Resource Capital Corp. Reports Results for Three Months Ended March 31, 2014

NEW YORK, NY--(Marketwired - May 6, 2014) - Resource Capital Corp. (NYSE: RSO)

Highlights

• Adjusted Funds from Operations ("AFFO") of $0.20 per share-diluted (see Schedule I).
  
  
• Invested over $300.0 million in new assets including over $161.0 million in commercial real estate loans and securities during the twelve months ended March 31, 2014.
  
  
• GAAP net income allocable to common shares of $0.12 per share-diluted.
   
• Common stock cash dividend of $0.20 per share.
  
  

Resource Capital Corp. (NYSE: RSO) ("RSO" or the "Company"), a real estate investment trust, or REIT, whose investment strategy focuses on commercial real estate assets, commercial mortgage-backed securities ("CMBS"), commercial finance assets and other investments, reported results for the three months ended March 31, 2014.

• AFFO for the three months ended March 31, 2014 was $25.0 million, or $0.20 per share-diluted as compared to $21.0 million, or $0.20 per share-diluted for the three months ended March 31, 2013. A reconciliation of GAAP net income to AFFO is set forth in Schedule I of this release.
  
  
• GAAP net income allocable to common shares for the three months ended March 31, 2014 was $15.1 million, or $0.12 per share-diluted, as compared to $11.5 million, or $0.11 per share-diluted, for the three months ended March 31, 2013. 

Jonathan Cohen, CEO and President of Resource Capital Corp., commented, "We are pleased with our investment program during the 1st quarter. We are seeing real momentum in achieving our goals of increased commercial real estate loan originations, good credit, and adjusted funds from operations in line or better than our dividend."

Additional highlights:

Commercial Real Estate

• CRE loan portfolio is comprised of approximately 91% senior whole loans as of March 31, 2014, as compared to 85% a year ago.
  
  
• RSO closed $374.1 million of new whole loans in the last 12 months with a weighted average yield of 6.31%, including origination fees. In addition, RSO funded $20.4 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 the twelve months ended March 31, 2014 (in millions, except percentages):

		Three Months Ended March 31,  2014				12 Months Ended March 31,  2014				Floating Weighted Average Spread (1) (2)			Weighted Average Fixed Rate
New whole loans production (3)		$	111.6			$	394.5			4.70	%		--	%
Payoffs (4)			(22.2	)			(81.5	)
Sales			--				(29.9	)
Principal paydowns			(1.0	)			(16.7	)
Loans, net		$	88.4			$	266.4

(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 March 31, 2014. Of these loans, $107.9 million have LIBOR floors with a weighted average floor of 0.80%.
(2)	Reflects rates on RSO's portfolio balance as of March 31, 2014.
(3)	Whole loan production includes the funding of previous commitments of $3.7 million for the three months and $20.4 million for the twelve months ended March 31, 2014, respectively.
(4)	CRE loan payoffs and extensions resulted in $148,000 in extension and exit fees during the three months ended March 31, 2014

CMBS

• During the three months ended March 31, 2014, RSO acquired $36.8 million, par value, of CMBS which were partially financed by 30-day repurchase contracts with a repurchase value of $25.0 million. In addition, RSO acquired $4.1 million, par value, of CMBS, which were financed by RSO's Wells Fargo repurchase facility and were AAA rated by at least one rating agency. 

Commercial Finance - Syndicated Bank Loans

• RSO's bank loan portfolio, including asset-backed securities ("ABS"), corporate bonds and certain loans held for sale, at the end of the first quarter of 2014 was $726.0 million, at amortized cost, with a weighted-average spread of one-month and three-month LIBOR plus 3.43% at March 31, 2014. RSO's bank loan portfolio was nearly 100% match-funded through three CLOs issuances.
• RSO, through its subsidiary Resource Capital Asset Management, earned $1.7 million of net fees during the three months ended March 31, 2014.

Middle Market Loans

•  RSO's middle market lending platform has made $58.2 million of loan commitments since January 1, 2014 and funded $41.2 million of those commitments.

Investment Portfolio

The table below summarizes the amortized cost and net carrying amount of RSO's investment portfolio as of March 31, 2014, 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
March 31, 2014
Floating rate
RMBS				$	1,909		20.68	%		$	438		4.74	%		$	(1,471	)		(15.93	)%
CMBS-private placement					27,138		91.99	%			15,508		52.57	%			(11,630	)		(39.42	)%
Structured notes - trading					8,057		34.49	%			9,549		40.88	%			1,492			6.39	%
Structured notes - available-for-sale					12,841		100.00	%			12,841		100.00	%			--			--	%
Mezzanine loans					12,467		99.06	%			12,365		98.25	%			(102	)		(0.81	)%
Whole loans (1)					833,853		99.56	%			828,664		98.94	%			(5,189	)		(0.62	)%
Bank loans (2)					687,154		99.56	%			686,413		99.45	%			(741	)		(0.11	)%
Loans held for sale (3)					272		22.08	%			272		22.08	%			--			--	%
ABS Securities					35,648		94.25	%			36,839		97.40	%			1,191			3.51	%
Corporate Bonds					2,603		96.23	%			2,580		95.38	%			(23	)		(0.85	)%
	Total floating rate				1,621,942		97.88	%			1,605,469		96.89	%			(16,473	)		(0.99	)%
Fixed rate
CMBS-private placement					159,565		80.24	%			165,783		83.36	%			6,218			3.12	%
CMBS-linked transactions					38,214		105.59	%			34,829		96.24	%			(3,385	)		(9.40	)%
B notes (1)					16,168		99.54	%			16,036		98.73	%			(132	)		(0.81	)%
Mezzanine loans (1)					51,832		100.05	%			51,410		99.24	%			(422	)		(0.81	)%
Residential mortgage loans					1,843		100.00	%			1,843		100.00	%			--			--	%
Loans held for sale (3)					15,117		100.00	%			15,117		100.00	%			--			--	%
Loans receivable-related party					6,498		100.00	%			6,498		100.00	%			--			--	%
	Total fixed rate				289,237		88.57	%			291,516		89.27	%			2,279			0.70	%
Other (non-interest bearing)
Investment in real estate					19,971		100.00	%			19,971		100.00	%			--			--	%
Property available-for-sale					35,256		100.00	%			35,256		100.00	%			--			--	%
Investment in unconsolidated entities					62,053		100.00	%			62,053		100.00	%			--			--	%
	Total other				117,280		100.00	%			117,280		100.00	%			--			--	%
		Grand total		$	2,028,459		96.55	%		$	2,014,265		95.88	%		$	(14,194	)		(0.68	)%

(1)	Net carrying amount includes an allowance for loan losses of $5.8 million at March 31, 2014, allocated as follows: B notes $132,000, mezzanine loans $524,000 and whole loans $5.2 million.
(2)	Net carrying amount includes allowance for loan losses of $741,000 at March 31, 2014.
(3)	Loans held for sale are carried at the lower of cost or fair market value. Amortized cost is equal to fair value.

Liquidity

At April 30, 2014, after paying RSO's first quarter 2014 common and preferred stock dividends, RSO's liquidity is derived from three primary sources:

• unrestricted cash and cash equivalents of $156.1 million, restricted cash of $500,000 in margin call accounts and $2.1 million in the form of real estate escrows, reserves and deposits;
  
  
• capital available for reinvestment in its securitizations of $40.3 million, of which $4.9 million is designated to finance future funding commitments on CRE loans; and
  
  
• loan principal repayments that will pay down outstanding CLO notes of $9.3 million and $4.7 million in interest collections.

In addition, RSO has funds available through three term financing facilities to finance the origination of CRE loans of $130.6 million and $194.3 million, respectively, and to finance the purchase of CMBS of $61.1 million.

Capital Allocation

As of March 31, 2014, RSO had allocated its invested equity capital among its targeted asset classes as follows: 73% in CRE assets, 26% in commercial finance assets and 1% in other investments.

Supplemental Information

The following schedules of reconciliations or supplemental information as of March 31, 2014 are included at the end of this release:

• Schedule I - Reconciliation of GAAP Net Income to Funds from Operations ("FFO") and AFFO.
• Schedule II - Book Value Allocable to Common Shareholders Rollforward.
• Schedule III - Securitizations - Distributions and Coverage Test Summary.
• Supplemental Information regarding loan investment statistics, CRE loans and bank loans.

About Resource Capital Corp.

RSO is a real estate investment trust that is primarily focused on originating, holding and managing commercial mortgage loans and other commercial real estate-related debt and equity investments. RSO also makes other commercial finance investments.

RSO is externally managed by Resource Capital Manager, Inc., an indirect wholly-owned subsidiary of Resource America, Inc. (NASDAQ: REXI), an asset management company that specializes in real estate and credit investments.

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, Book value allocable to common shareholders rollforward, 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)
				March 31,  2014				December 31,  2013
				(unaudited)
ASSETS (1)
	Cash and cash equivalents			$	166,686			$	262,270
	Restricted cash				115,952				63,309
	Investment securities, trading				9,987				11,558
	Investment securities available-for-sale, pledged as collateral, at fair value				159,051				162,608
	Investment securities available-for-sale, at fair value				74,500				52,598
	Linked transactions, net at fair value				34,829				30,066
	Loans held for sale				15,389				21,916
	Property available-for-sale				35,256				25,346
	Investment in real estate				19,971				29,778
	Loans, pledged as collateral and net of allowances of $6.6 million and $13.8 million				1,596,731				1,369,526
	Loans receivable-related party				6,498				6,966
	Investments in unconsolidated entities				62,053				69,069
	Derivatives, at fair value				556				--
	Interest receivable				10,503				8,965
	Deferred tax asset				5,048				5,212
	Principal paydown receivable				1				6,821
	Intangible assets				11,283				11,822
	Prepaid expenses				4,155				2,871
	Other assets				13,459				10,726
		Total assets		$	2,341,908			$	2,151,427
LIABILITIES (2)
	Borrowings			$	1,502,089			$	1,319,810
	Distribution payable				27,601				27,023
	Accrued interest expense				3,848				1,693
	Derivatives, at fair value				10,242				10,586
	Accrued tax liability				387				1,629
	Deferred tax liability				4,036				4,112
	Accounts payable and other liabilities				13,511				12,650
		Total liabilities			1,561,714				1,377,503
STOCKHOLDERS' EQUITY
	Preferred stock, par value $0.001: 100,000,000 shares authorized 8.50% Series A cumulative redeemable preferred shares, liquidation preference $25.00per share, 872,039 and 680,952 shares issued and outstanding				1				1
	Preferred stock, par value $0.001: 100,000,000 shares authorized 8.25% Series B cumulative redeemable preferred shares, liquidation preference $25.00 per share 3,988,977 and 3,485,078 shares issued and outstanding				4				3
	Common stock, par value $0.001: 500,000,000 shares authorized; 128,577,980 and 127,918,927 shares issued and outstanding (including 2,670,189 and 3,112,595 unvested restricted shares)				129				128
	Additional paid-in capital				1,059,805				1,042,480
	Accumulated other comprehensive loss				(14,071	)			(14,043	)
	Distributions in excess of earnings				(265,618	)			(254,645	)
		Total stockholders' equity			780,250				773,924
	Non-controlling interest				(56	)			--
		Total equity			780,194				773,924
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY				$	2,341,908			$	2,151,427

RESOURCE CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - (Continued)
(in thousands, except share and per share data)
			March 31,  2014			December 31,  2013
			(unaudited)
(1) Assets of consolidated VIEs included in the total assets:
	Restricted cash		$	113,362		$	61,372
	Investment securities available-for-sale, pledged as collateral, at fair value			116,429			105,846
	Loans held for sale			272			2,376
	Loans, pledged as collateral and net of allowances of $5.1 million and $8.8 million			1,305,377			1,219,569
	Interest receivable			6,626			5,627
	Prepaid expenses			163			247
	Principal paydown receivable			1			6,821
	Total assets of consolidated VIEs (a)		$	1,542,230		$	1,401,858
(2) Liabilities of consolidated VIEs included in the total liabilities:
	Borrowings		$	1,183,468		$	1,070,339
	Accrued interest expense			1,356			918
	Derivatives, at fair value			9,841			10,191
	Accounts payable and other liabilities			4,150			1,604
	Total liabilities of consolidated VIEs (b)		$	1,198,815		$	1,083,052

(a)	Assets of each of the consolidated variable interest entities ("VIE"s) may only be used to settle the obligations of each respective VIE.
(b)	The creditors of the Company's VIEs have no recourse to the general credit of the Company.

RESOURCE CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
					Three Months Ended
					March 31,
					2014				2013
REVENUES
	Interest income:
		Loans			$	20,229			$	27,812
		Securities				4,004				3,642
		Interest income − other				2,852				1,866
			Total interest income			27,085				33,320
	Interest expense					9,637				11,165
			Net interest income			17,448				22,155
	Rental income					5,152				6,174
	Dividend income					136				16
	Equity in net earnings (losses) of unconsolidated subsidiaries					2,014				(425	)
	Fee income					2,756				1,410
	Net realized gain on sales of investment securities available-for-sale and loans					3,680				391
	Net realized and unrealized (loss) gain on investment securities, trading					(1,560	)			1,116
	Unrealized gain (loss) and net interest income on linked transactions, net					2,305				(259	)
		Total revenues				31,931				30,578
OPERATING EXPENSES
	Management fees − related party					3,080				2,978
	Equity compensation − related party					1,667				3,591
	Rental operating expense					3,396				3,937
	General and administrative					8,105				3,481
	Depreciation and amortization					836				1,138
	Income tax expense					16				1,762
	Net impairment losses recognized in earnings					-				21
	(Benefit) provision for loan losses					(3,960	)			1,042
		Total operating expenses				13,140				17,950
						18,791				12,628
OTHER REVENUE (EXPENSE)
	Other expense					(1,262	)			-
	Loss on the extinguishment of debt					(69	)			-
		Total other expense				(1,331	)			-
NET INCOME						17,460				12,628
	Net income allocated to preferred shares					(2,400	)			(1,311	)
	Net loss allocable to non-controlling interest					56				209
NET INCOME ALLOCABLE TO COMMON SHARES					$	15,116			$	11,526
NET INCOME PER COMMON SHARE - BASIC					$	0.12			$	0.11
NET INCOME PER COMMON SHARE - DILUTED					$	0.12			$	0.11
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING − BASIC						125,616,537				104,224,083
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING − DILUTED						126,667,614				105,326,614

SCHEDULE I

RESOURCE CAPITAL CORP. AND SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO FFO and AFFO

(in thousands, except per share data)

(unaudited)

Funds from Operations

The Company evaluates its performance based on several performance measures, including funds from operations, or FFO, and adjusted funds from operations ("AFFO") in addition to net income. The Company 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. The Company calculates AFFO by adding or subtracting from FFO the non-cash impacts of the following: non-cash impairment losses resulting from fair value adjustments on financial instruments, provision for loan losses, equity investment gains and losses, straight-line rental effects, share based compensation, amortization of various deferred items and intangible assets, gains on sales of property that are wholly owned or through a joint venture in addition to the cash impact of capital expenditures that are related to its real estate owned. In addition, the Company calculates AFFO by adding and subtracting from FFO the cash impacts of the following: extinguishment of debt and sales of property.

Management believes that FFO and AFFO are appropriate measures of the Company'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 its operating performance, and believes they are also useful to investors, because they facilitate an understanding of the Company'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 the Company's operating performance between periods.

While the Company calculations 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, the Company also believe that FFO and AFFO may provide the Company 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 GAAP net income as an indicator of the Company's operating performance or as an alternative to cash flow from operating activities as a measure of its liquidity.

The following table reconciles GAAP net income to FFO and AFFO for the periods presented (unaudited) (in thousands, except per share data):

			March 31,
			2014				2013
Net income allocable to common shares - GAAP			$	15,116			$	11,526
Adjustments:
	Real estate depreciation and amortization			292				673
	(Gains) losses on sales of property (1)			(866	)			22
	Gains on sale of preferred equity			(984	)			--
FFO				13,558				12,221
Adjustments:
Non-cash items:
	Adjust for impact of imputed interest on VIE accounting			--				(1,090	)
	(Benefit) provision for loan losses			(125	)			194
	Amortization of deferred costs (non real estate) and intangible assets			2,223				1,866
	Equity investment losses			1,282				336
	Share-based compensation			1,667				3,591
	Impairment losses			--				21
	Unrealized gain on CMBS marks - linked transactions			(1,763	)			--
	Unrealized loss on trading portfolio			442				--
	Straight line rental adjustments			2				2
	Loss on the extinguishment of debt			69				--
	PCA expenses			300				--
REIT tax planning adjustments				957				726
Cash items:
	Gains (losses) on sales of property (1)			866				(22	)
	Gains on sale of preferred equity			984				--
	Gain on the extinguishment of debt			4,532				3,585
	Capital expenditures			(13	)			(418	)
AFFO			$	24,981			$	21,012
Weighted average shares - diluted				126,668				105,327
AFFO per share - diluted			$	0.20			$	0.20

(1)	Amount represents gains/losses on sales of joint venture real estate interests that were recorded by RSO on an equity basis.

SCHEDULE II

RESOURCE CAPITAL CORP. AND SUBSIDIARIES
BOOK VALUE ALLOCABLE TO COMMON SHAREHOLDERS ROLLFORWARD
(dollars in thousands, except per share data)
(unaudited)
			Amount				Per Share
Book value at December 31, 2013, allocable to common shareholders (1)			$	674,681			$	5.41
Net income allocable to common shareholders				15,116				0.12
Change in other comprehensive income:
	Available for sale securities			(289	)			--
	Derivatives			458				--
	Foreign currency conversion			(196	)			--
Common dividends				(25,663	)			(0.20	)
Proceeds (dilution) from additional shares issued during the year (2)				1,193				(0.05	)
Total net decrease				(9,381	)			(0.13	)
Book value at March 31, 2014, allocable to common shareholders (1)(3)			$	665,300			$	5.28

(1)	Per share calculations exclude unvested restricted stock, as disclosed on the consolidated balance sheets, of 2.7 million and 3.1 million shares as of March 31, 2014 and December 31, 2013, respectively.
(2)	Includes issuance of common shares from the Company's dividend reinvestment plan of 111,000 shares and 442,000 vesting of shares of restricted stock.
(3)	Book value is calculated as total stockholder's equity of $780.2 million less preferred stock equity of $114.9 million.

SCHEDULE III

RESOURCE CAPITAL CORP. AND SUBSIDIARIES

SUMMARY OF CDO AND CLO PERFORMANCE STATISTICS

(in thousands)

(unaudited)

Securitizations - Distributions and Coverage Test Summary

The following table sets forth the distributions made and coverage test summaries for each of RSO's securitizations for the periods presented (in thousands):

Name		Cash Distributions						Annualized Interest Coverage Cushion			Overcollateralization Cushion
		Three Months Ended  March 31, 2014 (1)			Year Ended December 31, 2013 (1)			Three Months Ended  March 31, 2014 (2) (3)			Three Months Ended  March 31, 2014 (4)			As of Initial Measurement Date
Apidos CDO I (5)		$	532		$	4,615		$	1,512		$	11,272		$	17,136
Apidos CDO III (6)		$	1,170		$	6,495		$	3,225		$	8,853		$	11,269
Apidos Cinco CDO (7)		$	2,764		$	12,058		$	5,451		$	19,639		$	17,774
RREF 2006-1 (8)		$	1,770		$	36,828		$	5,272		$	67,336		$	24,941
RREF 2007-1 (9)		$	2,433		$	10,880		$	9,022		$	39,703		$	26,032
RCC CRE Notes 2013 (10)		$	2,398			N/A			N/A			N/A			N/A

* The above table does not include new CLO investments made in the quarter ended March 31, 2014, as cash distributions were received subsequent to period end. In addition, the above table does not include Apidos CLO VIII or Whitney CLO I, as these CLOs were previously called and were substantially liquidated as of March 31, 2014.

(1)	Distributions on retained equity interests in CDOs (comprised of note investments and preference share ownership) and principal paydowns on notes owned; RREF CDO 2006-1 includes $231,000 and $28.1 million of paydowns during the three months ended March 31, 2014 and the year ended December 31, 2013, 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 CDO notes senior to the Company'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's reinvestment period expired in July 2011.
(6)	Apidos CDO III's reinvestment period expired in June 2012.
(7)	Apidos Cinco CDO's reinvestment period ends in May 2014.
(8)	RREF CDO 2006-1's reinvestment period expired in September 2011.
(9)	RREF CDO 2007-1's reinvestment period expired in June 2012.
(10)	RCC CRE Notes 2013 closed on December 23, 2013; the first distribution was in January 2014. There is no reinvestment period for the securitization. Additionally, the indenture contains no coverage tests.

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):

			March 31,  2014				December 31,  2013
Allowance for loan losses:
Specific allowance:
	Commercial real estate loans		$	--			$	4,572
	Bank loans			441				2,621
Total specific allowance				441				7,193
General allowance:
	Commercial real estate loans			5,844				5,844
	Bank loans			300				770
Total general allowance				6,144				6,614
Total allowance for loans			$	6,585			$	13,807
Allowance as a percentage of total loans				0.4	%			1.0	%
Loans held for sale:
	Commercial real estate		$	--			$	--
	Bank loans			272				6,850
	Residential mortgage loans			15,117				15,066
Total loans held for sale (1)			$	15,389			$	21,916

(1)	Loans held for sale are presented 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 March 31, 2014 (based on par value):

Security type:
Whole loans		91.2	%
Mezzanine loans		7.0	%
B Notes		1.8	%
Total		100.0	%
Collateral type:
Multifamily		39.9	%
Hotel		19.3	%
Retail		18.9	%
Office		14.0	%
Mixed Use		3.6	%
Industrial		1.5	%
Other		2.8	%
Total		100.0	%
Collateral location:
Southern California		27.3	%
Northern California		9.2	%
Texas		13.2	%
Arizona		10.7	%
Florida		5.9	%
Utah		3.4	%
Washington		3.3	%
Minnesota		3.2	%
Nevada		2.7	%
Other		21.1	%
Total		100.0	%

RESOURCE CAPITAL CORP. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION

(unaudited)

The following table presents bank loan portfolio statistics by industry as of March 31, 2014 (based on par value):

Industry type:
Healthcare, education and childcare		13.3	%
Diversified/conglomerate service		11.6	%
Broadcasting and entertainment		6.9	%
Automobile		6.3	%
Chemicals, plastics and rubber		5.8	%
CDO		5.2	%
Retail stores		5.1	%
Telecommunications		4.2	%
Oil and gas		3.5	%
Leisure, amusement, motion pictures, entertainment		3.4	%
Hotels, motels, inns and gaming		3.3	%
Personal, food and miscellaneous services		3.2	%
Electronics		3.0	%
Utilities		2.7	%
Finance		2.3	%
Aerospace and defense		2.1	%
Mining, steel, iron and non-precious metals		2.0	%
Other		16.1	%
Total		100.0	%