NEW YORK, NY--(Marketwired - Apr 10, 2014) - Resource Capital Corp. (NYSE: RSO) (the "Company") today provided an update on its recent investing activities. During the quarter ended March 31, 2014, the Company invested over $300 million in new assets including over $161 million in commercial real estate loans and securities. Since January 1, 2014:
Commercial Real Estate - The Company originated five new commercial real estate ("CRE") loans totaling approximately $116.8 million, including future funding commitments, and also funded $3.7 million on existing commitments during the quarter. These originations reflect a 76% increase over the same period in 2013. The Company currently has seven new loans in process totaling $108.2 million, including three loans which the Company anticipates will close within the next two weeks totaling $42.7 million. In addition, RSO currently has applications issued on another six new loans totaling $240.2 million and has an ongoing pipeline of new CRE loan opportunities (in various stages of negotiation and underwriting) of new whole loans representing over $650 million of potential investments. Given the pace of originations, the Company expects to complete a second securitization in the near term.
The Company also purchased $40.8 million par value of CMBS during the quarter. In addition, in March, the Company's joint venture with an institutional partner sold a multifamily property in Washington D.C., which it had acquired in 2011. The Company realized a gain of $866,000 in the first quarter for its 5% interest in the venture.
Commercial Finance - RSO invested $37.8 million in European CLO equity during the first quarter of 2014 and expects to make a 21% IRR on this investment. The Company also made $58.2 million of loan commitments since January 1, 2014 in middle market loans and has already funded $41.2 million of those commitments. In addition, the Company made $23.6 million of new investments during the first quarter of 2014 in one of the remaining leveraged loan vehicles, Apidos Cinco.
Jonathan Cohen, President and CEO of Resource Capital Corp. said, "During the first quarter of 2014, Resource Capital Corp. made over $300 million of high quality, diversified investments. Our pipeline is very strong and we hope to increase those investment levels sequentially through the year. Our core CRE loan originations are running at a significantly higher rate than a year ago and some of our newer initiatives, such as our middle market corporate lending are already beginning to make a meaningful contribution, which we expect to grow."
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. The Company also makes other commercial finance investments. The Company 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 the Company's website at www.resourcecapitalcorp.com or contact investor relations at firstname.lastname@example.org.
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words like "anticipate," "expect," "intend" and similar expressions. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Forward-looking statements are necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying any forward-looking statements will not materialize or will vary significantly from actual results. Variations of assumptions and results may be material. Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, changes in economic conditions generally and the real estate and credit markets specifically. Factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, and its other filings with the SEC. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.