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Winthrop Realty Trust Announces Results For Fourth Quarter And Full Year 2010

BOSTON, March 3, 2011 (GLOBE NEWSWIRE) -- Winthrop Realty Trust (NYSE:FUR), a leading real estate value investor, announced today financial and operating results for the fourth quarter and full year ended December 31, 2010. All per share amounts are on a fully diluted basis.

Fourth Quarter 2010 Investment Activity

  • Acquired for $9.75 million an existing $39.0 million performing loan made to a private real estate equity fund and then modified the loan to provide for: (i) an interest rate of 15% on the $9.75 million investment amount; (ii) collateral in the form of a $3.0 million letter of credit, a first mortgage on land and other assets; and, (iii) a discounted payoff option after one year of $9.75 million.  
  • Acquired at par a $21.4 million, variable rate (currently 7.98%) senior participation in a B Note secured by a first mortgage lien on a 951,000 square foot, recently constructed three building, class A office complex located in Sunnyvale, California.  
  • Acquired for $5.25 million two bonds with an aggregate face amount of approximately $8.75 million, a weighted average interest rate of Libor plus 1.30% and a scheduled maturity date of November 1, 2011. The bonds are secured by the 260,000 square feet of office space constituting the office portion of Metropolitan Tower located in New York, New York.  
  • Acquired at par a $3.5 million performing, 11% first mortgage loan secured by an interest in four class B office buildings, containing 91,100 square feet of office space in Phoenix, Arizona. The loan has a scheduled maturity date of October 31, 2011.  
  • Executed on our strategy by foreclosing on a 118,000 square foot office building referred to as Crossroads II at Meridian, located in Englewood, Colorado, in which we held a first mortgage with a carrying amount of $8.4 million.  
  • Purchased for $8.7 million a 118,000 square foot office building known as Crossroads I at Meridian located in Englewood, Colorado. The Crossroads I is a sister property to the Crossroads II at Meridian office building and is adjacent thereto.  
  • Purchased the land underlying the Plantation, Florida property leased to BellSouth Telecommunication, Inc. for $4.0 million.  
  • Purchased the land underlying the Andover, Massachusetts property leased to PAETEC Communications, Inc. for $1.2 million.  
  • Received $2.3 million from the repayment of two bonds purchased in the second quarter of 2010 for $1.2 million.

2011 Investment Activity

  • Executed an agreement to purchase for $25.2 million an effective 75% interest in a joint venture which own the general partnership interests in and developer fees and advances receivable of approximately $57.5 million from partnerships owning 26 multifamily and senior housing properties comprising approximately 4,400 units located primarily in the Pacific Northwest and California with original limited partner investments of $131.4 million. The portfolio has an in place aggregate net operating income of approximately $23.5 million with respect to approximately $232.5 million in outstanding debt. We expect to close this transaction in stages throughout the second quarter of 2011.  
  • Formed a 50/50 joint venture to acquire for $15.6 million a performing $16.3 million first mortgage secured by a lien on a recently constructed, 26-story, 66 room limited service boutique hotel located on 46 th Street between 5 th and Madison Avenues in New York, New York. The loan bears interest at a rate of 9.33% and will mature in May 2011, subject to one six month extension option.  
  • Entered into an agreement to acquire in a 50/50 joint venture two non-performing first mortgage loans with a total outstanding balance of $35.6 million secured by two grocery anchored retail centers located in Riverside County, California. The loans are in maturity default and are accruing interest at a default rate of 8.92%. Assuming satisfactory due diligence, this transaction is expected to close in late March 2011.  
  • Restructured a $30.1 million 5.88% interest rate performing first mortgage loan secured by a 276 unit Class A apartment community in Tempe, Arizona into a $15.2 million 4.85% interest senior participation and a $15.7 million junior participation with an effective current yield of 9.1% and a yield to maturity of 14.7%.  Concurrently with the restructuring the senior participation was sold at par.  
  • Entered into an agreement to sell at par a $10.0 million sub participation interest secured by the Beverly Hills Hilton Hotel that we acquired in December 2009 for $5.25 million. The purchaser has the right to close at any time up to July 9, 2011.  
  • Entered into contracts to sell two of the vacant Kroger properties located in St. Louis, Missouri and Knoxville, Tennessee for an aggregate purchase price of $3.9 million, subject to the purchasers' due diligence.  
  • Increased our credit facility from $35.0 million to $50.0 million, with an expansion option of up to $150.0 million, and extended its maturity date to March 2014.

Michael L. Ashner, Winthrop's Chairman and Chief Executive Officer, commented, "We are pleased with our accomplishments in 2010. We deployed $160.6 million in a variety of deep value real estate investments including below replacement cost assets, deeply discounted bonds and non performing loans. Our capital raise in September provided us with the additional funds necessary to expand our value real estate investment strategy." Mr. Ashner added, "Despite the nascent economic recovery, real estate fundamentals continue to remain anemic which we believe will provide Winthrop with one of the largest deal pipelines we have seen in more than a decade. We are energized by the opportunities that we are seeing and look forward to a productive 2011."

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