Resource Capital Corp. Reports Results for Three and Six Months Ended June 30, 2011
(firmenpresse) - NEW YORK, NY -- (Marketwire) -- 08/01/11 --
(NYSE: RSO) , 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, 2011.
Adjusted net income, a non-GAAP measure excluding the effect of non-cash charges and non-operating capital transactions, was $18.0 million, or $0.25 per share-diluted, and $33.7 million, or $0.51 per share-diluted for the three and six months ended June 30, 2011, respectively, as compared to $10.9 million, or $0.24 per share-diluted, and $21.1 million, or $0.51 per share-diluted, for the three and six months ended June 30, 2010, respectively, an increase of $7.1 million, or 65% and $12.7 million, or 60%, respectively. For a reconciliation of adjusted net income to GAAP net income, see Schedule I to this press release.
GAAP net income for the three and six months ended June 30, 2011 was $9.2 million, or $0.13 per share-diluted, and $22.4 million, or $0.34 per share-diluted, respectively, as compared to GAAP net income for the three and six months ended June 30, 2010 of $13.4 million, or $0.30 per share-diluted, and $14.8 million, or $0.36 per share-diluted, respectively, a decrease of $4.1 million, or 31%, and an increase of $7.6 million, or 51%, respectively.
Jonathan Cohen, CEO and President of Resource Capital Corp., commented, "I believe that this quarter saw the continuation of improving credit, good cash flow, new investments and an excellent pipeline of new opportunities. We are still focused on reducing the risk profile of our portfolio by selling legacy subordinate loans, originating newer higher yielding replacements, building the leasing joint venture, and buying distressed and opportunistic real estate equity investments. We look forward to continuing to grow our net interest income aggressively over the remaining six months."
Commercial Real Estate
RSO received repayments on CRE loans of $19.4 million and sold five CRE loans for proceeds of $56.7 million for the six months ended June 30, 2011.
RSO's CRE loan portfolio is now comprised of approximately 80% senior whole loans as of June 30, 2011, as compared to 63% a year ago (or at the height of the crisis).
RSO originated $63.9 million of whole loans in the three months ended June 30, 2011 with a weighted average yield of 7.8% up substantially from $19.8 million with a weighted average yield of 6.5% originated during the three months ended March 31, 2011.
RSO has already committed over $47 million to new CRE whole loans slated to close in the third calendar quarter of 2011 from an on-going pipeline of new CRE loans of over $200.0 million.
RSO increased its opportunistic and distressed real estate investments with the acquisition of one real estate asset in the quarter ended June 30, 2011, and has acquired a second investment for $18.0 million in the quarter ended September 30, 2011. These acquisitions coupled with the conversion to equity of two commercial real estate loans during the quarter ended June 30, 2011 demonstrate RSO's commitment to opportunistic real estate acquisitions.
The following table summarizes RSO's CRE loan activities and fundings of previous commitments, at par, for the three, six and 12 months ended June 30, 2011 (in millions, except percentages):
CMBS Securities
During the six months ended June 30, 2011, RSO acquired $42.5 million par value of CMBS at a weighted average price of 100.2%. The majority of these purchases were financed by RSO's new Wells Fargo facility and are highly-rated bonds.
Commercial Finance - Syndicated Bank Loans
RSO's bank loan portfolio, including asset-backed securities ("ABS") held-to-maturity and certain loans held for sale, at the end of the second quarter was $907.1 million, at amortized cost, with a weighted-average spread of one-month and three-month LIBOR plus 3.02%. RSO's bank loan portfolio is predominately match-funded through three collateralized loan obligation ("CLO") issuances with a weighted-average cost of three-month LIBOR plus 0.47% (0.78% at June 30, 2011).
During the three and six months June 30, 2011, RSO bought bank loans through its three CLOs with a par value of $126.5 million at modest net discount of $1.1 million. These purchased loans had an aggregate weighted average annual yield of approximately 4.26%.
RSO, through its subsidiary Resource Capital Asset Management, earned $3.9 million of net fees from the date of acquisition through June 30, 2011.
As of June 30, 2011, RSO's book value per common share was $5.84, a decrease from $5.99 per common share at December 31, 2010. Total stockholders' equity was $433.4 million as of June 30, 2011 as compared to $348.3 million as of December 31, 2010. Total common shares outstanding were 74,230,500 as of June 30, 2011 as compared to 58,183,425 as of December 31, 2010.
The table below summarizes the amortized cost and net carrying amount of RSO's investment portfolio as of June 30, 2011, classified by interest rate and by asset type. The following table includes both (i) the amortized cost of RSO's investment portfolio and the related dollar price, which is computed by dividing amortized cost by par amount, and (ii) the net carrying amount of RSO's investment portfolio and the related dollar price, which is computed by dividing the net carrying amount by par amount (in thousands, except percentages):
At July 29, 2011, after disbursing the second quarter 2011 dividend, RSO's liquidity of $216.5 million consists of three primary sources:
unrestricted cash and cash equivalents of $27.8 million and restricted cash of $2.0 million in margin call accounts;
capital available for reinvestment in its five CDO entities of $176.7 million, of which $9.1 million is designated to finance future funding commitments on CRE loans; and
restricted cash available for investment in its newly-formed CLO warehouse line of $10.0 million.
As of June 30, 2011, RSO had allocated its invested equity capital among its targeted asset classes as follows: 66% in CRE investments, 29% in commercial finance and 5% in other investments.
The following schedules of reconciliations or supplemental information as of June 30, 2011 are included at the end of this release:
Schedule I - Reconciliation of GAAP Net Income to Adjusted Net Income.
Schedule II - Reconciliation of GAAP Net Income to Estimated REIT Taxable Income.
Schedule III - Summary of CDO and CLO Performance Statistics.
Supplemental Information regarding loan and leasing investment statistics, CRE loans and bank loans.
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, commercial mortgage-backed securities and investments in real estate joint ventures as well as commercial finance assets such as bank loans, lease receivables, other asset-backed securities, trust preferred securities, debt tranches of CDOs, structured note investments, and private equity investments principally issued by financial institutions.
RSO is externally managed by Resource Capital Manager, Inc., an indirect wholly-owned subsidiary of Resource America, Inc. (NASDAQ: REXI), a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the real estate, commercial finance and financial fund management sectors.
For more information, please visit RSO's website at or contact investor relations at .
Statements made in this release may include forward-looking statements, which involve substantial risks and uncertainties. RSO's actual results, performance or achievements could differ materially from those expressed or implied in this release. The risks and uncertainties associated with forward-looking statements contained in this release include those related to:
fluctuations in interest rates and related hedging activities;
capital markets conditions and the availability of financing;
defaults or bankruptcies by borrowers on RSO's loans or on loans underlying its investments;
adverse market trends which have affected and may continue to affect the value of real estate and other assets underlying RSO's investments;
increases in financing or administrative costs; and
general business and economic conditions that have impaired and may continue to impair the credit quality of borrowers and RSO's ability to originate loans.
For further information concerning these and other risks pertaining to the forward-looking statements contained in this release, and to the general risks to which RSO is subject, see Item 1A, "Risk Factors" included in its Annual Report on Form 10-K and in other of its public filings with the Securities and Exchange Commission.
RSO cautions you not to place undue reliance on any forward-looking statements contained in this release, which speak only as of the date of this release. All subsequent written and oral forward-looking statements attributable to RSO or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this release. Except to the extent required by applicable law or regulation, RSO undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this filing or to reflect the occurrence of unanticipated events.
The remainder of this release contains RSO's unaudited consolidated balance sheets, unaudited consolidated statements of income, reconciliation of GAAP net income to adjusted net income, a reconciliation of GAAP net income to estimated REIT taxable income and a summary of CDO and CLO performance statistics and supplemental information regarding RSO's CRE loan and bank loan portfolios.
RSO calculates estimated REIT taxable income, which is a non-GAAP financial measure, according to the requirements of the Internal Revenue Code. The following table reconciles GAAP net income to estimated REIT taxable income for the periods presented (in thousands, except per share data):
The following table sets forth distributions by RSO's CDOs and coverage test summaries for the periods presented:
In connection with RSO's ownership of certain notes held by RREF CDO 2006-1 and RREF CDO 2007-1, respectively, on June 21, 2011, the Company surrendered for cancellation $32.4 million and $30.9 million, respectively, of CDO notes which previously eliminated in consolidation. The surrendered notes were cancelled by the trustee under the applicable indentures, and the obligations due under the surrendered notes were deemed extinguished. The effect of these cancellations improves each CDO's ability to comply with its over-collateralization and interest coverage tests and strengthens RSO's long term interest in these structured vehicles.
The following table presents information on RSO's impaired loans and lease receivables and related allowances for the periods indicated (based on amortized cost):
The following table presents commercial real estate loan portfolio statistics as of June 30, 2011 (based on par value):
The following table presents bank loan portfolio statistics by industry as of June 30, 2011 (based on par value):
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 01.08.2011 - 18:30 Uhr
Sprache: Deutsch
News-ID 1026380
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
NEW YORK, NY
Phone:
Kategorie:
Commercial & Investment Banking
Anmerkungen:
Diese Pressemitteilung wurde bisher 117 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Resource Capital Corp. Reports Results for Three and Six Months Ended June 30, 2011
"
steht unter der journalistisch-redaktionellen Verantwortung von
Resource Capital Corp. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
