SOURCE: Resource Capital Corp.

May 06, 2008 19:04 ET

Resource Capital Corp. Reports Results for First Quarter March 31, 2008

NEW YORK, NY--(Marketwire - May 6, 2008) - Resource Capital Corp. (NYSE: RSO) ("RCC" or the "Company"), a real estate investment trust whose investment strategy focuses on commercial real estate loan assets and, to a lesser extent, commercial finance assets, reported results for the first quarter ended March 31, 2008.

Financial Summary

--  Adjusted net income, a non-GAAP measure excluding the effect of non-
    cash charges and non-operating capital transactions, of $10.4 million, or
    $0.42 per share-diluted for the quarter ended March 31, 2008 as compared to
    $9.4 million, or $0.38 per share-diluted for the quarter ended March 31,
    2007, an increase of $1.0 million (10%).
    
--  GAAP net income of $0.38 per share-diluted for the first quarter ended
    March 31, 2008, unchanged from the comparable period in the prior year.
    
--  REIT taxable income, a non-GAAP measure, of $12.1 million or $0.48 per
    share-diluted for the first quarter ended March 31, 2008 as compared to
    $9.7 million or $0.39 per share-diluted for the first quarter ended March
    31, 2007, an increase of $2.4 million (25%). RCC announced a dividend
    distribution of $0.41 per common share for the quarter ended March 31,
    2008, unchanged from the quarter ended December 31, 2007 and an increase of
    $0.02 per common share (5%) from the quarter ended March 31, 2007.
    
--  Economic book value, a non-GAAP measure, was $11.94 per common share
    as of March 31, 2008.
    
--  GAAP book value was $10.03 per common share as of March 31, 2008.
    
--  Paydowns on RCC's bank loan portfolio were $24.4 million for the first
    quarter ended March 31, 2008.  Payoffs on RCC's commercial real estate loan
    portfolio, which included payoffs in its CDOs, were $13.4 million for the
    first quarter ended March 31, 2008.
    

Jonathan Cohen, CEO and President of RCC, commented, "We continue to benefit from overall good asset quality and a low cost of funding due to our long term matched liabilities. We are actively managing our portfolios to make certain that credit remains strong and that we are maximizing our ability to reinvest into this marketplace where we do indeed see value."

The following schedules of reconciliations as of March 31, 2008 are included in 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; and
--  Schedule III - Reconciliation of GAAP Stockholders' Equity to Economic
    Book Value.
    

Additional financial results for the first quarter ended March 31, 2008 and recent developments include:

General

--  RCC's net interest income increased by $614,000, or 5%, to $13.8
    million for the first quarter ended March 31, 2008, as compared to $13.2
    million for the same period in 2007.
    

Commercial Real Estate

--  RCC produced new commercial real estate ("CRE") loans, on a gross
    basis, of $35.6 million during the first quarter ended March 31, 2008.  The
    aggregate net portfolio of CRE loans grew by $177.1 million to $909.1
    million at March 31, 2008, from $732.0 million at March 31, 2007, not
    including future funding obligations of $30.2 million.
    

The following table summarizes RCC's CRE loan origination activities and future funding obligations, at par, for the three and 12 months ended March 31, 2008 (in millions, except percentages):

                                Three Months 12 Months  Floating  Weighted
                                    Ended      Ended    Weighted   Average
                                  March 31,  March 31,   Average    Fixed
                                    2008       2008     Spread(1)  Rate(1)
                                  ---------  ---------  --------  --------
Whole loans                       $    35.6  $   338.6      2.91%     7.81%
Whole loans, future funding
 obligations                              -       30.2       N/A       N/A
B notes                                   -          -      2.78%     7.58%
Mezzanine loans                           -       65.7      2.61%     8.17%
CMBS                                      -       62.9    N/A (2)     5.16%
                                  ---------  ---------
New loans production                   35.6      497.4
Payoffs                               (11.4)    (232.9)
Principal paydowns                     (2.2)     (16.5)
Whole loans, future funding
 obligations                              -      (30.2)
Sales of CMBS                         (10.0)     (10.0)
                                  ---------  ---------
Net - new loans                        12.0      207.8
Other                                   0.5       (6.0)
                                  ---------  ---------
New loans, net                    $    12.5  $   201.8
                                  =========  =========

(1) Reflects rates on our portfolio balance as of March 31, 2008.
(2) Weighted average floating rate coupon of 5.03% at March 31, 2008.

Commercial Finance

--  RCC's bank loan portfolio ended the first quarter with total
    investments of $949.0 million, at amortized cost, with a weighted-average
    spread of one-month and three-month LIBOR plus 2.27%.  All of RCC's bank
    loan portfolio is match-funded through three collateralized loan obligation
    ("CLO") issuances with a weighted-average cost of three-month LIBOR plus
    0.47%.
    
--  RCC's commercial finance subsidiary ended the first quarter with $94.5
    million, at cost, in direct financing leases and notes at a weighted-
    average rate of 9.67%.  RCC's leasing portfolio is match-funded through a
    secured term facility, which had a balance of $90.0 million as of March 31,
    2008 and a weighted-average interest rate of 6.74%.
    

Book Value

As of March 31, 2008, RCC’s GAAP book value per common was $10.03. Total stockholders’ equity was $253.3 million as of March 31, 2008 as compared to $271.6 million as of December 31, 2007. Total common shares outstanding were 25,264,793 as of March 31, 2008 as compared to 25,103,532 as of December 31, 2007.

As of March 31, 2008, RCC’s economic book value per common share outstanding, a non-GAAP measure, was $11.94. Economic book value is computed by adding back to GAAP book value any unrealized losses on the Company’s investments in CMBS for which it expects to recover full par value at maturity, and on derivatives (cash flow hedges) that are associated with fixed-rate loans which it intends to hold until maturity, in excess of its value at risk, and that have not been adjusted through stockholders’ equity for market fluctuations (see Footnote 1 of Schedule III). Economic book value per share is computed by dividing the economic book value by the number of shares outstanding at the end of the period.

Investment Portfolio

The table below summarizes the amortized cost and net carrying amount of the RCC's investment portfolio as of March 31, 2008, classified by interest rate type. The following table includes both (i) the amortized cost of RCC'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 RCC's investment portfolio and the related dollar price, which is computed by dividing the net carrying amount by par amount (in thousands, except percentages):


                                                        Net carrying
                                                        amount less
                  Amortized  Dollar Net carrying Dollar  amortized  Dollar
                    cost     price   amount (4)  price      cost    price
                 ----------- ------  ----------- -----  ----------  ------
March 31, 2008
Floating rate
CMBS-private
 placement       $    35,751  94.19% $    25,445 67.04% $  (10,306) -27.15%
Other ABS              5,665  94.42%         289  4.82%     (5,376) -89.60%
B notes (1)           33,558 100.07%      33,474 99.82%        (84)  -0.25%
Mezzanine loans
 (1)                 130,201 100.05%     129,876 99.80%       (325)  -0.25%
Whole loans (1)      464,697  99.47%     463,536 99.22%     (1,161)  -0.25%
Bank loans (2)       948,950  99.78%     831,166 87.40%   (117,784) -12.38%
                 -----------         -----------        ----------
  Total floating
   rate          $ 1,618,822  99.57% $ 1,483,786 91.26% $ (135,036)  -8.31%
                 ===========         ===========        ==========
   Fixed rate
CMBS - private
 placement       $    36,659  95.30% $    23,037 59.89% $  (13,622) -35.41%
B notes (1)           55,905 100.15%      55,765 99.90%       (140)  -0.25%
Mezzanine loans
 (1)                  81,217  94.65%      79,963 93.19%     (1,254)  -1.46%
Whole loans (1)       98,294  99.34%      98,048 99.09%       (246)  -0.25%
Equipment leases
 and notes (3)        94,545 100.00%      94,252 99.69%       (293)  -0.31%
                 -----------         -----------        ----------
  Total fixed
   rate          $   366,620  98.14% $   351,065 93.97% $  (15,555)  -4.17%
                 ===========         ===========        ==========
  Grand total    $ 1,985,442  99.30% $ 1,834,851 91.77% $ (150,591)  -7.53%
                 ===========         ===========        ==========


(1) Net carrying amount includes an allowance for loan losses of $3.2
    million at March 31, 2008, allocated as follows:  B notes ($0.2
    million), mezzanine loans ($1.6 million) and whole loans ($1.4
    million).
(2) Net carrying amount includes a $3.5 million allowance for loan losses
    at March 31, 2008.
(3) Net carrying amount includes a $293,000 allowance for lease losses at
    March 31, 2008.
(4) Bank loan portfolio is carried at amortized cost less allowance for
    loan loss.


Liquidity

At April 30, 2008, RCC's liquidity consists of three primary sources:

--  unrestricted cash and cash equivalents of $7.5 million and restricted
    cash of $8.9 million comprised of $5.5 million in margin call accounts and
    $3.4 million related to its leasing portfolio;
    
--  capital available for reinvestment in its five collateralized debt
    obligation ("CDO") entities of $56.0 million, which is made up of $34.4
    million of restricted cash and $21.6 million of availability to finance
    future funding commitments on commercial real estate loans;
    
--  financing available under existing borrowing facilities of $19.7
    million, comprised of $12.1 million of available cash from RCC's three year
    non-recourse secured financing facility and $7.6 million of unused capacity
    under its unsecured revolving credit facility.  RCC also has $85.8 million
    of unused capacity under a three-year non-recourse commercial real estate
    repurchase facility, which, however, requires approval of individual
    repurchase transactions by the repurchase counterparty.
    

Capital Allocation

As of March 31, 2008, RCC had allocated its equity capital among its targeted asset classes as follows: 74% in commercial real estate loans, 25% in commercial bank loans and 1% in direct financing leases and notes.

About Resource Capital Corp.

RCC is a diversified real estate finance company that qualifies as a real estate investment trust, or REIT, for federal income tax purposes. RCC's investment strategy focuses on commercial real estate-related assets, and, to a lesser extent, commercial finance assets. RCC invests in the following asset classes: commercial real estate-related assets such as whole loans, A-notes, B-notes, mezzanine loans and mortgage-related securities and commercial finance assets such as other asset-backed securities, bank loans, equipment leases and notes, trust preferred securities, debt tranches of collateralized debt obligations and private equity investments principally issued by financial institutions.

RCC 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 financial fund management, real estate, and commercial finance sectors.

For more information, please visit the RCC's website at www.resourcecapitalcorp.com or contact investor relations at pkamdar@resourceamerica.com

Safe Harbor Statement

Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. RCC'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 RCC's loans or on loans
    underlying its investments;
    
--  adverse market trends which may affect the value of real estate and
    other assets underlying RCC's investments;
    
--  increases in financing or administrative costs; and
    
--  general business and economic conditions that would impair the credit
    quality of borrowers and RCC'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 RCC 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.

RCC 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 RCC 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, RCC 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 RCC's consolidated balance sheets, consolidated statements of income and reconciliations of its estimated GAAP net income to adjusted net income, GAAP net income to estimated REIT taxable income and GAAP stockholders' equity to economic book value, supplemental statistical information regarding RCC's commercial real estate loan portfolio and supplemental statistical information regarding RCC's bank loan portfolio.

                   RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
              (in thousands, except share and per share data)


                                                   March 31,   December 31
                                                      2008         2007
                                                  -----------  -----------
                                                  (Unaudited)
ASSETS
  Cash and cash equivalents                       $     9,098  $     6,029
  Restricted cash                                      45,718      119,482
  Investment securities available-for-sale,
   pledged as collateral, at fair value                48,771       65,464
  Loans, pledged as collateral and net of
   allowances of $6.7 million and $5.9 million      1,806,117    1,766,639
  Direct financing leases and notes, pledged as
   collateral and net of allowance of $0.3
   million and $0.3 million and net of unearned
   income                                              94,252       95,030
  Investments in unconsolidated entities                1,548        1,805
  Interest receivable                                   9,554       11,965
  Principal paydown receivables                           189          836
  Other assets                                          4,492        4,898
                                                  -----------  -----------
    Total assets                                  $ 2,019,739  $ 2,072,148
                                                  ===========  ===========
LIABILITIES
  Borrowings                                      $ 1,723,066  $ 1,760,969
  Distribution payable                                 10,432       10,366
  Accrued interest expense                              5,050        7,209
  Derivatives, at fair value                           24,454       18,040
  Accounts payable and other liabilities                3,419        3,958
                                                  -----------  -----------
    Total liabilities                               1,766,421    1,800,542
                                                  -----------  -----------
STOCKHOLDERS' EQUITY
  Preferred stock, par value $0.001:  100,000,000
   shares authorized; no shares issued and
   outstanding                                              -            -
  Common stock, par value $0.001:  500,000,000
   shares authorized; 25,264,793 and 25,103,532
   shares issued and outstanding (including
   559,692 and 581,493 unvested restricted shares)         26           25
  Additional paid-in capital                          355,286      355,205
  Accumulated other comprehensive loss                (55,623)     (38,323)
  Distributions in excess of earnings                 (46,371)     (45,301)
                                                  -----------  -----------
    Total stockholders' equity                        253,318      271,606
                                                  -----------  -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY        $ 2,019,739  $ 2,072,148
                                                  ===========  ===========



                   RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF INCOME
               (in thousands, except share and per share data)
                                 (Unaudited)

                                                      Three Months Ended
                                                           March 31,
                                                   ------------------------
                                                      2008         2007
                                                   -----------  -----------
REVENUES
  Loans                                            $    32,439  $    30,281
  Securities                                             1,181        7,396
  Leases                                                 1,990        1,910
  Interest income - other                                1,373          423
                                                   -----------  -----------
    Interest income                                     36,983       40,010
  Interest expense                                      23,148       26,789
                                                   -----------  -----------
    Net interest income                                 13,835       13,221

OPERATING EXPENSES
  Management fee expense - related party                 1,738        2,032
  Equity compensation expense - related party               81          486
  Professional services                                    792          692
  Insurance expense                                        128          121
  General and administrative                               355          412
  Income tax expense                                        29          145
                                                   -----------  -----------
    Total expenses                                       3,123        3,888
                                                   -----------  -----------

NET OPERATING INCOME                                    10,712        9,333
                                                   -----------  -----------

OTHER (EXPENSE) REVENUES
  Net unrealized/realized (losses) gains on sales
   of investments                                       (2,346)          70
  Other income                                              33           36
  Provision for loan and lease loss                       (786)           -
  Gain on the extinguishment of debt                     1,750            -
                                                   -----------  -----------
    Total other (expenses) revenues                     (1,349)         106
                                                   -----------  -----------

NET INCOME                                         $     9,363  $     9,439
                                                   ===========  ===========

NET INCOME PER SHARE - BASIC                       $      0.38  $      0.39
                                                   ===========  ===========

NET INCOME PER SHARE - DILUTED                     $      0.38  $      0.38
                                                   ===========  ===========

WEIGHTED AVERAGE NUMBER OF SHARES
 OUTSTANDING - BASIC                                24,612,724   24,433,417
                                                   ===========  ===========

WEIGHTED AVERAGE NUMBER OF SHARES
 OUTSTANDING - DILUTED                              24,883,444   24,837,709
                                                   ===========  ===========

DIVIDENDS DECLARED PER SHARE                       $      0.41  $      0.39
                                                   ===========  ===========



SCHEDULE I

                   RESOURCE CAPITAL CORP. AND SUBSIDIARIES
          RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME (1)
                    (in thousands, except per share data)
                                 (Unaudited)

                                                         Three Months Ended
                                                              March 31,
                                                         ------------------
                                                           2008      2007
                                                         --------  --------
Net income - GAAP                                        $  9,363  $  9,439
Add:
  Provision for loan losses (2)                               786         -
  Capital losses on the sale of available for sale
   securities                                               2,000         -
  Gain on the extinguishment of debt                       (1,750)        -
                                                         --------  --------
Adjusted net income, excluding non-cash charges and
 non-operating capital transactions                      $ 10,399  $  9,439
                                                         ========  ========
Adjusted net income per share - diluted, excluding
 non-cash charges and non-operating capital
 transactions                                            $   0.42  $   0.38
                                                         ========  ========

(1) During 2007, RCC began evaluating its performance based on several
    performance measures, including adjusted net income in addition to net
    income. Adjusted net income represents net income available to common
    shares, computed in accordance with GAAP, before provision for loan and
    lease losses, gain on the extinguishment of debt and non-operating
    capital items.  These items are recorded in accordance with GAAP and
    are typically non-cash or non-operating items that do not impact RCC's
    operating performance or ability to pay a dividend.

    Management views adjusted net income as a useful and appropriate
    supplement to GAAP net income (loss) because it helps us evaluate RCC's
    performance without the effects of certain GAAP adjustments that may
    not have a direct financial impact on RCC's current operating
    performance and dividend paying ability. Management uses adjusted net
    income to evaluate the performance of RCC's investment portfolios,
    ability to manage its expenses and dividend paying ability before the
    impact of non-cash adjustments and non-operating capital gain or loss
    recorded in accordance with GAAP.  RCC believes this is a useful
    performance measure for investors to evaluate these aspects of RCC's
    business as well.  The most significant adjustments RCC excludes in
    determining adjusted earnings are its provision for loan and lease
    losses and at March 31, 2007, gain on the extinguishment of debt and
    losses on the sale of available-for-sale securities.  Management
    excludes all such items from its calculation of adjusted net income
    because these items are not charges or losses which would impact RCC's
    current operating performance.  However, by excluding these significant
    items, adjusted net income reduces an investor's understanding of RCC's
    operating performance by excluding management's expectation of possible
    gains or losses from RCC's investment portfolio.

    Adjusted net income, as a non-GAAP financial measurement, does not
    purport to be an alternative to GAAP net income (loss), or a measure of
    operating performance or cash flows from operating activities
    determined in accordance with GAAP as a measure of liquidity.  Instead,
    adjusted net income should be reviewed in connection with net income
    (loss) and cash flows from operating, investing and financing
    activities in RCC's consolidated financial statements to help analyze
    management's expectation of potential future losses from RCC's
    investment portfolio and other non-cash or capital matters that impact
    its financial results.  Adjusted net income and other supplemental
    performance measures are defined in various ways throughout the REIT
    industry.  Investors should consider these differences when comparing
    RCC's adjusted net income to these other REITs.

(2) Non-cash charges for loan losses.



SCHEDULE II

                   RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                      RECONCILIATION OF GAAP NET INCOME
                     TO ESTIMATED REIT TAXABLE INCOME (1)
                                 (Unaudited)

RCC 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 net income to estimated REIT taxable income for
the periods presented (in thousands, except per share data):


                                                         Three Months Ended
                                                              March 31,
                                                         ------------------
                                                           2008      2007
                                                         --------  --------
Net income - GAAP                                        $  9,363  $  9,439
Adjustments:
  Share-based compensation to related parties                (147)        5
  Incentive management fee expense to
   related parties paid in shares                               -       186
  Capital loss carryover (utilization)/losses from the
   sale of securities                                       2,000         -
  Provisions for loan and lease losses unrealized              56         -
  Net book to tax adjustments for the Company's
   taxable foreign REIT subsidiaries                          775         -
  Other net book to tax adjustments                             8        41
                                                         --------  --------
Estimated REIT taxable income                            $ 12,055  $  9,671
                                                         ========  ========

Amounts per share - diluted                              $   0.48  $   0.39
                                                         ========  ========

(1) RCC believes that a presentation of estimated REIT taxable income
    provides useful information to investors regarding its financial
    condition and results of operations as this measurement is used to
    determine the amount of dividends that RCC is required to declare to
    its stockholders in order to maintain its status as a REIT for federal
    income tax purposes.  Since RCC, as a REIT, expects to make
    distributions based on taxable income, RCC expects that its
    distributions may at times be more or less than its reported income.
    Total taxable income is the aggregate amount of taxable income
    generated by RCC and by its domestic and foreign taxable REIT
    subsidiaries.  Estimated REIT taxable income excludes the undistributed
    taxable income of RCC's domestic taxable REIT subsidiary, if any such
    income exists, which is not included in REIT taxable income until
    distributed to RCC.  There is no requirement that RCC's domestic
    taxable REIT subsidiary distribute its income to RCC.  Estimated REIT
    taxable income, however, includes the taxable income of RCC's foreign
    taxable REIT subsidiaries because RCC generally will be required to
    recognize and report their taxable income on a current basis.  Because
    not all companies use identical calculations, this presentation of
    estimated REIT taxable income may not be comparable to other
    similarly-titled measures of other companies.



SCHEDULE III

            RESOURCE CAPITAL CORP. AND SUBSIDIARIES
 RECONCILIATION OF GAAP STOCKHOLDERS' EQUITY TO ECONOMIC BOOK VALUE (1) (2)
                 (in thousands, except per share data)
                                (Unaudited)

                                                                As of
                                                            March 31, 2008
                                                           ----------------
Stockholders' equity - GAAP                                $        253,318
Add:
  Unrealized losses - CMBS portfolio                                 23,928
  Unrealized losses recognized in excess of value at risk
   - interest rate swaps                                             24,454
                                                           ----------------
Economic book value                                        $        301,700
                                                           ================
Shares outstanding as of March 31, 2008                              25,265
                                                           ----------------
Economic book value per share                              $          11.94
                                                           ================

(1) Management views economic book value, a non-GAAP measure, as a useful
    and appropriate supplement to GAAP stockholders' equity and book value
    per share.  The measure serves as an additional measure of RCC's value
    because it facilitates evaluation of us without the effects of
    unrealized losses on investments for which we expect to recover full
    par value at maturity and on interest rate swaps, which we intend to
    hold to maturity, in excess of RCC's value at risk.  Unrealized losses
    recognized in RCC's financial statements, prepared in accordance with
    GAAP, that are in excess of RCC's maximum value at risk are added back
    to stockholders' equity in arriving at economic book value.  Economic
    book value should be reviewed in connection with GAAP stockholders'
    equity as set forth in RCC's consolidated balance sheets, to help
    analyze RCC's value to investors. Economic book value is defined in
    various ways throughout the REIT industry.  Investors should consider
    these differences when comparing RCC's economic book value to that of
    other REITs.

(2) RCC adds back unrealized losses on interest rate swaps
    (cash flow hedges) that are associated with fixed-rate loans that have
    not been adjusted through stockholders' equity for market fluctuations.



                   RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                          SUPPLEMENTAL INFORMATION
                               (in thousands)
                                 (Unaudited)

Loans and Leasing Investment Statistics

The following table presents information on RCC's non-performing loans and
leases and related allowances as of March 31, 2008 and 2007
(based on par value):

                                                          As of March 31,
                                                        ------------------
                                                          2008      2007
                                                        --------  --------
Non-performing loans and leases                         $ 16,827  $      -
Non-performing loans and leases as a percentage of
 total loans and leases                                      0.9%        -%
Allowance for loan and lease losses                     $  6,997  $      -
Allowance for loan and lease losses as a percentage of
 total loans and leases                                      0.4%        -%



                   RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                 SUPPLEMENTAL INFORMATION, A NON-GAAP MEASURE
                               (in thousands)
                                 (Unaudited)

The following table presents commercial real estate loan portfolio
statistics as of March 31, 2008 (based on par value):

Security type
  Whole loans                                                         65.0%
  Mezzanine loans                                                     24.8%
  B Notes                                                             10.2%
                                                                     -----
    Total                                                            100.0%
                                                                     =====

Collateral type
  Multifamily                                                         30.5%
  Hotel                                                               24.7%
  Office                                                              23.2%
  Retail                                                              16.2%
  Condo                                                                1.6%
  Flex                                                                 0.8%
  Self-storage                                                         0.7%
  Other                                                                2.3%
                                                                     -----
    Total                                                            100.0%
                                                                     =====

Collateral location
  Northern California                                                 15.4%
  Southern California                                                 25.3%
  New York                                                            10.6%
  Arizona                                                              8.1%
  Tennessee                                                            3.7%
  Florida                                                              4.4%
  Texas                                                                4.6%
  Colorado                                                             3.3%
  Washington                                                           3.4%
  Other states < $25M                                                 21.2%
                                                                     -----
    Total                                                            100.0%
                                                                     =====



                 RESOURCE CAPITAL CORP. AND SUBSIDIARIES
               SUPPLEMENTAL INFORMATION, A NON-GAAP MEASURE
                              (in thousands)
                               (Unaudited)


The following table presents bank loan portfolio statistics by industry as
of March 31, 2008 (based on par value):

Industry type
  Healthcare, education and childcare                                 11.3%
  Diversified/conglomerate service                                     8.8%
  Printing and publishing                                              5.9%
  Chemicals, plastics and rubber                                       5.8%
  Broadcasting and entertainment                                       5.5%
  Retail stores                                                        5.1%
  Leasure, amusement, motion pictures, entertainment                   4.2%
  Hotels, motels, inns and gaming                                      4.2%
  Diversified/conglomerate manufacturing                               3.9%
  Utilities                                                            3.8%
  Personal, food and miscellaneous services                            3.5%
  Oil and gas                                                          3.5%
  Other                                                               34.5%
                                                                     -----
    Total                                                            100.0%
                                                                     =====

The following chart describes equipment leases and notes by industry as of
March 31, 2008 (based on par value):

Industry type
Services                                                              53.5%
Transportation,communications, electric, gas and sanitary services    10.2%
Retail trade                                                           8.1%
Finance, insurance and real estate                                     7.2%
Manufacturing                                                          5.9%
Construction                                                           4.8%
Agriculture, forestry and fishing                                      4.6%
Wholesale trade                                                        3.2%
Other                                                                  2.5%
                                                                     -----
    Total                                                            100.0%
                                                                     =====

Contact Information

  • CONTACT:
    DAVID J. BRYANT
    CHIEF FINANCIAL OFFICER
    RESOURCE CAPITAL CORP.
    1845 WALNUT STREET
    10TH FLOOR
    PHILADELPHIA, PA 19103
    215/546-5005
    215/546-5388 (fax)