Welcome to the fourth quarter and year end December 31, 2008 Resource Capital Corp. earnings conference call. (Operator Instructions) I would now like to turn the presentation over to your host for today’s call, Mr. Jonathan Cohen, President and CEO. Please proceed.

Thank you for joining the Resource Capital Corp. conference call for the fourth quarter of fiscal year ended 2008. I am Jonathan Cohen, President and CEO of Resource Capital. Before I begin I would like to ask Purvi Kamdar, our Director of Investor Relations, to read the Safe Harbor statement.

Thank you John. When used in this conference call, the words believed, anticipate, expects and similar expressions are intended to identify forward-looking statements. Although the company believes that these forward-looking statements are based on reasonable assumptions, such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from these contained in the forward-looking statements. These risks and uncertainties are discussed in the company’s reports filed with the SEC, including its reports on Forms 8K, 10Q and 10K and in particular Item One on the Form 10K report and 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. With that, I’ll turn it back to Jonathan.

Thank you Purvi. First for a few highlights. For the quarter ended December 31, 2008 RCC reported adjusted net income, a non-GAAP measure that excludes the effect of certain non-cash charges and non-operating capital transactions of $11.1 million or $0.44 per share. For the fourth quarter and year ended December 31, 2008 estimated re-taxable income, a non-GAAP measure, was $8.3 million or $0.33 per share diluted and $39.3 million or $1.57 per share diluted respectively as compared to $11.4 million or $0.46 per share diluted and $42.4 million or $1.71 per share diluted for the fourth quarter and year ended December 31, 2007. We declared and paid a dividend of $0.39 per common share or $9.9 million for the quarter ended December 31, 2008. RCC declared and paid dividends of $1.60 per common share for total dividends paid of $40.7 million or 103% of estimated re-taxable income for the year ended December 31, 2008. Our economic book value, a non-GAAP measure, was $10.22 per common share as of December 31, 2008. Our GAAP book value was $8.04 per common share as of December 31, 2008. Given the financial environment we determined we should take a substantial provision against loan losses in our corporate bank loan portfolio. As for the bank loans we looked at the companies that we have lended to and took reserves against any loan we felt was secured by a company that may have liquidity issues within 3-6 months. We then applied a very conservative recovery rate for the loan. We reviewed our entire portfolio in doing this calculation. In doing so we reported a GAAP net loss of $0.29 per share including non-cash charges for loan and lease losses of $18.3 million. We continued to benefit from our lack of short-term liabilities, decent cash position and…

Thanks very much John. RCC’s commercial mortgage portfolio has a current, committed balance of approximately $825 million across a diverse and granular pool of 46 separate loan possessions. Our portfolio of commercial mortgages is in components as follows: 66% whole loans, 24% mezzanine loans and 10% B notes. The collateral base underlying the portfolio continues to be diversified across the major asset categories in geographically diverse markets with a portfolio breakdown of 32% multi-family, 21% office, 27% hotel, 14% retail and 6% other such as flexed office, industrial and self-storage. Our commercial mortgage portfolio continues to be current with no defaults. However, we do have concerns about market fundamentals in general and the deterioration of the broader economy having an impact on our portfolio. As you have repeatedly heard from me in previous calls during this period of lower transaction volumes our primary efforts have focused on asset management activities. We continue to be in regular, direct communication with our borrowers and have bolstered routine asset management functions which include monthly re-underwriting of property cash flows, monitoring the progress of capital expenditures, lease and other upgrade plans as well as stressing loan exit scenarios based on current property values. In the few instances where we have seen borrowers falling short of their targets we have been proactive in our approach and have worked with borrowers to understand and address issues facing their asset plans. To be clear, we are current on all of our loans and we are willing to work with borrowers who demonstrate a commitment to their properties and are in need of assistance based upon underlying property issues that we can identify. While we have not had any payment defaults which have resulted in non-performing loan situations we have had borrowers who have delayed the lease up…

Thanks Dave. I want to reiterate that we are true believers in our stock and have bought back shares of our company as recently as last quarter. Before I go into that I would like to just step back and talk about our corporate bank loans portfolio which I know some people would like to have more information on. I will give you some statistics on the bank loan portfolio. We have $946 million of bank loans encompassing over 30 industries. Our top industries are healthcare, diversified, chemicals, printing and publishing and broadcasting and entertainment. As of the end of December our average loan asset yields 2.38% over LIBOR and our liabilities are costing us 47 basis points over LIBOR. We have been able to buy loans at a substantial discount over the last several quarters and continue to see lots of opportunity. This in essence helps us build back par within our collateralized loan obligations. Now I will ask Dave Bryant, our CFO, to walk us through the financials.

Thank you Jonathan. I will now cover some financial highlights for the year ended December 31, 2008. Our estimated re-taxable income for the fourth quarter was $8.3 million or $0.33 per common share. For the fourth quarter in 2008 our board declared a dividend of $0.39 per share for a total of $9.9 million. This brings our year-to-date results to $39.3 million for re-taxable income or $1.57 per common share with an associated dividend of $1.60 for a payout ratio of approximately 103%. At December 31, 2008 RCC’s investment portfolio was financed with approximately $1.7 billion of total indebtedness and included $1.5 billion of CDO senior notes, $95.7 million outstanding under a secured term facility and $17 million in a 3-year non-recourse commercial real estate repurchase facility and a nominal $90,000 in other repurchase agreements. We also have $51.5 million sourced from our unsecured junior subordinated debentures related to our two Trups issuances in 2006. We ended the period with $203.9 million in book equity. RCC’s borrowings of $1.7 billion had a weighted average interest rate of 2.57% at December 31, 2008. Our investment portfolio is 91% match funded by long-term borrowings and 9% from term borrowings with a weighted average remaining life of 15 months with some extension options beyond that timeframe. Of note we continue to pass the critical interest coverage and over-collateralization tests in our two real estate CDO’s and our three bank loan CLO’s. Each of these structures continues to perform and generate stable cash flow to Resource Capital year-to-date in 2009 as expected. Our non-recourse commercial real estate repurchase facility has $17 million outstanding with approximately $42.9 million in collateral pledged against that facility for a modest advance rate of approximately 39%. We consider leverage ratio from two positions. As John noted our economic book…

Thanks Dave. Again I want to reiterate that we are true believers in our stock and we did buy back shares last quarter. We believe that the value is substantial here in the portfolio and our job is to go after it and make sure that we realize it for our shareholders. Management’s recommendation going forward is unlike other rates which have paid out stock as part of their dividend our intention is to pay in cash at least in the near future. Of course this is subject to the board’s approval. We have fine liquidity and will continue to build cash which will of course enable us to come through with our promises and position ourselves defensively to protect our book value over $8 and our cash flow. With that I will ask the operator to open it up for any questions that anybody might have.

(Operator Instructions)

Well thank you very much and we look forward to speaking with you next quarter. Thank you.