SOURCE: Resource America, Inc.

September 26, 2007 17:15 ET

Resource America Announces Purchase of Distressed Mortgage Portfolio for Institutional Investor

PHILADELPHIA, PA--(Marketwire - September 26, 2007) - Resource America, Inc. (NASDAQ: REXI) (the "Company"), a specialized asset management company with over $16 billion of assets under management, announced today that its subsidiary, Resource Real Estate, Inc., has acquired a portfolio of non-performing loans from the United States Department of Housing and Urban Development on behalf of a newly established joint venture with Värde Partners, a Minnesota-based alternative investment manager. The portfolio consists of 11 loans with an aggregate principal balance of approximately $75 million, each secured by a first mortgage on a multifamily property. Resource Real Estate will asset manage the portfolio and will receive management and incentive compensation based upon the portfolio's success. With the acquisition of this portfolio, Resource Real Estate will manage real estate property and loan assets valued at approximately $1.5 billion dollars, including multi-family property and loan assets valued at approximately $850 million located in 21 states, representing over 15,000 multifamily units.

Jonathan Cohen, President and Chief Executive Officer of the Company, said, "For almost twenty years, through various real estate markets and cycles, Resource America has successfully and profitably acquired and resolved distressed real estate loans. At this time when there are significant liquidity challenges in the financing markets throughout the United States and internationally, this portfolio acquisition is one excellent opportunity to utilize our expertise in the current environment. We intend to pursue additional opportunities across all of our platforms to take advantage of current market dislocations and our skill and experience in realizing value from such dislocations. We are also delighted to be partnering with Värde, which has a philosophy and talents that are highly complementary with ours."

Resource America, Inc. is 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 financial fund management, real estate and commercial finance industries. For more information, please visit our website at www.resourceamerica.com or contact Investor Relations at pschreiber@resourceamerica.com.

Certain matters discussed within this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Resource America, Inc. believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in the Company's reports filed with the SEC, including quarterly reports on Form 10Q, reports on Form 8-K and annual reports on Form 10-K.

Contact Information

  • Contact:
    Pamela Schreiber
    Investor Relations
    Resource America, Inc.
    1845 Walnut Street, 10th Floor
    Philadelphia, PA 19103
    (215) 546-5005
    (215) 546-5388 (facsimile)
    Email Contact