N🟁N

Resource Real Estate Crosses $100 Million Mark in Distressed Real Estate Investments

  //business-finance.news-articles.net/content/200 .. -mark-in-distressed-real-estate-investments.html
  Published in Business and Finance on Thursday, October 29th 2009 at 8:10 GMT by Market Wire
          ^{🞛 This publication is a summary or evaluation of another publication}

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.