(Operator Instructions) Welcome to the Fourth Quarter 2009 Resource Capital Corp. Earnings Conference Call. I would now like to turn presentation over to your host for today’s call, Mr. Jonathan Cohen, President and CEO of Resource Capital Corp.

Thank you for joining the Resource Capital Corp. conference call for the fourth quarter and fiscal year end 2009. I am Jonathan Cohen, President and CEO of Resource Capital Corp. Before I begin, I would like to ask Purvi Kamdar, our Director of Investor Relations, to read the Safe Harbor statement.

When used in this conference call, the words, believes, anticipates, 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 8-K, 10-Q and 10-K, and in particular, Item 1 on the Form 10-K report under the title, 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. With that, I will turn it back to Jonathan.

First a few highlights, net operating income for the three months and year ended December 31, 2009, was $9.2 million or $0.32 per share diluted and $36.1 million or $1.42 per share diluted respectively as compared to $11 million or $0.44 per share diluted and $42.3 million or $1.71 per share diluted for the three months and year ended December 31, 2008, respectively. We announced a dividend of $0.25 per common share for the quarter ended December 31, 2009, or $9.2 million in aggregate paid on January 26, 2010, to stockholders of record as of December 31, 2009. Our economic book value, a non-GAAP measure was $7.91 per common share as of December 31, 2009. GAAP book value was $6.26 per common share as of December 31, 2009. With those highlights out of the way I will now introduce my colleagues. With me today are David Bloom, Senior Vice President in charge of Real Estate, and David Bryant, our Chief Financial Office, as well as Purvi Kamdar, our Director of Investor Relations. We are very pleased with where we ended 2009, unlike most or all other financial REITs certainly our star competitors and comparables, we not only survived 2009 but delivered good value in our opinion to our shareholders. We paid a cash dividend of $1.15 per share and we also conservatively positioned our balance sheet by first, paying down all our short term debt, second, raising equity and de-leveraging our balance sheet and third, stockpiling cash both on an unrestricted basis as well as within our managed securitizations. We ended the year with over $228 million of book value, no short term debt, all five of our securitizations in compliance on all significant terms, free cash of $52 million, good long term liabilities of $1.5 billion at a blended…

RCCs commercial mortgage portfolio has a current committed balance of approximately $725 million across a granular pool of 43 separate loans. Our portfolio of commercial mortgage positions is in components as follows: 64% whole loans, 25% mezzanine loans, 11% B-notes. The collateral base underlying the portfolio continues to be spread across the major asset categories and geographically diverse markets, with a portfolio breakdown of 26% multi-family, 24% office, 31% hotel, 12% retail, and 7% other such as flex office, industrial or self-storage. As of December 31, we continue to have one $7 million multi-family loan comprised of three buildings that is involved in a contested foreclosure process. However, in recent weeks, we have reached a settlement with the borrower that will give us title to two buildings and a payoff on the third for $2.5 million. The settlement is currently being documented and we remain confident about the ultimate recovery of principal in this situation because even the distressed valuation of the assets exceeds our outstanding loan balance. In addition to the one loan in foreclosure, as of January, we have a $10.5 million mezzanine loan that went into default and has not paid principal and interest when due. We have access to current appraisals for the property securing the loan which shows our loan bases to be well below the value of the properties. We are in discussions with the borrower, other mezzanine participants, and the special servicer to resolve this situation. All parties are aligned in the efforts to bring the loan current. With the exception of the loans I have highlighted, our portfolio of commercial real estate loans continue to be current. Despite the low level of delinquencies in our portfolio we remain extremely concerned about market fundamentals in general, as commercial real estate tends to lag…

I will now give you some statistics on our corporate bank loan portfolio. We have $800 million of bank loans encompassing over 30 industries. Our top industries are healthcare, diversified, broadcasting and entertainment, chemicals, and printing and publishing. As of the end of December our average loan asset yields 2.64% over Libor and our liabilities are costing us 47 basis points. We have been able to buy loans at a substantial discount over the last several months although this discount is slowly going away. Now I will ask Dave Bryant, our Chief Financial Officer to walk us through the financials.

Our estimated REIT taxable income for the fourth quarter 2009 was $9.7 million or $0.34 per common share. Our Board declared a dividend for the fourth quarter including the December 2009 offering shares of $0.25 per common share for a total of $9.2 million. This brings our full year results to $31.5 million of REIT taxable income or $1.23 on the weighted average number of common shares outstanding. We paid all of our REIT income in cash dividends. At December 31, 2009, Recourse Capital’s investment portfolio was financed with approximately $1.5 billion of total indebtedness that included $1.5 billion of CDO senior notes and $51.5 million sourced from our unsecured junior subordinated diventures related to our two TRUPs issuances in 2006. We ended the period with $228.8 million in bulk equity. RCCs borrowings of $1.5 billion had a weighted average interest rate of 1.02% at December 31, a reflection of extremely low Libor in today’s market. After paying off our three year term facility in full during 2009, and consistent with our stated philosophy of maximizing match funding, our investment portfolio is now completed match funded by long term borrowings, thus we have no short term debt. Of note, we continue to pass all of our critical interest coverage and over-collateralization tests in our two real estate CDOs and three bank loan CLOs. Each of the structures continued to perform and generated stable cash flow to our RCC in 2009. The commercial real estate CDOs produced over $33.7 million and bank loan CLOs generated over $20.5 million of cash flow in 2009 respectively to the REIT. Of note, as of February 28th we have in excess of $80 million in investable cash comprised of $32 million and $48 million in our bank and loan and real estate deals respectively. This…

Just one correction before we go on, when I was speaking about corporate bank loan portfolio, I just want to give actual statistics, I said $800 million I meant we have about $827 million of market value, $896 million of amortized costs. I wanted to clarify that. Thanks to the two Dave’s and Purvi. As I said last quarter, management’s recommendation is that unlike other REITs which have paid out stock as part of their dividends, we pay our dividend in cash. We are committed to earning and paying the $1.00 dividend as projected in 2010. With that I think we’re going to continue to build cash, position ourselves defensively to protect our book value but also try to grow our book value through de-leveraging. Certainly try to maintain and grow our cash flow. I want to thank everybody for participating in the call. Now I will open the call up to any questions.

(Operator Instructions) Your first question comes from Steve Delaney – JMP Securities Steve Delaney – JMP Securities: I had a question about the cash position which ties to your last remark, Jonathan. You were at $52 million at the end of the year and of course the dividend that you paid, the $0.25 would take a little over $9 million off of that. That leaves us at $43 million post dividend. In the release you’re indicating that as of February 28 you were carrying $29 million of cash. I’m just curious is there anything you could say, let’s just talk about now the difference between the $43 million and the $29 million of about $14 million. Can we assume that you have been able to continue to find CDO debt to acquire as you did in the fourth quarter when you invested a little over $8 million?

We have been able to find bonds in the first quarter as well, which I said we bought $20 million of bonds already. We bought $20 million and we’re targeting $40 to $60 million before the next call. Steve Delaney – JMP Securities: The $20 million was actually your cost basis or the face?

That’s the face; I’m being subtly ambiguous here because I’m still buying in that class I don’t want to talk about. We’re very, very pleased. I also want to mention that the bonds that we’ve been buying, for the most part are off the capital structure from AAA down to A for the most part. We feel like we’re getting a nice position on the top of the capital stack. Steve Delaney – JMP Securities: Your ultimate goal then $20 million and you think you have another $40 million to go you said?

We bought today $55 million including the $20 million that we bought this quarter. Its $33 million plus $20 million after.

It was $33 million in the quarter, $55 million total for 2009.

We bought another $20 million, about $53, $54 million we have about another $60 million that we’re targeting before the next $40 to $60 million before the next call. Then we’ll continue, we think we’ll bring that up another $20 or $30 million. We want to take our time and be smart about it. We have a broader strategy around managing our securitized vehicles that we’re pretty excited about but it takes a little bit more patience. Steve Delaney – JMP Securities: I want to reconcile, you gave us a summary of two impaired or problem commercial real estate assets, the two loans totaling $17.5 million. I’m looking at the table on the loan loss reserve on page 12 of the press release and it’s showing total impaired loans and leases of approximately $90 million. Can you tell me about of that $90 million how much of that is CRE loans versus bank loans? I’m trying to reconcile your $17.5 million that you cited.

The $7 million is something that defaulted quarters ago that we’re now coming to a conclusion on a negotiated settlement there; we’ll actually get back probably all of the $7 million. The defaulted loan that he talked about $10 million is the same thing they just defaulted but we’re in negotiations and we’re well covered in value. We don’t expect to have a loss from that $10 million.

The total for the bank loans in that number is about $12.7 million. The real estate is made up of two loans, the one $7 million position that Dave spoke about which is being worked out and about $66.8 million in a multi-family position that we really reserved heavily for in 2009 and then restructured and modified the loan in early 2010. It’s sort of gone from Dave’s mind because now the balance of that loan is fully supportable by the property cash flow. The rest of that number is about $2.6 million in our legacy leasing portfolio. Steve Delaney – JMP Securities: It’s fair to say of your 43 commercial real estate loans internal you’ve only currently only have two of those 43 loans classified as impaired and subject to specific reserve, is that accurate?

Correct, and one of those happened in 2010 for which Dave mentioned he has the appraisal showing us money good.

This gets very detailed. If you’d like to go into more detail just give Dave Bryant or Dave Bloom or myself a call.

Your next question comes from Gabe Poggi – FBR Gabe Poggi – FBR: I don’t know if you guys are willing to talk about this or give a number, but can you provide some semblance of where you think book value may shake out at the end of the quarter including the $20 million of purchases you guys have already made? Additional purchases you said by the 1Q10 conference call do you think that $40 to $60 million will be in the first quarter or second quarter, just more timing as that $40 to $60 million purchases.

We’re probably uncomfortable guessing where book value will be so that’s a difficult one; we haven’t planned to talk about that, a lot of moving parts. We’re buying these at substantial discounts and we’re pretty excited about where we’re finding value here on the $20 million. As far as the $40 to $60 million, as I said, it by the next call which would probably mean that some of it will fall, a good amount will fall into March quarter and then some into the April/May timetable. Gabe Poggi – FBR: How’s the purchase process been, obviously without saying too much because of who’s listening, have you been able to define what you were looking for?

I would say that since we went out and did a public offering we probably pushed prices up a little bit just by doing that. We probably just generally CMBS has moved up considerably. We found things, as you can see from our stated purchases already, which by the way we’re higher up in the capital structure for the most part. We’re finding really, really good value and we’re really excited about it. We have strategies around what we’re doing and that we think are pretty good strategies that we’re taking our time to find the right bonds. It’s not as though I couldn’t go out and build book value by buying bonds. Gabe Poggi – FBR: Can you give a refresher in the CRE book loan maturities you have coming this year? I think you had four or five that you guys had already worked to extend and what the 2011 maturities look like?

We do have maturities coming in 2010; we have worked to extend all but one which we’re in the process of now. 2011 it’s a little bit early to stark, people are just now.

We’ve got to deal with 2010 first.

I’ll say that we’re looking to hit that one more in 2010 as far as the extension goes.

At this moment I’m showing there are no questions in queue.

We want to thank everybody, our long term shareholders as well as some of the new people who entrusted us with their capital. Thank you and we will speak with you in a few months.

Thank you for your participation in today’s conference. This concludes your presentation. You may now disconnect.