Good morning and thank you for joining the Resource Capital Corp. Earnings Conference Call for the Fourth Quarter and Year-ended December 31, 2017. Before we begin, I would like to remind everyone that certain statements made in the course of this call are not based on historical information and may constitute forward-looking statements. When used in this call, the words beliefs, 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 based on management's current expectations and belief and are subject to a number of trends, risks and uncertainties, that could 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 8-K, 10-Q and 10-K, and in particular, the Risk Factor section of our Form 10-K. 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. Furthermore, certain non-GAAP financial measures will be discussed on this conference call, our presentation of this information is not intended to be considered in isolation, or as a substitute to the financial information presented in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the most comparable measures prepared in accordance with the Generally Accepted Accounting Principles can be accessed through our filings with the SEC at www.sec.gov. I would now turn it over to the Chairman of RSO, Andrew Farkas for opening remarks.

Thank you for joining us this morning. I apologize as my line is a little bit scratchy. I had to call in from a cellphone. With me today are Bob Lieber, who is the CEO of RSO; Matt Stern, President of RSO; Dave Bryant, who is the CFO of RSO; and Paul Hughson, Head of Commercial Real Estate Lending at RSO. Finally, Andy Karr, who I'd like to introduce as RSO's new Head of Investor Relations. In 2017 and already early in 2018, we made significant progress in positioning Resource Capital into competitive progression vehicle capable of producing sustainable core earnings and delivering long term shareholder value. I am pleased to report that we are substantially through this strategic plan and solemnly believe with risky [ph] to the non-core assets. 2017 commercial real estate loan originated volume was up over 300% as compared to 2016 and CMBS investments by face amount were approximately $200 million greater than 2016. We expect these investments to make meaningful contributions to core earnings in 2018. As we continue to improve operations and position RSO for the core earnings growth, we've also made significant progress in adjusting the company's capitalization with full redemption of our preferred Series A and B shares in early 2018. On our team's first RSO earnings call, we said 2017 will be a transition year and we believe that our efforts during this past year will begin to bear fruit later in 2018. With that, I turn it over to our CFO - sorry, CEO, sorry about that Bob. Bob Lieber.

Good morning, Andrew and good morning, everybody. Thank you. I want to start off by highlighting the significant shift in the asset base in our balance sheet compared to when we took over 15 months ago as a result of the implementation of our strategic plan. The equity allocated to core investments has increased to 84% as of year-end 2017 up from 46% a year ago. We summarized this and schedule through the press release we've sold $343 million or just over 70% of the $480 million of assets fee non-core under the strategic plan and realized proceeds of about $364 million, which is obviously well in excess of book value. Our initial guidance of exiting these assets identified in the strategic plan over an 18-month period remains on track. That now withstanding a few other remaining investments included may require a little more time in order to get the best execution and maximize the proceeds for our - so but we expect to be substantially completed within that timeframe. And next, I'd like to highlight certain key items relating to our earnings and Dave Bryant will detail more this in his comments in a few minutes. But first I'd like to discuss the impact that redeeming the Series A and Series B preferred shares has on our earnings power. Core earnings for the fourth quarter excluding charges related to the redemption of our preferred shares were minus 1 penny for the fourth quarter. As Andrew mentioned by the end of the first quarter of 2018, we will have redeemed all the Series A and Series B preferreds and by eliminating the dividend requirement of those the entire class of those shares our common equity picks up $0.44 of earnings per annum or $0.11 per quarter. And from this base,…

Thank you, Bob and good morning everyone. I'd like to begin with our origination and investment activity. In 2017, we closed on $600 million of loan commitments and acquired $212 million base amount of CMBS. For the fourth quarter of 2017 alone, we originated $229 million of transitional CRE loan commitments with the weighted average spread of 426 basis points over 30-day LIBOR. Our CRE loan origination team continues to see improved deal flow and we are confident that the recent growth of our origination volume will continue. I am pleased to report that our second half of the 2017 loan origination volume of $387 million exceeded the guidance of $350 million that we provided to the market during our third quarter earnings call. At December 31, 2017, our commercial real estate loan portfolio is comprised of $1.3 billion of floating rate self-originated home loans. As a floating rate lender, we believe our portfolio is well-positioned to benefit in a rising interest rate environment. Turning to our CMBS portfolio, we acquired $78 million face amount of CMBS bonds during the fourth quarter. RSO continues to benefit from one of C-III's core competencies of underwriting real estate credit and identifying good risk adjusted returns throughout the capital stack of CMBS trusts. During the fourth quarter, RSO acquired a non-investment grade CMBS bond as well as a CMBS BPs comprising the higher yielding subordinated tranches of the CMBS trust. We believe CMBS investments particularly the low investment grade and more subordinated credit tranches provide attractive risk adjusted yields while adding meaningful diversification and duration to RSO's portfolio. Going forward, our goal is to make approximately $1 billion of commitments and investments in 2018. We would expect CRE loans to make up 70% or more of these 2018 commitments and investments. We believe…

Thank you, Matt, and good morning. Our GAAP net loss allocable to common shares for the three months ended December 31st, 2017 was $12.1 million or $0.39 per share. And our GAAP net income for the year ended December 31st was $5.7 million or $0.18 per share. Our net loss for the fourth quarter includes the following significant activity; a charge of $3.8 million with the redemption of all of our Series A and unfortunate of our Series B preferred stock, which represents the difference between the redemption price and the carrying value of the redeemed stock. A net loss of $3.3 million from discontinued operations primarily related to the wind down primary capital mortgage, a net loss of $1.7 million from our investments and all consolidated entities included in the strategic plan, and a charge of $1.5 million from a valuation adjustment to a CRE loan held for sale also included in the strategic plan. Also, a charge of $1.3 million from increased general loan provisions and finally, a legal expense $700,000 related to a shareholder class action settlement entered into after year-end. The decline in our GAAP book value per share to $14.46 at year-end 2017 from $14.91 at September 30, 2017 can be attributed to the following. A net loss of $0.39 per share, and a common dividend payout of $0.05 per share and also a net decrease of $0.01 to other comprehensive income from mark to market adjustments. Adjusting the book value at December 31, 2017, for the charge to be incurred in the first quarter on the March 2018 redemption of the remaining outstanding Series B preferred stock results in an additional decrease of $7.5 million or $0.24 per share of book value. As Bob discussed in his remarks, we expect our total assets to…

Thanks, Dave. Andrew, did you have anything you wanted to close with.

Yeah I'd like to congratulate management on the job continued to be well done, I think the performance of the enterprise continues to improve and as moving along with guidance and I appreciate the general following that we gotten from the market and I think you're truly [indiscernible] the results [indiscernible] over the course of the balance in this year that will derived from all the work that they've done over the course of the last 18 months. I think with that, we should take questions.

Okay, operator, we'll open it up for questions, please.

[Operator Instructions]. Our first question is from Steve DeLaney with JMP Securities. Your line is now open.

Good morning, everyone. And thank you for taking my questions. Matt, I would like to start with you on the origination side, obviously good momentum as you went into the end of the year. Could you remind us of what your platform looks like in terms of your number of office locations around the country and how many loan originators and support personnel do you have on that side of the business? Thanks.

Sure. Paul, do you want to discuss just the magnitude of platform as a start?

Sure. So, we have an office in LA that's staffed with four folks, we've got an office in Philly that's staffed with two and then the C-III origination infrastructure coupled with the RSO underwriting infrastructure in New York has approximately 16 people where that's where the bulk of the originations in underwriting support derives from the platform.

Great, thanks Paul. Look forward to meeting you sometime soon. Following up on that, Matt your comments about a $1 billion in 2018, 70% of that hopefully in new CRE loans. In 2017, you had some pretty significant originations, but given the level of pay-offs, the amount of portfolio growth was somewhat muted, do you have a sense of what pay-offs maybe in 2018 vis-à-vis the $700 million target that you've set for new CRE originations? Thanks.

Yeah, sure. Just to clarify on the billion that was discussed, we expect that that would be approximately the floor for it, so it could be upwards of 700 on the loan side. In terms of portfolio growth, your comment is well taken. It is very difficult to predict precisely borrower behavior in terms of repayments but based on our analysis of expected repayments and the maturities of loans, we do expect to see meaningful portfolio growth through 2018 as a result of the guidance that we gave on aggregate originations. I think it's important to note that we just began the origination build for RSO and Earnest in the first quarter of 2017 and now that we are in a position to have a ramp that we do expect more significant portfolio growth net in 2018.

Great. And as a rationale you guys have the capability to be involved in CMBS. Is one of the benefits there also just the longer duration of those assets versus the floating rates of senior loans, is that something we should keep in mind about why you should allocate capital to CMBS?

Yes, it is precisely one of the reasons. There are meaningful diversification benefits of the investment given the underlying credit that sits under the investment of that type and then you've touched on something that we think is paramount for the business, which is an increase in longer duration to the asset base of the company, we think it's supportive both to the earnings base as well as future dividends of the company, so longer duration investments as a component of our asset base, we think is critical.

Thanks. One final quick thing for Dave Bryant if I may and I'll sign off. Looking at the non-core cable of what is left, a $126 million. I'm seeing this $10.5 million investment in unconsolidated entity I thought PCM was - is this the carryover from PCM that wasn't off the books at year-end and if not, what does that represent? Thanks.

It is not PCM, Steve, it is essentially an investment in a hedge fund that RSO participated in that further liquidated post year-end and we're looking to liquidate the rest of it over the coming 30 to 45 days of cycle.

Okay, very good. Thank you for your comments this morning.

Thank you, Steve.

Thank you.

And I am showing no further questions. I would now like to turn the call back to Bob Lieber for any further remarks.

Okay. Well, thank you all for participating, Steve thank you for your questions and if there are other questions to come up, don't hesitate to contact Andy Karr, who can get the appropriate response to you and we look forward to talking to you more on our next quarterly call. Thank you, all.

Ladies and gentlemen, thank you for participating in today's conference. You may now disconnect. Everyone, have a great day.