Exhibit 99.1
Resource America, Inc.
(NASDAQ: REXI)
and
Resource Capital Corp
(NYSE: RSO)
Piper Jaffray
2006 Financial Services Conference
Safe Harbor
WHEN USED IN THIS CONFERENCE, THE WORDS “BELIEVES”,
“ANTICIPATES”, “EXPECTS” AND SIMILAR EXPRESSIONS ARE
INTENDED TO IDENTIFY FORWARD LOOKING STATEMENTS.
SUCH STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND
UNCERTAINTIES, WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER
MATERIALLY.
THE RISKS AND UNCERTAINTIES ARE DISCUSSED IN OUR 2004
ANNUAL REPORT ON FORM 10-K; PARTICULARLY THE SECTION TITLED
RISK FACTORS. LISTENERS ARE CAUTIONED NOT TO PLACE UNDUE
RELIANCE ON THESE FORWARD LOOKING STATEMENTS, WHICH
SPEAK ONLY AS OF THE DATE HEREOF.
THE COMPANY UNDERTAKES NO OBLIGATION TO UPDATE ANY OF
THESE FORWARD LOOKING STATEMENTS OR TO PUBLICLY RELEASE
THE RESULTS OF ANY REVISIONS TO FORWARD LOOKING
STATEMENTS, WHICH MAY BE MADE TO REFLECT EVENTS OR
CIRCUMSTANCES AFTER THE DATE HEREOF OR TO REFLECT THE
OCCURRENCE OF UNANTICIPATED EVENTS.
RESOURCE AMERICA, INC.
(NASDAQ: REXI)
Resource America is a specialized asset
management company that uses industry
specific expertise to generate and
administer investment opportunities for its
own account and for outside investors in
the financial fund management, real estate
and equipment leasing sectors.
Resource America, Inc.
Resource America, Inc.
____________________________________
(1)
As of March 17, 2006.
(2)
Approximate amount as of February 28, 2006.
(3)
Includes CDOs closed in March 2006.
Public Offering:
1996
Market Capitalization: (1)
$340 million
Assets Under Management: (2)
$9.3 billion
Number of CDOs / Assets Managed: (3)
15 / $6.35 billion
Number of Equity Partnerships/
22 /
Equity Under Management (1)
$290 million
Resource Capital Corp. Assets Managed: (2)
$1.9 billion
Investment professionals: (2)
62
Continuing a Transformation
Resource America is transforming itself from a
Company managing assets for its own account to a
specialized asset manager.
Completed the spin-off of Atlas America in June 2005.
Selling low yielding legacy real estate.
Purchased 765,146 shares (4.3% of outstanding) since July
2005 for $13.5 million.
Building asset managers
Apidos, Ischus, Trapeza, LEAF, Resource Real Estate
Leverage success of multi-product asset management.
Private equity
Private REIT
Hedge fund
Resource Capital Corp.
Core competencies
Financial Institutions – 9 CDOs / Private Equity
Asset-Backed Securities – 4 CDOs / Agency Portfolio
Syndicated Loans – 3 CLOs *
Real Estate – Legacy assets / 5 private limited partnerships / 3 investment offerings / Commercial Real Estate
Debt – Resource Capital Corp
Scalable, fee-based model
Generating investment opportunities for its own account
and third party investors
Existing teams in place / marginal costs to add assets under management
Unique capital raising channels
Approximately $430 million of equity raised for new products in CY 2005
Broker dealer network / CDO investor network / high net worth individuals / institutions
Exceptional asset origination capabilities
Approximately $4.0 billion originated in CY 2005.
Direct origination / Indirect origination / channel origination
Resource America, Inc.
* Includes a $280 million CLO currently in the marketing stage
Experience Creating Value
for Shareholders *
* Adjusted for spin-off of Atlas America
Share Price Including
Performance of Atlas America *
* Assumes a REXI shareholder received .59 shares of ATLS on June 30, 2005
* Excludes Atlas America, Inc.’s assets under management.
Pro Forma* Assets
Under Management
* Excludes Atlas America, Inc.’s revenue.
Pro Forma* Revenue
* Excludes Atlas America, Inc.’s operating income.
Pro Forma* Operating Income (Loss)
* Excludes Atlas America, Inc.’s income from continuing operations.
Pro Forma* Income (Loss)
from Continuing Operations
LEAF Financial
Originates and manages small-ticket equipment leasing assets
Originates leases by forming strategic marketing alliances with a broad
range of equipment vendors
Assets under management: $463 million
Resource Real Estate
Acquires and manages real estate assets
Utilizes a targeted multifamily acquisition strategy leveraging deep
relationships in the industry across the United States
Assets under management: $685 million*
Resource Financial Fund Management
Originates and manages assets for CDOs, such as Trust Preferred
Securities, Asset Backed Securities and Leveraged Loans
Leverages relationships with financial institutions, regional investment
banks and others in the space
Assets under management: $8.2 billion
Exclusive Asset
Origination Networks
* Includes $277 million managed through funds, $237 million from legacy portfolio and $171 million managed for RCC.
Balance Sheet Overview
17,856
17,856
Outstanding shares
$ 10.60
$ 10.60
Book value per share
Low
Yielding
189,298
189,298
Pro Forma Stockholders’ Equity
34,167
34,167
Other net assets
15,000
15,000
Investment in RCC
11,876
11,876
Net leasing assets
11,079
11,079
Investment in CDOs
48,402
70,732
Real estate loans & ventures
68,774
46,444
Total net current assets
3,647
3,647
Other net current assets
$ 65,127
$ 42,757
Cash
Pro Forma
For Asset Sales
Actual
December 31, 2005
History of creating value in areas of core competence
Extensive capability creating investment opportunities
By originating income-producing long-term assets
Demonstrated success raising capital through exclusive channels
Fee business with contractual long-term revenue streams
Continued transformation to specialized asset
management
Summary
RESOURCE CAPITAL CORP
(NYSE: RSO)
Resource Capital Corp.
Resource Capital Corp. is a specialty
finance company that intends to qualify
and will elect to be taxed as a real estate
investment trust. Our investment strategy
focuses on real estate-related assets and,
to a lesser extent, higher-yielding
commercial finance assets.
Resource Capital Corp.
(1) As of March 17, 2006
144A Offering – March 2005:
$214.8 million
Initial Public Offering – February 2006
$27.6 million
Market Capitalization (1)
$256.2 million
Investment Portfolio
$1.9 billion
Externally managed by a subsidiary of Resource America, Inc.
Dividends Declared – 3/8/05 – 12/31/05
$0.86 per share
1st Quarter 2006 Dividend
$0.33 per share
Investment Management
Integration of Financial and Commercial Real
Estate Lending Platforms
Disciplined Credit Culture With Proven Results
Avoidance of Interest Rate Risk
Ability to Generate Transactions through Internal
Network
Flexibility in Adapting to Changing Economic
Environments
In a Challenging Market Environment, RCC Has
Consistently Delivered on Plan Since Inception
Experienced Management Team with Long
Track Record of Public Company Value
Creation
Asset-Liability Management
RCC actively manages the interest rate and mark-to-market risk
associated with its investments
Agency portfolio is financed through repurchase agreements and hedged
with $736 million of interest rate swaps
Non-agency RMBS, Commercial Real Estate-Related Assets, and
Syndicated Bank Loans are match-funded via permanent CDO funding
Closed 2 CDOs in 2005 to finance $750 million of MBS and Bank Loans
2 CDOs currently planned to finance approximate $650 million of commercial
real estate loans and bank loans
Equity Allocation
Equity Allocation - Current
Equity Allocation - Target
Target Investment Profile
Current equity investment portfolio of approximately $700 million
More than 6,000 apartment units
1.6 million sq. ft. of commercial space
Current commercial real estate debt portfolio of $205 million
and commitments for another $100+ million
Loan
Criteria
$5-30 million per commitment
B notes - 60-80% LTV
Mezzanine Loans - 70-85% LTV
Typically 3-5 year term
Floating rate, LIBOR-indexed
Newly originated
Collateral
Type
National, with focus on underserved markets
Multifamily / Condominium
Office
Retail
Hospitality
Industrial
Borrower
Strong balance sheet
Meaningful equity in transaction
Strong management team
Experienced in
industry/market
Commercial Real Estate
Case Study: 1821 Directors Blvd.
Overview:
$7 MM B Note Participation
Austin, TX is a strategic target
market for RRE equity fund
business
Well located property in a dynamic
and growing submarket
Highlights:
Existing relationship with borrower
Acquisition financing with substantial new
equity in deal
Fully leased to an investment grade
tenant
Controlling rights within 1st mortgage
RCC Real Estate Team
As in its other businesses, Resource America has developed a strong team with
extensive experience in the commercial real estate sector:
Edward E. Cohen
Chairman
Jonathan Z. Cohen
President & CEO
David E. Bloom
President,
Resource Real
Estate
Former SVP of Colony
Capital
Former Director of
Sonnenblick-Goldman
Steven J. Kessler
CFO
John R. Boyt
VP, Director of Loan
Originations
Resource America
Senior Management
Resource Real
Estate Funding
Formerly with Bear,
Stearns
and Bankers Trust
6 Additional Professionals Dedicated to
Commercial Real Estate Lending
Resource Real
Estate
16 Additional Professionals Dedicated
to Commercial Real Estate
Property Acquisitions and Asset Management
Investment Highlights
Integration of Financial and Commercial Real Estate
Lending Platforms
Disciplined Credit Culture With Proven Results
Active Management of Interest Rate Risk
Ability to Internally Generate Transactions
Flexibility in Adapting to Changing Economic
Environments
In a Challenging Market Environment, RCC Has
Consistently Delivered on Plan Since Inception
Experienced Management Team with Long Track
Record of Public Company Value Creation