Reportable Segments

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Reportable Segments

20. Reportable Segments

The 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 reportable segments in interim financial reports issued to shareholders.

Based on the Trust’s method of internal reporting, management determined that it had three reportable 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. Subsequent to the adoption of the plan of liquidation, the Trust no longer makes operating decisions or assess performance in separate segments as all assets are considered held for sale. Accordingly, the Trust has only one reporting and operating segment subsequent to July 31, 2014.

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 reportable 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 July 31, 2014 and December 31, 2013 (in thousands):

	July 31, 2014		December 31, 2013
Assets
Operating properties	$	874,237	$	845,698
Loan assets		105,614		147,702
REIT securities		—		—
Corporate
Cash and cash equivalents		111,096		112,512
Restricted cash		401		186
Accounts receivable and prepaids		837		543
Deferred financing costs		2,442		2,645
Assets held for sale		2,414		23,038
Total Assets	$	1,097,041	$	1,132,324
Capital Expenditures
Operating Properties	$	3,840	$	3,892

The Trust defines operating income for each segment presented as all items of income and expense directly derived from or incurred by each reportable segment before depreciation, amortization, interest expense and other non-recurring non-operating items. 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 one and seven months ended July 31, 2014 and the three and nine months ended September 30, 2013 (in thousands):

	For the One Months Ended July 31, 2014			For the Three Months Ended September 30, 2013			For the Seven Months Ended July 31, 2014			For the Nine Months Ended September 30, 2013
Operating Properties
Rents and reimbursements	$	7,085		$	12,026		$	46,313		$	35,795
Operating expenses		(2,546	)		(4,301	)		(17,127	)		(11,856	)
Real estate taxes		(764	)		(1,172	)		(5,379	)		(3,122	)
Equity in earnings of preferred equity investment in Fenway-Wateridge		3			189			17			576
Equity in earnings of preferred equity investment in Vintage Housing Holdings		8			—			565			—
Equity in income of Vintage Housing Holdings		608			2,525			4,287			7,142
Equity in income of WRT-Elad		418			905			2,927			1,515
Equity in income of 701 Seventh Avenue		896			1,055			4,393			2,375
Equity in income of Fenway-Wateridge		36			50			142			133
Equity in income of Marc Realty investment		(26	)		(26	)		(19	)		(17	)
Equity in loss of Sealy Northwest Atlanta		(22	)		(130	)		(288	)		(363	)
Equity in income of Mentor Retail		6			12			43			45
Equity in income (loss) of Atrium Mall		63			(31	)		7			(31	)
Equity in loss of Edens Plaza Associates		—			—			(1	)		—
Operating properties operating income		5,765			11,102			35,880			32,192
Depreciation and amortization expense		(2,074	)		(3,847	)		(15,957	)		(11,594	)
Interest expense		(1,360	)		(2,829	)		(9,323	)		(9,563	)
Impairment loss on equity investments		—			—			(2,422	)		—
Impairment loss on investments in real estate		—			—			(9,200	)		—
Settlement expense		—			(16	)		—			(150	)
Operating properties net income (loss)		2,331			4,410			(1,022	)		10,885
Loan Assets
Interest income		899			3,011			7,557			10,912
Discount accretion		495			806			2,086			2,283
Unrealized gain on loan securities carried at fair value		—			—			—			215
Equity in loss of ROIC Lakeside Eagle		(1	)		(7	)		(20	)		(22	)
Equity in income of Concord Debt Holdings		32			2,970			547			3,041
Equity in income of CDH CDO		81			265			1,065			415
Equity in (loss) income of Concord Debt Holdings (1)		(1	)		20			87			49
Equity in income of CDH CDO (1)		79			3,367			1,326			4,274
Equity in income of WRT-Stamford		80			256			541			701
Equity in loss of SoCal Office Loan Portfolio		—			—			—			(2	)
Equity in income (loss) of RE CDO Management		1			(51	)		7			3,710
Equity in income of 10 Metrotech		—			2,676			—			3,284
Loan assets operating income		1,665			13,313			13,196			28,860
General and administrative expense		(3	)		(1	)		(223	)		(36	)
Interest expense		—			(335	)		(121	)		(1,562	)
Loan assets net income		1,662			12,977			12,852			27,262
REIT Securities
Interest and dividends		—			100			—			350
Gain (loss) on sale of securities carried at fair value		—			(31	)		2			(133	)
Unrealized loss on securities carried at fair value		—			—			—			(142	)
REIT securities net income (loss)		—			69			2			75
Net income from segments before corporate income (expense)		3,993			17,456			11,832			38,222
Reconciliations to GAAP Net Income:
Corporate Income (Expense)
Interest income		37			101			244			286
Interest expense		(510	)		(1,828	)		(3,950	)		(5,482	)
General and administrative		(494	)		(1,103	)		(4,060	)		(3,004	)
Related party fees		(774	)		(2,309	)		(5,548	)		(6,866	)
Loss on extinguishment of debt		—			—			(564	)		—
Transaction costs		(17	)		(106	)		(586	)		(158	)
Federal, state and local taxes		165			(83	)		60			(222	)
Income (loss) from continuing operations before non-controlling interest attributable to Winthrop Realty Trust		2,400			12,128			(2,572	)		22,776
Income (loss) from discontinued operations attributable to Winthrop Realty Trust		84			(1,395	)		11,235			8,653
Non-controlling interest		395			995			3,818			2,419
Net Income Attributable to Winthrop Realty Trust	$	2,879		$	11,728		$	12,481		$	33,848

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