0001193805-14-000407.txt : 20140307 0001193805-14-000407.hdr.sgml : 20140307 20140307143334 ACCESSION NUMBER: 0001193805-14-000407 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20140306 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: 20140307 DATE AS OF CHANGE: 20140307 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: 14676548 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 e611942_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) March 6, 2014
 
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 March 6, 2014, Winthrop Realty Trust (the “Trust”) issued a press release announcing its financial results for the three months and year ended December 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 March 6, 2014, 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 quarter and twelve months ended December 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 March 6, 2014, the Trust’s management discussed the Trust’s financial results for the quarter and year ended December 31, 2013 on a conference call with analysts and investors.  A replay of the conference call is available through April 6, 2014 by dialing (877) 660-6853; account #286, conference ID #13575551.  Both a transcript of the conference call and an online replay of the conference call is 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 March 6, 2014, 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 April 1, 2014 to Series D Preferred Shareholders of record on March 20, 2014.

On March 6, 2014, 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 April 15, 2014 to common shareholders of record on March 31, 2014.
 
Item 9.01      Financial Statements and Exhibits.

(c)           Exhibits

 
99.1
Press Release dated March 6, 2014
 
99.2
Supplemental Reporting Package for the quarter and twelve months ended December 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 7th day of March, 2014.

 
WINTHROP REALTY TRUST
  
       
 
By:
/s/ Michael L. Ashner  
   
Michael L. Ashner
  
   
Chairman and Chief Executive Office
  
       
 
 
 
 
 
Exhibit Index


 
99.1
Press Release dated March 6, 2014
 
99.2
Supplemental Reporting Package for the quarter and twelve months ended December 31, 2013
EX-99.1 2 e611942_ex99-1.htm Unassociated Document
WINTHROP REALTY TRUST ANNOUNCES RESULTS FOR
FOURTH QUARTER AND FULL YEAR 2013

~Declares First Quarter 2014 Dividends~


FOR IMMEDIATE RELEASE

Boston, Massachusetts – March 6, 2014 – Winthrop Realty Trust (NYSE:FUR), a leading real estate value investor, today announced financial and operating results for the fourth quarter and full year ended December 31, 2013.  All per share amounts are on a diluted basis.

Financial Results

Three Months Ended December 31, 2013

Net loss applicable to common shares for the quarter ended December 31, 2013 was ($8.0) million or ($0.22) per common share as compared with net loss of ($4.9) million or ($0.15) per common share for the quarter ended December 31, 2012.  Included in this loss is ($7.7) million related to non-cash impairments recognized in the fourth quarter of 2013 on certain of our joint ventures with Marc Realty.
 
For the quarter ended December 31, 2013, Winthrop reported Funds from Operations (“FFO”) applicable to common shares of $7.8 million or $0.22 per common share as compared with FFO of $5.0 million or $0.15 per common share for the fourth quarter of 2012.

Year Ended December 31, 2013

Net income applicable to common shares for the year ended December 31, 2013 was $17.3 million or $0.51 per common share as compared with net income of $15.3 million or $0.46 per common share for the year ended December 31, 2012.
 
FFO for the year ended December 31, 2013 was $45.8 million or $1.36 per common share as compared with FFO of $46.4 million, or $1.40 per common share for the year ended December 31, 2012.

Net Asset Value as of December 31, 2013 and Performance Table

Winthrop’s estimated range of net asset value per common share (“NAV”) at December 31, 2013 was $13.80 to $15.83 as compared to $12.98 to $15.01 at September 30, 2013.  Winthrop’s quarterly supplemental report contains a five year investment performance table that presents the internal rate of return for each investment made and sold or otherwise liquidated since January 1, 2009.  The pooled weighted internal rate of return on these investments is 34%.  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 Fourth Quarter Activity and Subsequent Events

Fourth Quarter

 
·
Acquired four recently constructed Class A luxury high rise apartment buildings containing an aggregate of 761 units for a purchase price of $246.0 million.  The properties are located in Phoenix, Arizona; San Pedro, California; Stamford, Connecticut; and Houston, Texas.  In connection with the acquisition Winthrop obtained a $150.0 million loan that bears interest at a rate of LIBOR plus 200 basis points (subject to adjustment), requires payments of interest only and has an initial term of three years with two, one-year extensions.

 
·
Admitted a partner into the entity that acquired the four luxury apartment properties for approximately $16.4 million in exchange for an approximately 16.3% interest in such entity.  Winthrop retained the remaining 83.7% interest.
 
 
 
 
 
 
·
Refinanced the existing $110.6 million mortgage loan made to the joint venture which owns Sullivan Center, the 942,000 square foot office and retail property located at One South State Street, in downtown Chicago, Illinois.  The existing mortgage bore interest at 11% per annum.  The new $113.5 million loan bears interest at a rate of 3.95% per annum, requires payments of interest only and matures November 2018.

 
·
Acquired through an 80% owned venture, a 184-unit garden apartment complex known as Summit Pointe Apartments located in Oklahoma City, Oklahoma.  Winthrop contributed approximately $5.0 million to the venture.  Pursuant to the terms of the venture agreement, Winthrop holds a preferred equity interest which entitles Winthrop to an 8% preferred return from cash flow and, upon disposition of the property, a minimum preferred return equal to a 12% IRR and, after Winthrop’s partner receives its capital back with a 12% return, 60% of the remaining proceeds.
 
 
·
Received a partial repayment of $6.3 million on the $6.5 million preferred equity investment in the venture that acquired a 62,150 square foot office building in Sorrento Mesa (San Diego), California.  Winthrop retains the balance of its preferred investment along with a 50% equity interest in the property.

 
·
Sold the Lisle, Illinois office property known as 701 Arboretum for gross sale proceeds of $2.5 million.  At September 30, 2013 Winthrop reported in its supplemental report a net asset value of $2.5 million.

 
·
Received full repayment of the $3.0 million loan collateralized by the property known as Renaissance Walk located in Atlanta, Georgia.

 
 
·
Leased occupancy at our consolidated office and retail properties increased from 88.6% at September 30, 2013 to 91.17% at December 31, 2013.  This increase of approximately 95,000 square feet was mostly due to improved occupancy at our office building located in Philadelphia, Pennsylvania.

Subsequent Events

 
·
Made additional capital contributions to the 701 Seventh Avenue, New York, New York venture bringing Winthrop’s aggregate capital contributions to date to $86.9 million.  In January 2014, the property’s existing indebtedness was refinanced with a new $237.5 million mortgage loan and $315.0 million mezzanine loan to be advanced for construction costs at the property which loans bear interest at LIBOR plus 8% per annum, require payments of interest only and mature January 31, 2017, subject to two, one-year extension terms.  In addition, the venture entered into two additional loan agreements providing for supplemental loans of $262.5 million which, subject to certain conditions, the venture will draw on such loans to provide additional construction financing in order to develop a 452 room hotel which will be constructed above the retail component.  If fully funded, the maximum aggregate debt among the various loans funded would be $815.0 million.

 
·
Simultaneous with entering into the loans, the 701 Seventh Avenue venture executed an agreement with a wholly-owned affiliate of Marriott International, Inc. (NASDAQ: MAR) to manage and operate an “EDITION” hotel at the property.  The hotel will include 452 rooms and approximately 30,000 square feet of food, beverage and entertainment space.
 
 
·
Originated a $15,500,000 mezzanine loan secured by a majority of the limited partnership interests in entities controlled by Freed Management that indirectly hold two retail shopping centers in Chicago, Illinois and acquired for $500,000 their general partner interests in such entities.  The loan bears interest at LIBOR plus 12% (increasing by 100 basis points in each extended term), requires payments of current interest at a rate of 10% per annum (increasing by 50 basis points each year) and has a three-year term, subject to two, one-year extensions.  Upon satisfaction of the loan, Winthrop will be entitled to a participation interest equal to the greater of (i) a 14.5% IRR (increasing to 15.5% IRR after the initial term) and (ii) 30% (increasing by 40% after the initial term and 50% after the first extended term) of the value of the properties in excess of $115 million.  As additional collateral for the loan, Winthrop acquired a pledge of the interests held by Freed Management and its affiliates in the Sullivan Center and Mentor Retail ventures.
 
 
2
 
 
 
·
Sold our Newbury Apartments property located in Meriden, Connecticut property for gross sale proceeds of $27.5 million.  Winthrop’s reported range of property values for this property was $27.4 million to $27.7 million in its September 30, 2013 supplemental report.

 
·
Sold all of its interests in the loans secured directly or indirectly by Hotel Wales, Wellington Tower, 500-512 Seventh Avenue, Legacy Orchard and San Marbeya for an aggregate sales price of $42.9 million.  In connection with the sale, Winthrop retained an interest only participation in each of the Legacy Orchard loan and the Hotel Wales loan entitling Winthrop to payments equal to interest at 2.5% per annum on the principal amount of the Legacy Orchard loan and 0.5% per annum on the principal amount of the Hotel Wales loan.  The sale of these loans resulted in a 16% IRR on Winthrop’s investment.

 
·
Sold its interests in the Marc Realty ventures related to 4415 West Harrison, Hillside, Illinois; 1701 E. Woodfield, Schaumburg, Illinois; 2205-55 Enterprise, Westchester, Illinois; and River City, Chicago, Illinois for a gross sales price of $6.0 million.  In addition, Winthrop granted to Marc Realty an option exercisable within two years to acquire Winthrop’s interest in the 223 W. Jackson, Chicago, Illinois venture for a purchase price, depending on adjustments and timing, expected to be not less than $5.8 million.  The sales price and option price on Winthrop’s interests is consistent with the aggregate net asset value of these assets as provided in Winthrop’s September 30, 2013 supplemental financial report.
 
Fourth Quarter 2013 Dividend Declarations

The Company’s Board of Trustees is declaring a regular quarterly cash dividend for the first quarter of 2014 of $0.1625 per common share payable on April 15, 2014 to common shareholders of record on March 31, 2014.

The Company’s Board of Trustees is also declaring a regular quarterly cash dividend for the first quarter of 2014 of $0.578125 per Series D preferred share payable on April 1, 2014 to Series D preferred shareholders of record on March 20, 2014.

Conference Call Information

The Company will host a conference call to discuss its fourth quarter 2014 results today, Thursday, March 6, 2014 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.  An online replay will be available for one year.  A replay of the call will be available through April 6, 2014 by dialing (877) 660-6853; conference ID #13575551.

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 collateralized debt, REIT preferred and common stock. For more information, please visit our website at www.winthropreit.com.

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
 
 
Consolidated Financial Results

Financial results for the three months and year ended December 31, 2013 and December 31, 2012 are as follows (in thousands except per share amounts):

   
(unaudited)
    
(unaudited)
  
   
For the Three Months Ended
December 31,
    
For Year Ended
December 31,
  
   
2013
    
2012
    
2013
    
2012
  
             
Revenue
                        
   Rents and reimbursements
     18,317     $ 11,447     $ 61,103     $ 44,213  
   Interest, dividends and discount accretion
     4,910        6,106       18,455        21,123  
      23,227       17,553       79,558       65,336  
Expenses
                                
   Property operating
     6,745       3,648       20,724       13,614  
   Real estate taxes
     2,113       1,019       5,876       3,672  
   Depreciation and amortization
     6,391       4,158       20,443       15,119  
   Interest
     5,886       5,746       23,412       16,995  
   Impairment loss on investments in real estate
     -       1,738       -       1,738  
   Provision for loss on loans receivable
     348       -       348       -  
   General and administrative
     1,316       1,098       4,363       3,529  
   Related party fees
     2,423       2,312       9,289       8,953  
   Transaction costs
     1,727       86       1,885       421  
   Federal, state and local taxes
     203       21       430       232  
      27,152       19,826       86,770       64,273  
Other income (loss)
                                
                                 
   Equity in income (loss) of equity investments,
      (inclusive of impairments of $7,687, $0, $7,687 and $0)
     (3,609 )     792       22,641       14,843  
   Earnings from preferred equity investments
     37       -       613       -  
   Realized gain on sale of securities carried at fair value
     875       -       742       41  
   Unrealized gain (loss) on securities carried at fair value
     -       (338 )     (142 )     6,916  
   Loss on extinguishment of debt
     -       (121 )     -       (121 )
   Realized gain on loan securities carried at fair value
     -       614       -       614  
   Unrealized gain on loan securities carried at fair value
     -       -       215       447  
   Settlement expense
     (261 )     -       (411 )     -  
   Interest and other income
     89       266       375       699  
      (2,869 )     1,213       24,033       23,439  
                                 
Income (loss) from continuing operations
     (6,794 )     (1,060 )     16,821       24,502  
                                 
Discontinued operations
                                
   Net income (loss) from discontinued operations
     (147 )     (840 )     7,667       (118 )
                                 
Net income (loss)
     (6,941 )     (1,900 )     24,488       24,384  
   Net (income) loss attributable to non-controlling interest
     1,871       (188 )     4,290       247  
Net income (loss) attributable to Winthrop Realty Trust
     (5,070 )     (2,088 )     28,778       24,631  
    Preferred dividend of Series D Preferred Shares
     (2,786 )     (2,787 )     (11,146 )     (9,285 )
    Amount allocated to Restricted Common Shares
     (96 )     -       (307 )     -  
                                 
    Net income (loss) attributable to Common Shares
   $ (7,952 )   $ (4,875 )   $ 17,325     $ 15,346  
                                 
Per Common Share Data – Basic
                                
Income (loss) from continuing operations
   $ (0.22 )   $ (0.12 )   $ 0.28     $ 0.46  
Income (loss) from discontinued operations
     -       (0.03 )     0.23       -  
Net income (loss) attributable to Common Shares
   $ (0.22 )   $ (0.15 )   $ 0.51     $ 0.46  
                                 
Per Common Share Data – Diluted
                                
Income (loss) from continuing operations
   $ (0.22 )   $ (0.12 )   $ 0.28     $ 0.46  
Income (loss) from discontinued operations
     -       (0.03 )     0.23       -  
Net income (loss) attributable to Common Shares
   $ (0.22 )   $ (0.15 )   $ 0.51     $ 0.46  
                                 
Basic Weighted-Average Common Shares
     35,807       33,056       33,743       33,062  
Diluted Weighted-Average Common Shares
     35,879       33,056       33,774       33,062  
                                 
Comprehensive income (loss)
                                
   Net income (loss)
     (6,941 )   $ (1,900 )   $ 24,488     $ 24,384  
   Change in unrealized gain (loss) on interest rate
     derivatives
     (54 )     115       (74 )     42  
   Consolidated comprehensive income (loss)
     (6,995 )     (1,785 )     24,414       24,426  
                                 
(Income) loss attributable to non-controlling interest
     1,871       (188 )     4,290       247  
Comprehensive (income) loss attributable to non-controlling
   interest
      1,871       (188 )      4,290        247  
Comprehensive income (loss) attributable to Winthrop
   Realty Trust
   $ (5,124 )   $ (1,973 )   $ 28,704     $ 24,673  
 
 
4
 
 
Funds From Operations:

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

   
(unaudited)
    
(unaudited)
  
   
For the Three Months Ended
December 31,
    
For the Year Ended
December 31,
  
   
2013
    
2012
    
2013
    
2012
  
                         
Net income (loss) attributable to Winthrop
    Realty Trust
   $ (5,070 )   $ (2,088 )   $ 28,778     $ 24,631  
Real estate depreciation
     4,006       3,116       13,671       11,281  
Amortization of capitalized leasing costs
     2,608       1,679       8,235       6,785  
Gain on sale of real estate
     (57 )     -       (11,005 )     (945 )
(Gain) loss on sale of equity investments
     -       72       110       (199 )
Trust’s share of real estate depreciation and
   amortization of unconsolidated interests
     2,842       3,122       10,314       13,752  
Trust’s share of loss on sale of real estate of
   unconsolidated interests
     -       -       722       -  
Impairment loss on investments in real estate
     -       2,562       2,904       3,260  
Impairment loss on equity investments
     7,687       -       7,687       -  
Less: Non-controlling interest share of real
    estate depreciation and amortization
     (1,290 )     (686 )     (4,146 )     (2,831 )
                                 
Funds from operations
     10,726       7,777       57,270       55,734  
Preferred dividends on Series D Preferred
   Shares
     (2,786 )     (2,787 )     (11,146 )     (9,285 )
Amount allocated to restricted shares
     (96 )     -       (307 )     -  
FFO applicable to Common shares-Basic
   $ 7,844     $ 4,990     $ 45,817     $ 46,449  
                                 
Weighted-average Common shares
     35,807       33,056       33,743       33,062  
                                 
FFO Per Common Share-Basic
   $ 0.22     $ 0.15     $ 1.36     $ 1.40  
                                 
Diluted
                                
Funds from operations (per above)
   $ 10,726     $ 7,777     $ 57,270     $ 55,734  
Preferred dividend on Series D Preferred
   Shares
     (2,786 )     (2,787 )     (11,146 )     (9,285 )
Amount allocated to restricted shares
     (96 )     -       (307 )     -  
FFO applicable to Common shares
   $ 7,844     $ 4,990     $ 45,817     $ 46,449  
                                 
   Weighted-average Common shares
     35,807       33,056       33,743       33,062  
   Stock options
     -       -       -       -  
   Restricted shares
     72       -       31       -  
Diluted weighted-average Common Shares
     35,879       33,056       33,774       33,062  
FFO Per Common Share-Diluted
   $ 0.22     $ 0.15     $ 1.36     $ 1.40  
 
 
5
 
 
FFO is computed in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”).  Winthrop calculates FFO by adjusting net income (loss) (computed in accordance with accounting principles generally accepted in the United States (“GAAP”), including non-recurring items), for gains (or losses) from sales of properties, impairments, real estate related depreciation and amortization, and depreciation and amortization related to unconsolidated partnerships and 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.

Consolidated Balance Sheets:
(in thousands, except share data)

   
December 31,
  
   
2013
    
2012
  
   
(unaudited)
    
(unaudited)
  
ASSETS
            
   Investments in real estate, at cost
            
       Land
   $ 82,215     $ 43,252  
       Buildings and improvements
     588,653       378,737  
      670,868       421,989  
   Less: accumulated depreciation
     (56,448 )     (51,553 )
   Investments in real estate, net
     614,420       370,436  
                 
   Cash and cash equivalents
     112,512       97,682  
   Restricted cash held in escrows
     13,372       13,250  
   Loans receivable, net
     101,100       211,250  
   Secured financing receivable
     30,728       -  
   Accounts receivable, net of allowances of $414 and
      $374, respectively
     2,229       1,418  
   Accrued rental income
     19,760       17,241  
   Securities carried at fair value
     -       19,694  
   Loan securities carried at fair value
     226       11  
   Preferred equity investments
     6,485       12,250  
   Equity investments
     149,085       134,859  
   Lease intangibles, net
     49,866       37,744  
   Deferred financing costs, net
     6,189       4,864  
   Other assets
     3,314       2,464  
   Assets held for sale
     23,038       -  
       TOTAL ASSETS
   $ 1,132,324     $ 923,163  
                 
LIABILITIES
                
                 
   Mortgage loans payable
   $ 444,933     $ 280,576  
   Senior notes payable
     86,250       86,250  
   Secured financings
     29,150       52,920  
   Notes payable
     1,742       1,676  
   Accounts payable, accrued liabilities and other liabilities
     26,266       21,056  
   Related party fees payable
     2,831       2,664  
   Dividends payable
     6,099       5,366  
   Deferred income
     1,353       1,136  
   Below market lease intangibles, net
     2,399       2,255  
   Liabilities of assets held for sale
     21,638       -  
       TOTAL LIABILITIES
     622,661       453,899  
 
 
6
 
 
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 both issued and
   outstanding at December 31, 2013 and
   December 31, 2012
     120,500       120,500  
 
   Common shares of Beneficial Interest, $1 par, unlimited
   shares authorized; 36,401,438 and 33,018,711 issued and
   outstanding at December 31, 2013 and December 31,
   2012, respectively
         35,809            33,019  
   Additional paid-in capital
     647,121       618,426  
   Accumulated distributions in excess of net income
     (322,432 )     (317,385 )
   Accumulated other comprehensive loss
     (124 )     (50 )
          Total Winthrop Realty Trust Shareholders’ Equity
     480,874       454,510  
   Non-controlling interests
     28,789       14,754  
          Total  Equity
     509,663       469,264  
       TOTAL LIABILITIES AND EQUITY
   $ 1,132,324     $ 923,163  

Further details regarding the Company’s results of operations, properties, joint ventures and tenants are available in the Company’s Form 10-K for the quarter and year ended December 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 Garilli
Chief Financial Officer
(617) 570-4614
 
7
 
 EX-99.2 3 e611942_ex99-2.htm Unassociated Document  







Winthrop Realty Trust
Supplemental Operating and Financial Data
For the Period Ended December 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
Five Year 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
31
Equity Investments – Operating Summary
32
Consolidated Debt Summary
33
Equity Investments Debt Summary
34
Lease Expiration Summary
36
Reconciliation of Non-GAAP financial measures of income to net income attributable to Common Shares
37
Supplemental Definitions
38
Investor Information
40


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)
 
   
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
   
2013
    
2013
    
2013
    
2013
    
2012
  
ASSETS
                              
Investments in real estate, at cost
                              
Land
   $ 82,215     $ 56,894     $ 59,183     $ 60,679     $ 43,252  
Buildings and improvements
     588,653       380,240       385,370       395,799       378,737  
      670,868       437,134       444,553       456,478       421,989  
Less: accumulated depreciation
     (56,448 )     (55,195 )     (53,553 )     (52,412 )     (51,553 )
Investments in real estate, net
     614,420       381,939       391,000       404,066       370,436  
Cash and cash equivalents
     112,512       165,762       186,132       131,448       97,682  
Restricted cash held in escrows
     13,372       19,084       19,422       15,821       13,250  
   
Loans receivable, net
     101,100       108,163       113,308       130,212       211,250  
Secured financing receivable
     30,728       30,395       -       -       -  
Accounts receivable, net of allowances of $414, $478
                                        
$474, $458 and $374, respectively
     2,229       997       1,587       1,325       1,418  
Accrued rental income
     19,760       19,205       15,801       16,761       17,241  
Securities carried at fair value
     -       7,074       10,360       12,220       19,694  
Loan securities carried at fair value
     226       226       226       11       11  
Preferred equity investments
     6,485       12,703       12,514       12,358       12,250  
Equity investments
     149,085       139,061       141,645       134,224       134,859  
Lease intangibles, net
     49,866       48,774       48,348       52,299       37,744  
Deferred financing costs, net
     6,189       4,546       4,819       4,755       4,864  
Other assets
     3,314       28,135       3,440       3,577       2,464  
Assets held for sale
     23,038       2,421       1,708       -       -  
TOTAL ASSETS
   $ 1,132,324     $ 968,485     $ 950,310     $ 919,077     $ 923,163  
   
LIABILITIES
                                        
Mortgage loans payable
   $ 444,933     $ 308,049     $ 325,026     $ 278,824     $ 280,576  
Senior notes payable
     86,250       86,250       86,250       86,250       86,250  
Secured Financings
     29,150       29,150       29,150       42,803       52,920  
Notes payable
     1,742       1,664       1,645       1,660       1,676  
Accounts payable, accrued liabilities and other liabilities
     26,266       21,522       19,202       20,010       21,056  
Related party fees payable
     2,831       2,693       2,658       2,540       2,664  
Dividends payable
     6,099       8,804       8,268       8,154       5,366  
Deferred income
     1,353       995       1,131       1,472       1,136  
Below market lease intangibles, net
     2,399       2,280       2,483       2,686       2,255  
Liabilities of assets held for sale
     21,638       -       -       -       -  
TOTAL LIABILITIES
     622,661       461,407       475,813       444,399       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 Dec 31, Sep 30, June 30 and Mar 31, 2013 and Dec 31, 2012
     120,500       120,500       120,500       120,500       120,500  
Common Shares, $1 par, unlimited shares authorized; 36,401,438, 36,397,949, 33,397,949, 33,128,853 and 33,018,711 , issued and outstanding at Dec 31, 2013, Sep 30, 2013, June 30, 2013, Mar 31, 2013 and Dec 31, 2012, respectively
     35,809       35,798       33,039       33,029       33,019  
Additional paid-in capital
     647,121       646,620       618,954       618,626       618,426  
Accumulated distributions in excess of net income
     (322,432 )     (308,661 )     (311,688 )     (311,793 )     (317,385 )
Accumulated other comprehensive loss
     (124 )     (70 )     80       (51 )     (50 )
Total Winthrop Realty Trust Shareholders’ Equity
     480,874       494,187       460,885       460,311       454,510  
Non-controlling interests
     28,789       12,891       13,612       14,367       14,754  
Total Equity
     509,663       507,078       474,497       474,678       469,264  
TOTAL LIABILITIES AND EQUITY
   $ 1,132,324     $ 968,485     $ 950,310     $ 919,077     $ 923,163  
 
 
1
 
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
 
   
Years Ended December 31,
  
   
2013
    
2012
    
2011
  
Revenue
                  
Rents and reimbursements
   $ 61,103     $ 44,213     $ 35,848  
Interest, dividends and discount accretion
     18,455       21,123       25,458  
      79,558       65,336       61,306  
Expenses
                        
Property operating
     20,724       13,614       12,437  
Real estate taxes
     5,876       3,672       3,541  
Depreciation and amortization
     20,443       15,119       10,692  
Interest
     23,412       16,995       14,001  
Impairment loss on investment in real estate
     -       1,738       4,600  
Provision for loss on loans receivable
     348       -       -  
General and administrative
     4,363       3,529       3,527  
Related party fees
     9,289       8,953       7,690  
Transaction costs
     1,885       421       519  
Federal, state and local taxes
     430       232       376  
      86,770       64,273       57,383  
   
Other income (loss)
                        
Equity in income (loss) of equity investments (inclusive of
                        
impairments of $7,687, $0 and $21,058)
     22,641       14,843       (12,712 )
Earnings from preferred equity investments
     613       -       338  
Realized gain on sale of securities carried at fair value
     742       41       123  
Unrealized gain (loss) on securities carried at fair value
     (142 )     6,916       2,788  
Gain (loss) on extinguishment of debt, net
     -       (121 )     6,339  
Realized gain on loan securities carried at fair value
     -       614       -  
Unrealized gain on loan securities carried at fair value
     215       447       2,738  
Settlement income (expense)
     (411 )     -       5,868  
Gain on consolidation of property
     -       -       818  
Interest and other income
     375       699       1,175  
      24,033       23,439       7,475  
Income from continuing operations
     16,821       24,502       11,398  
Discontinued operations
                        
Net income (loss) from discontinued operations
     7,667       (118 )     349  
Net income
     24,488       24,384       11,747  
Net loss (income) attributable to non-controlling interest
     4,290       247       (814 )
Net income attributable to Winthrop Realty Trust
     28,778       24,631       10,933  
Preferred dividend of Series C Preferred Shares
     -       -       (585 )
Preferred dividend of Series D Preferred Shares
     (11,146 )     (9,285 )     (339 )
Amount allocated to Restricted Common Shares
     (307 )     -       -  
Net income attributable to Common Shares
   $ 17,325     $ 15,346     $ 10,009  
Per Common S hare data - Basic
                        
Income from continuing operations
   $ 0.28     $ 0.46     $ 0.31  
Income (loss) from discontinued operations
     0.23       -       0.01  
Net income attributable to Common Shares
   $ 0.51     $ 0.46     $ 0.32  
Per Common S hare data - Diluted
                        
Income from continuing operations
   $ 0.28     $ 0.46     $ 0.31  
Income (loss) from discontinued operations
     0.23       -       0.01  
Net income attributable to Common Shares
   $ 0.51     $ 0.46     $ 0.32  
Basic Weighted-Average Common S hares
     33,743       33,062       31,428  
Diluted Weighted-Average Common S hares
     33,774       33,062       31,428  
Comprehensive income
                        
Net income
   $ 24,488     $ 24,384     $ 11,747  
Change in unrealized gain (loss) on interest rate derivatives
     (74 )     42       (29 )
Consolidated comprehensive income
     24,414       24,426       11,718  
Net (income) loss attributable to non-controlling interest
     4,290       247       (814 )
Comprehensive (income) loss attributable to non-controlling interest
     4,290       247       (814 )
Comprehensive income attributable to Winthrop Realty Trust
   $ 28,704     $ 24,673     $ 10,904  
 
 
2
 
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share data, continued)
(Unaudited)
 
   
Three Months Ended
  
    December 31,  
 September 30,
    
June 30,
    
March 31,
    
December 31,
  
   
2013
    
2013
    
2013
    
2013
    
2012
  
Revenue
                              
Rents and reimbursements
   $ 18,317     $ 14,338     $ 14,732     $ 13,716     $ 11,447  
Interest, dividends and discount accretion
     4,910       3,917       4,308       5,320       6,106  
      23,227       18,255       19,040       19,036       17,553  
Expenses
                                        
Property operating
     6,745       5,022       4,529       4,428       3,648  
Real estate taxes
     2,113       1,562       1,486       715       1,019  
Depreciation and amortization
     6,391       4,706       4,704       4,642       4,158  
Interest
     5,886       5,216       6,492       5,818       5,746  
Impairment loss on investment in real estate
     -       -       -       -       1,738  
Provision for loss on loans receivable
     348       -       -       -       -  
General and administrative
     1,316       1,109       1,094       844       1,098  
Related party fees
     2,423       2,309       2,291       2,266       2,312  
Transaction costs
     1,727       106       46       6       86  
Federal, state and local taxes
     203       85       125       17       21  
      27,152       20,115       20,767       18,736       19,826  
Other income (loss)
                                        
Equity in income (loss) of equity investments
     (3,609 )     13,855       4,526       7,869       792  
Earnings from preferred equity investments
     37       189       185       202       -  
Realized gain (loss) on sale of securities carried at fair value
     875       (31 )     -       (102 )     -  
Unrealized gain (loss) on securities carried at fair value
     -       -       (1,860 )     1,718       (338 )
Loss 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
     -       -       215       -       -  
Settlement expense
     (261 )     (16 )     (134 )     -       -  
Interest and other income
     89       101       115       70       266  
      (2,869 )     14,098       3,047       9,757       1,213  
   
Income (loss) from continuing operations
     (6,794 )     12,238       1,320       10,057       (1,060 )
   
Discontinued operations
                                        
Income (loss) from discontinued operations
     (147 )     (1,506 )     6,425       2,895       (840 )
   
Net income (loss)
     (6,941 )     10,732       7,745       12,952       (1,900 )
(Income) loss attributable to non-controlling interest
     1,871       995       629       795       (188 )
Net income (loss) attributable to Winthrop Realty Trust
     (5,070 )     11,727       8,374       13,747       (2,088 )
Preferred dividend on Series D Preferred Shares
     (2,786 )     (2,787 )     (2,786 )     (2,787 )     (2,787 )
Amount allocated to restricted shares
     (96 )     (106 )     (98 )     (17 )     -  
Net income (loss) attributable to Common Shares
   $ (7,952 )   $ 8,834     $ 5,490     $ 10,943     $ (4,875 )
 
 
3
 
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share data, continued)
(Unaudited)
 
   
Three Months Ended
  
   
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
   
2013
    
2013
    
2013
    
2013
    
2012
  
Per Common Share data - Basic
                              
Income (loss) from continuing operations
   $ (0.22 )   $ 0.31     $ (0.03 )   $ 0.24     $ (0.13 )
Income (loss) from discontinued operations
     -       (0.04 )     0.20       0.09       (0.02 )
Net income (loss) attributable to
                                        
Winthrop Realty Trust
   $ (0.22 )   $ 0.27     $ 0.17     $ 0.33     $ (0.15 )
   
Per Common Share data - Diluted
                                        
Income (loss) from continuing operations
   $ (0.22 )   $ 0.31     $ (0.03 )   $ 0.24     $ (0.13 )
Income (loss) from discontinued operations
     -       (0.04 )     0.20       0.09       (0.02 )
Net income (loss) attributable to
                                        
Winthrop Realty Trust
   $ (0.22 )   $ 0.27     $ 0.17     $ 0.33     $ (0.15 )
   
Basic Weighted-Average
                                        
Common Shares
     35,807       33,076       33,037       33,027       33,056  
   
Diluted Weighted-Average
                                        
Common Shares
     35,879       33,148       33,037       33,029       33,056  
   
Comprehensive income (loss)
                                        
Consolidated net income (loss)
   $ (6,941 )   $ 10,733     $ 7,745     $ 12,951     $ (1,900 )
Change in unrealized gain (loss) on interest rate
                                        
derivative
     (54 )     (150 )     131       (1 )     115  
   
Comprehensive income (loss)
   $ (6,995 )   $ 10,583     $ 7,876     $ 12,950     $ (1,785 )
 
 
4
 
 
WINTHROP REALTY TRUST
FUNDS FROM OPERATIONS
(In thousands, except per share data, continued)
(Unaudited)
 
The following presents a reconciliation of net income to funds from operations for the three months and year ended December 31, 2013 and 2012:
 
   
For the Three Months Ended
    
For the Year Ended
  
   
December 31,
    
December 31,
  
   
2013
    
2012
    
2013
    
2012
  
Basic
                        
Net income attributable to Winthrop Realty Trust
   $ (5,070 )   $ (2,088 )   $ 28,778     $ 24,631  
Real estate depreciation
     4,006       3,116       13,671       11,281  
Amortization of capitalized leasing costs
     2,608       1,679       8,235       6,785  
Gain on sale of real estate
     (57 )     -       (11,005 )     (945 )
Trust's share of real estate depreciation and amortization of
                                
unconsolidated interests
     2,842       3,122       10,314       13,752  
Impairment loss on investments in real estate
     -       2,562       2,904       3,260  
Impairment loss on equity investments
     7,687               7,687          
(Gain) loss on sale of equity investments
     -       72       110       (199 )
Trust's share of loss on sale of real estate of
                                
unconsolidated interests
     -       -       722       -  
Less: Non-controlling interest share of depreciation and
                                
amortization
     (1,290 )     (686 )     (4,146 )     (2,831 )
Funds from operations attributable to the Trust
     10,726       7,777       57,270       55,734  
Preferred dividend on Series D Preferred Shares
     (2,786 )     (2,787 )     (11,146 )     (9,285 )
Amount allocated to restricted shares
     (96 )     -       (307 )     -  
FFO applicable to Common Shares - Basic
   $ 7,844     $ 4,990     $ 45,817     $ 46,449  
Weighted-average Common Shares
     35,807       33,056       33,743       33,062  
FFO Per Common Share - Basic
   $ 0.22     $ 0.15     $ 1.36     $ 1.40  
   
Diluted
                                
Funds from operations attributable to the Trust
   $ 10,726     $ 7,777     $ 57,270     $ 55,734  
Preferred dividend on Series D Preferred Shares
     (2,786 )     (2,787 )     (11,146 )     (9,285 )
Amount allocated to restricted shares
     (96 )     -       (307 )     -  
FFO applicable to Common Shares
   $ 7,844     $ 4,990     $ 45,817     $ 46,449  
   
Weighted-average Common Shares
     35,807       33,056       33,743       33,062  
Stock options
     -       -       -       -  
Restricted shares
     72       -       31       -  
Diluted weighted-average Common Shares
     35,879       33,056       33,774       33,062  
FFO Per Common Share - Diluted
   $ 0.22     $ 0.15     $ 1.36     $ 1.40  
 
 
5
 
 
WINTHROP REALTY TRUST
FUNDS FROM OPERATIONS
(In thousands, except per share data, continued)
(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  
   
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
   
2013
    
2013
    
2013
    
2013
    
2012
  
Basic
                              
Net income (loss) attributable to
                              
Winthrop Realty Trust
   $ (5,070 )   $ 11,728     $ 8,374     $ 13,746     $ (2,088 )
Real estate depreciation
     4,006       3,153       3,249       3,263       3,116  
Amortization of capitalized leasing costs
     2,608       1,791       1,858       1,977       1,679  
Trust's share of real estate depreciation and
                                        
amortization of unconsolidated interests
     2,842       2,762       2,086       2,623       3,122  
Impairment loss on investments in real estate
     -       2,750       154       -       2,562  
Impairment loss on equity method investments
     7,687       -       -       -       -  
Gain on sale of real estate
     (57 )     (1,421 )     (6,752 )     (2,775 )     -  
(Gain) loss on sale of equity investments
             -       -       110       72  
Trust's share of loss on sale of real estate
                                        
of unconsolidated interests
     -       722       -       -       -  
Less: Non-controlling interest share
                                        
of depreciation and amortization
     (1,290 )     (1,504 )     (1,496 )     (242 )     (686 )
Funds from operations
     10,726       19,981       7,473       18,702       7,777  
Preferred dividend on Series D Preferred Shares
     (2,786 )     (2,787 )     (2,786 )     (2,787 )     (2,787 )
Amount allocated to restricted shares
     (96 )     (129 )     (98 )     (16 )     -  
FFO applicable to Common Shares - Basic
   $ 7,844     $ 17,065     $ 4,589     $ 15,899     $ 4,990  
Weighted-average Common Shares
     35,807       33,076       33,037       33,027       33,056  
FFO Per Common Share - Basic
   $ 0.22     $ 0.52     $ 0.14     $ 0.48     $ 0.15  
   
Diluted
                                        
Funds from operations
   $ 10,726     $ 19,981     $ 7,473     $ 18,702     $ 7,777  
Preferred dividend on Series D Preferred Shares
     (2,786 )     (2,787 )     (2,786 )     (2,787 )     (2,787 )
Amount allocated to restricted shares
     (96 )     (129 )     (98 )     (16 )     -  
FFO applicable to Common Shares
   $ 7,844     $ 17,065     $ 4,589     $ 15,899     $ 4,990  
   
Weighted-average Common Shares
     35,807       33,076       33,037       33,027       33,056  
Stock options
     -       2       -       2       -  
Restricted shares
     72       70       -       -       -  
Diluted weighted-average Common Shares
     35,879       33,148       33,037       33,029       33,056  
FFO Per Common Share - Diluted
   $ 0.22     $ 0.51     $ 0.14     $ 0.48     $ 0.15  
 
 
6
 
 
WINTHROP REALTY TRUST
ESTIMATED NET ASSET VALUE
(In thousands, except square feet, units and per share data)
(Unaudited)
See Notes on Pages 10 and 11.
 
 
Cash, Accounts Payable and Dividends Payable
  
Trust
Ownership
  
 
Carrying
Amount
  
Matched Debt
  
Estimated NAV Range
Cash and Cash Equivalents and Restricted Cash
  
100%
  
$125,884
  
                             -
  
$125,884
 to
$125,884
Other Accounts Payable and Dividends Payable
  
1%
  
($35,196)
  
                             -
  
($35,196)
 to
($35,196)
                       
Subtotal - Cash and Net Working Capital Estimated Net Asset Value Range
  
100%
          
$90,688
to
$90,688
                       
                       
REIT Securities:
    
Trust Ownership
  
Fair Value
Carrying Amount
  
Matched Debt
  
Estimated NAV Range
REIT Common shares
  
100%
  
 $                  -
  
 $                         -
  
 $                  -
 to
 $                  -
REIT Preferred shares
  
100%
  
                      -
  
                             -
  
                      -
 to
                      -
 Subtotal - REIT Securities Segment Estimated Net Asset Value Range
              
                      -
 to
                      -
 
Loans:
          
Trust
Ownership
  
Par Value
Plus Accrued
Interest/Sale
Price
  
Matched Debt
  
Estimated NAV Range
    
Loan Assets, Loan Securities & Loan Equity
                            
Investments, with Expected Repayment
                            
Hotel Wales  - Whole Loan
        
100%
  
$20,000
  
$14,000
  
$6,000
 to
$6,000
[1]
  
The Shops at Wailea - B Note
        
100%
  
7,644
  
                             -
  
              7,644
 to
              7,644
  
[2]
Legacy Orchard -Corporate Loan
        
100%
  
              9,750
  
                             -
  
              9,750
 to
              9,750
[1]
  
San Marbeya - Whole  Loan
        
100%
  
28,960
  
15,150
  
              13,810
 to
              13,810
[1]
  
Playa Vista - Mezzanine Loan
        
100%
  
             10,323
  
                             -
  
             12,823
 to
             14,323
  
[3]
Churchill - Whole Loan
        
100%
  
685
  
                             -
  
                      -
 to
                  683
  
[2]
Rockwell - Mezzanine Loan
        
100%
  
               1,502
  
                             -
  
                      -
 to
                      -
  
[2]
500-512 Seventh Ave - B Note
        
100%
  
10,373
  
                             -
  
             10,373
 to
             10,373
[1]
  
Pinnacle II - B Note
        
100%
  
               5,108
  
                             -
  
               5,108
 to
               5,108
  
[2]
Poipu Shopping Village - B Note
        
100%
  
2,844
  
                             -
  
              2,844
 to
              2,844
  
[2]
Wellington Tower -  Mezzanine Loan
        
100%
  
               3,102
  
                             -
  
               3,102
 to
               3,102
[1]
  
Mentor - Whole Loan
        
100%
  
2,512
  
                             -
  
               2,512
 to
               2,512
  
[2]
WBCMT 2007 - CMBS
        
100%
  
1,130
  
                             -
  
226
 to
1,130
  
[2]
Queensridge-Whole Loan
        
100%
  
2,908
      
4,600
  
4,600
  
[4]
 Total Estimated Value of Loans with Expected Repayment
                
$78,792
 to
$81,879
    
 
               
Par Value
                
           
Trust
  
Plus Accrued
  
Matched
            
           
Ownership
  
Interest
  
Debt
  
Estimated NAV Range
    
Loan Assets, Loan Securities & Loan Equity Investments, with Potential Equity Participation
                
Stamford - Mezzanine
        
20%
  
              47,119
  
                             -
  
               9,415
 to
               9,415
    
  Total Estimated Value of Loans with Potential Equity
                  
$9,415
 to
$9,415
    
                                 
Debt Platforms
                                
Concord Debt Holdings/CDH CDO
      
67%/49%
  
N/A
  
N/A
  
               11,016
 to
            22,433
  
[5]
RE CDO
          
50%
  
N/A
  
N/A
  
                  500
 to
               1,000
    
Total Estimated Value of Debt Platforms
                  
$11,516
 to
$23,433
    
                                 
                                 
 Subtotal - Loan Segment Estimated Net Asset Value Range
                
$99,723
to
$114,727
    
 
Management’s estimate of net asset value (“NAV”) on pages 7-9 is based on in place assets and liabilities as of December 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 December 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
(In thousands, except square feet, units and per share data, continued)
(Unaudited)
See Notes on Pages 10 and 11.
 
Consolidated Operating Properties
($ in thousands)
 
             
Square
2013
          
Range of
  
Estimated
  
Matched
 
            
     
Trust
      
Feet/
  
Annual
  
Adjust-
  
Adjusted
  
Capitalization
  
Range of
  
Debt
  
Estimated
      
 
Description
Ownership
  
Type
  
Units
  
 NOI
  
ments
  
 NOI
   Rates  
Property Value
  
Balance
 
NAV Range
      
 
Consolidated Operating Properties
                                              
 
Wholly Owned
                                                        
 
Amherst
Amherst, NY
100%
  
Office
  
       200,000
  
$2,154
  
      (352)
  
$1,802
  
7.50%
 to
7.00%
  
$24,027
 to
$25,743
  
                  -
  
$24,027
 to
$25,743
      
 
Cerritos
Cerritos, CA
100%
  
Office
  
       187,000
  
       1,076
  
        924
  
     2,000
  
7.00%
 to
6.50%
  
       27,271
 to
       29,469
  
         23,000
  
           4,271
 to
           5,397
[6]
    
 
One East Erie
Chicago, IL
100%
  
Office
  
       126,000
  
       3,156
      
     3,156
  
7.50%
 to
6.50%
  
       42,080
 to
       48,554
  
         19,856
  
         22,224
 to
         28,698
      
 
Crossroads I
Englewood, CO
100%
  
Office
  
       118,000
  
963
      
963
  
6.30%
 to
6.30%
  
       15,286
 to
       15,286
  
                  -
  
         15,286
 to
         15,286
[7]
    
 
Crossroads II
Englewood, CO
100%
  
Office
  
       118,000
  
         938
      
        938
  
6.30%
 to
6.30%
  
       14,889
 to
       14,889
  
                  -
  
         14,889
 to
         14,889
[7]
    
 
550 Corporetum
Lisle, IL
100%
  
Office
  
       169,000
  
         795
  
        204
  
        999
  
9.50%
 to
8.50%
  
         9,791
 to
       11,028
  
           5,753
  
           4,038
 to
           5,275
[8]
    
 
Orlando
Orlando, FL
100%
  
Office
  
       257,000
  
       3,313
      
     3,313
  
8.50%
 to
7.75%
  
       38,976
 to
       42,748
  
         36,983
  
           1,993
 to
           5,765
      
 
Plantation
Plantation, FL
100%
  
Office
  
       120,000
  
       1,448
      
     1,448
  
8.00%
 to
7.00%
  
       18,100
 to
       20,686
  
         10,685
  
           7,415
 to
         10,001
      
 
South Burlington
South Burlington, VT
100%
  
Office
  
         54,000
  
         219
      
        219
  
11.00%
 to
9.50%
  
         1,991
 to
         2,305
  
                  -
  
           1,991
 to
           2,305
      
 
Atlanta - Kroger
Atlanta, GA
100%
  
Retail
  
         61,000
  
         259
      
        259
  
13.00%
 to
12.00%
  
         1,992
 to
         2,158
  
                  -
  
           1,992
 to
           2,158
      
 
Greensboro - Kroger
Greensboro, NC
100%
  
Retail
  
         46,000
  
         220
      
        220
  
9.00%
 to
8.00%
  
         2,444
 to
         2,750
  
                  -
  
           2,444
 to
           2,750
      
 
Louisville - Kroger
Louisville, KY
100%
  
Retail
  
         47,000
  
         214
      
        214
  
11.00%
 to
10.00%
  
         1,945
 to
         2,140
  
                  -
  
           1,945
 to
           2,140
      
 
Newbury
Meriden, CT
100%
  
Multi-Family
 180 Units
       1,463
      
     1,463
  
5.50%
 to
5.50%
  
       26,600
 to
       26,600
  
         21,000
  
           5,600
 to
           5,600
[9]
    
 
Waterford
Memphis, TN
100%
  
Multi-Family
 320 Units
       1,564
  
        243
  
     1,807
  
6.25%
 to
6.00%
  
       28,912
 to
       30,117
  
         13,125
  
         15,787
 to
         16,992
[10]
    
 
Lake Brandt
Greensboro, NC
100%
  
Multi-Family
 284 Units
       1,076
  
        217
  
     1,293
  
6.50%
 to
6.25%
  
       19,892
 to
       20,688
  
         13,600
  
           6,292
 to
           7,088
[10]
    
 
Jacksonville
Jacksonville, FL
100%
  
Warehouse
       588,000
  
         871
      
        871
  
8.50%
 to
8.25%
  
       10,247
 to
       10,558
  
                  -
  
         10,247
 to
         10,558
      
 
Churchill
Churchill, PA
100%
  
Mixed Use
         52,000
  
         870
      
        870
  
12.00%
 to
9.00%
  
         7,250
 to
         9,667
  
           5,049
  
           2,201
 to
           4,618
      
                                                             
 
Joint Venture Properties
                                                      
 
River City
Chicago, IL
60%
  
Office
  
       253,000
  
       1,064
      
     1,064
  
6.00%
 to
6.00%
  
       17,733
 to
       17,733
  
           8,579
  
           5,493
 to
           5,493
[19]
    
 
Westheimer
Houston, TX
32%
  
Office
  
       614,000
  
       5,656
  
      (686)
  
     4,970
  
7.00%
 to
6.00%
  
       71,000
 to
       82,833
  
         47,201
  
           7,616
 to
         11,402
[11]
    
 
1050 Corporetum
Lisle, IL
60%
  
Office
  
         54,000
  
         411
      
        411
  
9.00%
 to
7.00%
  
         4,567
 to
         5,871
  
           5,470
  
                  -
 to
              241
      
 
450 West 14th Street
New York, NY
var
  
Office /Retail
       105,000
  
       2,375
  
     3,002
  
     5,377
  
5.75%
 to
5.35%
  
       93,513
 to
     100,505
  
         51,950
  
         24,674
 to
         27,121
[12]
[13]
  
 
1515 Market Street
Philadelphia, PA
89%
  
Office
  
       502,000
  
       4,541
  
        890
  
     5,431
  
7.50%
 to
7.00%
  
       70,247
 to
       75,420
  
         42,440
  
         27,807
 to
         32,980
[14]
[15]
  
 
Luxury  Residential
Various
84%
  
Multifamily
 761 Units
     10,545
  
     1,022
  
   11,567
  
4.63%
 to
4.63%
  
     249,564
 to
     249,564
  
       150,000
  
         83,634
 to
         83,634
[16]
    
 
Summit Pointe
Oklahoma City, OK
80%
  
Multifamily
 184 Units
       1,205
      
     1,205
  
8.00%
 to
7.50%
  
       15,063
 to
       16,067
  
           9,226
  
           4,755
 to
           5,357
[17]
    
                                                             
 
 Subtotal - Consolidated Operating Properties Net Asset Value Range
                      
$296,622
 to
$331,490
      
 
Management’s estimate of net asset value (“NAV”) on pages 7-9 is based on in place assets and liabilities as of December 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 December 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
(In thousands, except per share data, continued)
(Unaudited)
See Notes on Pages 10 and 11.
 
 
12/31/2013
Unconsolidated Operating Properties
  
($ in thousands)
  
 
                   
2013
                          
Matched
              
       
Trust
      
Square
  
Annual
  
Adjust-
  
Adjusted
Range of
  
Estimated Range
  
Debt
    
Estimated
    
Description
      
Ownership
Type
  
Feet/Units
  
 NOI
  
ments
  
NOI
  
Capitalization Rates
  
of Property Value
  
Balance
    
NAV Range
    
Unconsolidated Operating Properties
                                                      
Marc Realty
                                                              
223 West Jackson
  
Chicago, IL
  
50%
  
 Office
  
168,000
  
$1,262
  
          52
  
$1,314
  
7.15%
 to
7.00%
  
$18,378
 to
$18,771
  
$6,769
    
$5,804
 to
$6,001
[19]
  
High Point
  
Hillside, IL
  
50%
  
Office
  
192,000
  
641
  
       (225)
  
        416
  
11.00%
to
10.00%
  
         3,782
 to
         4,160
  
         4,335
    
                 -
 to
                 -
[18]
[19]
1701 E. Woodfield
  
Shaumburg, IL
50%
  
 Office
  
175,000
  
1,159
  
       (500)
  
659
  
11.00%
 to
10.00%
  
         5,991
 to
         6,590
  
         5,989
    
                1
 to
            301
[18]
[19]
Enterprise
  
Westchester, IL
50%
  
Office
  
130,000
  
885
      
        885
  
11.00%
to
10.00%
  
         8,045
 to
         8,850
  
         8,760
    
                 -
 to
              45
[19]
  
                                                               
Other Joint Ventures
                                                            
Sullivan Center
  
Chicago, IL
  
50%
  
 Retail/Office
942,000
  
15,453
  
    (2,700)
  
12,753
  
6.00%
 to
5.35%
  
     212,550
 to
     238,374
  
     113,500
    
       72,820
 to
       82,633
[20]
  
701 7th Ave.
  
New York, NY
75%
  
Retail/Office
  
Under Development
                              
     376,500
    
       55,309
 to
       55,309
[21]
  
Northwest Atlanta
  
Atlanta, GA
  
60%
  
 Industrial/
Office
472,000
  
1,516
      
1,516
  
8.50%
 to
8.00%
  
       17,835
 to
       18,950
  
       13,592
    
         2,546
 to
         3,215
    
Mentor
  
Chicago, IL
  
50%
  
Retail
  
7,000
  
469
      
        469
  
8.00%
to
7.00%
  
         5,863
 to
         6,700
  
         2,497
    
         1,679
 to
         2,097
    
Fenway Wateridge
  
San Diego, CA
50%
  
 Office
  
62,000
  
692
  
       (104)
  
588
  
8.00%
 to
7.50%
  
         7,350
 to
         7,840
  
         7,000
    
            350
 to
            840
[22]
  
Atrium
  
Chicago, IL
  
50%
  
Retail
  
71,000
  
1,274
  
        220
  
     1,494
  
9.50%
to
8.00%
  
       15,144
 to
       18,093
  
                 -
    
         7,572
 to
         9,047
[23]
  
                                                               
Vintage (VHH)
                                                              
27 Properties
  
Various
  
75%
  
 Multifamily
  
4,655 Units
  
24,876
      
24,876
  
7.50%
 to
7.50%
  
     331,680
 to
     331,680
  
     250,806
    
       59,875
 to
       69,395
[24]
  
Tacoma
  
Tacoma, WA
75%
  
Multifamily
  
Under Construction
                              
       17,800
    
         1,500
 to
         1,500
[25]
  
Quilceda
  
Marysville, WA
75%
  
 Multifamily
  
Under Construction
                              
       21,020
    
            750
 to
            750
[25]
  
Urban Center
  
Lynnwood, WA
75%
  
Multifamily
  
Under Construction
                              
       41,400
    
         5,500
 to
         5,500
[25]
  
                                                               
 Subtotal - Unconsolidated Operating Properties Net Asset Value Range
                                    
$213,706
 to
$236,633
    
 
       
Corporate NAV
                     
       
Cash and Net Working Capital
        
$90,688
  to
$90,688
                 
       
REIT Securities Net Asset Value Range
        
               -
  
               -
    
       
Loan Segment Net Asset Value Range
        
       99,723
  to
     114,727
    
       
Operating Properties Net Asset Value Range
        
     510,328
  to
     568,122
    
       
All Segments Estimated  Net Asset Value Range
        
$700,739
  to
$773,537
    
                           
       
Less: Corporate Liabilities
                  
       
Outstanding Line of Credit
        
               -
to
               -
    
       
Outstanding Senior Notes
        
      (86,250)
to
      (86,250)
    
       
Outstanding Series D Preferred
        
    (120,500)
to
    (120,500)
    
       
Net Asset Value Attributable to Common Shares
        
 $  493,989
 to
 $  566,787
    
                           
       
Outstanding Common Shares (Excludes Restricted Shares)
        
35,809
  
       35,809
    
       
Estimate Net Asset Value per Common Share Range
        
 $      13.80
to
 $      15.83
    
 
Management’s estimate of net asset value (“NAV”) on pages 7-9 is based on in place assets and liabilities as of December 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 December 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
NOTES TO ESTIMATED NET ASSET VALUE
(Unaudited)
 
Net Asset Value
Footnotes
 
Management’s estimate of net asset value (“NAV”) is based on estimated assets and liabilities as of 12/31/2013. 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. 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.
   
1)
Asset was sold in Febuary 2014. NAV reflects sales price.
   
2)
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.
   
3)
Property collateralizing the loan is in the process of being sold. NAV includes estimate of Winthrop's equity participation above par (based on expected sales price).
   
4)
Loan was prepaid in January 2014.  The amount in excess of par represents the prepayment penalty
   
5)
Represents the discounted cash flows of the CDO assuming different recovery rates on the loans.  The non CDO loan assets are valued at estimated recovery with a range of values on the equity in MSREF portfolio at $0 to $5 million.
   
6)
Gross Asset Value has been reduced to account for capital expenditures to offset speculative leasing.  NAV has been reduced to reflect the B Note holder's 50% participation above $4.3 million.
   
7)
Currently being marketed for sale.  NAV reflects expected price.
   
8)
NAV has been reduced by $725k to account for capital expenditures to offset 2014 spec leasing.
   
9)
Sold on February 27, 2014: NAV reflects sale price, net of closing costs.
   
10)
Increase is due to improved leasing and to reflect non recurring 2013 writeoffs of accounts receivable.
   
11)
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 ($8.0 - $8.3 million annually) through the maturity date of the mortgage debt (April 2016) and then decreases to $4.3 million, subject to annual increases thereafter up to $5.5 million annually. The NOI was adjusted to reflect the future decline in rents.
   
12)
Adjustment for leasing of 11,944 square feet of vacant retail space at $165 per square foot and to reverse the straight-lined non cash ground rent adjustment.
   
13)
Management’s estimated NAV is calculated based on a sale of the property at a range of values using capitalization rates between 5.50% and 6.00% 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 $2.4 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.
   
14)
The adjustment to NOI has been made to account for new leases entered into.  The costs of the lease up have been deducted from Gross Asset Value.
   
15)
The Trust owns 89% of 1515 Market, but is entitled to receive 100% of proceeds up to $78.8 million less the mortgage amount, which was $42.4 million as of December 31, 2013. The Trust in entitled to receive 89% of any excess proceeds.
 
 
10
 
 
WINTHROP REALTY TRUST
NOTES TO ESTIMATED NET ASSET VALUE (Continued)
(Unaudited)

Net Asset Value
Footnotes
 
Management’s estimate of net asset value (“NAV”) is based on estimated assets and liabilities as of 12/31/2013. 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. 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.
 
16)
Increase to NOI is to reflect the improved occupancy and to reverse our one time costs incurred with new ownership.
   
17)
The Trust is entitled to 100% of capital proceeds until it receives a return of its capital ($4.9 million) plus a 12% return.  Proceeds are next paid to the Trust's partner until it receives back its capital ($1.2 million) plus a 12% return.  Thereafter, the Trust receives 60% of proceeds.
   
18)
Projecting future lease roll down.
   
19)
The Trust has reached an agreeement with Marc Realty to its interest in River City, 4415 West Harrison,1701 E. Woodfield and Enterprise for a gross sales price of $6.0 million.  In addition, the Trust has agreed to grant an option to Marc Realty to acquire 223 West Jackson for a price to be not less than $5.8 million.
   
20)
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, which has an outstanding balance of $56.7 million as of December 31, 2013 and of which the Trust owns 100% and then 76% profits participation by WRT-Elad. The NOI on this property was adjusted downward to reverse the effect of the straightlined rental income.
   
21)
Asset is in a development stage. NAV represents cash invested by the Trust as of 12/31/2013 plus the unpaid accrued return on the cash invested.
   
22)
The Trust has a preferred equity position. Proceeds of a capital transaction are distributed first to the Trust until it receives all of its $233k remaining preferred investment plus 12% thereon; second to the Trust to repay its $1.7million equity plus a 12% return thereon ; third 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..  The adjustment down to NOI is to reflect the loss of two tenants at the property.
   
23)
NAV has been reduced by $582k to account for TIs and leasing costs associated with a newly executed lease with Walgreens.  The NOI has been adjusted to reflect the new Walgreens lease
   
24)
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%. 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%.
   
25)
Asset is in a development stage.  NAV reflects cash invested.
 
 
11
 
 
WINTHROP REALTY TRUST
Five Year Performance Table
 
The following table reflects the performance of all investments that were made and sold or otherwise exited during the five year period beginning January 1, 2009 through December 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-Various
     N/A  
March-09
     213,042  
Various
     13.42 %  
REIT Preferred shares-Various
     N/A  
January-09
     6,925,421  
Various
     71.12 %  
REIT Bonds-Various
     N/A  
February-09
     11,659,750  
Various
     20.59 %  
REIT Common shares-CDR
     N/A  
October-11
     17,472,031  
Various
     74.62 %  
     
Loan Assets, Loan Securities & Loan Equity
                              
Investments
                              
Siete Square - Whole Loan
  
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 Improvement 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 Tower - B Note
  
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 Town - 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-Note
  
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 %  
4545 East Shea Blvd- Whole Loan
  
Office
  
April-12
     2,250,000  
June-13
     14.14 %  
10 Metrotech - Whole Loan
  
Office
  
April-12
     10,915,000  
July-13
     38.13 %  
     
Other
                              
F II Co-Invest LLC - Private Equity Securities
     N/A  
July-11
   $ 1,800,000  
April-12
     17.51 %  
     
Operating Properties
                              
Deer Valley
  
Multi Family
       $ 12,370,485  
June-13
     13.42 %  
                               
Total/We ighted Average
             $ 402,728,312         34.21 %  
 
 
12
 
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, Unaudited)
 
   
Years Ended December 31,
  
   
2013
    
2012
    
2011
  
Cash flows from operating activities
                  
Net Income
   $ 24,488     $ 24,384 $       11,747  
Adjustments to reconcile net income to net cash provided by operating activities:
                        
Depreciation and amortization (including amortization of deferred financing costs and fair value of debt)
     15,451       11,824       9,412  
Amortization of lease intanigibles
     8,550       6,746       4,472  
Straight-line rental income
     (4,139 )     (5,415 )     (1,907 )
Loan discount accretion
     (4,121 )     (8,333 )     (13,401 )
Discount accretion received in cash
     37       15,720       13,290  
Earnings of preferred equity investments
     (613 )     -       (338 )
Distrubutions of income from preferred equity investments
     607       97       571  
(Income) loss of equity investments
     (22,641 )     (14,678 )     12,712  
Distributions of income from equity investments
     23,936       21,593       12,696  
Restricted cash held in escrows
     1,242       (3,477 )     1,431  
Gain on sale of securities carried at fair value
     (742 )     (41 )     (123 )
Unrealized loss (gain) on securities carried at fair value
     142       (6,916 )     (2,788 )
Gain on sale of real estate investments
     (11,005 )     (945 )     (392 )
Gain on sale of loan securities carried at fair value
     -       (614 )     -  
Unrealized gain on loan securities carried at fair value
     (215 )     (447 )     (2,738 )
Impairment loss on investments in real estate
     2,904       3,260       7,600  
Loss (gain) on extinguishment of debt
     -       121       (9,258 )
Gain on consolidation of property
     -       -       (818 )
Provision for loss on loans receivable
     348       -       -  
Tenant leasing costs
     (4,229 )     (4,250 )     (1,314 )
Equity compensation expenses
     897       -       -  
Bad debt expense (recovery)
     40       (265 )     377  
Changes in assets and liabilities:
                        
Interest receivable
     (214 )     (516 )     37  
Accounts receivable and other assets
     (1,372 )     726       (785 )
Accounts payable, accrued liabilities and other liabilities
     741       7,861       (796 )
Net cash provided by operating activities
     30,092       46,435       39,687  
   
Cash flows from investing activities
                        
Issuance and acquisition of loans receivable
     (21,437 )     (163,800 )     (67,619 )
Investment in real estate
     (257,142 )     (37,678 )     (9,751 )
Investment in equity investments
     (30,341 )     (78,679 )     (151,219 )
Investment in preferred equity investment
     -       (10,750 )     (7,564 )
Return of capital distribution from equity investments
     20,565       84,026       31,890  
Return of capital distribution from securities carried at fair value
     376       -       -  
Purchase of securities carried at fair value
     -       (5,655 )     (19,321 )
Proceeds from sale of investments in real estate
     38,690       7,024       3,629  
Proceeds from sale of equity investments
     26       4,297       6,000  
Proceeds from sale of securities carried at fair value
     19,918       21,774       26,408  
Proceeds from pay off of loan securities
     -       6,359       8,748  
Proceeds from sale of loan receivables
     19,319       -       -  
Restricted cash held in escrows
     863       (5,600 )     3,160  
Issuance of secured financing receivable
     (30,000 )     -       -  
Collection of loans receivable
     56,088       68,824       70,289  
Deposits on assets held for sale
     500       -       -  
Cash from consolidation of properties
     473       -       -  
Cash from foreclosure on properties
     -       411       -  
Net cash used in investing activities
     (182,102 )     (109,447 )     (105,350 )
 
 
13
 
 
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, Unaudited, continued)
 
   
Years Ended December 31,
  
   
2013
    
2012
    
2011
  
Cash flows from financing activities
                  
Proceeds from mortgage loans payable
   $ 198,100     $ 36,897     $ 32,494  
Proceeds from notes payable
     -       880       -  
Payment of notes payable
     -       (80 )     -  
Proceeds from revolving line of credit
     -       -       67,324  
Payment of revolving line of credit
     -       (40,000 )     (52,774 )
Principal payments of mortgage loans payable
     (22,287 )     (25,584 )     (72,574 )
Proceeds from issuance of senior notes payable
     -       86,250       -  
Proceeds from secured financing
     -       25,000       29,150  
Payment of secured financing
     (23,770 )     (1,230 )     -  
Restricted cash held in escrows
     (228 )     (42 )     89  
Deferred financing costs
     (796 )     (4,198 )     (788 )
Purchase of non-controlling interests
     (150 )     (2,050 )     -  
Contribution from non-controlling interest
     18,629       4,576       1,349  
Distribution to non-controlling interest
     (51 )     (7,242 )     (356 )
Proceeds from issuance of Common Shares under Dividend Reinvestment Plan
     464       517       2,760  
Proceeds from issuance of Common Shares through offering, net
     30,021       -       61,386  
Buyback of Common Shares
     -       (742 )     -  
Issuance of Series D Preferred Shares
     -       77,563       38,378  
Dividend paid on Common Shares
     (21,919 )     (21,488 )     (19,496 )
Dividend paid on Series C Preferred Shares
     -       -       (624 )
Dividend paid on Series D Preferred Shares
     (11,146 )     (9,285 )     (339 )
Dividend paid on Restricted Shares
     (27 )     -       -  
Redemption of Series B-1 Preferred Shares
     -       -       (21,400 )
Redemption of Series C Preferred Shares
     -       -       (3,221 )
Net cash provided by financing activities
     166,840       119,742       61,358  
   
Net increase (decrease) in cash and cash equivalents
     14,830       56,730       (4,305 )
Cash and cash equivalents at beginning of year
     97,682       40,952       45,257  
Cash and cash equivalents at end of year
   $ 112,512     $ 97,682     $ 40,952  
Supplemental Disclosure of Cash Flow Information
                        
Interest paid
   $ 23,735     $ 16,467     $ 16,246  
Capitalized interest
   $ 1,443     $ -     $ -  
Taxes paid
   $ 247     $ 332     $ 396  
                         
Supplemental Disclosure on Non-Cash Investing and Financing Activities
                        
Dividends accrued on Common Shares and Restricted Shares
   $ 6,099     $ 5,366     $ 5,396  
Capital expenditures accrued
   $ 3,140     $ 4,011     $ 4,285  
Transfer from preferred equity investments
     -     $ 3,923     $ 7,843  
Transfer from loans receivable
     -     $ 2,938     $ -  
Transfer to equity investments
     -     $ (6,861 )   $ (5,035 )
Transfer from equity investments
     -     $ 17,600     $ 12,544  
Transfer to loans receivable
     -     $ (11,750 )   $ (6,534 )
Transfer to additional paid-in capital
     -     $ (5,487 )   $ -  
Transfer to non-controlling interests
     -     $ (363 )   $ -  
Transfer to preferred equity investments
     -     $ -     $ (2,022 )
Transfer to investments in lease intangibles
     -     $ -     $ (11,904 )
Transfer to investments in real estate
     -     $ -     $ (52,778 )
Transfer to below market lease intangibles
     -     $ -     $ 1,005  
Assumption of mortgage loan on investment in real estate
     9,248     $ 13,600     $ 49,091  
Transfer from loan securities
     -     $ -     $ 662  
 
 
14
 
 
WINTHROP REALTY TRUST
SELECTED BALANCE SHEET ACCOUNT DETAIL
(In thousands, Unaudited)
 
   
December 31,
    
September 30,
    
June 30,
    
March 31,
    
December 31,
  
   
2013
    
2013
    
2013
    
2013
    
2012
  
Investments in Real Estate
                              
Land
   $ 82,215     $ 56,894     $ 59,183     $ 60,679     $ 43,252  
Buildings and improvements
                     -                  
Buildings
     545,659       341,963       346,723       354,394       337,506  
Building improvements
     21,348       18,306       18,686       17,877       18,908  
Furniture and Fixtures
     4,073       2,714       2,661       2,579       2,509  
Tenant improvements
     17,573       17,257       17,300       20,949       19,814  
      670,868       437,134       444,553       456,478       421,989  
Accumulated depreciation and amortization
     (56,448 )     (55,195 )     (53,553 )     (52,412 )     (51,553 )
Total Investments in Real Estate
   $ 614,420     $ 381,939     $ 391,000     $ 404,066     $ 370,436  
Accounts Receivable
                                        
Straight-line rent receivable
   $ 12,377     $ 12,558     $ 12,691     $ 14,403     $ 13,770  
Other
     9,612       7,644       4,697       3,683       4,889  
Total Accounts Receivable
   $ 21,989     $ 20,202     $ 17,388     $ 18,086     $ 18,659  
   
Securities Carried at Fair Value
                                        
REIT Common Shares
     -       7,074       10,360       12,220       19,694  
Total Securities Carried at Fair Value
   $ -     $ 7,074     $ 10,360     $ 12,220     $ 19,694  
Equity Investments
                                        
Vintage Housing Holdings (27 Properties)
   $ 34,153     $ 33,706     $ 32,886     $ 31,801     $ 30,534  
Elad / One South State Street (1 Property)
     23,661       24,518       23,614       23,447       25,104  
Marc Realty Portfolio (4 Properties)
     6,750       14,705       14,731       14,662       14,880  
10 Metrotech (Office Loan)
     12       11       10,845       10,845       10,845  
Sealy Ventures Properties (3 Properties)
     7,635       7,741       7,871       7,958       8,104  
Mack-Cali / Stamford (Office Loan)
     9,065       8,916       8,773       8,636       8,501  
Concord Debt Holdings
     965       982       3,932       3,953       3,974  
CDH CDO
     4,215       4,181       1,079       652       322  
RE-CDO Management
     991       993       1,061       1,098       1,779  
Mentor Retail (1 Property)
     635       596       584       568       551  
So-Cal Office Loan Portfolio (31 Loans)
     -       -       -       8       8  
Lakeside/Eagle
     -       3       10       -       -  
701 Seventh Avenue
     55,259       36,989       30,602       29,038       28,735  
Wateridge
     1,899       1,816       1,722       1,558       1,522  
Atrium Mall
     3,845       3,904       3,935       -       -  
Total Equity Investments
   $ 149,085     $ 139,061     $ 141,645     $ 134,224     $ 134,859  
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       4,000  
Vintage at Quilceda
     750       750       750       750       750  
Wateridge
     235       6,453       6,264       6,108       6,000  
Total Preferred Equity Investments
   $ 6,485     $ 12,703     $ 12,514     $ 12,358     $ 12,250  
Non-Controlling Interests
                                        
Westheimer (Houston, TX)
   $ 8,249     $ 8,328     $ 8,419     $ 8,652     $ 8,903  
River City / Marc Realty (Chicago, IL)
     3,818       3,865       3,907       3,883       3,857  
1050 Corporetum / Marc Realty (Lisle, IL)
     32       50       52       56       61  
450 West 14th Street (High Line)
     1,867       1,895       1,909       1,952       1,912  
So-Cal Office Loan Portfolio
     -       -       -       -       2  
HC Cypress
     -       -       19       19       19  
1515 Market
     (1,925 )     (1,247 )     (694 )     (195 )     -  
Summit Pointe
     763       -       -       -       -  
ST Residential
     15,985       -       -       -       -  
Total Non-Controlling Interests
   $ 28,789     $ 12,891     $ 13,612     $ 14,367     $ 14,754  
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)

   
Dec 31,
2013
    
Sep 30,
2013
    
Jun 30,
2013
    
Mar 31,
2013
    
Dec 31,
2012
  
Debt
                              
Mortgage loans payable
   $ 444,933     $ 308,049     $ 325,026     $ 278,824     $ 280,576  
Senior notes payable
     86,250       86,250       86,250       86,250       86,250  
Secured financing
     29,150       29,150       29,150       42,803       52,920  
KeyBank line of credit
     -       -       -       -       -  
Total Debt
     560,333       423,449       440,426       407,877       419,746  
                                         
                                         
Equity
                                        
Series D Cumulative Redeemable
    Preferred Shares
     120,500       120,500       120,500       120,500       120,500  
Common Shares
     360,374       373,687       340,385       339,811       334,010  
Non-controlling ownership interests
     28,789       12,891       13,612       14,367       14,754  
Total Equity
     509,663       507,078       474,497       474,678       469,264  
                                         
Total Capitalization
   $ 1,069,996     $ 930,527     $ 914,923     $ 882,555     $ 889,010  
 
Common Dividend Per Share
  
December 31,
2013
  
September 30,
2013
  
June 30,
2013
    
March 31,
2013
  
December 31,
2012
  
                           
$ 0.1625     $ 0.1625     $ 0.1625     $ 0.1625     $ 0.1625  

Liquidity and Credit Facility
                              
   
Dec 31,
2013
    
Sep 30,
2013
    
Jun 30,
2013
    
Mar 31,
2013
    
Dec 31,
2012
  
Cash and cash equivalents
   $ 112,512     $ 165,762     $ 186,132     $ 131,448     $ 97,682  
Securities carried at fair value
     -       7,074       10,360       12,220       19,694  
Available under line of credit (1)
     50,000       50,000       50,000       50,000       50,000  
Total Liquidity and Credit Facility
   $ 162,512     $ 222,836     $ 246,492     $ 193,668     $ 167,376  
 
 
16
 
 
WINTHROP REALTY TRUST
SELECTED INVESTMENT DATA
December 31, 2013
(In thousands, except square footage, 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
   $ 112,512        
               
REIT Securities
  
Cost
    
Fair Value
  
REIT Common shares
   $ -     $ -  
 
Loans with Expected Repayment
  
Position
  
Type
  
Interest Rate
  
Cost, less Principal Repaid
  
Carrying Amount (before  int. receivable)
  
Par Value
 
Extended Maturity Date
WBCMT Series 2007 Tranche L
  
CMBS
  
Hotel
  
LIBOR +
1.75%
  
            1,130
  
             226
  
           1,130
  
09/09/14
The Shops at Wailea
  
B Note
  
Retail
  
Fixed
6.15%
  
            5,019
  
          6,258
  
           7,584
  
10/06/14
Legacy Orchard
  
Whole
  
Corporate Loan
Fixed
15.00%
  
            9,750
  
          9,750
  
           9,750
(2)
10/31/14
San Marbeya
  
Whole
  
Multifamily
  
Fixed
5.88%
  
          25,190
  
        28,403
  
         29,305
  
01/01/15
Churchill
  
Whole
  
Mixed Use
  
LIBOR +
3.75%
  
               683
  
             683
  
              683
  
06/01/15
Hotel Wales
  
Whole
  
Hotel
  
LIBOR +
4.00%
  
          20,000
  
        20,000
  
         20,000
  
10/05/14
Queensridge
  
Whole
  
Multifamily
  
LIBOR +
11.50%
  
            2,908
  
          2,908
  
           2,908
  
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%
  
               224
  
               -
  
           1,486
  
05/01/16
500-512 Seventh Ave.
  
B Note
  
Office
  
Fixed
7.19%
  
            9,035
  
        10,205
  
         10,871
  
07/11/16
Pinnacle II
  
B Note
  
Office
  
Fixed
6.31%
  
            4,556
  
          4,625
  
           5,071
  
09/06/16
Poipu Shopping Village
  
B Note
  
Retail
  
Fixed
6.62%
  
            1,873
  
          2,044
  
           2,823
  
01/06/17
Wellington Tower
  
Mezz
  
Mixed Use
  
Fixed
6.79%
  
            2,352
  
          2,978
  
           3,502
  
07/11/17
Mentor  Building (39 South St)
  
Whole
  
Retail
  
Fixed
10.00%
  
            2,497
  
          2,497
  
           2,497
  
09/10/17
1515 Market Street
  
Whole
  
Office
  
Fixed
7.50%
  
          24,821
  
        24,821
  
         36,171
  
02/01/16
                               
                               
Loans with Potential Equity Participation
                          
                               
Stamford -20% Owned Equity Inv(1)
  
Mezz
  
Office
  
LIBOR +
3.25%
  
 $       40,000
  
 $     43,641
  
 $      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)
December 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
  
Englewood, CO (Crossroads I)
  
100%
  
Office
  
         118,000
  
                      8,159
  
                          69
  
                    -
 (1)
Englewood, CO (Crossroads II)
  
100%
  
Office
  
         118,000
  
                    11,330
  
                          96
  
                    -
 (1)
Memphis, TN, (Waterford Apartments)
  
100%
  
Multifamily
  
 320 Units
  
                    21,447
  
                   67,022
  
             13,125
  
Cerritos, CA (Cerritos)
  
100%
  
Office
  
         187,000
  
                    22,795
  
                        122
  
             23,000
  
Philadelphia, PA (1515 Market)
  
89%
  
Office
  
         502,000
  
                    44,179
  
                          88
  
             42,440
 (2)
 
Consolidated Operating Properties
Acquired through Asset Purchase
  
%
Owned
Type
  
Square Feet
    
Cost Basis before Accum Depreciation
    
Cost per Square Foot or Unit
    
Debt Balance
      
                                     
Atlanta, GA
   100 %
Retail
   61,000       1,959     $ 32     $ -   (1 )
Greensboro, NC
   100 %
Retail
   46,000       3,801       83       -   (1 )
Louisville , KY
   100 %
Retail
   47,000       3,098       66       -   (1 )
Amherst, NY
   100 %
Office
   200,000       20,995       105       -      
Chicago, IL (One East Erie)
   100 %
Office
   126,000       26,510       210       19,856      
Chicago, IL (River City / Marc Realty )
   60 %
Office
   253,000       16,769       66       8,579      
Houston, TX (Westheimer)
   32 %
Office
   614,000       69,543       113       47,201      
Lisle, IL (550 Corporetum)
   100 %
Office
   169,000       22,607       134       5,753      
Lisle, IL (1050 Corporetum / Marc Realty)
   60 %
Office
   54,000       4,272       79       5,470      
New York, NY
  
var
Office / Retail
   105,000       60,247       574       51,950      
Orlando, FL
   100 %
Office
   257,000       17,290       67       36,983      
Plantation, FL
   100 %
Office
   120,000       12,935       108       10,685      
South Burlington, VT
   100 %
Office
   54,000       3,407       63       -   (1 )
Jacksonville, FL
   100 %
Warehouse
   588,000       13,092       22       -   (1 )
Churchill, PA
   100 %
Mixed Use
   52,000       9,705       187       5,049      
Greensboro, NC (Lake Brandt)
   100 %
Multifamily
  
284 Units
       18,575       65,405       13,600      
Phoenix, AZ (Monroe)
   84 %
Multifamily
  
184 Units
       104,935       570,299       24,390      
Stamford, CT (Highgrove)
   84 %
Multifamily
  
92 Units
       79,167       860,511       48,780      
San Pedro, CA
   84 %
Multifamily
  
89 Units
       19,831       222,820       12,195      
Houston, TX (Mosaic)
   84 %
Multifamily
  
396 Units
       39,541       99,851       64,635      
Oklahoma City, OK
   80 %
Multifamily
  
184 Units
       14,679       79,777       9,226      
 
(1)   These properties collateralize our revolving line of credit.
(2) The Trust holds the mezzanine debt on this property
 
 
18
 
 
WINTHROP REALTY TRUST
SELECTED INVESTMENT DATA (Continued)
December 31, 2013
(In thousands, except square footage and cost per square foot/unit, Unaudited)
 
Equity Investment Operating Properties Foreclosure
Acquired through Direct or Indirect
  
%
Owned
  
Type
  
Square Feet/ Units
    
Equity Investment
Carrying Amount
  
Atrium Mall
   50 %  
Retail
   71,000     $ 3,845  
                         
Equity Investment Operating Properties
Acquired through Asset Purchase
  
%
Owned
  
Type
  
Square Feet/ Units
    
Equity Investment
Carrying Amount
  
                         
Marc Realty (4 Equity Investments)
   50 %  
Office
   665,000     $ 6,751  
Sealy Equity Investment
   60 %  
Industrial/Office
   472,000       7,635  
WRT-Elad / One South State St
   38 %  
Retail / Office
   942,000       23,661  
Vintage Housing Holdings
  
Var
    
Multifamily
  
4,655 Units
       34,153  
Mentor Retail LLC
   50 %  
Retail
   7,000       635  
701 Seventh WRT Investors
   54 %  
Development
   120,000       55,259  
WRT-Fenway Wateridge
   50 %  
Office
   62,000       1,898  
                         
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 %  
Office
   62,000       235  
 
 
19
 
 
WINTHROP REALTY TRUST
SCHEDULE OF SECURITIES CARRIED AT FAIR VALUE
(In thousands, Unaudited)
 
   
December 31, 2013
  
September 30,2013
  
June 30,2013
    
March 31, 2013
    
December 31, 2012
  
   
Cost
    
Fair Value
  
Cost
    
Fair Value
  
Cost
    
Fair Value
  
Cost
    
Fair Value
  
Cost
    
Fair Value
  
                                                             
 REIT Common shares
   $ -     $ -     $ 6,318     $ 7,074     $ 8,920     $ 10,360     $ 8,920     $ 12,220     $ 15,876     $ 19,694  
 Total securities carried at fair value
   $ -     $ -     $ 6,318     $ 7,074     $ 8,920     $ 10,360     $ 8,920     $ 12,220     $ 15,876     $ 19,694  
 
Securities carried at fair value are comprised of REIT common shares for which the Trust has elected the fair value option.
 
   
Three Months Ended
   
December 31,
2013
  
September 30,
2013
  
June 30,
2013
  
March 31,
2013
  
December 31,
2012
                                         
Net unrealized gain (loss)
   $ -     $ -     $ (1,645 )   $ 1,718     $ (338 )
                                         
Net realized gain (loss)
   $ 875     $ (31 )   $ -     $ (102 )   $ -  
 
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)
Dec 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      
10/05/14
   -  
The Shops at Wailea
  
Sep-12
  
Retail
  
Maui
HI
  
B Note
  
Fixed
 6.150 %       6,292       7,584      
10/06/14
   106,170  
Legacy Orchard
  
Oct-10
  
Corporate Loan
    N/A  N/A  
Whole
  
Fixed
 15.000 %       9,750       9,750   (6 )
10/31/14
   -  
San Marbeya
  
Jul-10
  
Multifamily
  
Tempe
AZ
  
Whole
  
Fixed
 5.880 %       28,546       29,305      
01/01/15
   -  
Playa Vista
  
Jan-13
  
Office
  
Playa Vista
CA
  
Mezz
  
LIBOR +
 14.250 %       10,327       10,250      
01/23/16
   80,300  
Churchill
  
May-12
  
Mixed Use
  
Churchill
PA
  
Whole
  
LIBOR +
 3.750 %       683       683      
06/01/15
   -  
Queensridge Towers
  
Nov-12
  
Multifamily
  
Las Vegas
NV
  
Whole
  
LIBOR +
 11.500 %       2,942       2,908      
11/15/15
   -  
Rockwell
  
Aug-10
  
Indust /Whse
  
Shirley
NY
  
Mezz
  
Fixed
 12.000 %       -       1,486      
05/01/16
   16,383  
500-512 Seventh Ave.
  
Jul-10
  
Office
  
New York
NY
  
B Note
  
Fixed
 7.190 %       10,250       10,871      
07/11/16
   243,870  
Pinnacle II
  
Sep-12
  
Office
  
Burbank
CA
  
B Note
  
Fixed
 6.313 %       4,648       5,071      
09/06/16
   83,469  
Poipu Shopping Village
  
Sep-12
  
Retail
  
Kauai
HI
  
B Note
  
Fixed
 6.618 %       2,058       2,823      
01/06/17
   28,547  
Wellington Tower
  
Dec-09
  
Mixed Use
  
New York
NY
  
Mezz
  
Fixed
 6.790 %       2,991       3,502      
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
   -  
1515 Market Street
  
Dec-12
  
Office
  
Philadelphia
PA
  
Whole
  
Fixed
 7.500 %       24,821       36,171      
02/01/16
   42,440  
                     
Total Loans Receivable
   $ 125,921     $ 142,901              
Loan Securities Carried at Fair Value
                                                    
WBCMT 2007
  
Dec-09
  
Hotel
  
Various
    
CMBS
  
LIBOR +
 1.750 %       226       1,130      
09/09/14
   1,232  
                     
Total Loan Securities Carried at Fair Value
   $ 226     $ 1,130              
Equity Investment Loan Assets (8,9)
                                                    
Stamford Portfolio
  
Feb-12
  
Office
  
Stamford
CT
  
Mezz
  
LIBOR +
 3.250 %       43,718       47,000   (6 )
08/06/14
   400,000  
                     
Total Loan Assets of Equity Investments
   $ 43,718     $ 47,000              
 
Continued on next page
 
 
 
21
 
 
WINTHROP REALTY TRUST
SCHEDULE OF LOAN ASSETS
 (In thousands, Unaudited)
 
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 $501,000 and cumulative accretion of $6,488,000 at December 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.
 
 
22
 
 
WINTHROP REALTY TRUST
NET OPERATING INCOME FROM CONSOLIDATED PROPERTIES
 (In thousands)
(Unaudited)
 
   
Three Months Ended
  
   
Dec 31,
2013
    
Sep 30,
2013
    
Jun 30,
2013
    
Mar 31,
2013
    
Dec 31,
2012
  
Rents and reimbursements
                              
Minimum rent
   $ 18,727     $ 14,285     $ 13,944     $ 13,115     $ 10,703  
Deferred rents (straight-line)
     (181 )     (125 )     133       255       253  
Recovery income
     978       627       1,067       804       793  
Above and below market rents
     37       (22 )     (22 )     7       119  
Less:
                                        
Lease concessions and abatements
     (1,244 )     (427 )     (390 )     (465 )     (421 )
Total rents and reimbursements
     18,317       14,338       14,732       13,716       11,447  
 
                                        
Rental property expenses
                                        
Property operating
     6,745       5,022       4,529       4,428       3,648  
Real estate taxes
     2,113       1,562       1,486       715       1,019  
Total rental property expenses
     8,858       6,584       6,015       5,143       4,667  
                                         
Net operating income (1)
                                        
from consolidated properties
   $ 9,459     $ 7,754     $ 8,717     $ 8,573     $ 6,780  
 
(1) See definition of non-GAAP measure of Net Operating Income on page 38 of the supplemental package.
      
 
 
23
 
 
WINTHROP REALTY TRUST
SCHEDULE OF INTEREST, DIVIDENDS AND DISCOUNT ACCRETION
 (In thousands)
(Unaudited)
 
   
Three Months Ended
  
   
Dec 31,
2013
    
Sep 30,
2013
    
Jun 30,
2013
    
Mar 31,
2013
    
Dec 31,
2012
  
Interest, Dividends and Discount
 Accretion by Business Segment:
              
Loan Assets
   $ 5,260     $ 3,817     $ 4,208     $ 5,170     $ 5,955  
REIT Securities
     (350 )     100       100       150       150  
Total Interest,  Dividends and
    Discount Accretion
   $ 4,910     $ 3,917     $ 4,308     $ 5,320     $ 6,105  
                                         
                                         
Interest, Dividends and Discount
 Accretion Detail:
                                  
Interest on loan assets
   $ 3,422     $ 3,011     $ 3,447     $ 4,454     $ 3,607  
Accretion of loan discount
     1,838       806       761       716       2,348  
Interest and dividends on REIT securities
     (350 )     100       100       150       150  
Total Interest,  Dividends and
    Discount Accretion
   $ 4,910     $ 3,917     $ 4,308     $ 5,320     $ 6,105  
 
 
24
 
 
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES - SELECTED PROPERTY DATA
December 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 (2023/2033)
     200,000     $ 17,108     $ 86  
Fee
     (1 )     (1)
Cerritos, CA
2012
   100 %     187,000     80 %
Sunwest         (2018)
     37,000       21,884       117  
Fee
     23,000    
01/2017
 5.07%
  
Chicago, IL
(One East Erie)
2005
   100 %     126,000     97 %
River North Surgery (2023)
     15,000       20,718       164  
Fee
     19,856    
03/2016
 5.75%
  
Chicago, IL
(River City / Marc Realty)
2007
   60 %     253,000     50 %
ITAV
(2024/2029)
     37,000       14,252       56  
Fee
     8,579    
04/2015
5.5%
  
                       
MFS/Worldcom (2019/2023)
     60,000                                  
Englewood, CO Crossroads I
2010
   100 %     118,000     96 %
Hitachi Data
(2024 / 2034)
     61,000       7,283       62  
Fee
     (1 )     (1)
                       
RGN-Denver LLC
(2015/ 2025)
     17,000                                  
Englewood, CO Crossroads II
2010
   100 %     118,000     96 %
TIC Holdings
(2019 / 2044)
     95,000       9,989       85  
Fee
     (1 )     (1)
Houston, TX
2004
   32 %     614,000     100 %
Spectra Energy (2026/2036)
     614,000       55,358       90  
Fee
     47,201    
04/2016
6.01%
  
Lisle, IL
2006
   100 %     169,000     78 %
United Healthcare
(2015)
     41,000       18,827       111  
Fee
     5,752    
10/2014
Libor+2.5%
  
Lisle, IL
(Marc Realty)
2006
   60 %     54,000     100 %
Ryerson
(2018/2028)
     54,000       3,637       67  
Fee
     5,470    
03/2017
5.55%
  
New York, NY
(450 West 14th)
2011
  
var
       105,000     82 %
Alice + Olivia (2021/2031)
     27,000       56,507       538  
Ground Lease
     51,950    
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       13,346       52  
Ground Lease
     36,983    
07/2017
6.40%
  
Plantation, FL
2004
   100 %     120,000     100 %
AT&T Service, Inc.
 (2020/2035)
     120,000       10,897       91  
Fee
     10,685    
04/2018
6.48%
  
South Burlington,  VT
2005
   100 %     54,000     100 %
Fairpoint Comm.
(2014/2029)
     54,000       2,737       51  
Ground Lease
     (1 )     (1)
1515 Market Street
2012
   89 %     502,000     73 %
Temple University (2022)
     128,000       43,391       86         42,440    
05/1/2016 
2.5%
  
Subtotal - Office
             2,877,000                       295,934                 251,916        
 
 
25
 
 
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES - SELECTED PROPERTY DATA (Continued)
December 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     $ 1,816  
Ground Lease
     (1)     (1)  
Greensboro, NC
2004
     100 %     46,000       100 %  
The Kroger Co. (2017/2037)
       46,000       2,934  
Ground Lease
     (1)     (1)  
Louisville, KY
2004
     100 %     47,000       100 %  
The Kroger Co.
(2015/2040)
       47,000       2,477  
Fee
     (1)     (1)  
                                                                 
Subtotal Retail
               154,000                             7,227                  
Residential
                                                                
Memphis, TN
2012
     100 %  
320 units
       93 %     n/a       n/a       20,298  
Fee
     13,125    
8/2014
Libor + 2.5%
  
Greensboro, NC
2012
     100 %  
284 units
       96 %     n/a       n/a       17,809  
Fee
     13,600     8/2016 6.22%  
Houston, TX
2013
     84 %  
396 units
       90 %     n/a       n/a       104,519         64,635    
10/2016
LIBOR + 2.0%
  
San Pedro, CA
2013
     84 %  
89 units
       99 %     n/a       n/a       19,733         12,195    
10/2016
LIBOR + 2.0%
  
Stamford, CT
2013
     84 %  
92 units
       95 %     n/a       n/a       78,852         48,780    
10/2016
LIBOR + 2.0%
  
Phoenix, AZ
2013
     84 %  
184 units
       93 %     n/a       n/a       39,360         24,390    
10/2016
LIBOR + 2.0%
  
Oklahoma City, OK
2013
     80 %  
184 units
       97 %                     14,609  
Fee
     9,226     02/2021 5.7%  
Subtotal Residential
               1,549    
units
                       295,180                  
                                                                   
Other
                                                                  
Warehouse
                                                                  
Jacksonville, FL
2004
     100 %     588,000       100 %  
Fanatics, Inc.
(2015/2024)
       561,000       10,550  
Fee
     (1)     (1)  
                                                                   
Mixed Use
                                                                  
Churchill, PA
2004
     100 %     52,000       100 %  
Westinghouse
(2024/2039)
       52,000       5,529  
Fee
     5,049     8/2024 3.50%  
Subtotal - Other
               640,000                               16,079                  
Total Consolidated Properties
       3,671,000                             $ 614,420       $ 442,917        
 
                     
(**) 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 December 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.  During the fourth quarter legal title to the ground will vest with the Trust.
 
 
26
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS - SELECTED DATA
December 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       75 %
No tenants over 10%
     -       6,551  
Fee
     6,770    
09/2017
LIBOR + 2.75%
  
4415 West Harrison, Hillside, IL
(High Point)
2005
     50 %     192,000       65 %
North American Medical Mgmt (2015/2020)
     24,000       -  
Fee
     4,335     12/2015 5.62%  
1701 E. Woodfield, Shaumburg, IL
2005
     50 %     175,000       87 %
No tenants over 10%
     -       150  
Fee
     5,369    
09/2015
Libor + 3% (2)
  
2205-55 Enterprise,
Westchester, IL
2005
     50 %     130,000       91 %
Consumer Portfolio
(2014/2019)
     18,900       50  
Fee
     8,759     10/2019 4.30%  
                           
UroPartners LLC
(2015)
     14,500                          
Total Marc Realty Portfolio
               665,000                       $ 6,751       $ 25,233        
                                                             
Sealy Venture - Equity Investment Operating Property
                                    
Atlanta, GA
(Northwest Atlanta)
2006
     60 %     472,000       77 %
Original Mattress
(2020/2025)
     57,000     $ 7,635  
Fee
   $ 13,592    
09/2015
Libor +5.35% (3)
  
                                                             
Mentor Retail LLC - Equity Investment Operating Property
                                
39  South State Street
Chicago, IL
2012
     50 %     7,000       100 %
American Apparel
(2022 )
     7,000     $ 635  
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
     38 %     943,944       83 %
Target
(2028 /2063)
     147,000     $ 23,661  
Fee
   $ 113,500     11/2018 3.95%  
                                                             
                           
Walgreens(2022/2027)
     95,000                          
                           
Illinois Dept of Employment    (2019/2024)
     243,000     $ -                  
                           
Art Insitute of Chicago (2020/2030)
     153,000     $ -                  
                943,944                       $ 23,661       $ 113,500        
                                                             
 
(Continued on next page)
 
 
27
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS – SELECTED DATA (Continued)
December 31, 2013
(Unaudited)
 
                  (**)          
Major
            
($000's)
  
Debt
Description and
Year
  
Trust’s
    
Rentable
    
%
    
Major Tenants
    
Tenants’
    
Equity
  
Ownership
  
Debt
  
Maturity
Location
 Acquired  
Ownership
    
Square Feet
    
Leased
     (Lease /Options Exp)    
Sq. Feet.
    
Investment
  
of Land
  
Balance (1)
  
& Int Rate
701 Seventh WRT Investor-Equtiy Investment Operating Property
                                    
           
 
                                  
10/1/2015
701 Seventh Avenue
2012
     54%    
Under
development
     0%     N/A           $ 55,259  
Fee
   $ 376,600  
Libor +10.2(4)
New York, NY
                                                      
WRT-Fenway Wateridge - Equity Investment in Operating Property
                                        
Parkway
                        
Verint Americas
                          
11/1/2016
San Diego, CA
2012
     50%       62,000     89%     (2018)       6,500     $ 1,898  
Fee
   $ 7,000  
Libor +4.5(8)
                           
Flores Lund
                              
                            (2017)       10,000                      
                           
Quidel Corp
                              
                            (2014)       11,000                      
                           
Verizon Wireless
                              
                            (2016)       13,000                      
                62,000                         $ 1,898       $ 7,000    
 
Atrium - Equity Investment in Operating Property
                                                        
Chicago, IL
2013
     50%       71,000     76%     N/A             $ 3,845  
Ground Lease
   $ -    
 
 
28
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS – SELECTED DATA (Continued)
December 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
95%
Fee
Bouquet Canyon Seniors
Santa Clarita, CA
2011
      264
99%
Fee
Elk Creek Apartments
Sequim, WA
2011
      138
99%
Fee
Falls Creek Apartments
Couer d' Alene, ID
2011
      170
91%
Fee
Forest Creek Apartments
Spokane, WA
2011
      252
95%
Fee
Hamilton Place Seniors
Bellingham, WA
2011
        94
98%
Fee
Heritage Place Apartments
St. Ann, MO
2011
      113
95%
Fee
Holly Village Apartments
Everett, WA
2011
      149
100%
Fee
Larkin Place Apartments
Bellingham, WA
2011
      101
94%
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
93%
Fee
The Bluffs Apartments
Reno, NV
2011
      300
95%
Fee
Twin Ponds Apartments
Arlington, WA
2011
      134
95%
Fee
Vintage at Bend
Bend, OR
2011
      106
97%
Fee
Vintage at Bremerton
Bremerton, WA
2011
      143
91%
Fee
Vintage at Burien
Burien, WA
2011
      101
97%
Ground Lease
Vintage at Chehalis
Chehalis, WA
2011
      150
94%
Fee
Vintage at Everett
Everett, WA
2011
      259
97%
Fee
Vintage at Mt. Vernon
Mt. Vernon, WA
2011
      154
97%
Fee
Vintage at Napa
Napa, CA
2011
      115
96%
Fee
Vintage at Richland
Richland, WA
2011
      150
93%
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
95%
Fee
Vintage at Vancouver
Vancouver, WA
2011
      154
98%
Fee
Vista Sonoma Seniors Apts
Santa Rosa, CA
2011
      189
94%
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)
 
 
29
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS – SELECTED DATA (Continued)
Year Ended December 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 27 )
2005
   50 %   665,000     $ 6,751         $ 25,853   (6 )
Sealy Northwest Atlanta (from Page 27)
2006
   60 %   472,000       7,635           13,592   (6 )
Mentor Retail LLC (from Page 27)
2012
   49 %   7,000       635           2,497   (6 )
WRT-Elad / One South State Equity  (from Page 27)
2012
   38 %   943,944       23,661           113,500   (6 )
Vintage Portfolio  (from page 29)
2011
  
Var
  
4,655 units
       34,153   (5 )     250,806   (6 )
701 Seventh Avenue (from page 28)
2012
   54 %  
Under development
       55,259           376,560   (6 )
Wateridge (from page 28)
2012
   50 %   62,000       1,898           7,000   (6 )
Atrium Mall LLC (from page 28)
2013
   50 %   71,000       3,845           -      
Total Equity Investment Operating Properties
                   133,837         $ 789,808      
                                       
Loan Asset Equity Investments
                                      
WRT-ROIC Lakeside Eagle
2011
   50 %           -                  
WRT-Stamford LLC
2012
   20 %           9,064                  
10 Metrotech Loan LLC
2012
   33 %           11                  
                                       
                                       
Other Equity Investment
                                      
Concord Debt Holdings LLC
2012
   67 %           966   (7 )            
CDH CDO LLC
2012
   50 %           4,215   (7 )            
RE CDO Management LLC
2011
   50 %           992                  
Total Equity Investments
                 $ 149,085                  
 
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 $5,369,000 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 $34,153 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.
              
(8) An interest rate cap was purchased that caps Libor at 2.5%
 
 
30
 
 
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES – OPERATING SUMMARY
(In thousands, 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 %     3       154,000     $ 694     $ 1     $ -     $ 693     $ -       (1 )         $ 305     $ -     $ 387  
 Office
   100.0 %     10       1,349,000       21,742       5,964       1,979       13,799       6,509       (22 )     -       6,926       -       342  
 Residential
   100.0 %     2    
604 units
       5,783       2,529       613       2,641       962       (39 )             1,780       -       (140 )
 Other
   100.0 %     2       640,000       2,408       551       117       1,740       102       (410 )             640       -       588  
            17       2,143,000       30,627       9,045       2,709       18,873       7,573       (472 )     -       9,651       -       1,177  
Partially Owned Consolidated Properties
                                                                                          
Chicago, IL
(River City/Marc Realty)
   60.0 %     1       253,000       3,109       1,518       527       1,064       512       -       -       649       (39 )     (58 )
Houston, TX
(Multiple LP's)
   32.0 %     1       614,000       5,666       10       -       5,656       3,134       (91 )             2,906       (401 )     (74 )
Lisle, IL
(Marc Realty)
   60.0 %     1       54,000       802       286       105       411       323       -               162       (30 )     (44 )
New York, NY
(450 W 14th St)
   70.0 %     1       105,000       7,207       4,205       626       2,376       1,831       -               2,519       (967 )     (1,007 )
Philadelphia, , PA
1515 Market (3)
   49.0 %     1       502,000       9,484       4,065       1,255       4,164       5,407       (31 )             2,501       (1,925 )     (1,850 )
Phoenix, AZ
(Mosaic)
   83.0 %     1    
184 units
       1,688       542       325       821       351       (472 )             774       -       (776 )
Stamford, CT
(Highgrove)
   83.0 %     1    
92 units
       1,137       482       168       487       264       (400 )             608       -       (785 )
San Pedro, CA
(San Pedro)
   83.0 %     1    
89 units
       352       140       48       164       66       (95 )             164       -       (161 )
Houston, TX
(Monroe)
   83.0 %     1    
396 units
       696       319       91       286       132       (171 )             358       -       (375 )
Oklahoma City, OK
 (Summit Pointe)
   79.0 %     1    
184 units
       335       112       22       201       131       -394               151       -579       104  
            10       1,528,000       30,476       11,679       3,167       15,630       12,151       (1,654 )     -       10,792       (3,941 )     (5,026 )
Total Consolidated Properties
       27       3,671,000     $ 61,103     $ 20,724     $ 5,876     $ 34,503     $ 19,724     $ (2,126 )   $ -     $ 20,443     $ (3,941 )   $ (3,849 )
Line of Credit interest expense
                                               322                                          
Interest expense related to Senior notes
                                               6,684                                          
Interest expense WRT Lender
                                                       1,898                                          
Preferred Interest
                                                           304                                          
Reclassified related party interest expense
                                               (5,520 )                                        
Total
                                                         $ 23,412                                          
 
(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.
(3) In addition to its equity ownership, the Trust is entitled to an additional 40% of profits above the debt.
            
 
 
31
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS – OPERATING SUMMARY
 (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       665,000       10,582       4,857       1,777       3,948       1,241       (47 )     2,993       (333 )     (167 )
Sealy Venture Portfolio
   3       472,000       2,643       886       241       1,516       897       (262 )     1,138       (781 )     (469 )
Mentor Retail
   1       7,000       560       24       67       469       256       18       63       168       84  
WRT-Elad (2)
   1       942,000       25,119       5,387       4,279       15,453       16,024       (149 )     9,588       (10,308 )     1,315  
Vintage Portfolio (2)
   27    
4,655 units
       42,709       17,307       526       24,876       2,121       (5,250 )     517       16,988       9,174  
Wateridge (2)
   1       62,000       1,127       340       95       692       64       (78 )     878       (328 )     183  
Atrium Mall
   1       71,000       1,786       1,037       218       531       -       (48 )     663       (180 )     (90 )
Total Equity Investment
Operating Properties
   38       2,219,000     $ 84,526     $ 29,838     $ 7,203     $ 47,485     $ 20,603     $ (5,816 )   $ 15,840     $ 5,226       10,030  
                                                                                       
                    Marc Realty Portfolio - Amortization of basis differential (3)           (117 )
                    Marc Realty Portfolio - Impairment                           (7,687 )
                    WRT-ROIC Lakeside Eagle-Winthrop's share of net loss from equity investment       (25 )
                    RE CDO Management - Winthrop's share of net income from equity investment       3,709  
                    CDH CDO - Winthrop's share of net income from equity investment             5,959  
                    Concord Debt Holdings - Winthrop's share of net income from equity investment       3,136  
                    701 7th Avenue                                     3,424  
                    WRT-SoCal Lender - Winthrop's share of net income from equity Investment       (2 )
                    Stamford / Mack-Cali - Winthrop's share of net income from equity investment     930  
                    10 Metrotech- Winthrop's share of net income from equity investment               3,284  
                    Equity in loss of equity investments                             $ 22,641  
 
(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.
 
 
32
 
 
WINTHROP REALTY TRUST
CONSOLIDATED DEBT SUMMARY
(In thousands, Unaudited)
 
Description
  
Principal
Outstanding
December 31, 2013
    
Coupon
  
 
2014
Repayment
    
Maturity
Date
    
Amount
Due at
Maturity
    
Weighted
 Average
Maturity
(in years)
  
Fixed rate debt
                                    
Mortgage loans payable
                                    
Chicago, IL  / River City
     8,579       5.50 %     179       04/2015       8,347        
Chicago, IL / Ontario
     19,856       5.75 %     365       03/2016       -        
Houston, TX - Note 1
     25,000       5.22 %     -       04/2016       25,000        
Houston, TX - Note 2
     8,800       6.00 %     -       04/2016       8,800        
Houston, TX - Note 3
     13,401       7.50 %     5,371       04/2016       -        
Philadelphia, PA(1)
     42,440       2.50 %     987       02/2016       39,933        
Greensboro, NC
     13,600       6.22 %     -       08/2016       13,600        
Cerritos, CA
     23,000       5.07 %     -       01/2017       23,000        
Lisle, IL / 1050 Corporetum
     5,470       5.55 %     78       03/2017       5,206        
Orlando, FL
     36,983       6.40 %     637       07/2017       34,567        
Plantation, FL
     10,684       6.48 %     135       04/2018       10,046        
Oklahoma City, OA
     9,226       5.70 %     137       02/2021       8,047        
Churchill, PA
     5,049       3.50 %     132       08/2024       3,389        
Total mortgage loans payable /Wtd Avg
     222,088       4.51 %     8,021               179,935       2.99  
                                                 
Non-recourse secured financing
                                                
San Marbeya A Participation
     15,150       4.85 %     -       01/2015       15,150          
                                                 
Senior notes payable
     86,250       7.75 %     -       08/2022       86,250          
Total Fixed Rate Debt/ Wtd Avg
     323,488       5.39 %     8,021               281,335       4.40  
Floating rate debt
                                                
Mortgage loans payable
                                                
Memphis, TN/ Waterford (LIBOR+2.5%, 0.5% LIBOR Floor)
     13,125       3.00 %     13,125       08/2014       12,931          
Lisle, IL / 550-560 Corporetum  (LIBOR + 2.5%, 1% LIBOR Cap)
     5,752       2.68 %     5,752       10/2014       5,752          
New York, NY (450 W 14th St) (LIBOR + 2.5%, 1% LIBOR Floor)
     51,950       3.50 %     -       05/2016       51,950          
Houston, TX (Mosaic) LIBOR +2% / interest rate swap (2)
     64,635       2.69 %     -       10/2016       64,635          
San Pedro, CA (San Pedro) LIBOR +2% / interest rate swap (2)
     12,195       2.69 %     -       10/2016       12,195          
Stamford, CT (Highgrove) LIBOR +2% /  interest rate swap(2)
     48,780       2.69 %     -       10/2016       48,780          
Phoenix, AZ (Monroe) LIBOR +2%/  interest rate swap (2)
     24,390       2.69 %     -       10/2016       24,390          
      220,827       2.90 %     18,877               220,633       2.47  
                                                 
Non-recourse secured financing
                                                
Hotel Wales A Note Payable - (LIBOR + 1.25, 3% Libor Floor)
     14,000       4.25 %     -       10/2013       14,000          
                                                 
                                                 
Total Floating  Rate Debt/ Wtd Avg
     234,827       2.98 %     18,877               234,633       2.37  
                                                 
Total Consolidated Debt/Wtd Avg
   $ 558,315       4.37 %   $ 26,898             $ 515,968       3.55  
 
(1) An interest rate swap agreement with a notional amount of $42,440 effectively converts the interest rate to a fixed rate of 2.5%.
(2) The loan has an interest rate swap which effectively fixes libor at .69%
 
 
33
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS - DEBT SUMMARY
(In Thousands, Unaudited)
 
Description
  
Principal
Outstanding
December 31, 2013
    
Interest
 Rate
  
Maturity
Date
  
Weighted
 Average
Maturity
(in years)
Fixed rate debt
                    
Marc Realty - 4415 West Harrision, Hillside, IL
     4,335     5.62 %  
12/01/15
    
Marc Realty - 1701 East Woodfield, Shaumburg, IL  (1)
     5,369     4.78 %  
09/01/15
    
Marc Realty - 2205-55 Enterprise, Westchester, IL
     8,759     4.30 %  
10/01/19
    
Mentor Retail - 39 South Street, Chicago, IL
     2,497     10.00 %  
09/10/17
    
WRT-Fenway Wateridge, San Diego, CA (6)
     7,000     6.00 %  
11/01/16
    
WRT-Elad - One South State Street
     113,500     11.00 %  
02/01/15
    
VHH - Bouquet Canyon Seniors
     10,728     6.38 %  
07/01/28
    
VHH - Vintage at Chehalis (2)
     8,190     4.76 %  
06/15/40
    
VHH - Elk Creek Apartments
     7,302     6.60 %  
11/01/39
    
VHH - Falls Creek Apartments
     8,267     6.37 %  
12/01/40
    
VHH - Heritage Place Apartments
     1,732     8.37 %  
07/19/15
    
VHH - Vintage at Mt. Vernon (4)
     930     6.86 %  
01/15/37
    
VHH - Vintage at Mt. Vernon (3)
     7,500     5.31 %  
01/15/37
    
VHH - Vintage at Napa
     5,899     6.26 %  
06/01/34
    
VHH - Vintage at Silverdale (5)
     14,880     5.72 %  
09/15/39
    
VHH - Twin Ponds Apartments
     1,179     6.20 %  
01/01/38
    
VHH - Vintage at Vancouver
     539     8.12 %  
12/01/17
    
VHH - Vista Sonoma Seniors Apts
     9,778     6.56 %  
01/01/32
    
Total Fixed Rate Debt
   $ 218,384  
 Wtd Avg
 8.56 %    
 Wtd Avg
8.79
 
Notes to Fixed Rate Debt Schedule:
              
(1) An interest rate swap agreement with a notional amount of $5,369 effectively converts the interest rate to a fixed rate of 4.78%.
(2) An interest rate swap agreement with a notional amount of $7,844 effectively converts the interest rate to a fixed rate of 4.76%.
(3) An interest rate swap agreement with a notional amount of $7,500  effectively converts the interest rate to a fixed rate of 5.31%.
(4) An interest rate swap agreement with a notional amount of $920 effectively converts the interest rate to a fixed rate of 6.86%.
(5) An interest rate swap agreement with a notional amount of $14,246  effectively converts the interest rate to a fixed rate of 5.72%.
(6) An interest rate swap agreement with a notional amount of $7,000 effectively converts the interest rate to a fixed rate of 6.00%
               
         
(Continued on next page)
 
 
34
 
 
WINTHROP REALTY TRUST
EQUITY INVESTMENTS DEBT SUMMARY
(Unaudited)
 
Description
  
Principal
Outstanding
December 31, 2013
  
Interest
Rate (1), (2)
  
Coupon
  
Maturity
Date
Weighted
 Average
Maturity
(in years)
Floating rate debt
                        
Sealy - Northwest Atlanta, Atlanta, GA
     13,592  
LIBOR +
 5.35 %   5.52 %  
09/29/15
  
Marc Realty - 223 West Jackson, Chicago, IL (3)
     6,770  
LIBOR +
 2.25 %   4.25 %  
09/01/17
  
701 Seventh - 701 Seventh Avenue, New York, NY (4)
     237,500  
LIBOR +
 4.25 %   5.25 %  
10/01/15
  
701 Seventh - 701 Seventh Avenue, New York, NY (4)
     137,500  
LIBOR +
 11.25 %   12.25 %  
10/01/15
  
701 Seventh - 701 Seventh Avenue, New York, NY (4)
     1,560  
LIBOR +
 7.00 %   8.00 %  
10/01/15
  
VHH - Agave Associates
     14,600  
SIFMA +
 1.28 %   1.33 %  
10/15/36
  
VHH - Vintage at Bend
     5,500  
SIFMA +
 1.24 %   1.29 %  
12/15/36
  
VHH - Vintage at Bremerton
     6,200  
SIFMA +
 1.55 %   1.60 %  
03/15/33
  
VHH - Vintage at Burien
     6,680  
SIFMA +
 1.50 %   1.55 %  
01/15/38
  
VHH - Vintage at Everett
     16,180  
SIFMA +
 1.50 %   1.55 %  
01/15/38
  
VHH - Forest Creek Apartments
     13,680  
SIFMA +
 1.68 %   1.73 %  
06/15/40
  
VHH - Hamilton Place Seniors
     3,590  
SIFMA +
 1.67 %   1.72 %  
07/01/33
  
VHH - Holly Village Apartments
     6,870  
SIFMA +
 1.58 %   1.63 %  
07/31/32
  
VHH - Larkin Place Apartments
     4,825  
SIFMA +
 1.51 %   1.56 %  
07/01/33
  
VHH - Vintage at Richland
     7,535  
SIFMA +
 1.83 %   1.88 %  
01/15/38
  
VHH - Rosecreek Senior Living
     3,267  
SIFMA +
 0.51 %   0.56 %  
12/31/37
  
VHH - Vintage at Sequim
     6,234  
SIFMA +
 2.35 %   2.40 %  
03/01/38
  
VHH - Silver Creek Apartments
     12,775  
SIFMA +
 1.75 %   1.80 %  
12/15/37
  
VHH - Vintage at Spokane
     16,295  
SIFMA +
 1.46 %   1.51 %  
08/15/40
  
VHH - Seven Hills/ St Rose
     14,770  
SIFMA +
 1.47 %   1.52 %  
10/15/35
  
VHH - The Bluffs Apartments
     18,300  
SIFMA +
 1.57 %   1.62 %  
09/15/34
  
VHH - Twin Ponds Apartments
     5,515  
SIFMA +
 1.53 %   1.58 %  
01/01/38
  
VHH - Vintage at Vancouver
     7,725  
SIFMA +
 2.16 %   2.21 %  
03/01/36
  
Total Floating Rate Debt
     567,463    
Wtd Avg
   5.86 %  
 Wtd Avg
     8.17
Total Joint Venture Debt
   $ 785,847    
Wtd Avg
   6.61 %  
 Wtd Avg
     8.34
 
Notes to Floating Rate Debt Schedule:
                      
(1) LIBOR rate used to determine coupon on floating rate debt at December 31, 2013 was .1677%
              
(2) SIFMA = Securities Industry and Financial Markets Association Municipal Swap Index. SIFMA rate used to determine coupon on floating rate debt at November 30, 2013 on the Vintage debt was 0.05%. 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%
                      
 
 
35
 
 
WINTHROP REALTY TRUST
LEASE EXPIRATION SUMMARY
 (In thousands)
 
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:
                    
2014
     102,000       8 %   $ 1,635,000     $ 16.03  
2015
     130,000       11 %     2,453,000       18.87  
2016
     67,000       6 %     1,272,000       18.99  
2017
     94,000       8 %     1,664,000       17.70  
2018
     130,000       11 %     2,596,000       19.97  
2019
     211,000       18 %     4,904,000       23.24  
2020
     7,000       1 %     146,000       20.86  
2021
     87,000       7 %     4,554,000       52.34  
2022
     182,000       15 %     4,319,000       23.73  
2023
     38,000       3 %     996,000       26.21  
Thereafter
     147,000       12 %     2,426,000       16.50  
                                 
Consolidated Single Tenant Operating Properties:
                          
2014
     54,000       3 %   $ 840,000     $ 15.56  
2015
     608,000       29 %     1,045,000       1.72  
2016
     88,000       4 %     382,000       4.34  
2017
     303,000       14 %     3,822,000       12.61  
2018
     54,000       3 %     945,000       17.50  
2019
     -       0 %     -       -  
2020
     120,000       6 %     1,447,000       12.06  
2021
     -       0 %     -       -  
2022
     -       0 %     -       -  
2023
     200,000       9 %     1,980,000       9.90  
Thereafter
     666,000       32 %     8,684,000       13.04  
 
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.
  
 
 
36
 
 
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
  
   
Dec 31,
    
Sep 30,
    
Jun 30,
    
Mar 31,
    
Dec 31,
  
   
2013
    
2013
    
2013
    
2013
    
2012
  
                               
NOI from consolidated properties  (1)(4)
   $ 9,459     $ 7,754     $ 8,717     $ 8,573     $ 6,780  
Less:
                                        
   Interest expense
     (5,886 )     (5,216 )     (6,492 )     (5,818 )     (5,746 )
   Depreciation and amortization
     (6,391 )     (4,706 )     (4,704 )     (4,642 )     (4,158 )
   (Income) loss attributable to non-controlling interest
     1,871       995       629       795       (188 )
WRT share of income (loss) from consolidated properties (2)(4)
     (947 )     (1,173 )     (1,850 )     (1,092 )     (3,312 )
                                         
Equity in income (loss) of equity investments (3)
     (3,609 )     13,855       4,526       7,869       791  
                                         
Add:
                                        
   Interest, dividends and discount accretion
     4,910       3,917       4,308       5,320       6,106  
Gain (loss) on sale of loan securities carried at fair value
     -       -       -       -       -  
Earnings from preferred  equity investments
     37       189       185       202       -  
   Unrealized gain (loss) on loan securities carried at fair value
     -               215       -       -  
   Unrealized gain (loss) on securities carried at fair value
     -       -       (1,860 )     1,718       (338 )
   Realized gain (loss) on securities carried at fair value
     875       (31 )             (102 )     -  
   Realized gain (loss) on loan securities carried at fair value
                                     614  
   Interest and other income
     89       101       115       70       267  
   (Loss) Income from discontinued operations
     (147 )     (1,505 )     6,425       2,894       (840 )
                                         
Less:
                                        
Income attributable to Series D preferred shares
     (2,786 )     (2,787 )     (2,786 )     (2,787 )     (2,787 )
Amount allocated to restricted shares
     (90 )     (106 )     (98 )     (16 )     -  
   General and administrative
     (1,316 )     (1,109 )     (1,094 )     (844 )     (1,098 )
   Related party fees
     (2,423 )     (2,309 )     (2,291 )     (2,266 )     (2,312 )
Transaction costs
     (1,727 )     (106 )     (46 )     (6 )     (86 )
   State and local tax expense
     (203 )     (85 )     (125 )     (17 )     (21 )
   Loss on extinguishment of debt
     -       -       -       -       (121 )
   Provision for loss on loan receivables
     (348 )     -       -       -          
Impairment loss on investment in real estate
     -       -       -       -       (1,738 )
Settlement expense
     (261 )     (16 )     (134 )     -       -  
Net income attributable to Common Shares
   $ (7,946 )   $ 8,835     $ 5,490     $ 10,943     $ (4,875 )
 
(1) See additional NOI detail on Page 23 of the supplemental package.
            
(2) See detail for the Twelve months ended December 31, 2013 on Page 31 of the supplemental package.
    
(3) See detail for the Twelve months ended December 31, 2013 on Page 32 of the supplemental package.
    
(4) See definitions for non-GAAP measures on page 38 of the supplemental package.
            
 
 
37
 
 
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.
 
 
38
 
 
WINTHROP REALTY TRUST
SUPPLEMENTAL DEFINITIONS
 
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.
 
 
39
 
 
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
  
 
Carolyn Tiffany, Investor Relations
Winthrop Realty Trust
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
Ross L. Smotrich
Barclays Capital
(212) 526-2306
ross.smotrich@barcap.com
 
Jordan Sadler
KeyBanc
(917) 368-2280
 jsadler@keybanccm.com
 
Craig Mailman
KeyBanc
(917) 368-2316
cmailman@keybanccm.com
 
Mitch Germain
 
JMP Securities
 
(212) 906-3546
mgermain@jmpsecurities.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.
 
40

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