Financial Highlights

 --  Net operating income of $10.2 million, or $0.42 per share-diluted for     the quarter ended March 31, 2009 as compared to $10.7 million, or $0.43 per     share-diluted for the quarter ended March 31, 2008, a decrease of $552,000     (5%). --  REIT taxable income, a non-GAAP measure, of $6.1 million or $0.25 per     share-diluted for the first quarter ended March 31, 2009 as compared to     $12.1 million or $0.48 per share-diluted for the first quarter ended March     31, 2008, a decrease of $6.0 million (49%). --  GAAP net loss for the quarter ended March 31, 2009 of $0.50 per share,     including provisions for loan and lease losses of $8.0 million, net     unrealized losses on bank loans held for sale of $9.0 million and other-     than-temporary impairment charges of $5.6 million, or a total of (-$0.92)     per share, as compared to GAAP net income for the quarter ended March 31,     2008 of $0.38 per share-diluted including provisions for loan and lease     losses of $1.1 million or (-$0.05) per share-diluted. --  RCC announced a dividend distribution of $0.30 per common share for     the quarter ended March 31, 2009, $7.5 million in the aggregate, paid on     April 28, 2009 to stockholders of record as of March 31, 2009. --  Economic book value, a non-GAAP measure, was $9.74 per common share as     of March 31, 2009. --  GAAP book value was $6.81 per common share as of March 31, 2009. --  Paydowns and repayments totaled $35.4 million, which included $17.4     million on RCC's CRE loan portfolio and $18.0 million on RCC's bank loan     portfolio for the quarter ended March 31, 2009. Since the quarter end,     RCC's bank loan portfolio paydowns and repayments totaled an additional     $10.4 million and RCC's CRE loan portfolio paydowns and repayments totaled     an additional $5.1 million. --  RCC reduced the balance of its non-recourse repurchase facility     funding CRE loans to $16.0 million as of March 31, 2009, which is secured     by $36.0 million of pledged collateral.      

Jonathan Z. Cohen, CEO and President of RCC, commented, "Given the global and macroeconomic circumstances, our real estate portfolio continues to perform well -- we continue to benefit from overall good asset quality and a low cost of funding due to our long term matched liabilities. We are actively managing our portfolios to maintain the creditworthiness of our assets and to maximize our ability to reinvest our funds into the opportunities we see arising in this marketplace. We continue to reduce the amount of leverage we use, as can be seen in our CRE loan repayments and origination activities. Because we are seeing attractive new investment opportunities ahead, we believe that in the future, as we receive increased loan repayments and proceeds from asset sales, we will be able to generate new loans with substantial returns without relying on new leverage to achieve such returns. We also look forward to continue paying a meaningful cash dividend."

Additional financial results for the first quarter ended March 31, 2009 and recent developments include:

General

 --  RCC's net interest income decreased by $1.1 million, or 8%, to $12.7     million for the first quarter ended March 31, 2009, as compared to $13.8     million for the same period in 2008.      

Commercial Real Estate

 --  RCC funded commitments on existing CRE loans, on a gross basis, of     $3.6 million during the first quarter ended March 31, 2009. The aggregate     net portfolio of CRE loans was reduced by $103.2 million to $805.9 million     at March 31, 2009, from $909.1 million at March 31, 2008, not including     future funding obligations of $3.4 million.      

The following table summarizes RCC's CRE loan repayment and orgination activities (including future funding obligations), at par, for the three and 12 months ended March 31, 2009 (in millions, except percentages)(unaudited):

                                   Three               Floating                                   Months   12 Months  Weighted   Weighted                                   Ended      Ended     Average    Average                                 March 31,  March 31,    Spread     Fixed                                   2009       2009      (1) (2)   Rate (1)                                 ---------  ---------  ---------  --------- Whole loans (3)                 $     3.6  $    25.1       2.91%      7.78% Whole loans, future  funding obligations                    -        3.4        N/A        N/A                                 ---------  --------- New loans production                  3.6       28.5 Payoffs                              (7.0)     (59.5) Principal paydowns                  (10.4)     (25.1) Whole loans, future funding  obligations                            -       (3.4)                                 ---------  --------- Net - new loans (4)             $   (13.8) $   (59.5)                                 =========  ========= (1) Reflects rates on our portfolio balance as of March 31, 2009. (2) Represents the weighted average rate above London Interbank Offered     Rate ("LIBOR") on loans whose interest rate is based on LIBOR. (3) Includes fundings of previous commitments on transitional loans of     $3.6 million for the three months ended March 31, 2009 and $4.3 million     for the 12 months ended March 31, 2009. (4) The basis of new net loans does not include provisions for losses on     CRE loans of $5.0 for the three months ended March 31, 2009 and $19.7     million for the 12 months ended March 31, 2009. 

Commercial Finance

 --  RCC's bank loan portfolio ended the first quarter with total     investments of $939.4 million, at amortized cost, with a weighted-average     spread of one-month and three-month LIBOR plus 2.48%. 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 first quarter with $97.1     million, at amortized cost, in direct financing leases and loans at a     weighted-average rate of 8.70%. RCC's leasing portfolio is match-funded     through a secured term facility which had an outstanding balance of $88.7     million as of March 31, 2009 and a weighted-average interest rate of 7.68%,     which includes the cost of interest rate swaps with respect to the term     facility.      

Book Value

As of March 31, 2009, RCC's GAAP book value per common share was $6.81. Total stockholders' equity was $169.5 million as of March 31, 2009 as compared to $186.3 million as of December 31, 2008. Total common shares outstanding were 24,901,995 as of March 31, 2009 as compared to 25,344,867 as of December 31, 2008. The net decrease in RCC's stockholders' equity of $16.8 million was substantially the result of increased provisions for loan and lease losses of $8.0 million, losses on our bank loan portfolio of $9.0 million, combined with a decrease in the value of marked-to-market securities of $9.0 million, which was partially offset by an increase in the value of interest swap liabilities of $8.9 million.

As of March 31, 2009, RCC's economic book value per common share outstanding, a non-GAAP measure, was $9.74. 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 Note 1 of Schedule III in this release). 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.

Investment Portfolio

The table below summarizes the amortized cost and net carrying amount of RCC's investment portfolio as of March 31, 2009, 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 net carrying amount of RCC's investment portfolio and the related dollar price, which is computed by dividing the net carrying amount by par amount (in thousands, except percentages)(unaudited):

                                                             Net                                                          carrying                                      Net               amount less              Amortized   Dollar    carrying     Dollar  amortized   Dollar               cost (3)   price      amount      price      cost     price              ----------- ------  -----------    ------  ----------  ------   March 31,    2009   Floating    rate CMBS-private  placement   $    32,063  99.99% $    12,142     37.87% $  (19,921) -62.12% Other ABS             45 100.00%          45    100.00%          -       -% B notes (1)       26,500 100.00%      26,399     99.62%       (101)  -0.38% Mezzanine  loans (1)       129,396 100.00%     129,007     99.70%       (389)  -0.30% Whole loans  (1)             424,645  99.80%     418,371     98.32%     (6,274)  -1.48% Bank  loans (2)       923,441  97.58%     648,566     68.54%   (274,875) -29.04% Bank loans  held for  sale             15,968 100.00%      15,968    100.00%          -       -%              -----------         -----------            ----------   Total    floating    rate      $ 1,552,058  98.49% $ 1,250,498     79.36% $ (301,560) -19.13%              ===========         ===========            ==========   Fixed rate CMBS -  private  placement   $    38,505  91.52% $     8,139     19.34% $  (30,366) -72.18% B notes (1)       55,387 100.10%      55,221     99.80%       (166)  -0.30% Mezzanine  loans (1)        81,293  94.74%      68,398     79.71%    (12,895) -15.03% Whole loans  (1)              88,472  99.61%      88,210     99.31%       (262)  -0.30% Equipment  leases and  loans (4)        97,096  99.27%      96,546     98.71%       (550)  -0.56%              -----------         -----------            ----------   Total    fixed    rate      $   360,753  97.54% $   316,514     85.58% $  (44,239) -11.96%              ===========         ===========            ==========     Grand      total   $ 1,912,811  98.31% $ 1,567,012     80.54% $ (345,799) -17.77%              ===========         ===========            ========== (1)  Net carrying amount includes an allowance for loan losses of $20.1      million at March 31, 2009, allocated as follows:  B notes ($0.3      million), mezzanine loans ($13.3 million) and whole loans ($6.5      million). (2)  The bank loan portfolio is carried at amortized cost less allowance      for loan loss and was $896.7 million at March 31, 2009. Amount      disclosed represents net realized value at March 31, 2009, which      includes $26.7 million allowance for loan losses at March 31, 2009. (3)  Bank loans held for sale and other ABS are carried at fair value and,      therefore, amortized cost is equal to fair value. (4)  Net carrying amount includes a $550,000 allowance for lease and loan      losses at March 31, 2009. 

Liquidity

At April 30, 2009, after disbursing the first quarter 2009 dividend, there were three primary sources for RCC's liquidity:

 --  unrestricted cash and cash equivalents of $7.6 million and restricted     cash of $10.0 million comprised of $6.6 million in margin call accounts and     $3.4 million related to the leasing portfolio; --  capital available for reinvestment in its five collateralized debt     obligation ("CDO") entities of $41.9 million, of which $6.8 million is     designated to finance future funding commitments on CRE loans; and --  financing available under existing borrowing facilities of $11.3     million from RCC's secured financing facility. RCC also has $84.0 million     of unused capacity under a three-year non-recourse CRE repurchase facility,     which, however, requires approval of individual repurchase transactions by     the repurchase counterparty.