Reportable Segments

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Reportable Segments

26. Reportable Segments

The FASB guidance on segment reporting establishes standards for the way that public business enterprises report information about reportable segments in financial statements and requires that those enterprises report selected financial information about reportable segments in 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. The accounting policies of the segments are identical to those described in Note 3 – Summary of Significant Accounting Policies. 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 reportable segment and capital expenditures incurred for the Trust’s operating properties for the seven months ended July 31, 2014 and the year ended December 31, 2013:

	Seven Months Ended July 31, 2014		Year Ended 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 seven months ended July 31, 2014 and the years ended December 31, 2013 and 2012 (in thousands):

	For the Seven Months Ended July 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012
Operating Properties
Rents and reimbursements	$	46,313		$	51,865		$	33,930
Operating expenses		(17,127	)		(17,769	)		(10,814	)
Real estate taxes		(5,379	)		(4,926	)		(2,598	)
Equity in income of preferred equity investment in Fenway – Wateridge		17			613			—
Equity in income of preferred equity investment in Vintage Housing Holdings		565			—			—
Equity in income (loss) of Marc Realty investments		(19	)		(284	)		33
Equity in loss of Sealy Northwest Atlanta		(288	)		(469	)		(388	)
Equity in loss of Sealy Newmarket		—			—			(2,811	)
Equity in income of Vintage Housing Holdings		4,287			9,174			4,603
Equity in income of WRT-Elad		2,927			1,315			903
Equity in income of Mentor Retail		43			84			46
Equity in income of 701 Seventh Avenue		4,393			3,424			—
Equity in income of Fenway – Wateridge		142			183			—
Equity in income (loss) of Atrium Mall		7			(90	)		—
Equity in income of F-II Co-invest		—			—			232
Equity in loss of Edens Plaza Associates		(1	)		—			—
Operating properties operating income		35,880			43,120			23,136
Depreciation and amortization expense		(15,957	)		(17,275	)		(11,277	)
Interest expense		(9,323	)		(13,157	)		(10,886	)
Impairment loss on investments in real estate		(9,200	)		—			(1,738	)
Impairment loss on equity investments		(2,422	)		(7,687	)		—
Loss on extinguishment of debt		—			—			(121	)
Settlement expense		—			(411	)		—
Operating properties net income (loss)		(1,022	)		4,590			(886	)

	For the Seven Months Ended July 31, 2014			Year Ended December 31, 2013			Year Ended December 31, 2012
Loan Assets
Interest income		7,557			14,334			11,736
Discount accretion		2,086			4,121			8,333
Equity in income of Concord Debt Holdings		547			3,072			422
Equity in income of CDH CDO		1,065			1,033			1,715
Equity in income (loss) of Concord Debt Holdings (1)		87			64			(456	)
Equity in income (loss) of CDH CDO (1)		1,326			4,926			(997	)
Equity in income of ROIC Riverside		—			—			706
Equity in loss of ROIC Lakeside Eagle		(20	)		(25	)		(42	)
Equity in income of RE CDO Management		7			3,709			67
Equity in (loss) income of SoCal Office Loan Portfolio		—			(2	)		9,706
Equity in income of WRT-Stamford		541			930			769
Equity in income of 10 Metrotech		—			3,284			335
Realized gain on sale of loan securities carried at fair value		—			—			614
Unrealized gain on loan securities carried at fair value		—			215			447
Loan assets operating income		13,196			35,661			33,355
General and administrative expense		(223	)		(44	)		(121	)
Interest expense		(121	)		(1,898	)		(1,494	)
Provision for loss on loans receivable		—			(348	)		—
Loan assets net income		12,852			33,371			31,740
REIT Securities
Interest and dividends		—			—			1,054
Gain on sale of securities carried at fair value		2			742			41
Unrealized gain (loss) on securities carried at fair value		—			(142	)		6,916
REIT securities net income		2			600			8,011
Net Income from segments before corporate income (expense)		11,832			38,561			38,865
Reconciliations to GAAP Net Income:
Corporate Income (Expense)
Interest and other income		244			375			699
General and administrative		(4,060	)		(4,312	)		(3,408	)
Related party fees		(5,548	)		(9,289	)		(8,953	)
Transaction costs		(586	)		(1,885	)		(421	)
Interest expense		(3,950	)		(7,310	)		(3,153	)
Loss on extinguishment of debt		(564	)		—			—
Federal, state and local taxes		60			(424	)		(230	)
Income (loss) from continuing operations before non-controlling interest attributable to Winthrop Realty Trust		(2,572	)		15,716			23,399
Income from discontinued operations attributable to Winthrop Realty Trust		11,235			8,772			985
Non-controlling interest		3,818			4,290			247
Net income attributable to Winthrop Realty Trust	$	12,481		$	28,778		$	24,631