Good day, ladies and gentlemen, and welcome to the Q2 2010 Resource Cap Corp. earnings conference call. My name is Michelle and I will be your operator for today. (Operator instructions.) As a reminder, this conference is being recorded for replay purposes. I will now turn the presentation over to your host for today’s conference, Mr. Jonathan Cohen, President and CEO of Resource Capital Corp. Please proceed.

Thank you for joining the Resource Capital Corp conference call for the Q2 of 2010. 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.

Thank you, Jonathan. When used in this conference call, the words “believe,” “anticipate,” “expect,” 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 can cause actual results to differ materially from those 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 #1 on the Form 10K report under the title “Risk Factors.” Investors are cautioned not to place undue reliance on these forward looking statements, which speak only of the date hereof. The company undertakes no obligations to update any of these forward-looking statements. And with that I will turn it back over.

Thank you, Purvi. First, for a few highlights. For the three and six months ended June 30th, 2010, we had net income of $0.30 and $0.36 per share diluted respectively, and for the three and six months ended June 30th, 2010, we had retaxable income of $0.30 and $0.55 per share diluted respectively. We announced a dividend of $0.25 per common share for the quarter ended June 30th, 2010, or $12.8 million in aggregate paid on July 27th, 2010, to stockholders of record as of June 30th, 2010. GAAP booked value was $5.92 per common share as of June 30th, 2010. 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 Lending; and David Bryant, our Chief Financial Officer; as well as Purvi Kamdar, our Director of Investor Relations. The Q2 of 2010 was marked by many positive events, including first we completed a public offering of 8,625,000 shares with net proceeds of approximately $42.8 million. Second, we repurchased $36.1 million par value of our real estate CDO debt at a discount of 45%. Of note, since the quarter end we’ve purchased $20 million par value of our CDO debt at a discount of 31%. These were the AAA’s. Third, we deployed by mid July, including commitments, most of the capital from our public offering. Fourth we saw our watch list, or impaired list as laid forth in our press release each quarter and today, drop to 6.5% of our portfolio from 9.5% one year ago, a marked improvement in credit. And fifth, we purchased a large portfolio of leases and loans with term financing, with estimated GAAP returns of 18%. We are excited about where the balance sheet ended this quarter, specifically…

Thanks, Jonathan. Resource Capital Corp’s commercial mortgage portfolio has a current committed balance of approximately $692 million across a granular pool of 42 separate loans. Our portfolio of commercial mortgage positions is in components as follows: 65% whole loans, 27% mezzanine loans, and 8% B-notes. The collateral base underlying the portfolio continues to be spread across the major asset categories in geographically-diverse markets with a portfolio breakdown of 26% multi-family, 22% office, 33% hotel, 12% retail, and 7% other, such as industrial, self-storage, and flexed office. We have had a $7 million multi-family loan comprised of three buildings in default. The loan has been settled and approved by the court. For the terms of the settlement we will be receiving title to two of the buildings and a payoff of $2.5 million for a release of the third building. The settlement is expected to close within the next month and we remain confident about our recovery of principal in this situation. We continue to have a $10.5 million mezzanine loan in default that has not paid principal and interest since January. There have been extensive settlement negotiations with the borrower and other mezzanine participants and a special servicer, and terms have been reached for a settlement. The settlement needs to be documented but by its terms the borrower will be committing fresh equity to the deal and our position will be brought current. The cash flow from the properties securing the loan covers debt service, but through a technicality cash flow is being trapped at the senior lender. Current appraisals for the properties securing the loan show our loan basis to be well below the value of the properties so we are confident about the ultimate recovery of principal in this position. In addition to the multi-family loan that has…

Thanks, Dave. I will now give you some statistics on our corporate bank loan portfolio. As I stated earlier we have syndicated bank loans of approximately $914 million in amortized costs encompassing over 30 industries. Our top industries now are healthcare (12%), diversified (9%), broadcasting and entertainment (7.5%), chemicals (5%), and printing and publishing (5%). As of the end of June our average loan asset yields 270 basis points over LIBOR and our liabilities are still costing us 47 basis points over LIBOR. Now I will ask Dave Bryant, our Chief Financial Officer, to walk us through the financials.

Thank you, Jonathan. Our estimated retaxable income for the Q2 2010 was $13.4 million or $0.30 per common share. Our Board declared a cash dividend for the Q1 of $0.25 per common share, for a total of $12.8 million. This brings our year-to-date results to $22.7 million of retaxable income, all of which has been paid out as a dividend. At January 30th, 2010, RCC’s investment portfolio was financed with approximately $1.6 billion of indebtedness, that included $1.3 billion of CDO senior notes, approximately $110 million of leased equipment backed securitized notes, and $51.5 million sourced from our two trust issuances in 2006. We ended the period with $301.8 million in booked equity and RCC’s borrowings of $1.6 billion had a weighted average interest rate of 1.43% at June 30th, 2010, a continuation of low LIBOR. Consistent with our stated philosophy of maximizing match funding, our investment portfolio is completely match funded by long-term borrowings and thus we have no short-term borrowings. We continue to pass all of the critical coverage and over-collateralization tests in our two real estate CDOs and three bank loan CLOs. Each of the structures continue to perform and generate stable cash flow to RCC year-to-date in 2010. The CRE CDOs produced over $13.1 million and bank loan CLOs generated over $10.6 million cash in the six months ended June 30th, 2010 for the re. Of note, as of July 31st, 2010, we have in excess of $103 million in invsetable cash, comprised of $21 million and $82 million in our bank loans and real estate deals respectively. This cash is available for reinvestment in our CLOs and CDOs to build collateral, generate returns, and strengthen our positions in each structure. As an example, during the six months ended June 30th we bought an investment grade…

Thank you, Dave and Dave. Our basic strategy continues to be to position ourselves defensively to protect our booked value and even build booked value, and certainly to protect our cash flow and build our cash flow so that one day we can not only have a $0.25 dividend but look to grow it. Thanks for participating in our call. Now I will open the call up for any questions.

(Operator instructions.) Your first question comes from Gabe Poggi of SBR Capital Markets. Please proceed. Gabriel Poggi – FBR Capital Markets : Hey, good morning, guys.

Good morning, Gabe. How are ya? Gabriel Poggi – FBR Capital Markets : Good, how are you? Two quick questions: the $36 million of debt you bought back in Q2, you guys may have said this, I may have missed it. Where in the stack were they? Were they AAA’s? You guys said the stuff post quarter-end were AAA’s.

No, they were above A, kind of A, AA. Gabriel Poggi – FBR Capital Markets : Okay. And then do you guys have any commentary on the asset maturity side of things, an outlook out into 2011? How much you guys have coming due from an asset side, how much you’re going to have to work with borrowers in 2011?

We’ve been really working with borrowers so I think that we’re not overly concerned about that. And where we haven’t we’re hearing actually that they’re looking to refinance us. We’ve had numerous people come in the last, let’s call it eight weeks and tell us they’re not looking for an extension; they’re going to pay us off. Gabriel Poggi – FBR Capital Markets : Okay, great. Thanks.

It’s sort of becoming a new world, Gabe. Gabriel Poggi – FBR Capital Markets : That’s a good thing. Alright, that’s all I had. Thanks, guys.

Thanks.

(Operator instructions.) If there are no further questions I would now like to turn the call back over to management for closing remarks.

Well, we thank you very much for participating in our call and thank you for your support and encouragement during the financial crisis and afterwards, and we look forward to I think continuing to perform as we have. Thank you.

Thank you for your participation in today’s conference. This concludes the presentation and you may now disconnect. Have a great day.