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Resource Capital CEO Discusses Q2 2011 Results - Earnings Call Transcript

Stocks in this article: RSO

Jonathan Cohen

Thank you Purvi. For a few highlights, we had adjusted net income of $18 million or $0.25 per share diluted and $33.7 million or $0.51 per share diluted for the for the three and six months ended June 30, 2011 respectively, as compared to $10.9 million or $0.24 per share diluted and $21.1 million or $0.51 per share diluted for the three and six months ended June 30, 2010 respectively, which is an increase of $7.1 million or 65% for the quarter and $12.6 million or 60% for the six months.

We announced a dividend of $0.25 per common share for the quarter or $18.6 million in aggregate, which was paid on July 27, 2011 to stockholders of record on June 30, 2011.

With those highlights out of the way I will now introduce my colleagues. With me today are David Blume, Senior Vice President in charge of Real Estate; David Bryant, our Chief Financial Officer; Christopher Allen, Senior Vice President of our Leverage Loan Business; and Purvi Kamdar, our Director of Investor Relations.

The second quarter of 2011 saw consistency for resource capital, but it was also a very active period in terms of moving forward with our plans. We continue to build our investment portfolio while paring some older and riskier real estate positions. In fact, we were originated more than $61 million of real estate whole loans for the quarter. This is self originated by our team, and are in the process of closing even more after June 30, a tremendous effort.

We saw an increase in our net interest income of over $2.7 million or 17% for the quarter ending June 30 versus a year ago, and $7.2 million or 25% for the six months ended June 30, 2011 versus the first six months of 2010. We sold some positions, and received over $50 million of cash from payments in sales, we impaired our last low rated 2007 fixed CMBS bond.

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