Resource Capital Corp., Q2 2010 Earnings Call Transcript
And with that I will turn it back over.
Thank you, Purvi. First, for a few highlights. For the three and six months ended June 30 th, 2010, we had net income of $0.30 and $0.36 per share diluted respectively, and for the three and six months ended June 30 th, 2010, we had retaxable income of $0.30 and $0.55 per share diluted respectively.We announced a dividend of $0.25 per common share for the quarter ended June 30 th, 2010, or $12.8 million in aggregate paid on July 27 th, 2010, to stockholders of record as of June 30 th, 2010. GAAP booked value was $5.92 per common share as of June 30 th, 2010. With those highlights out of the way I will now introduce my colleagues. With me today are David Bloom, Senior Vice President in charge of Real Estate Lending; and David Bryant, our Chief Financial Officer; as well as Purvi Kamdar, our Director of Investor Relations. The Q2 of 2010 was marked by many positive events, including first we completed a public offering of 8,625,000 shares with net proceeds of approximately $42.8 million. Second, we repurchased $36.1 million par value of our real estate CDO debt at a discount of 45%. Of note, since the quarter end we’ve purchased $20 million par value of our CDO debt at a discount of 31%. These were the AAA’s. Third, we deployed by mid July, including commitments, most of the capital from our public offering. Fourth we saw our watch list, or impaired list as laid forth in our press release each quarter and today, drop to 6.5% of our portfolio from 9.5% one year ago, a marked improvement in credit. And fifth, we purchased a large portfolio of leases and loans with term financing, with estimated GAAP returns of 18%. We are excited about where the balance sheet ended this quarter, specifically as it relates to our real estate finance portfolios, which saw leverage fall to a meager 1.7 times. While we continue to build our cash position as our investment update press release indicated a week or so ago, we have started to deploy that cash and will continue to do so. This deployment’s high rates, especially inside the CDOs, will augment our already-growing net interest margin, which grew by over $3 million in the Q2 of 2010 when compared to the Q2 of 2009.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV