Reportable Segments

6 Months Ended

Jun. 30, 2011

Reportable Segments [Abstract]

Reportable Segments

14. Reportable Segments

The Financial Accounting Standards Board (“FASB”) guidance on segment reporting establishes standards for the way that public business enterprises report information about operating segments in financial statements and requires that those enterprises report selected financial information about operating segments in interim financial reports issued to shareholders.

Based on the Trust’s method of internal reporting, management determined that it has three operating segments: (i) the ownership of operating properties; (ii) the origination and acquisition of loans and debt securities secured directly or indirectly by commercial and multi-family real property — collectively, loan assets; and (iii) the ownership of equity and debt securities in other REITs — REIT securities.

The operating properties segment includes all of the Trust’s wholly and partially owned operating properties. The loan assets segment includes all of the Trust’s activities related to real estate loans including loans receivable, loan securities and equity investments in loan related entities. The REIT securities segment includes all of the Trust’s activities related to the ownership of securities in other publicly traded real estate companies. In addition to its three business segments, the Trust reports non-segment specific income and expense under corporate income (expense).

The following table summarizes the Trust’s assets by business segment for the periods ended June 30, 2011 and December 31, 2010 (in thousands):

	June 30,		December 31,
	2011		2010
Operating properties	$	376,207	$	373,142
Loan assets		182,944		134,269
REIT securities		7,613		33,032
Corporate
Cash and cash equivalents		51,344		45,257
Restricted cash		9,152		8,593
Straight line rent receivable		9,438		8,729
Other accounts receivable and prepaids		4,672		3,673
Deferred financing costs		1,346		1,158
Discontinued operations		3,702		2,275
Total Assets	$	646,418	$	610,128

The Trust defines net operating income for each segment presented as all items of income and expense directly derived from or incurred by each business segment before depreciation, amortization and interest expense. Interest on cash reserves, general and administrative expenses and other non-segment specific income and expense items are reported under corporate income (expense).

The following table presents a summary of revenues from operating properties, loan assets and REIT securities and expenses incurred by each segment for the three and six months ended June 30, 2011 and June 30, 2010 (in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2011			2010			2011			2010
Operating Properties
Rents and reimbursements	$	11,234		$	9,435		$	22,220		$	18,755
Operating expenses		(3,987	)		(1,818	)		(8,032	)		(3,767	)
Real estate taxes		(1,087	)		(340	)		(2,342	)		(1,060	)
Equity in income (loss) of Sealy Northwest Atlanta		5,133			(174	)		4,541			(349	)
Equity in loss of Sealy Airpark Nashville		(256	)		(224	)		(453	)		(433	)
Equity in loss of Sealy Newmarket		(633	)		(230	)		(1,144	)		(449	)
Impairment loss on Sealy equity investment		(3,800	)		—			(3,800	)		—
Equity in (loss) income of Marc Realty investments		(175	)		231			(120	)		307
Operating income		6,429			6,880			10,870			13,004
Depreciation and amortization expense		(3,312	)		(2,371	)		(6,793	)		(4,671	)
Interest expense		(3,296	)		(3,207	)		(7,115	)		(6,400	)
Operating properties net income (loss)		(179	)		1,302			(3,038	)		1,933
Loan Assets
Interest and discount accretion		4,976			2,837			14,190			5,299
Equity in earnings of preferred equity investment of Marc Realty		85			85			168			168
Equity in earnings of preferred equity investment of 450 West 14th Street		73			—			73			—
Unrealized gain on loan securities carried at fair value		34			3,625			2,847			3,012
Equity in income of ROIC Riverside		234			5			468			5
Equity in income of ROIC Lakeside Eagle		922			—			666			—
Equity in income of 46th Street Gotham		709			—			621			—
Equity in income of Concord		479			—			479			—
Equity in income of LW SOFI		262			—			262			—
Operating income		7,774			6,552			19,774			8,484
General and administrative expense		(11	)		(26	)		(15	)		(36	)
Interest expense		(184	)		—			(341	)		—
Loan assets net income		7,579			6,526			19,418			8,448
REIT Securities
Interest and dividends		118			753			576			1,500
Gain on sale of securities carried at fair value		7			78			131			773
Unrealized (loss) gain on securities carried at fair value		(723	)		(750	)		163			1,790
REIT Securities Net operating income (loss)		(598	)		81			870			4,063
Operating Segments Net Income		6,802			7,909			17,250			14,444
Reconciliations to GAAP Net Income:
Corporate Income (Expense)
Interest income		443			40			536			77
Interest expense		(483	)		(459	)		(1,120	)		(917	)
General and administrative		(2,747	)		(1,890	)		(5,267	)		(3,787	)
State and local taxes		(48	)		(85	)		(77	)		(99	)
Income from continuing operations before non-controlling interest		3,967			5,515			11,322			9,718
Non-controlling interest		(329	)		(175	)		(533	)		(420	)
Income from continuing operations attributable to Winthrop Realty Trust		3,638			5,340			10,789			9,298
Income (loss) from discontinued operations attributable to Winthrop Realty Trust		90			(764	)		137			(517	)
Net Income Attributable to Winthrop Realty Trust	$	3,728		$	4,576		$	10,926		$	8,781
Capital Expenditures
Operating properties	$	896		$	1,090		$	3,715		$	1,717