | ) | |||
Total stockholders’ equity | 843,338 | 935,523 | |||||
Non-controlling interests | 9,938 | 16,588 | |||||
Total equity | 853,276 | 952,111 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 2,786,042 | $ | 2,728,679 |
September 30, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
(1) Assets of consolidated Variable Interest Entities ("VIEs") included in the total assets above: | |||||||
Cash and cash equivalents | $ | 188 | $ | 25 | |||
Restricted cash | 22,206 | 121,247 | |||||
Investment securities available-for-sale, pledged as collateral, at fair value | 76,517 | 119,203 | |||||
Loans held for sale | 2,994 | 282 | |||||
Loans, pledged as collateral and net of allowances of $43.0 million and $3.3 million | 1,566,454 | 1,261,137 | |||||
Interest receivable | 7,848 | 8,941 | |||||
Prepaid expenses | 194 | 221 | |||||
Principal paydown receivable | 32,100 | 25,767 | |||||
Other assets | 882 | (12 | ) | ||||
Total assets of consolidated VIEs | $ | 1,709,383 | $ | 1,536,811 | |||
(2) Liabilities of consolidated VIEs included in the total liabilities above: | |||||||
Borrowings | $ | 1,189,092 | $ | 1,046,494 | |||
Accrued interest expense | 953 | 1,000 | |||||
Derivatives, at fair value | 4,774 | 8,439 | |||||
Unsettled loan purchases | — | (529 | ) | ||||
Accounts payable and other liabilities | 208 | (386 | ) | ||||
Total liabilities of consolidated VIEs | $ | 1,195,027 | $ | 1,055,018 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
REVENUES | |||||||||||||||
Interest income: | |||||||||||||||
Loans | $ | 33,502 | $ | 27,026 | $ | 95,924 | $ | 73,474 | |||||||
Securities | 4,866 | 5,168 | 14,418 | 12,563 | |||||||||||
Leases | (8 | ) | — | 250 | — | ||||||||||
Interest income − other | 968 | 1,647 | 2,919 | 5,481 | |||||||||||
Total interest income | 39,328 | 33,841 | 113,511 | 91,518 | |||||||||||
Interest expense | 16,906 | 11,508 | 47,611 | 31,746 | |||||||||||
Net interest income | 22,422 | 22,333 | 65,900 | 59,772 | |||||||||||
Rental income | — | 1,118 | — | 7,777 | |||||||||||
Dividend income | 17 | 16 | 50 | 169 | |||||||||||
Fee income | 1,266 | 2,344 | 6,317 | 7,166 | |||||||||||
Total revenues | 23,705 | 25,811 | 72,267 | 74,884 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Management fees − related party | 3,252 | 3,606 | 10,312 | 10,000 | |||||||||||
Equity compensation − related party | (225 | ) | 798 | 1,561 | 4,497 | ||||||||||
Rental operating expense | — | 695 | 6 | 5,168 | |||||||||||
Lease operating | (33 | ) | — | 14 | — | ||||||||||
General and administrative - Corporate | 4,372 | 3,716 | 13,222 | 11,305 | |||||||||||
General and administrative - PCM | 6,966 | 4,631 | 20,767 | 12,196 | |||||||||||
Depreciation and amortization | 628 | 562 | 1,814 | 2,158 | |||||||||||
Impairment losses | — | — | 59 | — | |||||||||||
Provision (recovery) for loan losses | 1,034 | 1,439 | 43,834 | (1,739 | ) | ||||||||||
Total operating expenses | 15,994 | 15,447 | 91,589 | 43,585 | |||||||||||
7,711 | 10,364 | (19,322 | ) | 31,299 | |||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Equity in earnings of unconsolidated subsidiaries | 334 | 887 | 1,702 | 4,663 | |||||||||||
Net realized and unrealized gain (loss) on sales of investment securities available-for-sale and loans and derivatives | 5,812 | 4,226 | 29,980 | 7,962 | |||||||||||
Net realized and unrealized gain (loss) on investment securities, trading | (580 | ) | 376 | 1,773 | (1,834 | ) | |||||||||
Unrealized gain (loss) and net interest income on linked transactions, net | — | 177 | 235 | 7,494 | |||||||||||
(Loss) on reissuance/gain on extinguishment of debt | (332 | ) | (1,867 | ) | (1,403 | ) | (2,469 | ) | |||||||
(Loss) gain on sale of real estate | (19 | ) | (69 | ) | (19 | ) | 2,973 | ||||||||
Other income (expense) | — | — | — | (1,262 | ) | ||||||||||
Total other income (expense) | 5,215 | 3,730 | 32,268 | 17,527 | |||||||||||
INCOME (LOSS) BEFORE TAXES | 12,926 | 14,094 | 12,946 | 48,826 | |||||||||||
Income tax (expense) benefit | 1,796 | 237 | (2,969 | ) | 667 | ||||||||||
NET INCOME (LOSS) | 14,722 | 14,331 | 9,977 | 49,493 | |||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net (income) loss allocated to preferred shares | (6,115 | ) | (5,545 | ) | (18,322 | ) | (11,303 | ) | |||||||
Net (income) loss allocable to non-controlling interest, net of taxes | (1,829 | ) | (1,458 | ) | (6,486 | ) | (1,069 | ) | |||||||
NET INCOME (LOSS) ALLOCABLE TO COMMON SHARES | $ | 6,778 | $ | 7,328 | $ | (14,831 | ) | $ | 37,121 | ||||||
NET INCOME (LOSS) PER COMMON SHARE – BASIC | $ | 0.21 | $ | 0.23 | $ | (0.45 | ) | $ | 1.17 | ||||||
NET INCOME (LOSS) PER COMMON SHARE – DILUTED | $ | 0.21 | $ | 0.22 | $ | (0.45 | ) | $ | 1.15 | ||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING − BASIC | 32,515,226 | 32,413,591 | 32,726,194 | 31,858,595 | |||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING − DILUTED | 32,951,217 | 32,806,940 | 32,726,194 | 32,176,479 |
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income (loss) allocable to common shares - GAAP | $ | 6,778 | $ | 7,328 | $ | (14,831 | ) | $ | 37,121 | ||||||
Adjustments: | |||||||||||||||
Real estate depreciation and amortization | — | — | — | 506 | |||||||||||
(Gains) losses on sales of property (1) | 19 | (701 | ) | 19 | (5,479 | ) | |||||||||
Gains on sale of preferred equity | — | (58 | ) | — | (1,107 | ) | |||||||||
FFO allocable to common shares | 6,797 | 6,569 | (14,812 | ) | 31,041 | ||||||||||
Adjustments: | |||||||||||||||
Non-cash items: | |||||||||||||||
Provision (recovery) for loan losses | 830 | 528 | 42,570 | 1,091 | |||||||||||
Amortization of deferred costs (non real estate) and intangible assets | 3,900 | 2,641 | 9,754 | 5,804 | |||||||||||
Amortization of discount on convertible senior notes | 708 | 429 | 1,656 | 1,452 | |||||||||||
Equity investment (gains) losses | (961 | ) | (13 | ) | (1,363 | ) | 1,547 | ||||||||
Share-based compensation | (225 | ) | 798 | 1,560 | 4,497 | ||||||||||
Impairment losses | — | — | 59 | — | |||||||||||
Unrealized losses (gains) on CMBS marks - linked transactions (2) | — | 211 | (235 | ) | (1,991 | ) | |||||||||
Unrealized (gains) losses on trading portfolio | 1,054 | (214 | ) | (264 | ) | 1,257 | |||||||||
Unrealized (gains) losses on FX transactions | (2,750 | ) | 2,687 | 2,101 | 2,541 | ||||||||||
Unrealized (gains) losses on derivatives | 1,248 | 379 | 2,324 | 379 | |||||||||||
Straight-line rental adjustments | — | — | — | 2 | |||||||||||
Loss on resale of debt | 332 | 1,867 | 1,403 | 2,469 | |||||||||||
Change in mortgage servicing rights valuation reserve | 900 | — | 650 | 300 | |||||||||||
Change in residential loan warranty reserve | 201 | — | 601 | — | |||||||||||
Dead deal costs | — | — | 399 | — | |||||||||||
REIT tax planning adjustments | — | 293 | 317 | 1,420 | |||||||||||
Cash items: | |||||||||||||||
Gains (losses) on sale of property (1) | (19 | ) | 701 | (19 | ) | 5,479 | |||||||||
Gains on sale of preferred equity | — | 58 | — | 1,107 | |||||||||||
Gains (losses) on extinguishment of debt | 2,607 | 7,333 | 9,252 | 14,932 | |||||||||||
Capital expenditures | — | — | — | (38 | ) | ||||||||||
AFFO allocable to common shares | $ | 14,622 | $ | 24,267 | $ | 55,953 | $ | 73,289 | |||||||
Weighted average shares – diluted | 32,951 | 32,807 | 32,726 | 32,176 | |||||||||||
AFFO per share – diluted | $ | 0.44 | $ | 0.74 | $ | 1.71 | $ | 2.28 |
(1) | Amount represents gains/losses on sales of owned real estate as well as sales of joint venture real estate interests that were recorded by RSO on an equity basis. |
(2) | As the result of an accounting standards update adopted on January 1, 2015, RSO unlinked its previously linked transactions. |
Name | Cash Distributions | Annualized Interest Coverage Cushion | Overcollateralization Cushion | |||||||||||||||||
Nine Months Ended September 30, | Year Ended December 31, | As of September 30, | As of September 30, | As of Initial Measurement Date | ||||||||||||||||
2015 (1) | 2014 (1) | 2015 (2) (3) | 2015 (4) | |||||||||||||||||
Apidos III (5) | $ | 13,932 | $ | 3,551 | $ | — | $ | — | $ | — | ||||||||||
Apidos Cinco | $ | 5,268 | $ | 9,757 | $ | 4,463 | $ | 21,450 | $ | 17,774 | ||||||||||
RREF 2006-1 | $ | 2,623 | $ | 10,172 | $ | 3,471 | $ | 91,865 | $ | 24,941 | ||||||||||
RREF 2007-1 | $ | 3,641 | $ | 7,630 | $ | 3,169 | $ | 66,280 | $ | 26,032 | ||||||||||
RCC CRE Notes 2013 | $ | 7,464 | $ | 11,860 | N/A | N/A | N/A | |||||||||||||
RCC 2014-CRE2 (6) | $ | 11,831 | $ | 5,463 | N/A | $ | 20,663 | $ | 20,663 | |||||||||||
RCC 2015-CRE3 (7) | $ | 6,202 | N/A | N/A | $ | 20,313 | $ | 20,313 | ||||||||||||
RCC 2015-CRE4 (8) | $ | 382 | N/A | N/A | $ | 9,397 | $ | 9,397 | ||||||||||||
Moselle CLO S.A. (9) | $ | 29,099 | $ | 2,891 | N/A | N/A | N/A |
(1) | Distributions on retained equity interests in securitizations (comprised of note investments and preference share ownership) and principal paydowns on notes owned; RREF 2006-1 includes $0 and $4.2 million of principal paydowns during the nine months ended September 30, 2015 and the year ended December 31, 2014, 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 securitization notes senior to the Company's preference shares. |
(4) | Overcollateralization cushion represents the amount by which the collateral held by the securitization issuer exceeds the maximum amount required. |
(5) | Apidos III was liquidated on June 12, 2015 and substantially all of its assets were sold. The Company received a return of principal of $12.8 million through September 30, 2015. |
(6) | Resource Capital Corp. 2014-CRE2 has no reinvestment period; however, principal repayments, for a period ending in July 2016, may be designated to purchase loans held outside of the securitization that represent the funded commitments of existing collateral in the securitization that were not funded as of the date the securitization was closed. Additionally, the indenture contains no interest coverage test provisions. |
(7) | Resource Capital Corp. 2015-CRE3 closed on February 24, 2015; the first distribution was in March 2015. There is no reinvestment period; however, principal repayments, for a period ending in February 2017, may be designated to purchase loans held outside of the securitization that represent the funded commitments of existing collateral in the securitization that were not funded as of the date the securitization was closed. Additionally, the indenture contains no interest coverage test provisions. |
(8) | Resource Capital Corp. 2015-CRE4 closed on August 18, 2015; the first distribution was in September 2015. There is no reinvestment period; however, principal repayments, for a period ending in September 2017, may be designated to purchase loans held outside of the securitization that represent the funded commitments of existing collateral in the securitization that were not funded as of the date the securitization was closed. Additionally, the indenture contains no interest coverage test provisions. |
(9) | Moselle CLO S.A. was acquired on February 24, 2014 and the reinvestment period for this securitization expired prior to the acquisition. In the fourth quarter of 2014 the Company began to liquidate Moselle CLO S.A. and, by January 2015, all of the assets were sold. |
September 30, 2015 | December 31, 2014 | |||||||
Allowance for loan losses: | ||||||||
Specific allowance: | ||||||||
Commercial real estate loans | $ | 40,274 | $ | — | ||||
Bank loans | 345 | 570 | ||||||
Middle market loans | 4,086 | — | ||||||
Total specific allowance | 44,705 | 570 | ||||||
General allowance: | ||||||||
Commercial real estate loans | 1,840 | 4,043 | ||||||
Bank loans | 739 | — | ||||||
Total general allowance | 2,579 | 4,043 | ||||||
Total allowance for loans | $ | 47,284 | $ | 4,613 | ||||
Allowance as a percentage of total loans | 2.2 | % | 0.2 | % | ||||
Loans held for sale: (1) | ||||||||
Bank loans | $ | 2,994 | $ | 282 | ||||
Residential mortgage loans | 113,007 | 113,393 | ||||||
Total loans held for sale | $ | 116,001 | $ | 113,675 |
(1) | Loans held for sale are presented at the lower of cost or fair value. |
Security type: | ||
Whole loans | 98.6 | % |
B Notes | 1.0 | % |
Mezzanine loans | 0.4 | % |
Total | 100.0 | % |
Collateral type: | ||
Multifamily | 38.0 | % |
Office | 19.5 | % |
Retail | 13.8 | % |
Hotel | 12.8 | % |
Student Housing | 8.9 | % |
Mixed Use | 3.4 | % |
Other | 3.6 | % |
Total | 100.0 | % |
Collateral location: | ||
Texas | 30.4 | % |
Southern California | 15.8 | % |
Northern California | 7.5 | % |
Arizona | 5.9 | % |
Florida | 5.6 | % |
North Carolina | 5.0 | % |
Georgia | 4.0 | % |
Minnesota | 3.8 | % |
Nevada | 3.7 | % |
Pennsylvania | 2.1 | % |
Washington | 1.9 | % |
Utah | 1.6 | % |
Other | 12.7 | % |
Total | 100.0 | % |
Industry type: | ||
Automobile | 13.2 | % |
Diversified/Conglomerate Service | 12.5 | % |
Healthcare, Education and Childcare | 9.6 | % |
Retail Stores | 9.3 | % |
Chemicals, Plastics and Rubber | 7.2 | % |
Hotels, Motels, Inns and Gaming | 6.5 | % |
Electronics | 5.7 | % |
Broadcasting and Entertainment | 4.2 | % |
Finance | 3.9 | % |
Personal Transportation | 3.8 | % |
Leisure, Amusement, Motion Pictures, Entertainment | 2.9 | % |
Printing and Publishing | 2.6 | % |
Personal, Food and Miscellaneous services | 2.6 | % |
Telecommunications | 2.5 | % |
Aerospace and Defense | 2.3 | % |
Containers, Packaging and Glass | 2.1 | % |
Utilities | 2.0 | % |
Other | 7.1 | % |
Total | 100.0 | % |
Industry type: | ||
Diversified/Conglomerate Service | 13.0 | % |
Personal, Food, and Miscellaneous Services | 13.0 | % |
Hotels, Motels, Inns, and Gaming | 9.9 | % |
Telecommunications | 8.5 | % |
Structure Finance Securities | 8.0 | % |
Healthcare, Education, and Childcare | 7.4 | % |
Finance | 6.9 | % |
Leisure, Amusement, Motion Pictures, Entertainment | 5.6 | % |
Personal Transportation | 4.7 | % |
Buildings and Real Estate | 4.3 | % |
Broadcasting and Entertainment | 3.8 | % |
Beverage, Food and Tobacco | 3.6 | % |
Diversified/Conglomerate Manufacturing | 3.0 | % |
Home and Office Furnishings, Housewares, and Durable Consumer Products | 2.9 | % |
Oil and Gas | 1.7 | % |
Insurance | 2.0 | % |
Cargo Transport | 1.7 | % |
Total | 100.0 | % |