Winthrop Realty Trust Announces Results for Third Quarter 2012

Winthrop Realty Trust Announces Results for Third Quarter 2012

                       Announces Share Repurchase Plan

                    Declares Fourth Quarter 2012 Dividend

BOSTON, Nov. 1, 2012 (GLOBE NEWSWIRE) -- Winthrop Realty Trust (NYSE:FUR), a
leading real estate value investor, today announced financial and operating
results for the third quarter ended September 30, 2012. All per share amounts
are on a diluted basis.

Financial Results

Three Months Ended September 30, 2012

Net income applicable to common shares for the quarter ended September 30,
2012 was $12.3 million, or $0.37 per common share as compared with net income
per common share of $9.8 million or $0.30 per common share for the quarter
ended September 30, 2011.

For the quarter ended September 30, 2012, the Company reported FFO applicable
to common shares of $19.3 million, or $0.58 per common share as compared with
FFO of $18.0 million, or $0.55 per common share for the third quarter of 2011.

Nine Months Ended September 30, 2012

Net income applicable to common shares for the nine months ended September 30,
2012 was $20.2 million or $0.61 per common share as compared with net income
of $20.6 million or $0.67 per common share for the same period ended September
30, 2011. The decrease in per common share amounts is directly attributable to
the $6.5 million dividend payable on the Series D preferred shares issued in
November 2011 and March 2012 as well as an increase in the weighted average
common shares outstanding during 2012 as a result of our public offering in
April 2011.

FFO for the nine months ended September 30, 2012 was $41.3 million or $1.25
per common share as compared with FFO of $42.3 million, or $1.37 per common
share for the nine months ended September 30, 2011.

Michael L. Ashner, Winthrop's Chairman and Chief Executive Officer, commented,
"We are extremely pleased with our third quarter results which we view as
supporting our overall investment strategy as well as the strong leasing
momentum that we are realizing throughout the portfolio."

Net Asset Value as of September 30, 2012

The Company has added net asset value disclosure to assist the financial
community in its evaluation of the Company's value and performance. The
Company's estimated range of net asset value per common share is $12.93 to
$15.13 as compared to $12.76 to $15.10 at June 30, 2012. Details regarding the
methodology used to calculate this range of 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.

2012 Third Quarter Activity

Acquisitions

  *Acquired for $32.5 million the senior participation in a loan on a
    property located at 625 Fulton Avenue, Brooklyn, New York through a
    venture in which the Company holds a one-third interest. Following
    consummation of the acquisition, the venture entered into a forbearance
    agreement with the borrower pursuant to which, among other things, the
    interest rate on the loan was increased to 9% and the principal amount of
    the loan was reset to $40.0 million.
    
  *Acquired for approximately $20.7 million a portfolio of four performing
    B-Note loan assets with an aggregate par value of approximately $25.7
    million. The loans are collateralized by four separate office and retail
    assets located in California and Hawaii.

Dispositions and Loan Asset Repayments

  *Received cash proceeds of approximately $38.4 million on an investment of
    $29.8 million after repayment of a C note in a $798.0 million first
    mortgage encumbering a 4.5 million square foot, 31 property portfolio of
    office properties situated throughout Southern California.
    
  *Sold a vacant property located in Memphis, Tennessee leased by The Kroger
    Co. for $600,000 and received a lease cancellation fee of $600,000 from
    Kroger for total proceeds of $1.2 million.
    
  *Sold an office property located in Indianapolis, Indiana referred to as
    Circle Tower for approximately $6.3 million.
    
  *Received $7.8 million from a loan payoff at par on its Riverside Plaza
    retail property held through a 50% ownership interest in a joint venture
    with WRT-ROIC Riverside LLC.

Leasing Activity

  *Modified and executed a ten-year lease extension on a 614,000 square foot
    property located in Houston, Texas, triple net-leased to Spectra Energy
    Westheimer which extended the term of the lease through April 30, 2026.
    
  *Executed a new ten-year lease with Hitachi Data Systems Corporation
    commencing in March 2013 with an initial term that expires February 29,
    2024 for approximately 53,000 square feet of the Meridian Corporate Center
    I (Crossroads I) office building in Englewood, Colorado. As a result of
    leasing activity, the Crossroads I and Crossroads II properties are 88.43%
    leased, compared to 56.0% when purchased during the fourth quarter of
    2010.
    
  *Executed a 2,500 square foot expansion that expires in 2022 at our Deer
    Valley property, which brings occupancy in the building to 99%.
    
  *Entered into a letter of intent to extend our triple net lease with Ingram
    Micro, the tenant occupying 200,000 square feet of office space in
    Amherst, New York, through 2023 upon expiration of their existing net
    lease. The extension terms are in the process of being finalized.

Financing Activity

  *The Company received net proceeds of approximately $83.2 million from a
    public offering of 7.75% Senior Notes due August 15, 2022 at a price of
    $25.00 per share. The Company may redeem the Notes, in whole or in part,
    at any time or from time to time on or after August 15, 2015.
    
  *The Company and its joint venture partner, Marc Realty, refinanced the
    existing debt on the property located at 223 West Jackson in Chicago,
    Illinois with a new $9.5 million first mortgage on the property.

Subsequent to Quarter End

  *The Company, together with New Valley LLC (wholly owned by Vector Group
    Ltd.) and The Witkoff Group, acquired the property and associated air
    rights located at 701 Seventh Avenue in the Times Square area of New York
    City for a purchase price of $434.0 million, inclusive of closing costs
    and reserves. The Company made an initial contribution of approximately
    $29.0 million and has committed to invest up to $68.0 million on a
    preferred equity basis into the proposed redevelopment that will include
    expansion of the retail space to approximately 80,000 square feet,
    installation of a new approximately 22,000 square foot state of the art
    LED sign and potential hotel development.
    
  *Realized net proceeds of approximately $17.2 million through the sale of
    3.25 million common shares of Cedar Realty Trust. The Company's average
    aggregate cost for such shares was approximately $12.4 million. The
    Company still holds 3.0 million shares of common stock in Cedar.
    
  *Purchased for $75,000, a 100% membership interest in the entity that holds
    the fee simple title to a nine-story, 187,000 square foot, 53% occupied,
    Class B office building located in Cerritos, California, 20 miles south of
    Los Angeles. Concurrent with the acquisition of the property, the Company
    entered into a modification agreement with the first mortgage lender
    pursuant to which the loan was split into a $23.0 million performing A
    Note and a $14.5 million accruing B Note. Pursuant to the modification,
    the Company has additionally funded a $1.5 million leasing reserve (which
    is payable to the Company together with a 9% return thereon prior to
    repayment of the B Note).
    
  *Refinanced the first mortgage debt on its Newbury Village Apartment
    property located in Meriden, Connecticut with a new loan in the principal
    amount of $21.0 million which bears interest at 3.95% and matures on
    October 2, 2022.
    
  *The Company received full repayment of $30.0 million on its loan
    collateralized by Broward Financial Center in Fort Lauderdale, Florida.
    
  *Fully satisfied its mortgage loan payable of $1.7 million collateralized
    by the Lisle, Illinois property referred to as 701 Arboretum.

Fourth Quarter 2012 Dividend Declaration

The Company's Board of Trustees is declaring a dividend for the fourth quarter
of 2012 of $0.1625 per common share payable on January 15, 2013 to common
shareholders of record on December 31, 2012. The Company's Board of Trustees
is also declaring a regular cash dividend for the fourth quarter of 2012 of
$0.578125 per Series D preferred share which is payable on December 31, 2012
to the holders of Series D preferred shares of record on December 16, 2012.

Share Repurchase

The Board of Trustees has approved a share repurchase plan pursuant to which
the Company will be permitted to repurchase up to 1,500,000 of its outstanding
common shares at prices to be determined by the Board of Trustees. As of
October 31, 2012, the Company had 33,088,751 common shares outstanding.

"The decision to implement a share repurchase plan reflects the confidence of
both management and our board of trustees in the Company's continued business
strength," said Michael L. Ashner, Chairman and CEO of Winthrop. "We believe
that the purchase of our own shares is a solid investment in the Company and
will add to shareholder value."

The purchases of common shares will be executed periodically as market and
business conditions warrant on the open market, in negotiated or block trades,
or under a 10b5-1 plan, which would permit shares to be repurchased when the
Company might otherwise be precluded from doing so under insider trading laws.
The share repurchase plan does not obligate the Company to repurchase any
dollar amount or number of common shares, and the timing and amount of any
shares repurchased under the plan will depend on market conditions, share
price, corporate and regulatory requirements, capital availability and other
factors, such as financial covenants and rating considerations. The share
repurchase plan does not have an expiration date and may be limited or
terminated at any time by the Board of Trustees without prior notice.

Conference Call Information

The Company will host a conference call to discuss its third quarter 2012
results today, Thursday, November 1, 2012 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 December 3, 2012 by dialing (877) 660-6853; account
#286, confirmation #399507.

About Winthrop Realty Trust

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

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.

Financial Results

Financial results for the three and nine months ended September 30, 2012 and
2011 are as follows (in thousands except per share amounts):

                                     For the Three Months For the Nine Months
                                      Ended September 30,  Ended September 30,
                                     2012       2011      2012      2011
                                     (Unaudited)          (Unaudited)
Revenue                                                           
Rents and reimbursements             $13,335    $10,370   $38,225   $31,696
Interest, dividends and discount     3,722      5,503     15,018    20,269
accretion
                                     17,057     15,873    53,243    51,965
Expenses                                                          
Property operating                   3,624      3,272     11,535    10,856
Real estate taxes                    1,268      1,079     3,481     3,360
Depreciation and amortization        4,842      3,111     12,872    9,751
Interest                             4,430      3,480     11,602    11,926
Impairment loss on investment in     --         3,000     --        3,000
real estate
General and administrative           3,098      2,691     9,088     7,816
Transaction costs                    30         201       335       358
State and local taxes                65         11        213       88
                                     17,357     16,845    49,126    47,155
Other income (loss)                                               
Earnings from preferred equity       --         257       --        498
investments
Equity in income of equity           12,644     2,820     13,654    4,340
investments
Realized gain on sale of securities  --         --        41        131
carried at fair value
Unrealized gain (loss) on securities 3,113      (961)     7,254     (798)
carried at fair value
Unrealized gain (loss) on loan       371        (75)      447       2,772
securities carried at fair value
Gain on sale of equity investments   165        207       397       207
Gain on extinguishment of debt       --         8,514     --        8,514
Interest income                      242        472       433       1,007
                                     16,535     11,234    22,226    16,671
                                                                 
Income from continuing operations    16,235     10,262    26,343    21,481
                                                                 
Discontinued operations                                          
Income (loss) from discontinued      (188)      (98)      (59)      142
operations
Consolidated net income              16,047     10,164    26,284    21,623
(Income) loss attributable to        (939)      (318)     435       (851)
non-controlling interests
Net income attributable to Winthrop   15,108     9,846     26,719    20,772
Realty Trust
Preferred dividend of Series C        --         (59)      --        (176)
Preferred Shares
Preferred dividend of Series D        (2,786)    --       (6,498)   --
Preferred Shares
Net income attributable to Common    $12,322    $9,787    $20,221   $20,596
Shares
                                                                 
Per Common Share Data – Basic                                     
Income from continuing operations     $0.38      $0.30     $0.61     $0.66
Income (loss) from discontinued       (0.01)     --      --       0.01
operations
Net income attributable to Winthrop   $0.37      $0.30     $0.61     $0.67
Realty Trust
                                                                 
Per Common Share Data – Diluted                                   
Income from continuing operations     $0.38      $0.30     $0.61     $0.66
Income (loss) from discontinued       (0.01)     --       --       0.01
operations
Net income attributable to Winthrop   $0.37      $0.30     $0.61     $0.67
Realty Trust
                                                                 
Basic Weighted-Average Common Shares  33,075     32,949    33,064    30,889
Diluted Weighted-Average Common       33,076     32,949    33,064    30,889
Shares
                                                                 
Comprehensive income                                             
Consolidated net income             $16,047    $10,164   $26,284   $21,623
Change in unrealized gain (loss) on  (16)       --       (73)      63
interest rate derivative
Comprehensive income                 $16,031    $10,164   $26,211   $21,686

Funds From Operations:

The following presents a reconciliation of net income to funds from operations
for the three and nine months ended September 30, 2012 and 2011 (in thousands,
except per share amounts):

                                      For the Three Months For the Nine Months
                                     Ended                Ended
                                      September 30,        September 30,
                                     2012       2011      2012      2011
                                     (Unaudited)          (Unaudited)
                                                                 
Net income attributable to Winthrop   $15,108    $9,846    $26,719   $20,772
Realty Trust
Real estate depreciation              2,903      2,094     8,165     6,298
Amortization of capitalized leasing   2,169      1,092     5,106     3,683
costs
Trust's share of real estate
depreciation and amortization of      2,976      2,996     10,630    7,635
unconsolidated interests
(Gain) loss on sale of real estate    (945)      58        (945)     58
Gain on sale of equity investments    (165)      --        (397)     --
Impairment loss on investments in     698        3,000     698       3,000
real estate
Impairment loss on equity investments --         --        --        3,800
Less: Non-controlling interest share
of real estate depreciation and       (699)      (790)     (2,144)   (2,371)
amortization
                                                                 
Funds from operations                22,045     18,296    47,832    42,875
Preferred dividend of Series C                                    
Preferred
Share dividends                      --         (59)      --        (176)
Preferred dividend of Series D                                    
Preferred
Share dividends                      (2,786)    --        (6,498)   --
Allocation of earnings to Series B-1                             
Preferred Shares                     --         (170)     --        (257)
Allocations of earnings to Series C                               
Preferred Shares                     --       (82)      --     (176)
FFO applicable to Common Shares-Basic $19,259    $17,985   $41,334   $42,266
                                                                 
Weighted-average Common Shares        33,075     32,949    33,064    30,889
                                                                 
FFO Per Common Share-Basic            $0.58      $0.55     $1.25     $1.37
                                                                 
                                                                 
Diluted                                                           
Funds from operations attributable to $22,045    $18,296   $47,832   $42,875
the Trust
Preferred dividend of Series C                                    
Preferred
Share dividends                      --         (59)      --        (176)
Preferred dividend of Series D                                    
Preferred
Share dividends                      (2,786)    --        (6,498)   --
Allocation of earnings to Series B-1                             
Preferred Shares                     --         (170)     --        (257)
Allocation of earning to Series C                                
Preferred Shares                     --       (82)      --      (176)
FFO applicable to Common Shares       $19,259    $17,985   $41,334   $42,266
                                                                 
                                                                 
Weighted-average Common Shares        33,075     32,949    33,064    30,889
Stock options                         1          --       --       --
Diluted weighted-average Common       33,076     32,949    33,064    30,889
Shares
FFO Per Common Share - Diluted        $0.58      $0.55     $1.25     $1.37

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

Consolidated Balance Sheets:

(in thousands, except share data)

                                                   September 30, December 31,
                                                    2012          2011
                                                   (Unaudited)   (Unaudited)
ASSETS                                                           
Investments in real estate, at cost                              
Land                                               $37,177       $36,495
Buildings and improvements                         344,289       327,337
                                                   381,466       363,832
Less: accumulated depreciation                     (48,618)      (44,556)
Investments in real estate, net                    332,848       319,276
                                                                
Cash and cash equivalents                          159,251       40,952
Restricted cash held in escrows                    15,273        3,914
Loans receivable, net                             138,001       114,333
Accounts receivable, net of allowances of $513 and 4,892         5,335
$639, respectively
Accrued rental income                              13,467        10,805
Securities carried at fair value                   37,191        28,856
Loan securities carried at fair value              5,756         5,309
Preferred equity investments                       5,500         5,520
Equity investments                                 115,299       162,142
Lease intangibles, net                             34,883        36,305
Deferred financing costs, net                      4,558         1,180
Assets held for sale                               18            6
TOTAL ASSETS                                       $866,937      $733,933
                                                                
LIABILITIES                                                      
Mortgage loans payable                             $238,097      $230,940
Senior notes payable                                86,250        --
Non-recourse secured financings                     29,150        29,150
Revolving line of credit                           --            40,000
Accounts payable and accrued liabilities           19,635        16,174
Dividends payable                                  8,161         5,369
Deferred income                                    758           502
Below market lease intangibles, net                2,423         2,962
Liabilities of held for sale assets                89            --
TOTAL LIABILITIES                                  384,563       325,097
                                                                
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  120,500       40,000
at September 30, 2012 and 1,840,000 shares
authorized and 1,600,000 shares outstanding at
December 31, 2011
Common Shares, $1 par, unlimited shares authorized;
33,077,047 and 33,041,034 issued and outstanding at 33,077        33,041
September 30, 2012 and December 31, 2011,
respectively
Additional paid-in capital                         617,837       626,099
Accumulated distributions in excess of net income (307,144)     (311,246)
Accumulated other comprehensive loss               (165)         (92)
Total Winthrop Realty Trust Shareholders' Equity   464,105       387,802
Non-controlling interests                          18,269        21,034
Total Equity                                       482,374       408,836
TOTAL LIABILITIES AND EQUITY                        $866,937      $733,933

Further details regarding the Company's results of operations, properties,
joint ventures and tenants are available in the Company's Form 10-Q for the
quarter ended September 30, 2012 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: AT THE COMPANY
        
         John Garilli
         Chief Financial Officer
         (617) 570-4614
 
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