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| Maryland                        |   | 20-2297134          |
|---------------------------------|--------|---------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer    |
| incorporation or organization)  |   | Identification No.) |

| 712 5th Avenue, 10th Floor                           |
|------------------------------------------------------|
| New York, New York 10019                             |
| (Address of principal executive offices) (Zip code)  |
| (212) 506-3870                                       |
| (Registrant's telephone number, including area code) |

| Large accelerated filer | o |                                          | Accelerated filer         | x |
|-------------------------|---|-----------------------------------------------|---------------------------|---|
| Non-accelerated filer   | o | (Do not check if a smaller reporting Company) | Smaller reporting company | o |

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INDEX

|       |                                                                                                            | PAGE   |
|------------|-----------------------------------------------------------------------------------------------------------------|--------|
|       |                                                                                                            |   |
| PART I     | FINANCIAL INFORMATION                                                                                           |   |
|       |                                                                                                            |   |
| Item 1.    | Financial Statements                                                                                            |   |
|       | Consolidated Balance Sheets – September 30, 2009 (unaudited) and December 31, 2008                        | 3      |
|       | Consolidated Statements of Operations (unaudited)Three and Nine Months Ended September 30, 2009 and 2008        | 4      |
|       | Consolidated Statement of Changes in Stockholders’ Equity (unaudited)Nine Months Ended September 30, 2009 | 5      |
|       | Consolidated Statements of Cash Flows (unaudited)Nine Months Ended September 30, 2009 and 2008                  | 6      |
|       | Notes to Consolidated Financial Statements – September 30, 2009 (unaudited)                               | 8      |
|       |                                                                                                            |   |
| Item 2.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations                     | 28     |
|       |                                                                                                            |   |
| Item 3.    | Quantitative and Qualitative Disclosures about Market Risk                                                      | 48     |
|       |                                                                                                            |   |
| Item 4.    | Controls and Procedures                                                                                         | 48     |
|       |                                                                                                            |   |
| PART II    | OTHER INFORMATION                                                                                               |   |
|       |                                                                                                            |   |
| Item 6.    | Exhibits                                                                                                        | 50     |
|       |                                                                                                            |
| SIGNATURES | 51                                                                                                              |

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CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                       |   | September 30, |      |   | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|--------------|--------|
|                                                                                                                                                                                       |   | 2009          |      |   | 2008         |   |
|                                                                                                                                                                                       |   | (Unaudited)   |      |   |         |   |
| ASSETS                                                                                                                                                                                     |   |          |      |   |         |   |
| Cash and cash equivalents                                                                                                                                                                  |   | $             | 15,828    |   |         | $      | 14,583 |   |
| Restricted cash                                                                                                                                                                            |   |          | 66,997    |   |         |   | 60,394 |   |
| Investment securities available-for-sale, pledged as collateral, at fair value                                                                                                             |   |          | 36,311    |   |         |   | 22,466 |   |
| Investment securities available-for-sale, at fair value                                                                                                                                    |   |          | 4,288     |   |         |   | 6,794 |   |
| Investment securities held-to-maturity, pledged as collateral                                                                                                                              |   |          | 32,624    |   |         |   | 28,157 |   |
| Loans, pledged as collateral and net of allowances of $59.4 million and$43.9 million                                                                                                       |   |          | 1,585,075 |   |         |   | 1,684,622 |   |
| Loans held for sale                                                                                                                                                                        |   |          | 15,103    |   |         |   | − |   |
| Direct financing leases and notes, pledged as collateral, net of allowance of$900,000 and $450,000 and net of unearned income                                                              |   |          | 2,205     |   |         |   | 104,015 |   |
| Investments in unconsolidated entities                                                                                                                                                     |   |          | 1,548     |   |         |   | 1,548 |   |
| Interest receivable                                                                                                                                                                        |   |          | 6,235     |   |         |   | 8,440 |   |
| Other assets                                                                                                                                                                               |   |          | 2,901     |   |         |   | 5,012 |   |
| Total assets                                                                                                                                                                               |   | $             | 1,769,115 |   |         | $      | 1,936,031 |   |
| LIABILITIES                                                                                                                                                                                |   |          |      |   |         |   |   |   |
| Borrowings                                                                                                                                                                                 |   | $             | 1,567,919 |   |         | $      | 1,699,763 |   |
| Distribution payable                                                                                                                                                                       |   |          | 7,509     |   |         |   | 9,942 |   |
| Accrued interest expense                                                                                                                                                                   |   |          | 2,018     |   |         |   | 4,712 |   |
| Derivatives, at fair value                                                                                                                                                                 |   |          | 15,658    |   |         |   | 31,589 |   |
| Accounts payable and other liabilities                                                                                                                                                     |   |          | 6,639     |   |         |   | 3,720 |   |
| Total liabilities                                                                                                                                                                          |   |          | 1,599,743 |   |         |   | 1,749,726 |   |
| STOCKHOLDERS’ EQUITY                                                                                                                                                                 |   |          |      |   |         |   |   |   |
| Preferred stock, par value $0.001:  100,000,000 shares authorized;no shares issued and outstanding                                                                               |   |          | −   |   |         |   | − |   |
| Common stock, par value $0.001:  500,000,000 shares authorized;24,895,409 and 25,344,867 shares issued and outstanding(including 464,136 and 452,310 unvested restricted shares) |   |          | 25        |   |         |   | 26 |   |
| Additional paid-in capital                                                                                                                                                                 |   |          | 355,103   |   |         |   | 356,103 |   |
| Accumulated other comprehensive loss                                                                                                                                                       |   |          | (68,266   | )      |         |   | (80,707 | ) |
| Distributions in excess of earnings                                                                                                                                                        |   |          | (117,490  | )      |         |   | (89,117 | ) |
| Total stockholders’ equity                                                                                                                                                           |   |          | 169,372   |   |         |   | 186,305 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                           |   | $             | 1,769,115 |   |         | $      | 1,936,031 |   |

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CONSOLIDATED STATEMENTS OF OPERATIONS

|                                                               |   | Three Months Ended |       |    | Nine Months Ended |   |
|--------------------------------------------------------------------|--------|--------------------|------------|---------|-------------------|--------|
|                                                               |   | September 30,      |       |    | September 30,     |   |
|                                                               |   | 2009               |       |    | 2008              |   |   | 2009 |   |   | 2008 |   |
| REVENUES                                                           |   |               |       |    |              |   |   |   |   |   |   |   |
| Net interest income:                                               |   |               |       |    |              |   |   |   |   |   |   |   |
| Loans                                                              |   | $                  | 20,207     |    |              | $      | 28,578 |   |   | $ | 64,333 |   |   | $ | 88,885 |   |
| Securities                                                         |   |               | 1,906      |    |              |   | 1,387 |   |   |   | 4,674 |   |   |   | 4,544 |   |
| Leases                                                             |   |               | 11         |    |              |   | 1,995 |   |   |   | 4,337 |   |   |   | 5,946 |   |
| Interest income − other                                      |   |               | 377        |    |              |   | 352 |   |   |   | 1,053 |   |   |   | 2,178 |   |
| Total interest income                                              |   |               | 22,501     |    |              |   | 32,312 |   |   |   | 74,397 |   |   |   | 101,553 |   |
| Interest expense                                                   |   |               | 9,203      |    |              |   | 18,664 |   |   |   | 35,828 |   |   |   | 60,736 |   |
| Net interest income                                                |   |               | 13,298     |    |              |   | 13,648 |   |   |   | 38,569 |   |   |   | 40,817 |   |
|                                                               |   |               |       |    |              |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING EXPENSES                                                 |   |               |       |    |              |   |   |   |   |   |   |   |   |   |   |   |
| Management fees − related party                              |   |               | 3,954      |    |              |   | 1,915 |   |   |   | 5,880 |   |   |   | 4,824 |   |
| Equity compensation − related party                          |   |               | 721        |    |              |   | 157 |   |   |   | 1,074 |   |   |   | 779 |   |
| Professional services                                              |   |               | 739        |    |              |   | 773 |   |   |   | 2,792 |   |   |   | 2,229 |   |
| Insurance expenses                                                 |   |               | 220        |    |              |   | 171 |   |   |   | 609 |   |   |   | 469 |   |
| General and administrative                                         |   |               | 410        |    |              |   | 421 |   |   |   | 1,256 |   |   |   | 1,119 |   |
| Income tax expense (benefit)                                       |   |               | 6          |    |              |   | (33 | ) |   |   | 5 |   |   |   | 134 |   |
| Total expenses                                                     |   |               | 6,050      |    |              |   | 3,404 |   |   |   | 11,616 |   |   |   | 9,554 |   |
|                                                               |   |               |       |    |              |   |   |   |   |   |   |   |   |   |   |   |
| NET OPERATING INCOME                                               |   |               | 7,248      |    |              |   | 10,244 |   |   |   | 26,953 |   |   |   | 31,263 |   |
|                                                               |   |               |       |    |              |   |   |   |   |   |   |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                             |   |               |       |    |              |   |   |   |   |   |   |   |   |   |   |   |
| Impairment losses on investment securities                         |   | $                  | (3,019     | )  |              | $      | − |   |   | $ | (19,372 | ) |   | $ | − |   |
| Recognized in other comprehensive loss                             |   |               | (2,124     | )  |              |   | − |   |   |   | (12,812 | ) |   |   | − |   |
| Net impairment losses recognizedin earnings                   |   |               | (895       | )       |              |   | − |   |   |   | (6,560 | ) |   |   | − |   |
| Net realized and unrealized (losses) gains onloans and investments |   |               | (1,517     | )       |              |   | 242 |   |   |   | (11,805 | ) |   |   | (1,651 | ) |
| Other (expense) income                                             |   |               | (1,417     | )       |              |   | 27 |   |   |   | (1,375 | ) |   |   | 86 |   |
| Provision for loan and lease losses                                |   |               | (4,632     | )       |              |   | (10,999 | ) |   |   | (32,605 | ) |   |   | (27,828 | ) |
| Gain on the extinguishment of debt                                 |   |               | 12,741     |    |              |   | − |   |   |   | 19,641 |   |   |   | 1,750 |   |
| Gain on the settlement of a loan                                   |   |               | −    |    |              |   | 574 |   |   |   | − |   |   |   | 574 |   |
| Total other income (expense)                                       |   |               | 4,280      |    |              |   | (10,156 | ) |   |   | (32,704 | ) |   |   | (27,069 | ) |
|                                                               |   |               |       |    |              |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS)                                                  |   | $                  | 11,528     |    |              | $      | 88 |   |   | $ | (5,751 | ) |   | $ | 4,194 |   |
|                                                               |   |               |       |    |              |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) PER SHARE –BASIC                           |   | $                  | 0.48       |    |              | $      | 0.00 |   |   | $ | (0.24 | ) |   | $ | 0.17 |   |
|                                                               |   |               |       |    |              |   |   |   |   |   |   |   |   |   |   |   |
| NET INCOME (LOSS) PER SHARE –DILUTED                         |   | $                  | 0.47       |    |              | $      | 0.00 |   |   | $ | (0.24 | ) |   | $ | 0.17 |   |
|                                                               |   |               |       |    |              |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OFSHARES OUTSTANDING – BASIC         |   |               | 24,112,240 |    |              |   | 24,814,789 |   |   |   | 24,321,007 |   |   |   | 24,719,889 |   |
|                                                               |   |               |       |    |              |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OFSHARES OUTSTANDING – DILUTED       |   |               | 24,376,681 |    |              |   | 25,054,296 |   |   |   | 24,321,007 |   |   |   | 24,889,965 |   |
|                                                               |   |               |       |    |              |   |   |   |   |   |   |   |   |   |   |   |
| DIVIDENDS DECLARED PER SHARE                                       |   | $                  | 0.30       |    |              | $      | 0.39 |   |   | $ | 0.90 |   |   | $ | 1.21 |   |

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CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

|                                                                              |   | Common Stock |       |   |   |   |    |                       |   |   |                                 |   |   |              |    |   |                                |   |    |                             |   |
|-----------------------------------------------------------------------------------|--------|--------------|------------|--------|--------|--------|---------|----------------------------|--------|--------|--------------------------------------|--------|--------|-------------------|---------|--------|-------------------------------------|--------|---------|----------------------------------|--------|
|                                                                              |   | Shares       |       |   | Amount |   |    | Additional Paid-In Capital |   |   | Accumulated Other Comprehensive Loss |   |   | Retained Earnings |    |   | Distributions in Excess of Earnings |   |    | Total Stockholders’ Equity |   |   | Comprehensive Loss |   |
| Balance, January 1, 2009                                                          |   |         | 25,344,867 |   |   | $      | 26      |                       |   | $      | 356,103                              |   |   | $                 | (80,707 | )      |                                | $      | − |                             |   | $ | (89,117 | ) |   | $ | 186,305 |   |   |   |   |
| Net proceeds from dividendreinvestment and stockpurchase plan                     |   |         | 682,504    |   |   |   | − |                       |   |   | 2,866                                |   |   |              | − |   |                                |   | − |                             |   |   | − |   |   |   | 2,866 |   |   |   |   |
| Repurchase and retirement oftreasury shares                                       |   |         | (1,400,000 | )      |   |   | (1      | )                          |   |   | (5,038                               | )      |   |              | − |   |                                |   | − |                             |   |   | − |   |   |   | (5,039 | ) |   |   |   |
| Stock based compensation                                                          |   |         | 276,229    |   |   |   | − |                       |   |   | 98                                   |   |   |              | − |   |                                |   | − |                             |   |   | − |   |   |   | 98 |   |   |   |   |
| Amortization of stockbased compensation                                           |   |         | −    |   |   |   | − |                       |   |   | 1,074                                |   |   |              | − |   |                                |   | − |                             |   |   | − |   |   |   | 1,074 |   |   |   |   |
| Forfeiture of unvested stock                                                      |   |         | (8,191     | )      |   |   | − |                       |   |   | −                              |   |   |              | − |   |                                |   | − |                             |   |   | − |   |   |   | − |   |   |   |   |
| Net loss                                                                          |   |         | −    |   |   |   | − |                       |   |   | −                              |   |   |              | − |   |                                |   | (5,751  | )                                |   |   | − |   |   |   | (5,751 | ) |   | $ | (5,751 | ) |
| Securities available-for-sale, fair     value adjustment, net |   |         | −    |   |   |   | − |                       |   |   | −                              |   |   |              | (3,793  | )      |                                |   | − |                             |   |   | − |   |   |   | (3,793 | ) |   |   | (3,793 | ) |
| Designated derivatives, fairvalue adjustment                                      |   |         | −    |   |   |   | − |                       |   |   | −                              |   |   |              | 16,234  |   |                                |   | − |                             |   |   | − |   |   |   | 16,234 |   |   |   | 16,234 |   |
| Distributions on commonstock                                                      |   |         | −    |   |   |   | − |                       |   |   | −                              |   |   |              | − |   |                                |   | 5,751   |                             |   |   | (28,373 | ) |   |   | (22,622 | ) |   |   |   |   |
| Comprehensive loss                                                                |   |         | −    |   |   |   | − |                       |   |   | −                              |   |   |              | − |   |                                |   | − |                             |   |   | − |   |   |   | − |   |   | $ | 6,690 |   |
| Balance, September 30, 2009                                                       |   |         | 24,895,409 |   |   | $      | 25      |                       |   |   | 355,103                              |   |   |              | (68,266 | )      |                                |   | − |                             |   | $ | (117,490 | ) |   | $ | 169,372 |   |   |   |   |   |

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CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                                    |   | Nine Months Ended |     |
|-----------------------------------------------------------------------------------------|--------|-------------------|----------|
|                                                                                    |   | September 30,     |     |
|                                                                                    |   | 2009              |     |   | 2008 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                   |   |              |     |   |   |   |
| Net (loss) income                                                                       |   | $                 | (5,751   | ) |   | $ | 4,194 |   |
| Adjustments to reconcile net (loss) income to net cash provided byoperating activities: |   |              |     |   |   |   |   |   |
| Provision for loan and lease losses                                                     |   |              | 32,605   |   |   |   | 27,828 |   |
| Depreciation and amortization of term facilities                                        |   |              | 1,172    |   |   |   | 812 |   |
| Accretion of net discount on investments                                                |   |              | (4,589   | ) |   |   | (873 | ) |
| Amortization of discount on notes of CDOs                                               |   |              | 160      |   |   |   | 128 |   |
| Amortization of debt issuance costs on notes of CDOs                                    |   |              | 2,787    |   |   |   | 2,345 |   |
| Amortization of stock-based compensation                                                |   |              | 1,074    |   |   |   | 779 |   |
| Amortization of terminated derivative instruments                                       |   |              | 367      |   |   |   | 92 |   |
| Net realized gains on derivative instruments                                            |   |              | −  |   |   |   | (6 | ) |
| Non-cash incentive compensation to the Manager                                          |   |              | 768      |   |   |   | 341 |   |
| Unrealized losses on non-designated derivative instruments                              |   |              | 70       |   |   |   | − |   |
| Net realized and unrealized losses on investments                                       |   |              | 11,805   |   |   |   | 1,651 |   |
| Net impairment losses recognized in earnings                                            |   |              | 6,560    |   |   |   | − |   |
| Gain on the extinguishment of debt                                                      |   |              | (19,641  | ) |   |   | (1,750 | ) |
| Changes in operating assets and liabilities                                             |   |              | 12,343   |   |   |   | 614 |   |
| Net cash provided by operating activities                                               |   |              | 39,730   |   |   |   | 36,155 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                   |   |              |     |   |   |   |   |   |
| Restricted cash                                                                         |   |              | (16,487  | )  |   |   | 38,724 |   |
| Purchase of securities available-for-sale                                               |   |              | (20,135  | ) |   |   | − |   |
| Principal payments on securities available-for-sale                                     |   |              | 1        |   |   |   | 2,288 |   |
| Proceeds from sale of securities available-for-sale                                     |   |              | −  |   |   |   | 8,000 |   |
| Distribution from unconsolidated entities                                               |   |              | −  |   |   |   | 257 |   |
| Purchase of loans                                                                       |   |              | (139,095 | ) |   |   | (161,299 | ) |
| Principal payments received on loans                                                    |   |              | 95,346   |   |   |   | 128,392 |   |
| Proceeds from sales of loans                                                            |   |              | 83,623   |   |   |   | 29,593 |   |
| Purchase of direct financing leases and notes                                           |   |              | −  |   |   |   | (36,477 | ) |
| Proceeds from payments received on direct financing leases and notes                    |   |              | 8,629    |   |   |   | 23,563 |   |
| Proceeds from sale of direct financing leases and notes                                 |   |              | 9,670    |   |   |   | 2,280 |   |
| Net cash provided by investing activities                                               |   |              | 21,552   |   |   |   | 35,321 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                   |   |              |     |   |   |   |   |   |
| Net proceeds from issuance of common stock (net of offering costs of $0 and $22)        |   |              | 2,866    |   |   |   | (22 | ) |
| Repurchase of common stock                                                              |   |              | (5,039   | ) |   |   | − |   |
| Proceeds from borrowings:                                                               |   |              |     |   |   |   |   |   |
| Repurchase agreements                                                                   |   |              | 18       |   |   |   | 239 |   |
| Collateralized debt obligations                                                         |   |              | −  |   |   |   | 21,319 |   |
| Secured term facility                                                                   |   |              | −  |   |   |   | 22,451 |   |
| Payments on borrowings:                                                                 |   |              |     |   |   |   |   |   |
| Repurchase agreements                                                                   |   |              | (17,054  | ) |   |   | (55,557 | ) |
| Secured term facility                                                                   |   |              | (13,395  | ) |   |   | (14,252 | ) |
| Repurchase of issued bonds                                                              |   |              | (2,379   | ) |   |   | (3,250 | ) |
| Settlement of derivative instruments                                                    |   |              | −  |   |   |   | (4,752 | ) |
| Payment of debt issuance costs                                                          |   |              | −  |   |   |   | (333 | ) |
| Distributions paid on common stock                                                      |   |              | (25,054  | ) |   |   | (31,238 | ) |
| Net cash used in financing activities                                                   |   |              | (60,037  | ) |   |   | (65,395 | ) |

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|                                                |   | Nine Months Ended |    |
|-----------------------------------------------------|--------|-------------------|---------|
|                                                |   | September 30,     |    |
|                                                |   | 2009              |    |   | 2008 |   |
| NET INCREASE IN CASH AND CASH EQUIVALENTS           |   |              | 1,245   |   |   |   | 6,081 |   |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD    |   |              | 14,583  |   |   |   | 6,029 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD          |   | $                 | 15,828  |   |   | $ | 12,110 |   |
| NON-CASH INVESTING AND FINANCING ACTIVITIES:        |   |              |    |   |   |   |   |   |
| Distributions on common stock declared but not paid |   | $                 | 7,509   |   |   | $ | 9,928 |   |
| Issuance of restricted stock                        |   | $                 | 242     |   |   | $ | 1,435 |   |
| Transfer of direct financing leases and notes       |   | $                 | 89,763  |   |   | $ | − |   |
| Transfer of secured term facility                   |   | $                 | 82,319  |   |   | $ | − |   |
| SUPPLEMENTAL DISCLOSURE:                            |   |              |    |   |   |   |   |   |
| Interest expense paid in cash                       |   | $                 | 38,751  |   |   | $ | 72,835 |   |
| Income taxes paid in cash                           |   | $                 | − |   |   | $ | 611 |   |

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NOTES TO 

|   | · | RCC Real Estate, Inc. (“RCC Real Estate”) holds real estate investments, including commercial real estate loans and commercial real estate-related securities.  RCC Real Estate owns 100% of the equity of the following entities: |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Resource Real Estate Funding CDO 2006-1 (“RREF CDO 2006-1”), a Cayman Islands limited liability company and qualified real estate investment trust (“REIT”) subsidiary (“QRS”).  RREF CDO 2006-1 was established to complete a collateralized debt obligation (“CDO”) issuance secured by a portfolio of commercial real estate loans and commercial mortgage-backed securities. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Resource Real Estate Funding CDO 2007-1 (“RREF CDO 2007-1”), a Cayman Islands limited liability company and QRS.  RREF CDO 2007-1 was established to complete a CDO issuance secured by a portfolio of commercial real estate loans andcommercial mortgage-backed securities. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | RCC Commercial, Inc. (“RCC Commercial”) holds bank loan investments and commercial real estate-related securities.  RCC Commercial owns 100% of the equity of the following entities: |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Apidos CDO I, Ltd. (“Apidos CDO I”), a Cayman Islands limited liability company and taxable REIT subsidiary (“TRS”).  Apidos CDO I was established to complete a CDO secured by a portfolio of bank loans. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Apidos CDO III, Ltd. (“Apidos CDO III”), a Cayman Islands limited liability company and TRS.  Apidos CDO III was established to complete a CDO secured by a portfolio of bank loans. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Apidos Cinco CDO, Ltd. (“Apidos Cinco CDO”), a Cayman Islands limited liability company and TRS.  Apidos Cinco CDO was established to complete a CDO secured by a portfolio of bank loans. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Resource TRS, Inc. (“Resource TRS”), the Company’s directly-owned TRS, holds all the Company’s direct financing leases and notes. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | an income approach utilizing an appropriate current risk-adjusted yield, time value and projected estimated losses from default assumptions based on analysis of underlying loan performance; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | quotes on similar-vintage, higher rate, more actively traded commercial mortgage-backed securities (“CMBS”) adjusted for the lower subordination level of the Company’s securities; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | dealer quotes on the Company’s securities for which there is not an active market. |
|--------|------|------------------------------------------------------------------------------------------|

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|                             |   | Amortized Cost (1) |   |   | Unrealized Gains |   |    | Unrealized Losses |   |   | Fair Value (1) |   |
|----------------------------------|--------|--------------------|--------|--------|------------------|--------|---------|-------------------|--------|--------|----------------|--------|
| September 30, 2009:              |   |               |   |   |             |   |    |              |   |   |           |   |
| Commercial MBS private placement |   | $                  | 91,257 |   |             | $      | 3,352   |              |   | $      | (54,010        | )      |   | $ | 40,599 |   |
| Total                            |   | $                  | 91,257 |   |             | $      | 3,352   |              |   | $      | (54,010        | )      |   | $ | 40,599 |   |
|                             |   |               |   |   |             |   |    |              |   |   |           |   |   |   |   |   |
| December 31, 2008:               |   |               |   |   |             |   |    |              |   |   |           |   |   |   |   |   |
| Commercial MBS private placement |   | $                  | 70,458 |   |             | $      | − |              |   | $      | (41,243        | )      |   | $ | 29,215 |   |
| Other ABS                        |   |               | 5,665  |   |             |   | − |              |   |   | (5,620         | )      |   |   | 45 |   |
| Total                            |   | $                  | 76,123 |   |             | $      | − |              |   | $      | (46,863        | )      |   | $ | 29,260 |   |

----

| (1) | As of September 30, 2009 and December 31, 2008, $36.3 million and $22.5 million were pledged as collateral security under related financings, respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Weighted Average Life                          |   | Fair Value |   |   | Amortized Cost |   |   | Weighted Average Coupon |   |
|------------------------------------------------|--------|------------|--------|--------|----------------|--------|--------|-------------------------|--------|
| September 30, 2009:                            |   |       |   |   |           |   |   |                    |   |
| Less than one year                             |   | $          | 11,712 | (1)    |           | $      | 32,063 |                    |   |   | 1.72% |   |
| Greater than five years                        |   |       | 28,887 |   |           |   | 59,194 |                    |   |   | 5.81% |   |
| Total                                          |   | $          | 40,599 |   |           | $      | 91,257 |                    |   |   | 4.37% |   |
|                                           |   |       |   |   |           |   |   |                    |   |   |   |   |
| December 31, 2008:                             |   |       |   |   |           |   |   |                    |   |   |   |   |
| Less than one year                             |   | $          | 5,088  |   |           | $      | 10,465 |                    |   |   | 3.17% |   |
| Greater than one year and less than five years |   |       | 9,954  |   |           |   | 21,596 |                    |   |   | 3.75% |   |
| Greater than five years                        |   |       | 14,218 |   |           |   | 44,062 |                    |   |   | 5.05% |   |
| Total                                          |   | $          | 29,260 |   |           | $      | 76,123 |                    |   |   | 4.36% |   |

----

| (1) | All of the $11.7 million of CMBS maturing in these categories are collateralized by floating-rate loans and are expected to extend for up to a minimum of two additional years as the loans in the floating-rate structures have a contractual right to extend with options ranging from two one-year options to three one-year options. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                 |   | Less than 12 Months |    |   | More than 12 Months     |   |    | Total      |   |
|--------------------------------------|--------|---------------------|---------|--------|-------------------------|--------|---------|------------|--------|
|                                 |   | Fair Value          |    |   | Gross Unrealized Losses |   |    | Fair Value |   |   | Gross Unrealized Losses |   |   | Fair Value |   |   | Gross Unrealized Losses |   |
| September 30, 2009:                  |   |                |    |   |                    |   |    |       |   |   |   |   |   |   |   |   |   |   |
| Commercial MBS privateplacement      |   | $                   | 2,500   |   |                    | $      | (303    | )          |   | $ | 17,081 |   |   | $ | (53,707 | ) |   | $ | 19,581 |   |   | $ | (54,010 | ) |
| Total temporarilyimpaired securities |   | $                   | 2,500   |   |                    | $      | (303    | )          |   | $ | 17,081 |   |   | $ | (53,707 | ) |   | $ | 19,581 |   |   | $ | (54,010 | )  |
|                                 |   |                |    |   |                    |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2008:                   |   |                |    |   |                    |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial MBS privateplacement      |   | $                   | − |   |                    | $      | − |       |   | $ | 29,215 |   |   | $ | (41,243 | ) |   | $ | 29,215 |   |   | $ | (41,243 | ) |
| Other ABS                            |   |                | − |   |                    |   | − |       |   |   | 45 |   |   |   | (5,620 | ) |   |   | 45 |   |   |   | (5,620 | ) |
| Total temporarilyimpaired securities |   | $                   | − |   |                    | $      | − |       |   | $ | 29,260 |   |   | $ | (46,863 | ) |   | $ | 29,260 |   |   | $ | (46,863 | ) |

|   | ● | the length of time the market value has been less than amortized cost; |
|--------|---------|------------------------------------------------------------------------|

|   | ● | the severity of the impairment; |
|--------|---------|---------------------------------|

|   | ● | the expected loss of the security as generated by third party software; |
|--------|---------|-------------------------------------------------------------------------|

|   | ● | credit ratings from the rating agencies; |
|--------|---------|------------------------------------------|

|   | ● | underlying credit fundamentals of the collateral backing the securities; and |
|--------|---------|------------------------------------------------------------------------------|

|   | ● | the Company’s intent to sell as well as the likelihood that the Company will be required to sell the security before the recovery of the amortized cost basis. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | an income approach utilizing an appropriate current risk-adjusted yield, time value and projected estimated losses from default assumptions based on historical analysis of underlying loan performance; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | quotes on similar-vintage, higher rated, more actively traded CMBS adjusted for the lower subordination level of our securities; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | dealer quotes on the Company’s securities for which there is not an active market. |
|--------|------|------------------------------------------------------------------------------------------|

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|                        |   | Amortized Cost |   |   | Unrealized Gains |   |    | Unrealized Losses |   |   | Fair Value |   |
|-----------------------------|--------|----------------|--------|--------|------------------|--------|---------|-------------------|--------|--------|------------|--------|
| September 30, 2009:         |   |           |   |   |             |   |    |              |   |   |       |   |
| Securities held-to-maturity |   | $              | 32,624 |   |             | $      | 592     |              |   | $      | (16,372    | )      |   | $ | 16,844 |   |
| Total                       |   | $              | 32,624 |   |             | $      | 592     |              |   | $      | (16,372    | )      |   | $ | 16,844 |   |
|                        |   |           |   |   |             |   |    |              |   |   |       |   |   |   |   |   |
| December 31, 2008:          |   |           |   |   |             |   |    |              |   |   |       |   |   |   |   |   |
| Securities held-to-maturity |   | $              | 28,157 |   |             | $      | − |              |   | $      | (23,339    | )      |   | $ | 4,818 |   |
| Total                       |   | $              | 28,157 |   |             | $      | − |              |   | $      | (23,339    | )      |   | $ | 4,818 |   |

| Contractual Life                                |   | Fair Value |   |   | Amortized Cost |   |
|-------------------------------------------------|--------|------------|--------|--------|----------------|--------|
| September 30, 2009:                             |   |       |   |   |           |   |
| Greater than five years and less than ten years |   | $          | 12,439 |   |           | $      | 20,533 |   |
| Greater than ten years                          |   |       | 4,405  |   |           |   | 12,091 |   |
| Total                                           |   | $          | 16,844 |   |           | $      | 32,624 |   |
|                                            |   |       |   |   |           |   |   |   |
| December 31, 2008:                              |   |       |   |   |           |   |   |   |
| Greater than five years and less than ten years |   | $          | 3,093  |   |           | $      | 12,487 |   |
| Greater than ten years                          |   |       | 1,725  |   |           |   | 15,670 |   |
| Total                                           |   | $          | 4,818  |   |           | $      | 28,157 |   |

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| Loan Description                                                 |   | Principal |      |   | Unamortized(Discount)Premium |   |    | CarryingValue (1) |   |
|------------------------------------------------------------------|--------|-----------|-----------|--------|------------------------------|--------|---------|-------------------|--------|
| September 30, 2009:                                              |   |      |      |   |                         |   |    |              |   |
| Bank loans, including $15.1 million in loans held for sale       |   | $         | 899,864   |   |                         | $      | (21,921 | )                 |   | $ | 877,943 |   |
| Commercial real estate loans:                                    |   |      |      |   |                         |   |    |              |   |   |   |   |
| Whole loans                                                      |   |      | 490,088   |   |                         |   | (481    | )                 |   |   | 489,607 |   |
| B notes                                                          |   |      | 81,586    |   |                         |   | 36      |              |   |   | 81,622 |   |
| Mezzanine loans                                                  |   |      | 214,914   |   |                         |   | (4,474  | )                 |   |   | 210,440 |   |
| Total commercial real estate loans                               |   |      | 786,588   |   |                         |   | (4,919  | )                 |   |   | 781,669 |   |
| Subtotal loans before allowances                                 |   |      | 1,686,452 |   |                         |   | (26,840 | )                 |   |   | 1,659,612 |   |
| Allowance for loan loss                                          |   |      | (59,434   | )      |                         |   | − |              |   |   | (59,434 | ) |
| Total                                                            |   | $         | 1,627,018 |   |                         | $      | (26,840 | )                 |   | $ | 1,600,178 |   |
|                                                             |   |      |      |   |                         |   |    |              |   |   |   |   |
| December 31, 2008:                                               |   |      |      |   |                         |   |    |              |   |   |   |   |
| Bank loans, including $9.0 million in loans held for sale . |   | $         | 916,966   |   |                         | $      | (7,616  | )                 |   | $ | 909,350 |   |
| Commercial real estate loans:                                    |   |      |      |   |                         |   |    |              |   |   |   |   |
| Whole loans                                                      |   |      | 521,015   |   |                         |   | (1,678  | )                 |   |   | 519,337 |   |
| B notes                                                          |   |      | 89,005    |   |                         |   | 64      |              |   |   | 89,069 |   |
| Mezzanine loans                                                  |   |      | 215,255   |   |                         |   | (4,522  | )                 |   |   | 210,733 |   |
| Total commercial real estate loans                               |   |      | 825,275   |   |                         |   | (6,136  | )                 |   |   | 819,139 |   |
| Subtotal loans before allowances                                 |   |      | 1,742,241 |   |                         |   | (13,752 | )                 |   |   | 1,728,489 |   |
| Allowance for loan loss                                          |   |      | (43,867   | )      |                         |   | − |              |   |   | (43,867 | ) |
| Total                                                            |   | $         | 1,698,374 |   |                         | $      | (13,752 | )                 |   | $ | 1,684,622 |   |

----

| (1) | Substantially all loans are pledged as collateral under various borrowings at September 30, 2009 and December 31, 2008. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| Allowance for loan loss at January 1, 2008    |   | $      | 5,918   |   |
|-----------------------------------------------|--------|--------|---------|--------|
| Provision for loan loss                       |   |   | 45,259  |   |
| Loans charged-off                             |   |   | (7,310  | )      |
| Recoveries                                    |   |   | − |   |
| Allowance for loan loss at December 31, 2008  |   |   | 43,867  |   |
| Provision for loan loss                       |   |   | 31,183  |   |
| Loans charged-off                             |   |   | (15,616 | )      |
| Recoveries                                    |   |   | − |   |
| Allowance for loan loss at September 30, 2009 |   | $      | 59,434  |   |

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| Description                        |   | Quantity |   |   | Amortized Cost |   | ContractedInterest Rates | Range ofMaturity Dates |
|------------------------------------|--------|----------|--------|--------|----------------|--------|--------------------------|------------------------|
| September 30, 2009:                |   |     |   |   |           |   |                     |                   |
| Whole loans, floating rate (1)     |   |     | 31     |   |           | $      | 410,107                  |                   | LIBOR plus 1.50% to LIBOR plus 4.40% | February 2010 (3) toDecember 2016 |
| Whole loans, fixed rate (1)   |   |     | 6      |   |           |   | 79,500                   |                   | 6.98% to 10.00% | February 2010 toAugust 2012 |
| B notes, floating rate             |   |     | 3      |   |           |   | 26,500                   |                   | LIBOR plus 2.50% to LIBOR plus 3.01% | July 2010 toOctober 2010 |
| B notes, fixed rate                |   |     | 3      |   |           |   | 55,122                   |                   | 7.00% to 8.68% | July 2011 toJuly 2016 |
| Mezzanine loans, floating rate     |   |     | 10     |   |           |   | 129,107                  |                   | LIBOR plus 2.15% to LIBOR plus 3.45% | December 2009 toOctober 2010 |
| Mezzanine loans, fixed rate        |   |     | 7      |   |           |   | 81,333                   |                   | 5.78% to 11.00% | November 2009 toSeptember 2016 |
| Total (2)                     |   |     | 60     |   |           | $      | 781,669                  |                   |   |   |
| December 31, 2008:                 |   |     |   |   |           |   |                     |                   |   |   |
| Whole loans, floating rate (1)     |   |     | 29     |   |           | $      | 431,985                  |                   | LIBOR plus 1.50% to LIBOR plus 4.40% | April 2009 toAugust 2011 |
| Whole loans, fixed rates (1)  |   |     | 7      |   |           |   | 87,352                   |                   | 6.98% to 10.00% | May 2009 toAugust 2012 |
| B notes, floating rate             |   |     | 4      |   |           |   | 33,535                   |                   | LIBOR plus 2.50% to LIBOR plus 3.01% | March 2009 toOctober 2009 |
| B notes, fixed rate                |   |     | 3      |   |           |   | 55,534                   |                   | 7.00% to 8.68% | July 2011 toJuly 2016 |
| Mezzanine loans, floating rate     |   |     | 10     |   |           |   | 129,459                  |                   | LIBOR plus 2.15% to LIBOR plus 3.45% | May 2009 toFebruary 2010 |
| Mezzanine loans, fixed rate        |   |     | 7      |   |           |   | 81,274                   |                   | 5.78% to 11.00% | November 2009 toSeptember 2016 |
| Total (2)                     |   |     | 60     |   |           | $      | 819,139                  |                   |   |   |

----

| (1) | Whole loans had $10.6 million and $26.6 million in unfunded loan commitments as of September 30, 2009 and December 31, 2008, respectively, that are funded as the loans require additional funding and the related borrowers have satisfied the requirements to obtain this additional funding. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The total does not include an allowance for loan losses of $28.4 million and $15.1 million recorded as of September 30, 2009 and December 31, 2008, respectively. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Excludes two floating rate whole loans.  One whole loan matured in July 2009 and is in foreclosure.  The other whole loan matured and is on a month-to-month extension.  This loan is current with respect to interest.  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Allowance for lease loss at January 1, 2008    |   | $      | − |   |
|------------------------------------------------|--------|--------|---------|--------|
| Provision for lease loss                       |   |   | 901     |   |
| Leases charged-off                             |   |   | (451    | )      |
| Recoveries                                     |   |   | − |   |
| Allowance for lease loss at December 31, 2008  |   |   | 450     |   |
| Provision for lease loss                       |   |   | 1,428   |   |
| Leases charged-off                             |   |   | (978    | )      |
| Recoveries                                     |   |   | − |   |
| Allowance for lease loss at September 30, 2009 |   | $      | 900     |   |

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|                                         |   | Outstanding Borrowings |      |   | Weighted Average Borrowing Rate |   | Weighted Average Remaining Maturity |   | Fair Value of Collateral |   |
|----------------------------------------------|--------|------------------------|-----------|--------|---------------------------------|--------|-------------------------------------|--------|--------------------------|--------|
| September 30, 2009:                          |   |                   |      |   |                            |   |                                |   |                     |   |
| Repurchase Agreements (1)               |   | $                      | 54        |   |                            |   | 3.50%                               |   | 25.0 days                |   | $ | 3,894 |   |
| RREF CDO 2006-1 Senior Notes (2)             |   |                   | 240,052   |   |                            |   | 1.12%                               |   | 36.9 years               |   |   | 293,992 |   |
| RREF CDO 2007-1 Senior Notes (3)             |   |                   | 378,649   |   |                            |   | 0.88%                               |   | 37.0 years               |   |   | 442,927 |   |
| Apidos CDO I Senior Notes (4)           |   |                   | 318,942   |   |                            |   | 1.08%                               |   |   7.8 years    |   |   | 292,408 |   |
| Apidos CDO III Senior Notes (5)         |   |                   | 260,028   |   |                            |   | 0.75%                               |   | 10.7 years               |   |   | 229,183 |   |
| Apidos Cinco CDO Senior Notes (6)            |   |                   | 318,646   |   |                            |   | 0.96%                               |   | 10.6 years               |   |   | 291,607 |   |
| Unsecured Junior Subordinated Debentures (7) |   |                   | 51,548    |   |                            |   | 4.49%                               |   | 26.9 years               |   |   | − |   |
| Total                                        |   | $                      | 1,567,919 |   |                            |   | 1.07%                               |   | 21.0 years               |   | $ | 1,554,011 |   |
| December 31, 2008:                           |   |                   |      |   |                            |   |                                |   |                     |   |   |   |   |
| Repurchase Agreements (1)               |   | $                      | 17,112    |   |                            |   | 3.50%                               |   | 18.0 days                |   | $ | 39,703 |   |
| RREF CDO 2006-1 Senior Notes (2)             |   |                   | 261,198   |   |                            |   | 1.38%                               |   | 37.6 years               |   |   | 322,269 |   |
| RREF CDO 2007-1 Senior Notes (3)             |   |                   | 377,851   |   |                            |   | 1.15%                               |   | 37.8 years               |   |   | 467,310 |   |
| Apidos CDO I Senior Notes (4)           |   |                   | 318,469   |   |                            |   | 4.03%                               |   | 8.6 years                |   |   | 206,799 |   |
| Apidos CDO III Senior Notes (5)         |   |                   | 259,648   |   |                            |   | 2.55%                               |   | 11.5 years               |   |   | 167,933 |   |
| Apidos Cinco CDO Senior Notes (6)            |   |                   | 318,223   |   |                            |   | 2.64%                               |   | 11.4 years               |   |   | 207,684 |   |
| Secured Term Facility                        |   |                   | 95,714    |   |                            |   | 4.14%                               |   | 1.3 years                |   |   | 104,015 |   |
| Unsecured Junior Subordinated Debentures (7) |   |                   | 51,548    |   |                            |   | 6.42%                               |   | 27.7 years               |   |   | − |   |
| Total                                        |   | $                      | 1,699,763 |   |                            |   | 2.57%                               |   | 20.6 years               |   | $ | 1,515,713 |   |

----

| (1) | At September 30, 2009, collateral consisted of a RREF CDO 2007-1 Class H bond that was retained at closing with a carrying value of $3.9 million.  At December 31, 2008, collateral consisted of the RREF CDO 2007-1 Class H bond with a carrying value of $3.9 million and loans with a fair value of $35.8 million. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Amount represents principal outstanding of $243.5 million less unamortized issuance costs of $3.5 million as of September 30, 2009.  Amount represents principal outstanding of $265.5 million less unamortized issuance costs of $4.3 million as of December 31, 2008.  This CDO transaction closed in August 2006. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Amount represents principal outstanding of $383.9 million less unamortized issuance costs of $5.3 million as of September 30, 2009 and principal outstanding of $383.8 million less unamortized issuance costs of $5.9 million as of December 31, 2008.  This CDO transaction closed in June 2007. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Amount represents principal outstanding of $321.5 million less unamortized issuance costs of $2.6 million as of September 30, 2009 and $3.0 million as of December 31, 2008.  This CDO transaction closed in August 2005. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Amount represents principal outstanding of $262.5 million less unamortized issuance costs of $2.5 million as of September 30, 2009 and $2.9 million as of December 31, 2008.  This CDO transaction closed in May 2006. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Amount represents principal outstanding of $322.0 million less unamortized issuance costs of $3.4 million as of September 30, 2009 and $3.8 million as of December 31, 2008.  This CDO transaction closed in May 2007. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Amount represents junior subordinated debentures issued to Resource Capital Trust I and RCC Trust II in May 2006 and September 2006, respectively. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------|

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|                               |   | Amount at Risk (1) |   |   | Weighted Average Maturity in Days |   |   | Weighted Average Interest Rate |   |
|------------------------------------|--------|--------------------|--------|--------|-----------------------------------|--------|--------|--------------------------------|--------|
| September 30, 2009:                |   |               |   |   |                              |   |   |                           |   |
| Credit Suisse Securities (USA) LLC |   | $                  | 3,842  |   |                              |   | 25     |                           |   |   | 3.50% |   |
|                               |   |               |   |   |                              |   |   |                           |   |   |   |   |
| December 31, 2008:                 |   |               |   |   |                              |   |   |                           |   |   |   |   |
| Natixis Real Estate Capital Inc.   |   | $                  | 18,992 |   |                              |   | 18     |                           |   |   | 3.50% |   |
| Credit Suisse Securities (USA) LLC |   | $                  | 3,793  |   |                              |   | 23     |                           |   |   | 4.50% |   |

----

| (1) | Equal to the estimated fair value of securities or loans sold, plus accrued interest income, minus the sum of repurchase agreement liabilities plus accrued interest expense. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The amount of the facility was reduced from $150,000,000 to $100,000,000. |
|--------|---------|---------------------------------------------------------------------------|

|   | ● | The amount of the facility will further be reduced to the amount outstanding on October 18, 2009. |
|--------|---------|---------------------------------------------------------------------------------------------------|

|   | ● | Beginning on November 25, 2008, any further repurchase agreement transactions may be made in Natixis’ sole discretion.  In addition, premiums over new repurchase prices are required for early repurchase by RCC Real Estate SPE 3 of the Existing Assets that represent collateral under the facility; however, the premiums will reduce the repurchase price of the remaining Existing Assets. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | RCC Real Estate SPE 3’s obligation to pay non-usage fees was terminated. |
|--------|---------|--------------------------------------------------------------------------------|

|   | ● | The weighted average undrawn balance (as defined in the agreement) threshold exempting payment of the non-usage fee was reduced from $75,000,000 to $56,250,000. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | The minimum net worth covenant amount was reduced from $250,000,000 to $125,000,000. |
|--------|---------|--------------------------------------------------------------------------------------|

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|                                     |   | Non-Employee Directors |    |   | Non-Employees |   |     | Total  |   |
|------------------------------------------|--------|------------------------|---------|--------|---------------|--------|----------|--------|--------|
| Unvested shares as of January 1, 2009    |   |                   | 17,261  |   |          |   | 435,049  |   |   |   | 452,310 |   |
| Issued                                   |   |                   | 52,632  |   |          |   | 197,500  |   |   |   | 250,132 |   |
| Vested                                   |   |                   | (17,261 | )      |          |   | (212,854 | )      |   |   | (230,115 | ) |
| Forfeited                                |   |                   | − |   |          |   | (8,191   | )      |   |   | (8,191 | ) |
| Unvested shares as of September 30, 2009 |   |                   | 52,632  |   |          |   | 411,504  |   |   |   | 464,136 |   |

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----

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|                                 |   | Number of Options |    |   | Weighted Average Exercise Price |   |    | Weighted Average Remaining Contractual Term (in years) |   |   | Aggregate Intrinsic Value (in thousands) |   |
|--------------------------------------|--------|-------------------|---------|--------|---------------------------------|--------|---------|--------------------------------------------------------|--------|--------|------------------------------------------|--------|
| Outstanding as of January 1, 2009    |   |              | 624,166 |   |                            | $      | 14.99   |                                                   |   |   |                                     |   |   |   |
| Granted                              |   |              | − |   |                            |   | − |                                                   |   |   |                                     |   |   |   |
| Exercised                            |   |              | − |   |                            |   | − |                                                   |   |   |                                     |   |   |   |
| Forfeited                            |   |              | − |   |                            |   | − |                                                   |   |   |                                     |   |   |   |
| Outstanding as of September 30, 2009 |   |              | 624,166 |   |                            | $      | 14.99   |                                                   |   |   | 6                                        |   |   | $ | 588 |   |
| Exercisable at September 30, 2009    |   |              | 602,500 |   |                            | $      | 14.99   |                                                   |   |   | 6                                        |   |   | $ | 567 |   |

| Unvested Options               |   | Options |    |   | Weighted Average Grant DateFair Value |   |
|--------------------------------|--------|---------|---------|--------|---------------------------------------|--------|
| Unvested at January 1, 2009    |   |    | 43,333  |   |                                  | $      | 14.88 |   |
| Granted                        |   |    | − |   |                                  |   | − |   |
| Vested                         |   |    | (21,667 | )      |                                  | $      | 14.88 |   |
| Forfeited                      |   |    | − |   |                                  |   | − |   |
| Unvested at September 30, 2009 |   |    | 21,666  |   |                                  | $      | 14.88 |   |

| Vested Options                  |   | Number of Options |    |   | Weighted Average Exercise Price |   | Weighted Average Remaining Contractual Term (in years) |   | Aggregate Intrinsic Value (in thousands) |
|---------------------------------|--------|-------------------|---------|--------|---------------------------------|--------|--------------------------------------------------------|--------|------------------------------------------|
| Vested as of January 1, 2009    |   |              | 580,833 |   |                            | $      | 15.00                                                  |   |                                     |   |   |
| Vested                          |   |              | 21,667  |   |                            | $      | 14.88                                                  |   |                                     |   |   |
| Exercised                       |   |              | − |   |                            |   | −                                                |   |                                     |   |   |
| Forfeited                       |   |              | − |   |                            | $      | −                                                |   |                                     |   |   |
| Vested as of September 30, 2009 |   |              | 602,500 |   |                            | $      | 14.99                                                  |   | 6                                        |   | $        567 |

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|           |   | As ofSeptember 30, |               |   | As ofDecember 31, |   |
|----------------|--------|--------------------|--------------------|--------|-------------------|--------|
|           |   | 2009               |               |   | 2008              |   |
| Expected life  |   | 8 years            |               |   | 8 years           |   |
| Discount rate  |   |               |    3.48% |   |              |   |    2.94% |   |
| Volatility     |   |               | 172.44%            |   |              |   | 127.20% |   |
| Dividend yield |   |               |   22.06%      |   |              |   |   33.94% |   |

|                                                  |   | Three Months Ended |   |   | Nine Months Ended |   |
|-------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                  |   | September 30,      |   |   | September 30,     |   |
|                                                  |   | 2009               |   |   | 2008              |   |   | 2009 |   |   | 2008 |   |
| Options granted to Manager and non-employees          |   | $                  | 13     |   |              | $      | − |   |   | $ | 14 |   |   | $ | (54 | ) |
| Restricted shares granted to Manager andnon-employees |   |               | 680    |   |              |   | 129 |   |   |   | 976 |   |   |   | 755 |   |
| Restricted shares granted to non-employeedirectors    |   |               | 28     |   |              |   | 28 |   |   |   | 84 |   |   |   | 78 |   |
| Total equity compensation expense                     |   | $                  | 721    |   |              | $      | 157 |   |   | $ | 1,074 |   |   | $ | 779 |   |

|                                                               |   | Three Months Ended |       |   | Nine Months Ended |   |
|--------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                               |   | September 30,      |       |   | September 30,     |   |
|                                                               |   | 2009               |       |   | 2008              |   |   | 2009 |   |   | 2008 |   |
| Basic:                                                             |   |               |       |   |              |   |   |   |   |   |   |   |
| Net income (loss)                                                  |   | $                  | 11,528     |   |              | $      | 88 |   |   | $ | (5,751 | ) |   | $ | 4,194 |   |
| Weighted average number of shares outstanding                      |   |               | 24,112,240 |   |              |   | 24,814,789 |   |   |   | 24,321,007 |   |   |   | 24,719,889 |   |
| Basic net income (loss) income per share                           |   | $                  | 0.48       |   |              | $      | 0.00 |   |   | $ | (0.24 | ) |   | $ | 0.17 |   |
|                                                               |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Diluted:                                                           |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                  |   | $                  | 11,528     |   |              | $      | 88 |   |   | $ | (5,751 | ) |   | $ | 4,194 |   |
| Weighted average number of shares outstanding                      |   |               | 24,112,240 |   |              |   | 24,814,789 |   |   |   | 24,321,007 |   |   |   | 24,719,889 |   |
| Additional shares due to assumed conversion ofdilutive instruments |   |               | 264,441    |   |              |   | 239,507 |   |   |   | − |   |   |   | 170,076 |   |
| Adjusted weighted-average number of commonshares outstanding       |   |               | 24,376,681 |   |              |   | 25,054,296 |   |   |   | 24,321,007 |   |   |   | 24,889,965 |   |
| Diluted net income (loss) per share                                |   | $                  | 0.47       |   |              | $      | 0.00 |   |   | $ | (0.24 | ) |   | $ | 0.17 |   |

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|   | i. | using an income approach and utilizing an appropriate current risk-adjusted, time value and projected estimated losses from default assumptions based upon underlying loan performance; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | quotes on similar-vintage, higher rate, more actively traded CMBS securities adjusted for the lower subordinated level of the Company’s securities; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | dealer quotes on the Company’s securities for which there is not an active market. |
|--------|------|------------------------------------------------------------------------------------------|

| Assets and liabilities measured on a recurring basis |   |
|------------------------------------------------------|--------|
|                                                 |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets:                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities available-for-sale                        |   | $ | − |   |   | $ | − |   |   | $ | 40,599 |   |   | $ | 40,599 |   |
| Total assets at fair value                           |   | $ | − |   |   | $ | − |   |   | $ | 40,599 |   |   | $ | 40,599 |   |
| Liabilities:                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives (net)                                    |   | $ | − |   |   | $ | 15,658 |   |   | $ | − |   |   | $ | 15,658 |   |
| Total liabilities at fair value                      |   | $ | − |   |   | $ | 15,658 |   |   | $ | − |   |   | $ | 15,658 |   |

|                                               |   | Level 3 |   |
|----------------------------------------------------|--------|---------|--------|
| Beginning balance, January 1, 2009                 |   | $       | 29,260 |   |
| Total gains or losses (realized/unrealized):       |   |    |   |   |
| Included in earnings                               |   |    | (4,999 | ) |
| Purchases, sales, issuances, and settlements (net) |   |    | 20,132 |   |
| Included in other comprehensive income             |   |    | (3,794 | ) |
| Ending balance, September 30, 2009                 |   | $       | 40,599 |   |

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| Assets and liabilities measured on a nonrecurring basis |   |
|---------------------------------------------------------|--------|
|                                                    |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets:                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans held for sale                                     |   | $ | − |   |   | $ | 15,103 |   |   | $ | − |   |   | $ | 15,103 |   |
| Securities held-to-maturity                             |   |   | − |   |   |   | 1,208 |   |   |   | − |   |   |   | 1,208 |   |
| Impaired loans                                          |   |   | − |   |   |   | 9,114 |   |   |   | 71,304 |   |   |   | 80,418 |   |
| Total assets at fair value                              |   | $ | − |   |   | $ | 25,425 |   |   | $ | 71,304 |   |   | $ | 96,729 |   |

|                        |   | Fair Value of Financial Instruments |      |
|-----------------------------|--------|-------------------------------------|-----------|
|                        |   | (in thousands)                      |      |
|                        |   | September 30, 2009                  |      |   | December 31, 2008 |   |
|                        |   | Carrying value                      |      |   | Fair value |   |   | Carrying value |   |   | Fair value |   |
| Securities held to maturity |   | $                                   | 32,624    |   |   | $ | 16,844 |   |   | $ | 28,157 |   |   | $ | 4,818 |   |
| Loans held-for-investment   |   | $                                   | 1,585,075 |   |   | $ | 1,535,994 |   |   | $ | 1,684,622 |   |   | $ | 1,033,109 |   |
| CDOs                        |   | $                                   | 1,516,317 |   |   | $ | 808,689 |   |   | $ | 1,535,389 |   |   | $ | 690,926 |   |
| Junior subordinated notes   |   | $                                   | 51,548    |   |   | $ | 20,619 |   |   | $ | 51,548 |   |   | $ | 10,310 |   |

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| Fair Value of Derivative Instruments as of September 30, 2009(in thousands) |   |
|-----------------------------------------------------------------------------|--------|
|                                                                        |   | Liability Derivatives |   |
|                                                                        |   | Notional Amount |   | Balance Sheet Location |   | Fair Value |   |
| Derivatives not designated as hedging instrumentsunder SFAS 133             |   |   |   |   |   |   |   |
| Interest rate cap agreement                                                 |   | $ | 14,841 |   | Derivatives, at fair value |   | $ | 70 |   |
|                                                                        |   |   |   |   |   |   |   |   |   |
| Derivatives designated as hedging instrumentsunder SFAS 133                 |   |   |   |   |   |   |   |   |   |
| Interest rate swap contracts                                                |   | $ | 228,106 |   | Derivatives, at fair value |   | $ | (15,728 | ) |
|                                                                        |   |   |   |   | Accumulated other comprehensive loss |   | $ | 15,728 |   |

| The Effect of Derivative Instruments on the Statement of Operations for theNine Months Ended September 30, 2009(in thousands) |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                          |   | Liability Derivatives |   |
|                                                                                                                          |   | Notional Amount |   | Statement of Operations  Location |   | Unrealized Loss (1) |   |
| Derivatives not designated as hedging instrumentsunder SFAS 133                                                               |   |   |   |   |   |   |   |
| Interest rate cap agreement                                                                                                   |   | $ | 14,841 |   | Interest expense |   | $ | 65 |   |

----

| (1) | Negative values indicate a decrease to the associated balance sheet or consolidated statement of operations line items. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

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|   | ● | The Company received $4.1 million in proceeds related to the issuance of 809,769 shares of common stock under the Company’s dividend reinvestment plan during October 2009. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | In October 2009, the Company amended its unsecured junior subordinated debentures with a total value outstanding of $51.5 million.  The amendment provides for an interest rate increase of 2% (from 3.95% plus LIBOR to 5.95% plus LIBOR) on both deals of a period of two years and a one-time restructuring fee of $250,000 in exchange for the waiver of the financial covenants.  The interest rate adjustmenttakes effect as of October 1, 2009 and expires on September 30, 2011 and the covenant waiver expires on January 1, 2012. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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ITEM 2. 

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|   | ● | $7.0 million of commercial real estate loans paid off; |
|--------|---------|--------------------------------------------------------|

|   | ● | $36.8 million of commercial real estate loans principal repayments; |
|--------|---------|---------------------------------------------------------------------|

|   | ● | $51.3 million of bank loan principal repayments; and |
|--------|---------|------------------------------------------------------|

|   | ● | $82.4 million of bank loan sale proceeds. |
|--------|---------|-------------------------------------------|

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| Allowance for loan loss at January 1, 2009     |   | $      | 43,867  |   |
|------------------------------------------------|--------|--------|---------|--------|
| Provision for loan loss                        |   |   | 31,183  |   |
| Loans charged-off                              |   |   | (15,616 | )      |
| Recoveries                                     |   |   | − |   |
| Allowance for loan loss at September 30, 2009  |   | $      | 59,434  |   |
| Allowance for lease loss at January 1, 2009    |   | $      | 450     |   |
| Provision for lease loss                       |   |   | 1,428   |   |
| Leases charged-off                             |   |   | (978    | )      |
| Recoveries                                     |   |   | − |   |
| Allowance for lease loss at September 30, 2009 |   | $      | 900     |   |

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|   | i. | using an income approach and utilizing an appropriate current risk-adjusted, time value and projected estimated losses from default assumptions based upon underlying loan performance; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | quotes on similar-vintage, higher rate, more actively traded CMBS securities adjusted for the lower subordinated level of our securities; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | dealer quotes on our securities for which there is not an active market. |
|--------|------|--------------------------------------------------------------------------|

| Assets and liabilities measured on a recurring basis |   |
|------------------------------------------------------|--------|
|                                                 |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
| Assets:                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities available-for-sale                        |   | $ | − |   |   | $ | − |   |   | $ | 40,599 |   |   | $ | 40,599 |   |
| Total assets at fair value                           |   | $ | − |   |   | $ | − |   |   | $ | 40,599 |   |   | $ | 40,599 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives (net)                                    |   | $ | − |   |   | $ | 15,658 |   |   | $ | − |   |   | $ | 15,658 |   |
| Total liabilities at fair value                      |   | $ | − |   |   | $ | 15,658 |   |   | $ | − |   |   | $ | 15,658 |   |

|                                               |   | Level 3 |   |
|----------------------------------------------------|--------|---------|--------|
| Beginning balance, January 1, 2009                 |   | $       | 29,260 |   |
| Total gains or losses (realized/unrealized):       |   |    |   |   |
| Included in earnings                               |   |    | (4,999 | ) |
| Purchases, sales, issuances, and settlements (net) |   |    | 20,132 |   |
| Included in other comprehensive income             |   |    | (3,794 | ) |
| Ending balance, September 30, 2009                 |   | $       | 40,599 |   |

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|                                                    |   | Three Months Ended |   |   | Three Months Ended |   |
|---------------------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|
|                                                    |   | September 30, 2009 |   |   | September 30, 2008 |   |
|                                                    |   |               |   |   | Weighted Average   |   |   |   |   |   | Weighted Average |   |
|                                                    |   | Interest Income    |   |   | Yield              |   |   | Balance |   |   | Interest Income |   |   | Yield |   |   | Balance |   |
| Interest income from loans:                             |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank loans                                              |   | $                  | 8,444  |   |               |   | 3.64% |   |   | $ | 917,495 |   |   | $ | 12,264 |   |   |   | 5.19% |   |   | $ | 925,659 |   |
| Commercial real estate loans                            |   |               | 11,763 |   |               |   | 5.95% |   |   | $ | 783,682 |   |   |   | 16,314 |   |   |   | 7.34% |   |   | $ | 845,021 |   |
| Total interest income fromloans                         |   |               | 20,207 |   |               |   |   |   |   |   |   |   |   |   | 28,578 |   |   |   |   |   |   |   |   |   |
|                                                    |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income from securities:                        |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CMBS-private placement                                  |   |               | 1,509  |   |               |   | 6.25% |   |   | $ | 95,334 |   |   |   | 1,062 |   |   |   | 5.68% |   |   | $ | 74,218 |   |
| Securities held-to-maturity                             |   |               | 397    |   |               |   | 4.84% |   |   | $ | 34,256 |   |   |   | 325 |   |   |   | 5.00% |   |   | $ | 27,247 |   |
| Total interest income fromsecurities available-for-sale |   |               | 1,906  |   |               |   |   |   |   |   |   |   |   |   | 1,387 |   |   |   |   |   |   |   |   |   |
|                                                    |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Leasing                                                 |   |               | 11     |   |               |   | 1.70% |   |   | $ | 2,603 |   |   |   | 1,995 |   |   |   | 8.68% |   |   | $ | 89,729 |   |
|                                                    |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income – other:                          |   |               |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Temporary investmentin over-night repurchaseagreements  |   |               | 377    |   |               |   | N/A |   |   |   | N/A |   |   |   | 352 |   |   |   | N/A |   |   |   | N/A |   |
| Total interest income − other                     |   |               | 377    |   |               |   |   |   |   |   |   |   |   |   | 352 |   |   |   |   |   |   |   |   |   |
| Total interest income                                   |   | $                  | 22,501 |   |               |   |   |   |   |   |   |   |   | $ | 32,312 |   |   |   |   |   |   |   |   |   |

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|                                                    |   | Nine Months Ended  |    |   | Nine Months Ended  |   |
|---------------------------------------------------------|--------|--------------------|---------|--------|--------------------|--------|
|                                                    |   | September 30, 2009 |    |   | September 30, 2008 |   |
|                                                    |   |               |    |   | Weighted Average   |   |   |   |   |   | Weighted Average |   |
|                                                    |   | Interest Income    |    |   | Yield              |   |   | Balance |   |   | Interest Income |   |   | Yield |   |   | Balance |   |
| Interest income from loans:                             |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank loans                                              |   | $                  | 25,863  |   |               |   | 3.77% |   |   | $ | 923,324 |   |   | $ | 40,246 |   |   |   | 5.66% |   |   | $ | 920,930 |   |
| Commercial real estate loans                            |   |               | 38,470  |   |               |   | 6.39% |   |   | $ | 792,070 |   |   |   | 48,639 |   |   |   | 7.31% |   |   | $ | 849,384 |   |
| Total interest income fromloans                         |   |               | 64,333  |   |               |   |   |   |   |   |   |   |   |   | 88,885 |   |   |   |   |   |   |   |   |   |
|                                                    |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income from securities:                        |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other ABS                                               |   |               | − |   |               |   | N/A |   |   |   | N/A |   |   |   | 19 |   |   |   | 0.24% |   |   | $ | 6,000 |   |
| CMBS-private placement                                  |   |               | 3,274   |   |               |   | 5.32% |   |   | $ | 81,281 |   |   |   | 3,382 |   |   |   | 5.50% |   |   | $ | 76,909 |   |
| Securities held-to-maturity                             |   |               | 1,400   |   |               |   | 5.68% |   |   | $ | 32,399 |   |   |   | 1,143 |   |   |   | 6.22% |   |   | $ | 25,390 |   |
| Total interest income fromsecurities available-for-sale |   |               | 4,674   |   |               |   |   |   |   |   |   |   |   |   | 4,544 |   |   |   |   |   |   |   |   |   |
|                                                    |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Leasing                                                 |   |               | 4,337   |   |               |   | 8.6% |   |   | $ | 65,300 |   |   |   | 5,946 |   |   |   | 8.68% |   |   | $ | 92,277 |   |
|                                                    |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income – other:                          |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income – other (1)                  |   |               | − |   |               |   | N/A |   |   |   | N/A |   |   |   | 997 |   |   |   | N/A |   |   |   | N/A |   |
| Temporary investmentin over-night repurchaseagreements  |   |               | 1,053   |   |               |   | N/A |   |   |   | N/A |   |   |   | 1,181 |   |   |   | N/A |   |   |   | N/A |   |
| Total interest income − other                     |   |               | 1,053   |   |               |   |   |   |   |   |   |   |   |   | 2,178 |   |   |   |   |   |   |   |   |   |
| Total interest income                                   |   | $                  | 74,397  |   |               |   |   |   |   |   |   |   |   | $ | 101,553 |   |   |   |   |   |   |   |   |   |

----

| (1) | Represents cash received from Ischus CDO II in excess of our investment balance.  We sold our interest in Ischus CDO II in November 2008 and, as a result, deconsolidated it at that time.  Income on this investment was recognized using the cost recovery method. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | ● | a decrease in the weighted average balance of $61.2 million and $57.3 million on our commercial real estate loans to $783.9 million and $792.1 million for the three and nine months ended September 30, 2009, respectively, from $845.0 million and $849.4 million for the three and nine months ended September 30, 2008, respectively, primarily as a result of payoffs and paydowns and to a lesser extent as a result of write-offstaken on several loans; and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | a decrease in the weighted average interest rate to 5.95% and 6.39% for the three and nine months ended September 30, 2009, respectively, from 7.34% and 7.31% for the three and nine months ended September 30, 2008, respectively, primarily as a result of the decrease in LIBOR which is a reference index for the rates payable by these loans and to a lesser extent as a result of modifications to lower the LIBOR flooron several loans.  For a further discussion of commercial real estate loan modifications, see "-Overview," above. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | an increase in the weighted average rate to 6.25% for the three months ended September 30, 2009 from 5.68% for the three months ended September 30, 2008, primarily as a result of the increase of $335,000 in the accretion of discounts to $447,000 for the three months ended September 30, 2009 from $112,000 for the three months ended September 30, 2008 as a result of new positions purchased at large discounts to parduring the three months ended September 30, 2009.  The increase in accretion was partially offset by a decrease in LIBOR which is a reference index for the rates payable on some of these securities; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | an increase of the weighted average balance on these securities of $21.1 million to $95.3 million for the three months ended September 30, 2009 from $74.2 million for the three months ended September 30, 2008, as a result of the purchase of $34.5 million par of CMBS-private placement positions during the three months ended September 30, 2009. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | a decrease in the weighted average rate to 5.32% for the nine months ended September 30, 2009, from 5.50% for the nine months ended September 30, 2008, primarily as a result of the decrease in LIBOR which is a reference index for the rates payable by these loans.  This decrease in rate was partially offset by an increase in accretion of discounts to $667,000 for the nine months ended September 30, 2009from $334,000 for the nine months ended September 30, 2008 as a result of new positions purchased at large discounts during the three months ended September 30, 2009. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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|                         |   | Three Months Ended |    |   | Three Months Ended |   |
|------------------------------|--------|--------------------|---------|--------|--------------------|--------|
|                         |   | September 30, 2009 |    |   | September 30, 2008 |   |
|                         |   |               |    |   | Weighted Average   |   |   |   |   |   | Weighted Average |   |
|                         |   | Interest Expense   |    |   | Yield              |   |   | Balance |   |   | Interest Expense |   |   | Yield |   |   | Balance |   |
| Bank loans                   |   | $                  | 3,114   |   |               |   | 1.35% |   |   | $ | 906,000 |   |   | $ | 7,993 |   |   |   | 3.46% |   |   | $ | 906,000 |   |
| Commercial real estate loans |   |               | 2,460   |   |               |   | 1.46% |   |   | $ | 645,929 |   |   |   | 6,587 |   |   |   | 3.68% |   |   | $ | 697,190 |   |
| CMBS-private placement       |   |               | − |   |               |   | N/A |   |   |   | N/A |   |   |   | 39 |   |   |   | 3.73% |   |   | $ | 4,181 |   |
| Leasing                      |   |               | − |   |               |   | N/A |   |   |   | N/A |   |   |   | 884 |   |   |   | 4.28% |   |   | $ | 83,192 |   |
| General                      |   |               | 3,629   |   |               |   | 4.92% |   |   | $ | 278,290 |   |   |   | 3,161 |   |   |   | 3.20% |   |   | $ | 379,996 |   |
| Total interest expense       |   | $                  | 9,203   |   |               |   |   |   |   |   |   |   |   | $ | 18,664 |   |   |   |   |   |   |   |   |   |

|                         |   | Nine Months Ended  |    |   | Nine Months Ended  |   |
|------------------------------|--------|--------------------|---------|--------|--------------------|--------|
|                         |   | September 30, 2009 |    |   | September 30, 2008 |   |
|                         |   |               |    |   | Weighted Average   |   |   |   |   |   | Weighted Average |   |
|                         |   | Interest Expense   |    |   | Yield              |   |   | Balance |   |   | Interest Expense |   |   | Yield |   |   | Balance |   |
| Bank loans                   |   | $                  | 12,987  |   |               |   | 1.90% |   |   | $ | 906,000 |   |   | $ | 27,087 |   |   |   | 4.02% |   |   | $ | 906,000 |   |
| Commercial real estate loans |   |               | 7,738   |   |               |   | 1.52% |   |   | $ | 657,752 |   |   |   | 21,689 |   |   |   | 4.21% |   |   | $ | 700,103 |   |
| CMBS-private placement       |   |               | − |   |               |   | N/A |   |   |   | N/A |   |   |   | 126 |   |   |   | 4.24% |   |   | $ | 3,816 |   |
| Leasing                      |   |               | 2,143   |   |               |   | 4.63% |   |   | $ | 58,858 |   |   |   | 3,100 |   |   |   | 4.79% |   |   | $ | 87,469 |   |
| General                      |   |               | 12,960  |   |               |   | 4.92% |   |   | $ | 337,693 |   |   |   | 8,734 |   |   |   | 2.93% |   |   | $ | 386,761 |   |
| Total interest expense       |   | $                  | 35,828  |   |               |   |   |   |   |   |   |   |   | $ | 60,736 |   |   |   |   |   |   |   |   |   |

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|   | ● | a decrease in the weighted average interest rate to 1.46% and 1.52% for the three and nine months ended September 30, 2009, respectively, as compared to 3.68% and 4.21%  for the three and nine months ended September 30, 2008, respectively,  primarily as a result of a decrease in LIBOR which is a reference index for most of the rates payable on this debt; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | a decrease of $51.3 million and $42.3 million in the weighted average balance of debt to $645.9 million and $657.8 million for the three and nine months ended September 30, 2009, respectively, from $697.2 million and $700.1 million for the three and nine months ended September 30, 2008, respectively, primarily related to the paying down of our repurchase facilities as well as the repurchase of our own CDO debt. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                      |   | Three Months Ended |   |   | Nine Months Ended |   |
|-------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                      |   | September 30,      |   |   | September 30,     |   |
|                                      |   | 2009               |   |   | 2008              |   |   | 2009 |   |   | 2008 |   |
| Management fee – related party      |   | $                  | 3,954  |   |              | $      | 1,915 |   |   | $ | 5,880 |   |   | $ | 4,824 |   |
| Equity compensation − related party |   |               | 721    |   |              |   | 157 |   |   |   | 1,074 |   |   |   | 779 |   |
| Professional services                     |   |               | 739    |   |              |   | 773 |   |   |   | 2,792 |   |   |   | 2,229 |   |
| Insurance                                 |   |               | 220    |   |              |   | 171 |   |   |   | 609 |   |   |   | 469 |   |
| General and administrative                |   |               | 410    |   |              |   | 421 |   |   |   | 1,256 |   |   |   | 1,119 |   |
| Income tax expense (benefit)              |   |               | 6      |   |              |   | (33 | ) |   |   | 5 |   |   |   | 134 |   |
| Total                                     |   | $                  | 6,050  |   |              | $      | 3,404 |   |   | $ | 11,616 |   |   | $ | 9,554 |   |

(Back to Index)

----

(Back to Index)

|                                                               |   | Three Months Ended |    |    | Nine Months Ended |   |
|--------------------------------------------------------------------|--------|--------------------|---------|---------|-------------------|--------|
|                                                               |   | September 30,      |    |    | September 30,     |   |
|                                                               |   | 2009               |    |    | 2008              |   |   | 2009 |   |   | 2008 |   |
| Impairment losses on investment securities                         |   | $                  | (3,019  | )  |              | $      | − |   |   | $ | (19,372 | ) |   | $ | − |   |
| Recognized in other comprehensive loss                             |   |               | (2,124  | )       |              |   | − |   |   |   | (12,812 | ) |   |   | − |   |
| Net impairment losses recognized in eanrings                       |   |               | (895    | )       |              |   | − |   |   |   | (6,560 | ) |   |   | − |   |
| Net realized and unrealized (losses) gains onloans and investments |   |               | (1,517  | )       |              |   | 242 |   |   |   | (11,805 | ) |   |   | (1,651 | ) |
| Other (expense) income                                             |   |               | (1,417  | )       |              |   | 27 |   |   |   | (1,375 | ) |   |   | 86 |   |
| Provision for loan and lease losses                                |   |               | (4,632  | )       |              |   | (10,999 | ) |   |   | (32,605 | ) |   |   | (27,828 | ) |
| Gain on the extinguishment of debt                                 |   |               | 12,741  |    |              |   | − |   |   |   | 19,641 |   |   |   | 1,750 |   |
| Gain on the settlement of a loan                                   |   |               | − |    |              |   | 574 |   |   |   | − |   |   |   | 574 |   |
| Total                                                              |   | $                  | 4,280   |    |              | $      | (10,156 | ) |   | $ | (32,704 | ) |   | $ | (27,069 | ) |

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(Back to Index)

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|                                              |   | Amortized cost (3) |      |   | Dollar price |   |    | Net carrying amount |   |   | Dollar price |   |   | Net carrying amount less amortized cost |   |   | Dollar price |   |
|---------------------------------------------------|--------|--------------------|-----------|--------|--------------|--------|---------|---------------------|--------|--------|--------------|--------|--------|-----------------------------------------|--------|--------|--------------|--------|
| September 30, 2009                                |   |               |      |   |         |   |    |                |   |   |         |   |   |                                    |   |   |         |   |
| Floating rate                                     |   |               |      |   |         |   |    |                |   |   |         |   |   |                                    |   |   |         |   |
| CMBS-private placement                            |   | $                  | 32,063    |   |         |   | 100.00% |                |   | $      | 11,712       |   |   |                                    | 36.53% |   |         | $      | (20,351 | ) |   |   | -63.47% |   |
| B notes (1)                                  |   |               | 26,500    |   |         |   | 100.00% |                |   |   | 26,314       |   |   |                                    | 99.30% |   |         |   | (186 | ) |   |   |   -0.70% |   |
| Mezzanine loans (1)                          |   |               | 129,107   |   |         |   | 100.00% |                |   |   | 128,091      |   |   |                                    | 99.21% |   |         |   | (1,016 | ) |   |   |   -0.79% |   |
| Whole loans (1)                              |   |               | 410,107   |   |         |   | 99.94%  |                |   |   | 396,863      |   |   |                                    | 96.71% |   |         |   | (13,244 | ) |   |   |   -3.23% |   |
| Bank loans (2)                               |   |               | 862,840   |   |         |   | 97.52%  |                |   |   | 781,251      |   |   |                                    | 88.30% |   |         |   | (81,589 | ) |   |   |   -9.22% |   |
| Bank loans held for sale (3)                      |   |               | 15,103    |   |         |   | 87.06%  |                |   |   | 15,103       |   |   |                                    | 87.06% |   |         |   | − |   |   |   |        −% |   |
| Asset-backed securitiesheld-to-maturity (4)  |   |               | 32,624    |   |         |   | 91.23%  |                |   |   | 16,844       |   |   |                                    | 47.10% |   |         |   | (15,780 | ) |   |   | -44.13% |   |
| Total floating rate                               |   |               | 1,508,344 |   |         |   | 98.21%  |                |   |   | 1,376,178    |   |   |                                    | 89.60% |   |         |   | (132,166 | ) |   |   |   -8.61% |   |
| Fixed rate                                        |   |               |      |   |         |   |    |                |   |   |         |   |   |                                    |   |   |         |   |   |   |   |   |   |   |
| CMBS – private placement                    |   |               | 59,194    |   |         |   | 77.34%  |                |   |   | 28,887       |   |   |                                    | 37.74% |   |         |   | (30,307 | ) |   |   | -39.60% |   |
| B notes (1)                                  |   |               | 55,122    |   |         |   | 100.07% |                |   |   | 54,736       |   |   |                                    | 99.36% |   |         |   | (386 | ) |   |   |   -0.71% |   |
| Mezzanine loans (1)                          |   |               | 81,333    |   |         |   | 94.78%  |                |   |   | 68,275       |   |   |                                    | 79.57% |   |         |   | (13,058 | ) |   |   | -15.21% |   |
| Whole loans (1)                              |   |               | 79,500    |   |         |   | 99.71%  |                |   |   | 78,940       |   |   |                                    | 99.00% |   |         |   | (560 | ) |   |   |   -0.71% |   |
| Equipment leases and loans (5)               |   |               | 3,105     |   |         |   | 100.03% |                |   |   | 2,205        |   |   |                                    | 71.04% |   |         |   | (900 | ) |   |   | -28.99% |   |
| Total fixed rate                                  |   |               | 278,254   |   |         |   | 92.67%  |                |   |   | 233,043      |   |   |                                    | 77.61% |   |         |   | (45,211 | ) |   |   | -15.06% |   |
| Grand total                                       |   | $                  | 1,786,598 |   |         |   | 97.30%  |                |   | $      | 1,609,221    |   |   |                                    | 87.64% |   |         | $      | (177,377 | ) |   |   |   -9.66% |   |
| December 31, 2008                                 |   |               |      |   |         |   |    |                |   |   |         |   |   |                                    |   |   |         |   |   |   |   |   |   |   |
| Floating rate                                     |   |               |      |   |         |   |    |                |   |   |         |   |   |                                    |   |   |         |   |   |   |   |   |   |   |
| CMBS-private placement                            |   | $                  | 32,061    |   |         |   | 99.99%  |                |   | $      | 15,042       |   |   |                                    | 46.91% |   |         | $      | (17,019 | ) |   |   | -53.08% |   |
| Other ABS                                         |   |               | 5,665     |   |         |   | 94.42%  |                |   |   | 45           |   |   |                                    | 0.75%  |   |         |   | (5,620 | ) |   |   | -93.67% |   |
| B notes (1)                                  |   |               | 33,535    |   |         |   | 100.00% |                |   |   | 33,434       |   |   |                                    | 99.70% |   |         |   | (101 | ) |   |   |   -0.30% |   |
| Mezzanine loans (1)                          |   |               | 129,459   |   |         |   | 100.01% |                |   |   | 129,071      |   |   |                                    | 99.71% |   |         |   | (388 | ) |   |   |   -0.30% |   |
| Whole loans (1)                              |   |               | 431,985   |   |         |   | 99.71%  |                |   |   | 430,690      |   |   |                                    | 99.41% |   |         |   | (1,295 | ) |   |   |   -0.30% |   |
| Bank loans (2)                               |   |               | 909,350   |   |         |   | 99.17%  |                |   |   | 577,598      |   |   |                                    | 62.99% |   |         |   | (331,752 | ) |   |   | -36.18% |   |
| Asset-backed securitiesheld-to-maturity (4)  |   |               | 28,157    |   |         |   | 97.09%  |                |   |   | 4,818        |   |   |                                    | 16.61% |   |         |   | (23,339 | ) |   |   | -80.48% |   |
| Total floating rate                               |   |               | 1,570,212 |   |         |   | 99.36%  |                |   |   | 1,190,698    |   |   |                                    | 75.35% |   |         |   | (379,514 | ) |   |   | -24.01% |   |
| Fixed rate                                        |   |               |      |   |         |   |    |                |   |   |         |   |   |                                    |   |   |         |   |   |   |   |   |   |   |
| CMBS – private placement                    |   |               | 38,397    |   |         |   | 91.26%  |                |   |   | 14,173       |   |   |                                    | 33.69% |   |         |   | (24,224 | ) |   |   | -57.57% |   |
| B notes (1)                                  |   |               | 55,534    |   |         |   | 100.11% |                |   |   | 55,367       |   |   |                                    | 99.81% |   |         |   | (167 | ) |   |   |   -0.30% |   |
| Mezzanine loans (1)                          |   |               | 81,274    |   |         |   | 94.72%  |                |   |   | 68,378       |   |   |                                    | 79.69% |   |         |   | (12,896 | ) |   |   | -15.03% |   |
| Whole loans (1)                              |   |               | 87,352    |   |         |   | 99.52%  |                |   |   | 87,090       |   |   |                                    | 99.23% |   |         |   | (262 | ) |   |   |   -0.29% |   |
| Equipment leases and notes (4)               |   |               | 104,465   |   |         |   | 99.38%  |                |   |   | 104,015      |   |   |                                    | 98.95% |   |         |   | (450 | ) |   |   |   -0.43% |   |
| Total fixed rate                                  |   |               | 367,022   |   |         |   | 97.55%  |                |   |   | 329,023      |   |   |                                    | 87.45% |   |         |   | (37,999 | ) |   |   | -10.10% |   |
| Grand total                                       |   | $                  | 1,937,234 |   |         |   | 99.02%  |                |   | $      | 1,519,721    |   |   |                                    | 77.68% |   |         | $      | (417,513 | ) |   |   | -21.34% |   |

----

| (1) | Net carrying amount includes an allowance for loan losses of $28.4 million at September 30, 2009, allocated as follows:  B notes ($0.5 million), mezzanine loans ($14.1 million) and whole loans ($13.8 million). Net carrying amount includes an allowance for loan losses of $15.1 million at December 31, 2008, allocated as follows: B notes ($0.3 million), mezzanine loans ($13.3 million) and whole loans ($1.5million). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The bank loan portfolio is carried at amortized cost less allowance for loan loss and was $831.9 million at September 30, 2009.  Amount disclosed represents net realizable value at September 30, 2009, which includes $31.0 million allowance for loan losses at September 30, 2009.  The bank loan portfolio was $908.7 million (net of allowance of $28.8 million) at December 31, 2008. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Bank loans held for sale are carried at fair value and, therefore, amortized cost is equal to fair value. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (4) | Asset-backed securities are held to maturity and are carried at amortized cost less other-than-temporary impairment. |
|-----|----------------------------------------------------------------------------------------------------------------------|

| (5) | Net carrying amount includes a $900,000 allowance for equipment leases and loans losses at September 30, 2009. |
|-----|----------------------------------------------------------------------------------------------------------------|

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|   | ● | the length of time the market value has been less than amortized cost; |
|--------|---------|------------------------------------------------------------------------|

|   | ● | the severity of the impairment; |
|--------|---------|---------------------------------|

|   | ● | the expected loss of the security as generated by third party software; |
|--------|---------|-------------------------------------------------------------------------|

|   | ● | credit ratings from the rating agencies; and |
|--------|---------|----------------------------------------------|

|   | ● | underlying credit fundamentals of the collateral backing the securities; and |
|--------|---------|------------------------------------------------------------------------------|

|   | ● | our intent to sell as well as the likelihood that we will be required to sell the security before the recovery of the amortized cost basis. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | i. | an income approach utilizing an appropriate current risk-adjusted yield, time value and projected estimated losses from default assumptions based on historical analysis of underlying loan performance; |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | quotes on similar-vintage, higher rated, more actively traded CMBS securities adjusted for the lower subordination level of our securities; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | dealer quotes on our securities for which there is not an active market. |
|--------|------|--------------------------------------------------------------------------|

|                            |   | September 30, 2009 |    |   | December 31, 2008 |   |
|---------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                            |   | Amortized Cost     |    |   | Dollar Price      |   |   | Amortized Cost |   |   | Dollar Price |   |
| Moody’s Ratings Category: |   |               |    |   |              |   |   |   |   |   |   |   |
| Aaa                             |   |               | 12,874  |   |              |   |   63.67% |   |   |   | − |   |   |   |      −% |   |
| Aa1 through Aa3                 |   |               | 5,552   |   |              |   |   51.65% |   |   |   | − |   |   |   |      −% |   |
| A1 through A3                   |   |               | 2,043   |   |              |   |   58.46% |   |   |   | − |   |   |   |      −% |   |
| Baa1 through Baa3               |   |               | − |   |              |   |       −% |   |   |   | 63,459 |   |   |   | 94.52% |   |
| Ba1 through Ba3                 |   |               | 14,463  |   |              |   | 100.00% |   |   |   | − |   |   |   |      −% |   |
| B1 through B3                   |   |               | 31,384  |   |              |   |   93.20% |   |   |   | 6,999 |   |   |   | 99.99% |   |
| Caa1 through Caa3               |   |               | 24,941  |   |              |   |   95.93% |   |   |   | − |   |   |   |      −% |   |
| Total                           |   | $                  | 91,257  |   |              |   |   84.03% |   |   | $ | 70,458 |   |   |   | 95.04% |   |
|                            |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| S&P Ratings Category:       |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| AAA                             |   |               | 15,677  |   |              |   |   62.16% |   |   |   | − |   |   |   |       −% |   |
| AA+ through AA-                 |   |               | 2,434   |   |              |   |   48.69% |   |   |   | − |   |   |   |       −% |   |
| A+ through A-                   |   |               | 2,043   |   |              |   |   58.46% |   |   |   | − |   |   |   |      −% |   |
| BBB+ through BBB-               |   |               | 11,801  |   |              |   |   93.51% |   |   |   | 51,378 |   |   |   | 94.24% |   |
| BB+ through BB-                 |   |               | 29,704  |   |              |   |   98.38% |   |   |   | 19,080 |   |   |   | 97.26% |   |
| B+ through B-                   |   |               | 9,051   |   |              |   |   90.51% |   |   |   | − |   |   |   |      −% |   |
| CCC+ through CCC-               |   |               | 20,547  |   |              |   |   93.09% |   |   |   | − |   |   |   |      −% |   |
| Total                           |   | $                  | 91,257  |   |              |   |   84.03% |   |   | $ | 70,458 |   |   |   | 95.04% |   |
|                            |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average rating factor  |   |               | 2,258   |   |              |   |   |   |   |   | 830 |   |   |   |   |   |

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----

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| Weighted Average Life                          |   | Fair Value |   |   | Amortized Cost |   |   | Weighted Average Coupon |   |
|------------------------------------------------|--------|------------|--------|--------|----------------|--------|--------|-------------------------|--------|
| September 30, 2009:                            |   |       |   |   |           |   |   |                    |   |
| Less than one year                             |   | $          | 11,712 | (1)    |           | $      | 32,063 |                    |   |   | 1.72% |   |
| Greater than five years                        |   |       | 28,887 |   |           |   | 59,194 |                    |   |   | 5.81% |   |
| Total                                          |   | $          | 40,599 |   |           | $      | 91,257 |                    |   |   | 4.37% |   |
| December 31, 2008:                             |   |       |   |   |           |   |   |                    |   |   |   |   |
| Less than one year                             |   | $          | 5,088  |   |           | $      | 10,465 |                    |   |   | 3.17% |   |
| Greater than one year and less than five years |   |       | 9,954  |   |           |   | 21,596 |                    |   |   | 3.75% |   |
| Greater than five years                        |   |       | 14,218 |   |           |   | 44,062 |                    |   |   | 5.05% |   |
| Total                                          |   | $          | 29,260 |   |           | $      | 76,123 |                    |   |   | 4.36% |   |

----

| (1) | All of the $11.7 million of CMBS maturing in these categories are collateralized by floating-rate loans and are expected to extend for up to a minimum of two additional years as the loans in the floating-rate structures have a contractual right to extend with options ranging from two one-year options to three one-year options. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | December 31, 2008 |    |
|---------------------------------|--------|-------------------|---------|
|                            |   | Amortized cost    |    |   | Dollar price |   |
| Moody’s ratings category: |   |              |    |   |   |   |
| B1 through B3                   |   | $                 | 5,665   |   |   |   | 94.42% |   |
| Caa1 through Caa3               |   |              | − |   |   |   |       −% |   |
| Total                           |   | $                 | 5,665   |   |   |   | 94.42% |   |
| S&P ratings category:       |   |              |    |   |   |   |   |   |
| B+ through B-                   |   | $                 | 5,665   |   |   |   | 94.42% |   |
| CCC+ through CCC-               |   |              | − |   |   |   |       −% |   |
| Total                           |   | $                 | 5,665   |   |   |   | 94.42% |   |
| Weighted average rating factor  |   |              | 3,490   |   |   |   |   |   |

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|                            |   |   | September 30, 2009 |    |   | December 31, 2008 |   |
|---------------------------------|--------|--------|--------------------|---------|--------|-------------------|--------|
|                            |   |   | Amortized cost     |    |   | Dollar price      |   |   | Amortized cost |   |   | Dollar price |   |
| Moody’s ratings category: |   |   |               |    |   |              |   |   |   |   |   |   |   |
| Baa1 through Baa3               |   |   |               | 52,661  |   |              |   |   97.63% |   |   |   | 16,732 |   |   |   |   97.71% |   |
| Ba1 through Ba3                 |   |   |               | 386,599 |   |              |   |   97.40% |   |   |   | 456,594 |   |   |   |   99.21% |   |
| B1 through B3                   |   |   |               | 365,091 |   |              |   |   96.92% |   |   |   | 397,157 |   |   |   |   99.10% |   |
| Caa1 through Caa3               |   |   |               | 53,648  |   |              |   |   99.50% |   |   |   | 34,617 |   |   |   | 100.09% |   |
| Ca                              |   |   |               | 13,512  |   |              |   |   98.88% |   |   |   | − |   |   |   |         −% |   |
| No rating provided              |   |   |               | 6,432   |   |              |   |   92.39% |   |   |   | 4,250 |   |   |   | 100.00% |   |
| Total                           |   |   | $                  | 877,943 |   |              |   |   97.32% |   |   | $ | 909,350 |   |   |   |   99.17% |   |
| S&P ratings category:       |   |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| BBB+ through BBB-               |   |   | $                  | 62,007  |   |              |   |   97.49% |   |   | $ | 41,495 |   |   |   |   99.44% |   |
| BB+ through BB-                 |   |   |               | 371,558 |   |              |   |   97.28% |   |   |   | 473,354 |   |   |   |   99.03% |   |
| B+ through B-                   |   |   |               | 331,016 |   |              |   |   97.16% |   |   |   | 317,601 |   |   |   |   99.46% |   |
| CCC+ through CCC-               |   |   |               | 48,443  |   |              |   |   99.43% |   |   |   | 26,886 |   |   |   | 100.02% |   |
| CC+ through CC-                 |   |   |               | 3,595   |   |              |   | 100.06% |   |   |   | − |   |   |   | 100.00% |   |
| C+ through C-                   |   |   |               | − |   |              |   |         −% |   |   |   | 1,075 |   |   |   | 100.00% |   |
| D                               |   |   |               |    | 10,923 |              |   |   |   98.62% |   |   |   | 1,480 |   |   |   | 100.00% |   |
| No rating provided              |   |   |               | 50,401  |   |              |   |   96.01% |   |   |   | 47,459 |   |   |   |   97.85% |   |
| Total                           |   |   | $                  | 877,943 |   |              |   |   97.32% |   |   | $ | 909,350 |   |   |   |   99.17% |   |
| Weighted average rating factor  |   |   |               | 2,167   |   |              |   |   |   |   |   | 1,982 |   |   |   |   |   |

|                            |   | September 30, 2009 |    |   | December 31, 2008 |   |
|---------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                            |   | Amortized cost     |    |   | Dollar price      |   |   | Amortized cost |   |   | Dollar price |   |
| Moody’s ratings category: |   |               |    |   |              |   |   |   |   |   |   |   |
| Aaa                             |   | $                  | 1,536   |   |              |   | 85.33% |   |   | $ | − |   |   |   |       −% |   |
| Aa1 through Aa3                 |   |               | 3,712   |   |              |   | 77.54% |   |   |   | 1,136 |   |   |   | 75.73% |   |
| A1 through A3                   |   |               | 300     |   |              |   | 75.00% |   |   |   | 6,351 |   |   |   | 97.71% |   |
| Baa1 through Baa3               |   |               | 1,168   |   |              |   | 77.87% |   |   |   | 3,050 |   |   |   | 97.60% |   |
| Ba1 through Ba3                 |   |               | 4,421   |   |              |   | 95.59% |   |   |   | 15,187 |   |   |   | 98.78% |   |
| B1 through B3                   |   |               | 7,266   |   |              |   | 98.46% |   |   |   | − |   |   |   |       −% |   |
| Caa1 through Caa3               |   |               | 10,389  |   |              |   | 98.95% |   |   |   | − |   |   |   |       −% |   |
| Ca                              |   |               | 3,832   |   |              |   | 80.34% |   |   |   | − |   |   |   |       −% |   |
| No rating provided              |   |               | − |   |              |   |       −% |   |   |   | 2,433 |   |   |   | 97.32% |   |
| Total                           |   | $                  | 32,624  |   |              |   | 91.23% |   |   | $ | 28,157 |   |   |   | 97.09% |   |
| S&P ratings category:       |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| B+ through B-                   |   | $                  | 473     |   |              |   | 94.41% |   |   | $ | − |   |   |   |       −% |   |
| No rating provided              |   |               | 32,151  |   |              |   | 91.19% |   |   |   | 28,157 |   |   |   | 97.09% |   |
| Total                           |   | $                  | 32,624  |   |              |   | 91.23% |   |   | $ | 28,157 |   |   |   | 97.09% |   |

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|               | Benchmark rate |   | Notional value |    |   | Pay rate |   | Effective date |   | Maturity date |   | Fair value |   |
|--------------------|----------------|--------|----------------|---------|--------|----------|--------|----------------|--------|---------------|--------|------------|--------|
| Interest rate swap | 1 month LIBOR  |   | $              | 12,750  |   |     |   | 5.27%          |   | 07/25/07      |   | 08/06/12   |   | $ | (1,302 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 12,965  |   |     |   | 4.63%          |   | 12/04/06      |   | 07/01/11   |   |   | (823 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 28,000  |   |     |   | 5.10%          |   | 05/24/07      |   | 06/05/10   |   |   | (909 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 1,880   |   |     |   | 5.68%          |   | 07/13/07      |   | 03/12/17   |   |   | (331 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 15,235  |   |     |   | 5.34%          |   | 06/08/07      |   | 02/25/10   |   |   | (315 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 12,150  |   |     |   | 5.44%          |   | 06/08/07      |   | 03/25/12   |   |   | (1,198 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 7,000   |   |     |   | 5.34%          |   | 06/08/07      |   | 02/25/10   |   |   | (145 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 44,593  |   |     |   | 4.13%          |   | 01/10/08      |   | 05/25/16   |   |   | (1,719 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 82,253  |   |     |   | 5.58%          |   | 06/08/07      |   | 04/25/17   |   |   | (7,935 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 1,726   |   |     |   | 5.65%          |   | 06/28/07      |   | 07/15/17   |   |   | (166 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 1,681   |   |     |   | 5.72%          |   | 07/09/07      |   | 10/01/16   |   |   | (167 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 3,850   |   |     |   | 5.65%          |   | 07/19/07      |   | 07/15/17   |   |   | (370 | ) |
| Interest rate swap | 1 month LIBOR  |   |           | 4,023   |   |     |   | 5.41%          |   | 08/07/07      |   | 07/25/17   |   |   | (348 | ) |
| Total              |           |   | $              | 228,106 |   |     |   | 5.14%          |   |          |   |       |   | $ | (15,728 | ) |

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|                                                                                 |   | Three Months Ended September 30, |    |   | Nine Months Ended September 30, |   |
|--------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|---------------------------------|--------|
|                                                                                 |   | 2009                             |    |   | 2008                            |   |   | 2009 |   |   | 2008 |   |
| Net income (loss) − GAAP                                                       |   | $                                | 11,528  |   |                            | $      | 88 |   |   | $ | (5,751 | ) |   | $ | 4,194 |   |
| Taxable REIT subsidiary’s loss                                                 |   |                             | 653     |   |                            |   | − |   |   |   | 1,853 |   |   |   | − |   |
| Adjusted net income (loss)                                                           |   |                             | 12,181  |   |                            |   | 88 |   |   |   | (3,898 | ) |   |   | 4,194 |   |
| Adjustments:                                                                         |   |                             |    |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Share-based compensation to related parties                                          |   |                             | 631     |   |                            |   | (190 | ) |   |   | 660 |   |   |   | (729 | ) |
| Capital loss carryover (utilization)/losses fromthe sale of securities               |   |                             | − |   |                            |   | − |   |   |   | 4,978 |   |   |   | 2,000 |   |
| Provision for loan and lease losses unrealized                                       |   |                             | 4,240   |   |                            |   | 2,761 |   |   |   | 13,340 |   |   |   | 14,446 |   |
| Asset impairments                                                                    |   |                             | 895     |   |                            |   | − |   |   |   | 6,560 |   |   |   | − |   |
| Deferral of extinguishment of debt income                                            |   |                             | (12,741 | )      |                            |   | − |   |   |   | (12,741 | ) |   |   | − |   |
| Net book to tax adjustments for the Company’staxable foreign REIT subsidiaries |   |                             | (3,134  | )      |                            |   | 7,034 |   |   |   | 4,601 |   |   |   | 11,271 |   |
| Subpart F income limitation (1)                                                 |   |                             | 5,406   |   |                            |   | − |   |   |   | 6,871 |   |   |   | − |   |
| Other net book to tax adjustments                                                    |   |                             | 1,419   |   |                            |   | (281 | ) |   |   | 1,387 |   |   |   | (272 | ) |
| Estimated REIT taxable income                                                        |   | $                                | 8,897   |   |                            | $      | 9,412 |   |   | $ | 21,758 |   |   | $ | 30,910 |   |
| Amounts per share – diluted                                                    |   | $                                | 0.36    |   |                            | $      | 0.38 |   |   | $ | 0.89 |   |   | $ | 1.24 |   |

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| (1) | U.S. shareholders of controlled foreign corporations are required to include their share of such corporations’ income on a current basis, however, losses sustained by such corporations do not offset income of their U.S. shareholders on a current basis. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | ● | $7.0 million of commercial real estate loans paid off; |
|--------|---------|--------------------------------------------------------|

|   | ● | $36.8 million of commercial real estate loans principal repayments; |
|--------|---------|---------------------------------------------------------------------|

|   | ● | $51.3 million of bank loan principal repayments; and |
|--------|---------|------------------------------------------------------|

|   | ● | $82.4 million of bank loan sale proceeds. |
|--------|---------|-------------------------------------------|

|   | ● | unrestricted cash and cash equivalents of $12.6 million and restricted cash of $5.4 million in margin call accounts; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------|

|   | ● | capital available for reinvestment in its five collateralized debt obligation (“CDO”) entities of $59.5 million, of which $3.0 million is designated to finance future funding commitments on CRE loans. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                    |   | Contractual commitments(dollars in thousands) |      |
|-----------------------------------------|--------|-----------------------------------------------|-----------|
|                                    |   | Payments due by period                        |      |
|                                    |   | Total                                         |      |   | Less than1 year |   |   | 1 – 3 years |   |   | 3 – 5 years |   |   | More than 5 years |   |
| Repurchase agreements                   |   | $                                             | 54        |   |   | $ | 54 |   |   | $ | − |   |   | $ | − |   |   | $ | − |   |
| CDOs                                    |   |                                          | 1,516,317 |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | 1,516,317 | (1) |
| Unsecured junior subordinateddebentures |   |                                          | 51,548    |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | 51,548 | (2) |
| Base management fees (3)           |   |                                          | 3,565     |   |   |   | 3,565 |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Total                                   |   | $                                             | 1,571,484 |   |   | $ | 3,619 |   |   | $ | − |   |   | $ | − |   |   | $ | 1,567,865 |   |

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| (1) | Contractual commitments do not include $7.1 million, $10.9 million, $9.0 million, $11.9 million and $28.6 million of interest expense payable through the non-call dates of July 2010, May 2011, June 2011, August 2011 and June 2012, respectively, on Apidos CDO I, Apidos Cinco CDO, Apidos CDO III, RREF 2006-1 and RREF 2007-1.  A non-call date represents the earliest period under which the CDO assets can besold, resulting in repayment of the CDO notes. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Contractual commitments do not include $5.5 million and $6.7 million of interest expense payable through the non-call dates of June 2011 and October 2011, respectively, on our junior subordinated debentures issued in connection with the trust preferred securities issuances of Resource Capital Trust I and RCC Trust II in May 2006 and September 2006, respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Calculated only for the next 12 months based on our current equity, as defined in our Management Agreement. |
|-----|-------------------------------------------------------------------------------------------------------------|

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ITEM 3.  

|                               |   | September 30, 2009                  |                                                                                               |
|------------------------------------|--------|-------------------------------------|----------------------------------------------------------------------------------------------------|
|                               |   | Interest rates fall 100basis points |                                                                                               |   | Unchanged |   |   | Interest rates rise 100basis points |   |
| CMBS – private placement (1) |   |                                |                                                                                               |   |   |   |   |   |   |
| Fair value                         |   | $                                   | 30,244                                                                                             |   |   | $ | 28,887 |   |   | $ | 27,611 |   |
| Change in fair value               |   | $                                   | 1,357                                                                                              |   |   |   |   |   |   | $ | (1,276 | ) |
| Change as a percent of fair value  |   |                                | 4.70%                                                                                              |   |   |   |   |   |   |   | 4.42% |   |
|                               |   |                                |                                                                                               |   |   |   |   |   |   |   |   |   |
|                               |   |                                |                                                                                               |   |   |   |   |   |   |   |   |   |
| Hedging instruments                |   |                                |                                                                                               |   |   |   |   |   |   |   |   |   |
| Fair value                         |   | $                                   | (32,707                                                                                            | ) |   | $ | (15,728 | ) |   | $ | (14,037 | ) |
| Change in fair value               |   | $                                   | (16,979                                                                                            | ) |   |   |   |   |   | $ | 1,691 |   |
| Change as a percent of fair value  |   |                                |                 107.95% |   |   |   |   |   |   |   |                  10.15% |   |

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| (1) | Includes the fair value of other available-for-sale investments that are sensitive to interest rate changes. |
|-----|--------------------------------------------------------------------------------------------------------------|

ITEM 4.    

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ITEM 6. 

| Exhibit No.                        |               | Description                                                                                                                                                                                                                                         |
|------------------------------------|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                 |               | Restated Certificate of Incorporation of Resource Capital Corp. (1)                                                                                                                                                                                 |
| 3.2            |               | Amended and Restated Bylaws of Resource Capital Corp. (1)                                                                                                                                                                                           |
| 4.1            |               | Form of Certificate for Common Stock for Resource Capital Corp. (1)                                                                                                                                                                                 |
| 4.2(a)                             |               | Junior Subordinated Indenture between Resource Capital Corp. and Wells Fargo Bank, N.A., dated May 25, 2006. (2)                                                                                                                                    |
| 4.2(b)                             |               | Amendment to Junior Subordinated Indenture and Junior Subordinated Note due 2036 between Resource Capital Corp. and Wells Fargo Bank, N.A., dated October 26, 2009 and effective September 30, 2009.                                                |
| 4.3(a)                             |               | Amended and Restated Trust Agreement among Resource Capital Corp., Wells Fargo Bank, N.A., Wells Fargo Delaware Trust Company and the Administrative Trustees named therein, dated May 25, 2006. (2)                                                |
| 4.3(b)                             |               | Amendment to Amended and Restated Trust Agreement and Preferred Securities Certificate among Resource Capital Corp., Wells Fargo Bank, N.A. and the Administrative Trustees named therein, dated October 26, 2009 and effective September 30, 2009. |
|   4.4     |               | Amended Junior Subordinated Note due 2036 in the principal amount of $25,774,000, dated October 26, 2009.                                                                                                                                           |
| 4.5(a)                             |               | Junior Subordinated Indenture between Resource Capital Corp. and Wells Fargo Bank, N.A., dated September 29, 2006. (3)                                                                                                                              |
| 4.5(b)                             |               | Amendment to Junior Subordinated Indenture and Junior Subordinated Note due 2036 between Resource Capital Corp. and Wells Fargo Bank, N.A., dated October 26, 2009 and effective September 30, 2009.                                                |
| 4.6(a)                             |               | Amended and Restated Trust Agreement among Resource Capital Corp., Wells Fargo Bank, N.A., Wells Fargo Delaware Trust Company and the Administrative Trustees named therein, dated September 29, 2006. (3)                                          |
| 4.6(b)                             |               | Amendment to Amended and Restated Trust Agreement and Preferred Securities Certificate among Resource Capital Corp., Wells Fargo Bank, N.A. and the Administrative Trustees named therein, dated October 26, 2009 and effective September 30, 2009. |
| 4.7            |               | Amended Junior Subordinated Note due 2036 in the principal amount of $25,774,000, dated October 26, 2009.                                                                                                                                           |
| 10.1(a)                            |               | Master Repurchase Agreement between RCC Real Estate SPE 3, LLC and Natixis Real Estate Capital. (4)                                                                                                                                                 |
| 10.1(b)                            |               | First Amendment to Master Repurchase Agreement between RCC Real Estate SPE 3, LLC and Natixis Real Estate Capital, dated September 25, 2008. (5)                                                                                                    |
| 10.1(c)                            |               | Second Amendment to Master Repurchase Agreement between RCC Real Estate SPE 3, LLC and Natixis Real Estate Capital, dated November 25, 2008. (6)                                                                                                    |
| 10.1(d)                            |               | Letter Agreement with respect to master Repurchase Agreement between Natixis Real Estate Capital, Inc. and RCC Real Estate SPE 3, LLC, dated as of March 13, 2009. (7)                                                                              |
| 10.1(e)                            |               | Letter Agreement with respect to Master Repurchase Agreement between Natixis Real Estate Capital and RCC Real Estate SPE 3, LLC, dated June 29, 2009. (8)                                                                                           |
| 10.3(a)                            |               | Amended and Restated Management Agreement between Resource Capital Corp., Resource Capital Manager, Inc. and Resource America, Inc. dated as of June 30, 2008. (9)                                                                                  |
| 10.3(b)                            |               | First Amendment to Amended and Restated Management Agreement between Resource Capital Corp., Resource Capital Manager, Inc. and Resource America, Inc. dated as of June 30, 2008. (10)                                                              |
| 31.1           |               | Rule 13a-14(a)/Rule 15d-14(a) Certification of Chief Executive Officer.                                                                                                                                                                             |
| 31.2           |               | Rule 13a-14(a)/Rule 15d-14(a) Certification of Chief Financial Officer.                                                                                                                                                                             |
| 32.1           |          | Certification Pursuant to 18 U.S.C. Section 1350.                                                                                                                                                                                                   |
| 32.2           |     | Certification Pursuant to 18 U.S.C. Section 1350.                                                                                                                                                                                                   |

----

| (1) | Filed previously as an exhibit to the Company’s registration statement on Form S-11, Registration No. 333-126517. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

| (2) | Filed previously as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2006. |
|-----|--------------------------------------------------------------------------------------------------------------------------|

| (3) | Filed previously as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2006. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

| (4) | Filed previously as an exhibit to the Company’s Current Report on Form 8-K filed on April 23, 2007. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (5) | Filed previously as an exhibit to the Company’s Current Report on Form 8-K filed on September 29, 2008. |
|-----|---------------------------------------------------------------------------------------------------------------|

| (6) | Filed previously as an exhibit to the Company’s Current Report on Form 8-K filed on December 2, 2008. |
|-----|-------------------------------------------------------------------------------------------------------------|

| (7) | Filed previously as an exhibit to the Company’s Current Report on Form 8-K filed on March 17, 2009. |
|-----|-----------------------------------------------------------------------------------------------------------|

| (8) | Filed previously as an exhibit to the Company’s Current Report on Form 8-K filed on July 6, 2009. |
|-----|---------------------------------------------------------------------------------------------------------|

| (9) | Filed previously as an exhibit to the Company’s Current Report on Form 8-K filed on July 3, 2008. |
|-----|---------------------------------------------------------------------------------------------------------|

| (10) | Filed previously as an exhibit to the Company’s Current Report on Form 8-K filed on October 20, 2009. |
|------|-------------------------------------------------------------------------------------------------------------|

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SIGNATURES

|                   | RESOURCE CAPITAL CORP.                                                                                                                                                                                                                                                                                                               |
|------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   | (Registrant)                                                                                                                                                                                                                                                                                                                         |
|                   |                                                                                                                                                                                                                                                                                                                                 |
| Date: November 6, 2009 | By:       /s/ Jonathan Z. Cohen                                            |
|                   | Jonathan Z. Cohen                                                                                                                                                                                                                                                                                                                    |
|                   | Chief Executive Officer and President                                                                                                                                                                                                                                                                                                |
|                   |                                                                                                                                                                                                                                                                                                                                 |

| Date: November 6, 2009 | By:       /s/ David J. Bryant                                 |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                   | David J. Bryant                                                                                                                                                                                                                                                  |
|                   | Chief Financial Officer and Chief Accounting Officer                                                                                                                                                                                                             |
|                   |                                                                                                                                                                                                                                                             |

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