PHILADELPHIA, PA — (Marketwired) — 11/05/14 — (NASDAQ: REXI)
(NASDAQ: REXI) reported adjusted net income attributable to common shareholders, a non-GAAP measure, of $2.8 million, or $0.13 per common share-diluted, and $9.7 million, or $0.44 per common share-diluted, for the three and nine months ended September 30, 2014 as compared to adjusted net income attributable to common shareholders of $4.3 million, or $0.20 per common share-diluted, and $7.2 million, or $0.33 per common share-diluted, for the three and nine months ended September 30, 2013, respectively. A reconciliation of the Company–s reported GAAP net income attributable to common shareholders to adjusted net income attributable to common shareholders, 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 $5.2 million, or $0.24 per common share-diluted, for the three and nine months ended September 30, 2014, respectively, as compared to GAAP net income attributable to common shareholders of $3.4 million, or $0.16 per common share-diluted, and $5.1 million, or $0.23 per common share-diluted, for the three and nine months ended September 30, 2013, respectively.
The following table details the Company–s gross assets under management by operating segment, which increased by $2.8 billion (17%) from September 30, 2013 to 2014 (in billions):
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 year ended December 31, 2013.
Resource Real Estate Opportunity REIT, Inc. (Opportunity REIT I), a public non-traded real estate investment trust (“REIT”) managed by the Company which specializes in acquiring and managing distressed real estate assets, had the following highlights:
Increased total assets to $955.7 million at September 30, 2014, an increase of $573.9 million, or 150%, from $381.8 million at September 30, 2013.
Acquired $128.8 million of total assets, placed $48.0 million of financing on two assets and disposed of one additional asset for $18.1 million during the three months ended September 30, 2014.
In October 2014, the Board of Directors of Opportunity REIT I–s general partner authorized a 50% increase to the annual distribution rate to 6% from 4%.
Resource Capital Corp. (“RSO”), a publicly-traded REIT managed by the Company which focuses on commercial real estate assets, had the following highlights:
In July 2014, completed a $354.0 million commercial real estate securitization that issued $235.0 million of floating-rate notes at a weighted average coupon of LIBOR plus 1.29%.
During the quarter, raised $13.7 million in equity capital through its DRIP and preferred equity programs.
Originated $144.3 million of commercial real estate whole loans during the three months ended September 30, 2014.
In October 2014, RSO–s Board of Directors authorized RSO to repurchase up to $50.0 million of its outstanding common stock.
The Company–s real estate operating segment increased its assets under management at September 30, 2014 to $3.1 billion, an increase of $915.0 million, or 43%, from September 30, 2013.
CVC Credit Partners, L.P. (“CCP”), the Company–s global joint venture, closed Apidos CLO XVIII, Ltd. (issuing notes with a par value of $700.0 million) during the quarter. In October 2014, CCP priced Apidos XIX, Ltd. (issuing notes with a par value of $500.0 million), which is scheduled to close in November 2014. Since the creation of this joint venture in April 2012, CCP has closed and/or priced 11 collateralized loan obligation issuers (issuing notes with a total par value of $5.8 billion) and expects to receive approximately $27.2 million in fees on an annual run rate basis. The Company has a 33% interest in this joint venture.
The Company–s financial fund management operating segment increased its assets under management at September 30, 2014 to $15.7 billion, an increase of $1.8 billion, or 13%, from September 30, 2013.
In August 2014, the Company modified its $10.0 million of outstanding senior notes to extend the maturity date to March 31, 2018.
The Company repurchased 665,933 of its shares during the third quarter ended September 30, 2014 at an average price of $9.42 per share. Since December 2013, the Company has repurchased 1.0 million shares at an average price of $9.31 per share under its share repurchase program.
In September 2014, the Company–s Board of Directors authorized the Company to repurchase up to an additional 1.5 million shares of its outstanding common stock.
The Company–s Board of Directors authorized a 20% increase in the Company–s cash dividend from $0.05 to $0.06 per share on the Company–s common stock paid on October 31, 2014 to holders of record as of the close of business on October 17, 2014. Since July 2013, the Company has increased its dividend by 100%.
RSO–s Board of Directors declared a cash dividend of $0.20 per common share for its quarter ended September 30, 2014.
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, for its joint ventures, and for outside investors in the real estate, financial fund management and commercial finance sectors.
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, or SEC. 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 SEC. 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 Opportunity REIT II was declared effective by the SEC on February 6, 2014. 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, consolidating statements of operations and reconciliation of GAAP net income attributable to common shareholders to adjusted net income attributable to common shareholders.