Reportable Segments

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Reportable Segments

16. Reportable Segments

FASB guidance on segment reporting establishes standards for the way that public business enterprises report information about reportable segments in financial statements and requires that those enterprises report selected financial information about reportable segments in interim financial reports issued to shareholders.

Based on the Trust’s method of internal reporting, management determined that it has three reportable segments: (i) the ownership of operating properties; (ii) the origination and acquisition of loans and debt securities secured directly or indirectly by commercial and multi-family real property – collectively, loan assets; and (iii) the ownership of equity and debt securities in other REITs – REIT securities.

The operating properties segment includes all of the Trust’s wholly and partially owned operating properties. The loan assets segment includes all of the Trust’s activities related to real estate loans including loans receivable, loan securities and equity investments in loan related entities. The REIT securities segment includes all of the Trust’s activities related to the ownership of securities in other publicly traded real estate companies. In addition to its three reportable segments, the Trust reports non-segment specific income and expense under corporate income (expense).

The following table summarizes the Trust’s assets by reportable segment for the periods ended March 31, 2014 and December 31, 2013 (in thousands):

	March 31, 2014		December 31, 2013
Assets
Operating properties	$	897,195	$	845,698
Loan assets		95,279		147,702
REIT securities		—		—
Corporate
Cash and cash equivalents		102,512		112,512
Restricted cash		3,048		186
Accounts receivable and prepaids		382		543
Deferred financing costs		2,543		2,645
Assets held for sale		25,156		23,038
Total Assets	$	1,126,115	$	1,132,324
Capital Expenditures
Operating Properties	$	1,408	$	3,892

The Trust defines operating income for each segment presented as all items of income and expense directly derived from or incurred by each reportable segment before depreciation, amortization, interest expense and other non-recurring non-operating items. Interest on cash reserves, general and administrative expenses and other non-segment specific income and expense items are reported under corporate income (expense). The following table presents a summary of revenues from operating properties, loan assets and REIT securities and expenses incurred by each segment for the three months ended March 31, 2014 and 2013 (in thousands):

	For the Three Months Ended
	March 31, 2014			March 31, 2013
Operating Properties
Rents and reimbursements	$	19,507		$	12,054
Operating expenses		(7,434	)		(3,685	)
Real estate taxes		(2,194	)		(737	)
Equity in earnings of preferred equity investment in Fenway-Wateridge		7			202
Equity in loss of Sealy Northwest Atlanta		(128	)		(146	)
Equity in loss of Marc Realty investment		(5	)		(60	)
Equity in income of WRT-Elad		1,236			443
Equity in income of Vintage Housing		1,620			1,921
Equity in income of 701 Seventh Avenue		1,558			697
Equity in income of Fenway-Wateridge		52			36
Equity in income of Mentor		20			17
Equity in loss of Atrium Mall		(3	)		—
Operating properties operating income		14,236			10,742
Depreciation and amortization expense		(7,399	)		(4,154	)
Interest expense		(3,771	)		(3,284	)
Impairment loss on investments in real estate		(9,200	)		—
Operating properties net (loss) income		(6,134	)		3,304
Loan Assets
Interest		4,292			4,454
Discount accretion		1,205			716
Equity in loss of ROIC Lakeside Eagle		(11	)		(13	)
Equity in income of Concord Debt Holdings		266			35
Equity in income of CDH CDO		433			150
Equity in income of Concord Debt Holdings (1)		90			14
Equity in income of CDH CDO (1)		833			480
Equity in income of WRT-Stamford		229			221
Equity in income of RE CDO management		4			3,770
Equity in income of 10 Metrotech		—			304
Loan assets operating income		7,341			10,131
General and administrative expense		(216	)		(14	)
Interest expense		(121	)		(580	)
Loan assets net income		7,004			9,537
REIT Securities
Interest and dividends					150
Gain (loss) on sale of securities carried at fair value		—			(102	)
Unrealized gain on securities carried at fair value		2			1,718
REIT securities net income		—			1,766
Net income from segments before corporate income (expense)		872			14,607
Reconciliations to GAAP Net Income:
Corporate Income (Expense)
Interest income		85			69
Interest expense		(1,801	)		(1,827	)
General and administrative		(1,426	)		(830	)
Related party fees		(2,375	)		(2,266	)
Transaction costs		(250	)		(6	)
State and local taxes		(12	)		(14	)
(Loss) income from continuing operations before non-controlling		(4,907	)		9,733
Non-controlling interest		1,443			795
(Loss) income from continuing operations		(3,464	)		10,528
Income from discontinued operations		4,105			3,218
Net Income Attributable to Winthrop Realty Trust	$	641		$	13,746

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