Jonathan CohenThank you Purvi. First for a few highlights. For the three months ended March 31 st 2011 we had adjusted net income of $15.7 million or $.26 per share diluted as compared to $10.1 million or $.27 per share diluted for the 3 months ending March 31 st 2010. Estimated REIT taxable income for the three months ended March 31 st 2011 was $8.6 million or $.14 per share diluted as compared to $9.3 million or $.24 per share diluted for the three months ended March 31 st 2010. We announced a dividend of $.25 per common share for the quarter or $17.6 million in aggregate, which was paid on April 28 th 2011 to stockholders on record on March 31 st 2011. Book value increased to $6.08 per common share as of March 31 st 2011, an increase of almost 2% since December 31 st 2010. With those highlights out of the way I will not introduce my colleagues. With me today are David Blume our Senior Vice President in charge of Real Estate Lending, David Bryant our Chief Financial Officer, Christopher Allen our Senior Vice President of our Leverage Loan Business and Purvi Kamdar our Director of Investor Relations. In my opinion Q1 2011 saw great improvement in the outlook for Resource Capital. We saw an increase in our net interest income of over 35% and revenues grew by more than 50% compared to last year at the same time. We made significant investments and restarted our commercial mortgage origination platform. We are truly a new company. Including those loans that we are committed to sell, we have strong real estate loans that we are committed to sell. We have shrunk our pre-2008 real estate B-noted Mezzanine loan exposure to under $137 million from a peak of $312 million in December of 2007. We are extremely well capitalized, have access to all types of liquidity and are prepared to grow.
With these results and with our new investments I reiterate, as I have many times before, that we are dedicated to a $1.00 cash dividend for 2011. We as managers and shareholders are working hard to build a company that can both pay a substantial dividend and increase shareholder value by building and growing businesses and business platforms.During the quarter we took the opportunity to sell two more large legacy subordinate loan positions, over $40 million of real estate loan balance, continuing our reduction of exposure to the subordinate positions originated before the financial crisis. Although we believe that these loans will be collectible, they were subordinate to much larger loans and exposed us to potential binary risks. So we considered it prudent to pair back those positions and focus our capital on new investments. In doing so we took a loss of $2 million as recorded this quarter. We maintained our general reserves for real estate loans and have a $10.5 million balance at the end of the quarter. Q1 of 2011 was marked by many positive events including earning $.26 of adjusted net income with over $200 million of cash on hand doing that and making new investments of over $60 million into commercial real estate loans, our syndicated bank loan business and commercial finance. All areas were able to achieve projected pre-tax returns on those investments of 12% to 25% on new dollars invested. Finally and in some ways most importantly we put into overdrive our newly restarted commercial real estate mortgage business. It had begun to put out the massive cash balances we have been carrying over the last year or two. We expect to finalize new lines of credit for this business within the next few weeks. Read the rest of this transcript for free on seekingalpha.com