Resource America Inc. Reports Operating Results (10-K)
Resource America, Inc. operates energy and real estate finance businesses through their subsidiaries, Atlas America, Inc. and Resource Properties, Inc. In energy, they drill for and produce natural gas in the Appalachian Basin. Resource America Inc. has a market cap of $70.49 million; its shares were traded at around $3.82 with a P/E ratio of 31.83 and P/S ratio of 0.65. The dividend yield of Resource America Inc. stocks is 3.14%. Highlight of Business Operations:As of September 30, 2009 and 2008, we managed $13.7 billion and $18.0 billion of assets, respectively, for the accounts of institutional and individual investors, Resource Capital Corp., or RCC (our sponsored REIT), and for our own account in the following asset classes (in millions):
General. Through LEAF Financial Corporation, or LEAF, we focus our commercial finance operations on equipment leases and equipment-secured notes to small and mid-sized companies. Our financing is generally for “business-essential” equipment including technology, commercial, industrial and medical equipment, with a primary financed transaction size of under $500,000 and an average size of $20,000 to $75,000.
During fiscal 2009, we originated $401.0 million in commercial finance assets. As of September 30, 2009, we managed a $1.4 billion commercial finance portfolio, of which $1.2 billion were on behalf of five investment entities we sponsored.
In May 2008, we entered into a second joint venture, structured as a credit facility, with the same institutional investor, that makes available up to $500.0 million to finance the acquisition of distressed properties and mortgage loans and that has the objective of repositioning both the directly owned properties and the properties underlying the mortgage loans to enhance their value. Through September 30, 2009, the joint venture had acquired four distressed loans and two properties for an aggregate of $47.9 million and, in the first quarter of fiscal 2010, acquired an additional distressed loan for $7.2 million. On December 1, 2009, we sold our joint venture interest to RCC at its book value. We retained management of the joint venture assets and will continue to receive fees in connection with the acquisition, investment management and disposition of new assets acquired by the joint venture.
Real Estate Investment Entities. Since 2003, we have sponsored 17 real estate investment entities, all of which have commenced operations having raised $300.4 million in investor funds. The entities using a portion of these funds have acquired interests in 50 multifamily apartment complexes comprising 12,794 units with a combined acquisition cost of $609.8 million, including interests owned by third parties and excluding properties sold.
In December 2009, RCC announced that it priced a public offering of 10 million shares of its common stock at a price of $4.50 per share for expected net proceeds, after underwriting discounts and expenses, of $42.2 million.
Read the The complete ReportREXI is in the portfolios of Donald Yacktman of Yacktman Asset Management Co., Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.