PHILADELPHIA, PA — (Marketwired) — 08/07/13 — (NASDAQ: REXI) reported adjusted income from continuing operations attributable to common shareholders, net of tax, a non-GAAP measure, of $3.2 million, or $0.15 per common share-diluted, and $8.5 million, or $0.39 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2013 as compared to an adjusted loss from continuing operations attributable to common shareholders, net of tax, of $496,000, or $0.03 per common share-diluted, and $8.0 million, or $0.41 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2012. A reconciliation of the Company-s reported GAAP income (loss) from continuing operations before taxes to adjusted income (loss) from continuing operations attributable to common shareholders, net of tax, a non-GAAP measure, is included as Schedule I to this release.
The Company reported GAAP net income attributable to common shareholders of $1.5 million, or $0.07 per common share-diluted, and $819,000, or $0.04 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2013 as compared to GAAP net income attributable to common shareholders of $30.2 million, or $1.44 per common share-diluted, and $28.1 million, or $1.37 per common share-diluted, for the third fiscal quarter and nine months ended June 30, 2012. Included in GAAP net income attributable to common shareholders for the third fiscal quarter and nine months ended June 30, 2012, was a $34.5 million and $40.0 million gain, net of tax, respectively, on the deconsolidation and sale of the Company-s credit loan manager and commercial finance subsidiary.
Jonathan Cohen, CEO and President, commented, “We are pleased with the solid results of our third fiscal quarter and our current position. During the quarter we increased assets under management to $16.1 billion from $15.0 billion a year ago. In our Real Estate Asset Management businesses, we raised a record $209 million of capital. In our Credit Asset Management businesses, CVC Credit Partners — our joint venture with CVC Capital — closed a $456 million listed fund (LSE: CCPE) (LSE: CCPG) as well as another $523 million CLO. We continue to work to grow and expand our existing businesses and to add new products to fuel additional growth, such as our Real Estate Diversified Income Fund, our first mutual fund product which launched at the very end of the second quarter. With increasing AUM, positive operating earnings, great products and a strong balance sheet we think we are in a very good position looking forward.”
The following table details the Company-s assets under management by operating segment, which increased by $1.1 billion (7%) from June 30, 2012 to June 30, 2013:
A description of how the Company calculates assets under management is set forth in Item 1 of the Company-s Annual Report on Form 10-K for the fiscal year ended September 30, 2012.
Resource Real Estate Opportunity REIT, Inc, a public non-traded REIT managed by the Company, specializing in acquiring and managing distressed real estate assets, had the following highlights:
Raised a record $74.2 million during the third fiscal quarter ended June 30, 2013. Subsequent to quarter end, raised a record $33.0 million in total equity capital for the month ended July 31, 2013.
Increased total assets to $288.8 million at June 30, 2013, an increase of $155.4 million, or 116%, from June 30, 2012. Highlights for the third fiscal quarter ended June 30, 2013:
Acquired three multifamily rental apartment properties totaling $45.8 million located in Hoover, AL, Spring, TX and Winter Park, FL.
Sold one multifamily rental apartment property in Birmingham, AL for $10.3 million.
In July 2013, entered into an agreement to acquire 10 multifamily assets totaling 2,513 units and two office properties that contain 75,518 rentable square feet for $52.7 million.
Resource Capital Corp. (“RSO”), a publicly traded REIT managed by the Company, focusing on commercial real estate assets, had the following highlights:
Raised $134.6 million in equity capital, including $114.6 million, net of underwriting discounts and expenses, in connection with the April 2013 public offering of 18.7 million shares of its common stock at a price of $6.33 per share.
Increased total equity capital managed, including preferred equity, at June 30, 2013 to $821.9 million, an increase of $293.8 million, or 56%, from June 30, 2012.
Closed $91.3 million of new whole loans during the three months ended June 30, 2013.
Resource Real Estate Management, Inc., the Company-s property management subsidiary, increased the apartment units it manages to 19,010 units (at 65 properties) as of June 30, 2013 from 17,897 units (at 61 properties) as of June 30, 2012.
The Company-s real estate operating segment increased its assets under management at June 30, 2013 to $1.9 billion, an increase of $193.0 million, or 11%, from June 30, 2012.
Real estate revenues increased 11% and 25% to $12.2 million and $36.6 million for the third fiscal quarter and nine months ended June 30, 2013, respectively, as compared to $10.9 million and $29.3 million for the third fiscal quarter and nine months ended June 30, 2012, respectively.
CVC Credit Partners, L.P. (“CCP”), the Company-s global joint venture with CVC Capital Partners SICAV-FIS, S.A. (“CVC”) completed the following transactions:
Closed Apidos CLO XII (par value $523.0 million) and Apidos CLO XIV (par value $617.0 million) in April and July 2013, respectively. In connection with these Collateralized Loan Obligations, CCP expects to receive approximately $5.2 million annually in asset management fees in the future.
In June 2013, completed a public offering of CVC Credit Partners European Opportunities Limited, an investment vehicle providing investors access to the sub-investment grade European debt markets. The offering raised Euro 174.7 million and Sterling 150.8 million before transaction fees and expenses. Euro denominated shares will trade under the symbol “CCPE” and Sterling denominated shares will trade under the symbol “CCPG”, both on the London Stock Exchange.
The Company-s financial fund management operating segment increased its assets under management at June 30, 2013 to $13.6 billion, an increase of $0.9 billion, or 7%, from June 30, 2012.
The Company-s Board of Directors authorized the payment on July 31, 2013 of a $0.03 cash dividend per share on the Company-s common stock to holders of record as of the close of business on July 19, 2013.
RSO-s Board of Directors declared a cash dividend of $0.20 per common share for its second fiscal quarter ended June 30, 2013.
Resource America, Inc. is a specialized asset management company that uses industry specific expertise to evaluate, originate, service and manage investment opportunities for its own account and for outside investors in the real estate, financial fund management and commercial finance sectors as well as our joint ventures.
For more information, please visit our website at or contact investor relations at .
Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. The Company-s actual results, performance or achievements could differ materially from those expressed or implied in this release and its other reports filed with the Securities and Exchange Commission. For information pertaining to risks relating to these forward-looking statements, reference is made to the section “Risk Factors” contained in Item 1A of the Company-s Annual Report on Form 10-K and in other of its public filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements to reflect new or changing information or events except as may be required by law.
A registration statement relating to securities offered by RRE Opportunity REIT was declared effective by the SEC on June 16, 2010. A written prospectus relating to these securities may be obtained by contacting Resource Securities, Inc., 1845 Walnut Street, 18th Floor, Philadelphia, PA 19103.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
The remainder of this release contains the Company-s unaudited consolidated balance sheets, consolidated statements of operations and consolidated statements of cash flows and reconciliation of GAAP income (loss) from continuing operations before taxes to adjusted income (loss) from continuing operations attributable to common shareholders, net of tax.