Winthrop Realty Trust Announces Results for First Quarter 2014

Winthrop Realty Trust Announces Results for First Quarter 2014

Declares Second Quarter 2014 Dividends

BOSTON, May 1, 2014 (GLOBE NEWSWIRE) -- Winthrop Realty Trust (NYSE:FUR) (the
"Company" or "Winthrop"), a leading real estate value investor, today
announced financial and operating results for the first quarter 2014. All per
share amounts are on a diluted basis.

Financial Results

Three Months Ended March 31, 2014

Net loss applicable to common shares for the quarter ended March 31, 2014 was
($2.2) million or ($0.06) per common share as compared with net income of
$11.0 million or $0.33 per common share for the quarter ended March 31, 2013.
Included in this quarter's loss is ($9.2) million related to non-cash
impairments required to be recognized under GAAP as the result of a shortened
hold period now required for the Company's long term assets due to the
proposed adoption of a plan of liquidation by Winthrop's Board of Trustees.
The shortened hold period resulted in the Company reducing its March 31, 2014
carrying value for financial statement purposes to the current fair value of
Winthrop's Corporetum property located in Lisle, Illinois and its Kroger
property located in Greensboro, North Carolina.

For the quarter ended March 31, 2014, Winthrop reported Funds from Operations
("FFO") applicable to common shares of $10.7 million or $0.30 per common share
as compared with FFO of $15.3 million or $0.46 per common share for the first
quarter of 2013.

Net Asset Value as of March 31, 2014 and Performance Table

Winthrop's estimated range of net asset value per common share ("NAV") at
March 31, 2014 was $13.79 to $15.79 as compared to $13.80 to $15.83 at
December 31, 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, 2009.
The pooled weighted internal rate of return on these investments is 29%.
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.

2014 First Quarter Activity

  *Made additional capital contributions to the 701 Seventh Avenue, New York,
    New York venture bringing Winthrop's aggregate capital contributions to
    date to $93.9 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. 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 to 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.
    
  *Sold our Newbury Apartments property located in Meriden, Connecticut for
    gross sale proceeds of $27.5 million, which was consistent with the
    previously reported net asset value in Winthrop's supplemental report.The
    sale of this property resulted in a 17.2% IRR on Winthrop's investment.
    
  *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 15.5% 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 December 31, 2013 supplemental financial
    report.
    
  *Received payment in full of the outstanding principal balance on the
    Queensridge loan. In addition, Winthrop received an exit fee of $1.8
    million in connection with the early satisfaction of the loan.
    
  *Amended the mezzanine loan agreement collateralized by ownership interests
    in the office property located in Playa Vista, California to increase the
    principal balance owed by the borrower to $4.0 million and to increase the
    interest rate by 1.5% to a rate of 16.25% per annum. Winthrop's share of
    the increased loan receivable amount was $2.0 million.

Subsequent Activity – Plan of Liquidation

  *Announced on April 29, 2014 the adoption by the Board of Trustees a plan
    of liquidation which is subject to approval by the holders of a majority
    of Winthrop's common shares.

Second Quarter 2014 Dividend Declarations

The Company's Board of Trustees is declaring a regular quarterly cash dividend
for the second quarter of 2014 of $0.1625 per common share payable on July 15,
2014 to common shareholders of record on June 30, 2014.

The Company's Board of Trustees is also declaring a regular quarterly cash
dividend for the second quarter of 2014 of $0.578125 per Series D preferred
share payable on June 30, 2014 to Series D preferred shareholders of record on
June 16, 2014.

Conference Call Information

The Company will host a conference call to discuss its first quarter 2014
results today, Thursday, May 1, 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.A replay of the call will be available through June 1, 2014 by
dialing (877) 660-6853; conference ID #13579056.An online replay will also be
available for one year.

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.

Financial Results                                                 
                                                                 
                                                      Three Months Ended
                                                       March 31,
                                                      2014        2013
                                                      (Unaudited) (Unaudited)
Revenue                                                           
Rents and reimbursements                               $19,507    $ 12,054
Interest, dividends and discount accretion             5,497      5,320
                                                      25,004     17,374
Expenses                                                          
Property operating                                     7,434       3,685
Real estate taxes                                      2,194       737
Depreciation and amortization                          7,399       4,154
Interest                                               5,693       5,691
Impairment loss on investments in real estate          9,200       --
General and administrative                             1,642       844
Related party fees                                     2,375       2,266
Transaction costs                                      250         6
State and local taxes                                  12         14
                                                      36,199     17,397
Other income (loss)                                               
Equity in income of equity investments                 6,194       7,869
Earnings from preferred equity investments             7           202
Realized gain (loss) on sale of securities carried at  2           (102)
fair value
Unrealized gain on securities carried at fair value    --          1,718
Interest and other income                              85         69
                                                      6,288      9,756
                                                                 
Income (loss) from continuing operations               (4,907)     9,733
                                                                 
Discontinued operations                                           
Income from discontinued operations                    4,159      3,218
                                                                 
Net income (loss)                                      (748)       12,951
Net loss attributable to non-controlling interest      1,389      795
Net income attributable to Winthrop Realty Trust       641         13,746
Preferred dividend of Series D Preferred Shares        (2,787)     (2,787)
Amount allocated to Restricted Common Shares           (96)       (2)
Net income (loss) attributable to Common Shares        $(2,242)   $10,957
                                                                 
Per Common Share Data – Basic:                                    
Income (loss) from continuing operations               $(0.18)    $0.23
Income from discontinued operations                    0.12       0.10
Net income (loss) attributable to Common Shares        $(0.06)    $0.33
                                                                 
Per Common Share Data – Diluted:                                  
Income (loss) from continuing operations               $(0.18)    $0.23
Income from discontinued operations                    0.12       0.10
Net income (loss) attributable to Common Shares        $(0.06)    $0.33
                                                                 
Basic Weighted-Average Common Shares                   35,816     33,027
Diluted Weighted-Average Common Shares                 35,816     33,029
                                                                 
Comprehensive income                                              
Net income (loss)                                      $(748)   $12,951
Change in unrealized loss on interest rate derivative  (145)      (1)
Consolidated comprehensive income (loss)               (893)       12,950
                                                                 
Net loss attributable to non-controlling interest      1,389       795
Comprehensive loss attributable to non-controlling     1,389      795
interest
Comprehensive income attributable to Winthrop Realty   $496     $13,745
Trust
                                                                 
                                                                 

Funds From Operations:

The following presents a reconciliation of net income to funds from operations
("FFO") for the three months ended March 31, 2014 and 2013 (in thousands,
except per share amounts):

                                                      Three Months Ended
                                                       March 31,
                                                      2014        2013
                                                       (unaudited) (unaudited)
Basic                                                             
                                                                 
Net income attributable to Winthrop Realty Trust       $641       $13,746
Real estate depreciation                               4,676       3,263
Amortization of lease intangibles                      3,248       1,977
Trust's share of real estate depreciation and          1,793       2,623
amortization of unconsolidated interests
Impairment loss on investments in real estate          9,200       --
Gain on sale of real estate                            (4,225)   (2,775)
(Gain) loss on sale of equity investments              (69)        110
Less:Non-controlling interest share of depreciation   (1,635)    (877)
and amortization
                                                                 
Funds from operations                                  13,629      18,067
                                                                 
Preferred dividend of Series D Preferred Shares        (2,787)     (2,787)
Amount allocated to Restricted Shares                  (116)      (17)
Funds from operations applicable to Common Shares –    $10,726    $ 15,263
Basic
                                                                 
Weighted-average Common Shares                         35,816     33,027
                                                                 
Funds from operations per Common Share - Basic         $0.30      $0.46
                                                                 
Diluted                                                           
                                                                 
Funds from operations                                  13,629      18,067
                                                                 
Preferred dividend of Series D Preferred Shares        (2,787)     (2,787)
Amount allocated to Restricted Shares                  (116)      (17)
Funds from operations applicable to Common Shares –    $10,726  $15,263
Diluted
                                                                 
Basic weighted-average Common Shares                   35,816      33,027
Stock options                                          --          2
Restricted Shares                                      102        3
Diluted weighted-average Common Shares                 35,918     33,032
                                                                 
Funds from operations per Common Share – Diluted       $0.30    $0.46

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)
                                                     March 31,   December 31,
                                                     2014        2013
                                                     (Unaudited) (Unaudited)
ASSETS                                                           
Investments in real estate, at cost                              
Land                                                  $90,481    $82,215
Buildings and improvements                           591,824    588,653
                                                     682,305     670,868
Less: accumulated depreciation                        (56,035)   (56,448)
Investments in real estate, net                       626,270     614,420
                                                                
Cash and cash equivalents                             102,512     112,512
Restricted cash held in escrows                       16,329      13,372
Loans receivable, net                                 48,667      101,100
Secured financing receivable                          30,700      30,728
Accounts receivable, net of allowances of $63 and     2,506       2,229
$414, respectively
Accrued rental income, net of allowances of $354 and  12,572      19,760
$0, respectively
Loan securities carried at fair value                 226         226
Preferred equity investments                          6,492       6,485
Equity investments                                    190,737     149,085
Lease intangibles, net                                53,822      49,866
Deferred financing costs, net                         6,036       6,189
Other assets                                          4,090       3,314
Assets held for sale                                  25,156      23,038
TOTAL ASSETS                                          $ 1,126,115 $1,132,324
                                                                
LIABILITIES                                                      
Mortgage loans payable                                $476,424   $444,933
Senior notes payable                                  86,250      86,250
Secured financings                                    --          29,150
Notes payable                                         1,693       1,742
Accounts payable, accrued liabilities and other       24,493      26,266
liabilities
Related party fees payable                            2,605       2,831
Dividends payable                                     8,964       6,099
Deferred income                                       825         1,353
Below market lease intangibles, net                   10,405      2,399
Liabilities of assets held for sale                   1,182       21,638
TOTAL LIABILITIES                                     612,841    622,661
                                                                
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 issued and
outstanding at March 31, 2014 and December 31, 2013
Common Shares, $1 par, unlimited shares authorized;
36,409,710 and 36,401,438 issued and outstanding at   35,817      35,809
March 31, 2014 and December 31, 2013, respectively
Additional paid-in capital                            647,618     647,121
Accumulated distributions in excess of net income     (330,494)   (322,432)
Accumulated other comprehensive loss                  (269)       (124)
Total Winthrop Realty Trust Shareholders' Equity      473,172     480,874
Non-controlling interests                             40,102      28,789
Total Equity                                          513,274     509,663
TOTAL LIABILITIES AND EQUITY                          $1,126,115 $1,132,324

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 March 31, 2014 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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