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Resource Capital Corp. Reports Operating Results (10-Q)

August 07, 2012 | About:
10qk

10qk

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Resource Capital Corp. (RSO) filed Quarterly Report for the period ended 2012-06-30.

Resource Capital Corp. has a market cap of $474.6 million; its shares were traded at around $5.67 with a P/E ratio of 9.3 and P/S ratio of 3.8. The dividend yield of Resource Capital Corp. stocks is 14.3%.

Highlight of Business Operations:

Base management fees increased by $143,000 (8%) and $439,000 (13%) to $1.9 million and $3.8 million for the three and six months ended June 30, 2012, respectively, as compared to $1.8 million and $3.4 million for the three and six months ended June 30, 2011, respectively. These increases were due to increased stockholders equity, a component in the formula by which base management fees are calculated, primarily as a result of the receipt of $115.9 million of proceeds from the sales of common stock through our Dividend Reinvestment and Stock Purchase Plan or DRIP, from January 1, 2011 through June 30, 2012 as well as the receipt of $46.6 million from the proceeds of our March 2011 secondary common stock offering.

Net realized gain on investment securities available-for-sale and loans decreased $2.3 million (62%) and $2.1 million (53%) to $1.4 million and $1.8 million for the three and six months ended June 30, 2012, respectively, as compared to $3.7 million and $3.9 million for the three and six months ended June 30, 2011, respectively. The decrease is primarily the result of a gain of $3.5 million related to the sale of three CMBS positions during the three months ended June 30, 2011 as compared to two CMBS positions during the three months ended June 30, 2012 for a gain of $912,000. This decline in gains was offset partially for the three and six months ended June 30, 2012 by gains on the sale of Apidos loans during the six months ended June 30, 2012 as a result of improved pricing and increased sales volume, particularly in our new CDO, Apidos CLO VIII.

Net realized gain on investment securities available-for-sale and loans decreased $2.3 million (62%) and $2.1 million (53%) to $1.4 million and $1.8 million for the three and six months ended June 30, 2012, respectively, as compared to $3.7 million and $3.9 million for the three and six months ended June 30, 2011, respectively. The decrease is primarily the result of a gain of $3.5 million related to the sale of three CMBS positions during the three months ended June 30, 2011 as compared to two CMBS positions during the three months ended June 30, 2012 for a gain of $912,000. This decline in gains was offset partially for the three and six months ended June 30, 2012 by gains on the sale of Apidos loans during the six months ended June 30, 2012 as a result of improved pricing and increased sales volume, particularly in our new CDO, Apidos CLO VIII.

As of June 30, 2012, our principal sources of current liquidity are proceeds from the sale of common stock through our DRIP and proceeds from our offering of 8.5% Series A Preferred Stock as well as funds available in exiting CDO financings of $75.3 million and cash flow from operations. For the three months ended June 30, 2012, we received $8.1 million of DRIP proceeds and $6.1 million of Preferred Stock sales proceeds, both of which are included in our $31.9 million of unrestricted cash at June 30, 2012. In addition, we have capital available through two CRE term facilities to help finance the purchase of CMBS securities and origination of commercial real estate loans of $29.9 million and $136.4 million, respectively. As of December 31, 2011, our principal sources of current liquidity were $46.6 million of net proceeds from our May 2011 offering, $83.6 million of proceeds from sales of common stock through our DRIP and funds available in existing CDO financings of $110.9 million and cash flow from operations.

As of June 30, 2012, our principal sources of current liquidity are proceeds from the sale of common stock through our DRIP and proceeds from our offering of 8.5% Series A Preferred Stock as well as funds available in exiting CDO financings of $75.3 million and cash flow from operations. For the three months ended June 30, 2012, we received $8.1 million of DRIP proceeds and $6.1 million of Preferred Stock sales proceeds, both of which are included in our $31.9 million of unrestricted cash at June 30, 2012. In addition, we have capital available through two CRE term facilities to help finance the purchase of CMBS securities and origination of commercial real estate loans of $29.9 million and $136.4 million, respectively. As of December 31, 2011, our principal sources of current liquidity were $46.6 million of net proceeds from our May 2011 offering, $83.6 million of proceeds from sales of common stock through our DRIP and funds available in existing CDO financings of $110.9 million and cash flow from operations.

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