Contact Information: For more information: Resource America, Inc. www.resourceamerica.com Marketing and Investor Relations pkamdar@resourceamerica.com
Resource Real Estate Crosses $100 Million Mark in Distressed Real Estate Investments
| Source: Resource America, Inc.
PHILADELPHIA, PA--(Marketwire - October 29, 2009) - Resource America, Inc. (NASDAQ : REXI ) (the
"Company"), today provided an update on the distressed real estate
activities of Resource Real Estate, Inc. ("RRE"), its real estate asset
management subsidiary. RRE manages a total of approximately $1.7 billion
as of June 30, 2009, and is focusing its current efforts on distressed real
estate investment opportunities as well as managing a portfolio of 17,000
multi-family units on a nationwide basis.
RRE has been active in distressed real estate since 1991. After several
years of managing previous distressed investments, it began seeking new
investment opportunities for distressed real estate in late 2007 and -- as
of this week
-- it has invested approximately $110 million dollars of equity with
institutional partners and through other programs.
RRE is generally paid management fees and incentive fees for managing these
distressed investments. On average through the various ventures and
programs that it manages in this area, RRE receives at least 1% per year of
the gross assets under management as an asset management fee, and typically
earns at least 20% of the profits of the investments if they exceed 12%.
RRE also earns certain acquisition, property management, debt placement
and other fees which differ between programs and assets.
RRE's Chief Executive Officer Alan Feldman said, "We are pleased to have
now invested over $100 million of equity in distressed assets in this
cycle. The dislocations in the current real estate and credit markets,
combined with the frothy lending climate of the last few years, suggest
that we are in the early phase of commercial real estate distress and we
expect to capitalize on it."
Resource America, Inc. is a specialized asset management company that uses
industry specific expertise to generate and administer investment
opportunities for its own account and for outside investors in the
commercial finance, real estate and financial fund management sectors. For
more information please visit our website at www.resourceamerica.com or
contact Marketing and Investor Relations at pkamdar@resourceamerica.com.
Certain matters discussed within this press release are forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Although the Company believes the expectations reflected in
such forward-looking statements are based on reasonable assumptions, it can
give no assurance that its expectations will be attained. Factors that
could cause actual results to differ materially from expectations include
financial performance, regulatory changes, changes in local or national
economic conditions and other risks detailed from time to time in the
Company's reports filed with the SEC, including quarterly reports on Form
10-Q, reports on Form 8-K and annual reports on Form 10-K. The Company
undertakes no obligation to update or revise any forward looking statement
to reflect new or changing information or events.