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And with that I’ll turn it back to Jonathan.Jonathan Cohen Thank you Purvi. First a few highlights. Our GAAP net income was $14.9 million or $0.20 per share diluted, and $37.3 million or $0.54 per share diluted for the three and nine months ended September 30, 2011, respectively. Compared to 14.1 million or $0.27 and 28.8 million or $0.64 per share diluted for the three and nine months ended September 30, 2010, respectively. Funds from operations for the three and nine months ended September 30, 2011 was $16.2 million or $0.22 per-share diluted and 40.2 million or $0.59 per share diluted respectively. Total revenues increased by $4.3 million or 22% and $17.1 million or 35% compared to the three and nine month ended September 30, 2011 respectively. We paid a dividend of $0.25 per common share for the quarter or 19.2 million in the aggregate on October 27, 2011 to stockholders of record as of September 30, 2011. 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; David Bryant, our Chief Financial Officer; and Purvi Kamdar, our Director of Investor Relations. Resource Capital saw another quarter of growth, lower credit provisions and good cash flow. We were also very active in terms of moving forward with our plans, reaching important goals and strategic objectives. We continue to build our investment portfolio while paring some older and riskier real estate positions. In fact, we originated close to $40 million of real estate whole-loans for the quarter and into October, and are in the process of closing even more. In this same timeframe, we purchased approximately $15 million in real estate equity investments, distressed and value add. And we opportunistically converted two loans with close to $35 million outstanding into equity ownership. We sold some positions and received over $13 million of cash from repayments this quarter.
Consistent with our goal to strengthen our assets, our commercial real estate portfolio is now approximately 84% whole loans as compared to 66% a year ago. A very active quarter and one that is positioning us to obtain our goal.You will hear us talking about funds from operations as an alternative measure to look at our earnings. This change is necessary due to – is necessary as we have begun a strategy of selectively acquiring distress and value-added properties. This strategy will mean that we will have far more depreciation run through our income statement and FFO, or Funds from Operations, will back this out so an investor can have a clear perspective on how we are doing. This is another strategy to build long-term book value through appreciated investments, while maintaining strong cash flow and a high dividend. So far, in my opinion, we have excelled in this strategy. In total we own properties with approximately 10 to $15 million in equity, and expect returns in excess of 18%, including 5 to 10% cash-on-cash returns in the first year growing. We have done this through joint ventures as well as directly through our management company. Credit generally continued to improve and our provisions for loan loss has decreased significantly, nearly 70% from the prior year. We believe the credit environment is still improving for real estate, but we are certainly aware of the weaker macro situation. While credit on our legacy loans continues to improve, this part of our asset base has decreased due to the growth of our business. Read the rest of this transcript for free on seekingalpha.com