Reportable Segments

3 Months Ended

Mar. 31, 2012

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 March 31, 2012 and December 31, 2011 (in thousands):

	March 31, 2012		December 31, 2011
Assets
Operating properties	$	471,103	$	442,209
Loan assets		175,523		217,174
REIT securities		33,700		28,856
Corporate
Cash and cash equivalents		79,526		40,952
Restricted cash		8,549		3,914
Accounts receivable and prepaids		1,490		504
Deferred financing costs		281		318
Discontinued operations		6		6
Total Assets	$	770,178	$	733,933

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 months ended March 31, 2012 and March 31, 2011 (in thousands):

	For the Three Months Ended
	March 31, 2012			March 31, 2011
Operating Properties
Rents and reimbursements	$	12,540		$	10,986
Operating expenses		(4,552	)		(4,045	)
Real estate taxes		(1,254	)		(1,255	)
Equity in loss of Sealy Northwest Atlanta		(56	)		(592	)
Equity in loss of Sealy Airpark Nashville		—			(197	)
Equity in loss of Sealy Newmarket		(722	)		(511	)
Equity in income (loss) of Marc Realty investment		(347	)		55
Equity in income of WRT-Elad		543			—
Equity income of Vintage		339			—
Operating income		6,491			4,441
Depreciation and amortization expense		(3,719	)		(3,481	)
Interest expense		(3,163	)		(3,819	)
Operating properties net loss		(391	)		(2,859	)
Loan Assets
Interest		2,399			2,710
Discount accretion		2,833			6,504
Equity in earnings of preferred equity investment of Marc Realty		—			83
Unrealized gain on loan securities carried at fair value		164			2,813
Equity in income of ROIC Riverside		234			234
Equity in loss of ROIC Lakeside Eagle		(12	)		(256	)
Equity in loss of 46th Street Gotham		—			(88	)
Equity in income of Concord Debt Holdings		296			—
Equity in income of CDH CDO		394			—
Equity in income of WRT-Stamford		89			—
Equity in loss of SoCal Office Loan Portfolio		(345	)		—
Equity in income of RE CDO management		11			—
Operating income		6,063			12,000
General and administrative expense		(5	)		(4	)
Interest expense		(334	)		(157	)
Loan assets net income		5,724			11,839
REIT Securities
Interest and dividends		286			458
Gain on sale of securities carried at fair value		26			124
Unrealized gain on securities carried at fair value		4,932			886
Operating income		5,244			1,468
Net Income		10,577			10,448
Reconciliations to GAAP Net Income:
Corporate Income (Expense)
Interest income		102			93
Interest expense		(292	)		(637	)
General and administrative		(3,026	)		(2,520	)
State and local taxes		(6	)		(29	)
Income from continuing operations before non-controlling interest		7,355			7,355
Non-controlling interest		901			(204	)
Income from continuing operations attributable to Winthrop Realty Trust		8,256			7,151
Income from discontinued operations attributable to Winthrop Realty Trust		(3	)		47
Net Income Attributable to Winthrop Realty Trust	$	8,253		$	7,198
Capital Expenditures
Operating properties	$	1,245		$	2,819