Winthrop Realty Trust Announces Results for the Quarter Ended September 30, 
BOSTON, MA (REIT Media) November 7, 2007 - Winthrop Realty Trust (NYSE: FUR), a real estate investment trust, announced today the financial results for the third quarter ended September 30, 2007.
Third Quarter Financial Highlights
-- Reported net income for the quarter ended September 30, 2007 of
$5,370,000, $0.08 per common share, diluted(1), compared to a net
income of $5,186,000 or $0.10 per common share, diluted for the same
period in 2006.
-- Reported net income for the nine months ended September 30, 2007 of
$26,847,000 or $0.36 per common share, diluted, compared to a net
income of $18,790,000 or $0.36 per common share, diluted for the nine
months ended September 30, 2006.
-- For the quarter ended September 30, 2007, reported income from
continuing operations of $4,479,000, as compared to income from
continuing operations of $4,542,000, exclusive of $619,000 of gain on
sale of equity securities, for the same period in 2006.
-- For the nine months ended September 30, 2007, reported income from
continuing operations of $17,143,000, exclusive of the gain of
$9,982,000 on the sale of real estate securities and the $1,266,000
impairment of the Vision Loan, as compared to income from continuing
operations of $10,584,000, exclusive of the gain of $8,125,000 on the
sale of real estate securities, for the same period in 2006.
-- Funds from Operations ("FFO")(2) for the three months ended September
30, 2007 was $10,247,000 or $0.12 per common share, diluted, compared
to $6,284,000 or $0.09 per common share, diluted for the same period in
2006.
-- FFO for the nine months ended September 30, 2007 of $40,679,000 or
$0.46 per common share, diluted, compared to $28,873,000 or $0.44 per
common share, diluted, for the nine months ended September 30, 2006.
-- The Trust's investment in Concord Debt Holdings LLC ("Concord")
provided $7,534,000 of net income for the nine months ended September
30, 2007. Concord's total assets increased by approximately
$23,000,000 to $1,081,266,000 at September 30, 2007 as compared to June
30, 2007.
-- Total market capitalization at September 30, 2007 of approximately
$913,740,000 (based on the New York Stock Exchange closing price of the
Trust's common shares on September 28, 2007) assuming the conversion of
the Trust's Series B-1 Preferred Shares and with the inclusion of the
principal balance of the total debt outstanding at September 30, 2007).
At September 30, 2007, the Trust had approximately $321,536,000 of debt
outstanding, excluding the principal balance of the Series B-1
Preferred Shares, equating to a debt to market capitalization ratio of
35%.
-- Declared a regular quarterly dividend of $0.065 per common share which
was paid on October 15, 2007 to common shareholders of record on
September 30, 2007.
(1) See Additional Information and Supplemental Data for calculation
(2) See last page of this press release for a reconciliation of GAAP Net
Income to Company FFO.
Third Quarter Transactions and Recent Events
Acquisitions
-- On July 20, 2007, the tender offer made by Lex-Win Acquisition LLC
("Lex-Win"), an entity in which the Trust holds a 28% ownership
interest, to acquire up to 45,000,000 shares of common stock in Wells
Real Estate Investment Trust, Inc. ("Wells") (now known as Piedmont
Office Realty Trust, Inc.) at a price per share of $9.30 expired. At
the expiration of the offer, Lex-Win had received tenders based on the
letters of transmittal it received for approximately 4,800,000 shares
representing approximately 1% of the outstanding shares in Wells.
After submission of the letters of transmittal to Wells, the actual
number of shares acquired in Wells was approximately 3,900,000. The
Trust accounts for this investment using the equity method of
accounting.
-- On July 24, 2007, a venture in which the Trust holds a 60% interest
completed the anticipated foreclosure on a 241,000 square feet of
commercial space and an indoor parking garage with 133 spaces located
at 800 South Wells, Chicago, Illinois and commonly referred to as River
City. Following an additional appeal, the foreclosure sale was
confirmed and finalized on October 2, 2007 and the venture acquired
title to the property.
Loan Satisfaction/Dispositions
-- On September 12, 2007, one of the properties in the Marc Realty
portfolio, 216 West Jackson, Chicago, Illinois, in which the Trust held
a 7.65% convertible mezzanine loan and a preferred interest, was sold
to an unaffiliated third party. The Trust received $7,527,000,
exclusive of interest, on its original investment of $5,913,000.
Dividend Increase
-- On August 1, 2007, the Board of Trustees voted to increase the
quarterly dividend payable on the Trust's common shares by 8.3% from
$0.06 to $0.065 per share beginning with the 3rd quarter 2007 dividend
3rd QUARTER 2007 CONFERENCE CALL
On Thursday, November 8, 2007, at 2.00 p.m. Eastern Time, Winthrop will host its conference call to discuss its results for the quarter ended September 30, 2007. Winthrop's remarks will be followed by a question and answer period. Interested parties may participate in this conference call by dialing (877) 407-9205 or (201) 689-8054. A taped replay of the call will be available through December 8, 2007 at (877) 660-6853, account #286, confirmation #256660.
A live web cast (listen-only mode) of the conference call will be available at http://www.winthropreit.com within the Investor Relations section. An online replay will also be available through December 30, 2007.
Additional Information and Supplemental Data
Winthrop Realty Trust is a real estate investment trust engaged in the ownership and management of, and lending to, real estate and related investments. Winthrop Realty Trust is listed on the New York Stock Exchange and trades under the symbol "FUR." It has executive offices in Boston, Massachusetts and Jericho, New York.
Financial results from the three and nine months ended September 30, 2007 and 2006 as follows:
(in thousands, except per-share data)
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
(unaudited) (unaudited)
2007 2006 2007 2006
Revenues $12,355 $13,289 $41,268 $38,310
Income from continuing operations $4,479 $5,161 25,859 $18,709
Income from discontinued operations 891 25 988 81
Net income applicable to Common
Shares of Beneficial Interest $5,370 $5,186 $26,847 $18,790
Basic weighted-average Common
Shares 65,846 45,694 65,676 42,696
Convertible Preferred Shares - - - 22,831
Stock options 66 64 66 62
Diluted weighted-average Common
Shares 65,912 45,758 65,742 65,589
Per Share - Diluted:
Income from continuing operations $0.07 $0.10 $0.35 $0.36
Income from discontinued operations 0.01 0.00 0.01 0.00
Net income applicable to Common
Shares of Beneficial Interest
dilutive $0.08 $0.10 $0.36 $0.36
Company Funds from Operations
For the Three Months For the Nine Months
Ended Ended
September September September September
30, 30, 30, 30,
2007 2006 2007 2006
Net income $5,370 $5,186 $26,847 $18,790
Real estate depreciation 1,554 1,536 4,624 4,405
Amortization of
capitalized leasing costs 1,319 1,440 4,001 3,814
Real estate depreciation
and amortization of
unconsolidated interests 914 704 1,942 2,655
Less: Minority interest
share of depreciation and
amortization (721) (733) (2,208) (2,186)
Gain on sale of operating
property of Unconsolidated
interests - (3,452) - (3,452)
Interest expense on Series
B-1 Preferred Shares 1,811 1,603 5,473 4,847
Funds from operations
applicable to Common
Shares plus assumed
conversions of
Convertible Preferred
Shares $10,247 $6,284 $40,679 $28,873
Basic weighted-average
Common Shares 65,846 45,694 65,676 42,696
Convertible Preferred
Shares (1) 22,110 22,167 22,148 22,831
Stock options 66 64 66 62
Diluted weighted-average
Common Shares 88,022 67,925 87,890 65,589
Funds from operations per
share - diluted $0.12 $0.09 $0.46 $0.44
(1) Most industry analysts and equity REITs, including the Trust,
generally consider funds from operations ("FFO") to be an appropriate
supplemental measure of the performance of an equity REIT. The Trust
has adopted the revised definition of FFO adopted by the Board of
Governors of the National Association of Real Estate Investment Trusts
which defines FFO as net income applicable to common shares before
depreciation and amortization, extraordinary items, cumulative effect
of accounting changes, gains on sales of operating real estate, plus
the pro-rata amount of depreciation and amortization of unconsolidated
joint ventures, net of minority interests, determined on a consistent
basis. Given the nature of the Trust's business as a real estate
owner and operator, the Trust believes that to further understand our
performance, FFO should be considered in conjunction with our reported
net income and considered in addition to cash flows in accordance with
generally accepted accounting principles, as presented in our
consolidated financial statements. FFO does not represent cash
generated from operating activities in accordance with generally
accepted accounting principles and therefore should not be considered
an alternative for net income as a measure of liquidity. In addition,
the comparability of the Company's FFO with the FFO reported by other
REITs may be affected by the differences that exist regarding certain
accounting policies relating to expenditures for repairs and other
recurring items.
Other Selected Financial Data:
(in thousands)
September 30, December 31,
2007 2006
(unaudited)
Total Assets(1) $ 771,637 $ 851,620
Total Liabilities $ 435,694 $ 497,983
Minority Interest 10,019 30,051
Total shareholders' equity 325,924 323,586
Total liabilities and shareholders'
equity $ 771,637 $ 851,620
(1) The decrease in total assets relates primarily to the satisfaction of
the Toy Loan receivable and corresponding satisfaction of the Toy Loan
payable and distribution to the minority interest.
Further details regarding the Company's results of operations, properties, and tenants are available in the Company's Quarterly Report filed on Form 10-Q for the quarter ended September 30, 2007 which will be filed with the Securities and Exchange Commission and will be available for download at the Company's website http://www.winthropreit.com or at the Securities and Exchange Commission website http://www.sec.gov.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. With the exception of the historical information contained in this news release, the matters described herein contain "forward-looking" statements that involve risk and uncertainties that may individually or collectively impact the matters herein described. These are detailed from time to time in the "Risk Factors" section of the Company's SEC reports including the annual report on Form 10-K for the year ended December 31, 2006. Further information relating to the Company's financial position, results of operations, and investor information is contained in our annual and quarterly reports filed with the SEC and available for download at our website http://www.winthropreit.com or at the SEC website http://www.sec.gov.
Source: Winthrop Realty Trust
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