NEW YORK (TheStreet) -- Winthrop Realty
(FUR - Get Report) shares are up 19.5% to $13.76 on Tuesday as investors reacted positively to the announcement that the company's board approved a plan of liquidation.
If approved by shareholders, the plan would take two years before all assets could be liquidated.
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As of March 31, the company has $102.5 million in cash and cash equivalent assets with another $41 million pending the consummation of the proposed sale of two of its properties.
The company expects shares to continue to be traded on the New York Stock Exchange during the liquidation until its assets are either disposed of or transferred to a liquidating trust.
TheStreet Ratings team rates WINTHROP REALTY TRUST as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate WINTHROP REALTY TRUST (FUR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.7%. Since the same quarter one year prior, revenues slightly increased by 7.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The share price of WINTHROP REALTY TRUST has not done very well: it is down 5.61% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, WINTHROP REALTY TRUST underperformed against that of the industry average and is significantly less than that of the S&P 500.
- Net operating cash flow has decreased to $4.43 million or 49.18% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, WINTHROP REALTY TRUST has marginally lower results.
- You can view the full analysis from the report here: FUR Ratings Report