Reportable Segments

9 Months Ended

Sep. 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 September 30, 2011 and December 31, 2010 (in thousands):

	September 30,		December 31,
	2011		2010
Operating properties	$	382,859	$	373,142
Loan assets		150,676		134,269
REIT securities		6,652		33,032
Corporate
Cash and cash equivalents		66,777		45,257
Restricted cash		4,916		8,593
Straight line rent receivable		9,666		8,729
Other accounts receivable and prepaids		2,714		3,673
Deferred financing costs		1,184		1,158
Discontinued operations		1,491		2,275
Total Assets	$	626,935	$	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 nine months ended September 30, 2011 and September 30, 2010 (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
	2011			2010			2011			2010
Operating Properties
Rents and reimbursements	$	10,840		$	9,243		$	33,061		$	27,999
Operating expenses		(3,536	)		(1,812	)		(11,567	)		(5,579	)
Real estate taxes		(1,107	)		(952	)		(3,450	)		(2,012	)
Equity in income (loss) of Sealy Northwest Atlanta		(119	)		(192	)		4,422			(541	)
Equity in loss of Sealy Airpark Nashville		(275	)		(248	)		(728	)		(681	)
Equity in loss of Sealy Newmarket		(672	)		(301	)		(1,816	)		(750	)
Impairment loss on Sealy equity investment		—			—			(3,800	)		—
Equity in income of Vintage		424			—			424			—
Equity in income (loss) of Marc Realty investments		(199	)		1,187			(319	)		1,494
Operating income		5,356			6,925			16,227			19,930
Depreciation and amortization expense		(3,185	)		(2,378	)		(9,978	)		(7,050	)
Interest expense		(2,891	)		(3,196	)		(10,006	)		(9,596	)
Impairment loss on investment in real estate		(3,000	)		—			(3,000	)		—
Gain on extinguishment of debt		8,514			—			8,514			—
Gain on sale of equity investments		207			—			207			—
Operating properties net income		5,001			1,351			1,964			3,284
Loan Assets
Interest and discount accretion		5,417			4,185			19,607			9,484
Equity in earnings of preferred equity investment of Marc Realty		85			85			253			253
Equity in earnings of preferred equity investment of 450 West 14th Street		172			—			245			—
Unrealized gain (loss) on loan securities carried at fair value		(75	)		581			2,772			3,593
Equity in income of ROIC Riverside		234			234			702			239
Equity in income of ROIC Lakeside Eagle		—			—			666			—
Equity in income of 46th Street Gotham		—			—			621			—
Equity in loss of PSW NYC		—			(1,089	)		—			(1,089	)
Equity in income of Concord		2,549			—			3,028			—
Equity in income of LW SOFI		855			—			1,117			—
Equity in income of RE CDO Management		23			—			23			—
Operating income		9,260			3,996			29,034			12,480
General and administrative expense		(43	)		(186	)		(58	)		(222	)
Interest expense		(184	)		—			(525	)		—
Loan assets net income		9,033			3,810			28,451			12,258
REIT Securities
Interest and dividends		86			763			662			2,263
Gain (loss) on sale of securities carried at fair value		—			(185	)		131			588
Unrealized gain (loss) on securities carried at fair value		(961	)		2,490			(798	)		4,280
REIT securities net operating income (loss)		(875	)		3,068			(5	)		7,131
Operating Segments Net Income		13,159			8,229			30,410			22,673
Reconciliations to GAAP Net Income:
Corporate Income (Expense)
Interest income		472			17			1,008			94
Interest expense		(471	)		(613	)		(1,592	)		(1,530	)
General and administrative		(2,850	)		(2,114	)		(8,117	)		(5,901	)
State and local taxes		(12	)		(7	)		(88	)		(107	)
Income from continuing operations before non-controlling interest		10,298			5,512			21,621			15,229
Non-controlling interest		(318	)		(175	)		(851	)		(595	)
Income from continuing operations attributable to Winthrop Realty Trust		9,980			5,337			20,770			14,634
Income (loss) from discontinued operations attributable to Winthrop Realty Trust		(134	)		(1,529	)		2			(2,045	)
Net Income Attributable to Winthrop Realty Trust	$	9,846		$	3,808		$	20,772		$	12,589
Capital Expenditures
Operating properties	$	2,141		$	2,929		$	5,856		$	4,646