Winthrop Realty Trust Announces Results for Third Quarter 2013

Winthrop Realty Trust Announces Results for Third Quarter 2013

                   ~Reports FFO of $0.51 Per Common Share ~
                 ~Reports Earnings of $0.27 Per Common Share~
                    Declares Fourth Quarter 2013 Dividends

BOSTON, Nov. 7, 2013 (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, 2013. All per share amounts
are on a diluted basis.

Financial Results

Three Months Ended September 30, 2013

Net income applicable to common shares for the quarter ended September 30,
2013 was $8.8 million or $0.27 per common share as compared with net income of
$12.3 million or $0.37 per common share for the quarter ended September 30,
2012.

For the quarter ended September 30, 2013, Winthrop reported Funds from
Operations ("FFO") applicable to common shares of $17.1 million or $0.51 per
common share as compared with FFO of $19.3 million or $0.58 per common share
for the third quarter of 2012.

Nine Months Ended September 30, 2013

Net income applicable to common shares for the nine months ended September 30,
2013 was $25.3 million or $0.76 per common share as compared with net income
of $20.2 million or $0.61 per common share for the same period ended September
30, 2012.

FFO for the nine months ended September 30, 2013 was $37.5 million or $1.13
per common share as compared with FFO of $41.5 million, or $1.25 per common
share for the nine months ended September 30, 2012.

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

Winthrop's estimated range of net asset value per common share ("NAV") at
September 30, 2013 was $12.98 to $14.29 as compared to $13.02 to $15.37 at
June 30, 2013. The decline in NAV reflects the additional common shares issued
in September 2013. Winthrop's quarterly supplemental report 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 Third Quarter Activity and Subsequent Events

Third Quarter

  *Agreed to increase its financial commitment to the 701 Seventh Avenue, New
    York Times Square venture from $68.0 million up to $120.0 million and to
    participate in the future hotel development. In connection with this
    increased commitment, Winthrop contributed an additional $22.1 million to
    the venture. To date, Winthrop has contributed $52.8 million to the
    venture, reducing Winthrop's future funding commitment to $67.2 million.
    
  *Acquired the 50% interest in the mezzanine loan indirectly secured by the
    property located at One South State Street, Chicago, Illinois that was
    held by Winthrop's venture partner for $30.0 million.Winthrop now holds
    100% of the mezzanine loan that has an outstanding balance of principal
    and accrued interest of approximately $56.2 million and bears interest at
    15% per annum.Both Winthrop and its partner, through a joint venture,
    continue to each hold an approximately 35% equity interest in the venture
    that holds the property ("Sullivan JV").
    
  *Received payments of approximately $5.6 million on its Queensridge Tower
    loan from the sale of several of the Queensridge condominium units.
    
  *Sold the One Riverwalk property located in San Antonio, Texas owned by
    Winthrop's CDH CDO venture.After satisfying the existing third party
    debt, Winthrop received net proceeds of approximately $4.4 million.
    
  *Sold its Seabrook, Texas property to an independent third party for gross
    sale proceeds of $3.3 million, resulting in net proceeds of approximately
    $3.2 million, an amount in excess of Winthrop's most recent net asset
    value range for the property of $2.556 million to $2.875 million.
    
  *Sold its Denton, Texas property to an independent third party for a gross
    sales price of $1.85 million, resulting in net proceeds of approximately
    $1.7 million.Winthrop's most recent net asset value range for this
    property was $1.725 million to $1.913 million.
    
  *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 Winthrop holds a 49%
    interest.
    
  *Extended the triple net lease with Ingram Micro, the tenant occupying all
    200,000 square feet of office space at Winthrop's Amherst, New York
    property, through October 31, 2023 and repaid the $15.0 million debt
    collateralized by the property.
    
  *Received proceeds of $13.3 million on an investment of $10.8 million from
    the payoff at par of the loan held in its 33.3% owned Metrotech venture,
    resulting in a 38% IRR.
    
  *Closed a public offering of 2.75 million common shares at a price of
    $11.45 per common share, before underwriter's discounts.Winthrop received
    net proceeds of approximately $30.0 million after underwriter's discounts
    and offering expenses.

Subsequent Events

  *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 "Portfolio Acquisition"). The properties are located
    in Phoenix, Arizona; San Pedro, California; Stamford, Connecticut; and
    Houston, Texas. All of the properties were designed and constructed to
    condominium standards.
    
  *Subsequent to closing, a subsidiary of New Valley, LLC contributed
    approximately $16.4 million to the entity that acquired the properties in
    exchange for an approximately 16.3% interest in such entity. Winthrop
    retained the remaining 83.7% interest.
    
  *Obtained in connection with the Portfolio Acquisition 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.
    
  *Refinanced the existing $110.6 million mortgage loan made to the Sullivan
    JV which was secured by the 942,000 square foot office and retail property
    located at One South State Street, in downtown Chicago, Illinois that 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
    originally built in 1984 known as Summit Pointe Apartments located in
    Oklahoma City, Oklahoma.Winthrop contributed approximately $4.9 million
    to the venture.Pursuant to the terms of the venture agreement, Winthrop
    will hold 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.
    
  *Received a partial repayment of $6.3 million on its $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.

Fourth Quarter 2013 Dividend Declarations

The Company's Board of Trustees is declaring a regular quarterly cash dividend
for the fourth quarter of 2013 of $0.1625 per common share payable on January
15, 2014 to common shareholders of record on December 31, 2013.

The Company's Board of Trustees is also declaring a regular quarterly cash
dividend for the fourth quarter of 2013 of $0.578125 per Series D preferred
share payable on December 31, 2013 to Series D preferred shareholders of
record on December 13, 2013.

Conference Call Information

The Company will host a conference call to discuss its third quarter 2013
results today, Thursday, November 7, 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 December 6, 2013 by dialing (877) 660-6853; account
#286, confirmation #420064.

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
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, 2013 and
2012 are as follows (in thousands except per share amounts):

                                     For the Three Months For the Nine Months
                                      Ended September 30,  Ended September 30,
                                     2013       2012      2013      2012
                                     (Unaudited)          (Unaudited)
Revenue                                                           
Rents and reimbursements              $15,099   $12,224  $45,026  $35,022
Interest,dividends and discount      3,917     3,722    13,545   15,018
accretion
                                     19,016    15,946   58,571   50,040
Expenses                                                          
Property operating                    5,272      3,335     14,697    10,643
Real estate taxes                     1,705      1,160     4,184     3,116
Depreciation and amortization         4,923      4,416     14,703    11,623
Interest                              5,435      4,416     18,175    11,560
General and administrative            1,113      782       3,058     2,447
Related party fees                    2,309      2,316     6,866     6,641
Transaction costs                     106        30        158       335
State and local taxes                 85        64       227      211
                                     20,948    16,519   62,068   46,576
Other income (loss)                                               
                                                                 
Equity in income of equity            13,856     12,809    26,249    14,051
investments
Earnings from preferred equity        189        --        576       --
investments
Realized gain (loss) on sale of       (31)       --        (133)     41
securities carried at fair value
Unrealized gain (loss) on securities  --         3,113     (142)     7,254
carried at fair value
Unrealized gain on loan securities    --         371      215       447
carried at fair value
Settlement expense                    (16)       --        (150)     --
Interest income                       101       242      286      433
                                     14,099    16,535   26,901   22,226
                                                                 
Income from continuing operations     12,167     15,962    23,404    25,690
                                                                 
Discontinued operations                                           
(Loss) income from discontinued       (1,434)   85       8,025    594
operations
Net income                            10,733     16,047    31,429    26,284
Net loss (income) attributable to     995       (939)    2,419    435
non-controlling interests
Net income attributable to Winthrop   11,728     15,108    33,848    26,719
Realty Trust
Preferred dividends on Series D       (2,787)   (2,786)  (8,360)  (6,498)
Preferred Shares
Amount allocated to restricted shares (106)     --       (235)    --
Net income attributable to Common     $8,835    $12,322  $25,253  $20,221
Shares
                                                                 
Per Common Share Data – Basic                                     
Income from continuing operations     $0.31     $0.37    $0.52    $0.59
Income (loss) from discontinued       (0.04)    --       0.24     0.02
operations
Net income attributable to Winthrop   $0.27     $0.37    $0.76    $0.61
Realty Trust
                                                                 
Per Common Share Data – Diluted                                   
Income from continuing operations     $0.31     $0.37    $0.52    $0.59
Income (loss) from discontinued       (0.04)    --       0.24     0.02
operations
Net income attributable to Winthrop   $ 0.27    $0.37    $0.76    $0.61
Realty Trust
                                                                 
Basic Weighted-Average Common Shares  33,076    33,075   33,047   33,064
Diluted Weighted-Average Common       33,148    33,076   33,089   33,064
Shares
                                                                 
Comprehensive income                                              
Net income                            $10,733   $16,047  $31,429  $26,284
Change in unrealized loss on interest (150)     (16)     (20)     (73)
rate derivative
Consolidated comprehensive income     10,583    16,031   31,409   26,211
Net loss (income) attributable to     995        (939)     2,419     435
non-controlling interest
Other comprehensive income
attributable to non-controlling       --        --       --       --
interest
Comprehensive loss (income)
attributable to non-controlling       995       (939)    2,419    435
interest
Comprehensive income attributable to  $11,578   $15,092  $33,828  $26,646
Winthrop Realty Trust
Dividend declared per Common Share    $0.1625   $0.1625  $0.4875  $0.4875

Funds From Operations:

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

                                For the Three Months Ended For the Nine Months
                               September 30,              Ended
                                                           September 30,
                               2013         2012          2013      2012
                               (Unaudited)                (Unaudited)
Net income attributable to                               $33,848  
Winthrop Realty Trust           $11,728     $15,108                $26,719
Real estate depreciation        3,153        2,903         9,665     8,165
Amortization of capitalized     1,791        2,169         5,626     5,106
leasing costs
Trust's share of real estate
depreciation and amortization   2,762        2,976         7,471     10,630
of unconsolidated interests
Impairment loss on investments  2,750        698           2,904     698
in real estate
Gain on sale of real estate     (1,421)      (945)         (10,948)  (945)
(Gain) loss on sale of equity   --           (165)         110       (271)
investments
Trust's share of loss on sale
of real estate of               722          --            722       --
unconsolidated interests
Less: Non-controlling interest
share of real estate            (1,504)     (699)      (3,242)  (2,144)
depreciation and amortization
                                                                 
Funds from operations           19,981       22,045        46,156    47,958
attributable to the Trust
Preferred dividends on Series D (2,787)      (2,786)       (8,360)   (6,498)
Preferred Shares
Amount allocated to restricted  (129)       --        (269)    --
shares
FFO applicable to Common        $17,065     $19,259     $37,527  $41,460
Shares-Basic
                                                                 
Weighted-average Common Shares  33,076      33,075     33,047   33,064
                                                                 
FFO Per Common Share-Basic      $0.52       $0.58       $1.14    $1.25
                                                                 
Diluted                                                           
Funds from operations           $19,981     $22,045      $46,156  $47,958
attributable to the Trust
Preferred dividends on Series D (2,787)      (2,786)       (8,360)   (6,498)
Preferred Shares
Amount allocated to restricted  (129)       --         (269)    --
shares
FFO applicable to Common Shares $17,065     $19,259      $37,527  $41,460
                                                                 
Weighted-average Common Shares  33,076       33,075        33,047    33,064
Stock options                   2            1             2         --
Restricted shares               70         --         40       --
Diluted weighted-average Common 33,148      33,076     33,089   33,064
Shares
FFO Per Common Share - Diluted  $0.51       $0.58        $1.13    $ 1.25

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 adjustment for 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)

                                                   September 30, December 31,
                                                   2013          2012
                                                   (Unaudited)   (Unaudited)
ASSETS                                                           
Investments in real estate, at cost                              
Land                                                $56,894      $43,252
Buildings and improvements                          380,240       378,737
                                                   437,134       421,989
Less: accumulated depreciation                      (55,195)      (51,553)
Investments in real estate, net                     381,939       370,436
                                                                
Cash and cash equivalents                           165,762       97,682
Restricted cash held in escrows                     19,084        13,250
Loans receivable, net                               108,163       211,250
Secured financing receivable                        30,395        --
Accounts receivable, net of allowances of $478 and  997           1,418
$374, respectively
Accrued rental income                               19,205        17,241
Securities carried at fair value                    7,074         19,694
Loan securities carried at fair value               226           11
Preferred equity investments                        12,703        12,250
Equity investments                                  139,061       134,859
Lease intangibles, net                              48,774        37,744
Deferred financing costs, net                       4,546         4,864
Other Assets                                        28,135        2,464
Assets held for sale                                2,421         --
TOTAL ASSETS                                        $968,485     $923,163
                                                                
LIABILITIES                                                      
Mortgage loans payable                              308,049       280,576
Senior notes payable                                86,250        86,250
Secured financings                                  29,150        52,920
Notes payable                                       1,664         1,676
Accounts payable, accrued liabilities and other     21,522        21,056
liabilities
Related party fees payable                          2,693         2,664
Dividends payable                                   8,804         5,366
Deferred income                                     995           1,136
Below market lease intangibles, net                 2,280         2,255
TOTAL LIABILITIES                                   461,407       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 both issued  120,500      120,500
and outstanding at September 30, 2013 and December
31, 2012
Common Shares, $1 par, unlimited shares authorized;
36,397,949 and 33,018,711 both issued and           35,798       33,019
outstanding atSeptember 30, 2013 and December 31,
2012, respectively
Additional paid-in capital                          646,620       618,426
Accumulated distributions in excess of net income   (308,661)     (317,385)
Accumulated other comprehensive loss                (70)          (50)
Total Winthrop Realty Trust Shareholders' Equity    494,187       454,510
Non-controlling interests                           12,891        14,754
Total Equity                                        507,078       469,264
TOTAL LIABILITIES AND EQUITY                        $968,485     $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 September 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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