Slide 1: Resource Capital Corp.
Exhibit 99.1 Resource Capital Corp. August 2012
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are not historical facts but rather are based on our current beliefs, assumptions and expectations. These beliefs, assumptions and expectations can change as a res
Slide 3: Business Overview
Business Overview Exchange / Ticker NYSE: "RSO" Business Structure REIT Market Capitalization(1) $493.8 million Investment Portfolio(2) $2.3 billion Dividend paid last quarter $0.20/share Dividend Guidance for 2012 $0.80/share Recourse Debt / Total Equity 20.9% (3) External Manager Resource America,
Slide 4: Resource Capital Corp. Overview
Resource Capital Corp. Overview Ø RSO is a commercial finance business structured as a REIT with substantial focus on commercial real estate mortgage investments as well as commercial loans and leases Ø Approximately $2.3 billion in assets as of June 30, 2012 PREFERRED COMMERCIAL REAL BANK LOANS INV
Slide 5: RSO Highlights Since the Financial Crisis
RSO Highlights Since the Financial Crisis Ø Cleaned up balance sheet and brought leverage down from a high of 10.0x to 3.7x as of June 30, 2012 Ø Maintained a cash dividend throughout the downturn and paid $5.97 in cash dividends since June 2007 Ø Increased and diversified investments in real estate
Slide 6: Powerful and Established Core Platform
Powerful and Established Core Platform CORPORATE LENDING & REAL ESTATE TEAM COMMERCIAL FINANCE TEAMS Ø Dedicated team of 12 professionals led by Dave Bloom Ø The corporate loan team has 15 professionals led by bolstered by 35 additional professionals at Resource Gretchen Bergstresser bolstered by 15
Slide 7: Business Portfolios
Business Portfolios Commercial Real Estate Leverage Loans Other Credit Opportunities • Commercial Mortgages • Preferred equity stake • Senior Whole loans • Corporate Bank Loans in Leasing JV • Mezzanine loans covering a wide array of Types of Assets • Proprietary Structured • CMBS industries and ABS
Slide 8: Commercial Mortgage Market
Commercial Mortgage Market Ø In the last two years the CMBS market re-emerged and after some early pull- backs, it has stabilized and is seeing year over year growth § Although there are fewer conduit programs, CMBS lenders are actively quoting deals § Leverage amounts, pricing and terms have all ch
Slide 9: Real Estate Loan Parameters
Real Estate Loan Parameters Bridge Financing - Acquisition and Refinance Ø RSO’s two CDOs reached their respective reinvestment cutoffs fully invested; new loans are being term financed on a $150 million financing facility with Wells Fargo Bank Ø Since the beginning of 2012, RSO has closed seven new
Slide 10: Additional CRE Activities
Additional CRE Activities Ø Starting in early 2011 and continuing into Q2-2012, RSO has been very active buying highly rated CMBS - aggregate CMBS purchases in 2011 and through Q2-2012 totaled $141.3 million Ø $100 million term CMBS facility and an additional CMBS repurchase facility with Wells Farg
Slide 11: Corporate Loan Market and Portfolio
Corporate Loan Market and Portfolio Ø Corporate credit fundamental picture is healthy § Default rates are low and are projected to stay low § Leverage multiples are staying intact Ø New Issue CLO activity § Better performing managers have access to the market again Ø Through RCAM, a subsidiary of RS
Slide 12: RSO's Targeted Investment in Specialty Commercial Finance
RSO’s Targeted Investment in Specialty Commercial Finance Ø A private equity firm, Eos Partners, L.P., invested $50 million in LEAF Commercial Capital (“LCC”), which operates an equipment lease and note origination, servicing and financing business, and received 50,000 shares of Series A Preferred S
Slide 13: Clean Balance Sheet
Clean Balance Sheet Leverage Since 12/31/08 CDO Compliance Maturing Debt Open Market Repurchases Ø All RSO structured finance Ø Only short-term debt matches Ø During FY 2010, RSO repurchased vehicles continue to pay all funding of AAA CMBS purchases $46.9 million of its CDO notes at a classes accord
Slide 14: RSO Highlights
RSO Highlights Ø Maintained a cash dividend and paid $9.12* in dividends since inception in March 2005 Ø Powerful core platforms and established management teams in real estate, corporate lending and commercial finance Ø Cleaned up balance sheet and brought leverage down from a high of 10.0x to 3.7x