Portfolio Management 101
Growth at reasonable price, REITs, portfolio strategy, dividend investing

Resource Capital: 14% Dividend Yield Is Nice, But I'm Putting This One On Ice

Resource Capital Corp. (NYSE:RSO) is a REIT that focuses on originating, underwriting, and investing in transitional commercial real estate loans, or bridge loans. While it is not categorized as an mREIT, it does have very similar characteristics. It provides financing primarily to borrowers in multi-family, office, retail, and hotel properties. It is externally managed by Resource Capital Manager Inc., a subsidiary of Resource America Inc., which manages over $17 billion in assets within comparable sectors as of 12/31/2013.

RSO generates income from the spread between revenues received from assets and the cost to finance the purchase of those assets. Revenues are generated from the interest and fees on whole loans, A notes, B notes, mezzanine debt, commercial mortgage-backed...

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