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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 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.

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