Resource Capital (RSO) Reports Q3 FFO of $0.42; Non-CRE Businesses Being Reported as Discontinued Operations

November 14, 2016 6:38 AM EST

Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.

Resource Capital (NYSE: RSO) reported Q3 FFO of $0.42, versus $0.44 reported last year.

  • On September 8, 2016, Resource America, Inc., the parent company of Resource Capital Corp.'s ("RSO" or the "Company") external manager, was acquired by C-III Capital Partners LLC ("C-III"), a leading commercial real estate investment management and services company engaged in a broad range of activities. In conjunction with the closing, Robert C. Lieber has succeeded Jonathan Z. Cohen as Chief Executive Officer and President of RSO. Andrew L. Farkas and Jeffrey P. Cohen joined the board of directors, replacing Edward E. Cohen and Jonathan Z. Cohen, who have stepped down.
  • In November, the board of directors approved a strategic plan (the "Plan") that will allow RSO to focus on making commercial real estate ("CRE") debt investments. The Plan will include exiting underperforming non-CRE businesses and investments, disposing of certain underperforming legacy CRE debt investments and establishing a dividend policy based on sustainable earnings.
  • As part of the Plan, certain non-CRE businesses and investments and certain underperforming legacy CRE debt investments will be reclassified as held for sale during the fourth quarter of 2016. This reclassification will result in certain non-CRE businesses being reported as discontinued operations, and impairments of $11.0 million to $14.0 million to the fair values of those assets and liabilities are expected in the fourth quarter.
  • RSO's board of directors anticipates that it will declare a cash dividend of $0.05 per share on its common stock for the fourth quarter of 2016 and for each of the four quarters of 2017.

For earnings history and earnings-related data on Resource Capital (RSO) click here.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Corporate News, Earnings, Management Changes

Related Entities

Earnings

Add Your Comment