Resource Capital Corp. (NYSE:RSO) ("RSO" or the
"Company") reports results for the three months ended
March 31, 2018.
Significant Items and
Highlights
- GAAP net loss allocable to common
shares of $(0.40) per share-diluted for the three months ended
March 31, 2018.
- Core Earnings were $(0.28) per common
share-diluted, and were $0.03 per common share-diluted when
adjusted for the non-recurring charges relating to the redemption
of the Company's 8.25% Series B Cumulative Redeemable Preferred
Stock ("Series B Preferred Stock") and the pending settlement of a
securities litigation (see Schedule I).
- Effective at 5:00 p.m. (EDT) on May
25, 2018, RSO will change its name to "Exantas Capital Corp."
- RSO's board of directors anticipates
that it will declare a cash dividend of $0.10 per share on its
common stock for the second quarter of 2018, which is a 100%
increase over the first quarter of 2018 amount.
- RSO has monetized $400.6 million of
the investments that were included in management's previously
communicated strategic plan (the "Plan") (see Schedule III). This
includes $13.9 million of assets liquidated during the three months
ended March 31, 2018 and $22.7 million of assets liquidated in
April and May 2018.
- RSO originated $146.3 million of new
commercial real estate ("CRE") loans during the three months ended
March 31, 2018 (see Schedule IV).
- In April 2018, RSO entered into an
additional CRE term financing facility, increasing its borrowing
capacity to $900.0 million from $650.0 million.
- RSO redeemed all of its outstanding
8.50% Series A Cumulative Redeemable Preferred Stock ("Series A
Preferred Stock") and Series B Preferred Stock.
- Common stock cash dividend of $0.05
per share for the three months ended March 31, 2018.
- Book value of $13.92 per common share
at March 31, 2018, as compared to $14.46 per common share at
December 31, 2017.
Three Months Ended March 31, 2018
Results
- GAAP net loss allocable to common shares of $12.6 million, or
$(0.40) per share-diluted, for the three months ended
March 31, 2018 as compared to GAAP net income allocable to
common shares of $2.7 million, or $0.09 per share-diluted, for the
three months ended March 31, 2017. GAAP net loss allocable to
common shares for the three months ended March 31, 2018
includes a $4.5 million decline in the fair value of an asset held
for sale based on independent appraisals.
- Core Earnings were $(8.6) million, or $(0.28) per common
share-diluted, for the three months ended March 31, 2018, and
were $1.0 million, or $0.03 per common share-diluted, when adjusted
for the non-recurring charges relating to the redemption of the
Company's Series B Preferred Stock and the pending settlement of a
securities litigation.
- GAAP net loss allocable to common shares and Core Earnings for
the three months ended March 31, 2018 include a charge of $7.5
million, or $(0.24) per share-diluted, related to the March 2018
redemption of all remaining outstanding shares of the
Company's Series B Preferred Stock. The redemption charge
represents the difference between the carrying value and the
redemption price of the redeemed Series B Preferred Stock. Core
Earnings for the three months ended March 31, 2018
additionally include a charge of $2.2 million, or $(0.07) per
common share-diluted, related to the pending settlement of a
securities litigation.
Additional Items
Commercial Real Estate
- Substantially all of RSO's $1.4 billion CRE loan portfolio
comprised floating rate senior whole loans at March 31,
2018.
- RSO's CRE floating rate whole loan portfolio had a weighted
average spread of 4.65% over the one-month London Interbank Offered
Rate ("LIBOR") of 1.88% at March 31, 2018.
The following table summarizes RSO's CRE loan
activities and fundings of previous commitments, at par, for the
three and twelve months ended March 31, 2018 (in millions,
except percentages and amounts in footnotes):
|
Three MonthsEnded March 31, 2018 |
|
Twelve MonthsEnded March 31, 2018 |
New
CRE loan commitments |
$ |
127.1 |
|
|
$ |
598.5 |
|
New
CRE preferred equity investment |
19.2 |
|
|
19.2 |
|
Total
CRE loan commitments and investments |
146.3 |
|
|
617.7 |
|
Payoffs and paydowns (1)(2) |
(51.5 |
) |
|
(500.3 |
) |
Previous commitments funded |
10.5 |
|
|
35.8 |
|
New
unfunded loan commitments |
(13.6 |
) |
|
(70.1 |
) |
Net CRE loans
funded |
$ |
91.7 |
|
|
$ |
83.1 |
|
|
|
|
|
Weighted average
one-month LIBOR floor on new originations (3) |
1.37 |
% |
|
1.13 |
% |
Weighted average spread
above one-month LIBOR (3) |
3.94 |
% |
|
4.28 |
% |
Weighted average
unlevered yield, including amortization of origination fees |
5.79 |
% |
|
5.76 |
% |
|
|
|
|
|
|
(1) |
|
CRE loan payoffs and
extensions resulted in $370,000 and $1.2 million of exit and
extension fees during the three and twelve months ended
March 31, 2018, respectively. |
(2) |
|
Activity does not
include legacy CRE loans classified as assets held for sale. |
(3) |
|
Applicable to new CRE
whole loans funded, excluding one CRE whole loan with an 8.00%
fixed interest rate. |
|
|
|
Commercial Mortgage-Backed Securities
RSO's commercial mortgage-backed securities
("CMBS") portfolio had a carrying value of $250.7 million and a
weighted average coupon of 4.36% at March 31, 2018.
The following table summarizes RSO's CMBS
activities, at face value, for the three and twelve months ended
March 31, 2018 (in millions, except percentages):
|
|
|
|
|
|
|
Three MonthsEnded March 31, 2018 |
|
|
Twelve MonthsEnded March 31, 2018 |
|
|
|
|
|
|
|
CMBS
acquisitions |
$ |
44.3 |
|
|
|
$ |
256.2 |
|
|
Sales |
|
— |
|
|
|
|
(7.4 |
) |
|
Principal paydowns |
|
(3.4 |
) |
|
|
|
(50.5 |
) |
|
CMBS
acquisitions, net |
$ |
40.9 |
|
|
|
$ |
198.3 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average coupon
at March 31, 2018 |
|
3.88 |
% |
|
|
|
4.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate Loans Term Facility
- In April 2018, RSO entered into a
$250.0 million master repurchase agreement with Barclays Bank PLC
to finance CRE loan originations. The facility matures in April
2021, subject to certain one-year extension options. This facility
increases RSO's financing capacity to $900.0 million from $650.0
million.
Discontinued Operations
- Pursuant to the Plan, the assets
and liabilities of Primary Capital Mortgage, LLC ("PCM") and RSO's
middle market lending segment, NEW NP, LLC, were reclassified to
held for sale during the fourth quarter of 2016 and are reported as
discontinued operations on the consolidated statements of
operations.
- In the first quarter of 2018, PCM
sold its remaining loans held for sale generating total cash
proceeds of $1.9 million. PCM recognized a net loss of $539,000 for
the three months ended March 31, 2018.
- In the first quarter of 2018, NEW
NP, LLC sold its remaining syndicated middle market loans
generating total proceeds of $27.6 million, of which $12.7 million
had been received in cash as of March 31, 2018 and the balance
was received in May 2018.
- At March 31, 2018, the one
remaining directly originated middle market loan, with a carrying
value of $2.0 million, was in default. The middle market portfolio
generated net income of $819,000 for the three months ended
March 31, 2018, including a $216,000 net realized gain on the
syndicated middle market loan sales.
Liquidity
- At April 30, 2018, RSO's available
liquidity consisted of three primary sources: •
unrestricted cash and cash equivalents of $67.1
million; • approximately $87.0 million of available
liquidity from the financing of unlevered CRE and CMBS positions;
and • $396.2 million available under three term
financing facilities to finance CRE loans.
Common Stock Book Value and Total
Stockholders' Equity
The following table reconciles RSO's common
stock book value from December 31, 2017 to March 31, 2018
(in thousands, except per share data and amounts in footnotes):
|
|
|
|
|
|
|
Total Amount |
|
Per ShareAmount |
Common stock book value at December 31, 2017 (1) |
|
$ |
447,634 |
|
|
$ |
14.46 |
|
Net
loss allocable to common shares |
|
(12,582 |
) |
|
(0.40 |
) |
Change in other comprehensive income: |
|
|
|
|
Available-for-sale securities |
|
(1,292 |
) |
|
(0.04 |
) |
Derivatives |
|
1,149 |
|
|
0.03 |
|
Common stock dividends |
|
(1,560 |
) |
|
(0.05 |
) |
Common stock dividends on unvested shares |
|
(23 |
) |
|
— |
|
Accretion (dilution) from additional shares outstanding at March
31, 2018 (2) |
|
898 |
|
|
(0.08 |
) |
Total
net decrease |
|
(13,410 |
) |
|
(0.54 |
) |
Common stock book value at March 31, 2018 (1)(3) |
|
$ |
434,224 |
|
|
$ |
13.92 |
|
(1) |
|
Per
share calculations exclude unvested restricted stock, as disclosed
on the consolidated balance sheets, of 465,808 and 483,073 shares
at March 31, 2018 and December 31, 2017, respectively.
The denominators for the calculations are 31,184,609 and 30,946,819
at March 31, 2018 and December 31, 2017,
respectively. |
(2) |
|
Per
share amount calculation includes the impact of 237,790 additional
shares. |
(3) |
|
Common
stock book value is calculated as total stockholders' equity of
$550.2 million less preferred stock equity of $116.0 million at
March 31, 2018. |
|
|
|
Common stock book value includes $13.4 million
of unamortized discount resulting from the value of the conversion
option on RSO's convertible senior notes. The convertible senior
notes' discounts will be amortized into interest expense over the
remaining life of each note issuance. At March 31, 2018,
common stock book value excluding this item would have been $420.9
million, or $13.50 per common share.
Total stockholders' equity at March 31,
2018, which measures equity before accounting for non-controlling
interests, was $550.2 million, of which $116.0 million was
attributable to preferred stock. Total stockholders' equity at
December 31, 2017 was $671.5 million, of which $223.8 million
was attributable to preferred stock.
Preferred Stock Redemptions
- In the first quarter of 2018, RSO
redeemed all of its outstanding Series A Preferred Stock and Series
B Preferred Stock for $166.8 million. These redemptions eliminated
approximately $13.7 million of preferred stock dividends on an
annual basis, or $0.44 per common share.
Corporate Name Change
- Effective at 5:00 p.m. (EDT) on May
25, 2018, RSO will change its name to "Exantas Capital Corp." The
Company's common stock and 8.625% Fixed-to-Floating Series C
Cumulative Redeemable Preferred Stock ("preferred stock") will
continue to be listed on the NYSE, and the Company anticipates that
on May 29, 2018 its common stock will begin trading under the
symbol "XAN" and its preferred stock will begin trading under the
symbol "XAN PrC." The new CUSIP number for the Company's common
stock following the name change will be 30068N105, and the new
CUSIP number for its preferred stock will be 30068N402.
Investment Portfolio
The following table summarizes the amortized
cost and net carrying amount of RSO's investment portfolio at
March 31, 2018, classified by asset type (in thousands, except
percentages and amounts in footnotes):
|
|
|
|
|
|
|
|
|
At March 31, 2018 |
|
Amortized Cost |
|
Net Carrying Amount |
|
Percent of Portfolio |
|
Weighted Average Coupon |
Core
Assets: |
|
|
|
|
|
|
|
|
|
CRE whole
loans (1)(2) |
|
$ |
1,362,520 |
|
|
$ |
1,357,991 |
|
|
80.23 |
% |
|
6.34 |
% |
CRE
preferred equity investment (2) |
|
19,008 |
|
|
19,008 |
|
|
1.12 |
% |
|
11.50 |
% |
CMBS
(3) |
|
251,343 |
|
|
250,746 |
|
|
14.81 |
% |
|
4.36 |
% |
Total
Core Assets |
|
1,632,871 |
|
|
1,627,745 |
|
|
96.16 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Core
Assets: |
|
|
|
|
|
|
|
|
|
Structured notes (4) |
|
1,218 |
|
|
164 |
|
|
0.01 |
% |
|
N/A |
(10) |
Investments in unconsolidated entities (5) |
|
4,891 |
|
|
4,891 |
|
|
0.29 |
% |
|
N/A |
(10) |
Direct
financing leases (6) |
|
824 |
|
|
89 |
|
|
0.01 |
% |
|
5.66 |
% |
Legacy
CRE loans held for sale (7)(8) |
|
63,882 |
|
|
57,341 |
|
|
3.39 |
% |
|
1.71 |
% |
Middle
market loan held for sale (7)(9) |
|
13,837 |
|
|
1,978 |
|
|
0.12 |
% |
|
— |
% |
Life
settlement contracts (7) |
|
177 |
|
|
177 |
|
|
0.01 |
% |
|
N/A |
(10) |
Property
available-for-sale (7) |
|
117 |
|
|
117 |
|
|
0.01 |
% |
|
N/A |
(10) |
Total
Non-Core Assets |
|
84,946 |
|
|
64,757 |
|
|
3.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment portfolio |
|
$ |
1,717,817 |
|
|
$ |
1,692,502 |
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Net carrying amount includes an allowance
for loan losses of $4.5 million at March 31, 2018.(2)
Classified as CRE loans on the consolidated balance
sheets.(3) Classified as investment securities
available-for-sale on the consolidated balance sheets.(4)
Classified as investment securities, trading on the consolidated
balance sheets.(5) Classified as investments in
unconsolidated entities on the consolidated balance
sheets.(6) Net carrying amount includes an allowance for
lease losses of $735,000 at March 31, 2018.(7)
Classified as assets held for sale on the consolidated balance
sheets.(8) Net carrying amount includes a lower of cost or
market value adjustment of $6.5 million at March 31,
2018.(9) Net carrying amount includes the lower of cost or
market value adjustment of $11.9 million at March 31,
2018.(10) There are no stated rates associated with these
investments.
Supplemental Information
The following schedules of reconciliations and
supplemental information at March 31, 2018 are included at the
end of this release:
- Schedule I - Reconciliation of GAAP Net Income (Loss) to Core
Earnings;
- Schedule II - Summary of Securitization Performance
Statistics;
- Schedule III - Strategic Plan Update;
- Schedule IV - CRE Loan Activities; and
- Schedule V - Supplemental Information.
About Resource Capital Corp.
Resource Capital Corp. is a real estate
investment trust that is primarily focused on originating, holding
and managing commercial mortgage loans and commercial real
estate-related debt investments.
The Company is externally managed by Resource
Capital Manager, Inc. (the "Manager"), which is an indirect
wholly-owned subsidiary of C-III Capital Partners LLC, a leading
commercial real estate investment management and services company
engaged in a broad range of activities.
For more information, please visit RSO's website
at www.resourcecapitalcorp.com or contact investor relations at
IR@resourcecapitalcorp.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 that 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 for the year ended December 31, 2017 and the risks expressed
in its other 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 release or to reflect the occurrence of
unanticipated events.
Furthermore, certain non-GAAP financial measures
are discussed in this release. RSO's presentation of this
information is not intended to be considered in isolation of or as
a substitute for the financial information presented in accordance
with GAAP. Reconciliations of these non-GAAP financial measures to
the most comparable measures prepared in accordance with GAAP are
set forth in Schedule I of this release and can be accessed through
RSO's filings with the SEC at www.sec.gov.
The remainder of this release contains RSO's
unaudited (2018) and audited (2017) consolidated balance sheets,
unaudited consolidated statements of operations, a reconciliation
of GAAP net income (loss) to Core Earnings, a summary of
securitization performance statistics, an update on RSO's strategic
plan, a summary of RSO's CRE loan activities and supplemental
information regarding RSO's CRE loan portfolio and loans held for
sale.
|
|
RESOURCE CAPITAL CORP. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(in thousands, except share and per share
data) |
|
|
March 31, 2018 |
|
December 31, 2017 |
|
(unaudited) |
|
|
ASSETS
(1) |
|
|
|
Cash and
cash equivalents |
$ |
61,500 |
|
|
$ |
181,490 |
|
Restricted cash |
546 |
|
|
22,874 |
|
Accrued
interest receivable |
6,945 |
|
|
6,859 |
|
CRE
loans, net of allowances of $4,529 and $5,328 |
1,376,999 |
|
|
1,284,822 |
|
Investment securities available-for-sale |
250,746 |
|
|
211,737 |
|
Investment securities, trading |
164 |
|
|
178 |
|
Loans
held for sale |
— |
|
|
13 |
|
Principal
paydowns receivable |
20 |
|
|
76,129 |
|
Investments in unconsolidated entities |
6,439 |
|
|
12,051 |
|
Derivatives, at fair value |
1,751 |
|
|
602 |
|
Direct
financing leases, net of allowances of $735 and $735 |
89 |
|
|
151 |
|
Other
assets |
6,981 |
|
|
7,451 |
|
Assets
held for sale (amounts include $57,341 and $61,841 of legacy CRE
loans held for sale incontinuing operations) |
77,621 |
|
|
107,718 |
|
Total
assets |
$ |
1,789,801 |
|
|
$ |
1,912,075 |
|
LIABILITIES (2) |
|
|
|
Accounts
payable and other liabilities |
$ |
6,654 |
|
|
$ |
5,153 |
|
Management fee payable |
938 |
|
|
1,035 |
|
Accrued
interest payable |
3,244 |
|
|
4,387 |
|
Borrowings |
1,222,386 |
|
|
1,163,485 |
|
Distributions payable |
3,308 |
|
|
5,581 |
|
Preferred
stock redemption liability |
— |
|
|
50,000 |
|
Derivatives, at fair value |
— |
|
|
76 |
|
Accrued
tax liability |
209 |
|
|
540 |
|
Liabilities held for sale |
2,883 |
|
|
10,342 |
|
Total
liabilities |
1,239,622 |
|
|
1,240,599 |
|
STOCKHOLDERS' EQUITY |
|
|
|
Preferred
stock, par value $0.001: 10,000,000 shares authorized 8.25% Series
B Cumulative Redeemable Preferred Stock, liquidation preference
$25.00 per share; 0 and 4,613,596 shares issued and
outstanding |
— |
|
|
5 |
|
Preferred
stock, par value $0.001: 10,000,000 shares authorized 8.625%
Fixed-to-Floating Series C Cumulative Redeemable Preferred Stock,
liquidation preference $25.00 per share; 4,800,000 and 4,800,000
shares issued and outstanding |
5 |
|
|
5 |
|
Common
stock, par value $0.001: 125,000,000 shares authorized;
31,650,417 and 31,429,892 shares issued and outstanding (including
465,808 and 483,073 unvested restricted shares) |
32 |
|
|
31 |
|
Additional paid-in capital |
1,080,927 |
|
|
1,187,911 |
|
Accumulated other comprehensive income |
1,154 |
|
|
1,297 |
|
Distributions in excess of earnings |
(531,939 |
) |
|
(517,773 |
) |
Total
stockholders' equity |
550,179 |
|
|
671,476 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
1,789,801 |
|
|
$ |
1,912,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESOURCE CAPITAL CORP. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS -
(Continued) |
(in thousands, except share and per share
data) |
|
|
March 31, 2018 |
|
December 31, 2017 |
|
(unaudited) |
|
|
|
|
(1) Assets of
consolidated variable interest entities ("VIEs") included in total
assets above: |
|
|
|
|
|
|
|
Restricted cash |
$ |
513 |
|
|
$ |
20,846 |
|
Accrued
interest receivable |
2,728 |
|
|
3,347 |
|
CRE
loans, pledged as collateral and net of allowances of $844 and
$1,330 |
571,640 |
|
|
603,110 |
|
Loans
held for sale |
— |
|
|
13 |
|
Principal
paydowns receivable |
20 |
|
|
72,207 |
|
Other
assets |
188 |
|
|
73 |
|
Total
assets of consolidated VIEs |
$ |
575,089 |
|
|
$ |
699,596 |
|
|
|
|
|
(2) Liabilities
of consolidated VIEs included in total liabilities
above: |
|
|
|
Accounts
payable and other liabilities |
$ |
65 |
|
|
$ |
96 |
|
Accrued
interest payable |
412 |
|
|
592 |
|
Borrowings |
298,970 |
|
|
416,655 |
|
Total
liabilities of consolidated VIEs |
$ |
299,447 |
|
|
$ |
417,343 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RESOURCE CAPITAL CORP. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except share and per share
data) |
|
|
For the Three Months Ended |
|
March 31, |
|
2018 |
|
2017 |
|
(unaudited) |
|
(unaudited) |
REVENUES |
|
|
|
Interest
income: |
|
|
|
CRE
loans |
$ |
22,383 |
|
|
$ |
21,533 |
|
Securities |
3,456 |
|
|
2,308 |
|
Other |
118 |
|
|
1,630 |
|
Total
interest income |
25,957 |
|
|
25,471 |
|
Interest
expense |
14,384 |
|
|
14,254 |
|
Net
interest income |
11,573 |
|
|
11,217 |
|
Other
(expense) revenue |
(95 |
) |
|
928 |
|
Total
revenues |
11,478 |
|
|
12,145 |
|
OPERATING
EXPENSES |
|
|
|
Management fees |
2,813 |
|
|
2,680 |
|
Equity
compensation |
967 |
|
|
788 |
|
General
and administrative |
3,060 |
|
|
3,863 |
|
Depreciation and amortization |
13 |
|
|
68 |
|
Impairment losses |
— |
|
|
177 |
|
(Recovery
of) provision for loan and lease losses, net |
(799 |
) |
|
999 |
|
Total
operating expenses |
6,054 |
|
|
8,575 |
|
|
|
|
|
|
5,424 |
|
|
3,570 |
|
OTHER INCOME
(EXPENSE) |
|
|
|
Equity in
(losses) earnings of unconsolidated entities |
(292 |
) |
|
361 |
|
Net
realized and unrealized (loss) gain on investment securities
available-for-sale and loans and derivatives |
(642 |
) |
|
7,606 |
|
Net
realized and unrealized loss on investment securities, trading |
(5 |
) |
|
(911 |
) |
Fair
value adjustments on financial assets held for sale |
(4,665 |
) |
|
(21 |
) |
Other
income |
11 |
|
|
68 |
|
Total
other (expense) income |
(5,593 |
) |
|
7,103 |
|
|
|
|
|
(LOSS) INCOME
FROM CONTINUING OPERATIONS BEFORE TAXES |
(169 |
) |
|
10,673 |
|
Income
tax benefit (expense) |
32 |
|
|
(1,499 |
) |
NET (LOSS)
INCOME FROM CONTINUING OPERATIONS |
(137 |
) |
|
9,174 |
|
NET INCOME
(LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX |
247 |
|
|
(561 |
) |
NET
INCOME |
110 |
|
|
8,613 |
|
Net
income allocated to preferred shares |
(5,210 |
) |
|
(6,014 |
) |
Consideration paid in excess of carrying value of preferred
shares |
(7,482 |
) |
|
— |
|
Net loss
allocable to non-controlling interest, net of taxes |
— |
|
|
101 |
|
NET (LOSS)
INCOME ALLOCABLE TO COMMON SHARES |
$ |
(12,582 |
) |
|
$ |
2,700 |
|
NET (LOSS)
INCOME PER COMMON SHARE - BASIC: |
|
|
|
CONTINUING OPERATIONS |
$ |
(0.41 |
) |
|
$ |
0.11 |
|
DISCONTINUED OPERATIONS |
$ |
0.01 |
|
|
$ |
(0.02 |
) |
TOTAL NET
(LOSS) INCOME PER COMMON SHARE - BASIC |
$ |
(0.40 |
) |
|
$ |
0.09 |
|
NET (LOSS)
INCOME PER COMMON SHARE - DILUTED: |
|
|
|
CONTINUING OPERATIONS |
$ |
(0.41 |
) |
|
$ |
0.11 |
|
DISCONTINUED OPERATIONS |
$ |
0.01 |
|
|
$ |
(0.02 |
) |
TOTAL NET
(LOSS) INCOME PER COMMON SHARE - DILUTED |
$ |
(0.40 |
) |
|
$ |
0.09 |
|
WEIGHTED
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC |
31,111,315 |
|
|
30,752,006 |
|
WEIGHTED
AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED |
31,111,315 |
|
|
30,914,148 |
|
|
|
SCHEDULE I
RESOURCE CAPITAL CORP. AND
SUBSIDIARIESRECONCILIATION OF GAAP NET INCOME
(LOSS) TO CORE EARNINGS(unaudited)
RSO uses Core Earnings as a non-GAAP financial
measure to evaluate its operating performance. RSO previously used
Adjusted Funds from Operations as a non-GAAP measure of operating
performance.
Core Earnings exclude the effects of certain
transactions and GAAP adjustments that RSO believes are not
indicative of its current CRE loan portfolio and other CRE-related
investments and operations. Core Earnings exclude income (loss)
from all non-core assets, such as commercial finance, middle market
lending, residential mortgage lending, certain legacy CRE loans and
other non-CRE assets designated as assets held for sale at the
initial measurement date.(1)
Core Earnings, for reporting purposes, is
defined as GAAP net income (loss) allocable to common shareholders,
excluding (i) non-cash equity compensation expense, (ii) unrealized
gains and losses, (iii) non-cash provisions for loan losses, (iv)
non-cash impairments on securities, (v) non-cash amortization of
discounts or premiums associated with borrowings, (vi) net income
or loss from a limited partnership interest owned at the initial
measurement date, (vii) net income or loss from non-core
assets,(2)(3) (viii) real estate depreciation and amortization,
(ix) foreign currency gains or losses and (x) income or loss from
discontinued operations. Core Earnings may also be adjusted
periodically to exclude certain one-time events pursuant to changes
in GAAP and certain non-cash items.
Although pursuant to the Third Amended and
Restated Management Agreement RSO calculates incentive compensation
using Core Earnings excluding incentive fees payable to the
Manager, beginning with the three months and year ended December
31, 2017 RSO includes incentive fees payable to the Manager in Core
Earnings for reporting purposes.
Core Earnings does not represent net income or
cash generated from operating activities and should not be
considered as an alternative to GAAP net income or as a measure of
liquidity under GAAP. RSO's methodology for calculating Core
Earnings may differ from methodologies used by other companies to
calculate similar supplemental performance measures, and,
accordingly, its reported Core Earnings may not be comparable to
similar performance measures used by other companies.
|
The
following table provides a reconciliation from GAAP net (loss)
income allocable to common shares to Core Earnings allocable to
common shares for the periods presented (in thousands, except per
share data): |
|
|
For the Three Months
EndedMarch 31, |
|
2018 |
|
2017 |
Net (loss)
income allocable to common shares - GAAP |
$ |
(12,582 |
) |
|
$ |
2,700 |
|
Adjustment for realized
gain on CRE assets |
— |
|
|
— |
|
Net (loss)
income allocable to common shares - GAAP, adjusted |
(12,582 |
) |
|
2,700 |
|
|
|
|
|
Reconciling
items from continuing operations: |
|
|
|
Non-cash
equity compensation expense |
967 |
|
|
788 |
|
Non-cash
(recovery of) provision for CRE loan losses |
(799 |
) |
|
860 |
|
Realized
loss on core activities (4) |
(2,167 |
) |
|
— |
|
Non-cash
amortization of discounts or premiums associated with
borrowings |
778 |
|
|
414 |
|
Net
income from limited partnership interest owned at the initial
measurement date (1) |
— |
|
|
(358 |
) |
Income
tax (benefit) expense from non-core investments (2)(3) |
(32 |
) |
|
1,499 |
|
Net
realized loss on non-core assets (2)(3) |
215 |
|
|
— |
|
Net loss
(income) from non-core assets (3) |
397 |
|
|
(1,429 |
) |
|
|
|
|
Reconciling
items from discontinued operations and CRE assets: |
|
|
|
Net
interest income on legacy CRE loans held for sale |
(322 |
) |
|
(1,324 |
) |
Realized
gain on liquidation of CRE loans |
— |
|
|
(6,954 |
) |
Fair
value adjustments on legacy CRE loans held for sale |
4,672 |
|
|
— |
|
Net loss
(income) from other non-CRE investments held for sale |
478 |
|
|
(25 |
) |
(Income)
loss from discontinued operations, net of taxes |
(247 |
) |
|
561 |
|
Core Earnings
allocable to common shares (5) |
(8,642 |
) |
|
(3,268 |
) |
|
|
|
|
Reconciling
items for nonrecurring activities: |
|
|
|
Loss on
redemption of Series B Preferred Stock |
7,482 |
|
|
— |
|
Realized
loss on core activities |
2,167 |
|
|
— |
|
Core Earnings
allocable to common shares, adjusted |
$ |
1,007 |
|
|
$ |
(3,268 |
) |
|
|
|
|
Weighted average common
shares - diluted |
31,111 |
|
|
30,752 |
|
|
|
|
|
Core Earnings
per common share - diluted (5) |
$ |
(0.28 |
) |
|
$ |
(0.11 |
) |
Core Earnings
per common share, adjusted - diluted |
$ |
0.03 |
|
|
$ |
(0.11 |
) |
(1) |
|
Initial
measurement date is December 31, 2016. |
(2) |
|
Income
tax expense from non-core investments and net realized gain on
non-core assets are components of net income or loss from non-core
assets. |
(3) |
|
Non-core
assets are investments and securities owned by RSO at the initial
measurement date in (i) commercial finance, (ii) middle market
lending, (iii) residential mortgage lending, (iv) legacy CRE loans
designated as held for sale and (v) other non-CRE assets included
in assets held for sale. |
(4) |
|
Payment
of pending settlement of a securities litigation, previously
accrued in 2017. |
(5) |
|
Core
Earnings include a non-recurring charge of $7.5 million, or $(0.24)
per common share-diluted, for the three months ended March 31, 2018
in connection with the redemption of the remaining Series B
Preferred Stock. |
|
|
|
|
|
|
RSO has five operating segments: commercial real
estate debt investments; commercial finance; middle market lending;
residential mortgage lending; and corporate & other. The
commercial real estate debt investments operating segment includes
our activities and operations related to commercial real estate
loans and commercial real estate-related securities. The commercial
finance operating segment includes the activities and operations
related to syndicated corporate loans, syndicated corporate
loan-related securities and direct financing leases. The middle
market lending operating segment includes the activities and
operations related to the origination and purchase of middle market
corporate loans. The residential mortgage lending operating segment
includes the activities and operations related to originating and
servicing residential mortgage loans and investments in residential
mortgage-backed securities. The corporate & other segment
includes corporate level interest income, interest expense,
inter-segment eliminations not allocable to any particular
operating segment and general and administrative expense.
As part of the plan to exit non-CRE businesses,
the entire middle market lending and substantially all of the
residential mortgage lending segments are reported as discontinued
operations. The following table presents a reconciliation of GAAP
net income (loss) allocable to common shares to Core Earnings
allocable to common shares for the three months ended March 31,
2018 presented by operating segment (in thousands, except per share
data):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate Debt
Investments |
|
Corporate &
Other |
|
|
Core Subtotal |
|
|
Commercial Finance |
|
|
Middle Market Lending |
|
|
Residential Mortgage
Lending |
|
|
Total |
|
Net income
(loss) allocable to common shares - GAAP |
$ |
12,302 |
|
|
$ |
(24,366 |
) |
|
$ |
(12,064 |
) |
|
$ |
(470 |
) |
|
$ |
819 |
|
|
$ |
(867 |
) |
|
$ |
(12,582 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
items from continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
equity compensation expense |
— |
|
|
967 |
|
|
967 |
|
|
— |
|
|
— |
|
|
— |
|
|
967 |
|
Non-cash
recovery of CRE loan losses |
(799 |
) |
|
— |
|
|
(799 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(799 |
) |
Realized
loss on core activities (4) |
— |
|
|
(2,167 |
) |
|
(2,167 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(2,167 |
) |
Non-cash
amortization of discounts or premiums associated with
borrowings |
— |
|
|
778 |
|
|
778 |
|
|
— |
|
|
— |
|
|
— |
|
|
778 |
|
Income
tax benefit from non-core investments (2)(3) |
— |
|
|
— |
|
|
— |
|
|
(32 |
) |
|
— |
|
|
— |
|
|
(32 |
) |
Net
realized loss on non-core assets (2)(3) |
— |
|
|
— |
|
|
— |
|
|
215 |
|
|
— |
|
|
— |
|
|
215 |
|
Net loss
from non-core assets (3) |
— |
|
|
— |
|
|
— |
|
|
286 |
|
|
— |
|
|
111 |
|
|
397 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification of allocated expenses to non-CRE activities |
— |
|
|
(185 |
) |
|
(185 |
) |
|
1 |
|
|
— |
|
|
184 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
items from discontinued operations and CRE assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income on legacy CRE loans held for sale |
(322 |
) |
|
— |
|
|
(322 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(322 |
) |
Fair
value adjustments on legacy CRE loans held for sale |
4,672 |
|
|
— |
|
|
4,672 |
|
|
— |
|
|
— |
|
|
— |
|
|
4,672 |
|
Net loss
from other non-CRE investments held for sale |
— |
|
|
478 |
|
|
478 |
|
|
— |
|
|
— |
|
|
— |
|
|
478 |
|
(Income)
loss from discontinued operations, net of taxes |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(819 |
) |
|
572 |
|
|
(247 |
) |
Core Earnings
allocable to common shares (5) |
15,853 |
|
|
(24,495 |
) |
|
(8,642 |
) |
|
— |
|
|
— |
|
|
— |
|
|
(8,642 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciling
items for nonrecurring activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
redemption of Series B Preferred Stock |
— |
|
|
7,482 |
|
|
7,482 |
|
|
— |
|
|
— |
|
|
— |
|
|
7,482 |
|
Realized
loss on core activities |
— |
|
|
2,167 |
|
|
2,167 |
|
|
— |
|
|
— |
|
|
— |
|
|
2,167 |
|
Core Earnings
allocable to common shares, adjusted |
$ |
15,853 |
|
|
$ |
(14,846 |
) |
|
$ |
1,007 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares - diluted |
31,111 |
|
|
31,111 |
|
|
31,111 |
|
|
31,111 |
|
|
31,111 |
|
|
31,111 |
|
|
31,111 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Earnings
per common share - diluted (5) |
$ |
0.51 |
|
|
$ |
(0.79 |
) |
|
$ |
(0.28 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(0.28 |
) |
Core Earnings
per common share, adjusted - diluted |
$ |
0.51 |
|
|
$ |
(0.48 |
) |
|
$ |
0.03 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
0.03 |
|
(1) |
|
Initial
measurement date is December 31, 2016. |
(2) |
|
Income
tax expense from non-core investments and net realized gain on
non-core assets are components of net income or loss from non-core
assets. |
(3) |
|
Non-core
assets are investments and securities owned by RSO at the initial
measurement date in (i) commercial finance, (ii) middle market
lending, (iii) residential mortgage lending, (iv) legacy CRE loans
designated as held for sale and (v) other non-CRE assets included
in assets held for sale. |
(4) |
|
Payment
of pending settlement of a securities litigation, previously
accrued in 2017. |
(5) |
|
Core
Earnings include a non-recurring charge of $7.5 million, or $(0.24)
per common share-diluted, for the three months ended March 31, 2018
in connection with the redemption of the remaining Series B
Preferred Stock. |
|
|
|
SCHEDULE II
RESOURCE CAPITAL CORP. AND
SUBSIDIARIESSUMMARY OF SECURITIZATION PERFORMANCE
STATISTICS(unaudited)
Distributions, Coverage Tests and
Liquidations
The following table sets forth the distributions
made by and coverage test summaries for RSO's active
securitizations for the periods presented (in thousands):
Name |
|
Cash Distributions |
|
Overcollateralization Cushion
(1) |
|
End of
DesignatedPrincipalReinvestmentPeriod |
|
For the ThreeMonths EndedMarch 31,
2018 |
|
For the YearEnded December31,
2017 |
|
At March 31, 2018 |
|
At the InitialMeasurement Date |
|
RCC
2015-CRE3 (2) |
|
$ |
1,428 |
|
|
$ |
8,672 |
|
|
$ |
61,469 |
|
|
$ |
20,313 |
|
|
February 2017 |
RCC
2015-CRE4 (2) |
|
$ |
1,887 |
|
|
$ |
8,554 |
|
|
$ |
72,184 |
|
|
$ |
9,397 |
|
|
September 2017 |
RCC
2017-CRE5 (2) |
|
$ |
10,601 |
|
|
$ |
6,643 |
|
|
$ |
19,655 |
|
|
$ |
20,727 |
|
|
July 2020 |
Apidos Cinco CDO (3) |
|
$ |
— |
|
|
$ |
2,056 |
|
|
N/A |
|
|
$ |
17,774 |
|
|
N/A |
(1) |
|
Overcollateralization cushion represents the amount by which the
collateral held by the securitization issuer exceeds the maximum
amount required. |
(2) |
|
The
designated principal reinvestment period for Resource Capital Corp.
2015-CRE3, Resource Capital Corp. 2015-CRE4 and Resource Capital
Corp. 2017-CRE5 is the period in which principal repayments can be
utilized to purchase loans held outside of the respective
securitization that represent the funded commitments of existing
collateral in the respective securitization that were not funded as
of the date the respective securitization was closed. Additionally,
the indenture for each securitization does not contain any interest
coverage test provisions. |
(3) |
|
Apidos
Cinco CDO was substantially liquidated in November 2016. |
|
|
|
|
|
|
The following table sets forth the distributions
made by and liquidation details for RSO's liquidated
securitizations for the periods presented (in thousands):
|
|
|
|
|
|
Name |
|
Cash Distributions |
|
Liquidation Details |
|
|
For the Three Months Ended March
31, 2018 |
|
For the YearEnded December31,
2017 |
|
Liquidation Date |
|
Remaining Assets atthe
LiquidationDate (1) |
|
|
|
|
|
|
RCC
2014-CRE2 (2) |
|
$ |
— |
|
|
$ |
33,050 |
|
|
August
2017 |
|
$ |
92,980 |
|
|
(1) |
|
The
remaining assets at the liquidation date were measured at fair
value and returned to RSO in exchange for its preference share and
equity notes in the securitization. |
(2) |
|
Cash
distributions for the year ended December 31, 2017 include
preference share and equity notes distributions at liquidation of
$25.6 million for Resource Capital Corp. 2014-CRE2. |
|
|
|
|
|
|
SCHEDULE III
RESOURCE CAPITAL CORP. AND
SUBSIDIARIESSTRATEGIC PLAN
UPDATE(unaudited)
In November 2016, RSO's board of directors
approved the Plan, pursuant to which RSO is primarily focused on
making CRE debt investments. The Plan includes disposing of certain
non-core businesses and investments and underperforming legacy CRE
loans ("Identified Assets"), as well as maintaining a dividend
policy based on sustainable earnings. As part of the Plan, certain
Identified Assets were reclassified as discontinued operations
and/or assets held for sale during the fourth quarter of 2016. The
following table delineates these disposable investments by business
segment and details the current net book value of the businesses
and investments included in the Plan (in millions, except amounts
in footnotes):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IdentifiedAssets atPlan Inception |
|
|
Impairments/Adjustmentson Non-MonetizedAssets
(1)(2) |
|
Impairments/Adjustmentson
MonetizedAssets (1) |
|
MonetizedthroughMarch 31,2018 (3) |
|
|
Net BookValue atMarch 31,2018 (3) |
|
Discontinued
operations and assets held for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Legacy
CRE loans (4) |
$ |
194.7 |
|
|
$ |
(18.3 |
) |
|
$ |
(11.7 |
) |
|
$ |
(107.4 |
) |
|
$ |
57.3 |
|
Middle
market loans |
73.8 |
|
|
(17.0 |
) |
|
(0.8 |
) |
|
(54.0 |
) |
|
2.0 |
|
Residential mortgage lending segment (5) |
56.6 |
|
|
(1.7 |
) |
|
(9.6 |
) |
|
(43.7 |
) |
|
1.6 |
|
Other
assets held for sale |
5.9 |
|
|
— |
|
|
3.9 |
|
|
(8.9 |
) |
|
0.9 |
|
Subtotal - discontinued operations and assets held for
sale |
$ |
331.0 |
|
|
$ |
(37.0 |
) |
|
$ |
(18.2 |
) |
|
$ |
(214.0 |
) |
|
$ |
61.8 |
|
Investments in
unconsolidated entities |
86.6 |
|
|
— |
|
|
38.3 |
|
|
(124.3 |
) |
|
0.6 |
|
Commercial
finance assets |
62.5 |
|
|
— |
|
|
— |
|
|
(62.3 |
) |
|
0.2 |
|
Total |
$ |
480.1 |
|
|
$ |
(37.0 |
) |
|
$ |
20.1 |
|
|
$ |
(400.6 |
) |
|
$ |
62.6 |
|
(1) |
|
Reflects
adjustments as a result of the designation as assets held for sale
or discontinued operations, which occurred during the third and
fourth quarters of 2016 except as noted in (2) below. |
(2) |
|
The
impairment adjustment to middle market loans includes $5.4 million
of fair value adjustments that occurred prior to the inception of
the Plan. |
(3) |
|
Residential mortgage lending segment and investments in
unconsolidated entities include pro forma adjustments of $3.6
million and $4.3 million, respectively, for proceeds received in
April 2018. Middle market loans include pro forma adjustments of
$14.8 million for proceeds received in May 2018. |
(4) |
|
Legacy
CRE loans includes $118.2 million par value of loans at the
inception of the Plan that were not reflected on the consolidated
balance sheets until RSO's investment in Resource Real Estate
Funding CDO 2007-1 was liquidated in November 2016. |
(5) |
|
Includes
$1.9 million of cash and cash equivalents not classified as assets
held for sale in the residential mortgage lending segment at
March 31, 2018. |
|
|
|
|
|
|
SCHEDULE IV
RESOURCE CAPITAL CORP. AND
SUBSIDIARIESCRE LOAN
ACTIVITIES(unaudited)
The following table summarizes RSO's CRE loan
activities and fundings of previous commitments, at par, for the
periods then ended (in millions):
|
For the Three Months Ended |
|
March 31,2018 |
|
December 31,
2017 |
|
September 30,2017 |
|
|
June 30,2017 |
|
|
|
March 31,2017 |
|
|
December 31,2016 |
|
September
30,2016 |
|
|
June 30,2016 |
|
New CRE loan
commitments |
$ |
127.1 |
|
|
$ |
229.0 |
|
|
$ |
157.7 |
|
|
$ |
84.7 |
|
|
$ |
128.9 |
|
|
$ |
50.6 |
|
|
$ |
86.5 |
|
|
$ |
10.5 |
|
New CRE preferred
equity investment |
19.2 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total CRE loan
commitments and investments |
146.3 |
|
|
229.0 |
|
|
157.7 |
|
|
84.7 |
|
|
128.9 |
|
|
50.6 |
|
|
86.5 |
|
|
10.5 |
|
Payoffs and paydowns
(1) |
(51.5 |
) |
|
(185.7 |
) |
|
(129.5 |
) |
|
(133.6 |
) |
|
(110.7 |
) |
|
(69.1 |
) |
|
(155.9 |
) |
|
(107.2 |
) |
Previous commitments
funded |
10.5 |
|
|
4.0 |
|
|
8.0 |
|
|
13.3 |
|
|
6.3 |
|
|
12.9 |
|
|
15.4 |
|
|
21.7 |
|
New unfunded loan
commitments |
(13.6 |
) |
|
(24.6 |
) |
|
(23.0 |
) |
|
(8.9 |
) |
|
(14.9 |
) |
|
(3.5 |
) |
|
(6.7 |
) |
|
(3.3 |
) |
Net CRE loans
funded |
$ |
91.7 |
|
|
$ |
22.7 |
|
|
$ |
13.2 |
|
|
$ |
(44.5 |
) |
|
$ |
9.6 |
|
|
$ |
(9.1 |
) |
|
$ |
(60.7 |
) |
|
$ |
(78.3 |
) |
(1) Activity does not include legacy CRE loans
classified as assets held for sale.
SCHEDULE V
RESOURCE CAPITAL CORP. AND
SUBSIDIARIESSUPPLEMENTAL INFORMATION
Loan Investment Statistics
The following table presents information on RSO's
allowances for loan losses and its loans held for sale portfolio at
the dates indicated (amounts in thousands, percentages based on
amortized cost):
|
|
|
|
|
|
|
March 31,2018 |
|
December 31,2017 |
|
|
(unaudited) |
|
|
Allowance for
loan losses: |
|
|
|
|
Specific
allowance: |
|
|
|
|
CRE whole
loans |
|
$ |
2,500 |
|
|
$ |
2,500 |
|
Total
specific allowance |
|
2,500 |
|
|
2,500 |
|
|
|
|
|
|
General allowance: |
|
|
|
|
CRE whole
loans |
|
2,029 |
|
|
2,828 |
|
Total
general allowance |
|
2,029 |
|
|
2,828 |
|
Total
allowance for loans |
|
$ |
4,529 |
|
|
$ |
5,328 |
|
Allowance as a
percentage of total loans |
|
0.3 |
% |
|
0.4 |
% |
|
|
|
|
|
Loans held for
sale: |
|
|
|
|
Syndicated corporate loans (1) |
|
$ |
— |
|
|
$ |
13 |
|
Total
loans held for sale |
|
$ |
— |
|
|
$ |
13 |
|
|
(1) The fair value option was elected for
syndicated corporate loans held for sale.
|
|
The following table presents unaudited CRE loan
portfolio statistics at March 31, 2018, excluding legacy CRE
loans classified as assets held for sale (percentages based on
carrying value at March 31, 2018): |
|
|
Loan type: |
|
Whole
loans |
98.6 |
% |
Preferred
equity investment |
1.4 |
% |
Total |
100.0 |
% |
|
|
Collateral type: |
|
Multifamily |
48.6 |
% |
Office |
20.2 |
% |
Retail |
18.3 |
% |
Hotel |
8.6 |
% |
Manufactured Housing |
2.0 |
% |
Industrial |
1.4 |
% |
Self-Storage |
0.9 |
% |
Total |
100.0 |
% |
|
|
Collateral by NCREIF U.S. region: |
|
Southwest
(1) |
28.3 |
% |
Pacific
(2) |
24.5 |
% |
Mountain
(3) |
12.7 |
% |
Southeast
(4) |
10.8 |
% |
Northeast
(5) |
9.0 |
% |
Mid
Atlantic (6) |
8.8 |
% |
East
North Central |
5.1 |
% |
West
North Central |
0.8 |
% |
Total |
100.0 |
% |
(1) |
|
CRE
loans in Texas represent 26.2% of the total loan portfolio. |
(2) |
|
CRE
loans in Southern and Northern California represent 14.3% and 7.8%,
respectively, of the total loan portfolio. |
(3) |
|
CRE
loans in Arizona represent 5.4% of the total loan portfolio. |
(4) |
|
CRE
loans in Florida represent 8.1% of the total loan portfolio. |
(5) |
|
CRE
loans in Pennsylvania represent 5.2% of the total loan
portfolio. |
(6) |
|
CRE
loans in North Carolina represent 5.8% of the total loan
portfolio. |
|
|
|
CONTACT: DAVID J.
BRYANTCHIEF FINANCIAL
OFFICERRESOURCE CAPITAL CORP.717
Fifth AvenueNew York, NY
10022212-621-3210
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