Winthrop Realty Trust Announces Results for Second Quarter 2013

Winthrop Realty Trust Announces Results for Second Quarter 2013

        Reports Common Share Net Asset Value Range of $13.02 to $15.37

                    Declares Third Quarter 2013 Dividends

BOSTON, Aug. 1, 2013 (GLOBE NEWSWIRE) -- Winthrop Realty Trust (NYSE:FUR), a
leading real estate value investor, today announced financial and operating
results for the second quarter ended June 30, 2013. All per share amounts are
on a diluted basis.

Financial Results

Three Months Ended June 30, 2013

Net income applicable to common shares for the quarter ended June 30, 2013 was
$5.5 million, or $0.17 per common share as compared with net income of
$571,000, or $0.02 per common share for the quarter ended June 30, 2012.

For the quarter ended June 30, 2013, the Company reported Funds from
Operations ("FFO") applicable to common shares of $4.6 million, or $0.14 per
common share, compared with FFO of $8.2 million, or $0.25 per common share for
the quarter ended June 30, 2012.

Six Months Ended June 30, 2013

Net income applicable to common shares for the six months ended June 30, 2013
was $16.4 million, or $0.50 per common share as compared with net income of
$7.9 million, or $0.24 per common share for the six months ended June 30,
2012.

FFO for the six months ended June 30, 2013 was $20.5 million, or $0.62 per
common share as compared with FFO of $22.2 million, or $0.67 per common share
for the six months ended June 30, 2012.

Net Asset Value as of June 30, 2013 and Performance Table

Winthrop's estimated range of net asset value per common share at June 30,
2013 is $13.02 to $15.37 as compared to $12.94 to $15.31 at March 31, 2013. In
doing so, we continue to reflect our 701 Seventh Avenue investment at cost
with no increase to net asset value. In addition, our quarterly supplement
contains an investment performance table that presents the internal rate of
return for each investment made and sold or otherwise liquidated since January
1, 2008. The pooled weighted internal rate of return on these investments is
31%. 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 Second Quarter Activity and Subsequent Events

  *Agreed to increase our financial commitment to our 701 Seventh Avenue, New
    York Times Square joint venture property from $68.0 million to up to
    $120.0 million and to participate in the future hotel development,
    increasing our preferred equity ownership from 45.8% to 61.1%. In
    connection with our increased commitment, Winthrop contributed an initial
    additional $4.9 million to the venture and will make a second payment of
    $4.7 million upon refinancing of the existing mortgage and mezzanine debt.
    To date, Winthrop has contributed $35.6 million to the venture.
    
  *Acquired through a 50-50 joint venture with Marc Realty a non-performing
    $14.03 million mortgage loan, including accrued interest, for $6.625
    million.Following acquisition, the joint venture obtained through an
    assignment in lieu of foreclosure title to the collateral, a leasehold
    interest in the 71,000 square feet of commercial/retail space that
    comprises the bottom three floors of an office building known as the James
    R. Thompson Center located in Chicago, Illinois.The leasehold interest is
    subject to a lease with the State of Illinois that expires September 2014
    with six automatic five-year extensions.
    
  *Sold for $20.5 million the medical office building located in Deer Valley,
    Arizona, which was originally acquired by foreclosing on a loan receivable
    that was purchased in June 2010 for approximately $10.6
    million.Winthrop's first quarter 2013 net asset value range for the
    property was $19.0-$20.0 million.
    
  *Obtained a new $43.0 million first mortgage loan on the 1515 Market
    Street, Philadelphia, Pennsylvania property from a third party which bears
    interest at LIBOR plus 2.0% per annum, requires monthly payments of
    interest only and matures May 2016.Winthrop received $38.5 million of
    loan proceeds from the financing which reduced Winthrop's investment in
    the loan receivable to $21.1 million.In addition to its $33.9 million
    loan receivable, Winthrop is entitled to receive a priority return at a
    rate of 19.6% per annum on its invested balance as well as an 89% equity
    participation in profits after satisfaction of the $76.9 million in total
    debt.
    
  *Obtained a $5.1 million loan secured by its Churchill, Pennsylvania
    property, which loan bears interest at 3.5% per annum, requires monthly
    debt service payments of interest and principal based on varying
    amortization schedules and matures on August 1, 2024.After giving effect
    to the financing, it is expected that Winthrop will receive approximately
    $464,000 in annual cash flow to Winthrop.
    
  *Received payment in full of $2.25 million loan collateralized by the
    property located at Shea Boulevard in Phoenix, Arizona.
    
  *Received payments on the Queensridge loan receivable of approximately
    $15.0 million from the sale of several additional condominium units that
    collateralized the loan, reducing Winthrop's loan balance to approximately
    $13.8 million. Winthrop simultaneously made pay downs of approximately
    $13.7 million on its recourse debt with KeyBank which fully repaid the
    debt.
    
  *In July 2013, sold its Denton, Texas retail building for a gross sales
    price of $1.85 million.Winthrop's first quarter 2013 net asset value
    range for this property was $1.725-$1.913 million.
    
  *In July 2013, Concord CDO satisfied its leverage ratio tests and, as a
    result, again began making distributions to Concord CDO's junior tranches
    of bonds and its equity holder, CDH CDO LLC, a venture in which the Trust
    holds a 49% interest.
    
  *In July 2013, extended our triple net lease with Ingram Micro, the tenant
    occupying all 200,000 square feet of office space in Amherst, New York,
    through October 31, 2023 upon expiration of their existing net lease.On
    July 26, we repaid the $15.0 million debt collateralized by the property.
    
  *In July 2013, received proceeds of $13.3 million on an investment of $10.8
    million from the payoff at par of the loan held in our Metrotech venture
    in which we hold a 33.3% interest, which results in a 38% IRR.

Third Quarter 2013 Dividend Declarations

The Company's Board of Trustees is declaring a regular quarterly cash dividend
for the third quarter of 2013 of $0.1625 per common share payable on October
15, 2013 to common shareholders of record on September 30, 2013.

The Company's Board of Trustees is also declaring a regular quarterly cash
dividend for the third quarter of 2013 of $0.578125 per Series D preferred
share payable on October 1, 2013 to Series D preferred shareholders of record
on September 12, 2013.

Conference Call Information

The Company will host a conference call to discuss its second quarter 2013
results today, Thursday, August 1, 2013 at 12:00 pm Eastern Time.Interested
parties may access the live call by dialing (877) 407-9205 or (201) 689-8054,
or via the Internet at www.winthropreit.com within the News and Events
section.An online replay will be available for one year.A replay of the call
will be available through September 3, 2013 by dialing (877) 660-6853; account
#286, confirmation #415330.

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, REIT Bonds, 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 six months ended June 30, 2013 and 2012
are as follows (in thousands except per share amounts):

                                      For the Three Months For the Six Months
                                      Ended June 30,       Ended June 30,
                                      2013       2012      2013      2012
                                      (Unaudited)          (Unaudited)
Revenue                                                            
Rents and reimbursements               $15,593    $11,841   $30,101   $23,042
Interest,dividends and discount       4,308      5,778     9,628     11,296
accretion
                                      19,901     17,619    39,729    34,338
Expenses                                                           
Property operating                     4,892      3,355     9,650     7,530
Real estate taxes                      1,659      884       2,542     2,003
Depreciation and amortization          4,950      4,008     9,840     7,273
Interest                               6,708      3,448     12,740    7,172
General and administrative             1,098      782       1,945     1,665
Related party fees                     2,291      2,298     4,557     4,325
Transaction costs                      46         184       52        305
State and local taxes                  125        142       142       147
                                      21,769     15,101    41,468    30,420
Other income (loss)                                                
                                                                  
Equity in income of equity investments 4,524      818       12,393    1,242
Earnings from preferred equity         185        --        387       --
investments
Realized gain (loss) on sale of        --         15        (102)     41
securities carried at fair value
Unrealized gain (loss) on securities   (1,860)    (791)     (142)     4,141
carried at fair value
Unrealized gain (loss) on loan         215        (88)      215       76
securities carried at fair value
Settlement expense                     (134)      --        (134)     --
Interest income                        115        90        185       191
                                      3,045      44        12,802    5,691
                                                                  
Incomefrom continuing operations      1,177      2,562     11,063    9,609
                                                                  
Discontinued operations                                            
Income from discontinued operations    6,568      323       9,633     628
Consolidated net income                7,745      2,885     20,696    10,237
Net loss attributable to               629        473       1,424     1,374
non-controlling interests
Net income attributable to Winthrop    8,374      3,358     22,120    11,611
Realty Trust
Preferred Dividends of Series D        (2,786)    (2,787)   (5,573)   (3,712)
Preferred Shares
Amount allocated to restricted shares  (98)       --        (124)     --
Net income attributable to Common      $5,490     $571      $16,423   $7,899
Shares
                                                                  
Per Common Share Data – Basic                                      
Income (loss) from continuing          $(0.03)    $0.01     $0.21     $0.22
operations
Income from discontinued operations    0.20       0.01      0.29      0.02
Net income attributable to Winthrop    $0.17      $0.02     $0.50     $0.24
Realty Trust
                                                                  
Per Common Share Data – Diluted                                    
Income (loss) from continuing          $(0.03)    $0.01     $0.21     $0.22
operations
Income from discontinued operations    0.20       0.01      0.29      0.02
Net income attributable to Winthrop    $0.17      $0.02     $0.50     $0.24
Realty Trust
                                                                  
Basic Weighted-Average Common Shares   33,037     33,064    33,032    33,058
Diluted Weighted-Average Common Shares 33,037     33,064    33,041    33,058
                                                                  
Comprehensive income                                               
Consolidated net income                $7,745     $2,885    $20,696   $10,237
Change in unrealized gain (loss) on    131        (25)      130       (57)
interest rate derivative
Consolidated comprehensive income      7,876      2,860     20,826    10,180
Net loss attributable to               629        473       1,424     1,374
non-controlling interest
Other comprehensive income
attributable to non-controlling        --         --        --        --
interest
Comprehensive loss attributable to     629        473       1,424     1,374
non-controlling interest
Comprehensive income attributable to   $8,505     $3,333    $22,250   $11,554
Winthrop Realty Trust

Funds From Operations:

The following presents a reconciliation of net income to funds from operations
("FFO") for the three and six months ended June 30, 2013 and 2012 (in
thousands, except per share amounts):

                                      For the Three Months For the Six Months
                                       Ended                Ended
                                      June 30,             June 30,
                                      2013       2012      2013      2012
                                      (Unaudited)          (Unaudited)
Net income attributable to Winthrop    $8,374     $3,358    $22,120   $11,611
Realty Trust
Real estate depreciation               3,249      2,747     6,512     5,261
Amortization of capitalized leasing    1,858      1,732     3,835     2,937
costs
Real estate depreciation and
amortization of unconsolidated         2,086      3,992     4,709    7,654
interests
Impairment loss on investments in real 154        --        154       --
estate
Gain on sale of real estate            (6,752)    --        (9,527)   --
Loss on sale of equity investments     --         (152)     110       (106)
Less: Non-controlling interest share
of real estate depreciation and        (1,496)    (713)     (1,738)   (1,445)
amortization
                                                                  
Funds from operations attributable to  7,473      10,964    26,175    25,912
the Trust
Dividends of Series D Preferred Shares (2,786)    (2,787)   (5,573)   (3,712)
Amount allocated to restricted shares  (98)       --        (124)     --
FFO applicable to Common Shares-Basic  $4,589     $8,177    $20,478   $22,200
                                                                  
Weighted-average Common Shares         33,037     33,064    33,032    33,058
                                                                  
FFO Per Common Share-Basic             $0.14      $0.25     $0.62     $0.67
                                                                  
                                                                  
Diluted                                                            
Funds from operations attributable to  $7,473     $10,964   $26,175   $25,912
the Trust
Dividends of Series D Preferred Shares (2,786)    (2,787)   (5,573)   --
Amount allocated to restricted shares  (98)       --        (124)     (3,712)
FFO applicable to Common Shares        $4,589     $8,177    $20,478   $22,200
                                                                  
                                                                  
Weighted-average Common Shares         33,037     33,064    33,032    33,058
Stock options                          2          --        2         --
Restricted shares                      --         --        7         --
Diluted weighted-average Common Shares 33,039     33,064    33,041    33,058
FFO Per Common Share - Diluted         $0.14      $0.25     $0.62     $0.67

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)
                                                                 
                                                      June        December
                                                       30,         31,
                                                      2013        2012
                                                      (Unaudited) (Unaudited)
ASSETS                                                            
Investments in real estate, at cost                               
Land                                                   $59,183     $43,252
Buildings and improvements                             385,370     378,737
                                                      444,553     421,989
Less: accumulated depreciation                         (53,553)    (51,553)
Investments in real estate, net                        391,000     370,436
                                                                 
Cash and cash equivalents                              186,132     97,682
Restricted cash held in escrows                        19,422      13,250
Loans receivable, net                                  113,308     211,250
Accounts receivable, net of allowances of $474 and     5,027       3,882
$374, respectively
Accrued rental income                                  15,801      17,241
Securities carried at fair value                       10,360      19,694
Loan securities carried at fair value                  226         11
Preferred equity investments                           12,514      12,250
Equity investments                                     141,645     134,859
Lease intangibles, net                                 48,348      37,744
Deferred financing costs, net                          4,819       4,864
Assets held for sale                                   1,708       --
TOTAL ASSETS                                           $950,310    $923,163
                                                                 
LIABILITIES                                                       
Mortgage loans payable                                 325,026     280,576
Senior notes payable                                   86,250      86,250
Secured financings                                     29,150      52,920
Notes payable                                          1,645       1,676
Accounts payable and accrued liabilities               19,202      21,056
Related party fees payable                             2,658       2,664
Dividends payable                                      8,268       5,366
Deferred income                                        1,131       1,136
Below market lease intangibles, net                    2,483       2,255
TOTAL LIABILITIES                                      475,813     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     120,500     120,500
authorized and 4,820,000 shares both issued and
outstanding at June 30, 2013 and December 31, 2012
Common Shares, $1 par, unlimited shares
authorized;33,638,757 and 33,018,711 both issued and  33,039      33,019
outstanding at June 30, 2013 and December 31, 2012,
respectively
Additional paid-in capital                             618,954     618,426
Accumulated distributions in excess of net income      (311,688)   (317,385)
Accumulated other comprehensive loss                   80          (50)
Total Winthrop Realty Trust Shareholders' Equity       460,885     454,510
Non-controlling interests                              13,612      14,754
Total Equity                                           474,497     469,264
TOTAL LIABILITIES AND EQUITY                           $950,310    $923,163

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