Reportable Segments

3 Months Ended

Mar. 31, 2013

Reportable Segments [Abstract]

Reportable Segments

16. 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, 2013 and December 31, 2012 (in thousands):

	March 31, 2013		December 31, 2012
Assets
Operating properties	$	611,962	$	562,822
Loan assets		157,248		239,534
REIT securities		12,220		19,694
Corporate
Cash and cash equivalents		131,448		97,682
Restricted cash		2,786		—
Accounts receivable and prepaids		431		336
Deferred financing costs		2,982		3,095
Total Assets	$	919,077	$	923,163
Capital Expenditures
Operating Properties	$	502	$	12,417

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, 2013 and 2012 (in thousands):

\	For the Three Months Ended
	March 31,			March 31,
	2013			2012
Operating Properties
Rents and reimbursements	$	15,179		$	11,793
Operating expenses		(4,930	)		(4,331	)
Real estate taxes		(946	)		(1,192	)
Equity in earnings of preferred equity investment in Fenway-Wateridge		202			—
Equity in loss of Sealy Northwest Atlanta		(146	)		(56	)
Equity in loss of Sealy Newmarket		—			(722	)
Equity in loss of Marc Realty investment		(60	)		(347	)
Equity in income of WRT-Elad		443			543
Equity in income of Vintage		1,921			339
Equity in income of 701 Seventh Avenue		697			—
Equity in income of Fenway-Wateridge		36			—
Equity in income of Mentor		17			—
Operating income		12,413			6,027
Depreciation and amortization expense		(5,174	)		(3,537	)
Interest expense		(3,625	)		(3,098	)
Operating properties net income (loss)		3,614			(608	)
Loan Assets
Interest		4,454			2,399
Discount accretion		716			2,833
Unrealized gain on loan securities carried at fair value		—			164
Equity in income of ROIC Riverside		—			234
Equity in loss of ROIC Lakeside Eagle		(13	)		(12	)
Equity in income of Concord Debt Holdings		35			296
Equity in income of CDH CDO		150			394
Equity in income of Concord Debt Holdings (1)		14			—
Equity in income of CDH CDO (1)		480			—
Equity in income of WRT-Stamford		221			89
Equity in loss of SoCal Office Loan Portfolio		—			(345	)
Equity in income of RE CDO management		3,770			11
Equity in income of 10 Metrotech		304			—
Operating income		10,131			6,063
General and administrative expense		(14	)		(5	)
Interest expense		(580	)		(334	)
Loan assets net income		9,537			5,724
REIT Securities
Interest and dividends		150			286
(Loss) gain on sale of securities carried at fair value		(102	)		26
Unrealized gain on securities carried at fair value		1,718			4,932
REIT securities net income		1,766			5,244
Net income from segments before corporate income (expense)		14,917			10,360
Reconciliations to GAAP Net Income:
Corporate Income (Expense)
Interest income		70			101
Interest expense		(1,827	)		(292	)
General and administrative		(833	)		(878	)
Related party fees		(2,266	)		(2,027	)
Transaction costs		(6	)		(121	)
State and local taxes		(17	)		(6	)
Income from continuing operations before non-controlling interest		10,038			7,137
Non-controlling interest		795			901
Income from continuing operations		10,833			8,038
Income from discontinued operations		2,913			215
Net Income Attributable to Winthrop Realty Trust	$	13,746		$	8,253

(1) Represents the interest acquired from Lexington Realty Trust on May 1, 2012.