Good day, ladies and gentlemen, and welcome to the quarter three, 2012 Resource Capital Corp earnings conference call. My name’s Dave, I’ll be your operator for today. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session toward the end of this conference. (Operator Instructions). As a reminder, this call is being recorded for replay purposes. I’d like to turn the call over to Mr. Jonathan Cohen, President and CEO. Please proceed, sir. Jonathan Cohen – President, CEO: Thank you. Thank you for joining the Resource Capital Corp conference call for the third quarter ended September 30th, 2012. 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. Purvi Kamdar – Director of Investor Relations: Thank you, Jonathan. When used in this conference call, the words believes, anticipates, expect and similar expressions are intended to be taken as 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 Form 8-K, 10-Q and 10-K. And in particular, Item 1-A on the Form 10-K report under the tile, Risk Factors. Listed is a caution not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. This is a precaution 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. And with that, I'll turn it back to Jonathan.

Thank you, Purvi. First, a few highlights. Adjusted funds from operations or AFFO for the three months ended September 30th, 2012, were $0.26 per share diluted. We paid a dividend of $0.20 per common share for the quarter on October 26th, 2012 to stockholders of record as of September 28th, 2012. Our book value increased to $5.51 per share this quarter from $5.38 as of December 31st, 2011 and $5.44 as of June 30th, 2012. Our GAAP net income for the three months ended September 30th, 2012 was $18.2 million or $0.20 per share diluted as compared to $14.9 million or $0.20 per share diluted for the three months ended September 30th, 2011. Total operating revenues increased by $3 million or 13% and $11.7 million or 18% as compared to the three and nine months ended September 30th, 2011. Cash on hand was $169.5 million at September 30th, 2012. With those highlights out of the way, I will not introduce my colleagues. With me today are David Bloom, Senior Vice President in charge of Real Estate Lending, David Bryant, our Chief Financial Officer, and Purvi Kamdar, our Director of Investor Relations. In my opinion, the third quarter was another terrific quarter for Resource Capital. We achieved what every company in our sector would like to achieve. First, we paid a sizeable cash dividend. Second, we covered that dividend by a margin of 30% or said a different way, we earned 130% of what we distributed as a dividend. Third, while paying the sizable dividend, we also increased book value, and while doing all of this, we raised additional common capital at 110% of book value per common share to diversify and grow our already solid portfolio. On top of the common capital raise, we also raised relatively cheap capital for…

Please stand by.

Hello, did we lose our conference line? Operator. Hello. We are still underwriting a consistent forward pipeline of $250 million on average. And are seeing ample opportunities to make the loans secured by strong real estate to well capitalized sponsors. That said, while overall sale and financing volumes continue to increase as commercial real estate fundamentals improve and additional markets recover, we have noted that acquisitions and refinancings are taking longer to come to fruition as a bit as disparity returned in healthier markets with sellers feeling slightly stronger about holding pricing levels and terms and buyers and borrowers looking to price to perfection. As a result, certain fully-negotiated applications for new loans need to be refreshed as acquisition terms change over time or uphold altogether as certain deals are cancelled. Regardless of this timing phenomenon that we noted in the last two quarters, the number of year-end transactions has picked up dramatically in the last 30 to 45 days. In addition, we see deal flow for our traditional floating rate bridge loans continuing to broaden as more than $1 trillion of scheduled maturities are reached over the next three years. And the capacity of established balance sheet lenders, especially those who focus on loans between $10 and $30 million in size like RSO, not being able to accommodate the vast opportunities that continue to develop. We remain optimistic about meeting and we're exceeding prior peak level production levels of approximately $600 million of new loans per year as we continue to grow our well-established national origination platform and add new loan programs to our existing product offerings. Credit across the portfolio continues to trend in a positive direction with improving metrics across all asset classes. The majority of the properties securing our loans are continuing to realize improved cash…

Thanks, Dave. Now I will also review our syndicated bank loan portfolio. Resource Capital's syndicated bank loan portfolio has a carrying value of approximately $1.1 billion at amortized cost. Overall, I believe that our portfolio has remained in excellent condition and little has changed since last quarter. As of September 30th, 2012, we have specific reserves of $2.1 million and general reserves of $3 million as compared to specific reserves of $2.1 million and general reserves of $3.1 million for the second quarter. We continue to forecast a very benign outlook in corporate credit for the next year or two. The default rate for the last 12 months was 0.43% or less than 1/2 a percent. Great job by Gretchen Bergstresser and her team. This has been a terrific business line for Resource Capital and we will continue to allocate capital to it. In addition to our portfolio of syndicated bank loans, we also collect management fees from our acquisition of the right to manage five other CLOs. During the nine months ended September 30th, 2012, we received $5.4 million in fees. This has been a very good transaction. I also want to mention that we lowered our investment in investments trading securities from $44.2 million to $25.8 million after we bought distressed CLOs, subordinate tranches starting in 2010. We sold much of this in the 9/30 quarter. We realized returns during that period far in excess of 50% compounded per year; a great transaction by our team. I just wanted to thank our employees who were involved for such an amazing investment returns once again. Now I will ask Dave Bryant, our Chief Financial Officer, to discuss our financials.

Thank you, Jonathan. RSO’s Board declared a cash dividend for the third quarter of $0.20 per common share or approximately 19.9 million in the aggregate. Our adjusted funds from operations were, AFFO was 23 million for the third quarter, or $0.26 per common share diluted. AFFO was impacted by several non-cash adjustments, totaling 4.2 million, and to a lesser extent, cash items of approximately 425,000. This represents an AFFO payout ratio of approximately 86%, and demonstrates our ability to cover the dividend from operating cash flow. I would also like to point out that included in our AFFO our realized gains from sales in the trading portfolio that Jon just mentioned, where we monetized significant valuation improvement in that portfolio. The realized gains in that portfolio were 6.2 million before associated income taxes of 3.1 million and other expenses of 600,000. Thus, even if we renewed those gains, net of those associated expenses of 2.5 million were approximately $0.03 per common share from AFFO we’d still have AFFO of $0.23 per common share. We continue to pass all the critical interest coverage and overcollateralization tests in our two real estate CDOs and four bank loans CLOs through September of 2012. Each of these structured financings performed well and continues to generate stable or even improving cash flow to us in 2012. The CRE CDOs produced over 22.3 million and bank loan CLOs generated approximately 24.5 million of cash flow during the nine months ended September 30th. This compares favorably to the same period in 2011 when they generated 15.1 million, and 20.1 million from CRE and bank loans respectively. This reflects both improved credit, as well as our ability to deploy restricted cash balances. As of September 30th we have an excess of 54.8 million of restrictive cash in these…

(Operator instructions). Please stand by for your first question, which comes from Steve Delaney at JMP Securities. Please go ahead. Steve Delaney – JMP Securities: Good morning, and congratulations on a strong quarter. Jonathan Cohen – President, CEO: Thanks, Steve. Steve Delaney – JMP Securities: I guess this is addressed to David Bloom. David, you ran through the pipeline in some detail and I apologize, I was writing as fast as I could, but couldn’t quite keep up. I believe you said, and correct me if I’m wrong here, that you continue to look at a long-term forward pipeline of about $250 million in potential fundings. But could you tighten it down maybe for the next two quarters, say for fourth quarter of 2012 and first quarter of ’13 and give us, you know, a tighter sense for which you really expect to see in closings for the next two quarters? David Bloom – SVP, Real Estate: Well, sure, Steve. I mean, you know, as I noted, there’s a lot of moving parts, but as far as deals in process for the fourth quarter, it’s another 51 million. Steve Delaney – JMP Securities: How many loans was that? David Bloom – SVP, Real Estate: That’s four. Steve Delaney – JMP Securities: Four loans for about 51, okay. David Bloom – SVP, Real Estate: And you know, I – past being pro [inaudible] because we continue to ramp, you know, I’m saying, you know, 50 again in the first quarter. Steve Delaney – JMP Securities: Okay, very good. Okay, so the 50 million kind of… Jonathan Cohen – President, CEO: Steve, this is Jonathan. Obviously you know that, you know, it’s a lumpy business. Sometimes these loans can take, you know, three weeks, six weeks, eight weeks to close, you know,…

Thank you. The next question comes from the line of Zachary Tanenbaum at MLV. Please go ahead. Zachary Tanenbaum – MLV: Thanks. Good morning, everyone. Jonathan Cohen – President, CEO: Good morning, Zach. Zachary Tanenbaum – MLV: I just wanted to ask, and I think I might have missed some of this earlier. The 9.8 million gain on investment securities trading in the quarter, can you give us the breakout of what was in that? And I think Dave Bryant, you walked through some math around some expenses associated with it, so can you just maybe just give a little more color on that? Jonathan Cohen – President, CEO: Sure. Dave Bryant can do that.

Okay, Jon. So of the 9.8 million, Zach, the breakdown that I gave was that 6.2 million of that had been realized. So we actually sold and monetized some of those significant gains in the portfolio. The expenses associated with the 6.2 million of realized gains were income taxes and other expenses of – combined of about 3.7 million, so the net was about 2.5. And the point I was making is that when you take out the 2.5 from adjusted FFO, we’re still at $0.23 a share. So of the balance of the 9.8 million, the other 3.6 was marks won in that trading portfolio, which of course, are going through the income statement, and won securities that we continue to hold. Zachary Tanenbaum – MLV: Got it. And those realized gains were on some CLO debt that you had bought? Is that right? Jonathan Cohen – President, CEO: Yeah, we had made an concerted effort, I mentioned it, Zach, in the end of my comments of buying distressed subordinate CLOs, you know, starting really in the early 2010 period and we really just made a tremendous amount of money, the market was red hot and we – even though we could have kept earning on them, we determined to sell them and realize the gains and so you’ll see that our investment trading securities, which is where those fall, have fallen from 44 to about 25 million, probably going to be a little bit flat for a little bit as we find new opportunities. Zachary Tanenbaum – MLV: Great. Thanks a lot. That’s helpful. Jonathan Cohen – President, CEO: Thank you.

Sir, you have no further questions at this time. (Operator Instructions). We have no further questions, sir. Jonathan Cohen – President, CEO: All right. I want to thank everybody for listening and those of you who read the transcript, I want to thank you for your support. We’re available for any questions from anybody, so let us know. Have a good day.

Thank you very much. I would like to apologize sincerely for the technical difficulties at my end and once again, thank you for participating. You may now disconnect.