Andrew Farkas Reports on RSO’s Strategic Plan

Posted by on Aug 1, 2018

Andrew L. Farkas, chairman of Resource Capital Corporation, reported on the status on April 29, 2018 of a strategic plan that was put forth 18 months ago. This plan detailed Real Capital Corporation’s repositioning as a commercial real estate company that will produce sustainable core earnings and deliver long-term shareholder value. According to Andrew Farkas, this plan is now complete and has met its goals.

Between now and when the plan was implemented, Resource Capital Corporation was able to sell $417 million non-core assets. $57 million of the remaining $63 million are legacy commercial real estate loans. Andrew Farkas believes that the best way to handle the legacy loans is to spend time to work them out. This will ideally result in achieving maximum proceeds for the company’s investors. The course of action outlined by Andrew Farkas is based off of resolving more than $50 billion similar loans for C-III Capital Partners.

The completion of the strategic plan will also result in an increase in Resource Capital Corporation’s quarterly dividend by $0.10 per share in the second quarter. According to Andrew Farkas, this will be a 100% in the quarterly common dividend since the plan started.

Another goal that was accomplished with the strategic plan is that throughout the last 18 months, around $800 million transitional commercial real estate loans have been originated. $165 million of the Series A and B preferred shares have also been fully redeemed. Andrew Farkas predicts that obtaining core earnings growth should be an easy path due to these accomplishments, which he stated in the following quote: “The path to core earnings growth from here is clear; identifying opportunities for quality, risk adjusted returns by leveraging C-III’s platform to invest in a broad array of commercial real estate credit investments.”

Andrew Farkas also stated that as of May 25, 2018, Resource Capital Corporation will be called Exantas Capital Corporation. In addition to the name change, Andrew Farkas is eager to see company-wide growth now that the strategic plan is complete.