----

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| Maryland                        |   | 20-2287134          |
|---------------------------------|--------|---------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer    |
| incorporation or organization)  |   | Identification No.) |

| 712 5th Avenue, 12th 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 |  ̈ |                                          | Accelerated filer         | R      |
|-------------------------|--------|-----------------------------------------------|---------------------------|--------|
| Non-accelerated filer   |  ̈ | (Do not check if a smaller reporting company) | Smaller reporting company |  ̈ |

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(Back to Index)

INDEX TO QUARTERLY REPORT

|       |                                                                                                         | PAGE     |
|------------|--------------------------------------------------------------------------------------------------------------|----------|
| PART I     | FINANCIAL INFORMATION                                                                                        |     |
|       |                                                                                                         |     |
| Item 1.    | Financial Statements                                                                                         |     |
|       |                                                                                                         |     |
|       | Consolidated Balance Sheets – March 31, 2011 (unaudited) and December 31, 2010                         |  3  |
|       |                                                                                                         |     |
|       | Consolidated Statements of Income (unaudited)Three Months Ended March 31, 2011 and 2010                      |  4  |
|       |                                                                                                         |     |
|       | Consolidated Statement of Changes in Stockholders’ Equity (unaudited)Three Months Ended March 31, 2011 |  5  |
|       |                                                                                                         |     |
|       | Consolidated Statements of Cash Flows (unaudited)Three Months Ended March 31, 2011 and 2010                  |  6  |
|       |                                                                                                         |     |
|       | Notes to Consolidated Financial Statements – March 31, 2011 (unaudited)                                | 8        |
|       |                                                                                                         |     |
| Item 2.    | Management’s Discussion and Analysis of Financial Condition and Results of Operations                  |  38 |
|       |                                                                                                         |     |
| Item 3.    | Quantitative and Qualitative Disclosures about Market Risk                                                   |  63 |
|       |                                                                                                         |     |
| Item 4.    | Controls and Procedures                                                                                      |  64 |
|       |                                                                                                         |     |
| PART II    | OTHER INFORMATION                                                                                            |     |
|       |                                                                                                         |     |
| Item 2.    | Unregistered Sales of Equity Securities and Use of Proceeds                                                  | 65       |
|       |                                                                                                         |     |
| Item 5.    | Exhibits                                                                                                     | 65       |
|       |                                                                                                         |
| SIGNATURES | 67                                                                                                           |

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| ITEM 1. | FINANCIAL STATEMENTS |
|---------|----------------------|

CONSOLIDATED BALANCE SHEETS

|                                                                                                                                                                                         |   | March 31,         |      |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|--------|--------------|--------|
|                                                                                                                                                                                         |   | 2011              |      |   | 2010         |   |
|                                                                                                                                                                                         |   |  (unaudited) |      |   |         |   |
| ASSETS                                                                                                                                                                                       |   |              |      |   |         |   |
| Cash and cash equivalents                                                                                                                                                                    |   | $                 | 61,499    |   |         | $      | 29,488 |   |
| Restricted cash                                                                                                                                                                              |   |              | 159,639   |   |         |   | 168,192 |   |
| Investment securities, trading                                                                                                                                                               |   |              | 31,270    |   |         |   | 17,723 |   |
| Investment securities available-for-sale, pledged as collateral, at fair value                                                                                                               |   |              | 84,733    |   |         |   | 57,998 |   |
| Investment securities available-for-sale, at fair value                                                                                                                                      |   |              | 37,569    |   |         |   | 5,962 |   |
| Investment securities held-to-maturity, pledged as collateral                                                                                                                                |   |              | 29,206    |   |         |   | 29,036 |   |
| Property available-for-sale                                                                                                                                                                  |   |              | 4,444     |   |         |   | 4,444 |   |
| Loans, pledged as collateral and net of allowances of $27.7 million and$34.2 million                                                                                                         |   |              | 1,435,945 |   |         |   | 1,443,271 |   |
| Loans held for sale                                                                                                                                                                          |   |              | 42,844    |   |         |   | 28,593 |   |
| Lease receivables, pledged as collateral, net of allowances of $0 and$70,000 and net of unearned income                                                                                      |   |              | −   |   |         |   | 109,612 |   |
| Loans receivable–related party                                                                                                                                                         |   |              | 9,689     |   |         |   | 9,927 |   |
| Investments in unconsolidated entities                                                                                                                                                       |   |              | 6,789     |   |         |   | 6,791 |   |
| Dividend reinvestment plan proceeds receivable                                                                                                                                               |   |              | −   |   |         |   | 10,000 |   |
| Interest receivable                                                                                                                                                                          |   |              | 5,555     |   |         |   | 6,330 |   |
| Deferred tax asset                                                                                                                                                                           |   |              | 4,401     |   |         |   | 4,401 |   |
| Intangible assets                                                                                                                                                                            |   |              | 20,960    |   |         |   | − |   |
| Other assets                                                                                                                                                                                 |   |              | 3,093     |   |         |   | 2,432 |   |
| Total assets                                                                                                                                                                                 |   | $                 | 1,937,636 |   |         | $      | 1,934,200 |   |
| LIABILITIES                                                                                                                                                                                  |   |              |      |   |         |   |   |   |
| Borrowings                                                                                                                                                                                   |   | $                 | 1,463,701 |   |         | $      | 1,543,251 |   |
| Distribution payable                                                                                                                                                                         |   |              | 17,590    |   |         |   | 14,555 |   |
| Accrued interest expense                                                                                                                                                                     |   |              | 1,506     |   |         |   | 1,618 |   |
| Derivatives, at fair value                                                                                                                                                                   |   |              | 12,009    |   |         |   | 13,292 |   |
| Deferred tax liability                                                                                                                                                                       |   |              | 9,798     |   |         |   | 9,798 |   |
| Accounts payable and other liabilities                                                                                                                                                       |   |              | 5,829     |   |         |   | 3,360 |   |
| Total liabilities                                                                                                                                                                            |   |              | 1,510,433 |   |         |   | 1,585,874 |   |
| 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;70,320,966 and 58,183,425 shares issues and outstanding(including 1,158,875 and 534,957 unvested restricted shares) |   |              | 70        |   |         |   | 58 |   |
| Additional paid-in capital                                                                                                                                                                   |   |              | 605,474   |   |         |   | 528,373 |   |
| Accumulated other comprehensive loss                                                                                                                                                         |   |              | (27,706   | )      |         |   | (33,918 | ) |
| Distributions in excess of earnings                                                                                                                                                          |   |              | (150,635  | )      |         |   | (146,187 | ) |
| Total stockholders’ equity                                                                                                                                                             |   |              | 427,203   |   |         |   | 348,326 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                             |   | $                 | 1,937,636 |   |         | $      | 1,934,200 |   |

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CONSOLIDATED STATEMENTS OF INCOME

|                                                                   |   | Three Months Ended |       |
|------------------------------------------------------------------------|--------|--------------------|------------|
|                                                                   |   | March 31,          |       |
|                                                                   |   | 2011               |       |   | 2010 |   |
| REVENUES                                                               |   |               |       |   |   |   |
| Net interest income:                                                   |   |               |       |   |   |   |
| Loans                                                                  |   | $                  | 20,148     |   |   | $ | 18,385 |   |
| Securities                                                             |   |               | 2,604      |   |   |   | 2,874 |   |
| Leases                                                                 |   |               | −    |   |   |   | 235 |   |
| Interest income − other                                          |   |               | 2,477      |   |   |   | 215 |   |
| Total interest income                                                  |   |               | 25,229     |   |   |   | 21,709 |   |
| Interest expense                                                       |   |               | 6,933      |   |   |   | 7,937 |   |
| Net interest income                                                    |   |               | 18,296     |   |   |   | 13,772 |   |
| Dividend income                                                        |   |               | 661        |   |   |   | − |   |
| Fee income                                                             |   |               | 1,646      |   |   |   | − |   |
| Total revenues                                                         |   |               | 20,603     |   |   |   | 13,772 |   |
| OPERATING EXPENSES                                                     |   |               |       |   |   |   |   |   |
| Management fees − related party                                  |   |               | 2,338      |   |   |   | 1,152 |   |
| Equity compensation − related party                              |   |               | 460        |   |   |   | 722 |   |
| Professional services                                                  |   |               | 919        |   |   |   | 819 |   |
| Insurance                                                              |   |               | 177        |   |   |   | 212 |   |
| General and administrative                                             |   |               | 945        |   |   |   | 647 |   |
| Amortization of intangible assets                                      |   |               | 253        |   |   |   | − |   |
| Income tax expense                                                     |   |               | 1,809      |   |   |   | 105 |   |
| Total expenses                                                         |   |               | 6,901      |   |   |   | 3,657 |   |
| NET OPERATING INCOME                                                   |   |               | 13,702     |   |   |   | 10,115 |   |
|                                                                   |   |               |       |   |   |   |   |   |
| OTHER INCOME (EXPENSE)                                                 |   |               |       |   |   |   |   |   |
| Impairment losses on investment securities                             |   |               | (665       | ) |   |   | (2,665 | ) |
| Recognized in other comprehensive loss                                 |   |               | (665       | ) |   |   | (2,665 | ) |
| Net impairment losses recognized in earnings                           |   |               | −    |   |   |   | − |   |
| Net realized gain on investment securities available-for-saleand loans |   |               | 35         |   |   |   | 146 |   |
| Net realized gain on investment securities, trading                    |   |               | 2,263      |   |   |   | − |   |
| Net unrealized loss on investment securities, trading                  |   |               | (336       | ) |   |   | − |   |
| Provision for loan and lease losses                                    |   |               | (2,606     | ) |   |   | (15,371 | ) |
| Gain on the extinguishment of debt                                     |   |               | −    |   |   |   | 6,628 |   |
| Other income (expense)                                                 |   |               | 84         |   |   |   | (112 | ) |
| Total other expenses                                                   |   |               | (560       | ) |   |   | (8,709 | ) |
|                                                                   |   |               |       |   |   |   |   |   |
| NET INCOME                                                             |   | $                  | 13,142     |   |   | $ | 1,406 |   |
| NET INCOME PER SHARE – BASIC                                     |   | $                  | 0.22       |   |   | $ | 0.04 |   |
| NET INCOME PER SHARE – DILUTED                                   |   | $                  | 0.22       |   |   | $ | 0.04 |   |
| WEIGHTED AVERAGE NUMBER OF SHARESOUTSTANDING − BASIC             |   |               | 60,147,820 |   |   |   | 37,987,192 |   |
| WEIGHTED AVERAGE NUMBER OF SHARESOUTSTANDING − DILUTED           |   |               | 60,397,630 |   |   |   | 38,150,605 |   |
| DIVIDENDS DECLARED PER SHARE                                           |   | $                  | 0.25       |   |   | $ | 0.25 |   |

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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 |   |    | Treasury Shares |   |   | Total Stockholders’ Equity |   |   | Comprehensive Income |   |
| Balance, January 1, 2011                                                           |   |         | 58,183,425 |   |   | $      | 58      |                       |   | $      | 528,373                              |   |   | $                 | (33,918 | )      |                                | $      | − |            |   | $      | (146,187                         | )      |   | $ | − |   |   | $ | 348,326 |   |   |   |   |
| Proceeds from common    stock offering                                   |   |         | 6,900,000  |   |   |   | 7       |                       |   |   | 47,603                               |   |   |              | − |   |                                |   | − |            |   |   | −                          |   |   |   | − |   |   |   | 47,610 |   |   |   |   |
| Proceeds from dividendreinvestment and stockpurchase plan                          |   |         | 4,306,694  |   |   |   | 4       |                       |   |   | 30,156                               |   |   |              | − |   |                                |   | − |            |   |   | −                          |   |   |   | − |   |   |   | 30,160 |   |   |   |   |
| Offering costs                                                                     |   |         | −    |   |   |   | − |                       |   |   | (1,151                               | )      |   |              | − |   |                                |   | − |            |   |   | −                          |   |   |   | − |   |   |   | (1,151 | ) |   |   |   |
| Stock based    compensation                                              |   |         | 930,847    |   |   |   | 1       |                       |   |   | 33                                   |   |   |              | − |   |                                |   | − |            |   |   | −                          |   |   |   | − |   |   |   | 34 |   |   |   |   |
| Amortization of stock   based compensation                               |   |         | −    |   |   |   | − |                       |   |   | 460                                  |   |   |              | − |   |                                |   | − |            |   |   | −                          |   |   |   | − |   |   |   | 460 |   |   |   |   |
| Net income                                                                         |   |         | −    |   |   |   | − |                       |   |   | −                              |   |   |              | − |   |                                |   | 13,142  |            |   |   | −                          |   |   |   | − |   |   |   | 13,142 |   |   | $ | 13,142 |   |
| Securities available-   for-sale, fair value   adjustment, net |   |         | −    |   |   |   | − |                       |   |   | −                              |   |   |              | 4,874   |   |                                |   | − |            |   |   | −                          |   |   |   | − |   |   |   | 4,874 |   |   |   | 4,874 |   |
| Designated derivatives,    fair value adjustment                         |   |         | −    |   |   |   | − |                       |   |   | −                              |   |   |              | 1,338   |   |                                |   | − |            |   |   | −                          |   |   |   | − |   |   |   | 1,338 |   |   |   | 1,338 |   |
| Distributions on commonstock                                                       |   |         | −    |   |   |   | − |                       |   |   | −                              |   |   |              | − |   |                                |   | (13,142 | )               |   |   | (4,448                           | )      |   |   | − |   |   |   | (17,590 | ) |   |   |   |   |
| Comprehensive    income                                                  |   |         | −    |   |   |   | − |                       |   |   | −                              |   |   |              | − |   |                                |   | − |            |   |   | −                          |   |   |   | − |   |   |   | − |   |   | $ | 19,354 |   |
| Balance, March 31, 2011                                                            |   |         | 70,320,966 |   |   | $      | 70      |                       |   | $      | 605,474                              |   |   | $                 | (27,706 | )      |                                | $      | − |            |   | $      | (150,635                         | )      |   | $ | − |   |   | $ | 427,203 |   |   |   |   |   |

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CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                                                             |   | Three Months Ended |     |
|----------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                             |   | March 31,          |     |
|                                                                             |   | 2011               |     |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                            |   |               |     |   |   |   |
| Net income                                                                       |   | $                  | 13,142   |   |   | $ | 1,406 |   |
| Adjustments to reconcile net income to net cash provided byoperating activities: |   |               |     |   |   |   |   |   |
| Provision for loan and lease losses                                              |   |               | 2,606    |   |   |   | 15,371 |   |
| Depreciation and amortization of term facilities                                 |   |               | 121      |   |   |   | 181 |   |
| Accretion of net discounts on loans held for investment                          |   |               | (5,050   | ) |   |   | (2,896 | ) |
| Accretion of net discounts on securities available-for-sale                      |   |               | (1,016   | ) |   |   | (1,052 | ) |
| Accretion of net discounts on securities held-to-maturity                        |   |               | (118     | ) |   |   | (96 | ) |
| Amortization of discount on notes of CDOs                                        |   |               | 13       |   |   |   | 13 |   |
| Amortization of debt issuance costs on notes of CDOs                             |   |               | 760      |   |   |   | 1,067 |   |
| Amortization of stock-based compensation                                         |   |               | 460      |   |   |   | 724 |   |
| Amortization of terminated derivative instruments                                |   |               | 55       |   |   |   | 133 |   |
| Amortization of intangible assets                                                |   |               | 253      |   |   |   | − |   |
| Purchase of investment securities, trading                                       |   |               | (17,951  | ) |   |   | − |   |
| Principal payments on investment securities, trading                             |   |               | 41       |   |   |   | − |   |
| Proceeds from sales of investment securities, trading                            |   |               | 6,164    |   |   |   | − |   |
| Net unrealized loss on investment securities, trading                            |   |               | 336      |   |   |   | − |   |
| Net realized gain on investments securities, trading                             |   |               | (2,263   | ) |   |   | − |   |
| Unrealized losses on non-designated derivative instruments                       |   |               | −  |   |   |   | 36 |   |
| Net realized gains on investments                                                |   |               | (35      | ) |   |   | (146 | ) |
| Gain on the extinguishment of debt                                               |   |               | −  |   |   |   | (6,628 | ) |
| Changes in operating assets and liabilities                                      |   |               | 17,815   |   |   |   | (1,556 | ) |
| Net cash provided by operating activities                                        |   |               | 15,333   |   |   |   | 6,557 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                            |   |               |     |   |   |   |   |   |
| Decrease in restricted cash                                                      |   |               | (4,053   | ) |   |   | (5,002 | ) |
| Purchase of securities available-for-sale                                        |   |               | (33,010  | ) |   |   | (4,923 | ) |
| Principal payments on securities available-for-sale                              |   |               | 1,515    |   |   |   | − |   |
| Proceeds from sale of securities available-for-sale                              |   |               | −  |   |   |   | − |   |
| Investment in unconsolidated entity                                              |   |               | 2        |   |   |   | (435 | ) |
| Purchase of loans                                                                |   |               | (180,877 | ) |   |   | (69,825 | ) |
| Principal payments received on loans                                             |   |               | 143,917  |   |   |   | 55,592 |   |
| Proceeds from sale of loans                                                      |   |               | 33,648   |   |   |   | 17,988 |   |
| Purchase of lease receivables                                                    |   |               | −  |   |   |   | (10,333 | ) |
| Payments received on lease receivables                                           |   |               | −  |   |   |   | 397 |   |
| Proceeds from sale of lease receivables                                          |   |               | −  |   |   |   | 465 |   |
| Purchase of intangible asset                                                     |   |               | (21,213  | ) |   |   | − |   |
| Investment in loans – related parties                                      |   |               | −  |   |   |   | (10,000 | ) |
| Payments received on loans – related parties                               |   |               | 238      |   |   |   | − |   |
| Net cash used in investing activities                                            |   |               | (59,833  | ) |   |   | (26,076 | ) |

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|                                                                                                |   | Three Months Ended |    |
|-----------------------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                                |   | March 31,          |    |
|                                                                                                |   | 2011               |    |   | 2010 |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                               |   |               |    |   |   |   |
| Net proceeds from issuance of common stock (net of offering costs of$1,151 and $64)                 |   |               | 46,459  |   |   |   | (64 | ) |
| Net proceeds from dividend reinvestment and stock purchase plan (net ofoffering costs of $0 and $0) |   |               | 30,160  |   |   |   | 18,035 |   |
| Proceeds from borrowings:                                                                           |   |               |    |   |   |   |   |   |
| Repurchase agreements                                                                               |   |               | 15,109  |   |   |   | − |   |
| Payments on borrowings:                                                                             |   |               |    |   |   |   |   |   |
| Retirement of debt                                                                                  |   |               | − |   |   |   | (13,623 | ) |
| Payment of debt issuance costs                                                                      |   |               | (662    | ) |   |   | − |   |
| Distributions paid on common stock                                                                  |   |               | (14,555 | ) |   |   | (9,170 | ) |
| Net cash provided by (used in) financing activities                                                 |   |               | 76,511  |   |   |   | (4,822 | ) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                                |   |               | 32,011  |   |   |   | (24,341 | ) |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                                                    |   |               | 29,488  |   |   |   | 51,991 |   |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                          |   | $                  | 61,499  |   |   | $ | 27,650 |   |
| NON-CASH INVESTING AND FINANCING ACTIVITIES:                                                        |   |               |    |   |   |   |   |   |
| Distributions on common stock declared but not paid                                                 |   | $                  | 17,590  |   |   | $ | 10,053 |   |
| Issuance of restricted stock                                                                        |   | $                  | 6,697   |   |   | $ | 333 |   |
| Contribution of lease receivables and other assets                                                  |   | $                  | 117,840 |   |   | $ | − |   |
| Contribution of equipment-backed securitized notes and other liabilities                            |   | $                  | (96,840 | ) |   | $ | − |   |
| Conversion of equity in LEAF Funding 3 to preferred stock and warrants                              |   | $                  | (21,000 | ) |   | $ | − |   |
| SUPPLEMENTAL DISCLOSURE:                                                                            |   |               |    |   |   |   |   |   |
| Interest expense paid in cash                                                                       |   | $                  | 8,228   |   |   | $ | 7,978 |   |
| Income taxes paid in cash                                                                           |   | $                  | − |   |   | $ | − |   |

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

|   | ● | 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 variable interest entities (“VIEs”): |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | – | 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 (“CMBS”). |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | – | 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, commercial mortgage-backed securities and property available-for-sale. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | 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 VIEs: |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | – | 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 the Company’s equity investment in a leasing company and holds all of its structured notes. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | Resource TRS II, Inc. (“Resource TRS II”), the Company’s directly-owned TRS, holds the Company’s interests in bank loan CDOs not originated by the Company.  Resource TRS II owns 100% of the equity of the following VIE: |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | – | Resource Capital Asset Management (“RCAM”), a domestic limited liability company, is entitled to collect senior, subordinated, and incentive fees related to five CDOs it acquired and provides management services through Apidos Capital Management, a subsidiary or Resource America. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

(Back to Index)

|   | ● | dealer quotes, as described above; |
|--------|---------|------------------------------------|

|   | ● | quotes on more actively-traded, higher-rated securities issued in a similar time period, adjusted for differences in rating and seniority; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | the value resulting from an internal valuation model using an income approach based upon an appropriate risk-adjusted yield, time value and projected losses using default assumptions based upon an historical analysis of underlying loan performance. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

(Back to Index)

----

(Back to Index)

|               |   | Amortized Cost |   |   | Unrealized Gains |   |   | Unrealized Losses |   |   | FairValue |   |
|--------------------|--------|----------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|-----------|--------|
| March 31, 2011:    |   |           |   |   |             |   |   |              |   |   |      |   |
| Structured notes   |   | $              | 21,989 |   |             | $      | 9,403  |              |   | $      | (122      | )      |   | $ | 31,270 |   |
| Total              |   | $              | 21,989 |   |             | $      | 9,403  |              |   | $      | (122      | )      |   | $ | 31,270 |   |
|               |   |           |   |   |             |   |   |              |   |   |      |   |   |   |   |   |
| December 31, 2010: |   |           |   |   |             |   |   |              |   |   |      |   |   |   |   |   |
| Structured notes   |   | $              | 7,984  |   |             | $      | 9,739  |              |   | $      | −   |   |   | $ | 17,723 |   |
| Total              |   | $              | 7,984  |   |             | $      | 9,739  |              |   | $      | −   |   |   | $ | 17,723 |   |

----

(Back to Index)

|                         |   | Amortized Cost (2) |    |   | Unrealized Gains |   |    | Unrealized Losses |   |   | FairValue (1) |   |
|------------------------------|--------|--------------------|---------|--------|------------------|--------|---------|-------------------|--------|--------|---------------|--------|
| March 31, 2011:              |   |               |    |   |             |   |    |              |   |   |          |   |
| CMBS                         |   | $                  | 105,478 |   |             | $      | 10,350  |              |   | $      | (24,762       | )      |   | $ | 91,066 |   |
| Preferred stock and warrants |   |               | 31,213  |   |             |   | − |              |   |   | −       |   |   |   | 31,213 |   |
| Other asset-backed           |   |               | − |   |             |   | 23      |              |   |   | −       |   |   |   | 23 |   |
| Total                        |   | $                  | 136,691 |   |             | $      | 10,373  |              |   | $      | (24,762       | )      |   | $ | 122,302 |   |
| December 31, 2010:           |   |               |    |   |             |   |    |              |   |   |          |   |   |   |   |   |
| CMBS                         |   | $                  | 83,223  |   |             | $      | 7,292   |              |   | $      | (26,578       | )      |   | $ | 63,937 |   |
| Other asset-backed           |   |               | − |   |             |   | 23      |              |   |   | −       |   |   |   | 23 |   |
| Total                        |   | $                  | 83,223  |   |             | $      | 7,315   |              |   | $      | (26,578       | )      |   | $ | 63,960 |   |

----

| (1) | As of March 31, 2011 and December 31, 2010, $84.7 million and $58.0 million, respectively, of securities were pledged as collateral security under related financings. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | As of March 31, 2011 and December 31, 2010, other asset-backed securities are carried at fair value, $23,000 and $23,000, respectively, due to prior other-than-temporary impairment taken. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Weighted Average Life                          |   | Fair Value |   |   | Amortized Cost |   | Weighted Average Coupon |   |
|------------------------------------------------|--------|------------|--------|--------|----------------|--------|-------------------------|--------|
| March 31, 2011:                                |   |       |   |   |           |   |                    |   |
| Less than one year                             |   | $          | 15,590 | (1)    |           | $      | 18,743                  |   |   | 4.33% |   |
| Greater than one year and less than five years |   |       | 42,541 |   |           |   | 56,084                  |   |   | 3.96% |   |
| Greater than five years                        |   |       | 32,958 |   |           |   | 30,651                  |   |   | 5.82% |   |
| Total                                          |   | $          | 91,089 |   |           | $      | 105,478                 |   |   | 4.93% |   |
|                                           |   |       |   |   |           |   |                    |   |   |   |   |
| December 31, 2010:                             |   |       |   |   |           |   |                    |   |   |   |   |
| Less than one year                             |   | $          | 3,264  | (1)    |           | $      | 6,911                   |   |   | 1.51% |   |
| Greater than one year and less than five years |   |       | 29,004 |   |           |   | 46,138                  |   |   | 3.45% |   |
| Greater than five years                        |   |       | 31,692 |   |           |   | 30,174                  |   |   | 5.64% |   |
| Total                                          |   | $          | 63,960 |   |           | $      | 83,223                  |   |   | 4.08% |   |

----

| (1) | $3.0 million of CMBS, maturing in this category are collateralized by floating-rate loans and, as permitted under the CMBS terms, are expected to extend their respective maturity dates until at least November 2011 as the debtors in the floating-rate structures have a contractual right to extend with options ranging from two one-year options to three one-year options.  Beyond the contractual extensions, the servicer may allow further extensions of the underlying floating rate loans. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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(Back to Index)

|                                 |   | Less than 12 Months |   |   | More than 12 Months     |   |   | Total      |   |
|--------------------------------------|--------|---------------------|--------|--------|-------------------------|--------|--------|------------|--------|
|                                 |   | Fair Value          |   |   | Gross Unrealized Losses |   |   | Fair Value |   |   | Gross Unrealized Losses |   |   | Fair Value |   |   | Gross Unrealized Losses |   |
| March 31, 2011:                      |   |                |   |   |                    |   |   |       |   |   |   |   |   |   |   |   |   |   |
| CMBS                                 |   | $                   | 27,533 |   |                    | $      | (3,837 | )          |   | $ | 9,156 |   |   | $ | (20,925 | ) |   | $ | 36,689 |   |   | $ | (24,762 | ) |
| Total temporarilyimpaired securities |   | $                   | 27,533 |   |                    | $      | (3,837 | )          |   | $ | 9,156 |   |   | $ | (20,925 | ) |   | $ | 36,689 |   |   | $ | (24,762 | ) |
|                                 |   |                |   |   |                    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010:                   |   |                |   |   |                    |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CMBS                                 |   | $                   | 10,134 |   |                    | $      | (4,383 | )          |   | $ | 8,302 |   |   | $ | (22,195 | ) |   | $ | 18,436 |   |   | $ | (26,578 | ) |
| Total temporarilyimpaired securities |   | $                   | 10,134 |   |                    | $      | (4,383 | )          |   | $ | 8,302 |   |   | $ | (22,195 | ) |   | $ | 18,436 |   |   | $ | (26,578 | ) |

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

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

|   | ● | the expected loss with respect to the security as generated by third party software; |
|--------|---------|--------------------------------------------------------------------------------------|

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

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

|   | ● | whether, based upon the Company’s intent, it is more likely than not that the Company will sell the security before the recovery of the amortized cost basis. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

(Back to Index)

|               |   | Amortized Cost |   |   | Unrealized Gains |   |   | Unrealized Losses |   |   | Fair Value |   |
|--------------------|--------|----------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|------------|--------|
| March 31, 2011:    |   |           |   |   |             |   |   |              |   |   |       |   |
| ABS                |   | $              | 29,206 |   |             | $      | 754    |              |   | $      | (3,057     | )      |   | $ | 26,903 |   |
| Total              |   | $              | 29,206 |   |             | $      | 754    |              |   | $      | (3,057     | )      |   | $ | 26,903 |   |
|               |   |           |   |   |             |   |   |              |   |   |       |   |   |   |   |   |
| December 31, 2010: |   |           |   |   |             |   |   |              |   |   |       |   |   |   |   |   |
| ABS                |   | $              | 29,036 |   |             | $      | 752    |              |   | $      | (3,847     | )      |   | $ | 25,941 |   |
| Total              |   | $              | 29,036 |   |             | $      | 752    |              |   | $      | (3,847     | )      |   | $ | 25,941 |   |

| Contractual Life                                |   | AmortizedCost |   |   | Fair Value |   |   | Weighted Average Coupon |   |
|-------------------------------------------------|--------|---------------|--------|--------|------------|--------|--------|-------------------------|--------|
| March 31, 2011:                                 |   |          |   |   |       |   |   |                    |   |
| Greater than one year and less than five years  |   | $             | 5,000  |   |       | $      | 5,037  |                    |   |   | 6.15% |   |
| Greater than five years and less than ten years |   |          | 15,897 |   |       |   | 15,566 |                    |   |   | 1.98% |   |
| Greater than ten years                          |   |          | 8,309  |   |       |   | 6,300  |                    |   |   | 4.13% |   |
| Total                                           |   | $             | 29,206 |   |       | $      | 26,903 |                    |   |   |   |   |
|                                            |   |          |   |   |       |   |   |                    |   |   |   |   |
| December 31, 2010:                              |   |          |   |   |       |   |   |                    |   |   |   |   |
| Greater than one year and less than five years  |   | $             | 5,000  |   |       | $      | 4,830  |                    |   |   | 6.14% |   |
| Greater than five years and less than ten years |   |          | 15,891 |   |       |   | 15,073 |                    |   |   | 1.97% |   |
| Greater than ten years                          |   |          | 8,145  |   |       |   | 6,038  |                    |   |   | 4.11% |   |
| Total                                           |   | $             | 29,036 |   |       | $      | 25,941 |                    |   |   |   |   |

|                                 |   | Less than 12 Months |    |   | More than 12 Months          |   |    | Total      |   |
|--------------------------------------|--------|---------------------|---------|--------|------------------------------|--------|---------|------------|--------|
|                                 |   | Fair Value          |    |   | Gross Unrealized Losses |   |    | Fair Value |   |   | Gross Unrealized Losses |   |   | Fair Value |   |   | Gross Unrealized Losses |   |
| March 31, 2011:                      |   |                |    |   |                         |   |    |       |   |   |   |   |   |   |   |   |   |   |
| ABS                                  |   | $                   | − |   |                         | $      | − |       |   | $ | 10,111 |   |   | $ | (3,057 | ) |   | $ | 10,111 |   |   | $ | (3,057 | ) |
| Total temporarilyimpaired securities |   | $                   | − |   |                         | $      | − |       |   | $ | 10,111 |   |   | $ | (3,057 | ) |   | $ | 10,111 |   |   | $ | (3,057 | ) |
|                                 |   |                |    |   |                         |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010:                   |   |                |    |   |                         |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| ABS                                  |   | $                   | 1,038   |   |                         | $      | (1      | )          |   | $ | 11,923 |   |   | $ | (3,846 | ) |   | $ | 12,961 |   |   | $ | (3,847 | ) |
| Total temporarilyimpaired securities |   | $                   | 1,038   |   |                         | $      | (1      | )          |   | $ | 11,923 |   |   | $ | (3,846 | ) |   | $ | 12,961 |   |   | $ | (3,847 | ) |

----

(Back to Index)

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

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

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

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

|   | ● | third-party support for default, recovery, prepayment speed and reinvestment price assumptions. |
|--------|---------|-------------------------------------------------------------------------------------------------|

| Loan Description                   |   | Principal |      |   | Unamortized(Discount) Premium (1) |   |    | CarryingValue (2) |   |
|------------------------------------|--------|-----------|-----------|--------|-----------------------------------|--------|---------|-------------------|--------|
| March 31, 2011:                    |   |      |      |   |                              |   |    |              |   |
| Bank loans (3)                |   | $         | 899,165   |   |                              | $      | (23,365 | )                 |   | $ | 875,800 |   |
| Commercial real estate loans:      |   |      |      |   |                              |   |    |              |   |   |   |   |
| Whole loans (3)               |   |      | 460,539   |   |                              |   | (458    | )                 |   |   | 460,081 |   |
| B notes (3)                   |   |      | 55,327    |   |                              |   | (160    | )                 |   |   | 55,167 |   |
| Mezzanine loans (3)           |   |      | 115,326   |   |                              |   | 84      |              |   |   | 115,410 |   |
| Total commercial real estate loans |   |      | 631,192   |   |                              |   | (534    | )                 |   |   | 630,658 |   |
| Subtotal loans before allowances   |   |      | 1,530,357 |   |                              |   | (23,899 | )                 |   |   | 1,506,458 |   |
| Allowance for loan loss            |   |      | (27,669   | )      |                              |   | − |              |   |   | (27,669 | ) |
| Total                              |   | $         | 1,502,688 |   |                              | $      | (23,899 | )                 |   | $ | 1,478,789 |   |
|                               |   |      |      |   |                              |   |    |              |   |   |   |   |
| December 31, 2010:                 |   |      |      |   |                              |   |    |              |   |   |   |   |
| Bank loans (3)                |   | $         | 887,667   |   |                              | $      | (27,204 | )                 |   | $ | 860,463 |   |
| Commercial real estate loans:      |   |      |      |   |                              |   |    |              |   |   |   |   |
| Whole loans                        |   |      | 441,706   |   |                              |   | (334    | )                 |   |   | 441,372 |   |
| B notes                            |   |      | 57,613    |   |                              |   | (162    | )                 |   |   | 57,451 |   |
| Mezzanine loans (3)           |   |      | 146,668   |   |                              |   | 143     |              |   |   | 146,811 |   |
| Total commercial real estate loans |   |      | 645,987   |   |                              |   | (353    | )                 |   |   | 645,634 |   |
| Subtotal loans before allowances   |   |      | 1,533,654 |   |                              |   | (27,557 | )                 |   |   | 1,506,097 |   |
| Allowance for loan loss            |   |      | (34,233   | )      |                              |   | − |              |   |   | (34,233 | ) |
| Total                              |   | $         | 1,499,421 |   |                              | $      | (27,557 | )                 |   | $ | 1,471,864 |   |

----

| (1) | Amounts include deferred amendment fees of $276,000 and $636,000 being amortized over the life of the bank loans and $79,000 and $681,000 being amortized over the life of the commercial real estate loans as of March 31, 2011 and December 31, 2010, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Substantially all loans are pledged as collateral under various borrowings at March 31, 2011 and December 31, 2010, respectively. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|

| (3) | Amounts include $9.9 million of bank loans, $676,000 of whole loans, $12.8 million of B notes and $19.5 million of mezzanine loans held for sale as of March 31, 2011, and $4.0 million of bank loans and $24.6 million of mezzanine loans held for sale as of December 31, 2010. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

(Back to Index)

|                                           |   | March 31, |    |   | December 31, |   |
|------------------------------------------------|--------|-----------|---------|--------|--------------|--------|
|                                           |   | 2011      |    |   | 2010         |   |
| Less than one year                             |   | $         | 7,213   |   |         | $      | 4,245 |   |
| Greater than one year and less than five years |   |      | 593,136 |   |         |   | 643,699 |   |
| Five years or greater                          |   |      | 275,451 |   |         |   | 212,519 |   |
|                                           |   | $         | 875,800 |   |         | $      | 860,463 |   |

| Description                               |   | Quantity |   |   | Amortized Cost |   | ContractedInterest Rates |   | Maturity Dates (4)                   |
|-------------------------------------------|--------|----------|--------|--------|----------------|--------|--------------------------|--------|--------------------------------------|
| March 31, 2011:                           |   |     |   |   |           |   |                     |   |                                 |
| Whole loans, floating rate (1)            |   |     | 27     |   |           | $      | 460,081                  |   | LIBOR plus 1.50% to LIBOR plus 5.75% |   | May 2011 toMay 2017 |
| B notes, floating rate                    |   |     | 2      |   |           |   | 24,242                   |   | LIBOR plus 2.50% to LIBOR plus 3.01% |   | July 2011 toOctober 2011 |
| B notes, fixed rate                       |   |     | 2      |   |           |   | 30,925                   |   | 7.00% to 8.68%                       |   | July 2011 toApril 2016 |
| Mezzanine loans, floating rate            |   |     | 5      |   |           |   | 81,878                   |   | LIBOR plus 2.20% to LIBOR plus 3.00% |   | May 2011 toJanuary 2013 |
| Mezzanine loans, fixed rate (2)           |   |     | 4      |   |           |   | 33,532                   |   | 8.65% to 11.00%                      |   | January 2016 toSeptember 2016 |
| Total (3)                            |   |     | 40     |   |           | $      | 630,658                  |   |                                 |   |   |
|                                      |   |     |   |   |           |   |                     |   |                                 |   |   |
| December 31, 2010:                        |   |     |   |   |           |   |                     |   |                                 |   |   |
| Whole loans, floating rate  (1) |   |     | 25     |   |           | $      | 441,372                  |   | LIBOR plus 1.50% to LIBOR plus 5.75% |   | May 2011 toJanuary 2018 |
| B notes, floating rate                    |   |     | 2      |   |           |   | 26,485                   |   | LIBOR plus 2.50% to LIBOR plus 3.01% |   | July 2011 toOctober 2011 |
| B notes, fixed rate                       |   |     | 2      |   |           |   | 30,966                   |   | 7.00% to 8.68%                       |   | July 2011 toApril 2016 |
| Mezzanine loans, floating rate            |   |     | 6      |   |           |   | 93,266                   |   | LIBOR plus 2.15% to LIBOR plus 3.00% |   | May 2011 toJanuary 2013 |
| Mezzanine loans, fixed rate (2)           |   |     | 5      |   |           |   | 53,545                   |   | 8.14% to 11.00%                      |   | January 2016 toSeptember 2016 |
| Total (3)                            |   |     | 40     |   |           | $      | 645,634                  |   |                                 |   |   |

----

----

(Back to Index)

| (1) | Whole loans had $9.1 million and $5.0 million in unfunded loan commitments as of March 31, 2011 and December 31, 2010, respectively.  These commitments are funded as the borrowers require additional funding and have satisfied the requirements to obtain this additional funding. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Fixed rate mezzanine loan dates exclude a loan that matured in May 2010 and is in default and has been on non-accrual status as of December 31, 2010.  This loan was written-off as of March 31, 2011. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The total does not include an allowance for loan losses of $25.9 million and $31.6 million recorded as of March 31, 2011 and December 31, 2010, respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Maturity dates do not include possible extension options that may be available to the borrowers. |
|-----|--------------------------------------------------------------------------------------------------|

| Description               |   | 2011   |    |   | 2012   |   |    | 2013 and Thereafter |   |   | Total   |   |
|---------------------------|--------|--------|---------|--------|--------|--------|---------|---------------------|--------|--------|---------|--------|
| March 31, 2011:           |   |   |    |   |   |   |    |                |   |   |    |   |
| B notes                   |   | $      | 38,659  |   |   | $      | − |                |   | $      | 16,508  |   |   | $ | 55,167 |   |
| Mezzanine loans           |   |   | − |   |   |   | 23,289  |                |   |   | 92,121  |   |   |   | 115,410 |   |
| Whole loans               |   |   | 107,775 |   |   |   | 87,090  |                |   |   | 265,216 |   |   |   | 460,081 |   |
| Total (2)            |   | $      | 146,434 |   |   | $      | 110,379 |                |   | $      | 373,845 |   |   | $ | 630,658 |   |
| December 31, 2010:        |   |   |    |   |   |   |    |                |   |   |    |   |   |   |   |   |
| B notes                   |   | $      | 40,913  |   |   | $      | − |                |   | $      | 16,538  |   |   | $ | 57,451 |   |
| Mezzanine loans (1)  |   |   | − |   |   |   | 34,676  |                |   |   | 107,135 |   |   |   | 141,811 |   |
| Whole loans               |   |   | 108,303 |   |   |   | 87,084  |                |   |   | 245,985 |   |   |   | 441,372 |   |
| Total (2)            |   | $      | 149,216 |   |   | $      | 121,760 |                |   | $      | 369,658 |   |   | $ | 640,634 |   |

----

| Description        |   | Allowance for Loan Loss |   |   | Percentage of Total Allowance |   |
|--------------------|--------|-------------------------|--------|--------|-------------------------------|--------|
| March 31, 2011:    |   |                    |   |   |                          |   |
| B notes            |   | $                       | 621    |   |                          |   |   2.2% |   |
| Mezzanine loans    |   |                    | 3,718  |   |                          |   | 13.5% |   |
| Whole loans        |   |                    | 21,499 |   |                          |   | 77.7% |   |
| Bank loans         |   |                    | 1,831  |   |                          |   |   6.6% |   |
| Total              |   | $                       | 27,669 |   |                          |   |   |   |
|               |   |                    |   |   |                          |   |   |   |
| December 31, 2010: |   |                    |   |   |                          |   |   |   |
| B notes            |   | $                       | 899    |   |                          |   |   2.6% |   |
| Mezzanine loans    |   |                    | 8,553  |   |                          |   | 25.0% |   |
| Whole loans        |   |                    | 22,165 |   |                          |   | 64.8% |   |
| Bank loans         |   |                    | 2,616  |   |                          |   |   7.6% |   |
| Total              |   | $                       | 34,233 |   |                          |   |   |   |

----

(Back to Index)

|                                           |   | Commercial Real Estate Loans |    |   | Bank Loans |   |    | Loans Receivable-Related Party |   |   | Total   |   |
|------------------------------------------------|--------|------------------------------|---------|--------|------------|--------|---------|--------------------------------|--------|--------|---------|--------|
| March 31, 2011:                                |   |                         |    |   |       |   |    |                           |   |   |    |   |
| Allowance for losses atJanuary 1, 2011         |   | $                            | 31,617  |   |       | $      | 2,616   |                           |   | $      | − |   |   | $ | 34,233 |   |
| Provision for (reversal of) loan loss          |   |                         | 3,121   |   |       |   | (515    | )                              |   |   | − |   |   |   | 2,606 |   |
| Loans charged-off                              |   |                         | (8,900  | )      |       |   | (270    | )                              |   |   | − |   |   |   | (9,170 | ) |
| Recoveries                                     |   |                         | − |   |       |   | − |                           |   |   | − |   |   |   | − |   |
| Allowance for losses atMarch 31, 2011          |   | $                            | 25,838  |   |       | $      | 1,831   |                           |   | $      | − |   |   | $ | 27,669 |   |
|                                           |   |                         |    |   |       |   |    |                           |   |   |    |   |   |   |   |   |
| Ending balance:                                |   |                         |    |   |       |   |    |                           |   |   |    |   |   |   |   |   |
| Individually evaluated forimpairment           |   | $                            | 15,300  |   |       | $      | 112     |                           |   | $      | − |   |   | $ | 15,412 |   |
| Collectively evaluated forimpairment           |   | $                            | 10,538  |   |       | $      | 1,719   |                           |   | $      | − |   |   | $ | 12,257 |   |
| Loans acquired withdeteriorated credit quality |   | $                            | − |   |       | $      | − |                           |   | $      | − |   |   | $ | − |   |
|                                           |   |                         |    |   |       |   |    |                           |   |   |    |   |   |   |   |   |
| Loans:                                         |   |                         |    |   |       |   |    |                           |   |   |    |   |   |   |   |   |
| Ending balance:                                |   |                         |    |   |       |   |    |                           |   |   |    |   |   |   |   |   |
| Individually evaluated forimpairment           |   | $                            | 36,000  |   |       | $      | 362     |                           |   | $      | − |   |   | $ | 36,362 |   |
| Collectively evaluated forimpairment           |   | $                            | 594,658 |   |       | $      | 875,438 |                           |   | $      | 9,689   |   |   | $ | 1,479,785 |   |
| Loans acquired withdeteriorated credit quality |   | $                            | − |   |       | $      | − |                           |   | $      | − |   |   | $ | − |   |

----

(Back to Index)

|                                           |   | Commercial Real Estate Loans |    |   | Bank Loans |   |    | Lease Receivables |   |   | Loans Receivable-Related Party |   |   | Total  |    |
|------------------------------------------------|--------|------------------------------|---------|--------|------------|--------|---------|-------------------|--------|--------|--------------------------------|--------|--------|--------|---------|
| December 31, 2010:                             |   |                         |    |   |       |   |    |              |   |   |                           |   |   |   |    |
| Allowance for losses atJanuary 1, 2010         |   | $                            | 29,297  |   |       | $      | 17,825  |              |   | $      | 1,140                          |   |   | $      | − |   |   | $ | 48,262 |   |
| Provision for (reversal of)loan loss           |   |                         | 44,357  |   |       |   | (1,348  | )                 |   |   | 312                            |   |   |   | − |   |   |   | 43,321 |   |
| Loans charged-off                              |   |                         | (42,037 | )      |       |   | (13,861 | )                 |   |   | (1,432                         | )      |   |   | − |   |   |   | (57,330 | ) |
| Recoveries                                     |   |                         | − |   |       |   | − |              |   |   | 50                             |   |   |   | − |   |   |   | 50 |   |
| Allowance for losses atDecember 31, 2010       |   | $                            | 31,617  |   |       | $      | 2,616   |              |   | $      | 70                             |   |   | $      | − |   |   | $ | 34,303 |   |
|                                           |   |                         |    |   |       |   |    |              |   |   |                           |   |   |   |    |   |   |   |   |   |
| Ending balance:                                |   |                         |    |   |       |   |    |              |   |   |                           |   |   |   |    |   |   |   |   |   |
| Individually evaluated forimpairment           |   | $                            | 20,844  |   |       | $      | 112     |              |   | $      | −                        |   |   | $      | − |   |   | $ | 20,956 |   |
| Collectively evaluated forimpairment           |   | $                            | 10,773  |   |       | $      | 2,504   |              |   | $      | 70                             |   |   | $      | − |   |   | $ | 13,347 |   |
| Loans acquired withdeteriorated credit quality |   | $                            | − |   |       | $      | − |              |   | $      | −                        |   |   | $      | − |   |   | $ | − |   |
|                                           |   |                         |    |   |       |   |    |              |   |   |                           |   |   |   |    |   |   |   |   |   |
| Loans:                                         |   |                         |    |   |       |   |    |              |   |   |                           |   |   |   |    |   |   |   |   |   |
| Ending balance:                                |   |                         |    |   |       |   |    |              |   |   |                           |   |   |   |    |   |   |   |   |   |
| Individually evaluated forimpairment           |   | $                            | 42,219  |   |       | $      | 362     |              |   | $      | 10,024                         |   |   | $      | − |   |   | $ | 52,605 |   |
| Collectively evaluated forimpairment           |   | $                            | 603,415 |   |       | $      | 860,101 |              |   | $      | 99,658                         |   |   | $      | 9,927   |   |   | $ | 1,573,101 |   |
| Loans acquired withdeteriorated credit quality |   | $                            | − |   |       | $      | − |              |   | $      | −                        |   |   | $      | − |   |   | $ | − |   |

|                     |   | Rating 1 |    |   | Rating 2 |   |   | Rating 3 |   |   | Rating 4 |   |   | Rating 5 |   |   | Held for Sale |   |   | Total  |   |
|--------------------------|--------|----------|---------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|---------------|--------|--------|--------|--------|
| As of March 31, 2011:    |   |     |    |   |     |   |   |     |   |   |     |   |   |     |   |   |          |   |   |   |   |
| Bank loans               |   | $        | 787,108 |   |     | $      | 31,150 |     |   | $      | 41,330   |   |   | $        | 5,960  |   |          | $      | 362    |   |   | $ | 9,890 |   |   | $ | 875,800 |   |
|                     |   |     |    |   |     |   |   |     |   |   |     |   |   |     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2010: |   |     |    |   |     |   |   |     |   |   |     |   |   |     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Bank loans               |   | $        | 759,161 |   |     | $      | 43,858 |     |   | $      | 45,115   |   |   | $        | 7,940  |   |          | $      | 362    |   |   | $ | 4,027 |   |   | $ | 860,463 |   |

----

(Back to Index)

|                     |   | Rating 1 |    |   | Rating 2 |   |    | Rating 3 |   |   | Rating 4 |   |   | Held for Sale |    |   | Total  |   |
|--------------------------|--------|----------|---------|--------|----------|--------|---------|----------|--------|--------|----------|--------|--------|---------------|---------|--------|--------|--------|
| As of March 31, 2011:    |   |     |    |   |     |   |    |     |   |   |     |   |   |          |    |   |   |   |
| Whole loans              |   | $        | 169,503 |   |     | $      | 45,559  |     |   | $      | 208,343  |   |   | $             | 36,000  |   |   | $      | 676 |   |   | $ | 460,081 |   |
| B notes                  |   |     | 16,508  |   |     |   | 11,492  |     |   |   | 14,417   |   |   |          | − |   |   |   | 12,750 |   |   |   | 55,167 |   |
| Mezzanine loans          |   |     | 7,525   |   |     |   | 33,805  |     |   |   | 54,552   |   |   |          | − |   |   |   | 19,528 |   |   |   | 115,410 |   |
|                     |   | $        | 193,536 |   |     | $      | 90,856  |     |   | $      | 277,312  |   |   | $             | 36,000  |   |   | $      | 32,954 |   |   | $ | 630,658 |   |
| As of December 31, 2010: |   |     |    |   |     |   |    |     |   |   |     |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Whole loans              |   | $        | 123,350 |   |     | $      | 16,143  |     |   | $      | 264,660  |   |   | $             | 37,219  |   |   | $      | − |   |   | $ | 441,372 |   |
| B notes                  |   |     | 16,538  |   |     |   | − |     |   |   | 40,913   |   |   |          | − |   |   |   | − |   |   |   | 57,451 |   |
| Mezzanine loans          |   |     | 32,635  |   |     |   | − |     |   |   | 84,610   |   |   |          | 5,000   |   |   |   | 24,566 |   |   |   | 146,811 |   |
|                     |   | $        | 172,523 |   |     | $      | 16,143  |     |   | $      | 390,183  |   |   | $             | 42,219  |   |   | $      | 24,566 |   |   | $ | 645,634 |   |

|                           |   |   |    |   |   |   |    | Greater |   |    |    |   |       |    |    |   |       |   |        | Total Loans |   |
|--------------------------------|--------|--------|---------|--------|--------|--------|---------|---------|--------|---------|---------|--------|------------|---------|---------|--------|------------|--------|-------------|-------------|--------|
|                           |   |   | 30-59   |   |   |   | 60-89   |    |   | than 90 |    |   | Total Past |    |    |   |       |   | Total Loans |        |   | > 90 Days and |   |
|                           |   | Days   |    |   | Days   |   |    | Days    |   |    | Due     |   |       | Current |    |   | Receivable |   |        | Accruing    |   |
| March 31, 2011:                |   |   |    |   |   |   |    |    |   |    |    |   |       |    |    |   |       |   |        |        |   |   |   |
| Whole loans                    |   | $      | − |   |   | $      | − |    |   | $       | − |   |       | $       | − |   |       | $      | 460,081     |        |   | $ | 460,081 |   |   | $ | − |   |
| B notes                        |   |   | − |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 55,167      |        |   |   | 55,167 |   |   |   | − |   |
| Mezzanine loans                |   |   | − |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 115,410     |        |   |   | 115,410 |   |   |   | − |   |
| Bank loans                     |   |   | − |   |   |   | − |    |   |    | 362     |   |       |    | 362     |   |       |   | 875,438     |        |   |   | 875,800 |   |   |   | − |   |
| Loans receivable-related party |   |   | − |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 9,689       |        |   |   | 9,689 |   |   |   | − |   |
| Total loans                    |   | $      |    |   |   | $      |    |    |   | $       | 362     |   |       | $       | 362     |   |       | $      | 1,515,785   |        |   | $ | 1,516,147 |   |   | $ | − |   |
|                           |   |   |    |   |   |   |    |    |   |    |    |   |       |    |    |   |       |   |        |        |   |   |   |   |   |   |   |   |
| December 31, 2010:             |   |   |    |   |   |   |    |    |   |    |    |   |       |    |    |   |       |   |        |        |   |   |   |   |   |   |   |   |
| Whole loans                    |   | $      | − |   |   | $      | − |    |   | $       | − |   |       | $       | − |   |       | $      | 441,372     |        |   | $ | 441,372 |   |   | $ | − |   |
| B notes                        |   |   | − |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 57,451      |        |   |   | 57,451 |   |   |   | − |   |
| Mezzanine loans                |   |   | − |   |   |   | − |    |   |    | 5,000   |   |       |    | 5,000   |   |       |   | 141,811     |        |   |   | 146,811 |   |   |   | − |   |
| Bank loans                     |   |   | − |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 860,463     |        |   |   | 860,463 |   |   |   | − |   |
| Lease receivables              |   |   | 630     |   |   |   | 237     |    |   |    | 829     |   |       |    | 1,696   |   |       |   | 107,986     |        |   |   | 109,682 |   |   |   | − |   |
| Loans receivable-related party |   |   | − |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 9,927       |        |   |   | 9,927 |   |   |   | − |   |
| Total loans                    |   | $      | 630     |   |   | $      | 237     |    |   | $       | 5,829   |   |       | $       | 6,696   |   |       | $      | 1,619,010   |        |   | $ | 1,625,706 |   |   | $ | − |   |

----

(Back to Index)

|                                                               |   |     |    |   |      |   |    |      |   |   | Average     |   |   |       |    |
|--------------------------------------------------------------------|--------|----------|---------|--------|-----------|--------|---------|-----------|--------|--------|-------------|--------|--------|------------|---------|
|                                                               |   |     |    |   | Unpaid    |   |    |      |   |   | Investment  |   |   | Interest   |    |
|                                                               |   | Recorded |    |   | Principal |   |    | Specific  |   |   | in Impaired |   |   | Income     |    |
|                                                               |   | Balance  |    |   | Balance   |   |    | Allowance |   |   | Loans       |   |   | Recognized |    |
| March 31, 2011:                                                    |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |
| Loans and lease receivables without aspecific valuation allowance: |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |
| Whole loans                                                        |   | $        | 112,433 | (1)    |      | $      | 112,433 |      |   | $      | −     |   |   | $          | 111,959 |   |   | $ | 513 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Bank loans                                                         |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Loans and lease receivables with aspecific valuation allowance:    |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Whole loans                                                        |   |     | 36,000  |   |      |   | 36,000  |      |   |   | (15,300     | )      |   |       | 35,880  |   |   |   | 227 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | 5,000   |   |   |   | − |   |
| Bank loans                                                         |   |     | 362     |   |      |   | 362     |      |   |   | (112        | )      |   |       | 362     |   |   |   | − |   |
|                                                               |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Total:                                                             |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Whole loans                                                        |   | $        | 148,433 |   |      | $      | 148,433 |      |   | $      | (15,300     | )      |   | $          | 147,839 |   |   | $ | 740 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | 5,000   |   |   |   | − |   |
| Bank loans                                                         |   |     | 362     |   |      |   | 362     |      |   |   | (112        | )      |   |       | 362     |   |   |   | − |   |
|                                                               |   | $        | 148,795 |   |      | $      | 148,795 |      |   | $      | (15,412     | )      |   | $          | 153,201 |   |   | $ | 740 |   |
| December 31, 2010:                                                 |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Loans and lease receivables without aspecific valuation allowance: |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Whole loans                                                        |   | $        | 111,401 | (1)    |      | $      | 111,401 |      |   | $      | −     |   |   | $          | 58,058  |   |   | $ | 1,133 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Bank loans                                                         |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Lease receivables                                                  |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Loans and lease receivables with aspecific valuation allowance:    |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Whole loans                                                        |   |     | 37,219  |   |      |   | 37,219  |      |   |   | (15,844     | )      |   |       | 36,740  |   |   |   | 993 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | 5,000   |   |      |   | 5,000   |      |   |   | (5,000      | )      |   |       | 5,000   |   |   |   | − |   |
| Bank loans                                                         |   |     | 362     |   |      |   | 362     |      |   |   | (112        | )      |   |       | 8,971   |   |   |   | − |   |
| Lease receivables                                                  |   |     | 10,024  |   |      |   | 10,024  |      |   |   | (4,107      | )      |   |       | 4,791   |   |   |   | − |   |
|                                                               |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Total:                                                             |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Whole loans                                                        |   | $        | 148,620 |   |      | $      | 148,620 |      |   | $      | (15,844     | )      |   | $          | 94,798  |   |   | $ | 2,126 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | 5,000   |   |      |   | 5,000   |      |   |   | (5,000      | )      |   |       | 5,000   |   |   |   | − |   |
| Bank loans                                                         |   |     | 362     |   |      |   | 362     |      |   |   | (112        | )      |   |       | 8,971   |   |   |   | − |   |
| Lease receivables                                                  |   |     | 10,024  |   |      |   | 10,024  |      |   |   | (4,107      | )      |   |       | 4,791   |   |   |   | − |   |
|                                                               |   | $        | 164,006 |   |      | $      | 164,006 |      |   | $      | (25,063     | )      |   | $          | 113,560 |   |   | $ | 2,126 |   |

----

| (1) | Specific allowances were not taken on whole loans with a par value of $112.4 million and $111.4 million as of March 31, 2011 and December 31, 2010, respectively which were evaluated and deemed to be TDRs.  These TDRs do not have an associated specific loan loss allowance because the principal and interest amount is considered recoverable based on expected collateral performance and / or guarantees made by the borrowers. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

(Back to Index)

|                                               |   | Outstanding Borrowings |      |   | Weighted Average Borrowing Rate |   |   |   | Weighted Average Remaining Maturity |   | Value of Collateral |   |
|----------------------------------------------------|--------|------------------------|-----------|--------|---------------------------------|--------|--------|--------|-------------------------------------|--------|---------------------|--------|
| March 31, 2011:                                    |   |                   |      |   |                            |   |   |   |                                |   |                |   |
| RREF CDO 2006-1 Senior Notes (1)              |   | $                      | 173,182   |   |                            |   | 1.32%  |   |                                |   | 35.4 years          |   | $ | 229,859 |   |
| RREF CDO 2007-1 Senior Notes (2)              |   |                   | 325,228   |   |                            |   | 0.81%  |   |                                |   | 35.5 years          |   |   | 361,186 |   |
| Apidos CDO I Senior Notes (3)                 |   |                   | 319,911   |   |                            |   | 0.88%  |   |                                |   |   6.3 years    |   |   | 316,219 |   |
| Apidos CDO III Senior Notes (4)               |   |                   | 260,813   |   |                            |   | 0.76%  |   |                                |   |   9.2 years    |   |   | 260,709 |   |
| Apidos Cinco CDO Senior Notes (5)             |   |                   | 319,519   |   |                            |   | 0.82%  |   |                                |   |   9.1 years    |   |   | 325,559 |   |
| Unsecured Junior Subordinated Debentures (7)       |   |                   | 50,431    |   |                            |   | 6.26%  |   |                                |   | 25.4 years          |   |   | − |   |
| Repurchase Agreements  (8)          |   |                   | 14,617    |   |                            |   | 1.51%  |   |                                |   | 18.0 days           |   |   | 17,522 |   |
| Total                                              |   | $                      | 1,463,701 |   |                            |   | 1.07%  |   |                                |   | 18.0 years          |   | $ | 1,511,054 |   |
|                                               |   |                   |      |   |                            |   |   |   |                                |   |                |   |   |   |   |
| December 31, 2010:                                 |   |                   |      |   |                            |   |   |   |                                |   |                |   |   |   |   |
| RREF CDO 2006-1 Senior Notes (1)              |   | $                      | 173,053   |   |                            |   | 1.33%  |   |                                |   | 35.6 years          |   | $ | 215,063 |   |
| RREF CDO 2007-1 Senior Notes (2)              |   |                   | 325,025   |   |                            |   | 0.82%  |   |                                |   | 35.8 years          |   |   | 367,792 |   |
| Apidos CDO I Senior Notes (3)                 |   |                   | 319,748   |   |                            |   | 0.87%  |   |                                |   |   6.6 years    |   |   | 309,746 |   |
| Apidos CDO III Senior Notes (4)               |   |                   | 260,682   |   |                            |   | 0.75%  |   |                                |   |   9.5 years    |   |   | 250,309 |   |
| Apidos Cinco CDO Senior Notes (5)             |   |                   | 319,373   |   |                            |   | 0.79%  |   |                                |   |   9.4 years    |   |   | 319,563 |   |
| Equipment Contract Backed Notes, Series 2010-2 (6) |   |                   | 95,016    |   |                            |   | 5.00%  |   |                                |   |   5.4 years    |   |   | 109,612 |   |
| Unsecured Junior Subordinated Debentures (7)       |   |                   | 50,354    |   |                            |   | 6.24%  |   |                                |   | 25.7 years          |   |   | − |   |
| Total                                              |   | $                      | 1,543,251 |   |                            |   | 1.30%  |   |                                |   | 17.6 years          |   | $ | 1,572,085 |   |

----

| (1) | Amount represents principal outstanding of $174.9 million and $174.9 million less unamortized issuance costs of $1.7 million and $1.8 million as of March 31, 2011 and December 31, 2010, respectively.  This CDO transaction closed in August 2006. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Amount represents principal outstanding of $328.6 million and $328.5 million less unamortized issuance costs of $3.4 million and $3.5 million as of March 31, 2011 and December 31, 2010, respectively.  This CDO transaction closed in June 2007. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Amount represents principal outstanding of $321.5 million less unamortized issuance costs of $1.6 million as of March 31, 2011 and $1.8 million as of December 31, 2010.  This CDO transaction closed in August 2005. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Amount represents principal outstanding of $262.5 million less unamortized issuance costs of $1.7 million as of March 31, 2011 and $1.8 million as of December 31, 2010.  This CDO transaction closed in May 2006. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Amount represents principal outstanding of $322.0 million less unamortized issuance costs of $2.5 million as of March 31, 2011 and $2.6 million as of December 31, 2010.  This CDO transaction closed in May 2007. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Amount represents principal outstanding of $96.1 million less unamortized issuance costs of $1.1 million as of December 31, 2010.  There was no outstanding balance as of March 31, 2011. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

| (8) | Amount represents principal outstanding of $15.1 million less unamortized deferred debt costs of $498,000 related to a CMBS repurchase facility as of March 31, 2011. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                    |   | Amount atRisk (1) |   |   | Weighted Average Maturity in Days |   |   | Weighted Average Interest Rate |   |
|-----------------------------------------|--------|-------------------|--------|--------|-----------------------------------|--------|--------|--------------------------------|--------|
| March 31, 2011:                         |   |              |   |   |                              |   |   |                           |   |
| Wells Fargo Bank, National Association. |   | $                 | 3,056  |   |                              |   | 18     |                           |   |   | 1.50%    |   |

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| (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. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                  |   | Non-Employee Directors |    |   | Non-Employees |   |      | Total  |   |
|---------------------------------------|--------|------------------------|---------|--------|---------------|--------|-----------|--------|--------|
| Unvested shares as of January 1, 2011 |   |                   | 16,939  |   |          |   | 518,018   |   |   |   | 534,957 |   |
| Issued                                |   |                   | 15,200  |   |          |   | 911,165   |   |   |   | 926,365 |   |
| Vested                                |   |                   | (16,939 | )      |          |   | (285,508  | )      |   |   | (302,447 | ) |
| Forfeited                             |   |                   | − |   |          |   | −   |   |   |   | − |   |
| Unvested shares as of March 31, 2011  |   |                   | 15,200  |   |          |   | 1,143,675 |   |   |   | 1,158,875 |   |

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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, 2011 |   |              | 602,666 |   |                            | $      | 14.99   |                                                   |   |   |                                     |   |   |   |
| Granted                           |   |              | − |   |                            |   | − |                                                   |   |   |                                     |   |   |   |
| Exercised                         |   |              | − |   |                            |   | − |                                                   |   |   |                                     |   |   |   |
| Forfeited                         |   |              | − |   |                            |   | − |                                                   |   |   |                                     |   |   |   |
| Outstanding as of March 31, 2011  |   |              | 602,666 |   |                            | $      | 14.99   |                                                   |   |   | 4                                        |   |   | $ | 408 |   |
| Exercisable at March 31, 2011     |   |              | 602,666 |   |                            | $      | 14.99   |                                                   |   |   | 4                                        |   |   | $ | 408 |   |

|                                                   |   | Three Month EndedMarch 31, |    |
|--------------------------------------------------------|--------|----------------------------|---------|
|                                                   |   | 2011                       |    |   | 2010 |   |
| Options granted to Manager and non-employees           |   | $                          | − |   |   | $ | 20 |   |
| Restricted shares granted to Manager and non-employees |   |                       | 432     |   |   |   | 676 |   |
| Restricted shares granted to non-employee directors    |   |                       | 28      |   |   |   | 28 |   |
| Total equity compensation expense                      |   | $                          | 460     |   |   | $ | 724 |   |

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|                                                                |   | Three Months EndedMarch 31, |       |
|---------------------------------------------------------------------|--------|-----------------------------|------------|
|                                                                |   | 2011                        |       |   | 2010 |   |
| Basic:                                                              |   |                        |       |   |   |   |
| Net income                                                          |   | $                           | 13,142     |   |   | $ | 1,406 |   |
| Weighted average number of shares outstanding                       |   |                        | 60,147,820 |   |   |   | 37,987,192 |   |
| Basic net income per share                                          |   | $                           | 0.22       |   |   | $ | 0.04 |   |
|                                                                |   |                        |       |   |   |   |   |   |
| Diluted:                                                            |   |                        |       |   |   |   |   |   |
| Net income                                                          |   | $                           | 13,142     |   |   | $ | 1,406 |   |
| Weighted average number of shares outstanding                       |   |                        | 60,147,820 |   |   |   | 37,987,192 |   |
| Additional shares due to assumed conversion of dilutive instruments |   |                        | 249,810    |   |   |   | 163,413 |   |
| Adjusted weighted-average number of common shares outstanding       |   |                        | 60,397,630 |   |   |   | 38,150,605 |   |
| Diluted net income per share                                        |   | $                           | 0.22       |   |   | $ | 0.04 |   |

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|   | ● | dealer quotes, as described above; |
|--------|---------|------------------------------------|

|   | ● | quotes on more actively-traded, higher-rated securities issued in a similar time period, adjusted for differences in rating and seniority; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | the value resulting from an internal valuation model using an income approach based upon an appropriate risk-adjusted yield, time value and projected losses using default assumptions based upon an historical analysis of underlying loan performance. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                     |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |   | Total  |   |
|------------------------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|--------|--------|
| March 31, 2011:                          |   |    |    |   |    |   |    |    |   |   |   |   |
| Assets:                                  |   |    |    |   |    |   |    |    |   |   |   |   |
| Investment securities, trading           |   | $       | − |   |    | $      | − |    |   | $      | 31,270 |   |   | $ | 31,270 |   |
| Investment securities available-for-sale |   |    | − |   |    |   | 66,345  |    |   |   | 24,744 |   |   |   | 91,089 | (1) |
| Total assets at fair value               |   | $       | − |   |    | $      | 66,345  |    |   | $      | 56,014 |   |   | $ | 122,359 |   |
|                                     |   |    |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Liabilities:                             |   |    |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Derivatives (net)                        |   | $       | − |   |    | $      | 1,930   |    |   | $      | 10,079 |   |   | $ | 12,009 |   |
| Total liabilities at fair value          |   | $       | − |   |    | $      | 1,930   |    |   | $      | 10,079 |   |   | $ | 12,009 |   |
|                                     |   |    |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| December 31, 2010:                       |   |    |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Assets:                                  |   |    |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Investment securities, trading           |   | $       | − |   |    | $      | − |    |   | $      | 17,723 |   |   | $ | 17,723 |   |
| Investment securities available-for-sale |   |    | − |   |    |   | 38,303  |    |   |   | 25,657 |   |   |   | 63,960 |   |
| Total assets at fair value               |   | $       | − |   |    | $      | 38,303  |    |   | $      | 43,380 |   |   | $ | 81,683 |   |
|                                     |   |    |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Liabilities:                             |   |    |    |   |    |   |    |    |   |   |   |   |   |   |   |   |
| Derivatives (net)                        |   | $       | − |   |    | $      | 2,363   |    |   | $      | 10,929 |   |   | $ | 13,292 |   |
| Total liabilities at fair value          |   | $       | − |   |    | $      | 2,363   |    |   | $      | 10,929 |   |   | $ | 13,292 |   |

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| (1) | Balance does not include a $31.2 million investment in preferred stock and warrants which is carried at cost and therefore not required to be at fair value. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                         |   | Level 3 |    |
|------------------------------------------------------------------------------|--------|---------|---------|
| Beginning balance, January 1, 2010                                           |   | $       | 44,542  |   |
| Total gains or losses (realized/unrealized):                                 |   |    |    |   |
| Included in earnings                                                         |   |    | (6,936  | ) |
| Purchases                                                                    |   |    | 40,415  |   |
| Sales                                                                        |   |    | (19,468 | ) |
| Paydowns                                                                     |   |    | (1,276  | ) |
| Transfers out of Level 3                                                     |   |    | (43,090 | ) |
| Unrealized losses – included in accumulated other comprehensive income |   |    | 29,193  |   |
| Beginning balance, January 1, 2011                                           |   |    | 43,380  |   |
| Total gains or losses (realized/unrealized):                                 |   |    |    |   |
| Included in earnings                                                         |   |    | 2,347   |   |
| Purchases                                                                    |   |    | 17,947  |   |
| Sales                                                                        |   |    | (6,043  | ) |
| Paydowns                                                                     |   |    | (1,306  | ) |
| Transfers out of Level 3                                                     |   |    | (4,437  | ) |
| Unrealized losses – included in accumulated other comprehensive income |   |    | 4,126   |   |
| Ending balance, March 31, 2011                                               |   | $       | 56,014  |   |

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|                                                                         |   | Level 3 |    |
|------------------------------------------------------------------------------|--------|---------|---------|
| Beginning balance, January 1, 2010                                           |   | $       | − |   |
| Transfers into Level 3                                                       |   |    | 10,929  |   |
| Beginning balance, January 1, 2011                                           |   |    | 10,929  |   |
| Unrealized losses – included in accumulated other comprehensive income |   |    | 850     |   |
| Ending balance, March 31, 2011                                               |   | $       | 10,079  |   |

|                        |   | Level 1 |    |   | Level 2 |   |    | Level 3 |   |   | Total   |   |
|-----------------------------|--------|---------|---------|--------|---------|--------|---------|---------|--------|--------|---------|--------|
| March 31, 2011:             |   |    |    |   |    |   |    |    |   |   |    |   |
| Assets:                     |   |    |    |   |    |   |    |    |   |   |    |   |
| Loans held for sale         |   |    | − |   |    |   | 9,890   |    |   |   | 32,954  |   |   |   | 42,844 |   |
| Total assets at fair value  |   | $       | − |   |    | $      | 9,890   |    |   | $      | 32,954  |   |   | $ | 42,844 |   |
|                        |   |    |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| December 31, 2010:          |   |    |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Assets:                     |   |    |    |   |    |   |    |    |   |   |    |   |   |   |   |   |
| Loans held for sale         |   | $       | − |   |    | $      | 4,027   |    |   | $      | 24,566  |   |   | $ | 28,593 |   |
| Impaired loans              |   |    | − |   |    |   | 250     |    |   |   | 132,777 |   |   |   | 133,027 |   |
| Property available-for-sale |   |    | − |   |    |   | − |    |   |   | 4,444   |   |   |   | 4,444 |   |
| Equity                      |   |    | − |   |    |   | − |    |   |   | 147     |   |   |   | 147 |   |
| Total assets at fair value  |   | $       | − |   |    | $      | 4,277   |    |   | $      | 161,934 |   |   | $ | 166,211 |   |

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|                                 |   | Fair Value of Financial Instruments |      |
|--------------------------------------|--------|-------------------------------------|-----------|
|                                 |   | (in thousands)                      |      |
|                                 |   | March 31, 2011                      |      |   | December 31, 2010 |   |
|                                 |   | Carrying value                      |      |   | Fair value |   |   | Carrying value |   |   | Fair value |   |
| Loans held-for-investment            |   | $                                   | 1,435,945 |   |   | $ | 1,436,290 |   |   | $ | 1,443,271 |   |   | $ | 1,439,376 |   |
| Loans receivable–related party |   | $                                   | 9,689     |   |   | $ | 9,689 |   |   | $ | 9,927 |   |   | $ | 9,927 |   |
| CDOs                                 |   | $                                   | 1,398,653 |   |   | $ | 1,054,269 |   |   | $ | 1,397,880 |   |   | $ | 905,790 |   |
| Junior subordinated notes            |   | $                                   | 50,431    |   |   | $ | 16,924 |   |   | $ | 50,354 |   |   | $ | 16,848 |   |

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| Fair Value of Derivative Instruments as of March 31, 2011 |   |
|-----------------------------------------------------------|--------|
| (in thousands)                                            |   |
|                                                      |   | Liability Derivatives |   |
|                                                      |   | Notional Amount |   | Balance Sheet Location |   | Fair Value |   |
| Interest rate cap agreement                               |   | $ | 14,841 |   | Derivatives, at fair value |   | $ | − |   |
|                                                      |   |   |   |   |   |   |   |   |   |
| Interest rate swap contracts                              |   | $ | 186,119 |   | Derivatives, at fair value |   | $ | (12,009 | ) |
|                                                      |   |   |   |   |   |   |   |   |   |
|                                                      |   |   |   |   | Accumulated other comprehensive loss |   | $ | 12,009 |   |

| The Effect of Derivative Instruments on the Statement of Operations for the |   |
|-----------------------------------------------------------------------------|--------|
| For the Three Months Ended March 31, 2011                                   |   |
| (in thousands)                                                              |   |
|                                                                        |   |   |   |   |   |   |   |
|                                                                        |   | Liability Derivatives |   |
|                                                                        |   | Notional Amount |   | Statement of Operations Location |   | UnrealizedLoss (1) |   |
| Interest rate cap agreement                                                 |   | $ | 14,841 |   | Interest expense |   | $ | − |   |
|                                                                        |   |   |   |   |   |   |   |   |   |
| Interest rate swap contracts                                                |   | $ | 186,119 |   | Interest expense |   | $ | 2,114 |   |

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| ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONAND RESULTS OF OPERATIONS |
|---------|--------------------------------------------------------------------------------------------|

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|   | ● | $1.9 million of commercial real estate loan principal repayments; |
|--------|---------|-------------------------------------------------------------------|

|   | ● | $24.6 million at commercial real estate loan sale proceeds; |
|--------|---------|-------------------------------------------------------------|

|   | ● | $142.0 million of bank loan principal repayments; and |
|--------|---------|-------------------------------------------------------|

|   | ● | $9.1 million of bank loan sale proceeds. |
|--------|---------|------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                    |   | Three Months EndedMarch 31, 2011 |    |   | Three Months EndedMarch 31, 2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|--------|----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                    |   |                             |    |   | Weighted Average                 |   |   |   |   |   | Weighted Average |   |
|                                                                                                                                                                                                                                                                                                                                    |   | Interest Income                  |    |   | Yield                            |   |   | Balance |   |   | Interest Income |   |   | Yield |   |   | Balance |   |
| Interest income:                                                                                                                                                                                                                                                                                                                        |   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income from loans:                                                                                                                                                                                                                                                                                                             |   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank loans                                                                                        |   | $                                | 13,048  |   |                             |   | 5.91% |   |   | $ | 878,019 |   |   | $ | 9,721 |   |   |   | 4.27% |   |   | $ | 907,934 |   |
| Commercial real estate loans                                                                                                                                                                                                                                                                                                            |   |                             | 7,100   |   |                             |   | 4.28% |   |   | $ | 644,479 |   |   |   | 8,664 |   |   |   | 4.71% |   |   | $ | 727,131 |   |
| Total interest income from loans                                                                                                                                                                                                                                                                                                        |   |                             | 20,148  |   |                             |   |   |   |   |   |   |   |   |   | 18,385 |   |   |   |   |   |   |   |   |   |
| Interest income from securities:                                                                                                                                                                                                                                                                                                        |   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| CMBS-private placement                                                                  |   |                             | 2,234   |   |                             |   | 6.00% |   |   | $ | 148,578 |   |   |   | 2,534 |   |   |   |  7.53% |   |   | $ | 131,247 |   |
| Securities held-to-maturity                                                             |   |                             | 370     |   |                             |   | 4.64% |   |   | $ | 31,953 |   |   |   | 337 |   |   |   | 3.75% |   |   | $ | 35,945 |   |
| Other ABS                                                                               |   |                             | − |   |                             |   | N/A |   |   |   | N/A |   |   |   | 3 |   |   |   | N/A |   |   |   | N/A |   |
| Total interest income fromsecurities available-for-sale                                                                                                                                                                                                                                                                                 |   |                             | 2,604   |   |                             |   |   |   |   |   |   |   |   |   | 2,874 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                    |   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Leasing                                                                  |   |                             | − |   |                             |   | N/A |   |   |   | N/A |   |   |   | 235 |   |   |   | 10.50% |   |   | $ | 9,164 |   |
|                                                                                                                                                                                                                                                                                                                                    |   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income – other:                                                                                                                                                                                                                                                                                                          |   |                             |    |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preference payments on structured notes                                                           |   |                             | 1,291   |   |                             |   | N/A |   |   |   | N/A |   |   |   | − |   |   |   | N/A |   |   |   | N/A |   |
| Temporary investment inover-night repurchase agreements                                                                                                                                                                                                                                                                                 |   |                             | 1,186   |   |                             |   | N/A |   |   |   | N/A |   |   |   | 215 |   |   |   | N/A |   |   |   | N/A |   |
| Total interest income − other                                                                                                                                                                                                                                                                                                     |   |                             | 2,477   |   |                             |   |   |   |   |   |   |   |   |   | 215 |   |   |   |   |   |   |   |   |   |
| Total interest income                                                    |   | $                                | 25,229  |   |                             |   |   |   |   |   |   |   |   | $ | 21,709 |   |   |   |   |   |   |   |   |   |

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| Type of Security                       |   | Coupon Interest |   | Unamortized (Discount) Premium |   |    | Net Amortization/Accretion |   |   | Interest Income |   |   | Fee Income |    |   | Total  |   |
|----------------------------------------|--------|----------------------|--------|--------------------------------|--------|---------|----------------------------|--------|--------|-----------------|--------|--------|------------|---------|--------|--------|--------|
| Three Months Ended March 31, 2011:     |   |                 |   |                           |   |    |                       |   |   |            |   |   |       |    |   |   |   |
| Bank loans                             |   |                 | 3.61%  |                           | $      | (23,089 | )                          |   | $      | 5,052           |   |   | $          | 7,996   |   |   | $      | − |   |   | $ | 13,048 |   |
| Commercial real estate loans           |   |                 | 4.34%  |                           | $      | (173    | )                          |   |   | (2              | )      |   |       | 7,057   |   |   |   | 45 |   |   |   | 7,100 |   |
| Total interest income from loans       |   |                 |   |                           |   |    |                       |   |   | 5,050           |   |   |       | 15,053  |   |   |   | 45 |   |   |   | 20,148 |   |
|                                   |   |                 |   |                           |   |    |                       |   |   |            |   |   |       |    |   |   |   |   |   |   |   |   |   |
| CMBS-private placement                 |   |                 | 3.27%  |                           | $      | (19,693 | )                          |   |   | 1,016           |   |   |       | 1,218   |   |   |   | − |   |   |   | 2,234 |   |
| Securities held-to-maturity            |   |                 | 2.63%  |                           | $      | (2,726  | )                          |   |   | 118             |   |   |       | 252     |   |   |   | − |   |   |   | 370 |   |
| Other ABS                              |   |                 |   |                           |   |    |                       |   |   | −         |   |   |       | − |   |   |   | − |   |   |   | − |   |
| Total interest income from securities  |   |                 |   |                           |   |    |                       |   |   | 1,134           |   |   |       | 1,470   |   |   |   | − |   |   |   | 2,604 |   |
|                                   |   |                 |   |                           |   |    |                       |   |   |            |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Preference payments onstructured notes |   |                 |   |                           |   |    |                       |   |   | −         |   |   |       | 1,291   |   |   |   | − |   |   |   | 1,291 |   |
| Other                                  |   |                 |   |                           |   |    |                       |   |   | −         |   |   |       | 1,186   |   |   |   | − |   |   |   | 1,186 |   |
| Total interest income – other    |   |                 |   |                           |   |    |                       |   |   | −         |   |   |       | 2,477   |   |   |   | − |   |   |   | 2,477 |   |
|                                   |   |                 |   |                           |   |    |                       |   |   |            |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Total interest income                  |   |                 |   |                           |   |    |                       |   | $      | 6,184           |   |   | $          | 19,000  |   |   | $      | 45 |   |   | $ | 25,229 |   |
|                                   |   |                 |   |                           |   |    |                       |   |   |            |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Three Months Ended March 31, 2010:     |   |                 |   |                           |   |    |                       |   |   |            |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Bank loans                             |   |                 | 3.00%  |                           | $      | (29,864 | )                          |   | $      | 2,873           |   |   | $          | 6,848   |   |   | $      | − |   |   | $ | 9,721 |   |
| Commercial real estate loans           |   |                 | 4.84%  |                           | $      | (36     | )                          |   |   | (6              | )      |   |       | 8,557   |   |   |   | 113 |   |   |   | 8,664 |   |
| Total interest income fromloans        |   |                 |   |                           |   |    |                       |   |   | 2,867           |   |   |       | 15,405  |   |   |   | 113 |   |   |   | 18,385 |   |
|                                   |   |                 |   |                           |   |    |                       |   |   |            |   |   |       |    |   |   |   |   |   |   |   |   |   |
| CMBS-private placement                 |   |                 | 4.24%  |                           | $      | (30,807 | )                          |   |   | 1,080           |   |   |       | 1,454   |   |   |   | − |   |   |   | 2,534 |   |
| Securities held-to-maturity            |   |                 | 2.38%  |                           | $      | (2,981  | )                          |   |   | 97              |   |   |       | 240     |   |   |   | − |   |   |   | 337 |   |
| Other ABS                              |   |                 |   |                           |   |    |                       |   |   | −         |   |   |       | 3       |   |   |   | − |   |   |   | 3 |   |
| Total interest income from securities  |   |                 |   |                           |   |    |                       |   |   | 1,177           |   |   |       | 1,697   |   |   |   | − |   |   |   | 2,874 |   |
|                                   |   |                 |   |                           |   |    |                       |   |   |            |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Leasing                                |   |                 |   |                           |   |    |                       |   |   | −         |   |   |       | 235     |   |   |   | − |   |   |   | 235 |   |
|                                   |   |                 |   |                           |   |    |                       |   |   |            |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Preference payments onstructured notes |   |                 |   |                           |   |    |                       |   |   | −         |   |   |       | − |   |   |   | − |   |   |   | − |   |
| Other                                  |   |                 |   |                           |   |    |                       |   |   | −         |   |   |       | 215     |   |   |   | − |   |   |   | 215 |   |
| Total interest income – other    |   |                 |   |                           |   |    |                       |   |   | −         |   |   |       | 215     |   |   |   | − |   |   |   | 215 |   |
|                                   |   |                 |   |                           |   |    |                       |   |   |            |   |   |       |    |   |   |   |   |   |   |   |   |   |
| Total interest income                  |   |                 |   |                           |   |    |                       |   | $      | 4,044           |   |   | $          | 17,552  |   |   | $      | 113 |   |   | $ | 21,709 |   |

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(Back to Index)

|   | ● | a decrease in the weighted average balance of assets of $82.6 million to $644.5 million for the three months ended March 31, 2011 from $727.1 million for the three months ended March 31, 2010 primarily as a result of payoffs and paydowns and, to a lesser extent, loan sales and write-offs of impaired loans; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | a decrease in the weighted average yield on these assets to 4.28% for the three months ended March 31, 2011 from 4.71% for the three months ended March 31, 2010, primarily due to decreases in LIBOR floors, which is a reference index for the rates payable on these loans, from loan modifications during 2009 and 2010.  There were $150.6 million of loans with a weighted average LIBOR floor of 2.45% at March 31, 2011 as compared to $189.6 million of loans with a weighted average LIBOR floor of 2.24% at March 31, 2010. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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(Back to Index)

|                         |   | Three Months EndedMarch 31, 2011 |   |   | Three Months EndedMarch 31, 2010 |   |
|------------------------------|--------|----------------------------------|--------|--------|----------------------------------|--------|
|                         |   |                             |   |   | Weighted Average                 |   |   |   |   |   | Weighted Average |   |
|                         |   | Interest Expense                 |   |   | Yield                            |   |   | Balance |   |   | Interest Expense |   |   | Yield |   |   | Balance |   |
| Bank loans                   |   | $                                | 2,290  |   |                             |   | 1.00% |   |   | $ | 906,000 |   |   | $ | 2,193 |   |   |   | 0.97% |   |   | $ | 906,000 |   |
| Commercial real estate loans |   |                             | 1,589  |   |                             |   | 1.24% |   |   | $ | 507,362 |   |   |   | 2,113 |   |   |   | 1.43% |   |   | $ | 587,314 |   |
| CMBS–private placement |   |                             | 56     |   |                             |   | 6.27% |   |   | $ | 3,612 |   |   |   | − |   |   |   | N/A |   |   |   | N/A |   |
| General                      |   |                             | 2,998  |   |                             |   | 5.88% |   |   | $ | 217,064 |   |   |   | 3,631 |   |   |   | 5.5%7 |   |   | $ | 256,048 |   |
| Total interest expense       |   | $                                | 6,933  |   |                             |   |   |   |   |   |   |   |   | $ | 7,937 |   |   |   |   |   |   |   |   |   |

|                |   | Three Months EndedMarch 31, |   |
|---------------------|--------|-----------------------------|--------|
|                |   | 2011                        |   |   | 2010 |   |
| Other revenue:      |   |                        |   |   |   |   |
| Dividend income     |   |                        | 661    |   |   |   | − |   |
| Fee income          |   |                        | 1,646  |   |   |   | − |   |
| Total other revenue |   | $                           | 2,307  |   |   | $ | − |   |

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|                                      |   | Three Months EndedMarch 31, |   |
|-------------------------------------------|--------|-----------------------------|--------|
|                                      |   | 2011                        |   |   | 2010 |   |
| Non-investment expenses:                  |   |                        |   |   |   |   |
| Management fees – related party     |   | $                           | 2,338  |   |   | $ | 1,152 |   |
| Equity compensation − related party |   |                        | 460    |   |   |   | 722 |   |
| Professional services                     |   |                        | 919    |   |   |   | 819 |   |
| Insurance                                 |   |                        | 177    |   |   |   | 212 |   |
| General and administrative                |   |                        | 945    |   |   |   | 647 |   |
| Amortization of intangible asset          |   |                        | 253    |   |   |   | − |   |
| Income tax expense                        |   |                        | 1,809  |   |   |   | 105 |   |
| Total non-investment expenses             |   | $                           | 6,901  |   |   | $ | 3,657 |   |

|   | ● | $136,000 of real estate expenses from our acceptance of a portfolio of condominiums as a partial loan settlement in September 2010; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | $81,000 of this increase is related to our agreement to reimburse Resource America for the wages, salary and benefits of our Chief Financial Officer, three accounting professionals, our Chairman and 50% of the salary and benefits of a director of investor relations.  We began reimbursing for our Chairman in February 2010. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                    |   | Three Months EndedMarch 31, |    |
|-------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                    |   | 2011                        |    |   | 2010 |   |
| Impairment losses on investment securities                              |   | $                           | (665    | ) |   | $ | (2,665 | ) |
| Recognized in other comprehensive loss                                  |   |                        | (665    | ) |   |   | (2,665 | ) |
| Net impairment losses recognized in earnings                            |   |                        | − |   |   |   | − |   |
| Net realized gain on investment securities available-for-sale and loans |   |                        | 35      |   |   |   | 146 |   |
| Net realized gain on investment securities, trading                     |   |                        | 2,263   |   |   |   | − |   |
| Net unrealized loss on investment securities, trading                   |   |                        | (336    | ) |   |   | − |   |
| Provision for loan and lease losses                                     |   |                        | (2,606  | ) |   |   | (15,371 | ) |
| Gain on the extinguishment of debt                                      |   |                        | − |   |   |   | 6,628 |   |
| Other income (expense)                                                  |   |                        | 84      |   |   |   | (112 | ) |
| Total                                                                   |   | $                           | (560    | ) |   | $ | (8,709 | ) |

|                |   | Three Months Ended |    |
|---------------------|--------|--------------------|---------|
|                |   | March 31,          |    |
|                |   | 2011               |    |   | 2010 |   |
| CRE loan portfolio  |   | $                  | 3,121   |   |   | $ | 15,500 |   |
| Bank loan portfolio |   |               | (515    | ) |   |   | (215 | ) |
| Lease receivables   |   |               | − |   |   |   | 86 |   |
|                |   | $                  | 2,606   |   |   | $ | 15,371 |   |

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(Back to Index)

|                           |   | Amortizedcost (3) |      |   | Dollar price |   |                                                      | Net carrying amount |   |   | Dollar price |   |   | Net carrying amount less amortized cost |                     |   | Dollar price |   |
|--------------------------------|--------|-------------------|-----------|--------|--------------|--------|-----------------------------------------------------------|---------------------|--------|--------|--------------|--------|--------|-----------------------------------------|--------------------------|--------|--------------|--------|
|  March 31, 2011           |   |              |      |   |         |   |                                                      |                |   |   |         |   |   |                                    |                     |   |         |   |
| Floating rate                  |   |              |      |   |         |   |                                                      |                |   |   |         |   |   |                                    |                     |   |         |   |
| CMBS-private placement         |   | $                 | 29,946    |   |         |   | 100.00%                                                   |                |   | $      | 10,328       |   |   |                                    |   34.49%            |   |         | $      | (19,618 | ) |   |   | -65.51% |   |
| Structured notes               |   |              | 21,989    |   |         |   |   26.25%                                             |                |   |   | 31,270       |   |   |                                    |   37.33%            |   |         |   | 9,281 |   |   |   |   11.08% |   |
| Other ABS                      |   |              | −   |   |         |   |          −% |                |   |   | 23           |   |   |                                    |     0.26% |   |         |   | 23 |   |   |   |     0.26% |   |
| B notes (1)               |   |              | 11,492    |   |         |   |   99.93%                                             |                |   |   | 11,324       |   |   |                                    |   98.47%            |   |         |   | (168 | ) |   |   |   -1.46% |   |
| Mezzanine loans (1)       |   |              | 81,878    |   |         |   | 100.00%                                                   |                |   |   | 80,679       |   |   |                                    |   98.54%            |   |         |   | (1,199 | ) |   |   |   -1.46% |   |
| Whole loans (1)           |   |              | 459,405   |   |         |   |   99.90%                                             |                |   |   | 437,906      |   |   |                                    |   95.23%            |   |         |   | (21,499 | ) |   |   |   -4.67% |   |
| Bank loans (2)            |   |              | 865,910   |   |         |   |   97.37%                                             |                |   |   | 866,541      |   |   |                                    |   97.44%            |   |         |   | 631 |   |   |   |     0.07% |   |
| Loans held for sale (3)   |   |              | 23,316    |   |         |   |   86.37%                                             |                |   |   | 23,316       |   |   |                                    |   86.37%            |   |         |   | − |   |   |   |        −% |   |
| ABS held-to-maturity (4)       |   |              | 29,206    |   |         |   |   91.46%                                             |                |   |   | 26,903       |   |   |                                    |   84.26%            |   |         |   | (2,303 | ) |   |   |   -7.20% |   |
| Total floating rate            |   |              | 1,523,142 |   |         |   |   93.82%                                             |                |   |   | 1,488,290    |   |   |                                    |   91.67%            |   |         |   | (34,852 | ) |   |   |   -2.15% |   |
| Fixed rate                     |   |              |      |   |         |   |                                                      |                |   |   |         |   |   |                                    |                     |   |         |   |   |   |   |   |   |   |
| CMBS – private placement |   |              | 75,532    |   |         |   |   58.45%                                             |                |   |   | 80,738       |   |   |                                    |   62.48%            |   |         |   | 5,206 |   |   |   |     4.03% |   |
| B notes (1)               |   |              | 30,925    |   |         |   |   99.51%                                             |                |   |   | 30,472       |   |   |                                    |   98.05%            |   |         |   | (453 | ) |   |   |   -1.46% |   |
| Mezzanine loans (1)       |   |              | 14,004    |   |         |   | 100.40%                                                   |                |   |   | 11,485       |   |   |                                    |   82.34%            |   |         |   | (2,519 | ) |   |   | -18.06% |   |
| Loans held for sale (3)   |   |              | 19,528    |   |         |   | 100.14%                                                   |                |   |   | 19,528       |   |   |                                    | 100.14%                  |   |         |   | − |   |   |   |         −% |   |
| Preferred stock and warrants   |   |              | 31,213    |   |         |   | 100.00%                                                   |                |   |   | 31,213       |   |   |                                    | 100.00%                  |   |         |   | − |   |   |   |         −% |   |
| Total fixed rate               |   |              | 171,202   |   |         |   |   76.10%                                             |                |   |   | 173,436      |   |   |                                    |   77.10%            |   |         |   | 2,234 |   |   |   |     1.00% |   |
| Grand total                    |   | $                 | 1,694,344 |   |         |   |   91.66%                                             |                |   | $      | 1,661,726    |   |   |                                    |   89.90%            |   |         | $      | (32,618 | ) |   |   |   -1.76% |   |
|                           |   |              |      |   |         |   |                                                      |                |   |   |         |   |   |                                    |                     |   |         |   |   |   |   |   |   |   |
|  December 31, 2010        |   |              |      |   |         |   |                                                      |                |   |   |         |   |   |                                    |                     |   |         |   |   |   |   |   |   |   |
| Floating rate                  |   |              |      |   |         |   |                                                      |                |   |   |         |   |   |                                    |                     |   |         |   |   |   |   |   |   |   |
| CMBS-private placement         |   | $                 | 31,127    |   |         |   | 100.00%                                                   |                |   | $      | 9,569        |   |   |                                    |   30.74%            |   |         | $      | (21,558 | ) |   |   | -69.26% |   |
| Structured notes               |   |              | 7,984     |   |         |   |   34.09%                                             |                |   |   | 17,723       |   |   |                                    |   75.67%            |   |         |   | 9,739 |   |   |   |   41.58% |   |
| Other ABS                      |   |              | −   |   |         |   |         −%       |                |   |   | 22           |   |   |                                    |     0.26% |   |         |   | 22 |   |   |   |     0.26% |   |
| B notes (1)               |   |              | 26,485    |   |         |   |   99.94%                                             |                |   |   | 26,071       |   |   |                                    |   98.38%            |   |         |   | (414 | ) |   |   |   -1.56% |   |
| Mezzanine loans (1)       |   |              | 83,699    |   |         |   | 100.00%                                                   |                |   |   | 82,680       |   |   |                                    |   98.78%            |   |         |   | (1,019 | ) |   |   |   -1.22% |   |
| Whole loans (1)           |   |              | 441,372   |   |         |   |   99.92%                                             |                |   |   | 419,207      |   |   |                                    |   94.91%            |   |         |   | (22,165 | ) |   |   |   -5.01% |   |
| Bank loans (2)            |   |              | 856,436   |   |         |   |   96.99%                                             |                |   |   | 850,500      |   |   |                                    |   96.32%            |   |         |   | (5,936 | ) |   |   |   -0.67% |   |
| Loans held for sale (3)   |   |              | 13,593    |   |         |   |   55.92%                                             |                |   |   | 13,593       |   |   |                                    |   55.92%            |   |         |   | − |   |   |   |        −% |   |
| ABS held-to-maturity (4)       |   |              | 29,036    |   |         |   |   91.08%                                             |                |   |   | 25,941       |   |   |                                    |   81.37%            |   |         |   | (3,095 | ) |   |   |   -9.71% |   |
| Total floating rate            |   |              | 1,489,732 |   |         |   |   95.86%                                             |                |   |   | 1,445,306    |   |   |                                    |   93.01%            |   |         |   | (44,426 | ) |   |   |   -2.85% |   |
| Fixed rate                     |   |              |      |   |         |   |                                                      |                |   |   |         |   |   |                                    |                     |   |         |   |   |   |   |   |   |   |
| CMBS – private placement |   |              | 52,097    |   |         |   |   48.30%                                             |                |   |   | 54,369       |   |   |                                    |   50.41%            |   |         |   | 2,272 |   |   |   |     2.11% |   |
| B notes (1)               |   |              | 30,966    |   |         |   |   99.53%                                             |                |   |   | 30,482       |   |   |                                    |   97.97%            |   |         |   | (484 | ) |   |   |   -1.56% |   |
| Mezzanine loans (1)       |   |              | 38,545    |   |         |   | 100.23%                                                   |                |   |   | 31,012       |   |   |                                    |   80.64%            |   |         |   | (7,533 | ) |   |   | -19.59% |   |
| Loans held for sale (3)   |   |              | 15,000    |   |         |   |   75.00%                                             |                |   |   | 15,000       |   |   |                                    |   75.00%            |   |         |   | − |   |   |   |        −% |   |
| Lease receivables (5)     |   |              | 109,682   |   |         |   | 100.00%                                                   |                |   |   | 109,612      |   |   |                                    |   99.94%            |   |         |   | (70 | ) |   |   |   -0.06% |   |
| Total fixed rate               |   |              | 246,290   |   |         |   |   80.20%                                             |                |   |   | 240,475      |   |   |                                    |   78.30%            |   |         |   | (5,815 | ) |   |   |   -1.90% |   |
| Grand total                    |   | $                 | 1,736,022 |   |         |   |   93.28%                                             |                |   | $      | 1,685,781    |   |   |                                    |   90.58%            |   |         | $      | (50,241 | ) |   |   |   -2.70% |   |

----

| (1) | Net carrying amount includes an allowance for loan losses of $25.9 million at March 31, 2011, allocated as follows:  B notes ($621,000), mezzanine loans ($3.7 million) and whole loans ($21.6 million).  Net carrying amount includes an allowance for loan losses of $31.6 million at December 31, 2010, allocated as follows:  B notes ($899,000), mezzanine loans ($8.5 million) and whole loans ($22.2 million). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The bank loan portfolio is carried at amortized cost less allowance for loan loss and was $864.1 million at March 31, 2011.  The amount disclosed represents net realizable value at March 31, 2011, which includes a $1.8 million allowance for loan losses at March 31, 2011.  The bank loan portfolio is carried at amortized cost less allowance for loan loss and was $853.8 million at December 31, 2010.  The amount disclosed represents net realizable value at December 31, 2010, which includes a $2.6 million allowance for loan losses at December 31, 2010. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Loans held for sale are carried at the lower of cost or market.  Amortized cost is equal to fair value. |
|-----|-------------------------------------------------------------------------------------------------------------------|

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(Back to Index)

| (4) | ABS held-to-maturity are carried at amortized cost less other-than-temporary impairments. |
|-----|-------------------------------------------------------------------------------------------|

|   | ● | 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 security; and |
|--------|---------|----------------------------------------------------------------------------|

|   | ● | whether, based upon our intent, it is more likely than not that we will sell the security before the recovery of the amortized cost basis. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | dealer quotes, as described above; |
|--------|---------|------------------------------------|

|   | ● | quotes on more actively-traded, higher-rated securities issued in a similar time period, adjusted for differences in rating and seniority; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | the value resulting from an internal valuation model using an income approach based upon an appropriate risk-adjusted yield, time value and projected losses using default assumptions based upon an historical analysis of underlying loan performance. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

(Back to Index)

|                            |   | Fair Value   |    |   |   During Quarter Ended March 31, 2011 |   |    | Fair Value |   |
|---------------------------------|--------|--------------|---------|--------|--------------------------------------------|--------|---------|------------|--------|
|                            |   | at           |    |   |                                       |   |    |       |   |   |   |   |   |   |   | at |   |
|                            |   | December 31, |    |   | Net                                        |   |    | Upgrades/  |   |   | MTM Change on |   |   | March 31, |   |
|                            |   | 2010         |    |   | Purchases                                  |   |    | Downgrades |   |   | Same Ratings |   |   | 2011 |   |
| Moody’s Ratings Category: |   |         |    |   |                                       |   |    |       |   |   |   |   |   |   |   |
| Aaa                             |   | $            | − |   |                                       | $      | 12,754  |       |   | $ | − |   |   | $ | − |   |   | $ | 12,754 |   |
| Aa1 through Aa3                 |   |         | 4,493   |   |                                       |   | − |       |   |   | − |   |   |   | (26 | ) |   |   | 4,467 |   |
| A1 through A3                   |   |         | 18,570  |   |                                       |   | − |       |   |   | − |   |   |   | 916 |   |   |   | 19,486 |   |
| Baa1 through Baa3               |   |         | 28,660  |   |                                       |   | 9,673   |       |   |   | − |   |   |   | 1,452 |   |   |   | 39,785 |   |
| Ba1 through Ba3                 |   |         | 1,480   |   |                                       |   | − |       |   |   | − |   |   |   | 1,640 |   |   |   | 3,120 |   |
| B1 through B3                   |   |         | 517     |   |                                       |   | − |       |   |   | − |   |   |   | (158 | ) |   |   | 359 |   |
| Caa1 through Caa3               |   |         | 6,739   |   |                                       |   | − |       |   |   | − |   |   |   | 1,080 |   |   |   | 7,819 |   |
| Ca through C                    |   |         | 3,479   |   |                                       |   | − |       |   |   | − |   |   |   | (203 | ) |   |   | 3,276 |   |
| Total                           |   | $            | 63,938  |   |                                       | $      | 22,427  |       |   | $ | − |   |   | $ | 4,701 |   |   | $ | 91,066 |   |
|                            |   |         |    |   |                                       |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |
| S&P Ratings Category:       |   |         |    |   |                                       |   |    |       |   |   |   |   |   |   |   |   |   |   |   |   |
| AAA                             |   | $            | − |   |                                       | $      | 12,754  |       |   | $ | − |   |   | $ | − |   |   | $ | 12,754 |   |
| A+ through A-                   |   |         | 9,562   |   |                                       |   | − |       |   |   | − |   |   |   | 585 |   |   |   | 10,147 |   |
| BBB+ through BBB-               |   |         | 36,385  |   |                                       |   | 9,673   |       |   |   | (2,148 | ) |   |   | 3,033 |   |   |   | 46,943 |   |
| BB+ through BB-                 |   |         | 7,690   |   |                                       |   | − |       |   |   | − |   |   |   | 380 |   |   |   | 8,070 |   |
| B+ through B-                   |   |         | − |   |                                       |   | − |       |   |   | 2,148 |   |   |   | − |   |   |   | 2,148 |   |
| CCC+ through CCC-               |   |         | 10,220  |   |                                       |   | − |       |   |   | − |   |   |   | 701 |   |   |   | 10,921 |   |
| D                               |   |         | 81      |   |                                       |   | − |       |   |   | − |   |   |   | 2 |   |   |   | 83 |   |
| Total                           |   | $            | 63,938  |   |                                       | $      | 22,427  |       |   | $ | − |   |   | $ | 4,701 |   |   | $ | 91,066 |   |

|               |   | Amortized Cost |   |   | Unrealized Gains |   |   | Unrealized Losses |   |   | FairValue |   |
|--------------------|--------|----------------|--------|--------|------------------|--------|--------|-------------------|--------|--------|-----------|--------|
| March 31, 2011:    |   |           |   |   |             |   |   |              |   |   |      |   |
| Structured notes   |   | $              | 21,989 |   |             | $      | 9,403  |              |   | $      | (122      | )      |   | $ | 31,270 |   |
| Total              |   | $              | 21,989 |   |             | $      | 9,403  |              |   | $      | (122      | )      |   | $ | 31,270 |   |
|               |   |           |   |   |             |   |   |              |   |   |      |   |   |   |   |   |
| December 31, 2010: |   |           |   |   |             |   |   |              |   |   |      |   |   |   |   |   |
| Structured notes   |   | $              | 7,984  |   |             | $      | 9,739  |              |   | $      | −   |   |   | $ | 17,723 |   |
| Total              |   | $              | 7,984  |   |             | $      | 9,739  |              |   | $      | −   |   |   | $ | 17,723 |   |

----

(Back to Index)

| Description                               |   | Number of Loans |   |   | Amortized Cost |   | ContractedInterest Rates |   | Maturity Dates (4)                   |
|-------------------------------------------|--------|-----------------|--------|--------|----------------|--------|--------------------------|--------|--------------------------------------|
| March 31, 2011:                           |   |            |   |   |           |   |                     |   |                                 |
| Whole loans, floating rate  (1) |   |            | 27     |   |           | $      | 460,081                  |   | LIBOR plus 1.50% to LIBOR plus 5.75% |   | May 2011 toMay 2017 |
| B notes, floating rate                    |   |            | 2      |   |           |   | 24,242                   |   | LIBOR plus 2.50% to LIBOR plus 3.01% |   | July 2011 toOctober 2011 |
| B notes, fixed rate                       |   |            | 2      |   |           |   | 30,925                   |   | 7.00% to 8.68%                       |   | July 2011 toApril 2016 |
| Mezzanine loans, floating rate            |   |            | 5      |   |           |   | 81,878                   |   | LIBOR plus 2.20% to LIBOR plus 3.00% |   | May 2011 toJanuary 2013 |
| Mezzanine loans, fixed rate (2)           |   |            | 4      |   |           |   | 33,532                   |   | 8.65% to 11.00%                      |   | January 2016 toSeptember 2016 |
| Total (3)                            |   |            | 40     |   |           | $      | 630,658                  |   |                                 |   |   |
|                                      |   |            |   |   |           |   |                     |   |                                 |   |   |
| December 31, 2010:                        |   |            |   |   |           |   |                     |   |                                 |   |   |
| Whole loans, floating rate  (1) |   |            | 25     |   |           | $      | 441,372                  |   | LIBOR plus 1.50% to LIBOR plus 5.75% |   | May 2011 toJanuary 2018 |
| B notes, floating rate                    |   |            | 2      |   |           |   | 26,485                   |   | LIBOR plus 2.50% to LIBOR plus 3.01% |   | July 2011 toOctober 2011 |
| B notes, fixed rate                       |   |            | 2      |   |           |   | 30,966                   |   | 7.00% to 8.68%                       |   | July 2011 toApril 2016 |
| Mezzanine loans, floating rate            |   |            | 6      |   |           |   | 93,266                   |   | LIBOR plus 2.15% to LIBOR plus 3.00% |   | May 2011 toJanuary 2013 |
| Mezzanine loans, fixed rate (2)           |   |            | 5      |   |           |   | 53,545                   |   | 8.14% to 11.00%                      |   | January 2016 toSeptember 2016 |
| Total (3)                            |   |            | 40     |   |           | $      | 645,634                  |   |                                 |   |   |

----

| (1) | Whole loans had $9.1 million and $5.0 million in unfunded loan commitments as of March 31, 2011 and December 31, 2010, respectively.  These commitments are funded as the loans require additional funding and the related borrowers have satisfied the requirements to obtain this additional funding. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Fixed rate mezzanine loan dates exclude a loan that matured in May 2010 and is in default and has been on non-accrual status as of December 31, 2010. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The total does not include an allowance for loan losses of $25.9 million and $31.6 million recorded as of March 31, 2011 and December 31, 2010, respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Maturity dates do not include possible extension options that may be available to the borrowers. |
|-----|--------------------------------------------------------------------------------------------------|

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(Back to Index)

|                            |   |   | March 31, 2011 |    |   | December 31, 2010 |   |
|---------------------------------|--------|--------|----------------|---------|--------|-------------------|--------|
|                            |   |   | Amortized cost |    |   | Fair Value        |   |   | Amortized cost |   |   | Fair Value |   |
| Moody’s ratings category: |   |   |           |    |   |              |   |   |   |   |   |   |   |
| Baa1 through Baa3               |   |   | $              | 26,604  |   |              | $      | 26,805 |   |   | $ | 27,262 |   |   | $ | 27,505 |   |
| Ba1 through Ba3                 |   |   |           | 459,529 |   |              |   | 467,446 |   |   |   | 432,153 |   |   |   | 437,269 |   |
| B1 through B3                   |   |   |           | 331,332 |   |              |   | 330,772 |   |   |   | 351,147 |   |   |   | 347,664 |   |
| Caa1 through Caa3               |   |   |           | 23,079  |   |              |   | 19,789 |   |   |   | 20,879 |   |   |   | 16,690 |   |
| Ca                              |   |   |           | 7,005   |   |              |   | 3,189 |   |   |   | 7,062 |   |   |   | 2,857 |   |
| No rating provided              |   |   |           | 28,251  |   |              |   | 28,430 |   |   |   | 21,960 |   |   |   | 21,906 |   |
| Total                           |   |   | $              | 875,800 |   |              | $      | 876,431 |   |   | $ | 860,463 |   |   | $ | 853,891 |   |
| S&P ratings category:       |   |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| BBB+ through BBB-               |   |   | $              | 62,282  |   |              | $      | 62,643 |   |   | $ | 54,560 |   |   | $ | 55,004 |   |
| BB+ through BB-                 |   |   |           | 384,921 |   |              |   | 391,044 |   |   |   | 373,971 |   |   |   | 378,949 |   |
| B+ through B-                   |   |   |           | 358,469 |   |              |   | 360,019 |   |   |   | 360,581 |   |   |   | 358,068 |   |
| CCC+ through CCC-               |   |   |           | 30,541  |   |              |   | 24,231 |   |   |   | 29,707 |   |   |   | 22,171 |   |
| CC+ through CC-                 |   |   |           | 1,633   |   |              |   | 1,369 |   |   |   | 1,633 |   |   |   | 1,279 |   |
| C+ through C-                   |   |   |           | − |   |              |   | − |   |   |   | − |   |   |   | − |   |
| D                          |   |   |           |    | 1,050  |              |   |   | 662 |   |   |   | 1,050 |   |   |   | 431 |   |
| No rating provided              |   |   |           | 36,904  |   |              |   | 36,463 |   |   |   | 38,961 |   |   |   | 37,989 |   |
| Total                           |   |   | $              | 875,800 |   |              | $      | 876,431 |   |   | $ | 860,463 |   |   | $ | 853,891 |   |
| Weighted average rating factor  |   |   |           | 1,901   |   |              |   |   |   |   |   | 2,061 |   |   |   |   |   |

|                            |   | March 31, 2011 |    |   | December 31, 2010 |   |
|---------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                            |   | Amortized cost |    |   | Fair Value        |   |   | Amortized cost |   |   | Fair Value |   |
| Moody’s ratings category: |   |           |    |   |              |   |   |   |   |   |   |   |
| Aa1 through Aa3                 |   | $              | 2,699   |   |              | $      | 2,924 |   |   | $ | 2,766 |   |   | $ | 3,025 |   |
| A1 through A3                   |   |           | 7,693   |   |              |   | 8,176 |   |   |   | 7,625 |   |   |   | 8,117 |   |
| Baa1 through Baa3               |   |           | 2,875   |   |              |   | 2,875 |   |   |   | 1,950 |   |   |   | 1,950 |   |
| Ba1 through Ba3                 |   |           | 1,584   |   |              |   | 1,540 |   |   |   | 2,503 |   |   |   | 2,338 |   |
| B1 through B3                   |   |           | 6,534   |   |              |   | 5,471 |   |   |   | 4,998 |   |   |   | 3,881 |   |
| Caa1 through Caa3               |   |           | 7,821   |   |              |   | 5,917 |   |   |   | 9,194 |   |   |   | 6,630 |   |
| Ca                              |   |           | − |   |              |   | − |   |   |   | − |   |   |   | − |   |
| Total                           |   | $              | 29,206  |   |              | $      | 26,903 |   |   | $ | 29,036 |   |   | $ | 25,941 |   |
|                            |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| S&P ratings category:       |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| AA+ through AA-                 |   | $              | 5,139   |   |              | $      | 5,452 |   |   | $ | 5,099 |   |   | $ | 5,437 |   |
| A+ through A-                   |   |           | 5,253   |   |              |   | 5,648 |   |   |   | 5,292 |   |   |   | 5,705 |   |
| BBB+ through BBB-               |   |           | 3,521   |   |              |   | 3,529 |   |   |   | 3,516 |   |   |   | 3,479 |   |
| BB+ through BB-                 |   |           | 393     |   |              |   | 309 |   |   |   | 3,062 |   |   |   | 2,765 |   |
| B+ through B-                   |   |           | 3,302   |   |              |   | 3,232 |   |   |   | − |   |   |   | − |   |
| No rating provided              |   |           | 11,598  |   |              |   | 8,733 |   |   |   | 12,067 |   |   |   | 8,555 |   |
| Total                           |   | $              | 29,206  |   |              | $      | 26,903 |   |   | $ | 29,036 |   |   | $ | 25,941 |   |
| Weighted average rating factor  |   |           | 3,107   |   |              |   |   |   |   |   | 3,105 |   |   |   |   |   |

----

(Back to Index)

|                                         |   | Amortized Cost (1) |    |
|----------------------------------------------|--------|--------------------|---------|
|                                         |   | Apidos I           |    |   | Apidos III |   |   | Apidos Cinco |   |   | Total |   |
| March 31, 2011:                              |   |               |    |   |   |   |   |   |   |   |   |   |
| Loans held for investment:                   |   |               |    |   |   |   |   |   |   |   |   |   |
| First lien loans                             |   | $                  | 292,994 |   |   | $ | 242,795 |   |   | $ | 298,658 |   |   | $ | 834,447 |   |
| Second lien loans                            |   |               | 10,689  |   |   |   | 9,126 |   |   |   | 10,151 |   |   |   | 29,966 |   |
| Subordinated second lien loans               |   |               | 163     |   |   |   | 122 |   |   |   | − |   |   |   | 285 |   |
| Defaulted second lien loans                  |   |               | − |   |   |   | − |   |   |   | 362 |   |   |   | 362 |   |
| Total                                        |   |               | 303,846 |   |   |   | 252,043 |   |   |   | 309,171 |   |   |   | 865,060 |   |
| First lien loans held for sale at fair value |   |               | 4,442   |   |   |   | 2,472 |   |   |   | 2,976 |   |   |   | 9,890 |   |
| Total                                        |   | $                  | 308,288 |   |   | $ | 254,515 |   |   | $ | 312,147 |   |   | $ | 874,950 |   |
|                                         |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010:                           |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans held for investment:                   |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| First lien loans                             |   | $                  | 288,163 |   |   | $ | 236,142 |   |   | $ | 296,208 |   |   | $ | 820,513 |   |
| Second lien loans                            |   |               | 12,902  |   |   |   | 10,011 |   |   |   | 11,513 |   |   |   | 34,426 |   |
| Subordinated second lien loans               |   |               | 163     |   |   |   | 122 |   |   |   | − |   |   |   | 285 |   |
| Defaulted second lien loans                  |   |               | − |   |   |   | − |   |   |   | 362 |   |   |   | 362 |   |
| Total                                        |   |               | 301,228 |   |   |   | 246,275 |   |   |   | 308,083 |   |   |   | 855,586 |   |
| First lien loans held for sale at fair value |   |               | 2,822   |   |   |   | − |   |   |   | 1,205 |   |   |   | 4,027 |   |
| Total                                        |   | $                  | 304,050 |   |   | $ | 246,275 |   |   | $ | 309,288 |   |   | $ | 859,613 |   |
|                                         |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| (1) | All loans are senior and secured unless otherwise noted. |
|-----|----------------------------------------------------------|

|                           |   | March 31, |    |   | December 31, |   |
|--------------------------------|--------|-----------|---------|--------|--------------|--------|
|                           |   | 2011      |    |   | 2010         |   |
| Leases, net of unearned income |   | $         | − |   |         | $      | 75,908 |   |
| Operating leases               |   |      | − |   |         |   | 17,900 |   |
| Notes receivable               |   |      | − |   |         |   | 15,874 |   |
| Subtotal                       |   |      | − |   |         |   | 109,682 |   |
| Allowance for lease losses     |   |      | − |   |         |   | (70 | ) |
| Total                          |   | $         | − |   |         | $      | 109,612 |   |

----

(Back to Index)

|                       |   | March 31, |   |   | December 31, |   |
|----------------------------|--------|-----------|--------|--------|--------------|--------|
|                       |   | 2011      |   |   | 2010         |   |
| Other receivables          |   | $         | 312    |   |         | $      | 1,374 |   |
| Prepaid assets             |   |      | 1,104  |   |         |   | 590 |   |
| Dividend receivable        |   |      | 661    |   |         |   | − |   |
| Management fees receivable |   |      | 956    |   |         |   | − |   |
| Principal paydown          |   |      | 60     |   |         |   | 468 |   |
| Total                      |   | $         | 3,093  |   |         | $      | 2,432 |   |

|   | ● | an increase of $514,000 in prepaid assets which is primarily related to the director and officer insurance policy and the timing of when it is paid; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | an increase of $661,000 in dividend receivables as a result of our January 2011 investment in LCC; and |
|--------|---------|--------------------------------------------------------------------------------------------------------|

|   | ● | an increase of $956,000 in management fees receivables which are related to our investment in a subsidiary which entitles us to collect senior, subordinated and incentive fees related to five collateralized loan obligations.  There were no such fees for the three months ended March 31, 2010. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

(Back to Index)

|               |   |   | Benchmark rate |   | Notional value |    |   | Strike rate |   |   | Effective date |   |     | Maturity date |   | Fair value |   |
|--------------------|--------|--------|----------------|--------|----------------|---------|--------|-------------|--------|--------|----------------|--------|----------|---------------|--------|------------|--------|
| Interest rate swap |   |   | 1 month LIBOR  |   | $              | 12,965  |   |        |   | 4.63%  |           |   | 12/04/06 |          |   | 07/01/11   |   | $ | (143 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 1,071   |   |        |   | 0.31%  |           |   | 03/04/11 |          |   | 08/01/11   |   |   | − |   |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 3,239   |   |        |   | 0.30%  |           |   | 03/16/11 |          |   | 08/01/11   |   |   | − |   |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 12,150  |   |        |   | 5.44%  |           |   | 06/08/07 |          |   | 03/25/12   |   |   | (611 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 12,750  |   |        |   | 5.27%  |           |   | 07/25/07 |          |   | 08/06/12   |   |   | (824 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 1,022   |   |        |   | 0.64%  |           |   | 02/23/11 |          |   | 11/01/13   |   |   | (1 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 329     |   |        |   | 0.51%  |           |   | 03/18/11 |          |   | 11/01/13   |   |   | − |   |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 1,215   |   |        |   | 0.55%  |           |   | 03/28/11 |          |   | 11/01/13   |   |   | − |   |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 4,250   |   |        |   | 0.84%  |           |   | 03/31/11 |          |   | 01/18/14   |   |   | (4 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 4,143   |   |        |   | 1.93%  |           |   | 02/14/11 |          |   | 05/01/15   |   |   | (26 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 4,250   |   |        |   | 1.95%  |           |   | 04/01/11 |          |   | 03/18/16   |   |   | (6 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 34,176  |   |        |   | 4.13%  |           |   | 01/10/08 |          |   | 05/25/16   |   |   | (2,031 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 1,681   |   |        |   | 5.72%  |           |   | 07/09/07 |          |   | 10/01/16   |   |   | (151 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 1,880   |   |        |   | 5.68%  |           |   | 07/13/07 |          |   | 03/12/17   |   |   | (314 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 81,399  |   |        |   | 5.58%  |           |   | 06/08/07 |          |   | 04/25/17   |   |   | (7,099 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 1,726   |   |        |   | 5.65%  |           |   | 06/28/07 |          |   | 07/15/17   |   |   | (149 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 3,850   |   |        |   | 5.65%  |           |   | 07/19/07 |          |   | 07/15/17   |   |   | (331 | ) |
| Interest rate swap |   |   | 1 month LIBOR  |   |           | 4,023   |   |        |   | 5.41%  |           |   | 08/07/07 |          |   | 07/25/17   |   |   | (319 | ) |
| Total              |   |   |           |   | $              | 186,119 |   |        |   | 4.75%  |           |   |     |          |   |       |   | $ | (12,009 | ) |

|   | ● | In June 2007, we closed RREF CDO 2007-1, a $500.0 million CDO transaction that provided financing for commercial real estate loans.  The investments held by RREF CDO 2007-1 collateralized $458.8 million of senior notes issued by the CDO vehicle, of which RCC Real Estate, Inc., or RCC Real Estate, a subsidiary of ours, purchased 100% of the class H senior notes, class K senior notes, class L senior notes and class M senior notes for $68.0 million at closing, $5.0 million of the Class J senior notes in February 2008. an additional $2.5 million of the Class J senior notes in November 2009, and $11.9 million of the Class E senior notes, $11.9 million of the Class F senior notes and $7.3 million of the Class G senior notes in December 2009, and $250,000 of the Class J senior notes in January 2010.  In addition, RREF 2007-1 CDO Investor, LLC, a subsidiary of RCC Real Estate, purchased a $41.3 million equity interest representing 100% of the outstanding preference shares.  At March 31, 2011, the notes issued to outside investors, net of repurchased notes, had a weighted average borrowing rate of 0.81%. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

(Back to Index)

|   | ● | In May 2007, we closed Apidos Cinco CDO, a $350.0 million CDO transaction that provided financing for bank loans.  The investments held by Apidos Cinco CDO collateralized $322.0 million of senior notes issued by the CDO vehicle.  RCC Commercial Inc., or RCC Commercial, a subsidiary of ours, purchased a $28.0 million equity interest representing 100% of the outstanding preference shares.  At March 31, 2011, the notes issued to outside investors had a weighted average borrowing rate of 0.82%. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | In August 2006, we closed RREF CDO 2006-1, a $345.0 million CDO transaction that provided financing for commercial real estate loans.  The investments held by RREF CDO 2006-1 collateralized $308.7 million of senior notes issued by the CDO vehicle.  RCC Real Estate purchased 100% of the class J senior notes and class K senior notes for $43.1 million at closing and $7.5 million of the Class F senior notes in June 2009, $3.5 million of the Class E senior note and $4.0 million of the Class F senior notes in September 2009 and $20.0 million of the Class A-1 senior notes in February 2010.  In addition, RREF 2006-1 CDO Investor, LLC, a subsidiary of RCC Real Estate, purchased a $36.3 million equity interest representing 100% of the outstanding preference shares.  At March 31, 2011, the notes issued to outside investors, net of repurchased notes, had a weighted average borrowing rate of 1.32%. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | In May 2006, we closed Apidos CDO III, a $285.5 million CDO transaction that provided financing for bank loans.  The investments held by Apidos CDO III collateralized $262.5 million of senior notes issued by the CDO vehicle.  RCC Commercial purchased a $23.0 million equity interest representing 100% of the outstanding preference shares.  At March 31, 2011, the notes issued to outside investors had a weighted average borrowing rate of 0.76%. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | In August 2005, we closed Apidos CDO I, a $350.0 million CDO transaction that provided financing for bank loans.  The investments held by Apidos CDO I collateralize $321.5 million of senior notes issued by the CDO vehicle.  RCC Commercial purchased a $28.5 million equity interest representing 100% of the outstanding preference shares.  At March 31, 2011, the notes issued to outside investors had a weighted average borrowing rate of 0.88%. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

(Back to Index)

|                                           |   | Commercial Real Estate Loans |    |   | Bank Loans |   |    | Loans Receivable-Related Party |   |   | Total   |   |
|------------------------------------------------|--------|-----------------------------------|---------|--------|------------|--------|---------|--------------------------------|--------|--------|---------|--------|
| March 31, 2011:                                |   |                              |    |   |       |   |    |                           |   |   |    |   |
| Allowance for losses atJanuary 1, 2011         |   | $                                 | 31,617  |   |       | $      | 2,616   |                           |   | $      | − |   |   | $ | 34,233 |   |
| Provision for loan loss                        |   |                              | 3,121   |   |       |   | (515    | )                              |   |   | − |   |   |   | 2,606 |   |
| Loans charged-off                              |   |                              | (8,900  | )      |       |   | (270    | )                              |   |   | − |   |   |   | (9,170 | ) |
| Recoveries                                     |   |                              | − |   |       |   | − |                           |   |   | − |   |   |   | − |   |
| Allowance for losses atMarch 31, 2011          |   | $                                 | 25,838  |   |       | $      | 1,831   |                           |   | $      | − |   |   | $ | 27,669 |   |
| Ending balance:                                |   |                              |    |   |       |   |    |                           |   |   |    |   |   |   |   |   |
| Individually evaluated for impairment          |   | $                                 | 15,300  |   |       | $      | 112     |                           |   | $      | − |   |   | $ | 15,412 |   |
| Collectively evaluated for impairment          |   | $                                 | 10,538  |   |       | $      | 1,719   |                           |   | $      | − |   |   | $ | 12,257 |   |
| Loans acquired withdeteriorated credit quality |   | $                                 | − |   |       | $      | − |                           |   | $      | − |   |   | $ | − |   |
| Loans:                                         |   |                              |    |   |       |   |    |                           |   |   |    |   |   |   |   |   |
| Ending balance:                                |   |                              |    |   |       |   |    |                           |   |   |    |   |   |   |   |   |
| Individually evaluated for impairment          |   | $                                 | 36,000  |   |       | $      | 362     |                           |   | $      | − |   |   | $ | 36,362 |   |
| Collectively evaluated for impairment          |   | $                                 | 594,658 |   |       | $      | 875,438 |                           |   | $      | 9,689   |   |   | $ | 1,479,785 |   |
| Loans acquired withdeteriorated credit quality |   | $                                 | − |   |       | $      | − |                           |   | $      | − |   |   | $ | − |   |

|                                           |   | Commercial Real Estate Loans |    |   | Bank Loans |   |    | Lease Receivables |   |   | Loans Receivable-Related Party |   |   | Total  |    |
|------------------------------------------------|--------|------------------------------|---------|--------|------------|--------|---------|-------------------|--------|--------|--------------------------------|--------|--------|--------|---------|
| December 31, 2010:                             |   |                         |    |   |       |   |    |              |   |   |                           |   |   |   |    |
| Allowance for losses atJanuary 1, 2010         |   | $                            | 29,297  |   |       | $      | 17,825  |              |   | $      | 1,140                          |   |   | $      | − |   |   | $ | 48,262 |   |
| Provision for loan loss                        |   |                         | 44,357  |   |       |   | (1,348  | )                 |   |   | 312                            |   |   |   | − |   |   |   | 43,321 |   |
| Loans charged-off                              |   |                         | (42,037 | )      |       |   | (13,861 | )                 |   |   | (1,432                         | )      |   |   | − |   |   |   | (57,330 | ) |
| Recoveries                                     |   |                         | − |   |       |   | − |              |   |   | 50                             |   |   |   | − |   |   |   | 50 |   |
| Allowance for losses atDecember 31, 2010       |   | $                            | 31,617  |   |       | $      | 2,616   |              |   | $      | 70                             |   |   | $      | − |   |   | $ | 34,303 |   |
| Ending balance:                                |   |                         |    |   |       |   |    |              |   |   |                           |   |   |   |    |   |   |   |   |   |
| Individually evaluated forimpairment           |   | $                            | 20,844  |   |       | $      | 112     |              |   | $      | −                        |   |   | $      | − |   |   | $ | 20,956 |   |
| Collectively evaluated forimpairment           |   | $                            | 10,773  |   |       | $      | 2,504   |              |   | $      | 70                             |   |   | $      | − |   |   | $ | 13,347 |   |
| Loans acquired withdeteriorated credit quality |   | $                            | − |   |       | $      | − |              |   | $      | −                        |   |   | $      | − |   |   | $ | − |   |
| Loans:                                         |   |                         |    |   |       |   |    |              |   |   |                           |   |   |   |    |   |   |   |   |   |
| Ending balance:                                |   |                         |    |   |       |   |    |              |   |   |                           |   |   |   |    |   |   |   |   |   |
| Individually evaluated forimpairment           |   | $                            | 42,219  |   |       | $      | 362     |              |   | $      | 10,024                         |   |   | $      | − |   |   | $ | 52,605 |   |
| Collectively evaluated forimpairment           |   | $                            | 603,415 |   |       | $      | 860,101 |              |   | $      | 99,658                         |   |   | $      | 9,927   |   |   | $ | 1,573,101 |   |
| Loans acquired withdeteriorated credit quality |   | $                            | − |   |       | $      | − |              |   | $      | −                        |   |   | $      | − |   |   | $ | − |   |

----

(Back to Index)

|                     |   | Rating 1 |    |   | Rating 2 |   |   | Rating 3 |   |   | Rating 4 |   |   | Rating 5 |   |   | Held for Sale |   |   | Total  |   |
|--------------------------|--------|----------|---------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|---------------|--------|--------|--------|--------|
| As of March 31, 2011:    |   |     |    |   |     |   |   |     |   |   |     |   |   |     |   |   |          |   |   |   |   |
| Bank loans               |   | $        | 787,108 |   |     | $      | 31,150 |     |   | $      | 41,330   |   |   | $        | 5,960  |   |          | $      | 362    |   |   | $ | 9,890 |   |   | $ | 875,800 |   |
|                     |   |     |    |   |     |   |   |     |   |   |     |   |   |     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2010: |   |     |    |   |     |   |   |     |   |   |     |   |   |     |   |   |          |   |   |   |   |   |   |   |   |   |   |   |
| Bank loans               |   | $        | 759,162 |   |     | $      | 43,858 |     |   | $      | 45,115   |   |   | $        | 7,940  |   |          | $      | 362    |   |   | $ | 4,027 |   |   | $ | 860,464 |   |

|                     |   | Rating 1 |    |   | Rating 2 |   |    | Rating 3 |   |   | Rating 4 |   |   | Held for Sale |    |   | Total  |   |
|--------------------------|--------|----------|---------|--------|----------|--------|---------|----------|--------|--------|----------|--------|--------|---------------|---------|--------|--------|--------|
| As of March 31, 2011:    |   |     |    |   |     |   |    |     |   |   |     |   |   |          |    |   |   |   |
| Whole loans              |   | $        | 169,503 |   |     | $      | 45,559  |     |   | $      | 208,343  |   |   | $             | 36,000  |   |   | $      | 676 |   |   | $ | 460,081 |   |
| B notes                  |   |     | 16,508  |   |     |   | 11,492  |     |   |   | 14,417   |   |   |          | − |   |   |   | 12,750 |   |   |   | 55,167 |   |
| Mezzanine loans          |   |     | 7,525   |   |     |   | 33,805  |     |   |   | 54,552   |   |   |          | − |   |   |   | 19,528 |   |   |   | 115,410 |   |
|                     |   | $        | 193,536 |   |     | $      | 90,856  |     |   | $      | 277,312  |   |   | $             | 36,000  |   |   | $      | 32,954 |   |   | $ | 630,658 |   |
| As of December 31, 2010: |   |     |    |   |     |   |    |     |   |   |     |   |   |          |    |   |   |   |   |   |   |   |   |   |
| Whole loans              |   | $        | 123,350 |   |     | $      | 16,143  |     |   | $      | 264,660  |   |   | $             | 37,219  |   |   | $      | − |   |   | $ | 441,372 |   |
| B notes                  |   |     | 16,538  |   |     |   | − |     |   |   | 40,913   |   |   |          | − |   |   |   | − |   |   |   | 57,451 |   |
| Mezzanine loans          |   |     | 32,635  |   |     |   | − |     |   |   | 84,610   |   |   |          | 5,000   |   |   |   | 24,566 |   |   |   | 146,811 |   |
|                     |   | $        | 172,523 |   |     | $      | 16,143  |     |   | $      | 390,183  |   |   | $             | 42,219  |   |   | $      | 24,566 |   |   | $ | 645,634 |   |

----

(Back to Index)

|                           |   |   |          |   |   |   |    | Greater |   |    |    |   |       |    |    |   |       |   |        | Total Loans |   |
|--------------------------------|--------|--------|---------------|--------|--------|--------|---------|---------|--------|---------|---------|--------|------------|---------|---------|--------|------------|--------|-------------|-------------|--------|
|                           |   |   | 30-59         |   |   |   | 60-89   |    |   | than 90 |    |   | Total Past |    |    |   |       |   | Total Loans |        |   | > 90 Days and |   |
|                           |   | Days   |          |   | Days   |   |    | Days    |   |    | Due     |   |       | Current |    |   | Receivable |   |        | Accruing    |   |
| March 31, 2011:                |   |   |          |   |   |   |    |    |   |    |    |   |       |    |    |   |       |   |        |        |   |   |   |
| Whole loans                    |   | $      | −       |   |   | $      | − |    |   | $       | − |   |       | $       | − |   |       | $      | 460,081     |        |   | $ | 460,081 |   |   | $ | − |   |
| B notes                        |   |   | −       |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 55,167      |        |   |   | 55,167 |   |   |   | − |   |
| Mezzanine loans                |   |   | −       |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 115,410     |        |   |   | 115,410 |   |   |   | − |   |
| Bank loans                     |   |   | −       |   |   |   | − |    |   |    | 362     |   |       |    | 362     |   |       |   | 875,438     |        |   |   | 875,800 |   |   |   | − |   |
| Loans receivable-related party |   |   | −       |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 9,689       |        |   |   | 9,689 |   |   |   | − |   |
| Total loans                    |   | $      |  − |   |   | $      | − |    |   | $       | 362     |   |       | $       | 362     |   |       | $      | 1,515,785   |        |   | $ | 1,516,147 |   |   | $ | − |   |
|                           |   |   |          |   |   |   |    |    |   |    |    |   |       |    |    |   |       |   |        |        |   |   |   |   |   |   |   |   |
| December 31, 2010:             |   |   |          |   |   |   |    |    |   |    |    |   |       |    |    |   |       |   |        |        |   |   |   |   |   |   |   |   |
| Whole loans                    |   | $      | −       |   |   | $      | − |    |   | $       | − |   |       | $       | − |   |       | $      | 441,372     |        |   | $ | 441,372 |   |   | $ | − |   |
| B notes                        |   |   | −       |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 57,451      |        |   |   | 57,451 |   |   |   | − |   |
| Mezzanine loans                |   |   | −       |   |   |   | − |    |   |    | 5,000   |   |       |    | 5,000   |   |       |   | 141,811     |        |   |   | 146,811 |   |   |   | − |   |
| Bank loans                     |   |   | −       |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 860,463     |        |   |   | 860,463 |   |   |   | − |   |
| Lease receivables              |   |   | 630           |   |   |   | 237     |    |   |    | 829     |   |       |    | 1,696   |   |       |   | 107,986     |        |   |   | 109,682 |   |   |   | − |   |
| Loans receivable-related party |   |   | −       |   |   |   | − |    |   |    | − |   |       |    | − |   |       |   | 9,927       |        |   |   | 9,927 |   |   |   | − |   |
| Total loans                    |   | $      | 630           |   |   | $      | 237     |    |   | $       | 5,829   |   |       | $       | 6,696   |   |       | $      | 1,619,010   |        |   | $ | 1,625,706 |   |   | $ | − |   |

|                                                               |   |     |    |   |      |   |    |      |   |   | Average     |   |   |       |    |
|--------------------------------------------------------------------|--------|----------|---------|--------|-----------|--------|---------|-----------|--------|--------|-------------|--------|--------|------------|---------|
|                                                               |   |     |    |   | Unpaid    |   |    |      |   |   | Investment  |   |   | Interest   |    |
|                                                               |   | Recorded |    |   | Principal |   |    | Specific  |   |   | in Impaired |   |   | Income     |    |
|                                                               |   | Balance  |    |   | Balance   |   |    | Allowance |   |   | Loans       |   |   | Recognized |    |
| March 31, 2011:                                                    |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |
| Loans and lease receivables without aspecific valuation allowance: |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |
| Whole loans                                                        |   | $        | 112,433 | (1)    |      | $      | 112,433 |      |   | $      | −     |   |   | $          | 111,959 |   |   | $ | 513 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Bank loans                                                         |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Loans and lease receivables with aspecific valuation allowance:    |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Whole loans                                                        |   |     | 36,000  |   |      |   | 36,000  |      |   |   | (15,300     | )      |   |       | 35,880  |   |   |   | 227 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | 5,000   |   |   |   | − |   |
| Bank loans                                                         |   |     | 362     |   |      |   | 362     |      |   |   | (112        | )      |   |       | 362     |   |   |   | − |   |
|                                                               |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Total:                                                             |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Whole loans                                                        |   | $        | 148,433 |   |      | $      | 148,433 |      |   | $      | (15,300     | )      |   | $          | 147,839 |   |   | $ | 740 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | 5,000   |   |   |   | − |   |
| Bank loans                                                         |   |     | 362     |   |      |   | 362     |      |   |   | (112        | )      |   |       | 362     |   |   |   | − |   |
|                                                               |   | $        | 148,795 |   |      | $      | 148,795 |      |   | $      | (15,412     | )      |   | $          | 153,201 |   |   | $ | 740 |   |

----

(Back to Index)

|                                                               |   |     |    |   |      |   |    |      |   |   | Average     |   |   |       |    |
|--------------------------------------------------------------------|--------|----------|---------|--------|-----------|--------|---------|-----------|--------|--------|-------------|--------|--------|------------|---------|
|                                                               |   |     |    |   | Unpaid    |   |    |      |   |   | Investment  |   |   | Interest   |    |
|                                                               |   | Recorded |    |   | Principal |   |    | Specific  |   |   | in Impaired |   |   | Income     |    |
|                                                               |   | Balance  |    |   | Balance   |   |    | Allowance |   |   | Loans       |   |   | Recognized |    |
| December 31, 2010:                                                 |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Loans and lease receivables without aspecific valuation allowance: |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Whole loans                                                        |   | $        | 111,401 | (1)    |      | $      | 111,401 |      |   | $      | −     |   |   | $          | 58,058  |   |   | $ | 1,133 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Bank loans                                                         |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Lease receivables                                                  |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Loans and lease receivables with aspecific valuation allowance:    |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Whole loans                                                        |   |     | 37,219  |   |      |   | 37,219  |      |   |   | (15,844     | )      |   |       | 36,740  |   |   |   | 993 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | 5,000   |   |      |   | 5,000   |      |   |   | (5,000      | )      |   |       | 5,000   |   |   |   | − |   |
| Bank loans                                                         |   |     | 362     |   |      |   | 362     |      |   |   | (112        | )      |   |       | 8,971   |   |   |   | − |   |
| Lease receivables                                                  |   |     | 10,024  |   |      |   | 10,024  |      |   |   | (4,107      | )      |   |       | 4,791   |   |   |   | − |   |
|                                                               |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Total:                                                             |   |     |    |   |      |   |    |      |   |   |        |   |   |       |    |   |   |   |   |   |
| Whole loans                                                        |   | $        | 148,620 |   |      | $      | 148,620 |      |   | $      | (15,844     | )      |   | $          | 94,798  |   |   | $ | 2,126 |   |
| B notes                                                            |   |     | − |   |      |   | − |      |   |   | −     |   |   |       | − |   |   |   | − |   |
| Mezzanine loans                                                    |   |     | 5,000   |   |      |   | 5,000   |      |   |   | (5,000      | )      |   |       | 5,000   |   |   |   | − |   |
| Bank loans                                                         |   |     | 362     |   |      |   | 362     |      |   |   | (112        | )      |   |       | 8,971   |   |   |   | − |   |
| Lease receivables                                                  |   |     | 10,024  |   |      |   | 10,024  |      |   |   | (4,107      | )      |   |       | 4,791   |   |   |   | − |   |
|                                                               |   | $        | 164,006 |   |      | $      | 164,006 |      |   | $      | (25,063     | )      |   | $          | 113,560 |   |   | $ | 2,126 |   |

----

|   | (1) | Specific allowances were not taken on whole loans of $112.4 million and $111.4 million of par value as of March 31, 2011 and December 31, 2010, respectively that were evaluated for and deemed to be troubled debt restructurings, or TDRs.  These TDRs do not have an associated specific loan loss allowance because the principal and interest amount is considered recoverable based on expected collateral performance and / or guarantees made by the borrowers. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                    |   | Three Months Ended |    |
|-------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                    |   | March 31,          |    |
|                                                                    |   | 2011               |    |   | 2010 |   |
| Net income − GAAP                                                 |   | $                  | 13,142  |   |   | $ | 1,406 |   |
| Adjustments:                                                            |   |               |    |   |   |   |   |   |
| Provision for loan and lease losses (2)                            |   |               | 2,606   |   |   |   | 15,371 |   |
| Gains on the extinguishment of debt                                     |   |               | − |   |   |   | (6,628 | ) |
| Adjusted net income, excluding non-cash items (1)                  |   | $                  | 15,748  |   |   | $ | 10,149 |   |
| Adjusted net income per share – diluted, excluding non-cash items |   | $                  | 0.26    |   |   | $ | 0.27 |   |

----

----

(Back to Index)

| (1) | During 2010, we evaluated our performance based on several performance measures, including adjusted net income, in addition to net income and estimated REIT taxable income.  Adjusted net income represents net income available to common shares, computed in accordance with GAAP, before provision for loan and lease losses, gain on the extinguishment of debt and non-operating capital items.  These items are recorded in accordance with GAAP and are typically non-cash or non-operating items that do not impact our operating performance or ability to pay a dividend.    |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Non-cash charges for loan and lease losses. |
|-----|---------------------------------------------|

|                                                                                 |   | Three Months Ended |    |
|--------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                 |   | March 31,          |    |
|                                                                                 |   | 2011               |    |   | 2010 |   |
| Net income  − GAAP                                                   |   | $                  | 13,142  |   |   | $ | 1,406 |   |
| Taxable REIT subsidiary’s (income) loss                                        |   |               | (2,004  | ) |   |   | (125 | ) |
| Adjusted net income                                                                  |   |               | 11,138  |   |   |   | 1,281 |   |
| Adjustments:                                                                         |   |               |    |   |   |   |   |   |
| Share-based compensation to related parties                                          |   |               | (93     | ) |   |   | (316 | ) |
| Provision for loan and lease losses unrealized                                       |   |               | 3,122   |   |   |   | 15,500 |   |
| Equity in income of real estate joint venture                                        |   |               | (4,473  | ) |   |   | − |   |
| Net book to tax adjustment for the inclusion of our taxableforeign REIT subsidiaries |   |               | (1,098  | ) |   |   | (6,378 | ) |
| Subpart F income limitation (2)                                                 |   |               | − |   |   |   | 322 |   |
| Other net book to tax adjustments                                                    |   |               | 11      |   |   |   | (1,083 | ) |
| Estimated REIT taxable income                                                        |   | $                  | 8,607   |   |   | $ | 9,326 |   |
|                                                                                 |   |               |    |   |   |   |   |   |
| Amounts per share – diluted                                                    |   | $                  | 0.14    |   |   | $ | 0.24 |   |

----

----

(Back to Index)

| (1) | We believe that a presentation of estimated REIT taxable income provides useful information to investors regarding our financial condition and results of operations as this measurement is used to determine the amount of dividends that we are required to declare to our stockholders in order to maintain our status as a REIT for federal income tax purposes.  Since we, as a REIT, expects to make distributions based on estimated REIT taxable income, we expect that our distributions may at times be more or less than our reported GAAP net income.  Total estimated REIT taxable income is the aggregate amount of estimated REIT taxable income generated by us and by our domestic and foreign taxable REIT subsidiaries.  Estimated REIT taxable income excludes the undistributed taxable income (if any) of our domestic taxable REIT subsidiary, which is not included in REIT taxable income until distributed to us.  There is no requirement that our domestic taxable REIT subsidiary distribute its income to us.  Estimated REIT taxable income, however, includes the taxable income of our foreign taxable REIT subsidiaries because we generally will be required to recognize and report their taxable income on a current basis.  Because not all companies use identical calculations, this presentation of estimated REIT taxable income may not be comparable to other similarly-titled measures of other companies. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | 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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(Back to Index)

|             |   |   |     |   |               |   |   | Annualized   |   |   |                  |   |   |      |   |
|------------------|--------|--------|----------|--------|--------------------|--------|--------|--------------|--------|--------|-----------------------|--------|--------|-----------|--------|
|             |   |   |     |   |               |   |   | Interest     |   |   |                  |   |   |      |   |
|             |   |   |     |   |               |   |   | Coverage     |   |   | Overcollateralization |   |
|             |   |   |     |   | Cash Distributions |   |   | Cushion      |   |   | Cushion               |   |
|             |   |   |     |   |               |   |   | Three Months |   |   |                  |   |   |      |   |   |   |   |
|             |   |   |     |   | Year Ended         |   |   | Ended        |   |   | As of                 |   |   | As of     |   |   | As of Initial |   |
|             |   |   |     |   | December 31,       |   |   | March 31,    |   |   | March 31,             |   |   | March 31, |   |   | Measurement |   |
| Name             |   |   | CDO Type |   | 2010 (1)           |   |   | 2011 (1)     |   |   | 2011 (2) (3)          |   |   | 2011 (4)  |   |   | Date |   |
|             |   |   |     |   | (actual)           |   |   | (actual)     |   |   |                  |   |   |      |   |   |   |   |
| Apidos CDO I     |   |   | CLO      |   | $                  | 7,695  |   |         | $      | 2,057  |                  |   | $      | 9,639     |   |   | $ | 14,181 |   |   | $ | 17,136 |   |
| Apidos CDO III   |   |   | CLO      |   | $                  | 6,552  |   |         | $      | 1,961  |                  |   | $      | 3,885     |   |   | $ | 8,951 |   |   | $ | 11,269 |   |
| Apidos Cinco CDO |   |   | CLO      |   | $                  | 7,792  |   |         | $      | 2,304  |                  |   | $      | 5,189     |   |   | $ | 21,906 |   |   | $ | 17,774 |   |
| RREF 2006-1      |   |   | CRE CDO  |   | $                  | 8,929  |   |         | $      | 1,773  |                  |   | $      | 6,407     |   |   | $ | 10,512 |   |   | $ | 24,941 |   |
| RREF 2007-1      |   |   | CRE CDO  |   | $                  | 15,068 |   |         | $      | 3,317  |                  |   | $      | 8,355     |   |   | $ | 10,857 |   |   | $ | 26,032 |   |

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| (1) | Distributions on retained equity interests in CDOs (comprised of note investment and preference share ownership). |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (2) | Interest coverage includes annualized amounts based on the most recent trustee statements. |
|-----|--------------------------------------------------------------------------------------------|

| (3) | Interest coverage cushion represents the amount by which annualized interest income expected exceeds the annualized amount payable on all classes of CDO notes senior to our preference shares. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Overcollateralization cushion represents the amount by which the collateral held by the CDO issuer exceeds the maximum amount required. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | unrestricted cash and cash equivalents of $38.3 million and restricted cash of $2.0 million in margin call accounts; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------|

|   | ● | capital available for reinvestment in its five CDO entities of $167.5 million, of which $0.7 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 than5 years |   |
| CDOs (1)                                    |   | $                                             | 1,398,653 |   |   | $ | − |   |   | $ | − |   |   | $ | − |   |   | $ | 1,398,653 |   |
| Repurchase Agreements (2)              |   |                                          | 15,115    |   |   |   | 15,115 |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Unsecured junior subordinateddebentures (3) |   |                                          | 51,548    |   |   |   | − |   |   |   | − |   |   |   | − |   |   |   | 51,548 |   |
| Base management fees (4)               |   |                                          | 7,016     |   |   |   | 7,016 |   |   |   | − |   |   |   | − |   |   |   | − |   |
| Total                                       |   | $                                             | 1,472,332 |   |   | $ | 22,131 |   |   | $ | − |   |   | $ | − |   |   | $ | 1,450,201 |   |

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| (1) | Contractual commitments do not include $21.4 million, $29.6 million, $24.2 million, $30.9 million and $55.4 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.  The non-call date represents the earliest period under which the CDO assets can be sold, resulting in repayment of the CDO notes. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Contractual commitments includes $5,000 of interest expense payable through the maturity date of April 18, 2011 on our repurchase agreements. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Contractual commitments do not include $56.1 million and $57.2 million of interest expense payable through the maturity dates of June 2036 and October 2036, respectively, on our trust preferred securities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Calculated only for the next 12 months based on our current equity, as defined in our management agreement.  Our management agreement also provides for an incentive fee arrangement that is based on operating performance.  Because the incentive fee is not a fixed and determinable amount, it is not included in this table. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|---------|------------------------------------------------------------|

|                               |   | March 31, 2011                      |                                                                     |
|------------------------------------|--------|-------------------------------------|--------------------------------------------------------------------------|
|                               |   | Interest rates fall 100basis points |                                                                     |   | Unchanged |   |   | Interest rates rise 100basis points |   |
| CMBS – private placement (1) |   |                                |                                                                     |   |   |   |   |   |   |
| Fair value                         |   | $                                   | 60,783                                                                   |   |   | $ | 58,090 |   |   | $ | 55,524 |   |
| Change in fair value               |   | $                                   | 2,693                                                                    |   |   | $ | − |   |   | $ | (21,566 | ) |
| Change as a percent of fair value  |   |                                |    4.64%          |   |   |   | −%           |   |   |   | 4.42%            |   |
|                               |   |                                |                                                                     |   |   |   |   |   |   |   |   |   |
| Hedging instruments                |   |                                |                                                                     |   |   |   |   |   |   |   |   |   |
| Fair value                         |   | $                                   | (26,399                                                                  | ) |   | $ | (12,009 | ) |   | $ | (6,162 | ) |
| Change in fair value               |   | $                                   | (14,390                                                                  | ) |   | $ | − |   |   | $ | 7,130 |   |
| Change as a percent of fair value  |   |                                |    119.83%             |   |   |   | −%          |   |   |   | 53.64%         |   |

|                                |   | December 31, 2010                   |                                             |
|-------------------------------------|--------|-------------------------------------|--------------------------------------------------|
|                                |   | Interest rates fall 100basis points |                                             |   | Unchanged |   |   | Interest rates rise 100basis points |   |
| CMBS – private placement (1): |   |                                |                                             |   |   |   |   |   |   |
| Fair value                          |   | $                                   | 56,491                                           |   |   | $ | 54,125 |   |   | $ | 51,939 |   |
| Change in fair value                |   | $                                   | 2,336                                            |   |   | $ | − |   |   | $ | (2,216 | ) |
| Change as a percent of fair value   |   |                                | 4.31%              |   |   |   | −%         |   |   |   | 4.09%         |   |
|                                |   |                                |                                             |   |   |   |   |   |   |   |   |   |
| Hedging instruments:                |   |                                |                                             |   |   |   |   |   |   |   |   |   |
| Fair value                          |   | $                                   | (20,622                                          | ) |   | $ | (13,292 | ) |   | $ | (6,162 | ) |
| Change in fair value                |   | $                                   | (7,330                                           | ) |   | $ | − |   |   | $ | 7,130 |   |
| Change as a percent of fair value   |   |                                | 55.15%        |   |   |   | −%        |   |   |   | 53.64%        |   |

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

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|   | ● | monitoring and adjusting, if necessary, the reset index and interest rate related to our mortgage-backed securities and our borrowings; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | attempting to structure our borrowing agreements for our CMBS to have a range of different maturities, terms, amortizations and interest rate adjustment periods; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ● | using derivatives, financial futures, swaps, options, caps, floors and forward sales, to adjust the interest rate sensitivity of our fixed-rate commercial real estate mortgages and CMBS and our borrowing. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 4. | CONTROLS AND PROCEDURES |
|---------|-------------------------|

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| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
|---------|-------------------------------------------------------------|

| (a)   | In accordance with the provisions of the management agreement, on January 31, 2011, we issued 4,482 shares of common stock to the Manager.  These shares represented 25% of the Manager’s quarterly incentive compensation fee that accrued for the three months ended December 31, 2010.  The issuance of these shares was exempt from the registration requirements of the Securities Act pursuant to Section 4(2) thereof. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 5. | EXHIBITS |
|---------|----------|

| 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. (6)                                                |
| 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. (6) |
| 4.4         |   | Amended Junior Subordinated Note due 2036 in the principal amount of $25,774,000, dated October 26, 2009. (6)                                                                                                                                           |
| 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. (6)                                                |
| 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. (6) |
| 4.7         |   | Amended Junior Subordinated Note due 2036 in the principal amount of $25,774,000, dated October 26, 2009. (6)                                                                                                                                           |
| 10.1(a)     |   | Amended and Restated Management Agreement between Resource Capital Corp., Resource Capital Manager, Inc. and Resource America, Inc. dated as of June 30, 2008. (4)                                                                                      |
| 10.1(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. (5)                                                                   |
| 10.1(c)     |   | Second Amendment to Amended and Restated Management Agreement between Resource Capital Corp., Resource Capital Manager, Inc. and Resource America, Inc. dated as of August 17, 2010. (8)                                                                |
| 10.1(d)     |   | Third Amendment to Amended and Restated Management Agreement between Resource Capital Corp., Resource Capital Manager, Inc. and Resource America, Inc., dated February 24, 2011. (11)                                                                   |
| 10.2        |   | Transfer and Contribution Agreement by and among LEAF Financial Corporation, Resource TRS, Inc., Resource Capital Corp. and LEAF Commercial Capital, Inc. dated January 4, 2011. (9)                                                                    |
| 10.3(a)     |   | Master Repurchase and Securities Contract by and among RCC Commercial, Inc., RCC Real Estate Inc. and Wells Fargo Bank, National Association, dated February 1, 2011. (10)                                                                              |
| 10.3(b)     |   | Guarantee Agreement made by Resource Capital Corp. in favor of Wells Fargo Bank, National Association, dated February 1, 2011. (10)                                                                                                                     |
| 10.4        |   | 2005 Stock Incentive Plan. (1)                                                                                                                                                                                                                          |
| 10.5        |   | 2007 Omnibus Equity Compensation Plan. (7)                                                                                                                                                                                                              |

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| 10.6(a) |   | Purchase Agreement by and between Churchill Financial Holdings, LLC and Resource TRS II, Inc., dated February 11, 2011. |
|---------|--------|-------------------------------------------------------------------------------------------------------------------------|
| 10.6(b) |   | Guaranty by Resource Capital Corp., as guarantor, dated February 11, 2011.                                              |
| 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.                                                                       |

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| (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 July 3, 2008. |
|-----------------|---------------------------------------------------------------------------------------------------------|

| (5)   | Filed previously as an exhibit to the Company’s Current Report on Form 8-K filed on October 20, 2009. |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| (6)   | Filed previously as an exhibit to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2009. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Filed previously as an exhibit to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008. |
|-----------------|------------------------------------------------------------------------------------------------------------------------|

| (8)   | Filed previously as an exhibit to the Company’s Current Report on Form 8-K filed on August 19, 2010. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (9)   | Filed previously as an exhibit to the Company’s Current Report on Form 8-K filed on January 6, 2011. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (10)   | Filed previously as an exhibit to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. |
|------------------|------------------------------------------------------------------------------------------------------------------------|

| (11)   | Filed previously as an exhibit to the Company’s Current Report on Form 8-K filed on March 2, 2011. |
|------------------|----------------------------------------------------------------------------------------------------------|

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SIGNATURES

|               | RESOURCE CAPITAL CORP.                                                                                                                                                                                                                           |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               | (Registrant)                                                                                                                                                                                                                                     |
|               |                                                                                                                                                                                                                                             |
| Date: May 10, 2011 | By:           /s/ Jonathan Z. Cohen                          |
|               | Jonathan Z. Cohen                                                                                                                                                                                                                                |
|               | Chief Executive Officer and President                                                                                                                                                                                                            |
|               |                                                                                                                                                                                                                                             |

| Date: May 10, 2011 | By:           /s/ David J. Bryant                                |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|               | David J. Bryant                                                                                                                                                                                                                                                                    |
|               | Chief Financial Officer and Chief Accounting Officer                                                                                                                                                                                                                               |
|               |                                                                                                                                                                                                                                                                               |

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