EX-99.2 4 e606536_ex99-2.htm Unassociated Document

 
 

Winthrop Realty Trust
Supplemental Operating and Financial Data
for the Year Ended December 31, 2009

 
WINTHROP REALTY TRUST
SUPPLEMENTAL REPORTING PACKAGE

 
Table of Contents
 
Consolidated Balance Sheets
1
Consolidated Statements of Operations and Comprehensive Income
2-3
Funds from Operations Analysis
4
Consolidated Statements of Cash Flows
5-6
Selected Balance Sheet Account Detail
7
Schedule of Capitalization, Dividends and Liquidity
8
Net Operating Income from Consolidated Properties
9
Consolidated Properties – Selected Property Data
10-12
Equity Investments – Selected Property Data
13-14
Consolidated Properties – Operating Summary
15
Equity Investments – Operating Summary
16
Reconciliation of Non-GAAP financial measures of income to net loss attributable to Common Shares
17
Definitions
18
Investor Information
19

 
Forward-Looking Statements - This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words "assumes," "believes," "estimates," "expects," "guidance," "intends," “plans,”  projects,” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Winthrop Realty Trust (the “Trust”) control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the ability of our joint venture partners to satisfy their obligations, the costs and availability of financing, the effects of local economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Trust's accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Trust’s filings with the Securities and Exchange Commission. The Trust does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
 
Non-GAAP Financial Measures - It is important to note that throughout this presentation management makes references to non-GAAP financial measures, an example of which is Funds from Operations (“FFO”). Reconciliations and definitions for these non-GAAP financial measures are provided within this document.
 
 
WINTHROP REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(Unaudited)
 
   
December 31,
  
   
2009
    
2008
  
ASSETS
            
Investments in real estate, at cost
            
Land
   $ 20,659     $ 21,344  
Buildings and improvements
     228,419       246,362  
      249,078       267,706  
Less: accumulated depreciation
     (31,269 )     (25,901 )
Investments in real estate, net
     217,809       241,805  
                 
Cash and cash equivalents
     66,493       59,238  
Restricted cash held in escrows
     9,505       14,353  
Loans receivable, net of allowances of $0 and $2,445, respectively
     26,101       22,876  
Accounts receivable, net of allowances of $565 and $225, respectively
     14,559       14,028  
Securities carried at fair value
     52,394       36,516  
Loan securities carried at fair value
     1,661       -  
Available for sale securities, net
     203       184  
Preferred equity investment
     4,012       50,624  
Equity investments
     73,207       92,202  
Lease intangibles, net
     22,666       25,929  
Deferred financing costs, net
     1,495       3,218  
Assets of discontinued operations
     3,087       -  
Deposit
     -       17,081  
Other assets
     -       40  
TOTAL ASSETS
   $ 493,192     $ 578,094  
                 
LIABILITIES
                
Mortgage loans payable
   $ 216,767     $ 229,737  
Series B-1 Cumulative Convertible Redeemable Preferred Shares, $25 per share liquidation preference; 852,000 and 2,413,105 shares authorized and outstanding at December 31, 2009 and 2008, respectively
     21,300       60,328  
Note payable
     -       9,800  
Accounts payable and accrued liabilities
     7,401       8,596  
Dividends payable
     3,458       5,934  
Deferred income
     48       795  
Below market lease intangibles, net
     2,849       3,696  
TOTAL LIABILITIES
     251,823       318,886  
                 
COMMITMENTS AND CONTINGENCIES
                
                 
NON-CONTROLLING REDEEMABLE PREFERRED INTEREST
                
Series C Cumulative Convertible Redeemable Preferred Shares, $25 per share liquidation preference, 544,000 shares authorized and outstanding at December 31, 2009
     12,169       -  
Total non-controlling redeemable preferred interest
     12,169       -  
                 
EQUITY
                
Winthrop Realty Trust Shareholders’ Equity:
                
Common Shares, $1 par, unlimited shares authorized; 20,375,483 and 15,754,495 issued and outstanding in 2009 and 2008, respectively
     20,375       15,754  
Additional paid-in capital
     498,118       460,956  
Accumulated distributions in excess of net income
     (301,317 )     (213,284 )
Accumulated other comprehensive loss
     (87 )     (15,176 )
Total Winthrop Realty Trust Shareholders’ Equity
     217,089       248,250  
Non-controlling interests
     12,111       10,958  
Total Equity
     229,200       259,208  
TOTAL LIABILITIES AND EQUITY
   $ 493,192     $ 578,094  
 
1
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in thousands, except per share data)
(Unaudited)
 
   
Three Months Ended 
December 31,
    
Years Ended
December 31,
  
   
2009
    
2008
    
2009
    
2008
  
Revenue
                        
   Rents and reimbursements
   $ 9,558     $ 10,476     $ 40,605     $ 42,088  
   Interest and dividends
     874       1,186       7,336       2,448  
      10,432       11,662       47,941       44,536  
Expenses
                                
   Property operating
     1,550       1,716       7,043       6,768  
   Real estate taxes
     573       315       2,542       2,428  
   Depreciation and amortization
     2,647       2,942       10,779       11,766  
   Interest
     3,919       5,083       16,664       21,963  
   Impairment loss on investments in real estate
     10,000       2,100       10,000       2,100  
   Impairment loss on available for sale securities
     -       -       -       207  
   Provision for loss on loans receivable
     -       1,179       2,152       1,179  
   General and administrative
     2,166       1,768       7,303       6,887  
   State and local taxes
     (54 )     95       157       330  
      20,801       15,198       56,640       53,628  
Other income (loss)
                                
Loss from preferred equity investments
     -       (4,163 )     (2,108 )     (1,645 )
   Equity in loss of equity investments
     (2,891 )     (53,112 )     (103,092 )     (69,310 )
   Gain (loss) on sale of available for sale securities
     -       (449 )     -       1,580  
   Gain on sale of mortgage-backed securities
     -       -       -       454  
   Gain on sale of securities carried at fair value
     2,142       -       5,416       -  
   Gain on sale of other assets
     -       -       -       24  
   Gain on extinguishment of debt
     1,164       6,284       6,846       6,284  
   Unrealized gain on securities carried at fair value
     3,852       24       17,862       24  
   Impairment loss on real estate loan available for sale
     -       -       (203 )     -  
   Interest income
     27       245       172       1,670  
   Other income
     -       499       -       499  
      4,294       (50,672 )     (75,107 )     (60,420 )
                                 
Loss from continuing operations
     (6,075 )     (54,208 )     (83,806 )     (69,512 )
                                 
Discontinued operations
                                
   Income (loss) from discontinued operations
     274       (40 )     184       12  
   Gain on early extinguishment of debt
     292       -       292       -  
   Gain on sale of real estate
     -       1,807       -       1,807  
   Income from discontinued operations
     566       1,767       476       1,819  
                                 
Consolidated net loss
     (5,509 )     (52,441 )     (83,330 )     (67,693 )
   Income attributable to non-controlling interest
     (366 )     (219 )     (1,017 )     (483 )
Net loss attributable to Winthrop Realty Trust
     (5,875 )     (52,660 )     (84,347 )     (68,176 )
   Income attributable to non-controlling redeemable
                                
       Series C preferred interest
     (147 )     -       (147 )     -  
Net loss attributable to Common Shares
   $ (6,022 )   $ (52,660 )   $ (84,494 )   $ (68,176 )
                                 
Comprehensive loss
                                
   Consolidated net loss
   $ (5,509 )   $ (52,441 )   $ (83,330 )   $ (67,693 )
   Change in unrealized gain (loss) on available for sale securities
     (2 )     (466 )     19       1,662  
   Change in unrealized gain on mortgage-backed securities
     -       -       -       190  
   Change in unrealized gain (loss) on interest rate derivative
     137       (534 )     543       (743 )
   Change in unrealized gain (loss) from equity investments
     -       (9,602 )     26,174       (6,137 )
   Less reclassification adjustment included in net income
     -       425       -       (2,058 )
Comprehensive loss
   $ (5,374 )   $ (62,618 )   $ (56,594 )   $ (74,779 )
 
(Continued on next page)
 
2
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(in thousands, except per share data, continued)
(Unaudited)
 
     
Three Months Ended 
December 31,
      
Years Ended
December 31,
  
     
2009
       2008       2009       2008  
Per Common Share Data – Basic:
                                
Income (loss) from continuing operations
     (0.37 )     (3.46 )     (5.22 )     (4.71 )
Income from discontinued operations
     0.03       0.12       0.03       0.12  
Net income (loss) attributable to Winthrop Realty Trust
     (0.34 )     (3.34 )     (5.19 )     (4.59 )
                                 
Per Common Share Data – Diluted:
                                
Income (loss) from continuing operations
     (0.37 )     (3.46 )     (5.22 )     (4.71 )
Income from discontinued operations
     0.03       0.12       0.03       0.12  
Net income (loss) attributable to Winthrop Realty Trust
     (0.34 )     (3.34 )     (5.19 )     (4.59 )
                                 
Basic Weighted-Average Common Shares
     17,608       15,747       16,277       14,866  
                                 
Diluted Weighted-Average Common Shares
     17,608       15,747       16,277       14,866  
 
3
 
WINTHROP REALTY TRUST
FUNDS FROM OPERATIONS ANALYSIS
(in thousands, except per share data)
(Unaudited)
 
   
Three Months Ended
December 31,
    
Years Ended
December 31,
  
   
2009
    
2008
    
2009
    
2008
  
Reconciliation of Net Loss to Funds from Operations (FFO):
                        
                         
Loss attributable to Winthrop Realty Trust
   $ (5,875 )   $ (52,660 )   $ (84,347 )   $ (68,176 )
Real estate depreciation
     1,704       1,709       6,688       6,715  
Amortization of capitalized leasing costs
     959       1,262       4,226       5,160  
Real estate depreciation and amortization
                                
of unconsolidated interests
     2,169       1,109       6,379       3,699  
Less:
                                
Non-controlling interest share of
                                
depreciation  and amortization
     (809 )     (822 )     (3,191 )     (3,258 )
Gain on sale of real estate
     -       (1,807 )     -       (1,807 )
Funds From Operations
     (1,852 )     (51,209 )     (70,245 )     (57,667 )
Series C preferred dividends
     (147 )     -       (147 )     -  
FFO applicable to Common Shares
   $ (1,999 )   $ (51,209 )   $ (70,392 )   $ (57,667 )
                                 
Weighted-average Common Shares
     17,608       15,747       16,277       14,866  
Diluted weighted-average Common Shares
     17,608       15,747       16,277       14,866  
Per Common Share
   $ (0.11 )   $ (3.25 )   $ (4.32 )   $ (3.88 )
                                 
FFO applicable to common shares (per above)
   $ (1,999 )   $ (51,209 )   $ (70,392 )   $ (57,667 )
                                 
Items that affect comparability (income) expense:
                                
Non-cash asset write-downs:
                                
Impairment loss on investments in real estate
     10,000       2,100       10,000       2,100  
Provision for loss on loans receivable
     -       1,179       2,152       1,179  
Impairment loss on real estate loan available for sale
     -       -       203       -  
Available for sale securities impairment
     -       -       -       207  
Impairment on preferred equity investment
     -       5,512       4,850       7,512  
Impairment of equity investment in Concord
     -       36,543       31,670       36,543  
Impairment of equity investment in Marc Realty
     2,500        -       2,500        -  
Loan loss and impairments from partially
                                
owned entity – Lex-Win Concord
     -       19,832       71,390       52,443  
Net (gain) loss on sale of preferred equity
     84       (245 )     (650 )     (1,160 )
Net gain on extinguishment of debt
     (1,456 )     (6,284 )     (7,138 )     (6,284 )
Net gain on extinguishment of debt from partially
                                
owned entity - Lex-Win Concord
     -       (1,453 )     -       (7,802 )
Total items that affect comparability
     11,128       57,184       114,977       84,738  
                                 
Series C preferred dividend
     147       -       147       -  
Series B-1 preferred interest
     474       1,000       2,460       5,931  
FFO as adjusted for comparability
   $ 9,750     $ 6,975     $ 47,192     $ 33,002  
                                 
Basic weighted average Common Shares
     17,608       15,747       16,277       14,866  
Series B-1 Preferred Shares
     1,150       3,026       1,563       3,768  
Series C Preferred Shares
     644       -       162       -  
Stock Options
     -       1       -       9  
Diluted weighted average Common Shares
     19,402       18,774       18,002       18,643  
Per Common Share
   $ 0.50     $ 0.37     $ 2.62     $ 1.77  
 
4
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
 
   
Three Months Ended 
December 31,
    
Years Ended
December 31,
  
   
2009
    
2008
    
2009
    
2008
  
Cash flows from operating activities
                        
   Net loss
   $ (5,509 )   $ (52,411 )   $ (83,330 )   $ (67,693 )
   Adjustments to reconcile net (loss) income to net cash
                                
   provided by operating activities:
                                
      Depreciation and amortization (including amortization
                                
         of deferred financing costs)
     1,942       1,955       7,504       8,072  
      Amortization of lease intangibles
     1,124       1,335       4,771       5,507  
      Straight-lining of rental income
     (766 )     (1,077 )     (1,280 )     (1,701 )
      Losses (earnings) of preferred equity investments
     (85 )     4,407       2,758       2,805  
      Distributions from preferred equity investments
     82       1,102       2,373       4,804  
      Losses of equity investments
     2,891       53,112       103,092       69,310  
      Distributions from equity investments
     1,188       290       2,784       6,878  
      Restricted cash held in escrows
     (815 )     (867 )     (1,824 )     (318 )
      Gain on sale of securities carried at fair value
     (2,142 )     -       (5,416 )     -  
      (Gain ) loss on sale of available for sale securities
     -       449       -       (1,580 )
      Gain on sale of mortgage-backed securities available
                                
         for sale
     -       -       -       (454 )
      Gain on sale of investments in real estate
     -       (1,807 )     -       (1,807 )
      Unrealized gain on securities carried at fair value
     (3,852 )     -       (17,862 )     -  
      Unrealized gain on available for sale securities
     -       (24 )     -       (24 )
      Gain on extinguishment of debt
     (1,457 )     (6,284 )     (7,138 )     (6,284 )
      Impairment loss on real estate loan available for sale
     -       -       203       -  
      Impairment loss
     10,000       2,100       10,000       2,307  
      Provision for loss on loan receivable
     -       1,179       2,152       1,179  
      Tenant leasing costs
     (110 )     795       (2,191 )     795  
      Bad debt expense
     413       117       340       62  
      Net change in interest receivable
     97       (20 )     (74 )     (70 )
      Net change in loan discount accretion
     (615 )     -       (1,021 )     -  
      Net change in other operating assets and liabilities
     (1,329 )     -       (873 )     4,084  
         Net cash provided by operating activities
     1,057       4,351       14,968       25,872  
                                 
Cash flows from investing activities
                                
      Investments in real estate
     (1,221 )     (1,117 )     (2,522 )     (3,901 )
      Proceeds from repayments of mortgage-backed
                                
         securities available for sale
     -       -       -       78,318  
      Investment in equity investments
     (1,351 )     -       (3,358 )     (14,093 )
      Investment in preferred equity investments
     (487 )     -       (487 )     (4,973 )
      Return of equity on equity investments
     118       -       118       19,041  
      Return of capital distribution from available for sale
                                
         securities
     -       -       -       -  
      Proceeds from preferred equity investments
     85       -       145       21,273  
      Purchase of available for sale securities
     -       -       -       (5,055 )
      Purchase of securities carried at fair value
     (2,563 )     (36,896 )     (33,115 )     (36,896 )
      Proceeds from sale of available for sale securities
     -       389       -       58,088  
      Proceeds from sale of securities carried at fair value
     16,149       422       39,015       422  
      Investment in loan receivable available for sale
     -       -       (35,000 )     -  
      Proceeds from sale of loan receivable available for sale
     -       -       34,797       -  
      Decrease (increase) in restricted cash held in escrows
     21       367       2,668       (252 )
      Issuance and acquisition of loans receivable
     (16,013 )     (17,196 )     (31,514 )     (24,124 )
      Collection of loans receivable
     487       10,000       11,467       12,635  
      Cash proceeds from foreclosure on property
     -       -       -       -  
         Net cash provided by (used in) investing activities
     (4,775 )     (44,031 )     (17,786 )     100,483  
 
(Continued on next page)
 
5
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(in thousands, continued)
(Unaudited)
 
   
Three Months Ended 
December 31,
    
Years Ended
December 31,
  
   
2009
    
2008
    
2009
    
2008
  
Cash flows from financing activities
                        
   Repayment of borrowings under repurchase agreements
     -       -       -       (75,175 )
   Proceeds from mortgage loans payable
     -       133       49       875  
   Principal payments of mortgage loans payable
     (1,897 )     (4,104 )     (6,229 )     (8,063 )
   Deposit on Series B-1 Preferred Shares
     -       (17,081 )     -       (17,081 )
   Redemption of Series B-1 Preferred Shares
     -       (18,583 )     (2,000 )     (18,583 )
   Restricted cash held in escrows
     34       27,869       4,004       (5,127 )
   Proceeds from loan payable
     -       9,800       19,818       -  
   Payment of loan payable
     -       -       (19,818 )     -  
   Proceeds from note payable
     -       -       -       9,800  
   Payments of note payable
     -       -       (9,800 )     -  
   Proceeds from revolving line of credit
     -       -       35,000       70,000  
   Payment of revolving line of credit
     -       (70,000 )     (35,000 )     (70,000 )
   Deferred financing costs
     -       (368 )     (61 )     (392 )
   Contribution from non-controlling interest
     256       -       979       600  
   Distribution to non-controlling interest
     (100 )     (94 )     (843 )     (103 )
   Issuance of Common Shares through rights offering
     40,168       (27 )     40,168       36,874  
   Issuance of Common Shares under Dividend Reinvestment Plan
     568       989       1,615       4,407  
   Purchase of retirement of Common Shares
     -       (930 )     -       (930 )
   Redemption of Common Shares through Reverse Split
     -       (10 )     -       (10 )
   Dividend paid on Common Shares
     (3,965 )     (5,113 )     (17,809 )     (30,863 )
         Net change provided by (used in) financing activities
     35,064       (77,519 )     10,073       (103,771 )
                                 
   Net increase (decrease) in cash and cash equivalents
     31,346       (120,536 )     7,255       22,584  
   Cash and cash equivalents at beginning of year
     35,147       179,774       59,238       36,654  
   Cash and cash equivalents at end of year
   $ 66,493     $ 59,238     $ 66,493     $ 59,238  
                                 
   Supplemental Disclosure of Cash Flow Information
                                
   Interest paid
   $ 3,700     $ 5,127     $ 16,324     $ 25,167  
   Taxes paid
   $ 96     $ 74     $ 220     $ 189  
   Supplemental Disclosure on Non-Cash Investing and
                                
      Financing Activities
                                
   Dividends accrued on Common Shares
   $ 3,311     $ 5,934     $ 3,311     $ 5,934  
   Dividends accrued on Series C Preferred Shares
   $ 147     $ -     $ 147     $ -  
   Capital expenditures accrued
   $ 201     $ 358     $ 201     $ 358  
   Distribution from equity investment    $  161     $  -     $  161     $  -  
   Conversion of Series B-1 Preferred Shares into Common
                                
      Shares
   $ -     $ 570     $ -     $ 12,339  
   Redemption of Series B-1 Preferred Shares
   $ -             $ (17,081 )   $ -  
   Deposit on redemption of Series B-1 Preferred Shares
   $ -             $ 17,081     $ -  
   Transfer of preferred equity investments to equity method
                                
      investments
   $ -     $ -     $ (41,823 )   $ -  
   Transfer of loans to equity method investments
   $ -     $ -     $ (15,805 )   $ -  
   Transfer to equity method investments from loans and
                                
      preferred equity investments
   $ -     $ -     $ 57,628     $ -  
 
6
 
WINTHROP REALTY TRUST
SEELCTED BALANCE SHEET ACCOUNT DETAIL
(in thousands)
 
   
December 31, 2009
    
December 31, 2008
  
Operating Real Estate
            
Land
   $ 20,659     $ 21,344  
Buildings and improvements
                
Buildings
     217,793       236,721  
Building improvements
     6,819       6,496  
Tenant improvements
     3,807       3,145  
      249,078       267,706  
Accumulated depreciation and amortization
     (31,269 )     (25,901 )
Total Operating Real Estate
   $ 217,809     $ 241,805  
 
                
Accounts Receivable
                
Straight-line rent receivable
   $ 8,941     $ 7,661  
Other
     5,618       6,367  
Total Accounts Receivable
   $ 14,559     $ 14,028  
                 
Securities Held at Fair Value
                
Senior debentures
   $ 18,794     $ 8,631  
Preferred Shares
     23,950       8,352  
Common Shares
     9,650       19,533  
Total Securities Held at Fair Value
   $ 52,394     $ 36,516  
                 
Equity Investments
                
Marc Realty Portfolio
   $ 57,560     $ -  
Sealy Ventures Properties
     15,647       19,046  
Lex-Win Concord
     -       73,061  
Lex-Win Acquisition
     -       95  
Total Equity Investments
   $ 73,207     $ 92,202  
                 
Non-Controlling Interests
                
Westheimer (Houston, TX)
   $ 8,840     $ 8,132  
River City / Marc Realty (Chicago, IL)
     2,084       899  
Ontario / Marc Realty (Chicago, IL)
     801       900  
1050 Corporetum / Marc Realty ( Lisle, IL)
     386       423  
Other
     -       604  
Total Non-Controlling Interests
   $ 12,111     $ 10,958  
 
The listing above provides detail for only certain balance sheet line items presented on Winthrop Realty Trust's Consolidated Balance Sheets for the years ended December 31, 2009 and 2008 (the "Balance Sheet"). See page 1 of this supplement for all Balance Sheet line items.
 
7
 
WINTHROP REALTY TRUST
SCHEDULE OF CAPITALIZATION, DIVIDENDS AND LIQUIDITY
December 31, 2009
(in thousands, except per share data)
 
   
Carrying Value
  
Debt:
      
Mortgage loans payable
   $ 216,767  
Series B-1 Preferred Shares
     21,300  
Total Debt
     238,067  
         
Non-Controlling Redeemable Preferred Interest:
        
Series C Preferred Shares
     12,169  
         
Equity:
        
Common Shares (20,375,483 shares outstanding)
     217,089  
Non-controlling ownership interests
     12,111  
Total Equity
     229,200  
         
Total Capitalization
   $ 479,436  
 
Common Dividend Per Share
                     
December 31,
 2009
  
September 30,
 2009
  
June 30,
2009
    
March 31,
2009
  
                     
$ 0.1625     $ 0.25     $ 0.25     $ 0.25  
                             
 
Liquidity and Credit Facility
      
Cash and cash equivalents
   $ 66,493  
Securities carried at fair value
     52,394  
Available for sale securities, net
     203  
Available under line of credit
     35,000  
Total Liquidity and Credit Facility
   $ 154,090  
 

8
 
WINTHROP REALTY TRUST
NET OPERATING INCOME FROM CONSOLIDATED PROPERTIES
December 31, 2009
(in thousands, except per share data)
 
   
Three Months Ended
    
Years Ended
  
   
December 31, 2009
    
December 31, 2008
    
December 31, 2009
    
December 31, 2008
  
Rents and reimbursements
                        
Minimum rent
   $ 8,659     $ 8,635     $ 37,028     $ 37,050  
Deferred rents (straight-line)
     767       1,076       1,280       1,701  
Recovery income
     472       939       3,461       4,159  
Less:
                                
Above and below market rates
     (143 )     (85 )     (569 )     (392 )
Lease concessions and abatements
     (197 )     (89 )     (595 )     (430 )
Total rents and reimbursements
     9,558       10,476       40,605       42,088  
 
                                
Rental property expenses
                                
Operating expenses
     1,550       1,716       7,043       6,768  
Real estate taxes
     573       315       2,542       2,428  
Total rental property expenses
     2,123       2,031       9,585       9,196  
                                 
Net operating income (1)
                                
from consolidated properties
   $ 7,435     $ 8,445     $ 31,020     $ 32,892  
 
(1) See definition of non-GAAP measure of Net Operating Income on page 18 of the supplemental package.

9
 
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES - SELECTED PROPERTY DATA
December 31, 2009

Description and Location
  
Year Acquired
  
Trust’s Ownership
  
Rentable Square Feet
  
% Leased
  
2009
Average Occupancy
  
Major Tenants
(Lease /Options Exp)
  
Major Tenants’ Sq. Feet.
  
($000's)
Cost Less Depreciation
  
Ownership
of Land
 
($000's) Debt Balance
  
Debt Maturity &  Int Rate
                                             
Retail
                                            
                                             
Atlanta, GA
  
2004
  
100%
  
          61,000
  
100%
  
100%
  
The Kroger Co. (2016/2040)
  
61,000
  
 $4,044
  
Ground Lease
  
(1)
  
(1)
                                             
Denton, TX (3)
  
2004
  
100%
  
          48,000
  
100%
  
100%
  
The Kroger Co.
(2010)
  
48,000
  
             1,375
  
Land Estate
  
(1)
  
(1)
                                             
Greensboro, NC
  
2004
  
100%
  
          47,000
  
100%
  
100%
  
The Kroger Co. (2017/2040)
  
47,000
  
             3,314
  
Ground Lease
  
(1)
  
(1)
                                             
Knoxville, TN  (3)
  
2004
  
100%
  
          43,000
  
100%
  
100%
  
The Kroger Co.
(2010)
  
43,000
  
             1,852
  
Land Estate
  
(1)
  
(1)
                                             
Lafayette, LA (3)
  
2004
  
100%
  
          46,000
  
100%
  
100%
  
The Kroger Co.
(2010)
  
46,000
  
                    1
  
Ground Lease
  
(1)
  
(1)
                                             
Louisville, KY
  
2004
  
100%
  
          47,000
  
100%
  
100%
  
The Kroger Co. (2015/2040)
  
47,000
  
             2,377
  
Land Estate
  
(1)
  
(1)
                                             
Memphis, TN
  
2004
  
100%
  
          47,000
  
100%
  
100%
  
The Kroger Co. (2015/2040)
  
47,000
  
                664
  
Land Estate
  
(1)
  
(1)
                                             
Seabrook TX
  
2004
  
100%
  
          53,000
  
100%
  
100%
  
The Kroger Co. (2015/2040)
  
53,000
  
             1,217
  
Land Estate
  
(1)
  
(1)
                                             
Sherman, TX (3)
  
2004
  
100%
  
          46,000
  
100%
  
100%
  
The Kroger Co.
(2010)
  
46,000
  
                718
  
Land Estate
  
(1)
  
(1)
                                             
St. Louis, MO (3)
  
2004
  
100%
  
          46,000
  
100%
  
100%
  
The Kroger Co.
(2010)
  
46,000
  
                865
  
Land Estate
  
(1)
  
(1)
                                             
Subtotal Retail
          
        484,000
                  
           16,427
      
      23,761
  
(1)
 
(Continued on next page)
 
10
 
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES - SELECTED PROPERTY DATA (Continued)
December 31, 2009
 
Description and Location
  
Year Acquired
  
Trust’s Ownership
  
Rentable
Square Feet
  
% Leased
  
2009
Average Occupancy
  
Major Tenants (Lease /Options Exp)
  
Major
Tenants’
Sq. Feet.
  
($000's)
Cost Less Depreciation
  
Ownership
of Land
  
($000's) Debt Balance
  
Debt Maturity & Int Rate
                                             
Office
                                            
                                             
Amherst, NY (2)
  
2005
  
100%
  
200,000
  
100%
  
100%
  
Ingram Micro Systems (2013/2023)
  
200,000
  
$17,534
  
Fee
  
$16,526
  
10/2013
5.65%
                                             
Andover, MA (4)
  
2005
  
100%
  
93,000
  
100%
  
100%
  
PAETEC Comm.
(2022/2037)
  
93,000
  
4,808
  
Ground Lease
  
6,266
  
03/2011
6.6%
                                             
Chicago, IL
(Ontario / Marc Realty)
  
2005
  
80%
  
126,000
  
88%
  
90%
  
The Gettys Group
(2011/2016)
  
16,000
  
22,490
  
Fee
  
21,118
  
03/2016
5.75%
                       
River North Surgery
(2015/ n/a)
  
15,000
                
                                             
Chicago, IL
(River City / Marc Realty)
  
2007
  
60%
  
253,000
  
77%
  
72%
  
Bally Total Fitness
(2011/2021)
  
55,000
  
12,989
  
Fee
  
9,300
  
03/2010
6%
                       
MCI d/b/a Verizon
(2019/2023)
  
37,000
                
                                             
Houston, TX
  
2004
  
8%
  
614,000
  
100%
  
100%
  
Duke Energy (2018/2028)
  
614,000
  
61,604
  
Fee
  
63,869
  
04/2016
6.4%
                                             
Indianapolis, IN
(Circle Tower)
  
1974
  
100%
  
111,000
  
86%
  
87%
  
No Tenants
Over 10%
  
-
  
4,348
  
Fee
  
4,317
  
04/2015
5.82%
                                             
Lisle, IL
  
2006
  
100%
  
169,000
  
71%
  
78%
  
United Healthcare (2014/ n/a)
  
41,000
  
18,846
  
Fee
  
17,165
  
06/2016
6.26%
                       
IPSCO Enterprises
(2010/2020)
  
22,000
                
                                             
Lisle, IL
  
2006
  
100%
  
67,000
  
93%
  
96%
  
T Systems, Inc.
(2010/2015)
  
35,000
  
8,331
  
Fee
  
7,011
  
06/2016
6.26%
                       
ABM Janitorial MW
(2012/2014)
  
11,000
                
                       
Zenith Insurance
(2010/2013)
  
10,000
                
                                             
Lisle, IL
(Marc Realty)
  
2006
  
60%
  
54,000
  
100%
  
100%
  
Ryerson
(2018/2028)
  
54,000
  
3,757
  
Fee
  
5,600
  
03/2017
5.55%
                                             
Orlando, FL
  
2004
  
100%
  
256,000
  
100%
  
100%
  
Siemens Real Estate, Inc. (2017/2042)
  
256,000
  
15,075
  
Ground Lease
  
39,148
  
07/2017
6.4%
                                             
Plantation, FL
  
2004
  
100%
  
133,000
  
100%
  
100%
  
BellSouth
(2010/2035)
  
133,000
  
7,790
  
Land Estate
  
(1)
  
(1)
                                             
South Burlington, VT (4)
  
2005
  
100%
  
56,000
  
100%
  
100%
  
Fairpoint Comm.
(2014/2029)
  
56,000
  
2,790
  
Ground Lease
  
2,686
  
03/2011 6.6%
                                             
Subtotal - Office
          
2,132,000
                  
180,362
      
193,006
    
 
(Continued on next page)
 
11
 
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES - SELECTED PROPERTY DATA (Continued)
December 31, 2009
 
Description and Location
  
Year Acquired
  
Trust’s Ownership
  
Rentable Square Feet
  
% Leased
  
2009 Average Occupancy
  
Major Tenants (Lease /Options Exp)
  
Major Tenants’ Sq. Feet.
  
($000's)
Cost Less Depreciation
  
Ownership
of Land
  
($000's) Debt Balance
  
Debt Maturity &  Int Rate
                                             
Other
                                            
                                             
Warehouse
                                            
Jacksonville,
FL (4)
  
2004
  
100%
  
587,000
  
100%
  
55%
  
Football Fanatics
(2015/2024)
  
558,000
  
10,207
  
     Fee
  
(1)
  
(1)
                                             
Mixed Use
                                            
Churchill, PA
  
2004
  
100%
  
1,008,000
  
100%
  
100%
  
Viacom, Inc.
(2010/2040)
  
1,008,000
  
10,813
  
Ground Lease
  
(1)
  
(1)
                                             
Subtotal - Other
      
       1,595,000
                  
           21,020
      
 (1)
    
Total Consolidated Properties
  
       4,211,000
                  
 $217,809
      
 $ 216,767
    
 
(1)     Our retail properties and our properties located in Churchill, PA, Plantation, FL, and Jacksonville, FL collateralized $23,761,000 of mortgage debt at an interest rate of LIBOR + 1.75% which matures in June 2010.  We have a one-year extension option.
(2)     Represents 2 separate buildings.  The ground underlying the properties is leased to us by the local development authority pursuant to a ground lease which requires no payment.  Effective October 31, 2013, legal title to these properties will vest in us.
(3)     The tenant has sent notification that they will not be exercising their renewal option upon expiration of current lease term.
(4)     Reflects leases signed in January 2010.
 
12
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS – SELECTED PROPERTY DATA
Year Ended December 31, 2009
Description and Location
  
Year Acquired
  
Trust’s Ownership
  
Rentable Sq Feet
  
% Leased
  
2009
Average Occupancy
  
Major Tenants (Lease /Options Expirations)
  
Major Tenants’ Sq. Feet.
  
($000's)
Equity Investment Balance
  
Ownership
of Land
  
($000's) Debt Balance (1)
  
Debt Maturity &  Int Rate
                                             
Marc Realty Portfolio - Equity Investments
                                
                                 
8 South Michigan,
Chicago, IL
  
2005
  
50%
  
          174,000
  
95%
  
96%
  
No tenants over 10%
  
                        -
  
$6,859
  
Ground Lease
  
$4,113
  
08/2011
6.87%
                                             
11 East Adams,
Chicago, IL
  
2005
  
49%
  
           161,000
  
84%
  
84%
  
IL School of Health
(2015/2020)
  
              28,700
  
2,963
  
Fee
  
10,000
  
08/2011
Libor + 2%
                                             
29 East Madison,
Chicago, IL
  
2005
  
50%
  
         235,000
  
95%
  
89%
  
Computer Systems Institute
(2020/2030)
  
              25,000
  
7,750
  
Fee
  
11,734
  
05/2013
5.20%
                                             
30 North Michigan,
Chicago, IL
  
2005
  
50%
  
          221,000
  
92%
  
93%
  
No tenants over 10%
  
                        -
  
11,881
  
Fee
  
13,448
  
08/2014
5.99%
                                             
223 West Jackson,
Chicago, IL
  
2005
  
50%
  
          168,000
  
85%
  
91%
  
Intertrack Partners
(2010/2017)
  
              27,400
  
7,346
  
Fee
  
8,203
  
06/2012
6.92%
                                             
4415 West Harrison,
Hillside, IL
  
2005
  
50%
  
          192,000
  
77%
  
79%
  
North American Medical Mgmt
(2015/2020)
  
               21,200
  
5,986
  
Fee
  
5,126
  
12/2017
5.62%
                                             
2000-60 Algonquin,
Shaumburg, IL
  
2005
  
50%
  
           101,000
  
51%
  
55%
  
Landmark Merchant
(2010/2011)
  
               10,300
  
1,536
  
Fee
  
(2)
  
04/2010
Libor + 2%
                                             
1701 E. Woodfield,
Shaumburg, IL
  
2005
  
50%
  
          175,000
  
82%
  
85%
  
No tenants over 10%
  
                        -
  
1,582
  
Fee
  
10,489
  
05/2011
5.73%
                                             
2720 River Rd,
Des Plains, IL
  
2005
  
50%
  
          108,000
  
77%
  
80%
  
No tenants over 10%
  
                        -
  
4,075
  
Fee
  
2,720
  
10/2012
6.095%
                                             
3701 Algonquin,
Rolling Meadows IL
  
2005
  
50%
  
          193,000
  
76%
  
83%
  
ISACA
(2018/2024)
  
              23,400
  
2,827
  
Fee
  
10,527
  
04/2010
Libor + 2%
                       
Relational Funding
(2013/ n/a)
  
               19,900
                
                                             
2205-55 Enterprise,
Westchester, IL
  
2005
  
50%
  
          130,000
  
95%
  
91%
  
Consumer Portfolio
(2014/2019)
  
               18,900
  
3,094
  
Fee
  
(2)
  
04/2010
Libor + 2%
                                             
900-910 Skokie,
Northbrook, IL
  
2005
  
50%
  
           119,000
  
80%
  
78%
  
MIT Financial Group
(2016/ n/a)
  
               12,600
  
1,661
  
Fee
  
5,509
  
02/2011
Libor + 2%
                                             
Subtotal - Marc Realty Portfolio
      
 1,977,000
                  
           57,560
      
        94,969
    
 
(Continued on next page)
 
13
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS – SELECTED PROPERTY DATA (Continued)
Year Ended December 31, 2009

Description and Location
  
Year Acquired
  
Trust’s Ownership
  
Rentable Sq Feet
  
% Leased
  
2009
Average Occupancy
  
Major Tenants (Lease /Options Expirations)
  
Major Tenants’ Sq. Feet.
  
($000's)
Equity Investment Balance
  
Ownership
of Land
  
($000's) Debt Balance (1)
  
Debt Maturity &  Int Rate
                                 
Sealy Venture Properties  - Equity Investments
                                
                                 
Atlanta, GA  (3) (Newmarket)
  
2006
  
60%
  
            472,000
  
73%
  
81%
  
Original Mattress
(2020/2025)
  
              57,000
  
$3,189
  
Fee
  
$28,750
  
01/2012
5.7%
                                             
Atlanta, GA (4)
(Northwest Atlanta)
  
2008
  
68%
  
            470,000
  
78%
  
81%
  
Alere Health
(2011/ n/a)
  
              76,000
  
                       7,840
  
Fee
  
37,000
  
11/2016
6.12%
                       
West Asset Mgmnt
(2010 / n/a)
  
              54,000
                
                                             
Nashville, TN  (5)
(Airpark)
  
2007
  
50%
  
          1,155,000
  
86%
  
88%
  
No tenants over 10%
  
                        -
  
                        4,618
  
Fee
  
74,000
  
05/2012
5.77%
                                             
                                             
Subtotal - Sealy Venture Properties
  
  2,097,000
                  
           15,647
            
                                             
Total Equity Investment Properties
  
  4,074,000
                  
 $       73,202
            
 
(1) Debt balance shown represents 100% of the debt encumbering the properties.
(2)  Both the 2000-60 Algonquin and 2205-55 Enterprise Road Marc Realty properties are cross collateralized by a mortgage of $13,100,000  which is included in total Debt Balance.
(3) Equity investment in Sealy Newmarket  consists of six flex/office campus style properties
(4)  Equity investment in Sealy Northwest Atlanta consists of 12 flex/office properties
(5) Equity investmnet in Sealy Airpark consists of 13 light distribution and service center properties.
 
14
 
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES - OPERATING SUMMARY
Year Ended December 31, 2009
(in thousands, except for Number of Properties and Square Footage)
 
Description
  
% Owned
    
Number of
Properties
    
Square Footage
    
Rents and Reimburse-ments
    
Operating Expenses
    
Real Estate Taxes
    
Net Operating Income (1)
    
Interest Expense
    
Impair-ment
(2)
    
Depreciation & Amortization
    
(Income)Loss Attributable to Non-controlling Interest
    
WRT's share Net Income / (Loss) from Consolidated Properties (1)
  
                                                               
100% Owned Consolidated Properties
                                                              
 Retail
     100 %     10       484,000     $ 2,299     $ 3     $ -     $ 2,296     $ -     $ -     $ 258     $ -     $ 2,038  
 Office
     100 %     8       1,211,000       16,004       3,115       701       12,188       6,018       -       4,799       -       1,371  
 Other
     100 %     2       1,595,000       4,208       617       198       3,393       -       10,000       828       -       (7,435 )
              20       3,290,000       22,511       3,735       899       17,877       6,018       10,000       5,885       -       (4,026 )
Partially Owned Consolidated Properties
                                                               14,221                  
Chicago, IL (Ontario/Marc Realty)
     80 %     1       126,000       5,212       1,421       838       2,953       1,251               1,094       (122 )     486  
Chicago, IL
(River City/Marc Realty)
     60 %     1       253,000       4,204       1,543       696       1,965       588               864       (205 )     308  
Houston, TX
(Multiple LP's)
     8 %     1       614,000       7,860       13       -       7,847       4,203               2,791       (708 )     145  
Lisle, IL
(Marc Realty)
     60 %     1       54,000       818       331       109       378       328               145       37       (58 )
              4       921,000       18,094       3,308       1,643       13,143       6,370       -       4,894       (998 )     881  
KeyBank mortgage loan
 interest expense (3)
     -       -       -       -       -       -       1,387       -       -       -       (1,387 )
Total Consolidated Properties
       24       4,211,000     $ 40,605     $ 7,043     $ 2,542     $ 31,020     $ 13,775     $ 10,000     $ 10,779     $ (998 )   $ (4,532 )
Series B-1 Preferred interest expense (4)
                                               2,460                       -          
Other
                                                             429                       (19 )        
Total
                                                           $ 16,664                     $ (1,017 )        
 
(1) See definition of Net Operating Income and Net Income / (Loss) from Consolidated Properties on page 18 of the supplemental package.
(2) Represents impairment charge taken against carrying value of the Churchill, PA property.
(3) Represents interest expense on a mortgage loan made by KeyBank collateralized by our retail properties, our Churchill, PA, Orlando, FL, and Plantation, FL properties.
(4) Represents interest expense on our Series B-1 Preferred Shares treated as debt for GAAP purposes.
 
15
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS - OPERATING SUMMARY
Year Ended December 31, 2009
(in thousands, except for Number of Properties and Square Footage)

Venture
  
Number of Properties
  
Square Footage
  
Rents and Reimburse-ments
    
Operating Expenses
    
Real Estate Taxes
    
Net Operating Income (3)
    
Interest Expense
    
Other Income (Expense)
    
Depreciation & Amortization
    
Net Income / (Loss) from Equity Investments
    
WRT' S Share of Net Income / (Loss) from Equity Investments
  
Marc Realty Portfolio (1)
     12       1,977,000       20,179       9,279       2,847       8,053       2,284       (175 )     4,740       854       425  
                                                                                         
Sealy Venture Portfolio
     3       2,097,000       17,246       3,765       1,758       11,723       8,345       (157 )     7,110       (3,889 )     (2,204 )
                                                                                         
Total Equity Investment Properties
     15       4,074,000     $ 37,425     $ 13,044     $ 4,605     $ 19,776     $ 10,629     $ (332 )   $ 11,850     $ (3,035 )     (1,779 )
                                                                                         
Amortization of Marc Realty Portfolio basis differential (2)
                                                   (144 )
Impairment of Marc Realty Portfolio equity investment
                                                       (2,500 )
Lex-Win Concord
                                                                     (98,574 )
Lex-Win Acquisition
                                                                   (95 )
Equity in loss of equity investments
                                                                             $ (103,092 )
 
(1) Operations for the Marc Realty Portfolio are for the period from July 1, 2009 through December 31, 2009 which is the period during which the Trust accounted for these investments using the equity method.
(2)  This amount represents the aggregate difference between the Trust’s historical cost basis and the basis reflected at the equity investment level, which is typically amortized over the life of the related assets and liabilities.  The basis differentials are the result of other-than-temporary impairments at the investment level and a reallocation of equity at the venture level as a result of the restructuring.
(3) See definition of Net Operating Income on page 18 of the supplemental package.
 
16
 
WINTHROP REALTY TRUST
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES OF INCOME TO
NET LOSS ATTRIBUTABLE TO COMMON SHARES
(in thousands)
 
   
Three Months Ended 
December 31,
    
Years Ended
December 31,
  
   
2009
    
2008
    
2009
    
2008
  
                         
NOI from consolidated properties  (1), (4)
     7,435       8,445       31,020       32,892  
                                 
Less:
                                
Interest expense
     (3,377 )     (3,519 )     (13,775 )     (14,289 )
Depreciation and amortization
     (2,647 )     (2,942 )     (10,779 )     (11,766 )
Impairment loss on investments in real estate
     (10,000 )     (2,100 )     (10,000 )     (2,100 )
Income attributable to non-controlling interest
     (366 )     (219 )     (998 )     (483 )
WRT share of loss from consolidated properties (2), (4)
     (8,955 )     (335 )     (4,532 )     4,254  
                                 
Equity in loss of equity investments (3)
     (2,891 )     (53,112 )     (103,092 )     (69,310 )
                                 
Add:
                                
Interest and dividend income
     874       1,186       7,336       2,448  
Gain on sale of available for sale securities
     -       -       -       1,580  
Gain on sale of mortgage-backed securities
     -       -       -       454  
Gain on sale of securities carried at fair value
     2,142       -       5,416       -  
Gain on sale of other assets
     -       -       -       24  
Gain on early extinguishment of debt
     1,164       6,284       6,846       6,284  
Unrealized gain on securities carried at fair value
     3,852       24       17,862       24  
Interest income
     27       245       172       1,670  
State and local tax refunds
     54       -       -       -  
Other income
     -       499       -       499  
Income from discontinued operations
     566       1,767       476       1,819  
                                 
Less:
                                
Series B-1 Preferred interest expense
     (474 )     (1,000 )     (2,460 )     (5,931 )
Loss from preferred equity investment
     -       (4,163 )     (2,108 )     (1,645 )
Impairment loss on available for sale securities
     -       -       -       (207 )
Provision for loss on loan receivable
     -       (1,179 )     (2,152 )     (1,179 )
General and administrative
     (2,166 )     (1,768 )     (7,303 )     (6,887 )
State and local tax expense
     -       (95 )     (157 )     (330 )
Loss on sale of available for sale securities
     -       (449 )     -       -  
Unrealized loss on available for sale loans
     -       -       (203 )     -  
Interest expense  - other
     (68 )     (564 )     (429 )     (1,743 )
Non-controlling interest
     -       -       (19 )     -  
Income attributable to non-controlling redeemable
                                
Series C preferred interest
     (147 )     -       (147 )     -  
Net loss attributable to Common Shares
   $ (6,022 )   $ (52,660 )   $ (84,494 )   $ (68,176 )
 
(1) See detail on Page 9 of the supplemental package.
(2) See detail for the year ended December 31. 2009 on Page 15 of the supplemental package.
(3) See detail for the year ended December 31. 2009 on Page 16 of the supplemental package.
(4) See definitions for non-GAAP measures on page 18 of the supplemental package.
 
17
 
WINTHROP REALTY TRUST
DEFINITIONS
 
Funds From Operations (FFO):

FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”).  NAREIT defines FFO as net income or loss determined in accordance with Generally Accepted Accounting Principles (“GAAP”), excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.  FFO and FFO per diluted share are used by management, investors and industry analysts as supplemental measures of operating performance of equity REITs. FFO and FFO per diluted share should be evaluated along with GAAP net income and income per diluted share (the most directly comparable GAAP measures), as well as cash flow from operating activities, investing activities and financing activities, in evaluating the operating performance of equity REITs.  Management believes that FFO and FFO per diluted share are helpful to investors as supplemental performance measures because these measures exclude the effect of depreciation, amortization and gains or losses from sales of real estate, all of which are based on historical costs which implicitly assumes that the value of real estate diminishes predictably over time.  Since real estate values instead have historically risen or fallen with market conditions, these non-GAAP measures can facilitate comparisons of operating performance between periods and among other equity REITs. FFO does not represent cash generated from operating activities in accordance with GAAP and is not necessarily indicative of cash available to fund cash needs as disclosed in the Company’s Consolidated Statements of Cash Flows.  FFO should not be considered as an alternative to net income as an indicator of the Company’s operating performance or as an alternative to cash flows as a measure of liquidity.  In addition to FFO, the Company also discloses FFO before certain items that affect comparability.  Although this non-GAAP measure clearly differs from NAREIT’s definition of FFO, the Company believes it provides a meaningful presentation of operating performance.
 
Net Operating Income (NOI):

Net operating income is a non-GAAP measure equal to revenues from all rental property less operating expenses and real estate taxes. We believe NOI is a useful measure for evaluating operating performance of our real estate assets as well as those held by our unconsolidated equity investments. We believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of our liquidity or ability to make distributions.

Net Income / (Loss) from Consolidated Properties:
 
Net Income / (Loss) from Consolidated Properties is a non-GAAP measure equal to NOI less interest, depreciation, impairments and other corporate general administrative expenses related to consolidated properties less income attributable to non-controlling interests. We believe Net Income / (Loss) from Consolidated Properties is a useful measure for evaluating operating performance of our consolidated operating properties. Net Income / (Loss) from Consolidated Properties presented by us may not be comparable to Net Income / (Loss) from Consolidated Properties reported by other REITs that define it differently. We believe that in order to facilitate a clear understanding of our operating results, Net Income / (Loss) from Consolidated Properties should be examined in conjunction with net income as presented in our consolidated financial statements. Net Income / (Loss) from Consolidated Properties should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of our liquidity or ability to make distributions.

18
 
Investor Information       
   
    
    
Transfer Agent 
 
 Investor Relations
 
Computershare
Written Requests:
P.O. Box 43078
Providence, RI 02940
phone: 800.622.6757 (U.S., Canada and Puerto Rico)
phone: 781.575.4735 (outside U.S.)
 
Overnight Delivery:
250 Royall Street
Canton, MA 02021
 
Internet Inquiries :
Investor Centre™ website at www.computershare.com/investor
 
 
    
Beverly Bergman , VP of Investor Relations
Winthrop Realty Trust
Beverly Bergman
P.O. Box 9507
7 Bulfinch Place, Suite 500
Boston, MA 02114-9507
phone: 617.570.4614
fax: 617.570.4746
 
 
 
 
Research Coverage      
 
Analyst
Firm
Contact Information
     
David M. Fick, CPA
Stifel Nicolaus
(443) 224-1308
dfick@stifel.com
     
Joshua A. Barber
Stifel Nicolaus
(443) 224-1347
jabarber@stifel.com
     
Ross L. Smotrich
Barclays Capital
(212) 526-2306
ross.smotrich@barcap.com
     
Jeffrey S. Langbaum
Barclays Capital
(212) 526-0971
jeffrey.langbaum@barcap.com
 
 
19