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These risks and uncertainties are discussed in the company’s reports filed with the SEC including its reports on forms 8-K, 10-Q and 10-K and in particular, item 1-A on the Form 10-K report under the title Risk Factors. Listeners are cautioned not to place undue reliance on these forward-looking statements which speak only as the date hereof. The company undertakes no obligation to update any of these forward-looking statements.And with that, I’ll turn it back to Jonathan. Jonathan Cohen Thank you, Purvi. First, a few highlights. Adjusted funds from operations or AFFO, for the three months and year ended December 31, 2011 was $17 million, or $0.22 per share diluted and $63.9 million or $0.90 per share diluted respectively. Our GAAP net income for the three months and year ended December 31, 2011, were $413,000 or $0.01 per share diluted or $37.7 million or $0.53 per share diluted compared – respectively as compared to GAAP net loss for the three months ended December 21, 2010 of $9.4 million or $0.17 per share diluted and GAAP net income for the year ended December 31, 2010 of $19.4 million, or $0.41 per share diluted respectively, increases of $9.8 million or 104%, and $18.3 million, or 94% respectively. Total revenues increased by $9.6 million or 51%, and increased by $26.7 million or 40%, as compared to the three months in the year ended December 31, 2010. We paid a dividend of $0.25 per common share for the quarter or $20 million in aggregate on January 27, 2012, to stockholders of record as of December 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.
During the year ending December 31, 2011, Resource Capital Corp. shifted its approach to creating shareholder value from short-term or long-term thinking. When the year began, we were focused on first, the continuing overhang from the credit crisis that began in 2008.Second maximizing current returns from buying back earlier debt at a discount, and distributing as much cash to our shareholders as could be deemed responsible. And third, positioning the company for the future by building our capital base, and growing and diversifying our assets. We believe that we were successful in doing all three and that allows us to really focus in the future. As we ended the year, shareholders should take note of declining credit costs, increasing revenue, and our guidance of $0.80 to $0.90 of FFO, which means we can look to growing our dividend from a very stable and sustainable base of $0.20 per quarter. During 2011, as we began to accelerate our focus on the future, we set and met good dividend guidance, re-termed finance and the syndicated bank loans structured vehicle, we secured multiple commercial real estate lines, including a brand new, $150 million real estate loan facility, we made investments in real estate, and increase our loan origination, and we lowered to two under $67 million the amount of mezzanine loans from the pre-financial period, pre-financial crisis period. We end the year with only 4.2 times in leverage, and 1.5 times in leverage against our real estate portfolio. Our focus on the future, includes several key elevenths, we use our capital to grow our business and portfolio is, the result of this is that the massive increase in revenue year-over-year of over 40%, we also made multiple long-term investments, that we think will be booked value enhancers, read, long-term gains that have low or zero current return.
These investments include our $36 million investments alongside a private equity fund in a leasing platform, as well as the continued equity investment program in the distressed and value-add real estate. We also continue to opportunistically buy discounted structured credit as well as CMBS. All of these investments are meant to grow book value over the next few years. We believe that a capital allocation that includes both solid, well-performing, current credit-based assets along with longer-term capital appreciation investment will benefit our shareholder now and into the future.Read the rest of this transcript for free on seekingalpha.com