REMINDER: Resource Capital Corp. Announces Fourth Quarter and Year Ended 2007 Operating Results


NEW YORK, NY--(Marketwire - March 14, 2008) - Resource Capital Corp. (NYSE: RSO) ("RCC" or the "Company"), a real estate investment trust whose investment strategy focuses on commercial real estate loan assets and, to a lesser extent, commercial finance assets, reported results for the fourth quarter and year ended December 31, 2007.

Financial Summary

--  RCC reported REIT taxable income, a non-GAAP measure, of $11.4
    million, or $0.46 per share-diluted for the quarter ended December 31,
    2007.
--  RCC reported adjusted net income, a non-GAAP measure excluding the
    effect of non-cash charges, of $10.7 million, or $0.43 per share-diluted
    for the quarter ended December 31, 2007.
--  Dividend distribution of $0.41 per share for the quarter ended
    December 31, 2007, up 8% from the fourth quarter of 2006 and unchanged from
    the third quarter.  RCC declared and paid dividends of $1.62 per common
    share, for total dividends paid of $40.7 million (96% of estimated REIT
    taxable income) for the year ended December 31, 2007.
--  RCC announced a dividend distribution of $0.41 per common share for
    the quarter ended March 31, 2008, unchanged from the quarter ended December
    31, 2007 and an increase of $0.02 per common share (5%) from the quarter
    ended March 31, 2007.
--  Economic book value, a non-GAAP measure, was $12.25 per common share
    as of December 31, 2007.
--  GAAP book value was $10.82 per common share as of December 31, 2007.
--  REIT taxable income, a non-GAAP measure, of $42.4 million or $1.71 per
    share-diluted for the year ended December 31, 2007 as compared to $27.9
    million or $1.57 per share-diluted for the year ended December 31, 2006, an
    increase of $14.5 million (52%) and $0.14 per share-diluted (9%),
    respectively.
--  RCC reported adjusted net income, a non-GAAP measure, excluding the
    effect of asset impairments and other non-cash charges, of $42.7 million,
    or $1.72 per share-diluted for the year ended December 31, 2007.
--  RCC reported GAAP net income of $0.14 per share-diluted for the
    quarter ended December 31, 2007.
--  Paydowns on RCC's bank loan portfolio were $44.0 million for the
    quarter ended December 31, 2007, and $310.1 million for the year ended
    December 31, 2007.  Payoffs on RCC's commercial real estate loan portfolio
    were $74.9 million for the quarter ended December 31, 2007, and $249.1
    million for the year ended December 31, 2007.
    

Jonathan Cohen, CEO and President of RCC, commented, "It is an understatement to say that the second half of 2007 presented unparalleled disruptions in the financial markets in the United States and abroad, and this has affected every class of financial asset, principally and most dramatically in the sub-prime mortgage market of the United States. Despite these challenges, we performed well in 2007, generating $1.71 of estimated REIT taxable income, a non-GAAP measure, and distributing $1.62 to RCC's shareholders, consistent with RCC's guidance of $1.60 to $1.65. RCC completed its conversion from investing primarily in purchased interests in subordinate commercial real estate loans to being an originator of senior secured whole loans and bank loans. During the fourth quarter, we deconsolidated a VIE and its related ABS-RMBS exposure and as of February 2008, RCC's investment in this VIE has been reduced to $0. RCC is positioned to benefit from its match-funded vehicles that have a relatively low cost of funds. RCC wants to emphasize that, despite the market disruptions, its assets continue to perform well as it endeavors to maintain franchise value and its dividend payout in 2008."

The following schedules of reconciliations as of December 31, 2007 are included in this release:

--  Schedule I - GAAP Net Income to Adjusted Net Income;
--  Schedule II - GAAP Net Income to Estimated REIT Taxable Income; and
--  Schedule III - GAAP Stockholders' Equity to Economic Book Value.
    

For the quarter ended December 31, 2007, RCC reported adjusted net income, a non-GAAP measure excluding the effect of non-cash charges, of $10.7 million, or $0.43 per share-diluted, compared to $6.8 million, or $0.36 per share-diluted for the fourth quarter of 2006. For the year ended December 31, 2007, RCC reported adjusted net income, excluding the effect of asset impairments and other non-cash charges, of $42.7 million, or $1.72 per share-diluted as compared to adjusted net income, excluding the effect of the net realized loss from the sale of agency RMBS portfolio, of $24.4 million, or $1.36 per share-diluted for the same period in 2006. For the fourth quarter ended December 31, 2007, RCC reported GAAP net income of $3.5 million, or $0.14 per share-diluted, as compared to GAAP net income of $6.8 million, or $0.36 per share-diluted for the fourth quarter of 2006. RCC reported GAAP net income for the year ended December 31, 2007 of $8.9 million, or $0.36 per share-diluted, as compared to GAAP net income for the year ended December 31, 2006 of $15.6 million, or $0.87 per share-diluted.

Book Value

As of December 31, 2007, RCC's GAAP book value per common was $10.82. Total stockholders' equity was $271.6 million as of December 31, 2007 as compared to $317.6 million as of December 31, 2006. Total common shares outstanding were 25,103,532 as of December 31, 2007 as compared to 23,821,434 as of December 31, 2006.

As of December 31, 2007, RCC's economic book value per common share outstanding, a non-GAAP measure, was $12.25. Economic book value is computed by adding back to GAAP book value any unrealized losses on the Company's investments in CMBS for which it expects to recover full par value at maturity, and on derivatives (cash flow hedges) that are associated with fixed-rate loans which it intends to hold until maturity, in excess of its value at risk, and that have not been adjusted through stockholders' equity for market fluctuations (see Footnote 1 of Schedule III). Economic book value per share is computed by dividing the economic book value by the number of shares outstanding at the end of the period.

Additional financial results for the fourth quarter and year ended December 31, 2007 and recent developments include:

General

--  RCC's net interest income increased by $4.0 million, or 40%, to $14.1
    million for the fourth quarter ended December 31, 2007, as compared to
    $10.1 million for the same period in 2006.  RCC's net interest income
    increased by $20.2 million, or 6%, to $55.4 million for the year ended
    December 31, 2007, as compared to $35.2 million for the same period in
    2006.
--  RCC's total assets grew by $269.3 million for the year ended December
    31, 2007, primarily in commercial real estate and commercial finance
    assets, as described below.
    

Commercial Real Estate

--  RCC produced new commercial real estate ("CRE") loans, on a gross
    basis, of $72.8 million during the fourth quarter ended December 31, 2007.
    The aggregate net portfolio of CRE loans grew by $246.8 million to $902.9
    million at December 31, 2007, from $656.1 million at December 31, 2006, not
    including future funding obligations of $11.3 million.
    

The following table summarizes RCC's CRE loan origination activities and future funding obligations, at par, for the three, six and 12 months ended December 31, 2007 (in millions, except percentages):

                           Three      Six        12
                           Months    Months    Months   Floating  Weighted
                           Ended     Ended     Ended    Weighted   Average
                          December  December  December   Average    Fixed
                          31, 2007  31, 2007  31, 2007   Spread     Rate
                          --------  --------  --------  --------  --------
Whole loans               $   61.5  $  124.3  $  421.9      2.84%     7.81%
Whole loans, future
 funding obligations          11.3      20.8      58.8       N/A       N/A
A notes                          -         -         -       N/A       N/A
B notes                          -         -         -      2.78%     7.58%
Mezzanine loans                  -         -      95.3      2.64%     8.04%
CMBS                             -      14.0      90.5      N/A*      5.94%
                          --------  --------  --------
New loans production          72.8     159.1     666.5
Payoffs                      (74.9)    (95.1)   (249.1)
Principal paydowns            (1.4)    (11.5)    (14.4)
Sales of CRE loans               -         -     (41.2)
Whole loans, future
 funding obligations         (11.3)    (20.8)    (58.8)
Sales of CMBS                    -         -     (29.9)
                          --------  --------  --------
Net - new loans              (14.8)     31.7     273.1
Discounts                     (9.5)    (17.4)    (23.1)
                          --------  --------  --------
New loans, net of
 discounts, net           $  (24.3) $   14.3  $  250.0
                          ========  ========  ========

-----
* Weighed average floating rate coupon of 5.94% at December 31, 2007.

Commercial Finance

--  RCC's bank loan portfolio ended the year with total investments of
    $931.1 million, at amortized cost, with a weighted-average spread of one-
    month and three-month LIBOR plus 2.24%.  All of RCC's bank loan portfolio
    is match-funded through three collateralized loan obligation ("CLO")
    issuances with a weighted-average cost of three-month LIBOR plus 0.47%.
--  RCC's commercial finance subsidiary ended the year with $95.0 million,
    at cost, in direct financing leases and notes at a weighted-average rate of
    9.43%.  RCC's leasing portfolio is match-funded through a secured term
    facility, which had a balance of $91.7 million as of December 31, 2007 and
    a weighted-average interest rate of 6.82%.
    

Investment Portfolio

The table below summarizes the amortized cost and estimated fair value of the RCC's investment portfolio as of December 31, 2007, classified by interest rate type. The following table includes both (i) the amortized cost of RCC's investment portfolio and the related dollar price, which is computed by dividing amortized cost by par amount, and (ii) the estimated fair value of RCC's investment portfolio and the related dollar price, which is computed by dividing the estimated fair value by par amount (in thousands, except percentages):


                                                         Estimated
                                                           fair
                                                           value    Change
                                                           less       in
                 Amortized   Dollar  Estimated   Dollar  amortized  dollar
                    cost     price   fair value  price     cost     price
                 ----------- ------  ----------- ------  ---------  ------
December 31, 2007
  Floating rate
CMBS             $    54,132  93.40% $    41,524  71.65% $ (12,608) -21.75%
Other ABS              5,665  94.42%         900  15.00%    (4,765) -79.42%
B notes (1)           33,570 100.10%      33,486  99.85%       (84)  -0.25%
Mezzanine loans (1)  141,894 100.09%     141,539  99.83%      (355)  -0.26%
Whole loans (1)      430,776  99.35%     429,699  99.10%    (1,077)  -0.25%
Bank loans (2)       931,101 100.00%     874,736  93.95%   (56,365)  -6.05%
                 -----------         -----------         ---------
  Total floating
   rate          $ 1,597,138  99.58% $ 1,521,884  94.88% $ (75,254)  -4.69%
                 ===========         ===========         =========
   Fixed rate
CMBS             $    28,241  98.95% $    23,040  80.73% $  (5,201) -18.22%
B notes (1)           56,007 100.17%      55,867  99.92%      (140)  -0.25%
Mezzanine loans (1)   81,268  94.69%      80,016  93.23%    (1,252)  -1.46%
Whole loans (1)       97,942  99.24%      97,697  98.99%      (245)  -0.25%
Equipment leases
 and notes (3)        95,323 100.00%      95,030  99.69%      (293)  -0.31%
                 -----------         -----------         ---------
  Total fixed
   rate          $   358,781  98.49% $   351,650  96.53% $  (7,131)  -1.96%
                 ===========         ===========         =========
    Grand total  $ 1,955,919  99.37% $ 1,873,534  95.19% $ (82,385)  -4.18%
                 ===========         ===========         =========

-----
(1) Estimated fair value of B notes, mezzanine loans and whole loans
    includes a provision for loan losses of $3.2 million at December 31,
    2007.
(2) Estimated fair value includes a $2.7 million provision for loan losses
    at December 31, 2007.
(3) Estimated fair value includes a $0.3 million provision for lease losses
    at December 31, 2007.

Liquidity

At March 5, 2008, RCC's liquidity consists of three primary sources:

--  cash and cash equivalents of $11.7 million, $6.9 million of restricted
    cash in margin call accounts and $3.4 million of restricted cash related to
    its leasing portfolio;
--  capital available for reinvestment in its five collateralized debt
    obligation ("CDO") entities of $75.1 million, which is made up of $45.0
    million of restricted cash and $30.1 million of availability to finance
    future funding commitments on commercial real estate loans;
--  financing available under existing borrowing facilities of $14.8
    million, comprised of $5.6 million of available cash from RCC's three year
    non-recourse secured financing facility and $9.2 million of unused capacity
    under its unsecured revolving credit facility.  RCC also has $227.9 million
    of unused capacity under its repurchase facilities which, however, require
    approval of individual repurchase transactions by the repurchase
    counterparties.
    

Capital Allocation

As of December 31, 2007, RCC had allocated its equity capital among its targeted asset classes as follows: 74.9% in commercial real estate loans, 24.1% in commercial bank loans and 1.0% in direct financing leases and notes.

About Resource Capital Corp.

RCC is a diversified real estate finance company that qualifies as a real estate investment trust, or REIT, for federal income tax purposes. RCC's investment strategy focuses on commercial real estate-related assets, and, to a lesser extent, commercial finance assets. RCC invests in the following asset classes: commercial real estate-related assets such as whole loans, A-notes, B-notes, mezzanine loans and mortgage-related securities and commercial finance assets such as other asset-backed securities, bank loans, equipment leases and notes, trust preferred securities, debt tranches of collateralized debt obligations and private equity investments principally issued by financial institutions.

RCC is externally managed by Resource Capital Manager, Inc., an indirect wholly-owned subsidiary of Resource America, Inc. (NASDAQ: REXI), a specialized asset management company that uses industry specific expertise to generate and administer investment opportunities for its own account and for outside investors in the financial fund management, real estate, and commercial finance sectors.

For more information, please visit the RCC's website at www.resourcecapitalcorp.com or contact investor relations at pkamdar@resourceamerica.com

Safe Harbor Statement

Statements made in this release include forward-looking statements, which involve substantial risks and uncertainties. RCC's actual results, performance or achievements could differ materially from those expressed or implied in this release. The risks and uncertainties associated with forward-looking statements contained in this release include those related to:

--  fluctuations in interest rates and related hedging activities;
--  capital markets conditions and the availability of financing;
--  defaults or bankruptcies by borrowers on RCC's loans or on loans
    underlying its investments;
--  adverse market trends which may affect the value of real estate and
    other assets underlying RCC's investments;
--  increases in financing or administrative costs; and
--  general business and economic conditions that would impair the credit
    quality of borrowers and RCC's ability to originate loans.
    

For further information concerning these and other risks pertaining to the forward-looking statements contained in this release, and to the general risks to which RCC is subject, see Item 1A, "Risk Factors" included in its annual report on Form 10-K and in other of its public filings with the Securities and Exchange Commission.

RCC cautions you not to place undue reliance on any forward-looking statements contained in this release, which speak only as of the date of this release. All subsequent written and oral forward-looking statements attributable to RCC or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this release. Except to the extent required by applicable law or regulation, RCC undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this filing or to reflect the occurrence of unanticipated events.

The remainder of this release contains RCC's consolidated balance sheets, consolidated statements of income and reconciliations of its estimated GAAP net income to adjusted net income, GAAP net income to estimated REIT taxable income and GAAP stockholders' equity to economic book value, supplemental information for commercial real estate loan portfolio statistics and, supplemental information for bank loan portfolio statistics.

               RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                   CONSOLIDATED BALANCE SHEETS
          (in thousands, except share and per share data)


                                                      December 31,
                                              ----------------------------
                                                  2007           2006
                                              -------------  -------------
ASSETS
  Cash and cash equivalents                   $       6,029  $       5,354
  Restricted cash                                   119,482         32,731
  Investment securities available-for-sale,
   pledged as collateral, at fair value              65,464        420,997
  Loans, pledged as collateral and net of
   allowances of $5.9 million and $0              1,766,639      1,240,288
  Direct financing leases and notes, pledged
   as collateral and net of allowance of
   $0.3 million and $0 and net of unearned
   income                                            95,030         88,970
  Investments in unconsolidated trusts                1,805          1,548
  Interest receivable                                11,965          8,839
  Principal paydown receivables                         836            503
  Other assets                                        4,898          3,599
                                              -------------  -------------
    Total assets                              $   2,072,148  $   1,802,829
                                              =============  =============

LIABILITIES
  Borrowings                                  $   1,760,969  $   1,463,853
  Distribution payable                               10,366          7,663
  Accrued interest expense                            7,209          6,523
  Derivatives, at fair value                         18,040          2,904
  Accounts payable and other liabilities              3,958          4,335
                                              -------------  -------------
    Total liabilities                             1,800,542      1,485,278
                                              -------------  -------------

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;
   25,103,532 and 23,821,434 shares issued
   and outstanding (including 581,493
   and 234,224 unvested restricted shares)               25             24
  Additional paid-in capital                        355,205        341,400
  Deferred equity compensation                            -         (1,072)
  Accumulated other comprehensive loss              (38,323)        (9,279)
  Distributions in excess of earnings               (45,301)       (13,522)
                                              -------------  -------------
    Total stockholders' equity                      271,606        317,551
                                              -------------  -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $   2,072,148  $   1,802,829
                                              =============  =============





               RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF INCOME
          (in thousands, except share and per share data)
                            (Unaudited)


                                 Three Months                Years
                                     Ended                   Ended
                                  December 31,            December 31,
                            ----------------------  ----------------------
                               2007        2006        2007        2006
                            ----------  ----------- ----------  ----------
REVENUES
  Loans                     $   37,292  $    23,689 $  138,078  $   70,588
  Securities                     4,738        7,375     28,810      56,048
  Leases                         1,886        1,867      7,553       5,259
  Interest income - other          625          428      2,554       5,180
                            ----------  ----------- ----------  ----------
    Interest income             44,541       33,359    176,995     137,075
  Interest expense              30,460       23,311    121,564     101,851
                            ----------  ----------- ----------  ----------
      Net interest income       14,081       10,048     55,431      35,224
                            ----------  ----------- ----------  ----------

OPERATING EXPENSES
  Management fees - related
   party                         1,197        1,691      6,554       4,838
  Equity compensation -
   related party                   848          812      1,565       2,432
  Professional services            906          616      2,911       1,881
  Insurance                        115          127        466         498
  General and
   administrative                  440          206      1,581       1,428
  Income tax expense                76           67        338          67
                            ----------  ----------- ----------  ----------
    Total operating
     expenses                    3,582        3,519     13,415      11,144
                            ----------  ----------- ----------  ----------

NET OPERATING INCOME            10,499        6,529     42,016      24,080
                            ----------  ----------- ----------  ----------

OTHER (EXPENSES) REVENUES
  Net realized (losses)
   gains on sales of
   investments                 (15,434)         225    (15,098)     (8,627)
  Gain on deconsolidation
   of VIE                       14,259            -     14,259           -
  Provision for loan and
   lease losses                 (5,885)           -     (6,211)          -
  Asset impairments                  -            -    (26,277)          -
  Other income                      91           38        201         153
                            ----------  ----------- ----------  ----------
    Total expenses              (6,969)         263    (33,126)     (8,474)
                            ----------  ----------- ----------  ----------

NET INCOME                  $    3,530  $     6,792 $    8,890  $   15,606
                            ==========  =========== ==========  ==========

NET INCOME PER SHARE -
 BASIC                      $     0.14  $      0.37 $     0.36  $     0.89
                            ==========  =========== ==========  ==========

NET INCOME PER SHARE -
 DILUTED                    $     0.14  $      0.36 $     0.36  $     0.87
                            ==========  =========== ==========  ==========

WEIGHTED AVERAGE NUMBER OF
  SHARES OUTSTANDING -
  BASIC                     24,555,059   18,369,819 24,610,468  17,538,273
                            ==========  =========== ==========  ==========

WEIGHTED AVERAGE NUMBER OF
  SHARES OUTSTANDING -
  DILUTED                   24,772,315   18,736,063 24,860,184  17,881,355
                            ==========  =========== ==========  ==========

DIVIDENDS DECLARED PER
 SHARE                      $     1.62  $      0.43 $     1.62  $     1.49
                            ==========  =========== ==========  ==========


SCHEDULE I

                RESOURCE CAPITAL CORP. AND SUBSIDIARIES
          RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME
                 (in thousands, except per share data)
                              (Unaudited)

                                     Three Months Ended    Years Ended
                                       December 31,        December 31,
                                    ------------------- -------------------
                                      2007      2006      2007      2006
                                    --------- --------- --------- ---------
Net income - GAAP                   $   3,530 $   6,792 $   8,890 $  15,606
Add:
Provision for loan and lease
 losses (1)                             5,885         -     6,211         -
  Net realized loss related to
   deconsolidation of VIE (2)           1,317         -     1,317         -
  Asset impairments related to
   VIE's                                    -         -    26,277         -
  Net realized loss from the sales
   of agency RMBS portfolio                 -         -         -     8,768
                                    --------- --------- --------- ---------
Adjusted net income, excluding
 non-cash charges (3)               $  10,732 $   6,792 $  42,695 $  24,374
                                    ========= ========= ========= =========
Adjusted net income per share -
 diluted, excluding non-cash
 charges                            $    0.43 $    0.36 $    1.72 $    1.36
                                    ========= ========= ========= =========


(1) Non-cash charges for loan and lease losses

(2) Net realized loss related to the deconsolidation of a VIE is made up
of a gain of $14.3 million related to the deconsolidation of Ischus CDO II,
offset by a $15.6 million adjustment related to the write-down of RCC's
investment in Ischus CDO II. The adjustment of RCC's investment is
calculated as $27.0 million original investment less $10.7 million in
accumulated distributions less the $0.7 million estimated fair value of
the investment at the time of deconsolidation.

(3) During 2007, RCC began evaluating its performance based on several
performance measures, including adjusted net income in addition to net
income. Adjusted net income represents net income available to common
shares, computed in accordance with GAAP, before provision for loan and
lease losses, net loss on deconsolidation of VIEs, asset impairments and
net loss from sale of agency RMBS portfolio. These items are recorded in
accordance with GAAP and are typically non-cash items that do not impact
RCC's operating performance or ability to pay a dividend.

Management views adjusted net income as a useful and appropriate
supplement to GAAP net income (loss) because it helps us evaluate RCC's
performance without the effects of certain GAAP adjustments that may not
have a direct financial impact on RCC's current operating performance
and dividend paying ability. Management uses adjusted net income to
evaluate the performance of RCC's investment portfolios, ability to
manage its expenses and the dividend paying ability before the impact of
non-cash adjustments recorded in accordance with GAAP. RCC believes this
is a useful performance measure for investors to evaluate these aspects
of RCC's business as well. The most significant adjustments RCC excludes
in determining adjusted earnings are its provision for loan and lease
losses, asset impairments and net loss from the sale of agency RMBS
portfolio. Management excludes all such items from its calculation of
adjusted net income because these items are not economic charges or losses
which would impact RCC's current operating performance. However, by
excluding these significant items, adjusted net income reduces an
investor's understanding of RCC's operating performance by excluding:
(i) management's expectation of possible losses from RCC's investment
portfolio, and (iii) the net loss from exiting the agency RMBS market.

Adjusted net income, as a non-GAAP financial measurement, does not purport
to be an alternative to GAAP net income (loss), or a measure of operating
performance or cash flows from operating activities determined in
accordance with GAAP as a measure of liquidity. Instead, adjusted net
income should be reviewed in connection with net income (loss) and cash
flows from operating, investing and financing activities in RCC's
consolidated financial statements to help analyze management's expectation
of potential future losses from RCC's investment portfolio and other
non-cash matters that impact its financial results. Adjusted net income
and other supplemental performance measures are defined in various ways
throughout the REIT industry. Investors should consider these
differences when comparing RCC's adjusted net income to these other REITs.



SCHEDULE II

                RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                  RECONCILIATION OF GAAP NET INCOME
                  TO ESTIMATED REIT TAXABLE INCOME (1)
                             (Unaudited)

RCC calculates estimated REIT taxable income, which is a non-GAAP
financial measure, according to the requirements of the Internal Revenue
Code. The following table reconciles net income to estimated REIT taxable
income for the periods presented (in thousands, except per share data):

                                    Three Months Ended      Years Ended
                                       December 31,        December 31,
                                    ------------------  ------------------
                                      2007      2006      2007      2006
                                    --------  --------  --------  --------
Net income - GAAP                   $  3,530  $  6,792  $  8,890  $ 15,606
Adjustments:
  Share-based compensation to
   related parties                       225    (1,252)     (500)      368
  Incentive management fee expense
   to related parties paid in
   shares                                  -       263         -       371
  Capital loss carryover
   (utilization)/losses from
    the sale of securities               (49)     (662)      (49)   11,624
  Net unrealized loss on the
   deconsolidation of VIE              1,317         -     1,317         -
  Asset impairments related to
   VIE's                                   -         -    26,277         -
  Provisions for loan and lease
   losses                              3,153         -     3,153         -
  Net book to tax adjustments for
   the Company's taxable
   foreign REIT subsidiaries           3,265      (643)    3,432       121
  Other net book to tax adjustments      (82)     (101)     (110)     (152)
                                    --------  --------  --------  --------
Estimated REIT taxable income       $ 11,359  $  4,397  $ 42,410  $ 27,938
                                    ========  ========  ========  ========

Amounts per share - diluted         $   0.46  $   0.23  $   1.71  $   1.57
                                    ========  ========  ========  ========


(1) RCC believes that a presentation of estimated REIT taxable income
provides useful information to investors regarding its financial condition
and results of operations as this measurement is used to determine the
amount of dividends that RCC is required to declare to its stockholders in
order to maintain its status as a REIT for federal income tax purposes.
Since RCC, as a REIT, expects to make distributions based on taxable
income, RCC expects that its distributions may at times be more or less
than its reported income. Total taxable income is the aggregate amount of
taxable income generated by RCC and by its domestic and foreign taxable
REIT subsidiaries. Estimated REIT taxable income excludes the undistributed
taxable income of RCC's domestic taxable REIT subsidiary, if any such
income exists, which is not included in REIT taxable income until
distributed to RCC. There is no requirement that RCC's domestic taxable
REIT subsidiary distribute its income to RCC. Estimated REIT taxable
income, however, includes the taxable income of RCC's foreign taxable
REIT subsidiaries because RCC 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.



SCHEDULE III

               RESOURCE CAPITAL CORP. AND SUBSIDIARIES
             RECONCILIATION OF GAAP STOCKHOLDERS' EQUITY
                  TO ECONOMIC BOOK VALUE (1) (2)
                (in thousands, except per share data)
                           (Unaudited)

                                                                As of
                                                          December 31, 2007
                                                          -----------------
Stockholders' equity - GAAP                               $         271,606
Add:
  Unrealized losses - CMBS portfolio                                 17,810
  Unrealized losses recognized in excess of value at
   risk - interest rate swaps                                        18,040
                                                          -----------------
Economic book value                                       $         307,456
                                                          =================

Shares outstanding as of December 31, 2007                       25,103,532
                                                          -----------------
Economic book value per share                             $           12.25
                                                          =================

(1) Management views economic book value, a non-GAAP measure, as a useful
and appropriate supplement to GAAP stockholders' equity and book value per
share. The measure serves as an additional measure of RCC's value because
it facilitates evaluation of us without the effects of unrealized losses
on investments for which we expect to recover full par value at maturity
and on interest rate swaps, which we intend to hold to maturity, in excess
of RCC's value at risk. Unrealized losses recognized in RCC's financial
statements, prepared in accordance with GAAP, that are in excess of RCC's
maximum value at risk are added back to stockholders' equity in arriving at
economic book value. Economic book value should be reviewed in connection
with GAAP stockholders' equity as set forth in RCC's consolidated balance
sheets, to help analyze RCC's value to investors. Economic book value is
defined in various ways throughout the REIT industry. Investors should
consider these differences when comparing RCC's economic book value to
that of other REITs.

(2) RCC adds back unrealized losses on interest rate swaps (cash flow
hedges) that are associated with fixed-rate loans that have not been
adjusted through stockholders' equity for market fluctuations.



             RESOURCE CAPITAL CORP. AND SUBSIDIARIES
                  SUPPLEMENTAL INFORMATION
                       (in thousands)
                        (Unaudited)

Loans and Leasing Investment Statistics

The following table presents information on RCC's non-performing
loans and leases and related allowances as of December 31, 2007 and
2006 (based on par value):

                                                       As of December 31,
                                                      --------------------
                                                        2007       2006
                                                      ---------  ---------
Non-performing loans and leases                       $   4,267  $       -

Non-performing loans and leases as a percentage of
 total loans and leases                                     0.2%       0.0%

Allowance for loan and lease losses                   $   6,211  $       -

Allowance for loan and lease losses as a percentage
 of total loans and leases                                  0.3%       0.0%




              RESOURCE CAPITAL CORP. AND SUBSIDIARIES
            SUPPLEMENTAL INFORMATION, A NON-GAAP MEASURE
                         (in thousands)
                           (Unaudited)

The following table presents commercial real estate loan portfolio
statistics as of December 31, 2007 (based on par value):

Security type
  Whole loans                                     $    532,276        62.7%
  Mezzanine loans                                      227,597        26.8%
  B Notes                                               89,448        10.5%
                                                  ------------  ----------
    Total                                         $    849,321       100.0%
                                                  ============  ==========

Collateral type
  Multifamily                                     $    263,503        31.0%
  Office                                               200,870        23.7%
  Hotel                                                205,637        24.2%
  Flex                                                   7,000         0.8%
  Self-storage                                           6,267         0.7%
  Retail                                               132,863        15.6%
  Condo                                                 13,281         1.6%
  Other                                                 19,900         2.4%
                                                  ------------  ----------
    Total                                         $    849,321       100.0%
                                                  ============  ==========

Collateral location
  Southern California                             $    197,447        23.2%
  Northern California                                  131,569        15.5%
  New York                                             103,834        12.2%
  Arizona                                               68,110         8.0%
  Tennessee                                             31,952         3.8%
  Florida                                               38,334         4.5%
  Texas                                                 40,487         4.8%
  Colorado                                              27,972         3.3%
  Washington                                            29,311         3.5%
  Other states < $25M                                  180,305        21.2%
                                                  ------------  ----------
    Total                                         $    849,321       100.0%
                                                  ============  ==========




               RESOURCE CAPITAL CORP. AND SUBSIDIARIES
            SUPPLEMENTAL INFORMATION, A NON-GAAP MEASURE
                          (in thousands)
                           (Unaudited)

The following table presents bank loan portfolio statistics by industry as
of December 31, 2007 (based on par value):


Industry type
  Healthcare, education and childcare                 $  107,438      11.5%
  Diversified/conglomerate service                       102,384      11.0%
  Printing and publishing                                 61,811       6.6%
  Broadcasting and entertainment                          52,302       5.6%
  Chemicals, plastics and rubber                          50,673       5.4%
  Hotels, motels, inns and gaming                         50,531       5.4%
  Retail stores                                           50,346       5.4%
  Diversified/conglomerate manufacturing                  41,378       4.4%
  Oil and gas                                             36,912       4.0%
  Utilities                                               34,736       3.7%
  Telecommunications                                      33,078       3.6%
  Beverage, food and tobacco                              32,504       3.5%
  Other                                                  277,014      29.9%
                                                      ---------- ---------
    Total                                             $  931,107     100.0%
                                                      ========== =========

The following chart describes equipment leases and notes by industry as of
December 31, 2007 (based on par value):


Industry type
Services                                              $   49,795      52.4%
Transportation, communications, electric, gas and
 sanitary services                                        10,595      11.1%
Finance, insurance and real estate                         8,341       8.8%
Retail trade                                               6,001       6.3%
Manufacturing                                              5,969       6.3%
Agriculture, forestry and fishing                          4,463       4.7%
Construction                                               4,293       4.5%
Wholesale trade                                            3,068       3.2%
Other                                                      2,505       2.7%
                                                      ---------- ---------
    Total                                             $   95,030     100.0%
                                                      ========== =========

Contact Information: CONTACT: DAVID J. BRYANT CHIEF FINANCIAL OFFICER RESOURCE CAPITAL CORP. 1845 WALNUT STREET 10TH FLOOR PHILADELPHIA, PA 19103 215/546-5005 215/546-5388 (fax)