0001193805-13-000883.txt : 20130503 0001193805-13-000883.hdr.sgml : 20130503 20130503170313 ACCESSION NUMBER: 0001193805-13-000883 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20130502 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20130503 DATE AS OF CHANGE: 20130503 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Winthrop Realty Trust CENTRAL INDEX KEY: 0000037008 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 346513657 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06249 FILM NUMBER: 13813513 BUSINESS ADDRESS: STREET 1: 7 BULFINCH PLACE STREET 2: SUITE 500 PO BOX 9507 CITY: BOSTON STATE: MA ZIP: 02114 BUSINESS PHONE: 6175704614 MAIL ADDRESS: STREET 1: 7 BULFINCH PLACE STREET 2: SUITE 500 PO BOX 9507 CITY: BOSTON STATE: MA ZIP: 02114 FORMER COMPANY: FORMER CONFORMED NAME: FIRST UNION REAL ESTATE EQUITY & MORTGAGE INVESTMENTS DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FIRST UNION REALTY DATE OF NAME CHANGE: 19691012 8-K 1 e610871_8k-wrt.htm Unassociated Document
 
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 8-K

Current Report Pursuant
to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported) May 2, 2013
 
WINTHROP REALTY TRUST
(Exact Name of Registrant as Specified in Its Charter)
 
  Ohio  
 
(State or Other Jurisdiction of Incorporation)
  
 
001-06249   34-6513657
(Commission File Number)   (I.R.S. Employer Identification No.)
     
7 Bulfinch Place, Suite 500, P.O. Box 9507, Boston, Massachusetts 02114
(Address of Principal Executive Offices)  (Zip Code)
     
 
(617) 570-4614
  
(Registrant's Telephone Number, Including Area Code)
 
n/a
(Former Name or Former Address, if Changed Since Last Report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions

o
Written communications pursuant to Rule 425 under the Securities Act (17 CFT|R 230.425)

o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
 
Item 2.02  Results of Operations and Financial Condition
 
On May 2, 2013, Winthrop Realty Trust (the “Trust”) issued a press release announcing its financial results for the three months ended March 31, 2013.  A copy of the release is furnished as Exhibit 99.1 to this Report on Form 8-K.
 
The information in this section of this Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 7.01. Regulation FD Disclosure.

On May 2, 2013, the Trust made available supplemental information, which the Trust refers to as the Supplemental Reporting Package, concerning the Trust’s operations and portfolio for the three months ended March 31, 2013.  A copy of the Supplemental Reporting Package is furnished herewith as Exhibit 99.2 and is available at the Trust’s website, www.winthropreit.com under the “Investor Relations” tab.

Also on May 2, 2013, the Trust’s management discussed the Trust’s financial results for the three months ended March 31, 2013 on a conference call with analysts and investors.  A replay of the conference call is available through June 2, 2013 by dialing (877) 660-6853; account #286, confirmation #411256.  Both a transcript of the conference call and an online replay of the conference call are also available on the Trust’s website at www.winthropreit.com under the “News and Events” tab.

The information in this section of this Report on Form 8-K and Exhibit 99.2 attached hereto shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

Item 8.01.  Other Events

On May 2, 2013, the Trust announced that its Board of Trustees has declared a regular quarterly dividend of $0.578125 per 9.25% Series D Cumulative Redeemable Preferred Share of Beneficial Interest which dividend is payable on July 1, 2013 to Series D Preferred Shareholders of record on June 20, 2013.

On May 2, 2013, the Trust announced that its Board of Trustees has declared a regular quarterly dividend of $0.1625 per common share which dividend is payable on July 15, 2013 to common shareholders of record on June 28, 2013.

Item 9.01  Financial Statements and Exhibits.

(c)           Exhibits

 
99.1
Press Release dated May 2, 2013
 
99.2
Supplemental Reporting Package for the three months ended March 31, 2013
 
 
 
 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized on this 3rd day of May, 2013.
 
 
WINTHROP REALTY TRUST
  
       
 
By:
/s/ Michael L. Ashner  
   
Michael L. Ashner
  
   
Chairman and Chief Executive Officer
  
       
 
 
 
 
 
Exhibit Index
 
99.1
Press Release dated May 2, 2013
 
99.2
Supplemental Reporting Package for the three months ended March 31, 2013

EX-99.1 2 e610871_ex99-1.htm Unassociated Document
WINTHROP REALTY TRUST ANNOUNCES RESULTS FOR
FIRST QUARTER 2013

Declares Second Quarter 2013 Cash Dividend


FOR IMMEDIATE RELEASE

Boston, Massachusetts – May 2, 2013 – Winthrop Realty Trust (NYSE:FUR), a leading real estate value investor,  today announced financial and operating results for the first quarter ended March 31, 2013.  All per share amounts are on a diluted basis.

Financial Results

Three Months Ended March 31, 2013

Net income applicable to common shares for the quarter ended March 31, 2013 was $11.0 million, or $0.33 per common share compared with net income of $7.3 million, or $0.22 per common share for the quarter ended March 31, 2012.

For the quarter ended March 31, 2013, Winthrop reported Funds from Operations (FFO) applicable to common shares of $15.9 million, or $0.48 per common share, compared with FFO of $14.0 million, or $0.42 per common share for the quarter ended March 31, 2012.

Carolyn Tiffany, Winthrop’s President commented, “We are pleased that this quarter’s reported NAV, earnings and FFO all reflect the positive impact of our opportunistic investment approach, which includes both new investments as well as dispositions.  Our Company’s present liquidity has it well positioned to take advantage of the investment opportunities that present themselves.”

Net Asset Value as of March 31, 2013 and Five Year Performance Table

Winthrop’s estimated range of net asset value per common share at March 31, 2013 is $12.94 to $15.31 as compared to $12.85 to $15.13 at December 31, 2012.  In addition, our quarterly supplement contains an investment performance table that presents the internal rate of return for each investment made and sold or otherwise liquidated during the last five years.  The pooled weighted internal rate of return on these investments is 32.5%.  Details regarding the methodology used to calculate the internal rate of return and the net asset value as well as financial results, properties and tenants can be accessed in the quarterly supplemental report at www.winthropreit.com in the Investor Relations section.

2013 First Quarter Activity and Subsequent Events

·  
Originated a $20.5 million participating mezzanine loan collateralized indirectly by a Class A office campus commonly referred to as Water’s Edge at Playa Vista which is located three miles from Los Angeles International Airport.  The loan, which is subordinate to an $80.3 million mortgage loan, bears interest at a rate of LIBOR plus 14.25% per annum, requires monthly payments of interest only at a rate of 8.25% per annum with the remaining accrued interest being added to principal and entitles Winthrop to a participation interest equal to 25% of net equity value or sales proceeds of the property or, alternatively, a 25% ownership interest in the property.  Subsequent to origination Winthrop sold at par a 50% pari passu participation interest in the loan.

·  
Received full repayment of $8.7 million on its mezzanine loan indirectly collateralized by the property at 127 West 25th Street, New York, New York.

·  
Sold for $9.0 million, a price equal to Winthrop’s cost, a 100% participation in the B-Note collateralized by the Disney Building located in Burbank, California.
 
 
 
 
 
·  
Received cash proceeds of approximately $4.4 million on an investment of $1.25 million from the sale of the subordinated interests related to collateralized debt obligation entities and the transfer of a collateral management agreement that were held in a 50/50 joint venture.

·  
Sold for $12.0 million our Andover, Massachusetts office property.

·  
Received full payment of $5.2 million on the loan collateralized by the property located at 180 North Michigan Avenue, Chicago, Illinois.
 
·  
Acquired control of, and an effective 89% equity interest in, the property owner of 1515 Market Street while retaining its $71.7 million loan secured by the property.  Subsequent to quarter end, obtained a new first mortgage loan from a third party in the original principal amount of $43.0 million which bears interest at 2.5% per annum, requires monthly payments of interest only and matures April 2016.  Winthrop received $38.5 million of loan proceeds from the financing which reduced Winthrop’s investment in the loan receivable to $21.1 million, which investment amount accrues interest at a rate of 19.6%.
 
·  
With respect to Winthrop’s 50/50 joint venture in Sullivan Center, increased the venture’s indirect participation in the property by 5% to 70%, which interest is subject to increase to 76% if the venture does not receive a $1.4 million fee from the borrower by November 2013.
 
·  
Reduced the recourse debt due to KeyBank with respect to the Queensridge Towers loan to $13.65 million at March 31, 2013 by applying approximately $10.1 million of loan proceeds received on the Queensridge Tower loan receivable from condominium sales.
 
·  
Modified and extended the Advisory Agreement with FUR Advisors LLC for a term of five years, which will now expire on December 31, 2017.

Supplemental Financial Information

Further details regarding financial results, properties and tenants can be accessed at www.winthropreit.com in the Investor Relations section.

Second Quarter 2013 Dividend Declarations

The Company’s Board of Trustees is declaring a dividend for the second quarter of 2013 of $0.1625 per Common Share payable on July 15, 2013 to common shareholders of record on June 28, 2013.

The Company’s Board of Trustees also declared a regular quarterly cash dividend of $0.578125 per Series D Preferred Share which is payable on July 1, 2013 to the holders of Series D Preferred Shares of record on June 20, 2013.

Conference Call Information

The Company will host a conference call to discuss its first quarter 2013 results today, Thursday, May 2, 2013 at 12:00 pm Eastern Time.  Interested parties may access the live call by dialing (877) 407-9205 or (201) 689-8054, or via the Internet at www.winthropreit.com within the News and Events section.  A replay of the call will be available through June 2, 2013 by dialing (877) 660-6853; account #286, confirmation #411256.  An online replay will also be available for one year.

About Winthrop Realty Trust

Winthrop Realty Trust, headquartered in Boston, Massachusetts, is a NYSE-listed real estate investment trust (REIT) focused on acquiring, owning, operating and investing in real property as well as real estate financial instruments including CMBS, Bonds, REIT Preferred and common stock. For more information please visit our web-site at www.winthropreit.com.
 
 
2
 
 
Forward-Looking Statements

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995.  The statements in this release state the Company’s and management's hopes, intentions, beliefs, expectations or projections of the future and are forward-looking statements for which the Company claims the protections of the safe harbor for forward-looking statements under the Private Securities Litigation Reform Act of 1995.  It is important to note that future events and the Company’s actual results could differ materially from those described in or contemplated by such forward-looking statements.  Factors that could cause actual results to differ materially from current expectations include, but are not limited to, (i) general economic conditions, (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or general downturn in their business, (iii) local real estate conditions, (iv) increases in interest rates, (v) increases in operating costs and real estate taxes, (vi) changes in accessibility of debt and equity capital markets and (vii) defaults by borrowers on loans.  Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company's filings with the Securities and Exchange Commission, copies of which may be obtained from the Company or the Securities and Exchange Commission.  The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the Company's most recent Annual Report on Form 10-K, as may be updated or supplemented in the Company's Form 10-Q filings, which discuss these and other factors that could adversely affect the Company's results.
 
 
3
 
 
Financial Results

Financial results for the three months ended March 31, 2013 and 2012 are as follows (in thousands except per share amounts):
 
   
Three Months Ended
March 31,
  
   
2013
    
2012
  
   
(Unaudited)
    
(Unaudited)
  
Revenue
            
   Rents and reimbursements
   $ 15,179     $ 11,793  
   Interest, dividends and discount accretion
     5,320       5,518  
      20,499       17,311  
Expenses
                
   Property operating
     4,930       4,331  
   Real estate taxes
     946       1,192  
   Depreciation and amortization
     5,174       3,537  
   Interest
     6,032       3,724  
   General and administrative
     847       883  
   Related party fees
     2,266       2,027  
   Transaction costs
     6       121  
   State and local taxes
     17       6  
      20,218       15,821  
Other income (loss)
                
   Equity in income of equity investments
     7,869       424  
   Earnings from preferred equity investments
     202       -  
   Realized gain (loss) on sale of securities carried at fair value
     (102 )     26  
   Unrealized gain on securities carried at fair value
     1,718       4,932  
   Unrealized gain on loan securities carried at fair value
     -       164  
   Interest income
     70       101  
      9,757       5,647  
                 
Income from continuing operations
     10,038       7,137  
                 
Discontinued operations
                
   Income from discontinued operations
     2,913       215  
                 
Consolidated net income
     12,951       7,352  
   Net loss attributable to non-controlling interest
     795       901  
Net income attributable to Winthrop Realty Trust
     13,746       8,253  
   Preferred dividend of Series D Preferred Shares
     (2,787 )     (925 )
   Amount allocated to restricted shares
     (2 )     -  
Net income attributable to Common Shares
   $ 10,957     $ 7,328  
                 
Per Common Share Data – Basic:
                
Income from continuing operations
   $ 0.24     $ 0.22  
Income from discontinued operations
     0.09       -  
Net income attributable to Winthrop Realty Trust
   $ 0.33     $ 0.22  
                 
Per Common Share Data – Diluted:
                
Income from continuing operations
   $ 0.24     $ 0.22  
Income from discontinued operations
     0.09        -  
Net income attributable to Winthrop Realty Trust
   $ 0.33     $ 0.22  
                 
Basic Weighted-Average Common Shares
     33,027       33,052  
Diluted Weighted-Average Common Shares
     33,080       33,052  
Comprehensive income
            
   Consolidated net income
   $ 12,951     $ 7,352  
   Change in unrealized loss on interest rate derivative
     (1 )     (32 )
   Consolidated comprehensive income
     12,950     $ 7,320  
                 
   Net loss attributable to non-controlling interest
     795       901  
   Other comprehensive income attributable to non-controlling interest
     -       -  
Comprehensive loss attributable to non-controlling interest
     795       901  
Comprehensive income attributable to Winthrop Realty Trust
   $ 13,745     $ 8,221  
 
 
4
 
 
Funds From Operations:

The following presents a reconciliation of net income to funds from operations for the three months ended March 31, 2013 and 2012 (in thousands, except per share amounts):

   
Three Months Ended
March 31,
  
   
2013
(unaudited)
    
2012
(unaudited)
  
Basic
            
             
Net income attributable to Winthrop Realty Trust
   $ 13,746     $ 8,253  
Real estate depreciation
     3,263       2,515  
Amortization of capitalized leasing costs
     1,977       1,204  
Real estate depreciation and amortization of unconsolidated interests
     2,623       3,662  
Gain on sale of real estate
     (2,775 )     -  
Loss on sale of equity investments
     110       46  
Less:  Non-controlling interest share of depreciation and amortization
     (243 )     (732 )
                 
Funds from operations attributable to the Trust
     18,701       14,948  
                 
Preferred dividend of Series D Preferred Shares
     (2,787 )     (925 )
Amount allocated to restricted shares
     (2 )     -  
Funds from operations applicable to Common Shares – Basic
   $ 15,912     $ 14,023  
                 
Weighted-average Common Shares
     33,027       33,052  
                 
Funds from operations per Common Share - Basic
   $ 0.48     $ 0.42  
                 
Diluted
                
                 
Funds from operations attributable to the Trust
     18,701       14,948  
                 
Preferred dividend of Series D Preferred Shares
     (2,787 )     (925 )
Amount allocated to restricted shares
     (2 )     -  
Funds from operations applicable to Common Shares – Diluted
   $ 15,912     $ 14,023  
                 
Basic weighted-average Common Shares
     33,027       33,052  
Stock options
     2       -  
Restricted shares
     51       -  
Diluted weighted-average Common Shares
     33,080       33,052  
                 
Funds from operations per Common Share – Diluted
   $ 0.48     $ 0.42  
 
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.  FFO and FFO per diluted share 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.  A reconciliation of net income to FFO is provided above.
 
 
5
 
 
Consolidated Balance Sheets:
(in thousands, except share data)

   
March 31,
    
December 31,
  
   
2013
    
2012
  
   
(Unaudited)
    
(Unaudited)
  
ASSETS
            
Investments in real estate, at cost
            
   Land
   $ 60,616     $ 43,252  
   Buildings and  improvements
     395,716       378,737  
      456,332       421,989  
   Less: accumulated depreciation
     (52,412 )     (51,553 )
   Investments in real estate, net
     403,920       370,436  
                 
   Cash and cash equivalents
     131,448       97,682  
   Restricted cash held in escrows
     15,821       13,250  
   Loans receivable, net
     130,212       211,250  
   Accounts receivable, net of allowances of $458 and $374, respectively
     4,902       3,882  
   Accrued rental income
     16,761       17,241  
   Securities carried at fair value
     12,220       19,694  
   Loan securities carried at fair value
     11       11  
   Preferred equity investments
     12,358       12,250  
   Equity investments
     134,224       134,859  
   Lease intangibles, net
     52,439       37,744  
   Deferred financing costs, net
     4,755       4,864  
      TOTAL ASSETS
   $ 919,071     $ 923,163  
                 
LIABILITIES
                
   Mortgage loans payable
     278,824       280,576  
   Senior notes payable
     86,250       86,250  
   Secured financings
     42,803       52,920  
   Notes payable
     1,660       1,676  
   Accounts payable and accrued liabilities
     20,006       21,056  
   Related party fees payable
     2,540       2,664  
   Dividends payable
     8,154       5,366  
   Deferred income
     1,472       1,136  
   Below market lease intangibles, net
     2,684       2,255  
      TOTAL LIABILITIES
     444,393       453,899  
                 
COMMITMENTS AND CONTINGENCIES
                
                 
EQUITY
                
Winthrop Realty Trust Shareholders’ Equity:
                
Series D Cumulative Redeemable Preferred Shares, $25 per share liquidation preference, 5,060,000 shares authorized and 4,820,000 shares outstanding at March 31, 2013 and December 31, 2012
       120,500         120,500  
Common Shares, $1 par, unlimited shares authorized; 33,128,853 and 33,018,711 issued and outstanding at March 31, 2013 and
   December 31, 2012, respectively
       33,029         33,019  
   Additional paid-in capital
     618,626       618,426  
   Accumulated distributions in excess of net income
     (311,793 )     (317,385 )
   Accumulated other comprehensive loss
     (51 )     (50 )
      Total Winthrop Realty Trust Shareholders’ Equity
     460,311       454,510  
   Non-controlling interests
     14,367       14,754  
      Total Equity
     474,678       469,264  
TOTAL LIABILITIES AND EQUITY
   $ 919,071     $ 923,163  
 
Further details regarding the Company’s results of operations, properties, joint ventures and tenants are available in the Company’s Form 10-Q for the quarter ended March 31, 2013 which will be filed with the Securities and Exchange Commission and will be available for download at the Company’s website www.winthropreit.com or at the Securities and Exchange Commission website www.sec.gov.
 
# # #

Contact Information:

AT THE COMPANY

John A. Garilli
Chief Financial Officer
(617) 570-4614
 
6
 EX-99.2 3 e610871_ex99-2.htm Unassociated Document



 




Winthrop Realty Trust
Supplemental Operating and Financial Data
For the Period Ended March 31, 2013
 
 
 
 
 
WINTHROP REALTY TRUST
SUPPLEMENTAL REPORTING PACKAGE

Table of Contents
 
Consolidated Balance Sheets
1
Consolidated Statements of Operations and Comprehensive Income
2
Funds from Operations
5
Estimated Net Asset Value
7
Performance Table
12
Consolidated Statements of Cash Flows
13
Selected Balance Sheet Account Detail
15
Schedule of Capitalization, Dividends and Liquidity
16
Selected Investment Data
17
Schedule of Securities Carried at Fair Value
20
Schedule of Loan Assets
21
Net Operating Income from Consolidated Properties
23
Schedule of Interest, Dividends and Discount Accretion
24
Consolidated Properties – Selected Property Data
25
Equity Investments – Selected Property Data
27
Consolidated Properties – Operating Summary
30
Equity Investments – Operating Summary
31
Consolidated Debt Summary
32
Equity Investments Debt Summary
33
Lease Expiration Summary
35
Reconciliation of Non-GAAP financial measures of income to net income attributable to Common Shares
36
Supplemental Definitions
37
Investor Information
39


Forward-Looking Statements - This supplemental reporting 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’s (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 share and per share data, Unaudited)
 
   
March 31,
    
December 31
    
September 30,
    
June 30,
    
March 31,
  
   
2013
    
2012
    
2012
    
2012
    
2012
  
ASSETS
                              
Investments in real estate, at cost
                              
   Land
   $ 60,616     $ 43,252     $ 37,177     $ 39,575     $ 36,495  
   Buildings and improvements
     395,716       378,737       344,289       350,243       328,556  
      456,332       421,989       381,466       389,818       365,051  
   Less: accumulated depreciation
     (52,412 )     (51,553 )     (48,618 )     (49,818 )     (47,071 )
   Investments in real estate, net
     403,920       370,436       332,848       340,000       317,980  
                                         
   Cash and cash equivalents
     131,448       97,682       159,251       43,959       79,526  
   Restricted cash held in escrows
     15,821       13,250       15,273       10,678       8,549  
   Loans receivable, net
     130,212       211,250       138,001       123,872       116,399  
Accounts receivable, net of allowances of $458, $374,
                                        
$513, $397 and $512, respectively
     4,902       7,353       4,910       5,986       5,920  
Accrued rental income
     16,761       13,770       13,467       13,281       12,251  
   Securities carried at fair value
     12,220       19,694       37,191       34,079       33,700  
   Loan securities carried at fair value
     11       11       5,756       5,385       5,473  
   Preferred equity investments
     12,358       12,250       5,500       5,500       1,500  
   Equity investments
     134,224       134,859       115,299       146,221       152,148  
   Lease intangibles, net
     52,439       37,744       34,883       34,678       35,644  
   Deferred financing costs, net
     4,755       4,864       4,558       1,081       1,088  
      TOTAL ASSETS
   $ 919,071     $ 923,163     $ 866,937     $ 764,720     $ 770,178  
                                         
LIABILITIES
                                        
   Mortgage loans payable
   $ 278,824     $ 280,576     $ 238,097     $ 229,891     $ 230,257  
Senior notes payable
     86,250       86,250       86,250       -       -  
Secured Financings
     42,803       52,920       29,150       29,150       29,150  
Notes payable
     1,660       1,676       -       -       -  
Revolving line of credit
     -       -       -       -       -  
   Accounts payable and accrued liabilities
     22,546       23,720       19,724       16,696       14,672  
   Dividends payable
     8,154       5,366       8,161       5,373       5,371  
   Deferred income
     1,472       1,136       758       1,010       464  
   Below market lease intangibles, net
     2,684       2,255       2,423       2,602       2,782  
      TOTAL LIABILITIES
     444,393       453,899       384,563       284,722       282,696  
                                         
COMMITMENTS AND CONTINGENCIES
                                        
                                         
EQUITY
                                        
Winthrop Realty Trust Shareholders’ Equity:
                                        
Series D Cumulative Redeemable Preferred Shares
                                        
$25 per share liquidation preference, 5,060,000 shares authorized and 4,820,000 shares outstanding at Mar 31, 2013 Dec 31, Sept 30, June 30, and Mar 31, 2012.
     120,500       120,500       120,500       120,500       120,500  
Common Shares, $1 par, unlimited shares authorized;
                                        
33,128,853, 33,018,711, 33,077,047, 33,066,280, and 33,053,502  issued and outstanding at Mar 31, 2013, Dec 31, Sept 30, June 30, and  Mar 31, 2012, respectively
     33,029       33,019       33,077       33,066       33,053  
   Additional paid-in capital
     618,626       618,426       617,837       617,862       623,284  
   Accumulated distributions in excess of net income
     (311,793 )     (317,385 )     (307,144 )     (314,091 )     (309,289 )
   Accumulated other comprehensive loss
     (51 )     (50 )     (165 )     (149 )     (124 )
        Total Winthrop Realty Trust Shareholders’ Equity
     460,311       454,510       464,105       457,188       467,424  
   Non-controlling interests
     14,367       14,754       18,269       22,810       20,058  
        Total Equity
     474,678       469,264       482,374       479,998       487,482  
     TOTAL LIABILITIES AND EQUITY
   $ 919,071     $ 923,163     $ 866,937     $ 764,720     $ 770,178  
 
 
1
 
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
 
   
Three Months Ended
  
      March 31,  
   
2013
    
2012
  
Revenue
            
   Rents and reimbursements
   $ 15,179     $ 11,793  
   Interest, dividends and discount accretion
     5,320       5,518  
      20,499       17,311  
Expenses
                
   Property operating
     4,930       4,331  
   Real estate taxes
     946       1,192  
   Depreciation and amortization
     5,174       3,537  
   Interest
     6,032       3,724  
   General and administrative
     847       883  
   Related party fees
     2,266       2,027  
   Transaction costs
     6       121  
   State and local taxes
     17       6  
      20,218       15,821  
Other income (loss)
                
   Equity in income of equity investments
     7,869       424  
   Earnings from preferred equity investments
     202       -  
   Realized gain (loss) on sale of securities carried at fair value
     (102 )     26  
   Unrealized gain on securities carried at fair value
     1,718       4,932  
   Unrealized gain on loan securities carried at fair value
     -       164  
   Interest income
     70       101  
      9,757       5,647  
Income from continuing operations
     10,038       7,137  
Discontinued operations
                
   Income from discontinued operations
     2,913       215  
Consolidated net income
     12,951       7,352  
  Net loss attributable to non-controlling interest
     795       901  
Net income attributable to Winthrop Realty Trust
     13,746       8,253  
   Preferred dividend of Series D Preferred Shares
     (2,787 )     (925 )
Amount allocated to restricted shares
     (2 )     -  
Net income attributable to Common Shares
   $ 10,957     $ 7,328  
Per Common Share data - Basic
                
Income from continuing operations
   $ 0.24     $ 0.22  
Income from discontinued operations
     0.09       -  
Net income attributable to Winthrop Realty Trust
   $ 0.33     $ 0.22  
Per Common Share data - Diluted
                
Income from continuing operations
   $ 0.24     $ 0.22  
Income from discontinued operations
     0.09       -  
Net income attributable to Winthrop Realty Trust
   $ 0.33     $ 0.22  
                 
Basic Weighted-Average Common Shares
     33,027       33,052  
Diluted Weighted-Average Common Shares
     33,080       33,052  
Comprehensive income
                
   Consolidated net income
   $ 12,951     $ 7,352  
   Change in unrealized loss on interest rate derivative
     (1 )     (32 )
   Consolidated comprehensive income
     12,950       7,320  
                 
   Net loss attributable to non-controlling interest
     795       901  
Comprehensive loss attributable to non-controlling interest
     795       901  
Comprehensive income attributable to Winthrop Realty Trust
   $ 13,745     $ 8,221  
 
 
2
 
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share data, continued)
(Unaudited)
 
   
Three Months Ended
  
   
March 31,
    
December 31,
    
September 30,
    
June 30,
    
March 31,
  
   
2013
    
2012
    
2012
    
2012
    
2012
  
Revenue
                              
Rents and reimbursements
   $ 15,179     $ 12,869     $ 13,049     $ 12,524     $ 11,793  
Interest, dividends and discount accretion
     5,320       6,105       3,722       5,778       5,518  
      20,499       18,974       16,771       18,302       17,311  
Expenses
                                        
Property operating
     4,930       4,120       3,615       3,550       4,331  
Real estate taxes
     946       1,250       1,235       956       1,192  
Depreciation and amortization
     5,174       4,695       4,743       4,294       3,537  
Interest
     6,032       6,056       4,430       3,447       3,724  
Impairment loss on investment in real estate
     -       2,562       -       -       -  
General and administrative
     3,113       3,412       3,098       3,081       2,910  
Transaction costs
     6       87       30       183       121  
State and local taxes
     17       21       65       142       6  
      20,218       22,203       17,216       15,653       15,821  
Other income (loss)
                                        
Equity in income (loss) of equity investments
     7,869       792       12,809       818       424  
Earnings (loss) from preferred equity investments
     202       -       -       -       -  
Realized gain (loss) on sale of securities carried at fair value
     (102 )     -       -       15       26  
Unrealized gain (loss) on securities carried at fair value
     1,718       (338 )     3,113       (791 )     4,932  
(Loss)Gain on extinguishment of debt, net
     -       (121 )     -       -       -  
Realized gain on loan securities carried at fair value
     -       614       -       -       -  
Unrealized gain (loss) on loan securities carried at fair value
     -       -       371       (88 )     164  
Interest and other income
     70       266       242       89       101  
      9,757       1,213       16,535       43       5,647  
                                         
Income  (loss) from continuing operations
     10,038       (2,016 )     16,090       2,692       7,137  
                                         
Discontinued operations
                                        
Income (loss) from discontinued operations
     2,913       116       (43 )     193       215  
                                         
Consolidated net income (loss)
     12,951       (1,900 )     16,047       2,885       7,352  
(Income) loss attributable to non-controlling interest
     795       (188 )     (939 )     473       901  
Net income (loss) attributable to Winthrop Realty Trust
     13,746       (2,088 )     15,108       3,358       8,253  
Preferred dividend of Series D Preferred Shares
     (2,787 )     (2,787 )     (2,786 )     (2,787 )     (925 )
Amount allocated to restricted shares
     (2 )     -       -       -       -  
Net income (loss) attributable to Common Shares
   $ 10,957     $ (4,875 )   $ 12,322     $ 571     $ 7,328  
 
 
3
 
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)

 
Three Months Ended
  
   
March 31,
    
December 31,
    
September 30,
    
June 30,
    
March 31,
  
   
2013
    
2012
    
2012
    
2012
    
2012
  
Per Common Share data - Basic
                              
Income (loss)  from continuing operations
   $ 0.24     $ (0.16 )   $ 0.38     $ 0.02     $ 0.22  
Income (loss) from discontinued operations
     0.09       0.01       (0.01 )     -       -  
Net income (loss) attributable to
     Winthrop Realty Trust
   $ 0.33     $ (0.15 )   $ 0.37     $ 0.02     $ 0.22  
                                         
Per Common Share data - Diluted
                                        
Income (loss)  from continuing operations
   $ 0.24     $ (0.16 )   $ 0.38     $ 0.02     $ 0.22  
Income (loss) from discontinued operations
     0.09       0.01       (0.01 )     -       -  
Net income (loss) attributable to
     Winthrop Realty Trust
   $ 0.33     $ (0.15 )   $ 0.37     $ 0.02     $ 0.22  
                                         
Basic Weighted-Average
    Common Shares
     33,027       33,056       33,075       33,064       33,052  
Diluted Weighted-Average
     Common Shares
     33,080       33,056       33,076       33,064       33,052  
                                         
Comprehensive income (loss)
                                        
   Consolidated net income (loss)
   $ 12,951     $ (1,900 )   $ 16,047     $ 2,885     $ 7,352  
   Change in unrealized gain (loss) on interest rate
      derivative
     (1 )     115       (16 )     (25 )     (32 )
Comprehensive income (loss)
   $ 12,950     $ (1,785 )   $ 16,031     $ 2,860     $ 7,320  
 
 
4
 
 
WINTHROP REALTY TRUST
FUNDS FROM OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
The following presents a reconciliation of net income to funds from operations for the three months ended March 31, 2013 and 2012:
 
   
Three Months Ended
  
      March 31,  
   
2013
    
2012
  
Basic
            
Net income attributable to Winthrop Realty Trust
   $ 13,746     $ 8,253  
Real estate depreciation
     3,263       2,515  
Amortization of capitalized leasing costs
     1,977       1,204  
Trust's share of real estate depreciation and amortization of unconsolidated interests
     2,623       3,662  
Gain on sale of real estate
     (2,775 )     -  
Loss on sale of equity investments
     110       46  
Less:  Non-controlling interest share of depreciation and amortization
     (243 )     (732 )
Funds from operations attributable to the Trust
     18,701       14,948  
Preferred dividend of Series D Preferred Shares
     (2,787 )     (925 )
Amount allocated to restricted shares
     (2 )     -  
FFO applicable to Common Shares - Basic
   $ 15,912     $ 14,023  
Weighted-average Common Shares
     33,027       33,052  
FFO Per Common Share - Basic
   $ 0.48     $ 0.42  
                 
Diluted
                
Funds from operations attributable to the Trust
   $ 18,701     $ 14,948  
Preferred dividend of Series D Preferred Shares
     (2,787 )     (925 )
Amount allocated to restricted shares
     (2 )     -  
FFO applicable to Common Shares
   $ 15,912     $ 14,023  
                 
Weighted-average Common Shares
     33,027       33,052  
Stock options
     2       -  
Restricted shares
     51       -  
Diluted weighted-average Common Shares
     33,080       33,052  
FFO Per Common Share - Diluted
   $ 0.48     $ 0.42  
 
 
5
 
 
WINTHROP REALTY TRUST
FUNDS FROM OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
The following presents a reconciliation of net income to funds from operations for the each of the last five quarterly periods:

   
Three Months Ended
  
   
March 31,
    
December 31,
    
September 30,
    
June 30,
    
March 31,
  
   
2013
    
2012
    
2012
    
2012
    
2012
  
Basic
                              
Net income (loss) attributable to
    Winthrop Realty Trust
   $ 13,746     $ (2,088 )   $ 15,108     $ 3,358     $ 8,253  
Real estate depreciation
     3,263       3,116       2,903       2,747       2,515  
Amortization of capitalized leasing costs
     1,977       1,679       2,169       1,732       1,204  
(Gain) loss on sale of real estate
     (2,775 )     -       (945 )     -       -  
Gain on sale of equity investments
     110       73       (165 )     (152 )     46  
Real estate depreciation and amortization of
                                        
unconsolidated interests
     2,623       2,860       2,976       3,992       3,662  
Impairment loss on investments in real estate
     -       2,562       698       -       -  
Less:  Non-controlling interest share
                                        
of depreciation and amortization
     (243 )     (686 )     (699 )     (713 )     (732 )
Funds from operations
     18,701       7,516       22,045       10,964       14,948  
Preferred dividend of Series D Preferred Shares
     (2,787 )     (2,787 )     (2,786 )     (2,787 )     (925 )
Amount allocated to restricted shares
     (2 )     -       -       -       -  
FFO applicable to Common Shares - Basic
   $ 15,912     $ 4,729     $ 19,259     $ 8,177     $ 14,023  
Weighted-average Common Shares
     33,037       33,056       33,075       33,064       33,052  
FFO Per Common Share - Basic
   $ 0.48     $ 0.14     $ 0.58     $ 0.25     $ 0.42  
                                         
Diluted
                                        
Funds from operations
   $ 18,701     $ 7,516     $ 22,045     $ 10,964     $ 14,948  
Preferred dividend of Series D Preferred Shares
     (2,787 )     (2,787 )     (2,786 )     (2,787 )     (925 )
Amount allocated to restricted shares
     (2 )      -       -       -       -  
FFO applicable to Common Shares
   $ 15,912     $ 4,729     $ 19,259     $ 8,177     $ 14,023  
                                         
Weighted-average Common Shares
     33,027       33,056       33,075       33,064       33,052  
Stock options
     2       -       1       -       -  
Restricted shares
     51       -       -       -       -  
Diluted weighted-average Common Shares
     33,080       33,056       33,076       33,064       33,052  
FFO Per Common Share - Diluted
   $ 0.48     $ 0.14     $ 0.58     $ 0.25     $ 0.42  
 
 
6
 
 
WINTHROP REALTY TRUST
ESTIMATED NET ASSET VALUE
(In thousands, except per share data) (Unaudited)
See Notes on Pages 10 and 11
Cash, accounts payable and dividends payable:
  
Trust
O wnership
    
Carrying
Amount
    
Matched Debt
    
Estimated NAV Range
  
   
Cash and cash equivalents and restricted cash
     100 %   $ 147,269     $ -     $ 147,269  
to
   $ 147,269  
Accounts payable and dividends payable
     100 %     30,700       -       (30,700 )
to
     (30,700 )
Subtotal - Corporate Segment Estimated Net Asset Value Range
                   116,569  
to
     116,569  
 
         
Fair Value
                      
   
Trust
    
Carrying
                      
REIT Securities:
  
O wnership
    
Amount
    
Matched Debt
    
Estimated NAV Range
  
   
REIT Common shares
     100 %   $ 12,220     $ -     $ 12,220  
to
   $ 12,220  
REIT Preferred shares
     100 %     -       -       -  
to
     -  
Subtotal - REIT Securities Segment Estimated Net Asset Value Range
               12,220  
to
     12,220  
 
                                     
         
Par Value
                          
   
Trust
    
Plus Accrued
                          
Loans:
  
O wnership
    
Interest
    
Matched Debt
    
Estimated NAV Range
      
Loan Assets, Loan Securities & Loan Equity
                                    
Investments, with Expected Repayment
                                    
WBCMT Series 2007 T ranche L - CMBS
     100 %   $ 1,130     $ -     $ -  
to
   $ 1,130   [1 ]
Mentor Building - Whole Loan
     100 %     2,512       -       2,512  
to
     2,512   [1 ]
MetroT ech Brooklyn -Whole Loan
     33 %     40,000       -       13,200  
to
     13,200   [1 ]
Hotel Wales - Whole Loan
     100 %     20,101       14,000       6,101  
to
     6,101   [1 ]
Legacy Orchard - Corporate Loan
     100 %     9,750       -       9,750  
to
     9,750   [1 ]
Rennaisance - Mezzanine Loan
     100 %     3,000       -       3,000  
to
     3,000   [1 ]
San Marbeya - Whole Loan
     100 %     29,903       15,150       14,753  
to
     14,753   [1 ]
Rockwell - Mezzanine Loan
     100 %     1,503       -       180  
to
     1,503   [1 ]
500-512 Seventh Ave - B Note
     100 %     11,123       -       11,123  
to
     11,123   [1 ]
Wellington T ower - Mezzanine Loan
     100 %     3,515       -       3,515  
to
     3,515   [1 ]
Churchill-Whole Loan
     100 %     687       -       -  
to
     687   [1 ]
4545 East Shea Blvd-Whole Loan
     100 %     2,273       -       2,273  
to
     2,273   [1 ]
Pinnacle II
     100 %     5,138       -       5,138  
to
     5,138   [1 ]
T he Shops at Wailea
     100 %     7,698       -       7,698  
to
     7,698   [1 ]
Poipu Shopping Village
     100 %     2,859       -       2,859  
to
     2,859   [1 ]
Queensridge
     100 %     28,976       13,653       15,323  
to
     15,323   [1 ]
Playa Vista
     100 %     10,323               10,323  
to
     10,323      
   
T otal Estimated Value of Loans with Expected Repayment
                       107,748  
to
     110,888      
 
         
Par Value
                          
   
Trust
    
Plus Accrued
                          
   
O wnership
    
Interest
    
Matched Debt
    
Estimated NAV Range
      
Loan Assets, Loan Securities & Loan Equity
                                
Investments, with Potential Equity Participation
                                    
   
Stamford Office - Mezzanine
     20 %     47,077       -       9,415  
to
     9,415   [2 ]
   
T otal Estimated Value of Loans with Potential Equity
                       9,415  
to
     9,415      
   
Debt Platforms
                                              
Conord Debt Holdings/CDH CDO
     67%/49 %     N/A       N/A       12,000  
to
     15,000   [3 ]
RE CDO
     50 %     N/A       N/A       500  
to
     1,000   [4 ]
T otal Estimated Value of Debt Platforms
                       12,500  
to
     16,000      
Subtotal - Loan Segment Estimated Net Asset Value Range
                       129,663  
to
     136,303      
 
Management’s estimate of net asset value (“NAV”) on pages 7-9 is based on in place assets and liabilities as of March 31, 2013. No adjustments have been made for transaction costs that would be incurred if assets were sold including any prepayment penalty associated with the Trust’s debt. There have been no adjustments made to reflect acquisitions, dispositions or loan repayments subsequent to March 31, 2013.  Although management believes the values presented reflect current market conditions, the ultimate amount realized on any asset will be based on the timing of such disposition and then market conditions.  There can be no assurance that the ultimate realized value upon disposition of an asset will be within the range provided.  (Continued on next page)
 
 
7
 
 
WINTHROP REALTY TRUST
ESTIMATED NET ASSET VALUE Continued
(In thousands, except per share data) (Unaudited)
See Notes on Pages 10 and 11
 
Description
  
Trust
Owner-
ship
  
Type
  
Square
Feet/ Units		    
Three Mos
Ended
March 31,
2013 NOI Annualized		    
Adjust-
ments
          
Adjusted
NOI [17]
       Range of Capitalization Rates    
Estimated Range of
Property Value
    
Matched
Debt
Balance
    
Estimated NAV Range
        
Operating Properties
                                                                                              
Deer Valley, AZ
     100 %
Office
     82,000     $ 1,526     $ 134       [5 ]   $ 1,660       8.74 %  
to
   8.30 %   $ 19,000  
to
   $ 20,000     $ -     $ 19,000  
to
  $ 20,000        
Englewood, CO
                                                                                                                      
(Crossroads I)
     100 %
Office
     118,000       757       343       [5 ]     1,100       8.00 %  
to
   7.00 %     13,750  
to
     15,714       -       13,750  
to
     15,714        
Englewood, CO
                                                                                                                      
(Crossroads II)
     100 %
Office
     118,000       409       542       [5 ]     951       8.00 %  
to
   7.00 %     11,888  
to
     13,586       -       11,888  
to
     13,586        
Meriden, CT
                                                                                                                      
(Newbury Apartments)
     100 %
Multi-Family
  
180 Units
       1,404                       1,404       5.40 %  
to
   5.10 %     26,000  
to
     27,529       21,000       5,000  
to
     6,529        
Atlanta, GA
     100 %
Retail
     61,000       259                       259       13.00 %  
to
   12.00 %     1,992  
to
     2,158       -       1,992  
to
     2,158        
Denton, TX
     100 %
Retail
     46,000       220                       220       12.75 %  
to
   11.50 %     1,725  
to
     1,913       -       1,725  
to
     1,913        
Greensboro, NC
     100 %
Retail
     46,000       220                       220       9.00 %  
to
   8.00 %     2,444  
to
     2,750       -       2,444  
to
     2,750        
Louisville , KY
     100 %
Retail
     47,000       214                       214       11.00 %  
to
   10.00 %     1,945  
to
     2,140       -       1,945  
to
     2,140        
Seabrook, TX
     100 %
Retail
     52,000       230                       230       9.00 %  
to
   8.00 %     2,556  
to
     2,875       -       2,556  
to
     2,875        
Amherst, NY
     100 %
Office
     200,000       2,411       (603 )     [13 ]     1,808       8.00 %  
to
   7.00 %     18,900  
to
     22,129       15,103       3,797  
to
     7,026        
Chicago, IL
                                                                                                                      
(One East Erie)
     100 %
Office
     126,000       2,920                       2,920       7.50 %  
to
   6.50 %     38,933  
to
     44,923       20,112       18,821  
to
     24,811        
Chicago, IL
                                                                                                                      
(River City )
     60 %
Office
     253,000       1,416                       1,416       8.00 %  
to
   7.00 %     17,700  
to
     20,229       8,700       5,400  
to
     6,917        
Houston, TX
                                                                                                                      
(Westheimer)
     31 %
Office
     614,000       5,611       (500 )     [7 ]     5,111       7.00 %  
to
   6.00 %     73,014  
to
     85,183       50,896       6,857  
to
     10,629        
Lisle, IL
                                                                                                                      
(550 Corporetum)
     100 %
Office
     169,000       1,198                       1,198       9.50 %  
to
   8.50 %     12,611  
to
     14,094       5,753       6,858  
to
     8,341        
Lisle, IL
                                                                                                                      
(Arboretum)
     100 %
Office
     67,000       (457 )     1,062       [8 ]     605       11.00 %  
to
   9.00 %     3,500  
to
     4,722       -       3,500  
to
     4,722        
Lisle, IL
                                                                                                                      
(1050 Corporetum)
     60 %
Office
     54,000       425                       425       9.00 %  
to
   8.00 %     4,722  
to
     5,313       5,524       -  
to
     -        
New York, NY
  
var
  
Office /Retail
     105,000       2,294       3,559       [9 ]     5,853       6.00 %  
to
   5.50 %     97,550  
to
     106,418       51,982       24,856  
to
     27,960     [9 ]
Orlando, FL
     100 %
Office
     257,000       3,313                       3,313       8.50 %  
to
   7.50 %     38,976  
to
     44,173       37,426       1,550  
to
     6,747        
Plantation, FL
     100 %
Office
     120,000       1,447                       1,447       8.00 %  
to
   7.00 %     18,088  
to
     20,671       10,777       7,311  
to
     9,894        
South Burlington, VT
     100 %
Office
     54,000       241       (50 )     [6 ]     191       11.00 %  
to
   9.00 %     1,736  
to
     2,122       -       1,736  
to
     2,122        
Jacksonville, FL
     100 %
Warehouse
     580,000       847                       847       10.00 %  
to
   8.00 %     8,470  
to
     10,588       -       8,470  
to
     10,588        
Churchill, PA
                                                                                                                      
(Westinghouse )
     100 %
Mixed Use
     52,000       711                       711       12.00 %  
to
   9.00 %     5,925  
to
     7,900       -       5,925  
to
     7,667        
Memphis, TN
                                                                                                                      
(Waterford Apartments)
     100 %
Multi-Family
  
320 Units
       1,472                       1,472       6.25 %  
to
   6.00 %     23,552  
to
     24,533       13,337       10,215  
to
     11,196        
Cerritos
     100 %
Office
     187,105       1,426       574       [8 ]     2,000       8.00 %  
to
   7.00 %     24,220  
to
     27,791       23,000       1,220  
to
     2,396        
Lake Brandt
     100 %
Multi-Family
  
284 Units
       1,001                       1,001       6.50 %  
to
   6.25 %     15,400  
to
     16,016       13,600       1,800  
to
     2,416        
1515 Market Street
     89 %
Mixed Use
     514,000       4,722                       4,722       7.50 %  
to
   7.00 %     62,960  
to
     67,457       [10 ]     62,960  
to
     67,457     [10 ]
 
Management’s estimate of net asset value (“NAV”) on pages 7-9 is based on in place assets and liabilities as of March 31, 2013. No adjustments have been made for transaction costs that would be incurred if assets were sold including any prepayment penalty associated with the Trust’s debt. There have been no adjustments made to reflect acquisitions, dispositions or loan repayments subsequent to March 31, 2013.  Although management believes the values presented reflect current market conditions, the ultimate amount realized on any asset will be based on the timing of such disposition and then market conditions.  There can be no assurance that the ultimate realized value upon disposition of an asset will be within the range provided.
 
 
8
 
WINTHROP REALTY TRUST
ESTIMATED NET ASSET VALUE Continued
(In thousands, except per share data) (Unaudited)
See Notes on Pages 10 and 11
 
Description
  
Trust
Owner-
ship
  
Type
  
Square
Feet/ Units
    
Three Mos
Ended
March 31,
2013 NOI Annualized		  
Adjust-
ments
          
Adjusted
Annualized
NOI [17]
  
Range of
Capitalization
Rates
        
Estimated Range of
Property Value
    
Matched
Debt Balance
    
Estimated NAV Range
        
Operating Properties (continued)
                                                                                    
   
Marc Realty
                                                                                        
   
223 West Jackson, Chicago, IL
   50 %
Office
   168,000     1,509   267     [8 ]   1,776   8.50 %
to
   7.50 %   18,894  
to
   21,680     6,918     5,988  
to
     7,381        
4415 West Harrison, Hillside,
                                                                                          
IL
   50 %
Office
   192,000     469               469   9.50 %
to
   8.50 %   4,937  
to
   5,518     4,408     264  
to
     555        
1701 E. Woodfield, Shaumburg,
                                                                                          
IL
   50 %
Office
   175,000     1,054   (165 )   [14 ]   889   9.50 %
to
   8.50 %   9,358  
to
   10,459     5,470     1,944  
to
     2,494        
2205-55
                                                                                          
Enterprise,Westchester, IL
   50 %
Office
   130,000     953               953   9.50 %
to
   8.50 %   10,032  
to
   11,212     8,916     558  
to
     1,148        
   
Sealy Venture
                                                                                          
       
Industrial/
                                                                                  
Atlanta, GA (Northwest)
   60 %
Office
   472,000     1,267               1,267   9.00 %
to
   8.00 %   14,078  
to
   15,838     13,737     204  
to
     1,260        
       
Industrial/
                                                                                  
Atlanta, GA (Newmarket)
   68 %
Office
   470,000     1,279               1,279   9.00 %
to
   8.00 %   14,211  
to
   15,988     37,000     -  
to
     -        
   
Nashville, TN (Airpark)
   50 %
Industrial/Office 1,155,000
     5,660               5,660   9.50 %
to
   9.00 %   59,579  
to
   62,889     74,000     -  
 to
     -        
   
WRT-Elad / One South State
   50 %
Retail/Office
   942,000     16,407   (2,481 )   [11 ]   13,926   7.50 %
to
   6.50 %   185,680  
to
   214,246     106,412     35,476  
to
     45,474     [11 ]
   
Mentor Retail
   50 %
Retail
   6,571     469               469   8.00 %
to
   7.00 %   5,863  
to
   6,700     2,497     1,679  
to
     2,097        
   
Vintage
                                                                                          
   
27 Properties
   75 %
Multifamily
   4,655     23,662               23,662   7.50 %
to
   7.50 %   315,493  
to
   315,493     252,769     53,741  
to
     64,199     [12 ]
Tacoma Preferred Equity
   75 %
Multifamily
  
Under Construction
                                                     17,800     1,500  
to
     1,500     [15 ]
Urban Center Preferred Equity
   75 %
Multifamily
  
Under Construction
                                                     16,400     5,500  
to
     5,500     [15 ]
Quilceda Preferred Equity
   75 %
Multifamily
  
Under Construction
                                                     21,020     750  
to
     750     [15 ]
   
   
Fenway/Wateridge Pavilion
   80 %
office
   62,152     715               715   8.00 %
to
   7.50 %   8,938  
to
   9,533     -     7,522  
to
     7,522     [16 ]
   
   
701 Seventh Ave-Times Sq
   75 %
Retail/Office
  
Under Development
                                                     375,000     28,971  
to
     28,971     [15 ]
   
   
                                 
Subtotal Operating Properties Segment Estimated Value Range
     375,673  
to
     447,406        
   
                                 
All Segments Estimated Net Asset Value Range
               634,125  
to
     712,498        
                                 
Outstanding Line of Credit
                             -  
to
     -        
                                 
Outsanding Senior Notes
                             (86,250)  
 to
     (86,250 )      
                                 
Outsanding Series D Preferred
                       (120,500)  
 to
     (120,500 )      
   
                                 
Net Asset Value Attributable to Common Shares
             427,375       $ 505,748        
   
                                 
Outstaning Common Shares
                         33,029  
to
     33,029        
                                 
Estimate Net Asset Value per Common Share Range
           12.94  
to
   $ 15.31        
 
Management’s estimate of net asset value (“NAV”) on pages 7-9 is based on in place assets and liabilities as of March 31, 2013. No adjustments have been made for transaction costs that would be incurred if assets were sold including any prepayment penalty associated with the Trust’s debt. There have been no adjustments made to reflect acquisitions, dispositions or loan repayments subsequent to March 31, 2013.  Although management believes the values presented reflect current market conditions, the ultimate amount realized on any asset will be based on the timing of such disposition and then market conditions.  There can be no assurance that the ultimate realized value upon disposition of an asset will be within the range provided.
 
 
9
 
 
WINTHROP REALTY TRUST
ESTIMATED NET ASSET VALUE Continued
(In thousands, except per share data) (Unaudited)
See Notes on Pages 10 and 11
 
[1]
Management’s estimate of NAV on the Trust’s loans expected to be repaid gives no effect to the above or below market yield earned on certain of the loans.  Except for WBCMT, Rockwell and Churchill for which full recovery may not be realized, par is utilized as the estimate of value.
 
[2]
Management’s estimate of NAV on the Trust’s loans with potential equity participation gives no effect to the potential value of any potential additional value derived from equity participation.
 
[3]
Management’s low estimate of value for the Concord Debt Holdings/CDH CDO investment is based on its estimated recovery of the Concord Debt Holdings assets and gives no value to the equity in the CDO.  Management’s high end range of estimate is based on low end value plus recovery on certain of the assets valued at $0.
 
[4]
Management based its estimate on the carrying value of the collateral manager and equity of Sorin CDO IV.
 
[5]
Reflects adjustment made for leases in place which rents are not included in prior quarters’ reported earnings due to either the timing of commencement or rent abatement.
 
[6]
The adjustment is made to reduce the first quarter NOI for the South Burlington property which was higher than stabilized NOI due to the timing of certain scheduled repairs and maintenance expenses.
 
[7]
This property is leased to Spectra Energy.  The lease, which was set to expire in 2016 was extended until April 2026. Negotiated annual lease payments on the modified lease remain unchanged ($7,974,000 to $8,255,000 annually) through the maturity date of the mortgage debt, then the base rate decreases to $4,260,000 annually, subject to annual increases thereafter up to $5,478,000 annually.  The NOI was adjusted to reflect a future decline in rents.

[8]
Properties are currently in a lease up phase.  Accordingly, management estimated the range of property values by applying the range of capitalization rates to an estimated stabilized NOI and then deducted from the property value the estimated costs to achieve the projected stabilized NOI.
 
[9]
Management’s estimated NAV is calculated based on a sale of the property at a range of values using capitalization rates between 5.5% and 6.0% applied to stabilized NOI.  The proceeds are then assumed to be distributed based upon the distribution provision of the 450 West 14th Street LLC Agreement which provides that cash is distributed as follows on the Trust’s capital contribution of $15.0 million and other equity holders’ capital of $4.1 million:
 
1)  
to the Trust until it receives an amount equal to a 10% return;
2)  
75% to the Trust , 25% to other equity holders until the Trust has received a 15% cumulative annual compounded return on its aggregate investment amount;
3)  
90% to the Trust, 10% to other equity holders until the Trust has received a return of its aggregate investment amount;
4)  
10% to the Trust, 90% to other equity holders until other equity holders have received a return of any new investment amount and a 15% IRR thereon;
5)  
either (x) on or prior to the fifth anniversary of the Trust’s investment, 50% to the Trust and 50% to the other equity holders or (y) following the fifth anniversary of the Trust’s investment, 35% to the Trust and 65% to the other equity holders.  Management assumed the 35% for this analysis.

[10]
The Trust holds the $71,697,000 first mortgage on the 1515 Market Street property and, pursuant to the modification entered into in February 2013, the Trust is entitled to receive 89% of the profits in excess of the mortgage balance.
 
[11]
Management’s estimate of NAV is calculated based on the post-tax credit compliance period residual distribution provisions set forth in One South State Street LLC agreement which provide for payment of the WRT-Elad mezzanine loan under its terms and then 70% profits participation by WRT-Elad.  The NOI on this property was adjusted downward to reflect that certain scheduled expenses were not yet incurred.
 
[12]
Each of the Vintage properties is owned in a partnership which includes outside investors and is subject to its individual partnership agreement waterfall.  The VHH Operating Agreement provides that aggregate properties operating cash flow to VHH is distributed as follows:
 
1)  
to the Trust until it receives a 12% preferred return on its unreturned capital;
 
2)  
to the Trust’s joint venture partner until he receives at 12% return;
 
3)  
the remainder is distributed 50%  to the Trust and 50% to the Trust’s partner.
 
Capital proceeds from the sale or refinancing of any of the underlying properties are distributed 75% to the Trust and 25% to our joint venture partner until all capital is returned and unpaid returns are paid and any excess after the return of capital is distributed 50%/50%.
 
 
10
 
 
WINTHROP REALTY TRUST
ESTIMATED NET ASSET VALUE Continued
(In thousands, except per share data) (Unaudited)
See Notes on Pages 10 and 11
 
Management estimated the range of NAV based on the forecasted distributions to be received on this investment discounted at a range between 9% and 12%.  Forecasted residual proceeds were calculated based on sales of the underlying properties using a capitalization rate of 7.5%.
 
[13]
This property is net leased to Ingram Micro under a lease which was scheduled to expire in October 2013.   The tenant has executed a letter of intent to extend the term and the lease is being finalized.  The adjustment reflects the rental rate per the letter of intent.  The property value has been reduced for the costs of the lease.
 
[14]
This property has expected lease turnover.  Accordingly an adjustment has been made to NOI to reflect the reduction in asset value.
 
[15]
Asset is in a development stage.  NAV represents cash invested by the Trust at March 31, 2013.
 
[16]
The Trust has a preferred equity position.  Proceeds of a capital transaction are distributed first to the Trust until it receives as a return all of its $7.5 million investment plus a 12% thereon; second to the Trust’s partner, Fenway, until it has received its $1.5 million investment plus a 12% return thereon; and thereafter 60% to Fenway and 40% to the Trust.
 
[17]
Net operating income is a non-GAAP measure equal to revenues from all rental property less operating expenses and real estate taxes, exclusive of depreciation, amortization and capital expenditures.
 
 
11
 
 
WINTHROP REALTY TRUST
January 1, 2008 – March 31, 2013 Performance Table
 
The following table reflects the performance of all investments that were made and sold or otherwise liquidated during the five year period beginning January 1, 2008 through March 31, 2013.  Management has presented for each investment its internal rate of return (“IRR”), a standard return methodology that calculates the annual effective compounded rate of return.  For the purposes of calculating each investment’s IRR, management has assumed that the cash flows for each investment occurred on the last day of the quarter in which the actual cash was invested or received by the Trust.  The IRR’s presented are on a gross basis i.e. there has been no allocation of the Trust’s base management fee or other Trust general and administrative costs to reduce an investment’s cash flows used in calculating the IRR.  The reported amounts represent only the Trust’s position in each investment.
 
       
Initial
  
Initial
          
       
Investment
  
Investment
  
Liquidation
      
Segment
  
Property Type
  
Date
  
Amount
  
Date
  
IRR
  
   
REIT Securities
                      
REIT Common shares -LXP
   N/A  
October-08
   $ 20,416,142  
November-09
     18. 77 %
REIT Common shares -Various
   N/A  
November-08
     4,543,740  
Various
     24. 57 %
REIT P referred shares -Various
   N/A  
October-08
     11,745,739  
Various
     65. 35 %
REIT Bonds -Various
   N/A  
December-08
     25,085,220  
Various
     21. 70 %
REIT Common shares -CDR
   N/A  
October-11
     14,870,211  
Various
     57. 04 %
   
Loan Assets , Loan Securities & Loan Equity
                          
Investments
                          
Siete Square
  
Office
  
June -09
   $ 5,500,000  
June -11
     15. 98 %
160 Spear Street - Whole Loan
  
Office
  
June -09
     38,318,727  
May-12
     51. 85 %
160 Spear Street - Tenant Im provem ent Loan
  
Office
  
December-09
     1,200,000  
May-12
     15. 60 %
Beverly Hills Hilton - B Note
  
Hotel
  
December-09
     5,250,000  
September-11
     52. 32 %
Metropolitan Tow er - B N ote
  
Office
  
December-09
     6,500,000  
April-11
     139. 10 %
Driver Building - B Note
  
Office
  
May-10
     6,703,325  
August-10
     17. 35 %
1701 Woodfield - Whole Loan
  
Office
  
July-10
     5,000,000  
September-10
     8.00 %
Peter Cooper/Stuyvescent Tow n - Mezzanine Loan
  
Multi-family
  
August-10
     10,665,000  
October-10
     -37. 56 %
Scripps Center - Rake Bond
  
Office
  
July-10
     1,200,000  
November-10
     1221. 53 %
Moffet Tower - B Note
  
Office
  
October-10
     21,557,883  
October-11
     8. 79 %
Westwood - Whole Loan
  
Office
  
October-10
     3,500,000  
December-11
     12.62 %
Metropolitan Tower - Rake Bond
  
Office
  
December-10
     5,259,896  
April-11
     182. 57 %
CDH CDO - Compliance Loan
  
CDO
  
December-10
     3,497,569  
July-11
     9.21 %
Concord 2006-1A Class E
  
CDO
  
February-11
     662,344  
April-11
     76. 22 %
Gotham Hotel - Whole Loan
  
Hotel
  
February-11
     8,036,658  
May-11
     33. 58 %
Lakeside Eagle - Whole Loan
  
Retail
  
March-11
     18,093,218  
May-11
     15. 38 %
11 East Adams - Seller Financing Mezzanine Loan
  
Office
  
June -11
     2,264,770  
July-11
     4.30 %
8 South Michigan- Seller Financing Mezzanine Loan
  
Office
  
June -11
     4,909,570  
August-11
     6.77 %
Sofitel Hotel - Mezzanine Loan
  
Hotel
  
June -11
     5,759,949  
October-11
     88. 88 %
Sealy Northwest - DPO Bridge Financing
  
Industrial/office
  
June -11
     20,630,000  
September-11
     8.72 %
Magazine - Mezzanine Loan
  
Multi-family
  
June -11
     17,538,478  
May-12
     15. 95 %
Riverside Plaza - B-Note
  
Retail
  
June -10
     7,800,000  
September-12
     12. 57 %
Broward Financial Center - Whole Loan
  
Office
  
May-12
     42,771,882  
October-12
     22. 24 %
SoCal Office Portfolio - C-N ote
  
Office
  
November-11
     71,354,090  
September-12
     26. 88 %
HC Cypress Pointe LLC - Preferred Equity
  
Multi Family
  
May-11
     449,223  
November-12
     13. 22 %
2600 W Olive Series N-Q - Loan Securities
  
Office
  
December-09
     1,500,000  
December-12
     68.23 %
Burbank Centre - B-Note
  
Office
  
September-12
     9,000,000  
January-13
     4.89 %
127 West 25th - Mezzanine Loan
  
Mixed Use
  
May-12
     9,000,000  
March-13
     30. 45 %
180 No. Michigan - Seller Financing Mezzanine Loan
  
Office
  
November-12
     5,200,000  
March-13
     8. 47 %
   
Other
                          
F II Co-Invest LLC - Private Equity Securities
   N/A  
July-11
   $ 1,800,000  
April-12
     17. 51 %
   
Operating Properties
                          
180 No. Michigan - Preferred / Equity Investment
  
Office
  
April-08
   $ 3,923,084  
November-12
     8.13 %
   
   
Total/Weighted Average
           $ 421,506,718         32.50 %
 
 
12
 
 
   
Three Months Ended
March 31,
  
   
2013
    
2012
  
Cash flows from operating activities
            
   Net income
   $ 12,951     $ 7,352  
   Adjustments to reconcile net income  to net cash
                
   provided by operating activities:
                
      Depreciation and amortization (including amortization of
                
         of deferred financing costs)
     3,403       2,616  
      Amortization of lease intangibles
     2,054       1,178  
      Straight-line rental income
     (177 )     (1,446 )
      Loan discount accretion
     (716 )     (2,833 )
      Income from preferred equity investments
     (202 )     -  
      Distributions of income from preferred equity investments
     94       97  
      Income of equity investments
     (7,869 )     (424 )
      Distributions of income from equity investments
     7,822       2,764  
      Restricted cash held in escrows
     1,509       (204 )
      Loss (gain) on sale of securities carried at fair value
     102       (26 )
      Unrealized gain on securities carried at fair value
     (1,718 )     (4,932 )
      Unrealized gain on loan securities carried at fair value
     -       (164 )
      Tenant leasing costs
     (156 )     (671 )
      Gain on sale of real estate investments
     (2,775 )     -  
      Equity compensation expenses
     43       -  
      Bad debt (recovery) expense
     84       (127 )
      Net change in interest receivable
     184       (7 )
      Net change in accounts receivable
     (903 )     (452 )
      Net change in accounts payable and accrued liabilities
     (3,669 )     (348 )
         Net cash provided by operating activities
     10,061       2,373  
                 
Cash flows from investing activities
                
      Investments in real estate
     (396 )     (2,469 )
      Investment in equity investments
     (13 )     (23,835 )
      Proceeds from sale of investments in real estate
     11,425       -  
      Proceeds from sale of equity investments
     26       250  
      Return of capital distribution from equity investments
     669       38,100  
      Purchase of securities carried at fair value
     -       (4,188 )
      Proceeds from sale of securities carried at fair value
     9,090       4,302  
      Restricted cash held in escrows
     716       (4,421 )
      Issuance and acquisition of loans receivable
     (22,314 )     (2,521 )
      Collection of loans receivable
     24,287       357  
      Proceeds from sale of loans receivable
     19,318       -  
      Cash from consolidation of properties
     473       -  
         Net cash provided by investing activities
     43,281       5,575  
(Continued on next page)
 
 
13
 

WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, Unaudited, continued)

   
Three Months Ended
March 31,
  
   
2013
    
2012
  
Cash flows from financing activities
            
   Proceeds from mortgage loans payable
     -       743  
   Principal payments of mortgage loans payable
     (1,643 )     (1,426 )
   Payment of secured financing
     (10,117 )     -  
   Proceeds from issuance of Series D Preferred Shares
     -       77,772  
   Payment of revolving line of credit
     -       (40,000 )
   Restricted cash held in escrows
     (2,797 )     (10 )
   Deferred financing costs
     (228 )     (9 )
   Contribution from non-controlling interest
     535       218  
   Distribution to non-controlling interest
     -       (101 )
   Purchase of non-controlling interests
     (75 )     (400 )
   Issuance of Common Shares under Dividend Reinvestment Plan
     115       133  
   Dividend paid on Common Shares
     (5,366 )     (5,369 )
   Dividend paid on Series D Preferred Shares
     -       (925 )
         Net cash (used in) provided by financing activities
     (19,576 )     30,626  
   Net increase in cash and cash equivalents
     33,766       38,574  
   Cash and cash equivalents at beginning of period
     97,682       40,952  
   Cash and cash equivalents at end of period
   $ 131,448     $ 79,526  
   Supplemental Disclosure of Cash Flow Information
                
                 
   Interest paid
   $ 5,897     $ 3,721  
   Taxes paid
   $ 68     $ 161  
                 
   Supplemental Disclosure on Non-Cash Investing and
                
      Financing Activities
                
   Dividends accrued on Common Shares
   $ 5,367     $ 5,371  
   Dividends accrued on Series D Preferred Shares
   $ 2,787     $ -  
   Capital expenditures accrued
   $ 4,117     $ 1,583  
   Transfer from loans receivable
   $ -     $ (2,938 )
   Transfer from preferred equity
   $ -     $ (3,923 )
   Transfer to equity investment
   $ -     $ 6,861  
 
See Notes to Consolidated Financial Statements.
 
 
14
 
 
WINTHROP REALTY TRUST
SELECTED BALANCE SHEET ACCOUNT DETAIL
(In thousands, Unaudited)
 
   
March 31,
2013
    
December 31,
2012
    
September 30,
2012
    
June 30,
2012
    
March 31,
2012
  
Investments in Real Estate
  
 
                          
Land
   $ 60,616     $ 43,252     $ 37,177     $ 39,575     $ 36,495  
Buildings and improvements
                                        
Buildings
     354,311       337,506       311,956       313,398       297,112  
Building improvements
     17,877       18,908       13,676       20,012       14,830  
Furniture and Fixtures
     2,579       2,509       2,226       2,176       1,857  
Tenant improvements
     20,949       19,814       16,431       14,657       14,757  
      456,332       421,989       381,466       389,818       365,051  
Accumulated depreciation and amortization
     (52,412 )     (51,553 )     (48,618 )     (49,818 )     (47,071 )
Total Investments in Real Estate
   $ 403,920     $ 370,436     $ 332,848     $ 340,000     $ 317,980  
 
                                        
Accounts Receivable
                                        
    Straight-line rent receivable
   $ 14,403     $ 13,770     $ 13,467     $ 13,281     $ 12,251  
    Other
     7,260       7,353       4,904       5,986       5,920  
Total Accounts Receivable
   $ 21,663     $ 21,123     $ 18,371     $ 19,267     $ 18,171  
                                         
Securities Carried at Fair Value
                                        
    REIT Preferred Shares
   $ -     $ -     $ -     $ -     $ -  
    REIT Common Shares
     12,220       19,694       37,191       34,079       33,700  
Total Securities Carried at Fair Value
   $ 12,220     $ 19,694     $ 37,191     $ 34,079     $ 33,700  
                                         
Equity Investments
                                        
Vintage Housing Holdings (27 Properties)
   $ 31,801     $ 30,534     $ 30,083     $ 30,144     $ 28,830  
Elad / One South State Street (1 Property)
     23,447       25,104       24,659       24,716       24,743  
Marc Realty Portfolio (4 Properties)
     14,662       14,880       21,921       21,768       34,227  
10 Metrotech (Office Loan)
     10,845       10,845       10,845       56       -  
Sealy Ventures Properties (3 Properties)
     7,958       8,104       8,904       9,717       10,570  
Mack-Cali / Stamford (Office Loan)
     8,636       8,501       8,367       8,236       8,097  
Concord Debt Holdings
     3,953       3,974       4,495       4,529       -  
CDH CDO
     652       322       3,698       2,978       -  
RE-CDO Management
     1,098       1,779       1,792       1,794       1,812  
Mentor Retail (1 Property)
     568       551       523       511       -  
So-Cal Office Loan Portfolio (31 Loans)
     8       8       12       33,888       34,181  
Riverside Plaza (Retail Loan)
     -       -       -       7,883       7,883  
Lakeside/Eagle
     -       -       -       1       5  
FII Co-Invest
     -       -       -       -       1,800  
701 Seventh Avenue
     29,038       28,735       -       -       -  
Wateridge
     1,558       1,522       -       -       -  
Total Equity Investments
   $ 134,224     $ 134,859     $ 115,299     $ 146,221     $ 152,148  
Preferred Equity Investments
                                        
Vintage at Tacoma
   $ 1,500     $ 1,500     $ 1,500     $ 1,500     $ 1,500  
Vintage at Urban Center
     4,000       4,000       4,000       4,000       -  
Vintage at Quilceda
     750       750       -       -       -  
Wateridge
     6,108       6,000       -       -       -  
Total Preferred Equity Investments
   $ 12,358     $ 12,250     $ 5,500     $ 5,500     $ 1,500  
Non-Controlling Interests
                                        
Westheimer (Houston, TX)
   $ 8,652     $ 8,903     $ 11,877     $ 11,673     $ 11,316  
River City / Marc Realty (Chicago, IL)
     3,883       3,857       3,891       3,484       3,404  
One East Erie/ Marc Realty (Chicago, IL)
     -       -       -       -       480  
1050 Corporetum / Marc Realty (Lisle, IL)
     56       61       83       110       134  
450 West 14th Street (High Line)
     1,952       1,912       2,399       3,075       3,725  
So-Cal Office Loan Portfolio
     -       2       19       4,468       999  
HC Cypress
     19       19       -       -       -  
1515 Market
     (195 )     -       -       -       -  
Total Non-Controlling Interests
   $ 14,367     $ 14,754     $ 18,269     $ 22,810     $ 20,058  
 
The listing above provides detail for only certain balance sheet line items presented on Winthrop Realty Trust's Consolidated Balance Sheets for all periods presented (the "Balance Sheet"). See page 1 of this supplement for all Balance Sheet line items.
 
 
15
 
 
WINTHROP REALTY TRUST
SCHEDULE OF CAPITALIZATION, DIVIDENDS AND LIQUIDITY
 (In thousands, except for per share data, Unaudited)
 
   
Mar 31,
2013
    
Dec 31,
2012
    
Sep 30
2012
    
Jun 30,
2012
    
Mar 31,
2012
  
Debt
                              
Mortgage loans payable
   $ 278,824     $ 280,576     $ 238,097     $ 229,891     $ 230,257  
Senior notes payable
     86,250       86,250       86,250       -       -  
Secured financing
     42,803       52,920       29,150       29,150       29,150  
KeyBank line of credit
     -       -       -       -       -  
Total Debt
     407,877       419,746       353,497       259,041       259,407  
                                         
                                         
Equity
                                        
Series D Cumulative Redeemable
    Preferred Shares
     120,500       120,500       120,500       120,500       120,500  
Common Shares
     339,811       334,010       343,605       336,688       346,924  
Non-controlling ownership interests
     14,367       14,754       18,269       22,810       20,058  
Total Equity
     474,678       469,264       482,374       479,998       487,482  
                                         
Total Capitalization
   $ 882,555     $ 889,010     $ 835,871     $ 739,039     $ 746,889  
 
 
Common Dividend Per Share
March 31,
2013
  
December 31,
2012
  
September 30,
2012
  
June 30,
2012
    
March 31,
2012
  
                         
 $            0.1625
   $ 0.1625     $ 0.1625     $ 0.1625     $ 0.1625  
                                 
 
Liquidity and Credit Facility
                              
   
March 31,
2013
    
Dec 31,
2012
    
Sept 30,
2012
    
June 30,
2012
    
March 31,
2012
  
Cash and cash equivalents
   $ 131,448     $ 97,682     $ 159,251     $ 43,959     $ 79,526  
Securities carried at fair value
     12,220       19,694       37,191       34,079       33,700  
Available under line of credit
     50,000       50,000       50,000       50,000       50,000  
Total Liquidity and Credit Facility
   $ 193,668     $ 167,376     $ 246,442     $ 128,038     $ 163,226  
 
(1) subject to borrowing base requirements.
 
 
16
 
 
WINTHROP REALTY TRUST
SELECTED INVESTMENT DATA
March 31, 2013
(In thousands, except square footage and cost per square foot/unit, Unaudited)
 
The following pages of investment data are presented to provide additional information relating to management’s expectations on selected assets within its business segments. For more detail on these assets within this Supplement please reference Schedule of Loan Assets on pages 21-22, Consolidated Property Data on pages 25-26, and Equity Investment Property Data on pages 27-29.
 
Cash
  
Amount
        
Cash and cash equivalents
   $ 131,448        
               
REIT Securities
  
Cost
    
Fair Value
  
REIT Common shares
   $ 8,920     $ 12,220  

Loans with Expected Repayment
  
Position
  
Type
  
Interest Rate
  
Cost, less Principal Repaid
  
Carrying Amount (before  int. recble)
  
 
Par Value
  
Extended Maturity Date
Hotel Wales
  
Whole
  
Hotel
  
LIBOR +
4.00%
  
          20,000
  
        20,000
  
         20,000
  
10/05/13
WBCMT Series 2007 Tranche L
  
CMBS
  
Hotel
  
LIBOR +
1.75%
  
                 11
  
               11
  
           1,130
  
03/09/14
10 Metrotech -33% Owned Equity Inv(1)  
  
Whole
  
Office
  
Fixed
9.00%
  
          32,500
  
        32,500
  
         40,000
  
08/06/14
The Shops at Wailea
  
B Note
  
Retail
  
Fixed
6.15%
  
            5,100
  
          5,539
  
           7,664
  
10/06/14
Legacy Orchard
  
Whole
  
Corporate Loan
  
Fixed
15.00%
  
            9,750
  
          9,750
  
           9,750
(2)
10/31/14
Rennaisance
  
Mezz
  
Retail/ Multi Fam
  
LIBOR +
12.00%
  
            3,000
  
          3,000
  
           3,000
  
01/01/15
San Marbeya
  
Whole
  
Multifamily
  
Fixed
5.88%
  
          25,641
  
        27,177
  
         29,757
  
01/01/15
Fenway Shea
  
Whole
  
Office
  
Fixed
12.00%
  
            2,250
  
          2,250
  
           2,250
  
04/05/15
Churchill
  
Whole
  
Mixed Use
  
LIBOR +
3.75%
  
               683
  
             683
  
              683
  
06/01/15
Queensridge
  
Whole
  
Multifamily
  
LIBOR +
11.50%
  
          28,653
  
        28,653
  
         28,653
  
11/15/15
Playa Vista
  
Mezz
  
Office
  
LIBOR +
14.25%
  
          10,250
  
        10,250
  
         10,250
  
01/23/16
Rockwell
  
Mezz
  
Indust. / Whse.
  
Fixed
12.00%
  
               226
  
             326
  
           1,488
  
05/01/16
500-512 Seventh Ave.
  
B Note
  
Office
  
Fixed
7.19%
  
            9,240
  
          9,966
  
         11,077
  
07/11/16
Pinnacle II
  
B Note
  
Office
  
Fixed
6.31%
  
            4,600
  
          4,625
  
           5,115
  
09/06/16
Poipu Shopping Village
  
B Note
  
Retail
  
Fixed
6.62%
  
            1,895
  
          1,958
  
           2,846
  
01/06/17
Wellington Tower
  
Mezz
  
Mixed Use
  
Fixed
6.79%
  
            2,351
  
          2,705
  
           3,502
  
07/11/17
Mentor  Building (39 South St)
  
Whole
  
Retail
  
Fixed
10.00%
  
            2,497
  
          2,497
  
           2,497
  
09/10/17
                               
                               
 
Loans with Potential Equity Participation
                              
                               
 
Stamford -20% Owned Equity Inv(1)
  
Mezz
  
Office
  
LIBOR +
3.25%
  
 $       40,000
  
 $     42,953
  
 $      47,000
(2)
08/06/14
                               
(1) Amounts shown represent 100% of the investment at the venture level.
(2) Par amount represents borrowers discounted payoff option amount.
See Additional Loan Asset Details on Pages 21 and 22 of Supplement.
 
Continued on next page
 
 
17
 
 
WINTHROP REALTY TRUST
SELECTED INVESTMENT DATA (continued)
March 31, 2013
(In thousands, except square footage and cost per square foot/unit, Unaudited)
 
Consolidated Operating Properties
Acquired through Direct or Indirect Foreclosure  
  
%
Owned
    
Type
  
Square Feet/ Units
    
Cost Basis before Accum Depreciation
    
Cost per Square Foot or Unit
    
Debt Balance
        
                                         
Deer Valley, AZ
     100 %  
Office
     82,000     $ 12,051     $ 147     $ -     (1 )
Englewood, CO (Crossroads I)
     100 %  
Office
     118,000       8,159       69       -     (1 )
Englewood, CO (Crossroads II)
     100 %  
Office
     118,000       11,223       95       -     (1 )
Meriden, CT (Newbury Apartments)
     100 %  
Multifamily
  
180 Units
       25,551       141,950       21,000        
Memphis, TN, (Waterford Apartments)
     100 %  
Multifamily
  
320 Units
       21,366       66,769       13,337        
Cerritos, CA (Cerritos)
     100 %  
Office
     187,000       21,765       116       23,000        
                                                                                                                                     
Atlanta, GA                                                                       
     100 %  
Retail
     61,000       1,958     $ 32     $ -     (1 )
Denton, TX
     100 %  
Retail
     46,000       2,119       46       -     (1 )
Greensboro, NC
     100 %  
Retail
     46,000       3,801       83       -     (1 )
Louisville , KY
     100 %  
Retail
     47,000       3,098       66       -     (1 )
Seabrook, TX
     100 %  
Retail
     52,000       2,012       39       -     (1 )
Amherst, NY
     100 %  
Office
     200,000       19,625       98       15,104        
Philadelphia, PA (1515 Market)
     49 %  
Office
     511,000       43,140       84       71,697     (2 )
Chicago, IL (One East Erie)
     100 %  
Office
     126,000       26,244       208       20,112        
Chicago, IL (River City / Marc Realty )  
     60 %  
Office
     253,000       16,775       66       8,700        
Houston, TX (Westheimer)
     30 %  
Office
     614,000       69,543       113       50,896        
Lisle, IL (550 Corporetum)
     100 %  
Office
     169,000       22,554       133       5,752        
Lisle, IL (Arboretum)
     100 %  
Office
     67,000       6,293       94       -        
Lisle, IL (1050 Corporetum / Marc Realty)
     60 %  
Office
     54,000       4,256       79       5,524        
New York, NY
  
var
    
Office / Retail
     105,000       60,387       575       51,982        
Orlando, FL
     100 %  
Office
     257,000       17,290       67       37,426        
Plantation, FL
     100 %  
Office
     120,000       12,935       108       10,777        
South Burlington, VT
     100 %  
Office
     54,000       3,407       63       -     (1 )
Jacksonville, FL
     100 %  
Warehouse
     588,000       12,621       21       -     (1 )
Churchill, PA
     100 %  
Mixed Use
     52,000       9,705       187       -        
Greensboro, NC (Lake Brandt)
     100 %  
Multifamily
  
284 Units
       18,454       64,979       13,600        
(1)   These properties collateralize our revolving line of credit.
(2) The Trust holds the debt on this property
 
 
18
 
 
WINTHROP REALTY TRUST
SELECTED INVESTMENT DATA (Continued)
March 31, 2013
(In thousands, except square footage / units, Unaudited)
 
Equity Investment Operating Properties
Acquired through Asset Purchase
  
%
Owned
    
Type
  
Square Feet/ Units
    
Equity Investment
Carrying Amount
  
                       
Marc Realty (4 Equity Investments)
  
Var
    
Office
     655,000     $ 14,662  
Sealy Equity Investments (3 Equity Investments)
  
Var
    
Industrial/Office
     2,097,000       7,958  
WRT-Elad / One South State St (1 Equity Investment)
     50 %  
Retail / Office
     942,000       23,447  
Vintage Housing Holdings
  
Var
    
Multifamily
  
4,655 Units
       31,801  
Mentor Retail LLC (1 Equity Investment)
     50 %  
Retail
     7,000       568  
701 Seventh WRT Investors
     61 %  
Development
     120,000       29,038  
WRT-Fenway Wateridge
     50 %  
Offive
     62,000       1,558  
                             
Preferred Equity Investment Operating Properties Acquired through Asset Purchase
  
%
Owned
    
Type
  
Square Feet/ Units
    
Preferred Equity
Investment
Carrying Amount
  
                             
Vintage Housing Holdings - Tacoma
     75 %  
Multi-Family
  
231 Units Under
 construction
     $ 1,500  
Vintage Housing Holdings - Urban Center
     75 %  
Multi-Family
  
395 Units Under construction
       4,000  
Vintage Housing Holdings - Quilceda Creek
     75 %  
Multi-Family
  
204 Units Under contruction
       750  
WRT-Fenway Wateridge
     50 %  
Offic
     62,000       6,108  
 
 
19
 
 
WINTHROP REALTY TRUST
SCHEDULE OF SECURITIES CARRIED AT FAIR VALUE
(In thousands, Unaudited)
 
   
March 31, 2013
    
December 31, 2012
    
September 30, 2012
    
June 30, 2012
    
March 31, 2012
  
   
Cost
    
Fair Value
    
Cost
    
Fair Value
    
Cost
    
Fair Value
    
Cost
    
Fair Value
    
Cost
    
Fair Value
  
                                                             
 REIT Common shares
   $ 8,920     $ 12,220     $ 15,876     $ 19,694     $ 26,775     $ 37,191     $ 26,775     $ 34,079     $ 25,681     $ 33,700  
 Total securities carried at fair value
   $ 8,920     $ 12,220     $ 15,876     $ 19,694     $ 26,775     $ 37,191     $ 26,775     $ 34,079     $ 25,681     $ 33,700  
 
Securities carried at fair value are comprised of REIT common shares for which the Trust has elected the fair value option.
 
   
Three Months Ended
   
March 31,
2013
    
December 31,
2012
  
September 30,
2012
  
June 30,
2012
    
March 31,
2012
  
                                         
Net unrealized gain (loss)
   $ 1,718     $ (338 )   $ 3,484     $ (879 )   $ 5,096  
                                         
Net realized gain (loss)
   $ (102 )   $ -     $ -     $ 15     $ 26  
 
The Trust uses specific identification method for calculating gain or loss on the sale of securities carried at fair value.
Net unrealized gains and losses and realized gains and losses above include amounts generated from securities carried at fair value and loan securities.
 
 
20
 
 
WINTHROP REALTY TRUST
SCHEDULE OF LOAN ASSETS
 (In thousands, Unaudited)
 
Description
  
Acquisition Date
  
Asset
Type
  
Location
  
Position
  
Interest Rate (1)
          
Carrying Amount (2)
Mar 31, 2013
    
Par Value
        
Maturity Date (3)
  
Loans Receivable
                                                                
Hotel Wales
  
Oct-11
  
Hotel
  
New York
    
NY
  
Whole
  
LIBOR +
     4.000 %     (5 )     20,101       20,000        
10/05/13
     -  
The Shops at Wailea
  
Sep-12
  
Retail
  
Maui
    
HI
  
B Note
  
Fixed
     6.150 %             5,573       7,664        
10/06/14
     107,293  
Legacy Orchard
  
Oct-10
  
Corporate Loan
   N/A     N/A  
Whole
  
Fixed
     15.000 %             9,750       9,750       (6 )
10/31/14
     -  
Rennaisance
  
Dec-11
  
Retail/ Multi Fam
  
Atlanta
    
GA
  
Mezz
  
LIBOR +
     12.000 %     (7 )     3,000       3,000          
01/01/15
     4,000  
San Marbeya
  
Jul-10
  
Multifamily
  
Tempe
    
AZ
  
Whole
  
Fixed
     5.880 %             27,323       29,757          
01/01/15
     -  
Fenway Shea
  
Apr-12
  
Office
  
Phoenix
    
AZ
  
Whole
  
Fixed
     12.000 %             2,273       2,250          
04/05/15
     -  
Playa Vista
  
Jan-13
  
Office
  
Playa Vista
    
CA
  
Mezz
  
LIBOR +
     14.250 %             10,323       10,250          
01/23/15
     80,300  
Churchill
  
May-12
  
Mixed Use
  
Churchill
    
PA
  
Whole
  
LIBOR +
     3.750 %             687       683          
06/01/15
     -  
Queensridge Towers
  
Nov-12
  
Multifamily
  
Las Vegas
    
NV
  
Whole
  
LIBOR +
     11.500 %             28,976       28,653          
11/15/15
     -  
Rockwell
  
Aug-10
  
Indust /Whse
    
Shirley
    
NY
  
Mezz
  
Fixed
     12.000 %             342       1,488          
05/01/16
     16,560  
500-512 Seventh Ave.
  
Jul-10
  
Office
  
New York
    
NY
  
B Note
  
Fixed
     7.190 %             10,013       11,077          
07/11/16
     247,538  
Pinnacle II
  
Sep-12
  
Office
  
Burbank
    
CA
  
B Note
  
Fixed
     6.313 %             4,648       5,115          
09/06/16
     84,199  
Poipu Shopping Village
  
Sep-12
  
Retail
  
Kauai
    
HI
  
B Note
  
Fixed
     6.618 %             1,972       2,846          
01/06/17
     28,775  
Wellington Tower
  
Dec-09
  
Mixed Use
  
New York
    
NY
  
Mezz
  
Fixed
     6.790 %             2,719       3,501          
07/11/17
     22,500  
Mentor  Bldg (39 South St)
  
Mar-12
  
Retail
  
Chicago
    
IL
  
Whole
  
Fixed
     10.000 %             2,512       2,497          
09/10/17
     -  
                        Total Loans Receivable             $ 130,212     $ 138,531                    
Loan Securities Carried at Fair Value
                                                                    
WBCMT 2007
  
Dec-09
  
Hotel
  
Various
        
CMBS
  
LIBOR +
     1.750 %           $ 11     $ 1,130          
03/09/14
   $ 1,232,004  
               Total Loan Securities Carried at Fair Value     $ 11     $ 1,130                    
Equity Investment Loan Assets (8,9)
                                                                    
Stamford Portfolio
  
Feb-12
  
Office
  
Stamford
    
CT
  
Mezz
  
LIBOR +
     3.250 %           $ 8,472     $ 9,400       (6 )
08/06/14
   $ 400,000  
10 Metrotech
  
Var 2012
  
Office
  
Brooklyn
    
NY
  
Whole
  
Fixed
     9.000 %             10,823       13,320          
08/06/14
     -  
                    Total Loan Assets of Equity Investments     $ 19,295     $ 22,720                    
 
Continued on next page
 
 
21
 
 
WINTHROP REALTY TRUST
SCHEDULE OF LOAN ASSETS
 (Unaudited, continued)
 
Notes to Schedule of Loan Assets
(1)
Represents contractual interest rates without giving effect to loan discount and accretion. The stated interest rate may be significantly different than the Trust's effective interest rate on certain loan investments.
(2)   
Carrying amount of loans receivable includes accrued interest of $1,176,000 and cumulative accretion of $716,000 at March 31, 2013.
(3)   
Maturity dates presented are after giving effect to all contractual extensions.
(4)   
Senior Debt indicates debt which is secured by the underlying property which is senior in payment to the Trust's loan.
(5)   
Libor floor of 3%.
(6)  
Par Value represents the borrowers discounted payoff option (DPO) amount.
(7)   
Libor floor of 2%.
(8)  
Does not include the Trust's equity interests in Concord and RE CDO Management.
(9)  
The loan asset carrying amount presented is at the Trust's ownership in the loan balance.
 
 
22
 
 
WINTHROP REALTY TRUST
NET OPERATING INCOME FROM CONSOLIDATED PROPERTIES
 (In thousands)
(Unaudited)
 
   
Three Months Ended
  
                               
   
Mar 31,
2013
    
Dec 31,
2012
    
Sep 30,
2012
    
Jun 30,
2012
    
Mar 31,
2012
  
Rents and reimbursements
                              
Minimum rent
   $ 14,444     $ 12,482     $ 11,349     $ 10,046     $ 9,637  
Deferred rents (straight-line)
     287       335       486       1,030       1,446  
Recovery income
     1,036       742       1,818       1,152       1,143  
Above and below market rents
     (23 )     112       101       102       102  
Less:
                                        
Lease concessions and abatements
     (565 )     (521 )     (419 )     480       (248 )
Total rents and reimbursements
     15,179       13,150       13,335       12,810       12,080  
 
                                        
Rental property expenses
                                        
Property operating
     4,930       4,131       3,624       3,561       4,350  
Real estate taxes
     946       1,284       1,268       989       1,224  
Total rental property expenses
     5,876       5,415       4,892       4,550       5,574  
                                         
Net operating income (1)
                                        
from consolidated properties
   $ 9,303     $ 7,735     $ 8,443     $ 8,260     $ 6,506  
 
(1) See definition of non-GAAP measure of Net Operating Income on page 37 of the supplemental package.
 
 
23
 
 
WINTHROP REALTY TRUST
SCHEDULE OF INTEREST, DIVIDENDS AND DISCOUNT ACCRETION
 (In thousands)
(Unaudited)
   
Three Months Ended
   
Mar 31,
2013
    
Dec 31,
2012
    
Sep 30,
2012
    
Jun 30,
2012
    
Mar 31,
2012
  
Interest, Dividends and Discount
 Accretion by Business Segment:
                    
Loan Assets
   $ 5,170     $ 5,955     $ 3,410     $ 5,472     $ 5,232  
REIT Securities
     150       150       312       306       286  
Total Interest,  Dividends and
    Discount Accretion
   $ 5,320     $ 6,105     $ 3,722     $ 5,778     $ 5,518  
                                         
                                         
Interest,  Dividends and Discount
 Accretion Detail:
                                        
Interest on loan assets
   $ 4,454     $ 3,607     $ 2,985     $ 2,746     $ 2,399  
Accretion of loan discount
     716       2,348       425       2726       2,833  
Interest and dividends on REIT securities
     150       150       312       306       286  
Total Interest,  Dividends and
    Discount Accretion
   $ 5,320     $ 6,105     $ 3,722     $ 5,778     $ 5,518  
 
 
24
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS - SELECTED PROPERTY DATA
March 31, 2013 (Unaudited)
 
Description and
Location
Year
Acquired
  
Trust’s
Owner-ship
    
Rentable
Square Feet
    
(**)
% Leased
  
Major Tenants
(Lease / Options
Expiration)
  
Major Tenant
Sq. Ft.
    
($000's) Depreciated Cost
Basis
    
Cost per Square
Foot or Unit
  
Owner-ship
of Land
  
($000's) Debt
Balance
    
Debt Maturity
& Int
Rate
  
Office
                                                      
Amherst, NY (2)
2005
     100 %     200,000       100 %
Ingram Micro Systems (2013/2023)
     200,000     $ 16,077     $ 80  
Fee
   $ 15,104       10/2013 5.65%  
Cerritos, CA
2012
     100 %     187,000       74  
Marina Medical Billing (2018)
     44,000       21,396       114  
Fee
     23,000       01/2017 5.07%  
Chicago, IL
(One East Erie)
2005
     100 %     126,000       93 %
The Gettys Group (2012/2016)
     13,000       21,060       167  
Fee
     20,112       03/2016 5.75%  
                           
River North Surgery (2015/ n/a)
     15,000                                    
Chicago, IL
(River City / Marc Realty)
2007
     60 %     253,000       49 %
ITAV (2024/2029)
     35,000       14,616       58  
Fee
     8,700       04/2015 6.25%  
                           
MFS/Worldcom (2019/2023)
     60,000                                    
Deer Valley, AZ
2010
     100 %     82,000       96 %
United Healthcare
(2017/2027)
     42,000       10,410       127  
Fee
     (1 )     (1 )
                           
Premier Research
(2016/2026)
     14,000                                    
                           
Southwest Desert
Cardiology  (2022/2037)
     9,000                                    
Englewood, CO Crossroads I
2010
     100 %     118,000       91 %
Hitachi Data (2024)
     53,000       7,505       64  
Fee
     (1 )     (1 )
                           
RGN-Denver LLC
(2015/ 2025)
     17,000                                    
Englewood, CO Crossroads II
2010
     100 %     118,000       100 %
TIC Holdings
(2019 / 2044)
     74,000       10,294       87  
Fee
     (1 )     (1 )
Houston, TX
2004
     31 %     614,000       100 %
Spectra Energy (2018/2028)
     614,000       56,529       92  
Fee
     50,896       04/2016 6.15%  
Lisle, IL
2006
     100 %     169,000       82 %
United Healthcare
(2014/ n/a)
     41,000       19,206       114  
Fee
     5,752    
10/2014
Libor+2.5%
  
Lisle, IL
2006
     100 %     67,000       1 %
No tenants over 10%
     -       5,265       79  
Fee
     -       -  
Lisle, IL
(Marc Realty)
2006
     60 %     54,000       100 %
Ryerson
(2018/2028)
     54,000       3,694       68  
Fee
     5,524       03/2017 5.55%  
New York, NY
(450 West 14th)
2011
     70 %     105,000       82 %
Alice + Olivia (2021/2031)
     27,000       57,994       552  
Ground Lease
     51,982    
05/2016
Libor +2.5%
  
                           
Fast Retailing (2026/2036)
     23,000                                    
                           
Access Industries  (2021/2031)
     14,000                                    
Orlando, FL
2004
     100 %     257,000       100 %
Siemens Real Estate, Inc. (2017/2042)
     257,000       13,670       53  
Ground Lease
     37,426       07/2017 6.40%  
Plantation, FL
2004
     100 %     120,000       100 %
AT&T Service, Inc.
 (2020/2035)
     120,000       11,065       92  
Fee
     10,778       04/2018 6.48%  
South Burlington,  VT
2005
     100 %     54,000       100 %
Fairpoint Comm.
(2014/2029)
     54,000       2,806       52  
Ground Lease
     (1 )     (1 )
1515 Market Street
2012
     89 %     511,000       76 %
n/a
     n/a       42,996       84         71,697    
02/1/2016 7.5%
  
Subtotal - Office
               3,035,000                         314,583                 300,971          
 
(Continued on next page)
 
 
25
 
 
WINTHROP REALTY TRUST
 SELECTED PROPERTY DATA
March 31, 2013 (Unaudited)
 
Description and
Location
Year
Acquired
  
Trust’s
Ownership
    
Rentable
Square Feet
    
(**)
% Leased
    
Major Tenants
(Lease /Options Exp)
    
Major Tenants’
Sq. Feet.
    
($000's) Depreciated Cost
Basis
  
Ownership
of Land
  
($000's)
Debt
Balance
    
Debt
Maturity
& Int Rate
  
Retail
                                                    
Atlanta, GA
2004
     100 %     61,000       100 %  
The Kroger Co. (2016/2026)
       61,000     $ 1,923  
Ground Lease
     (1 )     (1 )
Denton, TX
2004
     100 %     46,000       100 %  
Diesel Fitness
(2016)
Harbor Freight Tools
(2022 / 2037)
       29,00017,000       1,766  
Fee
     (1 )     (1 )
Greensboro, NC
2004
     100 %     46,000       100 %  
The Kroger Co. (2017/2037)
       46,000       3,005  
Ground Lease
     (1 )     (1 )
Louisville, KY
2004
     100 %     47,000       100 %  
The Kroger Co.
(2015/2040)
       47,000       2,528  
Fee
     (1 )     (1 )
Seabrook, TX
2004
     100 %     52,000       100 %  
The Kroger Co. (2015/2040)
       52,000       1,720  
Fee
     (1 )     (1 )
                                                                   
Subtotal Retail
               252,000                             10,942                    
Residential
                                                                  
Meriden, CT
2010
     100 %  
180 units
       94 %     n/a       n/a       23,454  
Fee
     21,000       11/2022 3.95 %  
Memphis, TN
2012
     100 %  
320 units
       93 %     n/a       n/a       20,728  
Fee
     13,337    
8/2014
Libor + 2.5%
  
Greensboro, NC
2012
     100 %  
284 units
       92 %     n/a       n/a       18,181  
Fee
     13,600       8/2016 6.22 %  
Subtotal Residential
                                               62,363                    
Other
                                                                    
Warehouse
                                                                    
Jacksonville, FL
2004
     100 %     588,000       100 %  
Fanatics, Inc.
(2015/2024)
       558,000       10,341  
Fee
     (1 )     (1 )
Mixed Use
                                                                    
Churchill, PA
2004
     100 %     52,000       100 %  
Westinghouse
(2024/2039)
       -       5,691  
Fee
     -       -  
Subtotal - Other 
              640,000                               16,032                    
Total Consolidated Properties
       3,509,000                             $ 403,920       $ 348,908          
 
(**) Occupancy rates include all signed leases, including space undergoing tenant improvements.
Notes to Consolidated Properties - Selected Data
(1)     These properties collateralize our revolving line of credit, which had a balance of $0 at March 31, 2013.
(2)     The Amherst, New York office property represents two separate buildings.  The ground underlying the properties is leased to the Trust by the local development authority pursuant to a ground lease which requires no payment.  Effective October 31, 2013, legal title to the ground will vest with the Trust.
 
 
26
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS - SELECTED PROPERTY DATA
March 31, 2013 (Unaudited)
 
Description and
Location
Year
Acquired
  
Trust’s
Ownership
    
Rentable
Square Feet
    
(**)
% Leased
    
Major Tenants
(Lease /Options Exp)
    
Major Tenants’
Sq. Feet.
    
($000's)
Equity Investment
  
Ownership
of Land
  
($000's)
Debt
Balance (1)
    
Debt Maturity
& Int Rate
  
Marc Realty Portfolio - Equity Investment Operating Properties
                                  
223 West Jackson, Chicago, IL
2005
     50 %     168,000       77 %  
No tenants over 10%
     -       8,021  
Fee
     6,918    
09/2017
LIBOR + 2.25%
  
4415 West Harrison, Hillside, IL
(High Point)
2005
     50 %     192,000       63 %  
North American Medical Mgmt (2015/2020)
     23,200       2,180  
Fee
     4,408     12/2015 5.62 %
1701 E. Woodfield, Shaumburg, IL
2005
     50 %     175,000       90 %  
No tenants over 10%
     -       1,964  
Fee
     5,470    
09/2015
Libor + 3%
(2)
2205-55 Enterprise,
Westchester, IL
2005
     50 %     130,000       89 %  
Consumer Portfolio
(2014/2019)
     18,900       2,497  
Fee
     8,916     10/2019 4.30 %
                             
UroPartners LLC
(2015/ n/a)
     14,500                          
Total Marc Realty Portfolio
               665,000                         $ 14,662       $ 25,712        
Sealy Venture Portfolio - Equity Investment Operating Properties
                                
Atlanta, GA
(Northwest Atlanta)
2006
     60 %     472,000       70 %  
Original Mattress
(2020/2025)
     57,000     $ 7,970  
Fee
   $ 13,737    
09/2015
Libor +5.35%
(3)
Atlanta, GA
(Newmarket)
2008
     68 %     470,000       50 %  
No tenants over 10%
     -       -  
Fee
     37,000     11/2016 6.12 %
Nashville, TN
(Airpark)
2007
     50 %     1,155,000       84 %  
No tenants over 10%
     -       -  
Fee
     74,000     05/2012 5.77 %
                                                               
Total  - Sealy Venture Portfolio
             2,097,000                         $ 7,970       $ 124,737        
                                                               
Mentor Retail LLC - Equity Investment Operating Property
                                      
39  South State Street
Chicago, IL
2012
     50 %     7,000       100 %  
American Apparel
(2022 / n/a)
     7,000     $ 568  
Fee
   $ 2,497     09/2017 10 %
WRT-Elad / One South State Equity - Equity Investment Operating Property
                                      
 
One South State Street
Chicago, IL  (Sullivan Ctr)
2012
     50 %     942,000       83 %  
Target
(2038 /2063)
     147,000     $ 23,447  
Fee
   $ 106,412     02/2015 11 %
                             
Walgreens(2022/2027)
     95,000                          
                             
Illinois Dept of Employment (2014/2016)
     243,000                          
                942,000                         $ 23,447       $ 106,412        
701 Seventh WRT Investor-Equtiy Investment Operating Property
                                
701 Seventh Avenue
2012
     61 %     120,000             N/A           $ 29,038  
Fee
   $ 375,000    
10/1/2015 Libor +10.2
 (4)
New York, NY
                                                              
WRT-Fenway Wateridge - Equity Investment in Operating Property
                                          
Parkway 
San Diego, CA
2012
     50 %     62,000       94 %  
Verint Americas (2018/n/a)
     6,500     $ 1,558       $ -        
                             
Flores Lund (2017/n/a)
     10,000                          
                             
Quidel Corp (2013/n/a)
                                
                             
Verizon Wireless (2013/n/a)
                                
                62,000                         $ 1,558       $ -        
 
(Continued on next page)
 
 
27
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS – SELECTED DATA (continued)
March 31, 2013
(Unaudited)
 
Description and Location
Year
Acquired
  
Units
    
(**)
% Leased
  
Ownership
of Land
Vintage Housing Portfolio - Equity Investment Operating Properties
              
Agave Associates
Elk Grove, CA
2011
     188       94 %
Fee
Bouquet Canyon Seniors
Santa Clarita, CA
2011
     264       97 %
Fee
Elk Creek Apartments
Sequim, WA
2011
     138       99 %
Fee
Falls Creek Apartments
Couer d' Alene, ID
2011
     170       93 %
Fee
Forest Creek Apartments
Spokane, WA
2011
     252       94 %
Fee
Hamilton Place Seniors
Bellingham, WA
2011
     94       98 %
Fee
Heritage Place Apartments
St. Ann, MO
2011
     113       93 %
Fee
Holly Village Apartments
Everett, WA
2011
     149       98 %
Fee
Larkin Place Apartments
Bellingham, WA
2011
     101       98 %
Fee
Rosecreek Senior Living
Arlington, WA
2011
     100       99 %
Fee
Seven Hills/ St Rose
Henderson, NV
2011
     244       96 %
Fee
Silver Creek Apartments
Pasco, WA
2011
     242       98 %
Fee
The Bluffs Apartments
Reno, NV
2011
     300       94 %
Fee
Twin Ponds Apartments
Arlington, WA
2011
     134       96 %
Fee
Vintage at Bend
Bend, OR
2011
     106       98 %
Fee
Vintage at Bremerton
Bremerton, WA
2011
     143       92 %
Fee
Vintage at Burien
Burien, WA
2011
     101       98 %
Ground Lease
Vintage at Chehalis
Chehalis, WA
2011
     150       97 %
Fee
Vintage at Everett
Everett, WA
2011
     259       98 %
Fee
Vintage at Mt. Vernon
Mt. Vernon, WA
2011
     154       95 %
Fee
Vintage at Napa
Napa, CA
2011
     115       95 %
Fee
Vintage at Richland
Richland, WA
2011
     150       95 %
Fee
Vintage at Sequim
Sequim, WA
2011
     118       99 %
Fee
Vintage at Silverdale
Silverdale, WA
2011
     240       96 %
Fee
Vintage at Spokane
Spokane, WA
2011
     287       94 %
Fee
Vintage at Vancouver
Vancouver, WA
2011
     154       98 %
Fee
Vista Sonoma Seniors Apts
Santa Rosa, CA
2011
     189       95 %
Fee
          4,655            
Vintage Housing Portfolio - Preferred Equity Investment Operating Properties
                  
Vintage at Tacoma
  
2012
     231    
under construction
  
Fee
Vintage at Urban Center
  
2012
     395    
under construction
  
Fee
Quilceda Creek
  
2012
     204    
under construction
  
Fee
          830            
Total - Vintage Housing Portfolio
         5,485    
units
    
(Continued on Next Page)
 
 
28
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS - SELECTED DATA (Continued)
March 31, 2013
(In thousands, except for square footage, unaudited)
 
Description
  
Year
Acquired
    
Trust’s
Ownership
    
Rentable
Square Feet
    
Equity Investment
    
Debt
Balance (1)
  
Equity Investment Operating Properties
                                          
Marc Realty Portfolio (from Page 25 )
  
2005
           665,000     $ 14,662           $ 25,712       (6 )
Sealy Portfolio (from Page 25)
     2006-2008           2,097,000       7,958             124,737       (6 )
Mentor Retail LLC (from Page 25)
     2012           7,000       568             2,497       (6 )
WRT-Elad / One South State Equity  (from Page 25)
     2012           942,000       23,447             106,412       (6 )
Vintage Portfolio  (from page 26)
     2011          
4,655 units
       31,801       (5 )     252,470       (6 )
701 Seventh Avenue (from page 25)
     2012           120,000       29,038               375,000       (6 )
Wateridge (from page 25)
     2012           62,000       1,558               -          
Total Equity Investment Operating Properties
                         109,032             $ 886,828          
                                                     
Loan Asset Equity Investments
                                                    
SoCal Office Portfolio Loan LLC
     2011     50 %           8                          
WRT-Stamford LLC
     2012     20 %           8,636                          
10 Metrotech Loan LLC
     2012     33 %           10,845                          
                                                     
Other Equity Investment
                                                    
Concord Debt Holdings LLC
     2012     67 %           3,953       (7 )                
CDH CDO LLC
     2012     50 %           652       (7 )                
RE CDO Management LLC
     2011     50 %           1,098                          
Total Equity Investments
                       $ 134,224                          
 
Notes to Equity Investments - Selected Data
(**) Occupancy rates include all signed leases including space undergoing tenant improvements
(1)  Debt balance shown represents 100% of the debt encumbering the properties.
(2)  An interest rate swap agreement with a notional amount of $5,470 effectively converts the interest rate to a fixed rate of 4.78%.
(3)  An interest rate cap was purchased that caps Libor at 1%.
(4)  There is a Libor floor of 1%
(5) The Vintage equity investment of $31,801 represents the Trust's various interests in Vintage Housing Holdings LLC, an entity which owns the general partnership interest listed above.  The investment basis is not specifically allocated among the various lower tier partnerships.
(6)  See Equity Investments debt details on pages 33 and 34.
(7) Represents the interest acquired from Lexington Realty Trust on May 1, 2012.
 
 
29
 
 
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES – OPERATING SUMMARY
Three Months Ended March 31, 2013
 (In thousands, except for Square Footage, Unaudited)
 
Description
  
% Owned
  
Number of
Properties
  
Square Footage
    
Rents and Reimburse-ments
    
Operating Expenses
    
Real Estate Taxes
    
Net
Operating Income (1)
    
Interest Expense
    
Other Income (Expense)
    
Impairment
    
Deprec & Amort
    
(Income) Loss Attributable to Non-controlling Interest
  
WRT's share Net Income / (Loss) from Consolidated Properties (1)
  
100% Owned Consolidated Properties
                                                            
 Retail
     100.0 %     6       296,000     $ 321     $ 22     $ 10     $ 289     $ -       -     $ -     $ 98     $ -   $ 191  
 Office
     100.0 %     12       1,591,000       6,157       1,703       360       4,094       1,673       (7 )     -       2,020       -     394  
 Residential
     100.0 %     2    
784 units
       2,100       839       293       968       458       (4 )     -       881       -     (375 )
 Other
     100.0 %     2       640,000       601       164       47       390       -       -       -       160       -     230  
              22       2,527,000       9,179       2,728       710       5,741       2,131       (11 )     -       3,159       -     440  
Partially Owned Consolidated Properties
                                                                                
Chicago, IL
(River City/Marc Realty)
     60.0 %     1       253,000       769       322       94       353       127       -       -       164       24     38  
Houston, TX
(Multiple LP's)
     31.0 %     1       614,000       1,405       2       -       1,403       817       (11 )     -       726       (123     (28 )
Lisle, IL
(Marc Realty)
     60.0 %     1       54,000       206       76       23       107       80       -       -       39       (5     (7 )
New York, NY
(450 W 14th St)
     70.0 %     1       105,000       1,759       992       194       573       458       152       -       634       (495     128  
Philadelphia, , PA
1515 Market
     49.0 %     1       511,000       1,861       810       264       787       893       174               452       (196     (188 )
              5       1,537,000       6,000       2,202       575       3,223       2,375       315       -       2,015       (795     (57 )
Total Consolidated Properties
     27       4,064,000     $ 15,179     $ 4,930     $ 1,285     $ 8,964     $ 4,506     $ 304     $ -     $ 5,174     $ (795   $ 383  
Line of Credit interest expense
                                       156                                        
Interest expense related to Senior notes
                                       1,671                                        
Interest expense WRT Lender
                                               579                                        
1515 Market interest expense reversed for consolidated statement
                       (880 )                                      
Total
                                                           $ 6,032                                        
 
(1) See definition of Net Operating Income and Net Income / (Loss) from Consolidated Properties on page 37 of the supplemental package.
(2)  The amounts attributable to non-controlling interests for 100% owned properties are from Deer Valley and One East Erie properties prior to the Trust's 2012 acquisitions of the non-controlling interests in these properties.
 
 
30
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS – OPERATING SUMMARY
Three Months Ended March 31, 2013
(In thousands, Unaudited)
 
Venture
  
Number of Properties
    
Square Footage
    
Total Revenue
    
Operating Expenses
    
Real Estate Taxes
  
Net Operating Income (1)
  
Interest Expense
  
Other Income (Expense)
  
Deprec & Amort
    
Net Income / (Loss) from Equity Invest-
ments
    
WRT's Share of Net Income / (Loss) from Equity Investments
  
Marc Realty Portfolio
     4       655,000       2,663       1,194       473       996       315       (10 )     734       (63 )     (31 )
Sealy Venture Portfolio
     3       2,097,000       3,339       854       433       2,052       3,066       (31 )     1,448       (2,493 )     (146 )
Mentor Retail
     1       7,000       142       5       20       117       65       (2 )     16       34       17  
WRT-Elad (2)
     1       942,000       6,404       1,402       900       4,102       4,378       (31 )     2,649       (2,956 )     443  
Vintage Portfolio (2)
     27    
4,655 units
       10,459       4,392       151       5,916       335       1,333       2,756       4,158       1,921  
Wateridge (2)
     1       62,000       228       46       3       179       -       (15 )     153       11       36  
Total Equity Investment
Operating Properties
     37       3,701,000     $ 23,235     $ 7,893     $ 1,980     $ 13,362     $ 8,159     $ 1,244     $ 7,756     $ (1,309 )     2,240  
                                                                                         
                              Marc Realty Portfolio - Amortization of basis differential (3)       (29 )
                              WRT-ROIC Lakeside Eagle-Winthrop's share of net loss from equity investment       (13 )
                              RE CDO Management - Winthrop's share of net income from equity investment       3,770  
                              CDH CDO - Winthrop's share of net income from equity investment       630  
                              Concord Debt Holdings - Winthrop's share of net income from equity investment       49  
                              701 7th Avenue                         697  
                              WRT-SoCal Lender - Winthrop's share of net income from equity Investment       -  
                              Stamford / Mack-Cali - Winthrop's share of net income from equity investment       221  
                              10 Metrotech- Winthrop's share of net income from equity investment       304  
                            Equity in loss of equity investments                           $ 7,869  
 
(1) See definition of Net Operating Income on page 37 of the supplemental package.
(2) Operating results lag 30 days.
(3) 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.
 
 
31
 
 
WINTHROP REALTY TRUST
CONSOLIDATED DEBT SUMMARY
(In thousands, Unaudited)
 
Description
  
Principal
Outstanding
March 31, 2013
    
Coupon
    
2013
Repayment
    
Maturity
Date
    
Amount
Due at
Maturity
    
Weighted
 Average
Maturity
(in years)
  
Fixed rate debt
                                    
Mortgage loans payable
                                    
Amherst, NY
   $ 15,104       5.650 %   $ 15,104       10/2013     $ 14,822        
Chicago, IL  / River City
     8,700       5.500 %     128       04/2015       8,346        
Chicago, IL / Ontario
     20,112       5.750 %     255       03/2016       19,073        
Houston, TX - Note 1
     25,000       5.220 %     -       04/2016       25,000        
Houston, TX - Note 2
     8,800       6.000 %     -       04/2016       8,800        
Houston, TX - Note 3
     17,096       7.500 %     3,695       04/2016       -        
Greensboro, NC
     13,600       6.220 %     -       08/2016       13,600        
Cerritos, CA
     23,000       5.070 %     -       01/2017       23,000        
Lisle, IL / 1050 Corporetum
     5,524       5.550 %     54       03/2017       5,206        
Orlando, FL
     37,426       6.400 %     443       07/2017       34,567        
Plantation, FL
     10,778       6.483 %     93       04/2018       10,046        
Meriden, CT
     21,000       3.950 %     -       11/2022       17,704        
Total mortgage loans payable /Wtd Avg
     206,140       5.747 %     19,772               180,164       3.90  
                                                 
Non-recourse secured financing
                                                
San Marbeya A Participation
     15,150       4.850 %     -       01/2015       15,150          
                                                 
Senior notes payable
     86,250       7.750 %     -       08/2022       86,250          
Total Fixed Rate Debt/ Wtd Avg
     307,540       6.264 %     19,772               281,564       5.33  
Floating rate debt
                                                
Mortgage loans payable
                                                
Memphis, TN/ Waterford (LIBOR+2.5%, 0.5% LIBOR Floor)
     13,337       3.00 %     221       08/2014       12,928          
Lisle, IL / 550-560 Corporetum  (LIBOR + 2.5%, 1% LIBOR Cap)
     5,752       2.70 %     -       10/2014       5,752          
New York, NY (450 W 14th St) (LIBOR + 2.5%, 1% LIBOR Floor)
     51,982       3.50 %     -       05/2016       51,982          
      71,071       3.342 %     221               70,662       2.63  
                                                 
Non-recourse secured financing
                                                
Hotel Wales A Note Payable - (LIBOR + 1.25, 3% Libor Floor)
     14,000       4.250 %     -       10/2013       14,000          
                                                 
Recourse secured financing
                                                
Queensridge (LIBOR + 4.0%)
     13,653       4.200 %     -       11/2014       13,653          
                                                 
Total Floating  Rate Debt/ Wtd Avg
     98,724       3.590 %     221               98,315       2.15  
Total Consolidated Debt/Wtd Avg
   $ 406,264       5.614 %   $ 19,993             $ 379,879       4.57  
 
 
32
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS - DEBT SUMMARY
(In thousands, Unaudited)
 
Description
  
Principal
Outstanding
March 31, 2013
      
Interest Rate
    
Maturity
Date
      
Weighted
 Average
Maturity
(in years)
Fixed rate debt
                            
Sealy - Airpark, Nashville, TN
   $ 74,000         5.77 %  
05/01/12
   (6)      
Sealy - Newmarket, Atlanta, GA
     37,000         6.12 %  
11/01/16
   (6)      
Marc Realty - 4415 West Harrision, Hillside, IL
     4,408         5.62 %  
12/01/15
          
Marc Realty - 1701 East Woodfield, Shaumburg, IL  (1)
     5,470         4.78 %  
09/01/15
          
Marc Realty - 2205-55 Enterprise, Westchester, IL
     8,916         4.30 %  
10/01/19
          
Mentor Retail - 39 South Street, Chicago, IL
     2,497         10.00 %  
09/10/17
          
WRT-Elad - One South State Street
     106,412         11.00 %  
02/01/15
          
VHH - Agave Associates
     2,500         3.50 %  
12/15/36
          
VHH - Bouquet Canyon Seniors
     10,980         6.38 %  
07/01/28
          
VHH - Vintage at Chehalis (2)
     8,190         4.68 %  
06/15/40
          
VHH - Elk Creek Apartments
     7,340         6.54 %  
11/01/39
          
VHH - Falls Creek Apartments
     8,315         6.26 %  
12/01/40
          
VHH - Hamilton Place Seniors
     90         5.88 %  
07/01/14
          
VHH - Heritage Place Apartments
     1,766         8.37 %  
07/19/15
          
VHH - Heritage Place Apartments
     502         1.00 %  
05/01/39
          
VHH - Vintage at Mt. Vernon (3)
     7,500         5.23 %  
01/15/37
          
VHH - Vintage at Mt. Vernon (4)
     1,040         5.98 %  
01/15/37
          
VHH - Vintage at Napa
     6,009         6.21 %  
06/01/34
          
VHH - Vintage at Silverdale (5)
     14,880         5.70 %  
09/15/39
          
VHH - The Bluffs Apartments
     8         3.00 %  
12/15/36
          
VHH - Twin Ponds Apartments
     1,268         6.20 %  
01/01/38
          
VHH - Vintage at Vancouver
     620         8.12 %  
01/01/35
          
VHH - Vista Sonoma Seniors Apts
     9,983         6.56 %  
01/01/32
          
Total Fixed Rate Debt
   $ 319,694  
 Wtd Avg
     7.56 %      
Wtd Avg
    
7.0
 
Notes to Fixed Rate Debt Schedule:
  
(1) An interest rate swap agreement with a notional amount of $5,470 effectively converts the interest rate to a fixed rate of 4.78%.
  
(2) An interest rate swap agreement with a notional amount of $7,925 effectively converts the interest rate to a fixed rate of 4.68%.
  
(3) An interest rate swap agreement with a notional amount of $7,500  effectively converts the interest rate to a fixed rate of 5.23%.
  
(4) An interest rate swap agreement with a notional amount of $1,010 effectively converts the interest rate to a fixed rate of 5.98%.
  
(5) An interest rate swap agreement with a notional amount of $14,410  effectively converts the interest rate to a fixed rate of 5.70%.
  
(6) Currently negotiating restructure of loan with special servicer.
  
(Continued on next page)
 
 
33
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS – DEBT SUMMARY (continued)
Three Months Ended March 31, 2013
(In thousands, Unaudited)
 
Description
  
Principal
Outstanding
March 31, 2013
  
Interest
Rate (1), (2)
    
Coupon
    
Maturity
Date
  
Weighted
 Average
Maturity
(in years)
  
Floating rate debt
                              
Sealy - Northwest Atlanta, Atlanta, GA
     13,737  
LIBOR +
     5.56 %     5.56 %  
09/01/15
      
Marc Realty - 223 West Jackson, Chicago, IL (3)
     6,918  
LIBOR +
     2.25 %     4.25 %  
09/01/17
      
701 Seventh - 701 Seventh Avenue, New York, NY (4)
     375,000  
LIBOR +
     10.20 %     11.20 %  
10/01/15
      
VHH - Agave Associates
     14,600  
SIFMA +
     1.17 %     1.29 %  
10/15/36
      
VHH - Vintage at Bend
     5,500  
SIFMA +
     1.20 %     1.32 %  
12/15/36
      
VHH - Vintage at Bremerton
     6,200  
SIFMA +
     1.09 %     1.21 %  
03/15/33
      
VHH - Vintage at Burien
     6,780  
SIFMA +
     1.47 %     1.59 %  
01/15/38
      
VHH - Vintage at Everett
     16,395  
SIFMA +
     1.44 %     1.56 %  
01/15/38
      
VHH - Forest Creek Apartments
     13,680  
SIFMA +
     1.62 %     1.74 %  
06/15/40
      
VHH - Hamilton Place Seniors
     3,590  
SIFMA +
     1.43 %     1.55 %  
07/01/33
      
VHH - Holly Village Apartments
     6,995  
SIFMA +
     1.44 %     1.56 %  
07/31/32
      
VHH - Larkin Place Apartments
     4,825  
SIFMA +
     1.40 %     1.52 %  
07/01/33
      
VHH - Vintage at Richland
     7,535  
SIFMA +
     1.76 %     1.88 %  
01/15/38
      
VHH - Rosecreek Senior Living
     3,312  
SIFMA +
     0.43 %     0.55 %  
12/31/37
      
VHH - Vintage at Sequim
     6,287  
SIFMA +
     2.30 %     2.42 %  
03/01/38
      
VHH - Silver Creek Apartments
     12,875  
SIFMA +
     1.66 %     1.78 %  
12/15/37
      
VHH - Vintage at Spokane
     16,295  
SIFMA +
     1.37 %     1.49 %  
08/15/40
      
VHH - Seven Hills/ St Rose
     14,770  
SIFMA +
     1.37 %     1.49 %  
10/15/35
      
VHH - The Bluffs Apartments
     18,600  
SIFMA +
     1.38 %     1.50 %  
09/15/34
      
VHH - Twin Ponds Apartments
     5,515  
SIFMA +
     1.60 %     1.72 %  
01/01/38
      
VHH - Vintage at Vancouver
     7,725  
SIFMA +
     2.16 %     2.28 %  
01/01/35
      
Total Floating Rate Debt
     567,134      
Wtd Avg
       8.70 %  
 Wtd Avg
     9.0  
Total Joint Venture Debt
   $ 886,828      
Wtd Avg
       7.89 %  
 Wtd Avg
     8.3  
 
Notes to Floating Rate Debt Schedule:
(1) LIBOR rate used to determine coupon on floating rate debt at March 31, 2013 was 0.2037%
(2) SIFMA = Securities Industry and Financial Markets Association Municipal Swap Index. SIFMA rate used to determine coupon on floating rate debt at February 28, 2013 on the Vintage debt was 0.11%. Each of the Vintage floating rate debt instruments is subject to an interest rate cap ranging from 5.50% and 8.25%.
(3)  Interest rate floor of 4.25%.
(4) Interest rate floor of 1%
 
 
34
 
 
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES LEASE EXPIRATIONS SUMMARY
(Unaudited)

Year of Lease Expirations
  
Net Rentable Square Feet Subject to Expiring Leases
    
Percentage of Leased Square Footage Represented by Expiring Leases (%)
    
Annual Contractual Rent Under Expiring Leases ($)
    
Annual Rent Per Leased Square Foot of Expiring
Leases ($)
  
                         
Consolidated Multi Tenant Operating Properties:
                    
2013
     41,000       4 %   $ 590,000     $ 14.39  
2014
     126,000       13 %     2,289,000       18.17  
2015
     64,000       7 %     1,273,000       19.89  
2016
     83,000       9 %     1,313,000       15.82  
Thereafter
     623,000       67 %     15,795,000       25.35  
                                 
Consolidated Single Tenant Operating Properties:
                          
2013
     200,000       9 %   $ 2,016,000     $ 10.08  
2014
     54,000       2 %     840,000       15.56  
2015
     660,000       31 %     1,278,000       1.94  
2016
     88,000       4 %     382,000       4.34  
Thereafter
     1,143,000       54 %     14,694,000       12.86  
 
Annual contractual rent under expiring leases represents base rent charges for the period and does not reflect any straight-line rent adjustments or expense reimbursements.
 
 
35
 
 
WINTHROP REALTY TRUST
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES OF INCOME TO
NET INCOME ATTRIBUTABLE TO COMMON SHARES
(In thousands)
 
   
Three Months Ended
    
Three Months Ended
    
Three Months Ended
    
Three Months Ended
    
Three Months Ended
  
   
Mar 31,
    
Dec 31,
    
Sep 30,
    
Jun 30,
    
Mar 31,
  
   
2013
    
2012
    
2012
    
2012
    
2012
  
                               
NOI from consolidated properties  (1)(4)
   $ 9,303     $ 7,735     $ 8,443     $ 8,260     $ 6,506  
Less:
                                        
   Interest expense
     (6,032 )     (6,056 )     (4,430 )     (3,447 )     (3,725 )
   Depreciation and amortization
     (5,174 )     (4,794 )     (4,842 )     (4,394 )     (3,636 )
   (Income) loss attributable to non-controlling interest
     795       (188 )     (939 )     473       901  
WRT share of income (loss) from consolidated properties (2)(4)
     (1,108 )     (3,303 )     (1,768 )     892       46  
                                         
Equity in income (loss) of equity investments (3)
     7,869       792       12,644       586       424  
                                         
Add:
                                        
   Interest, dividends and discount accretion
     5,320       6,105       3,722       5,778       5,518  
(Loss) gain on sale of loan securities carried at fair value
     (102 )     614       -       -       -  
Earnings from preferred  equity investments
     202       -       -       -       -  
   Unrealized gain (loss) on loan securities carried at fair value
     -       -       371       (88 )     164  
   Unrealized gain (loss) on securities carried at fair value
     1,718       (338 )     3,113       (791 )     4,932  
   Gain on loan securities carried at fair value
     -       -       -       15       26  
   Gain on sale of equity investment
     -       -       165       232       -  
   Interest and other income
     70       266       242       90       102  
   Income from discontinued operations
     2,913       (8 )     (188 )     51       78  
                                         
Less:
                                        
Income attributable to Series D preferred shares
     (2,787 )     (2,787 )     (2,786 )     (2,787 )     (925 )
Amount allocated to restricted shares
     (2 )      -       -       -       -  
   General and administrative
     (847 )     (3,425 )     (3,098 )     (3,081 )     (2,910 )
   Related party fees
     (2,266 )     -       -       -       -  
Transaction costs
     (6 )     (87 )     (30 )     (183 )     (121 )
   State and local tax expense
     (17 )     (21 )     (65 )     (143 )     (6 )
   Loss on extinguishment of debt
     -       (121 )     -       -       -  
Impairment loss on investment in real estate
     -       (2,562 )     -       -       -  
Net income attributable to Common Shares
   $ 10,957     $ (4,875 )   $ 12,322     $ 571     $ 7,328  
 
(1) See additional NOI detail on Page 23 of the supplemental package.
(2) See detail for the three months ended March 31, 2013 on Page 30 of the supplemental package.
(3) See detail for the three months ended March 31, 2013 on Page 31 of the supplemental package.
(4) See definitions for non-GAAP measures on page 37 of the supplemental package.
 
 
36
 
 
 
WINTHROP REALTY TRUST
SUPPLEMENTAL DEFINITIONS
 
Accretion of Discount - The increase in the value of an instrument such as a loan which was acquired for an amount less than face value.
 
B-Note - A structured junior participation that is part of a first mortgage loan.
 
Funds From Operations - We have adopted the revised definition of Funds from Operations (“FFO”), adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”).  Management considers FFO to be an appropriate measure of performance of a REIT.  We calculate FFO by adjusting net income (loss) (computed in accordance with GAAP, including non-recurring items), for gains (or losses) from sales of properties, real estate related depreciation and amortization, and adjustment for unconsolidated partnerships and ventures.  Management believes that in order to facilitate a clear understanding of our historical operating results, FFO should be considered in conjunction with net income as presented in the consolidated financial statements included elsewhere herein.  Management considers FFO to be a useful measure for reviewing our comparative operating and financial performance because, by excluding gains and losses related to sales of previously depreciated operating real estate assets and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies.
 
Our calculation of FFO may not be directly comparable to FFO reported by other REITs or similar real estate companies that have not adopted the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently.  FFO is not a GAAP financial measure and should not be considered as an alternative to net income (loss), the most directly comparable financial measure of our performance calculated and presented in accordance with GAAP, as an indication of our performance.  FFO does not represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of our ability to make cash distributions.  We believe that to further understand our performance; FFO should be compared with our reported net income and considered in addition to cash flows in accordance with GAAP, as presented in our consolidated financial statements.
 
Internal Rate of Return (IRR) – The internal rate of return is the annualized effected compound return rate of an investment.  Specifically, it is the discount rate that equates the cost of an investment with the present value of the cash generated by that investment.
 
LIBOR – London Inter Bank Offer Rate
 
Mezzanine Loan – A loan secured by an ownership interest of the entity which owns the property and which is subordinate to a first mortgage loan.
 
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.
 
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, exclusive of depreciation, amortization and capital expenditures. 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.
 
 
37
 
 
WINTHROP REALTY TRUST
SUPPLEMENTAL DEFINITIONS (Continued)
 
Rake Bond – A junior interest in a securitized mortgage loan which has been structured in one or more classes of Collateralized Mortgage Backed Securities (“CMBS”).  Rake bonds are classes of CMBS issued in a transaction that solely relate to one particular mortgage loan.
 
SIFMA - Securities Industry and Financial Markets Association Municipal Swap Index
 
Whole Loan – An investment in an original mortgage loan instead of a loan comprised of one or more lenders.
 
 
38
 
 
WINTHROP REALTY TRUST
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
 
 
ANALYST COVERAGE
Analyst
Firm
Contact Information
     
Joshua A. Barber
Stifel Nicolaus
(443) 224-1347
jabarber@stifel.com
     
Ross L. Smotrich
Barclays Capital
(212) 526-2306
ross.smotrich@barcap.com
     
Ryan Bennett
Barclays Capital
(212) 526-5309
ryan.bennett@barclayscapital.com
     
Jordan Sadler    
KeyBanc
(917) 368-2280
jsadler@keybanccm.com
     
Craig Mailman
KeyBanc
(917) 368-2316
cmailman@keybanccm.com
     
Ryan Meliker   
MLV & Co.
(646)-556-9184
rmeliker@mlvco.com
  
Winthrop Realty Trust is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Winthrop Realty Trust's performance made by the analyst is theirs alone and does not represent opinions, forecasts or predictions of Winthrop Realty Trust or its management. Winthrop Realty Trust does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.
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