Attached files
file | filename |
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8-K - Winthrop Realty Liquidating Trust | e609905_8k-wrt.htm |
EX-99.1 - Winthrop Realty Liquidating Trust | e609905_ex99-1.htm |
Winthrop Realty Trust
Supplemental Operating and Financial Data
For the Period Ended June 30, 2012
WINTHROP REALTY TRUST
SUPPLEMENTAL REPORTING PACKAGE
Table of Contents
Consolidated Balance Sheets
|
1
|
Consolidated Statements of Operations and Comprehensive Income
|
2
|
Funds from Operations
|
5
|
Estimated Net Asset Value
|
7
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Consolidated Statements of Cash Flows
|
11
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Selected Balance Sheet Account Detail
|
13
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Schedule of Capitalization, Dividends and Liquidity
|
14
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Selected Investment Data
|
15
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Schedule of Securities Carried at Fair Value
|
18
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Schedule of Loan Assets
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19
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Net Operating Income from Consolidated Properties
|
21
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Schedule of Interest, Dividends and Discount Accretion
|
22
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Consolidated Properties – Selected Property Data
|
23
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Equity Investments – Selected Property Data
|
25
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Consolidated Properties – Operating Summary
|
28
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Equity Investments – Operating Summary
|
29
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Consolidated Debt Summary
|
30
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Equity Investments Debt Summary
|
31
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Lease Expiration Summary
|
33
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Reconciliation of Non-GAAP financial measures of income to net income attributable to Common Shares
|
34
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Supplemental Definitions
|
35
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Investor Information
|
36
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Forward-Looking Statements - This supplemental reporting package contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words "assumes," "believes," "estimates," "expects," "guidance," "intends," “plans,” “projects,” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Winthrop Realty Trust (the Trust”) control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the ability of our joint venture partners to satisfy their obligations, the costs and availability of financing, the effects of local economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Trust's accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Trust’s filings with the Securities and Exchange Commission. The Trust does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures - It is important to note that throughout this presentation management makes references to non-GAAP financial measures, an example of which is Funds from Operations (“FFO”). Reconciliations and definitions for these non-GAAP financial measures are provided within this document.
WINTHROP REALTY TRUST
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data, Unaudited)
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
||||||||||||||||
2012
|
2012
|
2011
|
2011
|
2011
|
||||||||||||||||
ASSETS
|
||||||||||||||||||||
Investments in real estate, at cost
|
||||||||||||||||||||
Land
|
$ | 39,575 | $ | 36,495 | $ | 36,495 | $ | 36,495 | $ | 36,495 | ||||||||||
Buildings and improvements
|
350,243 | 328,556 | 327,337 | 273,118 | 273,964 | |||||||||||||||
389,818 | 365,051 | 363,832 | 309,613 | 310,459 | ||||||||||||||||
Less: accumulated depreciation
|
(49,818 | ) | (47,071 | ) | (44,556 | ) | (42,262 | ) | (40,168 | ) | ||||||||||
Investments in real estate, net
|
340,000 | 317,980 | 319,276 | 267,351 | 270,291 | |||||||||||||||
Cash and cash equivalents
|
43,959 | 79,526 | 40,952 | 66,777 | 51,344 | |||||||||||||||
Restricted cash held in escrows
|
10,678 | 8,549 | 3,914 | 4,916 | 9,152 | |||||||||||||||
Loans receivable, net
|
123,872 | 116,399 | 114,333 | 115,889 | 153,437 | |||||||||||||||
Accounts receivable, net of allowances of $397, $512,
|
||||||||||||||||||||
$639, $594 and $453, respectively
|
19,261 | 18,165 | 16,140 | 12,380 | 14,110 | |||||||||||||||
Securities carried at fair value
|
34,079 | 33,700 | 28,856 | 6,652 | 7,613 | |||||||||||||||
Loan securities carried at fair value
|
5,385 | 5,473 | 5,309 | 5,343 | 5,418 | |||||||||||||||
Preferred equity investments
|
5,500 | 1,500 | 5,520 | 13,402 | 10,155 | |||||||||||||||
Equity investments
|
146,221 | 152,148 | 162,142 | 106,156 | 95,169 | |||||||||||||||
Lease intangibles, net
|
34,678 | 35,644 | 36,305 | 25,394 | 24,681 | |||||||||||||||
Deferred financing costs, net
|
1,081 | 1,088 | 1,180 | 1,184 | 1,346 | |||||||||||||||
Assets held for sale
|
6 | 6 | 6 | 1,491 | 3,702 | |||||||||||||||
TOTAL ASSETS
|
$ | 764,720 | $ | 770,178 | $ | 733,933 | $ | 626,935 | $ | 646,418 | ||||||||||
LIABILITIES
|
||||||||||||||||||||
Mortgage loans payable
|
$ | 229,891 | $ | 230,257 | $ | 230,940 | $ | 185,622 | $ | 210,751 | ||||||||||
Series B-1 Cumulative Convertible Redeemable Preferred
|
||||||||||||||||||||
Shares, $25 per share liquidation preference; 852,000 shares
authorized and outstanding at September 30, and
June 30, 2011
|
- | - | - | 21,300 | 21,300 | |||||||||||||||
Non-recourse secured financings
|
29,150 | 29,150 | 29,150 | 15,150 | 15,150 | |||||||||||||||
Revolving line of credit
|
- | - | 40,000 | - | - | |||||||||||||||
Accounts payable and accrued liabilities
|
16,696 | 14,672 | 16,174 | 12,287 | 12,322 | |||||||||||||||
Dividends payable
|
5,373 | 5,371 | 5,369 | 5,395 | 5,385 | |||||||||||||||
Deferred income
|
1,010 | 464 | 502 | 1,550 | 1,016 | |||||||||||||||
Below market lease intangibles, net
|
2,602 | 2,782 | 2,962 | 2,137 | 2,312 | |||||||||||||||
Liabilities of held for sale assets
|
- | - | - | 597 | 620 | |||||||||||||||
TOTAL LIABILITIES
|
284,722 | 282,696 | 325,097 | 244,038 | 268,856 | |||||||||||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||||||||||||||
NON-CONTROLLING REDEEMABLE PREFERRED
INTEREST
|
||||||||||||||||||||
Series C Cumulative Convertible Redeemable Preferred
|
||||||||||||||||||||
Shares, $25 per share liquidation preference, 144,000 shares
authorized and outstanding at September 30 and June 30, 2011
|
||||||||||||||||||||
|
- | - | - | 3,221 | 3,221 | |||||||||||||||
Total non-controlling redeemable preferred interest
|
- | - | - | 3,221 | 3,221 | |||||||||||||||
EQUITY
|
||||||||||||||||||||
Winthrop Realty Trust Shareholders’ Equity:
|
||||||||||||||||||||
Series D Cumulative Redeemable Preferred Shares
|
||||||||||||||||||||
$25 per share liquidation preference, 5,060,000 shares authorized
and 4,820,000 shares outstanding at June 30, 2012 and March
31, 2012 and 1,840,000 shares authorized and 1,600,000 shares
outstanding at December 31, 2011
|
120,500 | 120,500 | 40,000 | - | - | |||||||||||||||
Common Shares, $1 par, unlimited shares authorized;
|
||||||||||||||||||||
33,066,280, 33,053,502, 33,041,034, 32,958,778, and 32,897,554
issued and outstanding at June 30, Mar 31, 2012, Dec 31, Sept
30, and June 30, 2011, respectively
|
33,066 | 33,053 | 33,041 | 32,959 | 32,898 | |||||||||||||||
Additional paid-in capital
|
617,862 | 623,284 | 626,099 | 627,107 | 626,472 | |||||||||||||||
Accumulated distributions in excess of net income
|
(314,091 | ) | (309,289 | ) | (311,246 | ) | (295,290 | ) | (299,721 | ) | ||||||||||
Accumulated other comprehensive loss
|
(149 | ) | (124 | ) | (92 | ) | - | - | ||||||||||||
Total Winthrop Realty Trust Shareholders’ Equity
|
457,188 | 467,424 | 387,802 | 364,776 | 359,649 | |||||||||||||||
Non-controlling interests
|
22,810 | 20,058 | 21,034 | 14,900 | 14,692 | |||||||||||||||
Total Equity
|
479,998 | 487,482 | 408,836 | 379,676 | 374,341 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY
|
$ | 764,720 | $ | 770,178 | $ | 733,933 | $ | 626,935 | $ | 646,418 |
1
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
Revenue
|
||||||||||||||||
Rents and reimbursements
|
$ | 13,257 | $ | 11,234 | $ | 25,797 | $ | 22,220 | ||||||||
Interest, dividends and discount accretion
|
5,778 | 5,094 | 11,296 | 14,766 | ||||||||||||
19,035 | 16,328 | 37,093 | 36,986 | |||||||||||||
Expenses
|
||||||||||||||||
Property operating
|
3,779 | 3,987 | 8,331 | 8,032 | ||||||||||||
Real estate taxes
|
1,017 | 1,087 | 2,271 | 2,342 | ||||||||||||
Depreciation and amortization
|
4,479 | 3,312 | 8,198 | 6,793 | ||||||||||||
Interest
|
3,512 | 3,963 | 7,301 | 8,576 | ||||||||||||
General and administrative
|
3,264 | 2,758 | 6,295 | 5,282 | ||||||||||||
State and local taxes
|
143 | 48 | 149 | 77 | ||||||||||||
16,194 | 15,155 | 32,545 | 31,102 | |||||||||||||
Other income (loss)
|
||||||||||||||||
Earnings from preferred equity investments
|
- | 158 | - | 241 | ||||||||||||
Equity in income of equity investments
|
586 | 2,875 | 1,010 | 1,520 | ||||||||||||
Realized gain on sale of securities carried at fair value
|
15 | 7 | 41 | 131 | ||||||||||||
Unrealized (loss) gain on securities carried at fair value
|
(791 | ) | (723 | ) | 4,141 | 163 | ||||||||||
Unrealized (loss) gain on loan securities carried at fair value
|
(88 | ) | 34 | 76 | 2,847 | |||||||||||
Gain on sale of equity investment
|
232 | - | 232 | - | ||||||||||||
Interest income
|
90 | 443 | 192 | 536 | ||||||||||||
44 | 2,794 | 5,692 | 5,438 | |||||||||||||
Income from continuing operations
|
2,885 | 3,967 | 10,240 | 11,322 | ||||||||||||
Discontinued operations
|
||||||||||||||||
Income (loss) from discontinued operations
|
- | 90 | (3 | ) | 137 | |||||||||||
Consolidated net income
|
2,885 | 4,057 | 10,237 | 11,459 | ||||||||||||
(Income) loss attributable to non-controlling interest
|
473 | (329 | ) | 1,374 | (533 | ) | ||||||||||
Net income attributable to Winthrop Realty Trust
|
3,358 | 3,728 | 11,611 | 10,926 | ||||||||||||
Income attributable to non-controlling redeemable
preferred interest
|
- | (58 | ) | - | (117 | ) | ||||||||||
Income attributable to Series D Preferred Shares
|
(2,787 | ) | - | (3,712 | ) | - | ||||||||||
Net income attributable to Common Shares
|
$ | 571 | $ | 3,670 | $ | 7,899 | $ | 10,809 | ||||||||
Per Common Share data - Basic
|
||||||||||||||||
Income from continuing operations
|
$ | 0.02 | $ | 0.11 | $ | 0.24 | $ | 0.36 | ||||||||
Income from discontinued operations
|
- | - | - | - | ||||||||||||
Net income attributable to Winthrop Realty Trust
|
$ | 0.02 | $ | 0.11 | $ | 0.24 | $ | 0.36 | ||||||||
Per Common Share data - Diluted
|
||||||||||||||||
Income from continuing operations
|
$ | 0.02 | $ | 0.11 | $ | 0.24 | $ | 0.36 | ||||||||
Income from discontinued operations
|
- | - | - | - | ||||||||||||
Net income attributable to Winthrop Realty Trust
|
$ | 0.02 | $ | 0.11 | $ | 0.24 | $ | 0.36 | ||||||||
Basic Weighted-Average Common Shares
|
33,064 | 32,573 | 33,058 | 29,841 | ||||||||||||
Diluted Weighted-Average Common Shares
|
33,064 | 32,574 | 33,058 | 29,842 | ||||||||||||
Comprehensive income
|
||||||||||||||||
Consolidated net income
|
$ | 2,885 | $ | 4,057 | $ | 10,237 | $ | 11,459 | ||||||||
Change in unrealized gain on interest rate derivative
|
(25 | ) | - | (57 | ) | 63 | ||||||||||
Comprehensive income
|
$ | 2,860 | $ | 4,057 | $ | 10,180 | $ | 11,522 |
2
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share data, continued)
(Unaudited)
Three Months Ended
|
||||||||||||||||||||
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
||||||||||||||||
2012
|
2012
|
2011
|
2011
|
2011
|
||||||||||||||||
Revenue
|
||||||||||||||||||||
Rents and reimbursements
|
$ | 13,257 | $ | 12,540 | $ | 22,561 | $ | 10,841 | $ | 11,234 | ||||||||||
Interest, dividends and discount accretion
|
5,778 | 5,518 | 14,861 | 5,503 | 5,094 | |||||||||||||||
19,035 | 18,058 | 37,422 | 16,344 | 16,328 | ||||||||||||||||
Expenses
|
||||||||||||||||||||
Property operating
|
3,779 | 4,552 | 7,799 | 3,535 | 3,987 | |||||||||||||||
Real estate taxes
|
1,017 | 1,254 | 2,351 | 1,108 | 1,087 | |||||||||||||||
Depreciation and amortization
|
4,479 | 3,719 | 7,042 | 3,185 | 3,312 | |||||||||||||||
Interest
|
3,512 | 3,789 | 8,511 | 3,547 | 3,963 | |||||||||||||||
Impairment loss on investment in real estate
|
- | - | 4,600 | 3,000 | - | |||||||||||||||
General and administrative
|
3,264 | 3,031 | 6,116 | 2,893 | 2,758 | |||||||||||||||
State and local taxes
|
143 | 6 | 320 | 11 | 48 | |||||||||||||||
16,194 | 16,351 | 36,739 | 17,279 | 15,155 | ||||||||||||||||
Other income (loss)
|
||||||||||||||||||||
Earnings (loss) from preferred equity investments
|
- | - | (77 | ) | 257 | 158 | ||||||||||||||
Equity in income (loss) of equity investments
|
586 | 424 | (18,614 | ) | 2,820 | 2,875 | ||||||||||||||
Gain on sale of equity investments
|
232 | - | - | 207 | - | |||||||||||||||
Realized gain (loss) on sale of securities carried at
fair value
|
15 | 26 | 116 | - | 7 | |||||||||||||||
Unrealized gain (loss) on securities carried at fair value
|
(791 | ) | 4,932 | 4,472 | (961 | ) | (723 | ) | ||||||||||||
Gain (loss) on extinguishment of debt, net
|
- | - | 744 | 8,514 | - | |||||||||||||||
Unrealized gain (loss) on loan securities carried
at fair value
|
(88 | ) | 164 | 2,779 | (75 | ) | 34 | |||||||||||||
Settlement income
|
- | - | 5,868 | - | - | |||||||||||||||
Gain on consolidation of property
|
- | - | 818 | - | - | |||||||||||||||
Interest and other income
|
90 | 102 | 264 | 472 | 443 | |||||||||||||||
44 | 5,648 | (3,630 | ) | 11,234 | 2,794 | |||||||||||||||
Income (loss) from continuing operations
|
2,885 | 7,355 | (2,947 | ) | 10,299 | 3,967 | ||||||||||||||
Discontinued operations
|
||||||||||||||||||||
Income (loss) from discontinued operations
|
- | (3 | ) | 473 | (135 | ) | 90 | |||||||||||||
Consolidated net income (loss)
|
2,885 | 7,352 | (2,474 | ) | 10,164 | 4,057 | ||||||||||||||
(Income) loss attributable to non-controlling interest
|
473 | 901 | (167 | ) | (318 | ) | (329 | ) | ||||||||||||
Net income (loss) attributable to Winthrop Realty Trust
|
3,358 | 8,253 | (2,641 | ) | 9,846 | 3,728 | ||||||||||||||
Income attributable to non-controlling redeemable
preferred interest
|
- | - | (468 | ) | (59 | ) | (58 | ) | ||||||||||||
Income attributable to Series D preferred shares
|
(2,787 | ) | (925 | ) | (339 | ) | - | - | ||||||||||||
Net income (loss) attributable to Common Shares
|
$ | 571 | $ | 7,328 | $ | (3,448 | ) | $ | 9,787 | $ | 3,670 |
3
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In thousands, except per share data, continued)
(Unaudited)
Three Months Ended
|
||||||||||||||||||||
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
||||||||||||||||
2012
|
2012
|
2011
|
2011
|
2011
|
||||||||||||||||
Per Common Share data - Basic
|
||||||||||||||||||||
Income (loss) from continuing operations
|
$ | 0.02 | $ | 0.22 | $ | (0.33 | ) | $ | 0.30 | $ | 0.11 | |||||||||
Income (loss) from discontinued operations
|
- | - | 0.01 | - | - | |||||||||||||||
Net income (loss) attributable to
Winthrop Realty Trust
|
$ | 0.02 | $ | 0.22 | $ | (0.32 | ) | $ | 0.30 | $ | 0.11 | |||||||||
Per Common Share data - Diluted
|
||||||||||||||||||||
Income (loss) from continuing operations
|
$ | 0.02 | $ | 0.22 | $ | (0.33 | ) | $ | 0.30 | $ | 0.11 | |||||||||
Income (loss) from discontinued operations
|
- | - | 0.01 | - | - | |||||||||||||||
Net income (loss) attributable to
Winthrop Realty Trust
|
$ | 0.02 | $ | 0.22 | $ | (0.32 | ) | $ | 0.30 | $ | 0.11 | |||||||||
Basic Weighted-Average
Common Shares
|
33,064 | 33,052 | 33,027 | 32,949 | 32,573 | |||||||||||||||
Diluted Weighted-Average
Common Shares
|
33,064 | 33,052 | 33,027 | 32,949 | 32,574 | |||||||||||||||
Comprehensive income (loss)
|
||||||||||||||||||||
Consolidated net income (loss)
|
$ | 2,885 | $ | 7,352 | $ | (2,474 | ) | $ | 10,164 | $ | 4,057 | |||||||||
Change in unrealized gain (loss) on interest rate
derivative
|
(25 | ) | (32 | ) | (29 | ) | - | - | ||||||||||||
Comprehensive income (loss)
|
$ | 2,860 | $ | 7,320 | $ | (2,503 | ) | $ | 10,164 | $ | 4,057 |
4
WINTHROP REALTY TRUST
FUNDS FROM OPERATIONS
(In thousands, except per share data)
(Unaudited)
The following presents a reconciliation of net income to funds from operations for the three and six months ended June 30, 2012 and 2011:
For the Three Months Ended
|
For the Six Months Ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Basic
|
||||||||||||||||
Net income attributable to Winthrop Realty Trust
|
$ | 3,358 | $ | 3,728 | $ | 11,611 | $ | 10,926 | ||||||||
Real estate depreciation
|
2,747 | 2,086 | 5,261 | 4,204 | ||||||||||||
Amortization of capitalized leasing costs
|
1,732 | 1,226 | 2,937 | 2,591 | ||||||||||||
Real estate depreciation and amortization of unconsolidated interests
|
3,992 | 2,376 | 7,654 | 4,639 | ||||||||||||
Gain on sale of equity investments
|
(232 | ) | - | (232 | ) | - | ||||||||||
Impairment loss on equity investments
|
- | 3,800 | - | 3,800 | ||||||||||||
Less: Non-controlling interest share of depreciation and amortization
|
(713 | ) | (789 | ) | (1,445 | ) | (1,581 | ) | ||||||||
Funds from operations
|
10,884 | 12,427 | 25,786 | 24,579 | ||||||||||||
Preferred dividend of Series C Preferred Shares
|
- | (58 | ) | - | (117 | ) | ||||||||||
Preferred dividend of Series D Preferred Shares
|
(2,787 | ) | - | (3,712 | ) | - | ||||||||||
Allocation of earnings to Series B-1 Preferred Shares
|
- | (11 | ) | - | (78 | ) | ||||||||||
Allocation of earnings to Series C Preferred Shares
|
- | (39 | ) | - | (92 | ) | ||||||||||
FFO applicable to Common Shares - Basic
|
$ | 8,097 | $ | 12,319 | $ | 22,074 | $ | 24,292 | ||||||||
Weighted-average Common Shares
|
33,064 | 32,573 | 33,058 | 29,841 | ||||||||||||
FFO Per Common Share - Basic
|
$ | 0.24 | $ | 0.38 | $ | 0.67 | $ | 0.81 | ||||||||
Diluted
|
||||||||||||||||
Funds from operations
|
$ | 10,884 | $ | 12,427 | $ | 25,786 | $ | 24,579 | ||||||||
Preferred dividend of Series C Preferred Shares
|
- | (58 | ) | - | (117 | ) | ||||||||||
Preferred dividend of Series D Preferred Shares
|
(2,787 | ) | - | (3,712 | ) | - | ||||||||||
Allocation of earnings to Series B-1 Preferred Shares
|
- | (11 | ) | - | (78 | ) | ||||||||||
Allocation of earnings to Series C Preferred Shares
|
- | (39 | ) | - | (92 | ) | ||||||||||
FFO applicable to Common Shares
|
$ | 8,097 | $ | 12,319 | $ | 22,074 | $ | 24,292 | ||||||||
Weighted-average Common Shares
|
33,064 | 32,573 | 33,058 | 29,841 | ||||||||||||
Stock options
|
- | 1 | - | 1 | ||||||||||||
Series B-1 Preferred Shares
|
- | - | - | - | ||||||||||||
Series C Preferred Shares
|
- | - | - | - | ||||||||||||
Diluted weighted-average Common Shares
|
33,064 | 32,574 | 33,058 | 29,842 | ||||||||||||
FFO Per Common Share - Diluted
|
$ | 0.24 | $ | 0.38 | $ | 0.67 | $ | 0.81 |
5
WINTHROP REALTY TRUST
FUNDS FROM OPERATIONS
(In thousands, except per share data)
(Unaudited)
The following presents a reconciliation of net income to funds from operations for the each of the last five quarterly periods:
Three Months Ended
|
||||||||||||||||||||
June 30,
|
March 31,
|
December 31,
|
September 30,
|
June 30,
|
||||||||||||||||
2012
|
2012
|
2011
|
2011
|
2011
|
||||||||||||||||
Basic
|
||||||||||||||||||||
Net income (loss) attributable to
Winthrop Realty Trust
|
$ | 3,358 | $ | 8,253 | $ | (9,839 | ) | $ | 9,846 | $ | 3,728 | |||||||||
Real estate depreciation
|
2,747 | 2,515 | 2,348 | 2,094 | 2,086 | |||||||||||||||
Amortization of capitalized leasing costs
|
1,732 | 1,204 | 1,213 | 1,092 | 1,226 | |||||||||||||||
(Gain) loss on sale of real estate
|
- | - | (450 | ) | 58 | - | ||||||||||||||
Gain on sale of equity investments
|
(232 | ) | - | - | (207 | ) | - | |||||||||||||
Gain on consolidation of property
|
- | - | (818 | ) | - | - | ||||||||||||||
Real estate depreciation and amortization
|
||||||||||||||||||||
of unconsolidated interests
|
3,992 | 3,662 | 3,831 | 2,996 | 2,376 | |||||||||||||||
Impairment loss on investments in real estate
|
- | - | 4,600 | 3,000 | 3,800 | |||||||||||||||
Impairment loss on equity investments
|
- | - | 17,258 | - | - | |||||||||||||||
Less: Non-controlling interest share
|
||||||||||||||||||||
of depreciation and amortization
|
(713 | ) | (732 | ) | (1,113 | ) | (790 | ) | (789 | ) | ||||||||||
Funds from operations
|
10,884 | 14,902 | 17,030 | 18,089 | 12,427 | |||||||||||||||
Preferred dividend of Series C Preferred Shares
|
- | - | (409 | ) | (59 | ) | (58 | ) | ||||||||||||
Preferred dividend of Series D Preferred Shares
|
(2,787 | ) | (925 | ) | (339 | ) | - | - | ||||||||||||
Allocation of earnings to Series
B-1 Preferred Shares
|
- | - | (61 | ) | (170 | ) | (11 | ) | ||||||||||||
Allocation of earnings to Series
C Preferred Shares
|
- | - | (35 | ) | (82 | ) | (39 | ) | ||||||||||||
FFO applicable to Common Shares - Basic
|
$ | 8,097 | $ | 13,977 | $ | 16,186 | $ | 17,778 | $ | 12,319 | ||||||||||
Weighted-average Common Shares
|
33,064 | 33,052 | 33,027 | 32,949 | 32,573 | |||||||||||||||
FFO Per Common Share - Basic
|
$ | 0.24 | $ | 0.42 | $ | 0.49 | $ | 0.54 | $ | 0.38 | ||||||||||
Diluted
|
||||||||||||||||||||
Funds from operations
|
$ | 10,884 | $ | 14,902 | $ | 17,030 | $ | 18,089 | $ | 12,427 | ||||||||||
Preferred dividend of Series C Preferred Shares
|
- | - | (409 | ) | (59 | ) | (58 | ) | ||||||||||||
Preferred dividend of Series D Preferred Shares
|
(2,787 | ) | (925 | ) | (339 | ) | - | - | ||||||||||||
Allocation of earnings to Series
B-1 Preferred Shares
|
- | - | (61 | ) | (170 | ) | (11 | ) | ||||||||||||
Allocation of earnings to Series
C Preferred Shares
|
- | - | (35 | ) | (82 | ) | (39 | ) | ||||||||||||
FFO applicable to Common Shares
|
$ | 8,097 | $ | 13,977 | $ | 16,186 | $ | 17,778 | $ | 12,319 | ||||||||||
Weighted-average Common Shares
|
33,064 | 33,052 | 33,027 | 32,949 | 32,573 | |||||||||||||||
Stock options
|
- | - | - | - | 1 | |||||||||||||||
Convertible Series C Preferred Shares
|
- | - | - | - | - | |||||||||||||||
Diluted weighted-average Common Shares
|
33,064 | 33,052 | 33,027 | 32,949 | 32,574 | |||||||||||||||
FFO Per Common Share - Diluted
|
$ | 0.24 | $ | 0.42 | $ | 0.49 | $ | 0.54 | $ | 0.38 |
6
WINTHROP REALTY TRUST
ESTIMATED NET ASSET VALUE
(In thousands, except per share data)
(Unaudited)
Cash, accounts payable and dividends payable:
|
Trust Ownership
|
Carrying Amount
|
Matched Debt
|
Estimated NAV Range
|
|||||||||||||||||||||
Cash and cash equivalents and restricted cash
|
100 | % | $ | 54,637 | $ | - | $ | 54,637 |
to
|
$ | 54,637 | ||||||||||||||
Accounts payable and dividends payable
|
100 | % | (22,069 | ) | - | (22,069 | ) |
to
|
(22,069 | ) | |||||||||||||||
Subtotal - Corporate Segment Estimated Net Asset Value Range
|
32,568 |
to
|
32,568 | ||||||||||||||||||||||
REIT Securities:
|
Trust Ownership
|
Fair Value
Carrying Amount
|
Matched Debt
|
Estimated NAV Range
|
|||||||||||||||||||||
REIT Common shares
|
100 | % | $ | 34,079 | $ | - | $ | 34,079 |
to
|
$ | 34,079 | ||||||||||||||
REIT Preferred shares
|
100 | % | - | - | - |
to
|
- | ||||||||||||||||||
Subtotal - REIT Securities Segment Estimated Net Asset Value Range
|
34,079 |
to
|
34,079 | ||||||||||||||||||||||
Loans:
|
Trust Ownership
|
Par Value
Plus Accrued Interest
|
Matched Debt
|
Estimated NAV Range
|
|||||||||||||||||||||
Loan Assets, Loan Securities & Loan Equity
Investments, with Expected Repayment
|
|
||||||||||||||||||||||||
WBCMT Series 2007 Tranche L - CMBS
|
100 | % | $ | 1,267 | $ | - | $ | - |
to
|
$ | 1,267 | [1 | ] | ||||||||||||
Mentor Building - Whole Loan
|
100 | % | 2,511 | - | 2,511 |
to
|
2,511 | [1 | ] | ||||||||||||||||
Riverside -B Note
|
50 | % | 15,756 | - | 7,878 |
to
|
7,878 | [1 | ] | ||||||||||||||||
2600 West Olive - Rake Bonds
|
100 | % | 6,364 | - | 6,364 |
to
|
6,364 | [1 | ] | ||||||||||||||||
Hotel Wales - Whole Loan
|
100 | % | 20,097 | 14,000 | 6,097 |
to
|
6,097 | [1 | ] | ||||||||||||||||
Legacy Orchard -Corporate Loan
|
100 | % | 9,750 | - | 9,750 |
to
|
9,750 | [1 | ] | ||||||||||||||||
Rennaisance - Mezzanine Loan
|
100 | % | 3,000 | - | 3,000 |
to
|
3,000 | [1 | ] | ||||||||||||||||
San Marbeya - Whole Loan
|
100 | % | 30,337 | 15,150 | 15,187 |
to
|
15,187 | [1 | ] | ||||||||||||||||
Rockwell - Mezzanine Loan
|
100 | % | 1,506 | - | 1,506 |
to
|
1,506 | [1 | ] | ||||||||||||||||
29 East Madison - Mezzanine Loan
|
100 | % | 365 | - | 365 |
to
|
365 | [1 | ] | ||||||||||||||||
500-512 Seventh Ave - B Note
|
100 | % | 11,321 | - | 11,321 |
to
|
11,321 | [1 | ] | ||||||||||||||||
Wellington Tower - Mezzanine Loan
|
100 | % | 3,515 | - | 3,515 |
to
|
3,515 | [1 | ] | ||||||||||||||||
Broward Office Building-Whole Loan
|
100 | % | 30,139 | - | 30,139 |
to
|
30,139 | [1 | ] | ||||||||||||||||
127 West 25th-Mezzanine Loan
|
100 | % | 9,105 | - | 9,105 |
to
|
9,105 | [1 | ] | ||||||||||||||||
30 North Michigan-Mezzanine Loan
|
100 | % | 6,606 | 6,606 |
to
|
6,606 | [1 | ] | |||||||||||||||||
Churchill-Whole Loan
|
100 | % | 326 | - | 326 |
to
|
326 | [1 | ] | ||||||||||||||||
4545 East Shea Blvd-Whole Loan
|
100 | % | 2,250 | - | 2,250 |
to
|
2,250 | [1 | ] | ||||||||||||||||
Total Estimated Value of Loans with Expected Repayment
|
115,919 |
to
|
117,186 | ||||||||||||||||||||||
Loan Assets, Loan Securities & Loan Equity
Investments, with Potential Equity Participation
|
|
||||||||||||||||||||||||
So-Cal Office - C Note
|
50 | % | 118,126 | 40,000 | 39,219 |
to
|
39,219 | [2 | ] | ||||||||||||||||
Stamford Office - Mezzanine
|
20 | % | 47,078 | - | 9,416 |
to
|
9,416 | [2 | ] | ||||||||||||||||
MetroTech Brooklyn-B Note
|
33 | % | 21,111 | - | - |
to
|
75 | [2 | ] | ||||||||||||||||
Total Estimated Value of Loans with Potential Equity
|
48,635 |
to
|
48,710 | ||||||||||||||||||||||
Debt Platforms
|
|||||||||||||||||||||||||
Conord Debt Holdings/CDH CDO
|
67 | % | N/A | N/A | 14,000 |
to
|
18,000 | [3 | ] | ||||||||||||||||
RE CDO
|
50 | % | N/A | N/A | 1,794 |
to
|
1,794 | [4 | ] | ||||||||||||||||
Total Estimated Value of Debt Platforms
|
15,794 |
to
|
19,794 | ||||||||||||||||||||||
Subtotal - Loan Segment Estimated Net Asset Value Range
|
180,348 |
to
|
185,690 | ||||||||||||||||||||||
Please refer to Estimated Net Asset Value notes on page 10.
|
(Continued on next page)
7
WINTHROP REALTY TRUST
ESTIMATED NET ASSET VALUE Continued
(In thousands, except per share data) (Unaudited)
Description
|
Trust Owner-ship
|
Type
|
Square Feet/ Units
|
Six Mos Ended
June 30,
2012 NOI
Annualized
|
Adjust-
ments
|
Adjusted
Annualized NOI [15]
|
Range of Capitalization Rates
|
Estimated Range of Property Value
|
Matched Debt Balance
|
Estimated NAV Range
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Properties
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deer Valley, AZ
|
100 | % |
Office
|
82,000 | $ | 1,413 | $ | 247 | [5 | ] | $ | 1,660 | 8.74 | % |
to
|
8.30 | % | $ | 19,000 |
to
|
$ | 20,000 | $ | - | $ | 19,000 |
to
|
$ | 20,000 | [12 | ] | |||||||||||||||||||||||||||||
Englewood, CO
(Crossroads I)
|
100 | % |
Office
|
118,000 | 342 | 924 | [6 | ] | 1,266 | 8.50 | % |
to
|
7.50 | % | 10,510 |
to
|
12,116 | - | 10,510 |
to
|
12,116 | |||||||||||||||||||||||||||||||||||||||
Englewood, CO
(Crossroads II)
|
100 | % |
Office
|
118,000 | 514 | 417 | [6 | ] | 931 | 8.50 | % |
to
|
7.50 | % | 10,643 |
to
|
12,103 | - | 10,643 |
to
|
12,103 | |||||||||||||||||||||||||||||||||||||||
Meriden, CT
(Newbury Apartments)
|
100 | % |
Multi-Family
|
180 Units
|
1,784 | 1,784 | 6.50 | % |
to
|
6.00 | % | 27,444 |
to
|
29,731 | 13,590 | 13,854 |
to
|
16,141 | ||||||||||||||||||||||||||||||||||||||||||
Atlanta, GA
|
100 | % |
Retail
|
61,000 | 259 | 259 | 9.00 | % |
to
|
8.00 | % | 2,881 |
to
|
3,241 | - | 2,881 |
to
|
3,241 | ||||||||||||||||||||||||||||||||||||||||||
Denton, TX
|
100 | % |
Retail
|
46,000 | 145 | 145 | 10.50 | % |
to
|
8.50 | % | 1,378 |
to
|
1,703 | - | 1,378 |
to
|
1,703 | ||||||||||||||||||||||||||||||||||||||||||
Greensboro, NC
|
100 | % |
Retail
|
46,000 | 220 | 220 | 9.00 | % |
to
|
8.00 | % | 2,448 |
to
|
2,754 | - | 2,448 |
to
|
2,754 | ||||||||||||||||||||||||||||||||||||||||||
Louisville , KY
|
100 | % |
Retail
|
47,000 | 214 | 214 | 11.00 | % |
to
|
10.00 | % | 1,948 |
to
|
2,142 | - | 1,948 |
to
|
2,142 | ||||||||||||||||||||||||||||||||||||||||||
Memphis, TN
|
100 | % |
Retail
|
44,000 | 239 | 239 | 9.00 | % |
to
|
8.00 | % | 2,654 |
to
|
2,986 | - | 2,654 |
to
|
2,986 | ||||||||||||||||||||||||||||||||||||||||||
Seabrook, TX
|
100 | % |
Retail
|
52,000 | 230 | 230 | 9.00 | % |
to
|
8.00 | % | 2,552 |
to
|
2,871 | - | 2,552 |
to
|
2,871 | ||||||||||||||||||||||||||||||||||||||||||
Amherst, NY
|
100 | % |
Office
|
200,000 | 2,411 | 2,411 | [14 | ] |
to
|
8.50 | % | 15,457 |
to
|
28,361 | 15,457 | - |
to
|
12,904 | [14 | ] | ||||||||||||||||||||||||||||||||||||||||
Andover, MA
|
100 | % |
Office
|
93,000 | 957 | 957 | 9.00 | % |
to
|
8.00 | % | 10,635 |
to
|
11,964 | - | 10,635 |
to
|
11,964 | ||||||||||||||||||||||||||||||||||||||||||
Chicago, IL
(One East Erie)
|
100 | % |
Office
|
126,000 | 2,729 | 2,729 | 7.50 | % |
to
|
6.50 | % | 36,386 |
to
|
41,984 | 20,360 | 16,026 |
to
|
21,624 | ||||||||||||||||||||||||||||||||||||||||||
Chicago, IL
(River City )
|
60 | % |
Office
|
253,000 | 2,112 | 2,112 | 8.50 | % |
to
|
7.50 | % | 24,851 |
to
|
28,165 | 8,700 | 9,691 |
to
|
11,679 | ||||||||||||||||||||||||||||||||||||||||||
Houston, TX
(Westheimer)
|
8 | % |
Office
|
614,000 | 7,879 | 7,879 | 7.00 | % |
to
|
6.00 | % | 112,560 |
to
|
131,320 | 54,301 | 4,661 |
to
|
6,162 | ||||||||||||||||||||||||||||||||||||||||||
Indianapolis, IN
(Circle Tower)
|
100 | % |
Office
|
111,000 | 618 | 618 | 11.00 | % |
to
|
10.00 | % | 5,622 |
to
|
6,184 | 4,129 | 1,493 |
to
|
2,055 | [12 | ] | ||||||||||||||||||||||||||||||||||||||||
Lisle, IL
(550 Corporetum)
|
100 | % |
Office
|
169,000 | 707 | 615 | [6 | ] | 1,323 | 9.50 | % |
to
|
8.50 | % | 12,504 |
to
|
14,142 | 5,753 | 6,751 |
to
|
8,389 | |||||||||||||||||||||||||||||||||||||||
Lisle, IL
(Arboretum)
|
100 | % |
Office
|
67,000 | (279 | ) | 884 | [6 | ] | 605 | 11.00 | % |
to
|
9.00 | % | 3,521 |
to
|
4,759 | 1,658 | 1,863 |
to
|
3,101 | ||||||||||||||||||||||||||||||||||||||
Lisle, IL
(1050 Corporetum)
|
60 | % |
Office
|
54,000 | 471 | 471 | 9.00 | % |
to
|
8.00 | % | 5,234 |
to
|
5,888 | 5,577 | - |
to
|
311 | ||||||||||||||||||||||||||||||||||||||||||
New York, NY
|
var
|
Office /Retail
|
105,000 | 1,249 | 4,604 | [7 | ] | 5,853 | 6.50 | % |
to
|
6.00 | % | 90,046 |
to
|
97,550 | 51,636 | 20,127 |
to
|
22,753 | [7 | ] | ||||||||||||||||||||||||||||||||||||||
Orlando, FL
|
100 | % |
Office
|
257,000 | 3,313 | 3,313 | 9.50 | % |
to
|
8.50 | % | 34,876 |
to
|
38,979 | 37,860 | 2,064 |
to
|
2,064 | [8 | ] | ||||||||||||||||||||||||||||||||||||||||
Plantation, FL
|
100 | % |
Office
|
120,000 | 1,448 | 1,448 | 9.50 | % |
to
|
8.50 | % | 15,237 |
to
|
17,030 | 10,870 | 4,367 |
to
|
6,160 | ||||||||||||||||||||||||||||||||||||||||||
South Burlington, VT
|
100 | % |
Office
|
54,000 | 157 | 157 | 11.00 | % |
to
|
9.00 | % | 1,425 |
to
|
1,741 | - | 1,425 |
to
|
1,741 | ||||||||||||||||||||||||||||||||||||||||||
Jacksonville, FL
|
100 | % |
Warehouse
|
580,000 | 824 | 824 | 10.00 | % |
to
|
8.00 | % | 8,245 |
to
|
10,306 | - | 8,245 |
to
|
10,306 | ||||||||||||||||||||||||||||||||||||||||||
Churchill, PA
(Westinghouse )
|
100 | % |
Mixed Use
|
52,000 | (337 | ) | 1,087 | [5 | ] | 750 | 12.00 | % |
to
|
9.00 | % | 6,250 |
to
|
8,333 | - | 6,250 |
to
|
7,667 | ||||||||||||||||||||||||||||||||||||||
Memphis, TN
(Waterford Apartments)
|
100 | % |
Multi-Family
|
320 Units
|
745 | 575 | [9 | ] | 1,320 | 6.25 | % |
to
|
6.00 | % | 21,120 |
to
|
22,000 | - | 21,120 |
to
|
22,000 | |||||||||||||||||||||||||||||||||||||||
Please refer to Estimated Net Asset Value notes on page 10 .
|
(Continued on next page)
8
WINTHROP REALTY TRUST
ESTIMATED NET ASSET VALUE Continued
(In thousands, except per share data) (Unaudited)
Description
|
Trust Owner-ship
|
Type
|
Square Feet/ Units
|
Six Mos Ended
June 30,
2012 NOI
Annualized
|
Adjust-
ments
|
Adjusted
Annualized NOI [15]
|
Range of Capitalization Rates
|
Estimated Range of Property Value
|
Matched Debt Balance
|
Estimated NAV Range
|
|||||||||||||||||||||||||||||||||||||||||||||
Operating Properties (continued)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marc Realty
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
223 West Jackson, Chicago, IL
|
50 | % |
Office
|
168,000 | 1,076 | 700 | [6 | ] | 1,776 | 8.50 | % |
to
|
7.50 | % | 18,898 |
to
|
21,685 | 7,126 | 5,886 |
to
|
7,279 | ||||||||||||||||||||||||||||||||||
4415 West Harrison, Hillside, IL
|
50 | % |
Office
|
192,000 | 589 | 589 | 9.50 | % |
to
|
8.50 | % | 6,197 |
to
|
6,927 | 4,471 | 863 |
to
|
1,228 | |||||||||||||||||||||||||||||||||||||
1701 E. Woodfield, Shaumburg, IL
|
50 | % |
Office
|
175,000 | 1,378 | 1,378 | 9.50 | % |
to
|
8.50 | % | 14,501 |
to
|
16,207 | 5,569 | 4,466 |
to
|
5,319 | |||||||||||||||||||||||||||||||||||||
2205-55 Enterprise,Westchester, IL
|
50 | % |
Office
|
130,000 | 1,307 | 1,307 | 9.50 | % |
to
|
8.50 | % | 13,755 |
to
|
15,373 | 9,147 | 2,304 |
to
|
3,113 | |||||||||||||||||||||||||||||||||||||
180 North Michigan, Chicago, IL
|
70 | % |
Office
|
229,000 | 3,214 | (800 | ) | [13 | ] | 2,414 | 8.50 | % |
to
|
7.50 | % | 28,394 |
to
|
32,180 | 17,347 | 7,733 |
to
|
10,383 | |||||||||||||||||||||||||||||||||
Sealy Venture
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Atlanta, GA (Northwest)
|
60 | % |
Industrial/
Office
|
472,000 | 1,788 | 1,788 | 9.00 | % |
to
|
8.00 | % | 19,868 |
to
|
22,352 | 13,880 | 3,593 |
to
|
5,083 | |||||||||||||||||||||||||||||||||||||
Atlanta, GA (Newmarket)
|
68 | % |
Industrial/
Office
|
470,000 | 1,548 | 1,548 | 9.00 | % |
to
|
8.00 | % | 17,205 |
to
|
19,356 | 37,000 | - |
to
|
- | |||||||||||||||||||||||||||||||||||||
Nashville, TN (Airpark)
|
50 | % |
Industrial/Office
|
1,155,000 | 6,079 | 6,079 | 9.00 | % |
to
|
8.00 | % | 67,549 |
to
|
75,993 | 74,000 | - |
to
|
997 | |||||||||||||||||||||||||||||||||||||
WRT-Elad / One South State
|
50 | % |
Retail/Office
|
942,000 | 12,329 | 12,329 | 7.50 | % |
to
|
6.50 | % | 164,387 |
to
|
189,677 | 100,000 | 29,238 |
to
|
37,458 | [10] | ||||||||||||||||||||||||||||||||||||
Mentor Retail
|
50 | % |
Retail
|
6,571 | 138 | 278 | [9 | ] | 416 | 8.00 | % |
to
|
7.00 | % | 5,200 |
to
|
5,943 | 2,500 | 1,347 |
to
|
1,718 | ||||||||||||||||||||||||||||||||||
Vintage
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
27 Properties
|
75 | % |
Multifamily
|
4,655 | 24,602 | 24,602 | 7.50 | % | 7.50 | % | 328,027 |
to
|
328,027 | 247,504 | 50,425 |
to
|
60,989 | [11] | |||||||||||||||||||||||||||||||||||||
Tacoma Preferred Equity
|
75 | % |
Multifamily
|
Under Construction
|
1,500 |
to
|
1,500 | ||||||||||||||||||||||||||||||||||||||||||||||||
Urban Center Preferred Equity
|
75 | % |
Multifamily
|
Under Construction
|
5,500 |
to
|
5,500 | ||||||||||||||||||||||||||||||||||||||||||||||||
Subtotal Operating Properties SegmentEstimated Value Range | 295,441 |
to
|
367,503 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
All Segments Estimated Net Asset Value Range | 542,436 |
to
|
619,840 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Line of Credit | - |
to
|
- | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Outsanding Series D Preferred | (120,500 | ) |
to
|
(120,500 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net Asset Value Attributable to Common Shares | $ | 421,936 | $ | 499,340 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Outstaning Common Shares | 33,066 |
to
|
33,066 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimate Net Asset Value per Common Share Range | $ | 12.76 |
to
|
$ | 15.10 |
Please refer to Estimated Net Asset Value notes on page 10.
9
WINTHROP REALTY TRUST
NOTES TO ESTIMATED NET ASSET VALUE
(Unaudited)
Management’s estimate of net asset value (“NAV”) is based on in place assets and liabilities as of June 30, 2012. No adjustments have been made for transaction costs that would be incurred if assets were sold including any prepayment penalty associated with the Trust’s debt. There have been no adjustments made to reflect acquisitions, dispositions or loan repayments subsequent to June 30, 2012.
[1] Management’s estimate of NAV on the Trust’s loans expected to be repaid gives no effect to the above or below market yield earned on certain of the loans. Except for WBCMT, for which full recovery may not be realized, par is utilized as the estimate of value.
[2] Management’s estimate of NAV on the Trust’s loans with potential equity participation gives no effect to the potential value of any equity participation. Par is utilized as the estimate of value.
[3] Management’s low estimate of value for the Concord Debt Holdings/CDH CDO investment is based upon the purchase price recently paid by the Trust for its purchase of Lexington Realty Trust’s 33.33% interest in these ventures, which gave no value to certain of the loans held by the platform. Management’s high end range of estimate is based on low end value plus recovery on certain of the assets valued at $0.
[4] Management based its estimate on the carrying value of the collateral manager and equity of Sorin CDO IV and Sorin CDO III. No value has been given for potential investment opportunities.
[5] Reflects adjustment made for leases in place which rents are not included in prior quarter’s reported earnings due to either the timing of commencement or rent abatement.
[6] Properties are currently in the process of leasing. Accordingly, management estimated the range of property values by applying the range of capitalization rates to an estimated stabilized NOI and then deducted from the property value the estimated costs to achieve the projected stabilized NOI.
[7] Management’s estimated NAV is calculated based on a sale of the property at a range of values using capitalization rates between 6.0% and 6.5% applied to stabilized NOI. The proceeds are then assumed to be distributed based upon the distribution provision of the 450 West 14th Street LLC Agreement which provides that cash is distributed as follows on the Trust’s capital contribution of $15.0 million and other equity holders’ capital of $3.0 million:
|
1)
|
to the Trust until it receives an amount equal to a 10% return;
|
|
2)
|
75% to the Trust , 25% to other equity holders until the Trust has received a 15% cumulative annual compounded return on its aggregate investment amount;
|
|
3)
|
90% to the Trust, 10% to other equity holders until the Trust has received a return of its aggregate investment amount;
|
|
4)
|
10% to the Trust, 90% to other equity holders until other equity holders have received a return of any new investment amount and a 15% IRR thereon;
|
|
5)
|
either (x) on or prior to the fifth anniversary of the Trust’s investment, 50% to the Trust and 50% to the other equity holders or (y) following the fifth anniversary of the Trust’s investment, 35% to the Trust and 65% to the other equity holders. Management assumed the 35% for this analysis.
|
[8] This property currently generates cash flow to the Trust of $500,000 annually, which is expected to continue through 2017. In view of the inability to determine a residual value at the end of the primary term, Management has assumed there is no residual value and as such the value is based on primary term cash flows discounted at 10.00%
[9] Waterford Apartments and the Mentor Equity investment are second quarter acquisitions. The NOI adjustment reflects in place annual budgeted NOI.
[10] Management’s estimate of NAV is calculated based on the post-tax credit compliance period residual distribution provisions set forth in One South State Street LLC agreement which provide for payment of the WRT-Elad mezzanine loan under its terms and then 65% profits participation by WRT-Elad. The range of capitalization rates reflects a range applicable to the retail portion of the property of 6.0%-7.0% and a range applicable to the office portion of 7.0%-8.0%. The capitalization rates are applied to an in place NOI of $6.0 million attributable to the retail space and $6.35 million attributable to the office space.
[11] Each of the Vintage properties is owned in a partnership which includes outside investors and is subject to its individual partnership agreement Waterfall. The VHH Operating Agreement provides that aggregate properties operating cash flow to VHH is distributed as follows:
|
1)
|
to the Trust until it receives a 12% preferred return on its unreturned capital;
|
|
2)
|
to the Trust’s joint venture partner until he receives at 12% return;
|
|
3)
|
the remainder is distributed 50% to the Trust and 50% to the Trust’s partner.
|
The Trust received $2.706 million in distributions of operating cash flow during the 6 months ended June 30, 2012, which is equal to $5.4 million on an annualized basis.
Capital proceeds from the sale or refinancing of any of the underlying properties are distributed 75% to the Trust and 25% to our joint venture partner until all capital is returned and unpaid returns are paid and any excess after the return of capital is distributed 50%/50%.
Management estimated the range of NAV based on the forecasted distributions to be received on this investment discounted at a range between 9% and 12%. Forecasted residual proceeds were calculated based on sales of the underlying properties using a capitalization rate of 7.5%.
[12] Property value is based on recent marketing efforts.
[13] NOI reported on 180 North Michigan for the six months ended June 30, 2012 included revenue attributable to a lease termination fee of $400,000. Accordingly, the annualized NOI was adjusted down to exclude this nonrecurring revenue.
[14] This property is net leased to Ingram Micro under a lease which expires in October 2013. Management is currently negotiating a renewal of this lease, but there has been no agreement reached. Until a lease renewal is negotiated or the building is leased to a new tenant, we will consider the low end of the value to be equal to the debt.
[15] Net operating income is a non-GAAP measure equal to revenues from all rental property less operating expenses and real estate taxes, exclusive of depreciation, amortization and capital expenditures.
10
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, Unaudited)
Six Months Ended
June 30,
|
||||||||
2012
|
2011
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Cash flows from operating activities
|
||||||||
Net income
|
$ | 10,237 | $ | 11,459 | ||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation and amortization (including amortization of
|
||||||||
of deferred financing costs)
|
5,460 | 4,629 | ||||||
Amortization of lease intangibles
|
2,884 | 2,337 | ||||||
Straight-lining of rental income
|
(2,476 | ) | (709 | ) | ||||
Loan discount accretion
|
(5,559 | ) | (8,793 | ) | ||||
Discount accretion received in cash
|
14,065 | 8,540 | ||||||
Earnings of preferred equity investments
|
- | (241 | ) | |||||
Distributions of income from preferred equity investments
|
- | 60 | ||||||
Income of equity investments
|
(1,010 | ) | (1,520 | ) | ||||
Distributions of income from equity investments
|
4,885 | 3,813 | ||||||
Restricted cash held in escrows
|
(2,312 | ) | 1,359 | |||||
Gain on sale of equity investment
|
(232 | ) | - | |||||
Gain on sale of securities carried at fair value
|
(41 | ) | (131 | ) | ||||
Unrealized gain on securities carried at fair value
|
(4,141 | ) | (163 | ) | ||||
Unrealized gain on loan securities carried at fair value
|
(76 | ) | (2,847 | ) | ||||
Tenant leasing costs
|
(683 | ) | (581 | ) | ||||
Bad debt (recovery) expense
|
(242 | ) | 191 | |||||
Net change in interest receivable
|
(135 | ) | (161 | ) | ||||
Net change in accounts receivable
|
(418 | ) | (1,131 | ) | ||||
Net change in accounts payable and accrued liabilities
|
2,303 | 1,068 | ||||||
Net cash provided by operating activities
|
22,509 | 17,179 | ||||||
Cash flows from investing activities
|
||||||||
Investments in real estate
|
(28,882 | ) | (4,139 | ) | ||||
Investment in equity investments
|
(33,546 | ) | (59,562 | ) | ||||
Investment in preferred equity investments
|
(4,000 | ) | (3,942 | ) | ||||
Proceeds from sale of investments in real estate
|
632 | - | ||||||
Proceeds from sale of equity investments
|
2,297 | 6,000 | ||||||
Return of capital distribution from equity investments
|
38,100 | 26,130 | ||||||
Purchase of securities carried at fair value
|
(5,655 | ) | (568 | ) | ||||
Proceeds from sale of securities carried at fair value
|
4,614 | 26,281 | ||||||
Proceeds from payoff of loan securities
|
- | 8,748 | ||||||
Restricted cash held in escrows
|
(4,431 | ) | (1,417 | ) | ||||
Issuance and acquisition of loans receivable
|
(44,096 | ) | (44,161 | ) | ||||
Collection of loans receivable
|
29,798 | 12,717 | ||||||
Net cash used in investing activities
|
(45,169 | ) | (33,913 | ) |
(Continued on next page)
11
WINTHROP REALTY TRUST
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands, Unaudited, continued)
Six Months Ended
June 30,
|
||||||||
2012
|
2011
|
|||||||
(unaudited)
|
(unaudited)
|
|||||||
Cash flows from financing activities
|
||||||||
Proceeds from mortgage loans payable
|
2,051 | 11,000 | ||||||
Principal payments of mortgage loans payable
|
(3,100 | ) | (30,692 | ) | ||||
Proceeds from revolving line of credit
|
- | 27,324 | ||||||
Proceeds from issuance of Series D Preferred Shares
|
77,715 | - | ||||||
Payment of revolving line of credit
|
(40,000 | ) | (52,774 | ) | ||||
Proceeds from note payable
|
- | 15,150 | ||||||
Restricted cash held in escrows
|
(21 | ) | (501 | ) | ||||
Deferred financing costs
|
(99 | ) | (612 | ) | ||||
Contribution from non-controlling interest
|
3,975 | 277 | ||||||
Distribution to non-controlling interest
|
(270 | ) | (194 | ) | ||||
Purchase of non-controlling interests
|
(400 | ) | - | |||||
Issuance of Common Shares through offering
|
- | 61,386 | ||||||
Issuance of Common Shares under Dividend Reinvestment Plan
|
268 | 1,368 | ||||||
Dividend paid on Common Shares
|
(10,740 | ) | (8,794 | ) | ||||
Dividend paid on Series D Preferred Shares
|
(3,712 | ) | - | |||||
Dividend paid on Series C Preferred Shares
|
- | (117 | ) | |||||
Net cash provided by financing activities
|
25,667 | 22,821 | ||||||
Net increase in cash and cash equivalents
|
3,007 | 6,087 | ||||||
Cash and cash equivalents at beginning of period
|
40,952 | 45,257 | ||||||
Cash and cash equivalents at end of period
|
$ | 43,959 | $ | 51,344 | ||||
Supplemental Disclosure of Cash Flow Information
|
||||||||
Interest paid
|
$ | 7,072 | $ | 8,865 | ||||
Taxes paid
|
$ | 242 | $ | 47 | ||||
Supplemental Disclosure on Non-Cash Investing and
|
||||||||
Financing Activities
|
||||||||
Dividends accrued on Common Shares
|
$ | 5,373 | $ | 5,346 | ||||
Dividends accrued on Series C Preferred Shares
|
$ | - | $ | 39 | ||||
Capital expenditures accrued
|
$ | 1,474 | $ | 172 | ||||
Other receivables
|
$ | - | $ | - | ||||
Transfer to loan securities carried at fair value
|
$ | - | $ | 662 | ||||
Transfer from loans receivable
|
$ | (2,938 | ) | $ | (11,184 | ) | ||
Transfer from preferred equity
|
$ | (3,923 | ) | $ | (2,022 | ) | ||
Transfer to equity investment
|
$ | 6,861 | $ | 12,544 | ||||
Transfer to loan receivable
|
$ | 6,550 | $ | - | ||||
Transfer from equity investment
|
$ | (12,400 | ) | $ | - | |||
Transfer to additional paid-in capital
|
$ | 5,487 | $ | - | ||||
Transfer to non-controlling interests
|
$ | 363 | $ | - |
12
WINTHROP REALTY TRUST
SELECTED BALANCE SHEET ACCOUNT DETAIL
(In thousands, Unaudited)
June 30,
2012
|
March 31,
2012
|
Dec 31,
2011
|
Sept 30,
2011
|
June 30,
2011
|
||||||||||||||||
Investments in Real Estate
|
||||||||||||||||||||
Land
|
$ | 39,575 | $ | 36,495 | $ | 36,495 | $ | 36,495 | $ | 36,495 | ||||||||||
Buildings and improvements
|
||||||||||||||||||||
Buildings
|
313,398 | 297,112 | 297,223 | 249,789 | 251,632 | |||||||||||||||
Building improvements
|
20,012 | 14,830 | 13,679 | 11,435 | 12,824 | |||||||||||||||
Furniture and Fixtures
|
2,176 | 1,857 | 1,849 | 1,842 | 827 | |||||||||||||||
Tenant improvements
|
14,657 | 14,757 | 14,586 | 10,052 | 8,681 | |||||||||||||||
389,818 | 365,051 | 363,832 | 309,613 | 310,459 | ||||||||||||||||
Accumulated depreciation and amortization
|
(49,818 | ) | (47,071 | ) | (44,556 | ) | (42,262 | ) | (40,168 | ) | ||||||||||
Total Investments in Real Estate
|
$ | 340,000 | $ | 317,980 | $ | 319,276 | $ | 267,351 | $ | 270,291 | ||||||||||
|
||||||||||||||||||||
Accounts Receivable
|
||||||||||||||||||||
Straight-line rent receivable
|
$ | 13,281 | $ | 12,251 | $ | 10,805 | $ | 9,666 | $ | 9,438 | ||||||||||
Other
|
5,980 | 5,914 | 5,335 | 2,714 | 4,672 | |||||||||||||||
Total Accounts Receivable
|
$ | 19,261 | $ | 18,165 | $ | 16,140 | $ | 12,380 | $ | 14,110 | ||||||||||
Securities Carried at Fair Value
|
||||||||||||||||||||
REIT Preferred Shares
|
$ | - | $ | - | $ | 4,277 | $ | 4,222 | $ | 4,333 | ||||||||||
REIT Common Shares
|
34,079 | 33,700 | 24,579 | 2,430 | 3,280 | |||||||||||||||
Total Securities Carried at Fair Value
|
$ | 34,079 | $ | 33,700 | $ | 28,856 | $ | 6,652 | $ | 7,613 | ||||||||||
Equity Investments
|
||||||||||||||||||||
So-Cal Office Loan Portfolio (31 Loans)
|
$ | 33,888 | $ | 34,181 | $ | 72,626 | $ | - | $ | - | ||||||||||
Vintage Housing Holdings (27 Properties)
|
30,144 | 28,830 | 29,887 | 30,513 | 25,452 | |||||||||||||||
Elad / One South State Street (1 Property)
|
24,716 | 24,743 | 10,150 | - | - | |||||||||||||||
Marc Realty Portfolio (5 Properties)
|
21,768 | 34,227 | 27,145 | 43,419 | 43,735 | |||||||||||||||
Sealy Ventures Properties (3 Properties)
|
9,717 | 10,570 | 11,348 | 14,382 | 10,798 | |||||||||||||||
Mack-Cali / Stamford (Office Loan)
|
8,236 | 8,097 | ||||||||||||||||||
Riverside Plaza (Retail Loan)
|
7,883 | 7,883 | 7,883 | 7,883 | 7,883 | |||||||||||||||
Concord Debt Holdings
|
4,529 | - | - | - | - | |||||||||||||||
CDH CDO
|
2,978 | - | - | - | - | |||||||||||||||
RE-CDO Management
|
1,794 | 1,812 | 1,296 | 1,273 | 1,250 | |||||||||||||||
Mentor Retail (1 Property)
|
511 | |||||||||||||||||||
10 Metrotech (Office Loan)
|
56 | - | - | - | - | |||||||||||||||
Lakeside/Eagle
|
1 | 5 | 7 | 9 | 9 | |||||||||||||||
FII Co-Invest
|
- | 1,800 | 1,800 | 1,800 | - | |||||||||||||||
LW SOFI (Sofitel Hotel Loan)
|
- | - | - | 6,877 | 6,022 | |||||||||||||||
Total Equity Investments
|
$ | 146,221 | $ | 152,148 | $ | 162,142 | $ | 99,279 | $ | 89,127 | ||||||||||
Preferred Equity Investments
|
||||||||||||||||||||
Vintage at Tacoma
|
$ | 1,500 | $ | 1,500 | $ | 1,500 | $ | 1,500 | $ | - | ||||||||||
Vintage at Urban Center
|
4,000 | - | - | - | - | |||||||||||||||
180 North Michigan (Marc Realty)
|
- | - | 4,020 | 3,999 | 4,118 | |||||||||||||||
450 West 14th Street (High Line)
|
- | - | - | 7,903 | 6,037 | |||||||||||||||
Total Preferred Equity Investments
|
$ | 5,500 | $ | 1,500 | $ | 5,520 | $ | 13,402 | $ | 10,155 | ||||||||||
Non-Controlling Interests
|
||||||||||||||||||||
Westheimer (Houston, TX)
|
$ | 11,673 | $ | 11,316 | $ | 10,973 | $ | 10,648 | $ | 10,340 | ||||||||||
River City / Marc Realty (Chicago, IL)
|
3,484 | 3,404 | 3,346 | 3,411 | 3,442 | |||||||||||||||
One East Erie/ Marc Realty (Chicago, IL)
|
480 | 504 | 461 | 503 | ||||||||||||||||
1050 Corporetum / Marc Realty (Lisle, IL)
|
110 | 134 | 171 | 215 | 253 | |||||||||||||||
Deer Valley / Fenway (Deer Valley, AZ)
|
- | - | 189 | 165 | 154 | |||||||||||||||
450 West 14th Street (High Line)
|
3,075 | 3,725 | 4,847 | - | - | |||||||||||||||
So-Cal Office Loan Portfolio
|
4,468 | 999 | 1,004 | - | - | |||||||||||||||
Total Non-Controlling Interests
|
$ | 22,810 | $ | 20,058 | $ | 21,034 | $ | 14,900 | $ | 14,692 | ||||||||||
The listing above provides detail for only certain balance sheet line items presented on Winthrop Realty Trust's Consolidated Balance Sheets for all periods presented (the "Balance Sheet"). See page 1 of this supplement for all Balance Sheet line items.
|
13
WINTHROP REALTY TRUST
SCHEDULE OF CAPITALIZATION, DIVIDENDS AND LIQUIDITY
(In thousands, except for per share data, Unaudited)
June 30,
2012
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
June 30,
2011
|
||||||||||||||||
Debt
|
||||||||||||||||||||
Mortgage loans payable
|
$ | 229,891 | $ | 230,257 | $ | 230,940 | $ | 185,622 | $ | 210,751 | ||||||||||
Series B-1 Preferred Shares
|
- | - | - | 21,300 | 21,300 | |||||||||||||||
KeyBank line of credit
|
- | - | 40,000 | - | - | |||||||||||||||
Secured financing
|
29,150 | 29,150 | 29,150 | 15,150 | 15,150 | |||||||||||||||
Total Debt
|
259,041 | 259,407 | 300,090 | 222,072 | 247,201 | |||||||||||||||
Preferred Shares
|
||||||||||||||||||||
Series C Cumulative Convertible Redeemable Preferred Shares
|
- | - | - | 3,221 | 3,221 | |||||||||||||||
Equity
|
||||||||||||||||||||
Series D Cumulative Redeemable
Preferred Shares
|
120,500 | 120,500 | 40,000 | - | - | |||||||||||||||
Common Shares
|
336,688 | 346,924 | 347,802 | 364,776 | 359,649 | |||||||||||||||
Non-controlling ownership interests
|
22,810 | 20,058 | 21,034 | 14,900 | 14,692 | |||||||||||||||
Total Equity
|
479,998 | 487,482 | 408,836 | 379,676 | 374,341 | |||||||||||||||
Total Capitalization
|
$ | 739,039 | $ | 746,889 | $ | 708,926 | $ | 604,969 | $ | 624,763 |
Common Dividend Per Share
|
||||||||||||||||||||
June 30,
2012
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
June 30,
2011
|
||||||||||||||||
$ | 0.1625 | $ | 0.1625 | $ | 0.1625 | $ | 0.1625 | $ | 0.1625 | |||||||||||
Liquidity and Credit Facility
|
||||||||||||||||||||
June 30,
2012
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
June 30,
2011
|
||||||||||||||||
Cash and cash equivalents
|
$ | 43,959 | $ | 79,526 | $ | 40,952 | $ | 66,777 | $ | 51,344 | ||||||||||
Securities carried at fair value
|
34,079 | 33,700 | 28,856 | 6,652 | 7,613 | |||||||||||||||
Available under line of credit
|
50,000 | 50,000 | 10,000 | 50,000 | 50,000 | |||||||||||||||
Total Liquidity and Credit Facility
|
$ | 128,038 | $ | 163,226 | $ | 79,808 | $ | 123,429 | $ | 108,957 |
14
WINTHROP REALTY TRUST
SELECTED INVESTMENT DATA
June 30, 2012
(In thousands, except square footage / units, Unaudited)
The following pages of investment data are presented to provide additional information relating to management’s expectations on selected assets within its business segments. For more detail on these assets within this Supplement please reference Schedule of Loan Assets on pages 19-20, Consolidated Property Data on pages 23-24, and Equity Investment Property Data on pages 25-27.
Cash
|
Amount
|
||||
Cash and cash equivalents
|
$ | 43,959 | |||
REIT Securities
|
Cost
|
Fair Value
|
|||
REIT Common shares
|
$ | 26,775 |
$ 34,079
|
Loan Assets, Loan Securities & Loan Equity
Investments, with Expected Repayment
|
Type
|
Stated Interest
Rate
|
Cost, less Principal Repaid
|
Carrying Amount (before accrued interest)
|
Par Value
|
Extended Maturity Date
|
|||||||||||||||||
Broward Financial Ctr - Whole Loan
|
Office /Retail
|
9.84 | % | 30,000 | 30,000 | 30,000 |
10/15/12
|
||||||||||||||||
Riverside -B Note - 50 % Owned Equity Inv*
|
Retail
|
12.00 | % | 15,600 | 15,600 | 15,600 |
12/01/12
|
||||||||||||||||
2600 West Olive - Rake Bonds
|
Office
|
Libor+0.65% to 1.60
|
% | 1,500 | 5,374 | 6,364 |
02/28/13
|
||||||||||||||||
Hotel Wales - Whole Loan
|
Hotel
|
Libor + 4
|
% | 20,000 | 20,000 | 20,000 |
10/05/13
|
||||||||||||||||
WBCMT Series 2007 Tranche L - CMBS
|
Hotel
|
Libor + 1.75
|
% | 161 | 11 | 1,267 |
03/09/14
|
||||||||||||||||
Legacy Orchard -Corporate Loan
|
Corporate Loan
|
15.00 | % | 9,750 | 9,750 | 9,750 | (1 | ) |
10/31/14
|
||||||||||||||
Rennaisance - Mezzanine Loan
|
Retail / Multifamily
|
Libor + 12
|
% | 3,000 | 3,000 | 3,000 |
01/01/15
|
||||||||||||||||
San Marbeya - Whole Loan
|
Multifamily
|
5.88 | % | 26,073 | 26,668 | 30,189 |
01/01/15
|
||||||||||||||||
Fenway Shea - Whole Loan
|
Office
|
12.00 | % | 2,250 | 2,250 | 2,250 |
04/05/15
|
||||||||||||||||
127 West 25th Street - Mezzanine Loan
|
Mixed Use
|
14.00 | % | 9,000 | 9,000 | 9,000 |
04/30/15
|
||||||||||||||||
Churchill - Whole Loan
|
Mixed Use
|
Libor + 3.75
|
% | 324 | 324 | 324 |
05/31/15
|
||||||||||||||||
30 North Michigan - Mezzanine Loan
|
Office
|
10.00 | % | 6,550 | 6,550 | 6,550 |
06/01/15
|
||||||||||||||||
Rockwell - Mezzanine Loan
|
Industrial
|
12.00 | % | 244 | 279 | 1,491 |
05/01/16
|
||||||||||||||||
29 East Madison - Mezzanine Loan
|
Office
|
8.00 | % | 365 | 365 | 365 |
05/31/16
|
||||||||||||||||
500-512 Seventh Ave - B Note
|
Office
|
7.19 | % | 9,439 | 9,945 | 11,276 |
07/11/16
|
||||||||||||||||
Wellington Tower - Mezzanine Loan
|
Mixed use
|
6.79 | % | 2,351 | 2,609 | 3,501 |
07/11/17
|
||||||||||||||||
Mentor Building - Whole Loan
|
Retail
|
10.00 | % | 2,497 | 2,497 | 2,497 |
09/10/17
|
||||||||||||||||
(1) Amount represents Borrowers Discounted Payoff Option amount.
|
Loan Assets, Loan Securities & Loan Equity
Investments, with Potential Equity Participation
|
Type
|
Stated Interest Rate
|
Cost, less Principal Repaid
|
Carrying Amount (before accrued interest)
|
Par Value
|
Extended
Maturity Date
|
||||||||||||||||
So-Cal Office - C Note - 56% Owned Equity Inv *
|
Office
|
Libor + 3.1
|
% | 96,969 | 96,969 | 100,292 |
08/09/12
|
|||||||||||||||
Stamford Office - Mezzanine - 20% Owned Equity Inv*
|
Office
|
Libor + 3.25
|
% | 40,000 | 41,109 | 47,000 | (1 | ) |
08/06/14
|
|||||||||||||
10 Metrotech - B Participation - 33% Owned Equity Inv*
|
Office
|
Libor + 2.0
|
% | 105 | 105 | 21,000 |
03/09/10
|
* Amounts shown represent 100% of the investment at the venture level.
|
Continued on next page
15
WINTHROP REALTY TRUST
SELECTED INVESTMENT DATA (Continued)
June 30, 2012
(In thousands, except square footage / units, Unaudited)
Consolidated Operating Properties
Acquired through Direct or Indirect Foreclosure
|
%
Owned
|
Type
|
Square Feet/ Units
|
Cost Basis before Accum Depreciation
|
Cost per Square Foot or Unit
|
Debt Balance
|
||||||||||||||||||||
Deer Valley, AZ
|
100 | % |
Office
|
82,000 | $ | 11,764 | $ | 143 | $ | - | (1 | ) | ||||||||||||||
Englewood, CO (Crossroads I)
|
100 | % |
Office
|
118,000 | 8,193 | 69 | - | (1 | ) | |||||||||||||||||
Englewood, CO (Crossroads II)
|
100 | % |
Office
|
118,000 | 10,647 | 90 | - | (1 | ) | |||||||||||||||||
Meriden, CT (Newbury Apartments)
|
100 | % |
Multifamily
|
180 Units
|
25,258 | 140,322 | 13,590 | |||||||||||||||||||
Memphis, TN, (Waterford Apartments)
|
100 | % |
Multifamily
|
320 units
|
20,758 | 64,869 | - |
Consolidated Operating Properties
Acquired through Asset Purchase
|
%
Owned
|
Type
|
Square Feet
|
Cost Basis before Accum Depreciation
|
Cost per Square Foot
|
Debt Balance
|
||||||||||||||||||||
Atlanta, GA
|
100 | % |
Retail
|
61,000 | 4,638 | $ | 76 | $ | - | (1 | ) | |||||||||||||||
Denton, TX
|
100 | % |
Retail
|
46,000 | 2,934 | 64 | - | (1 | ) | |||||||||||||||||
Greensboro, NC
|
100 | % |
Retail
|
46,000 | 3,801 | 83 | - | (1 | ) | |||||||||||||||||
Louisville , KY
|
100 | % |
Retail
|
47,000 | 3,098 | 66 | - | (1 | ) | |||||||||||||||||
Memphis, TN
|
100 | % |
Retail
|
44,000 | 1,397 | 32 | - | (1 | ) | |||||||||||||||||
Seabrook, TX
|
100 | % |
Retail
|
52,000 | 2,012 | 39 | - | (1 | ) | |||||||||||||||||
Amherst, NY
|
100 | % |
Office
|
200,000 | 19,618 | 98 | 15,457 | |||||||||||||||||||
Andover, MA
|
100 | % |
Office
|
93,000 | 8,329 | 90 | - | (1 | ) | |||||||||||||||||
Chicago, IL (One East Erie / Marc Realty)
|
80 | % |
Office
|
126,000 | 25,631 | 203 | 20,360 | |||||||||||||||||||
Chicago, IL (River City / Marc Realty )
|
60 | % |
Office
|
253,000 | 16,375 | 65 | 8,700 | |||||||||||||||||||
Houston, TX (Westheimer)
|
8 | % |
Office
|
614,000 | 69,543 | 113 | 54,301 | |||||||||||||||||||
Indianapolis, IN (Circle Tower)
|
100 | % |
Office
|
111,000 | 8,628 | 78 | 4,129 | |||||||||||||||||||
Lisle, IL (550 Corporetum)
|
100 | % |
Office
|
169,000 | 21,629 | 128 | 5,753 | |||||||||||||||||||
Lisle, IL (Arboretum)
|
100 | % |
Office
|
67,000 | 6,230 | 93 | 1,657 | |||||||||||||||||||
Lisle, IL (1050 Corporetum / Marc Realty)
|
60 | % |
Office
|
54,000 | 4,046 | 75 | 5,577 | |||||||||||||||||||
New York, NY
|
var
|
Office / Retail
|
105,000 | 59,881 | 570 | 51,636 | ||||||||||||||||||||
Orlando, FL
|
100 | % |
Office
|
257,000 | 17,290 | 67 | 37,861 | |||||||||||||||||||
Plantation, FL
|
100 | % |
Office
|
120,000 | 12,935 | 108 | 10,870 | |||||||||||||||||||
South Burlington, VT
|
100 | % |
Office
|
54,000 | 3,407 | 63 | - | (1 | ) | |||||||||||||||||
Jacksonville, FL
|
100 | % |
Warehouse
|
580,000 | 12,344 | 21 | - | (1 | ) | |||||||||||||||||
Churchill, PA
|
100 | % |
Mixed Use
|
52,000 | 9,431 | 181 | - | |||||||||||||||||||
(1) These properties collateralize our revolving line of credit.
|
16
WINTHROP REALTY TRUST
SELECTED INVESTMENT DATA (Continued)
June 30, 2012
(In thousands, except square footage / units, Unaudited)
Equity Investment Operating Properties
Acquired through Asset Purchase
|
%
Owned
|
Type
|
Square Feet/ Units
|
Equity Investment
Carrying Amount
|
||||||||||
Marc Realty (5 Equity Investments)
|
Var
|
Office
|
894,000 | $ | 21,768 | |||||||||
Sealy Equity Investments (3 Equity Investments)
|
Var
|
Industrial/Office
|
2,097,000 | 9,717 | ||||||||||
WRT-Elad / One South State St (1 Equity Investment)
|
50 | % |
Retail / Office
|
942,000 | 24,716 | |||||||||
Vintage Housing Holdings
|
Var
|
Multifamily
|
4,655 Units
|
30,144 | ||||||||||
Mentor Retail LLC (1 Equity Investment)
|
50 | % |
Retail
|
7,000 | 511 | |||||||||
Preferred Equity Investment Operating Properties Acquired through Asset Purchase
|
%
Owned
|
Type
|
Residential Units
|
Preferred Equity
Investment
Carrying Amount
|
||||||||||
Vintage Housing Holdings - Tacoma
|
75 | % |
Multi-Family
|
231 Units Under construction
|
$ | 1,500 | ||||||||
Vintage Housing Holdings - Urban Center
|
75 | % |
Multi-Family
|
395 Units Under construction
|
4,000 |
17
WINTHROP REALTY TRUST
SCHEDULE OF SECURITIES CARRIED AT FAIR VALUE
(In thousands, Unaudited)
June 30, 2012
|
March 31, 2012
|
December 31, 2011
|
September 30, 2011
|
June 30, 2011
|
||||||||||||||||||||||||||||||||||||
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
Cost
|
Fair Value
|
|||||||||||||||||||||||||||||||
REIT Preferred shares
|
$ | - | $ | - | $ | - | $ | - | $ | 2,067 | $ | 4,277 | $ | 2,067 | $ | 4,222 | $ | 2,067 | $ | 4,333 | ||||||||||||||||||||
REIT Common shares
|
26,775 | 34,079 | 25,681 | 33,700 | 21,492 | 24,579 | 2,935 | 2,430 | 2,935 | 3,280 | ||||||||||||||||||||||||||||||
Total securities carried at fair value
|
$ | 26,775 | $ | 34,079 | $ | 25,681 | $ | 33,700 | $ | 23,559 | $ | 28,856 | $ | 5,002 | $ | 6,652 | $ | 5,002 | $ | 7,613 | ||||||||||||||||||||
Securities carried at fair value are comprised of REIT preferred shares and common shares for which the Trust has elected the fair value option.
|
Three Months Ended
|
||||||||||||||||||||
June 30,
2012
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
June 30,
2011
|
||||||||||||||||
Net unrealized gain (loss)
|
$ | (879 | ) | $ | 5,096 | $ | 3,552 | $ | (1,036 | ) | $ | (689 | ) | |||||||
Net realized gain (loss)
|
$ | 15 | $ | 26 | $ | (8 | ) | $ | - | $ | 7 | |||||||||
The Trust uses specific identification method for calculating gain or loss on the sale of securities carried at fair value.
|
||||||||||||||||||||
Net unrealized gains and losses and realized gains and losses above include amounts generated from securities carried at fair value and loan securities.
|
18
WINTHROP REALTY TRUST
SCHEDULE OF LOAN ASSETS
(In thousands, Unaudited)
Description
|
Acquisition Date
|
Asset
Type
|
Location
|
Position
|
Interest Rate (1)
|
Carrying Amount (2)
June 30, 2012
|
Par Value
|
Maturity Date (3)
|
Senior
Debt (4)
|
||||||||||||||||||
Loans Receivable
|
|||||||||||||||||||||||||||
Broward Financial Ctr
|
May 2012
|
Office / Retail
|
Ft Lauderdale, FL
|
Whole Loan
|
9.84% | $ | 30,139 | $ | 30,000 |
10/15/12
|
$ | - | |||||||||||||||
Hotel Wales
|
Oct 2011
|
Hotel
|
New York, NY
|
Whole Loan
|
Libor + 4.0% (5)
|
20,097 | 20,000 |
10/05/13
|
- | ||||||||||||||||||
Legacy Orchard
|
Oct 2010
|
Corporate Loan
|
n/a |
Corporate Loan
|
15.00% | 9,750 | 9,750 | (6) |
10/31/14
|
- | |||||||||||||||||
Renaissance Walk
|
Dec 2011
|
Retail/ Multifamily
|
Atlanta, GA
|
Mezzanine
|
Libor + 12.0% (7)
|
3,000 | 3,000 |
01/01/15
|
4,000 | ||||||||||||||||||
San Marbeya
|
Jul 2010
|
Multifamily
|
Tempe, AZ
|
Whole
|
5.88% | 26,816 | 30,189 |
01/01/15
|
- | ||||||||||||||||||
Fenway Shea
|
Apr 2012
|
Office
|
Phoenix, AZ
|
Mezzanine
|
12.00% | 2,250 | 2,250 |
04/05/15
|
- | ||||||||||||||||||
127 West 25th Street
|
May 2012
|
Mixed Use
|
New York, NY
|
Mezzanine
|
14.00% | 9,105 | 9,000 |
04/30/15
|
35,180 | ||||||||||||||||||
30 N. Michgan
|
May 2012
|
Office
|
Chicago, IL
|
Mezzanine
|
10.00% | 6,607 | 6,550 |
05/31/15
|
|||||||||||||||||||
Churchill
|
May 2012
|
Mixed Use
|
Churchill, PA
|
Whole Loan
|
Libor + 3.75%
|
326 | 324 |
06/01/15
|
- | ||||||||||||||||||
Rockwell
|
Aug 2010
|
Industrial
|
Shirley, NY
|
Mezzanine
|
12.00% | 294 | 1,491 |
05/01/16
|
16,727 | ||||||||||||||||||
29 East Madison
|
Jun 2011
|
Office
|
Chicago, IL
|
Mezzanine
|
8.00% | 365 | 365 |
05/31/16
|
10,657 | ||||||||||||||||||
500-512 7th Ave
|
Jul 2010
|
Office
|
New York, NY
|
B Note
|
7.19% | 9,990 | 11,276 |
07/11/16
|
243,244 | ||||||||||||||||||
Wellington Tower
|
Dec 2009
|
Mixed Use
|
New York, NY
|
Mezzanine
|
6.79% | 2,622 | 3,501 |
07/11/17
|
22,500 | ||||||||||||||||||
Mentor Building
|
Mar 2012
|
Retail
|
Chicago, IL
|
Whole Loan
|
10.00% | 2,511 | 2,497 |
09/10/17
|
- | ||||||||||||||||||
Total Loans Receivable | $ | 123,872 | $ | 130,193 | |||||||||||||||||||||||
Loan Securities Carried at Fair Value
|
|||||||||||||||||||||||||||
WBCMT 2007
|
Dec 2009
|
Hotel
|
Various
|
CMBS
|
Libor + 1.75%
|
$ | 11 | $ | 1,267 |
03/09/14
|
$ | 1,324,403 | |||||||||||||||
West Olive
|
Dec 2009
|
Office
|
Burbank, CA
|
Rake Bonds
|
(8) | 5,374 | 6,364 |
02/28/13
|
15,666 | ||||||||||||||||||
Total Loan Securities Carried at Fair Value | $ | 5,385 | $ | 7,631 | |||||||||||||||||||||||
Equity Investment Loan Assets (9)
|
|||||||||||||||||||||||||||
10 Metrotech
|
Apr 2012
|
Office
|
Brooklyn, NY
|
B Participation
|
Libor + 2.0%
|
$ | 37 | $ | 6,999 |
03/09/10
|
$ | 39,871 | |||||||||||||||
Riverside Plaza
|
Jun 2010
|
Retail
|
Riverside, CA
|
B Note
|
(10) | 12.00% | 7,878 | 7,800 |
12/01/12
|
54,400 | |||||||||||||||||
So-Cal Office Portfolio
|
Nov 2011
|
Office
|
Southern. CA
|
C Note
|
(10) |
Libor + 3.10%
|
48,794 | 59,184 |
08/09/12
|
678,797 | |||||||||||||||||
Stamford Portfolio
|
Feb 2012
|
Office
|
Stamford, CT
|
Mezzanine
|
(10) |
Libor + 3.25%
|
8,206 | 9,400 | (6) |
08/06/14
|
400,000 | ||||||||||||||||
Total Loan Assets of Equity Investments | $ | 64,915 | $ | 83,383 |
Continued on next page
19
WINTHROP REALTY TRUST
SCHEDULE OF LOAN ASSETS
(In thousands, Unaudited, Continued)
Notes to Schedule of Loan Assets
|
||||||||||||||
(1) Represents contractual interest rates without giving effect to loan discount and accretion. The stated interest rate may be significantly
different than the Trust's effective interest rate on certain loan investments.
|
||||||||||||||
(2) Carrying amount of loans receivable includes accrued interest of $635,000 and cumulative accretion of $1,408,000 at June 30, 2012.
|
||||||||||||||
(3) Maturity dates presented are after giving effect to all contractual extensions.
|
||||||||||||||
(4) Senior Debt indicates debt which is secured by the underlying property which is senior to our loan.
|
||||||||||||||
(5) Libor floor of 3%.
|
||||||||||||||
(6) Amount of Par Value is presented at the borrowers discounted payoff option (DPO) amount.
|
||||||||||||||
(7) Libor floor of 2%.
|
||||||||||||||
(8) Ranges from Libor + 0.65% to Libor + 1.60%.
|
||||||||||||||
(9) Does not include our equity interests in Concord and RE CDO Management.
|
||||||||||||||
(10) The loan asset carrying amount presented is at Winthrop's ownership in the loan balance.
|
20
WINTHROP REALTY TRUST
NET OPERATING INCOME FROM CONSOLIDATED PROPERTIES
(In thousands)
(Unaudited)
Three Months Ended
|
||||||||||||||||||||
June 30,
2011
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
June 30,
2011
|
||||||||||||||||
Rents and reimbursements
|
||||||||||||||||||||
Minimum rent
|
$ | 10,493 | $ | 10,097 | $ | 9,475 | $ | 9,722 | $ | 9,666 | ||||||||||
Deferred rents (straight-line)
|
1,030 | 1,446 | 1,140 | 227 | 363 | |||||||||||||||
Recovery income
|
1,152 | 1,143 | 967 | 976 | 1,274 | |||||||||||||||
Less:
|
||||||||||||||||||||
Above and below market rents
|
102 | 102 | 106 | 113 | 126 | |||||||||||||||
Lease concessions and abatements
|
480 | (248 | ) | (113 | ) | (197 | ) | (195 | ) | |||||||||||
Total rents and reimbursements
|
$ | 13,257 | 12,540 | 11,575 | 10,841 | 11,234 | ||||||||||||||
|
||||||||||||||||||||
Rental property expenses
|
||||||||||||||||||||
Property operating
|
3,779 | 4,552 | 3,754 | 3,535 | 3,987 | |||||||||||||||
Real estate taxes
|
1,017 | 1,254 | 1,096 | 1,108 | 1,087 | |||||||||||||||
Total rental property expenses
|
4,796 | 5,806 | 4,850 | 4,643 | 5,074 | |||||||||||||||
Net operating income (1)
|
||||||||||||||||||||
from consolidated properties
|
8,461 | $ | 6,734 | $ | 6,725 | $ | 6,198 | $ | 6,160 |
(1) See definition of non-GAAP measure of Net Operating Income on page 35 of the supplemental package.
21
WINTHROP REALTY TRUST
SCHEDULE OF INTEREST, DIVIDENDS AND DISCOUNT ACCRETION
(In thousands)
(Unaudited)
Three Months Ended
|
||||||||||||||||||||
June 30,
2012
|
March 31,
2012
|
December 31,
2011
|
September 30,
2011
|
June 30,
2011
|
||||||||||||||||
Interest, Dividends and Discount
Accretion by Business Segment:
|
||||||||||||||||||||
Loan Assets
|
5,472 | $ | 5,232 | $ | 4,867 | $ | 5,417 | $ | 4,976 | |||||||||||
REIT Securities
|
305 | 286 | 322 | 86 | 118 | |||||||||||||||
Total Interest, Dividends and
Discount Accretion
|
$ | 5,777 | $ | 5,518 | $ | 5,189 | $ | 5,503 | $ | 5,094 | ||||||||||
Interest, Dividends and Discount
Accretion Detail:
|
||||||||||||||||||||
Interest on loan assets
|
2746 | $ | 2,399 | $ | 2,633 | $ | 3,043 | $ | 2,687 | |||||||||||
Accretion of loan discount
|
2726 | 2,833 | 2,234 | 2,374 | 2,289 | |||||||||||||||
Interest and dividends on REIT securities
|
305 | 286 | 322 | 86 | 118 | |||||||||||||||
Total Interest, Dividends and
Discount Accretion
|
$ | 5,777 | $ | 5,518 | $ | 5,189 | $ | 5,503 | $ | 5,094 |
22
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES - SELECTED PROPERTY DATA
June 30, 2012 (Unaudited)
Description and
Location
|
Year
Acquired
|
Trust’s
Ownership
|
Rentable
Square Feet
|
(**)
% Leased
|
Major Tenants
(Lease /Options Exp)
|
Major Tenants’
Sq. Feet.
|
($000's)
Cost Basis
Net of Deprec
|
Ownership
of Land
|
($000's) Debt
Balance
|
Debt Maturity
& Int Rate
|
|||||||||||||||||||||
Amherst, NY (2)
|
2005
|
100 | % | 200,000 | 100 | % |
Ingram Micro Systems (2013/2023)
|
200,000 | $ | 16,405 |
Fee
|
$ | 15,457 | 10/2013 5.65 | % | ||||||||||||||||
Andover, MA
|
2005
|
100 | % | 93,000 | 100 | % |
PAETEC Comm.
(2022/2037)
|
93,000 | 7,046 |
Fee
|
(1 | ) | (1 | ) | |||||||||||||||||
Chicago, IL
(One East Erie / Marc Realty)
|
2005
|
100 | % | 126,000 | 93 | % |
The Gettys Group (2012/2016)
|
13,000 | 20,961 |
Fee
|
20,360 | 03/2016 5.75 | % | ||||||||||||||||||
River North Surgery (2015/ n/a)
|
15,000 | ||||||||||||||||||||||||||||||
Chicago, IL
(River City / Marc Realty)
|
2007
|
60 | % | 253,000 | 72 | % |
Bally Total Fitness (2013/2021)
|
55,000 | 14,579 |
Fee
|
8,700 | 04/2015 6.25 | % | ||||||||||||||||||
ITAV (2024/2029)
|
35,000 | ||||||||||||||||||||||||||||||
MFS/Worldcom(2019/2023)
|
61,000 | ||||||||||||||||||||||||||||||
Deer Valley, AZ
|
2010
|
100.0 | % | 82,000 | 96 | % |
United Healthcare
(2017/2027)
|
42,000 | 10,709 |
Fee
|
(1 | ) | (1 | ) | |||||||||||||||||
Premier Research Group (2016/2026)
|
13,800 | ||||||||||||||||||||||||||||||
Southwest Desert Cardiology (2022 / 2037)
|
9,200 | ||||||||||||||||||||||||||||||
Englewood, CO Crossroads I
|
2010
|
100 | % | 118,000 | 57 | % |
RGN-Denver LLC
(2015/ 2025)
|
17,000 | 7,677 |
Fee
|
(1 | ) | (1 | ) | |||||||||||||||||
Englewood, CO Crossroads II
|
2010
|
100 | % | 118,000 | 87 | % |
TIC Holdings
(2019 / 2044)
|
75,000 | 10,087 |
Fee
|
(1 | ) | (1 | ) | |||||||||||||||||
Houston, TX
|
2004
|
8 | % | 614,000 | 100 | % |
Spectra Energy (2018/2028)
|
614,000 | 57,700 |
Fee
|
54,301 | 04/2016 6.23 | % | ||||||||||||||||||
Indianapolis, IN
(Circle Tower)
|
1974
|
100 | % | 111,000 | 81 | % |
No Tenants
Over 10%
|
- | 4,936 |
Fee
|
4,129 | 04/2015 5.82 | % | ||||||||||||||||||
Lisle, IL
|
2006
|
100 | % | 169,000 | 77 | % |
United Healthcare
(2014/ n/a)
|
41,000 | 18,789 |
Fee
|
5,753 |
10/2014
Libor + 2.5%
|
|||||||||||||||||||
Lisle, IL
|
2006
|
100 | % | 67,000 | 17 | % |
ABM Janitorial (2012/2014)
|
11,000 | 5,265 |
Fee
|
1,658 |
10/2014
Libor + 2.5%
|
|||||||||||||||||||
Lisle, IL
(Marc Realty)
|
2006
|
60 | % | 54,000 | 100 | % |
Ryerson
(2018/2028)
|
54,000 | 3,548 |
Fee
|
5,577 | 03/2017 5.55 | % | ||||||||||||||||||
New York, NY
(450 West 14th St)
|
2011
|
var
|
105,000 | 91 | % |
Fast Retailing (2026/2036)
|
23,000 | 58,818 |
Ground Lease
|
51,636 |
05/2016
Libor + 2.5%
|
||||||||||||||||||||
Alice + Olivia (2021/2031)
|
22,000 | ||||||||||||||||||||||||||||||
Access Industries (2021/2031)
|
14,000 | ||||||||||||||||||||||||||||||
Orlando, FL
|
2004
|
100 | % | 257,000 | 100 | % |
Siemens Real Estate, Inc. (2017/2042)
|
257,000 | 13,994 |
Ground Lease
|
37,860 | 07/2017 6.40 | % | ||||||||||||||||||
Plantation, FL
|
2004
|
100 | % | 120,000 | 100 | % |
AT&T Service, Inc.
(2020/2035)
|
120,000 | 11,232 |
Fee
|
10,870 | 04/2018 6.48 | % | ||||||||||||||||||
South Burlington, VT
|
2005
|
100 | % | 54,000 | 100 | % |
Fairpoint Comm.
(2014/2029)
|
54,000 | 2,876 |
Ground Lease
|
(1 | ) | (1 | ) | |||||||||||||||||
Subtotal - Office
|
2,541,000 | 264,622 | 216,301 |
(Continued on next page)
23
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES - SELECTED PROPERTY DATA (Continued)
June 30, 2012 (Unaudited)
Description and
Location
|
Year
Acquired
|
Trust’s
Ownership
|
Rentable
Square Feet
|
(**)
% Leased
|
Major Tenants
(Lease /Options Exp)
|
Major Tenants’
Sq. Feet.
|
($000's)
Cost Basis
Net of Deprec
|
Ownership
of Land
|
($000's) Debt
Balance
|
Debt Maturity
& Int Rate
|
||||||||||||||||||||||||
Retail
|
||||||||||||||||||||||||||||||||||
Atlanta, GA
|
2004
|
100 | % | 61,000 | 100 | % |
The Kroger Co. (2016/2026)
|
61,000 | $ | 3,754 |
Ground Lease
|
(1 | ) | (1 | ) | |||||||||||||||||||
Denton, TX
|
2004
|
100 | % | 46,000 | 100 | % |
Diesel Fitness
(2012)
Harbor Freight Tools
(2022 / 2037)
|
29,000
17,000
|
2,624 |
Fee
|
(1 | ) | (1 | ) | ||||||||||||||||||||
Greensboro, NC
|
2004
|
100 | % | 46,000 | 100 | % |
The Kroger Co. (2017/2037)
|
46,000 | 3,077 |
Ground Lease
|
(1 | ) | (1 | ) | ||||||||||||||||||||
Louisville, KY
|
2004
|
100 | % | 47,000 | 100 | % |
The Kroger Co.
(2015/2040)
|
47,000 | 2,579 |
Fee
|
(1 | ) | (1 | ) | ||||||||||||||||||||
Memphis, TN
|
2004
|
100 | % | 44,000 | 100 | % |
The Kroger Co. (2015/2040)
|
44,000 | 1,252 |
Fee
|
(1 | ) | (1 | ) | ||||||||||||||||||||
Seabrook, TX
|
2004
|
100 | % | 52,000 | 100 | % |
The Kroger Co. (2015/2040)
|
52,000 | 1,746 |
Fee
|
(1 | ) | (1 | ) | ||||||||||||||||||||
Subtotal Retail
|
296,000 | 15,032 | ||||||||||||||||||||||||||||||||
Residential
|
||||||||||||||||||||||||||||||||||
Meriden, CT
|
2010
|
100 | % |
180 units
|
96 | % | n/a | n/a | 23,828 |
Fee
|
13,590 |
10/2014
Libor + 2.5%
|
||||||||||||||||||||||
Waterford
|
2012
|
100 | % |
320 units
|
93 | % | n/a | n/a | 20,624 |
Fee
|
||||||||||||||||||||||||
Subtotal Retsidential
|
44,452 | |||||||||||||||||||||||||||||||||
Other
|
||||||||||||||||||||||||||||||||||
Warehouse
|
||||||||||||||||||||||||||||||||||
Jacksonville, FL
|
2004
|
100 | % | 580,000 | 100 | % |
Fanatics, Inc.
(2015/2024)
|
558,000 | 10,319 |
Fee
|
(1 | ) | (1 | ) | ||||||||||||||||||||
Mixed Use
|
||||||||||||||||||||||||||||||||||
Churchill, PA
|
2004
|
100 | % | 52,000 | 100 | % |
Westinghouse
(2013)
|
- | 5,575 |
Fee
|
- | - | ||||||||||||||||||||||
Subtotal - Other
|
632,000 | 15,894 | ||||||||||||||||||||||||||||||||
Total Consolidated Properties
|
3,469,000 | $ | 340,000 | $ | 229,891 |
(**) Occupancy rates include all signed leases, including space undergoing tenant improvements.
|
||||||||||||||||||||||||||||||||||
Notes to Consolidated Properties - Selected Data
|
||||||||||||||||||||||||||||||||||
(1) These properties collateralize our revolving line of credit.
|
||||||||||||||||||||||||||||||||||
(2) The Amherst, New York office property represents two separate buildings. The ground underlying the properties is leased to us by the local development authority pursuant to a ground lease which requires no payment. Effective October 31, 2013, legal title to the ground will vest with us.
|
24
WINTHROP REALTY TRUST
EQUITY INVESTMENTS – SELECTED DATA
June 30, 2012
(Unaudited)
Description and
Location
|
Year
Acquired
|
Trust’s
Ownership
|
Rentable
Square Feet
|
(**)
% Leased
|
Major Tenants
(Lease /Options Exp)
|
Major Tenants’
Sq. Feet.
|
($000's)
Equity Investment
|
Ownership
of Land
|
($000's) Debt
Balance(1)
|
Debt Maturity
& Int Rate
|
|||||||||||||||||||||
Marc Realty Portfolio - Equity Investment Operating Properties
|
|||||||||||||||||||||||||||||||
223 West Jackson, Chicago, IL
|
2005
|
50 | % | 168,000 | 75 | % |
No tenants over 10%
|
- | 7,930 |
Fee
|
7,126 | 06/2012 6.92 | % | ||||||||||||||||||
4415 West Harrison, Hillside, IL
(High Point)
|
2005
|
50 | % | 192,000 | 58 | % |
North American Medical Mgmt (2015/2020)
|
20,400 | 2,330 |
Fee
|
4,471 | 12/2015 5.62 | % | ||||||||||||||||||
1701 E. Woodfield, Shaumburg, IL
|
2005
|
50 | % | 175,000 | 87 | % |
No tenants over 10%
|
- | 1,979 |
Fee
|
5,569 |
09/2015
Libor + 3% (2)
|
|||||||||||||||||||
2205-55 Enterprise,
Westchester, IL
|
2005
|
50 | % | 130,000 | 90 | % |
Consumer Portfolio
(2014/2019)
|
18,900 | 2,579 |
Fee
|
9,146 |
02/2013
Libor + 2.75%
|
|||||||||||||||||||
UroPartners LLC
(2015/ n/a)
|
14,500 | ||||||||||||||||||||||||||||||
180 North Michigan
Chicago, IL (Marc Realty)
|
2008
|
70 | % | 229,000 | 83 | % |
No tenants over 10%
|
6,950 |
Fee
|
17,347 |
03/2013
Libor+1.5% (3)
|
||||||||||||||||||||
Total Marc Realty Portfolio
|
894,000 | $ | 21,768 | $ | 43,659 | ||||||||||||||||||||||||||
Sealy Venture Portfolio - Equity Investment Operating Properties
|
|||||||||||||||||||||||||||||||
Atlanta, GA
(Northwest Atlanta)
|
2006
|
60 | % | 472,000 | 70 | % |
Original Mattress
(2020/2025)
|
57,000 | $ | 8,373 |
Fee
|
$ | 13,880 |
09/2015
Libor +5.35% (4)
|
|||||||||||||||||
Atlanta, GA
(Newmarket)
|
2008
|
68 | % | 470,000 | 52 | % |
No tenants over 10%
|
- | 1,344 |
Fee
|
37,000 | 11/2016 6.12 | % | ||||||||||||||||||
Nashville, TN
(Airpark)
|
2007
|
50 | % | 1,155,000 | 86 | % |
No tenants over 10%
|
- | - |
Fee
|
74,000 | 05/2012 5.77 | % | ||||||||||||||||||
Total - Sealy Venture Portfolio
|
2,097,000 | $ | 9,717 | $ | 124,880 | ||||||||||||||||||||||||||
Mentor Retail LLC - Equity Investment Operating Property
|
|||||||||||||||||||||||||||||||
39 South State Street
Chicago, IL
|
2012
|
50 | % | 7,000 | 100 | % |
American Apparel
(2022 / n/a)
|
7,000 | $ | 511 |
Fee
|
$ | 2,497 | 09/2017 10 | % | ||||||||||||||||
WRT-Elad / One South State Equity - Equity Investment Operating Property
|
|||||||||||||||||||||||||||||||
One South State Street
Chicago, IL (Sullivan Ctr)
|
2012
|
50 | % | 942,000 | 84 | % |
School of the Art Institute of Chicago
(2018 /2028)
|
157,000 | $ | 24,716 |
Fee
|
$ | 100,292 | 02/2015 11 | % | ||||||||||||||||
State of Illinois
(2018 )
|
243,000 | ||||||||||||||||||||||||||||||
Target
(2027 /2062)
|
147,000 | ||||||||||||||||||||||||||||||
942,000 | $ | 24,716 | $ | 100,292 | |||||||||||||||||||||||||||
(Continued on next page)
|
25
WINTHROP REALTY TRUST
EQUITY INVESTMENTS - SELECTED DATA (Continued)
June 30, 2012
(Unaudited)
Description and Location
|
Year
Acquired
|
Units
|
(**)
% Leased
|
Ownership
of Land
|
|||||||
Vintage Housing Portfolio - Equity Investment Operating Properties
|
|||||||||||
Agave Associates
|
Elk Grove, CA
|
2011
|
188 | 93 | % |
Fee
|
|||||
Bouquet Canyon Seniors
|
Santa Clarita, CA
|
2011
|
264 | 97 | % |
Fee
|
|||||
Elk Creek Apartments
|
Sequim, WA
|
2011
|
138 | 93 | % |
Fee
|
|||||
Falls Creek Apartments
|
Couer d' Alene, ID
|
2011
|
170 | 95 | % |
Fee
|
|||||
Forest Creek Apartments
|
Spokane, WA
|
2011
|
252 | 94 | % |
Fee
|
|||||
Hamilton Place Seniors
|
Bellingham, WA
|
2011
|
94 | 99 | % |
Fee
|
|||||
Heritage Place Apartments
|
St. Ann, MO
|
2011
|
113 | 98 | % |
Fee
|
|||||
Holly Village Apartments
|
Everett, WA
|
2011
|
149 | 92 | % |
Fee
|
|||||
Larkin Place Apartments
|
Bellingham, WA
|
2011
|
101 | 97 | % |
Fee
|
|||||
Rosecreek Senior Living
|
Arlington, WA
|
2011
|
100 | 99 | % |
Fee
|
|||||
Seven Hills/ St Rose
|
Henderson, NV
|
2011
|
244 | 99 | % |
Fee
|
|||||
Silver Creek Apartments
|
Pasco, WA
|
2011
|
242 | 98 | % |
Fee
|
|||||
The Bluffs Apartments
|
Reno, NV
|
2011
|
300 | 93 | % |
Fee
|
|||||
Twin Ponds Apartments
|
Arlington, WA
|
2011
|
134 | 95 | % |
Fee
|
|||||
Vintage at Bend
|
Bend, OR
|
2011
|
106 | 96 | % |
Fee
|
|||||
Vintage at Bremerton
|
Bremerton, WA
|
2011
|
143 | 95 | % |
Fee
|
|||||
Vintage at Burien
|
Burien, WA
|
2011
|
101 | 98 | % |
Ground Lease
|
|||||
Vintage at Chehalis
|
Chehalis, WA
|
2011
|
150 | 95 | % |
Fee
|
|||||
Vintage at Everett
|
Everett, WA
|
2011
|
259 | 93 | % |
Fee
|
|||||
Vintage at Mt. Vernon
|
Mt. Vernon, WA
|
2011
|
154 | 99 | % |
Fee
|
|||||
Vintage at Napa
|
Napa, CA
|
2011
|
115 | 96 | % |
Fee
|
|||||
Vintage at Richland
|
Richland, WA
|
2011
|
150 | 95 | % |
Fee
|
|||||
Vintage at Sequim
|
Sequim, WA
|
2011
|
118 | 97 | % |
Fee
|
|||||
Vintage at Silverdale
|
Silverdale, WA
|
2011
|
240 | 96 | % |
Fee
|
|||||
Vintage at Spokane
|
Spokane, WA
|
2011
|
287 | 96 | % |
Fee
|
|||||
Vintage at Vancouver
|
Vancouver, WA
|
2011
|
154 | 97 | % |
Fee
|
|||||
Vista Sonoma Seniors Apts
|
Santa Rosa, CA
|
2011
|
189 | 92 | % |
Fee
|
|||||
4655 | |||||||||||
Vintage Housing Portfolio - Preferred Equity Investment Operating Properties
|
|||||||||||
Vintage at Tacoma
|
2012
|
231 |
under construction
|
Fee
|
|||||||
Vintage at Urban Center
|
2012
|
395 |
under construction
|
Fee
|
|||||||
626 | |||||||||||
Total - Vintage Housing Portfolio
|
5,281 |
units
|
|||||||||
(Continued on Next Page) |
26
WINTHROP REALTY TRUST
EQUITY INVESTMENTS - SELECTED DATA (Continued)
June 30, 2012
(Unaudited)
Description and
Location
|
Year
Acquired
|
Trust’s
Ownership
|
Rentable
Square Feet
|
($000's)
Equity Investment
|
($000's) Debt
Balance (1)
|
||||||||||||||||||||
Equity Investment Operating Properties
|
|||||||||||||||||||||||||
Marc Realty Portfolio (from Page 25 )
|
see above
|
894,000 | $ | 21,768 | $ | 43,659 | (6 | ) | |||||||||||||||||
Sealy Portfolio (from Page 25)
|
see above
|
2,097,000 | 9,717 | 124,880 | (6 | ) | |||||||||||||||||||
Mentor Retail LLC (from Page 25)
|
see above
|
7,000 | 511 | 2,497 | (6 | ) | |||||||||||||||||||
WRT-Elad / One South State Equity (from Page 25)
|
see above
|
941,000 | 24,716 | 100,292 | (6 | ) | |||||||||||||||||||
Vintage Portfolio (from page 26)
|
see above
|
4,655 units
|
30,144 | (5 | ) | 247,504 | (6 | ) | |||||||||||||||||
Total Equity Investment Operating Properties
|
86,856 | $ | 518,832 | ||||||||||||||||||||||
Loan Asset Equity Investments
|
|||||||||||||||||||||||||
SoCal Office Portfolio Loan LLC
|
2011
|
50 | % | 33,888 | |||||||||||||||||||||
WRT-Stamford LLC
|
2012
|
20 | % | 8,236 | |||||||||||||||||||||
WRT-ROIC Riverside LLC
|
2010
|
50 | % | 7,883 | |||||||||||||||||||||
WRT-ROIC Lakeside Eagle LLC
|
2011
|
50 | % | 1 | |||||||||||||||||||||
Other Equity Investment
|
|||||||||||||||||||||||||
Concord Debt Holdings LLC
|
2012
|
67 | % | 4,529 | (7 | ) | |||||||||||||||||||
CDH CDO LLC
|
2012
|
67 | % | 2,978 | (7 | ) | |||||||||||||||||||
RE CDO Management LLC
|
2011
|
50 | % | 1,794 | |||||||||||||||||||||
10 Metrotech
|
2012
|
33 | % | 56 | |||||||||||||||||||||
Total Equity Investments
|
$ | 146,221 |
Notes to Equity Investments - Selected Data
|
||||||||
(**) Occupancy rates include all signed leases including space undergoing tenant improvements
|
||||||||
(1) Debt balance shown represents 100% of the debt encumbering the properties.
|
||||||||
(2) An interest rate swap agreement with a notional amount of $5,579 effectively converts the interest rate to a fixed rate of 4.78%.
|
||||||||
(3) An interest rate swap agreement with a notional amount of $17,425 effectively converts the interest rate to a fixed rate of 4.55%.
|
||||||||
(4) An interest rate cap was purchased that caps Libor at 1%.
|
||||||||
(5) The Vintage equity investment of $30,144 represents a our various interests in Vintage Housing Holdings LLC, an entity which owns the general
partnership interest listed above. The investment basis is not specifically allocated among the various lower tier partnerships.
|
||||||||
(6) See Equity Investments debt details on pages 31 and 32.
|
||||||||
(7) Represents the interest acquired from Lexington Realty Trust on May 1, 2012.
|
27
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES – OPERATING SUMMARY
Six Months Ended June 30, 2012
(In thousands, except for Square Footage, Unaudited)
Description
|
% Owned
|
Number of
Properties
|
Square Footage
|
Rents and Reimburse-ments
|
Operating Expenses
|
Real Estate Taxes
|
Net
Operating Income (1)
|
Interest Expense
|
Impairment
|
Deprec & Amort
|
(Income) Loss Attributable to Non-controlling Interest
|
WRT's share Net Income / (Loss) from Consolidated Properties (1)
|
||||||||||||||||||||||||||||||||||||||||
100% Owned Consolidated Properties
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail
|
100.0 | % | 6 | 296,000 | $ | 728 | $ | 54 | $ | 21 | $ | 653 | $ | - | $ | - | $ | 196 | $ | - | $ | 457 | ||||||||||||||||||||||||||||||
Office
|
100.0 | % | 12 | 1,515,000 | 11,716 | 3,251 | 1,289 | 7,176 | 2,929 | - | 3,570 | 72 | (2 | ) | 605 | |||||||||||||||||||||||||||||||||||||
Residential
|
100.0 | % | 2 |
500 units
|
2,154 | 626 | 263 | 1,265 | 207 | - | 941 | 117 | ||||||||||||||||||||||||||||||||||||||||
Other
|
100.0 | % | 2 | 632,000 | 1,691 | 1,328 | 118 | 245 | - | - | 426 | - | (181 | ) | ||||||||||||||||||||||||||||||||||||||
22 | 2,443,000 | 16,289 | 5,259 | 1,691 | 9,339 | 3,136 | - | 5,133 | 72 | 998 | ||||||||||||||||||||||||||||||||||||||||||
Partially Owned Consolidated Properties
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Chicago, IL
(River City/Marc Realty)
|
60.0 | % | 1 | 253,000 | 2,176 | 774 | 346 | 1,056 | 293 | - | 417 | 138 | 208 | |||||||||||||||||||||||||||||||||||||||
Houston, TX
(Multiple LP's)
|
8.0 | % | 1 | 614,000 | 3,949 | 9 | - | 3,940 | 1,721 | - | 1,396 | 700 | 123 | |||||||||||||||||||||||||||||||||||||||
Lisle, IL
(Marc Realty)
|
60.0 | % | 1 | 54,000 | 417 | 147 | 35 | 235 | 163 | - | 75 | (1 | ) | (2 | ) | |||||||||||||||||||||||||||||||||||||
New York, NY
(450 W 14th St)
|
Var
|
1 | 105,000 | 2,966 | 2,142 | 199 | 625 | 948 | - | 1,177 | (2,247 | ) | 747 | |||||||||||||||||||||||||||||||||||||||
4 | 1,026,000 | 9,508 | 3,072 | 580 | 5,856 | 3,125 | - | 3,065 | (1,410 | ) | 1,076 | |||||||||||||||||||||||||||||||||||||||||
Total Consolidated Properties
|
26 | 3,469,000 | $ | 25,797 | $ | 8,331 | $ | 2,271 | $ | 15,195 | $ | 6,261 | $ | - | $ | 8,198 | $ | (1,338 | ) | $ | 2,074 | |||||||||||||||||||||||||||||||
Line of Credit interest expense
|
372 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense related to loan assets
|
668 | - | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss attributable to Noncontrolling interest related to the Trust's loan segment
|
- | (36 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Total
|
$ | 7,301 | $ | (1,374 | ) |
(1) See definition of Net Operating Income and Net Income / (Loss) from Consolidated Properties on page 36 of the supplemental package.
(2) The amounts attributable to non-controlling interests for 100% owned properties are from Deer Valley and One East Erie properties prior to the Trust's 2012 acquisitions of the non-controlling interests in these properties.
28
WINTHROP REALTY TRUST
EQUITY INVESTMENTS – OPERATING SUMMARY
Six Months Ended June 30, 2012
(In thousands, except for Square Footage, Unaudited)
Venture
|
Number of Properties
|
Square Footage
|
Total Revenue
|
Operating Expenses
|
Real Estate Taxes
|
Net Operating Income (2)
|
Interest Expense
|
Other Income (Expense)
|
Deprec & Amort
|
Net Income / (Loss) from Equity Invest-
ments
|
WRT' S Share of Net Income / (Loss) from Equity Investments
|
|||||||||||||||||||||||||||||||||
Marc Realty Portfolio
|
5 | 894,000 | 13,250 | 6,142 | 2,155 | 4,953 | 1,715 | (136 | ) | 3,642 | (540 | ) | (230 | ) | ||||||||||||||||||||||||||||||
Sealy Venture Portfolio
|
3 | 2,097,000 | 6,842 | 1,680 | 771 | 4,391 | 5,257 | (20 | ) | 2,993 | (3,879 | ) | (1,631 | ) | ||||||||||||||||||||||||||||||
Mentor Retail
|
1 | 7,000 | 86 | 5 | 12 | 69 | 42 | - | 15 | 12 | 6 | |||||||||||||||||||||||||||||||||
WRT-Elad
|
1 | 942,000 | 5,715 | 1,307 | 738 | 3,670 | 3,501 | (1,075 | ) | 2,679 | (3,585 | ) | 515 | |||||||||||||||||||||||||||||||
Vintage Portfolio (3)
|
27 |
4,655 units
|
20,600 | 7,995 | 303 | 12,302 | 3,321 | (2,726 | ) | 5,627 | 628 | 934 | ||||||||||||||||||||||||||||||||
Total Equity Investment
Operating Properties
|
37 | 3,940,000 | $ | 46,493 | $ | 17,129 | $ | 3,979 | $ | 25,385 | $ | 13,836 | $ | (3,957 | ) | $ | 14,956 | $ | (7,364 | ) | (406 | ) | ||||||||||||||||||||||
Marc Realty Portfolio - Amortization of basis differential (1) | (114 | ) | |||
WRT-ROIC Riverside - Winthrop's share of net income from equity investment | 468 | ||||
WRT-ROIC Lakeside Eagle-Winthrop's share of net loss from equity investment | (16 | ) | |||
RE CDO Management - Winthrop's share of net income from equity investment | 28 | ||||
CDH CDO - Winthrop's share of net income from equity investment | 1,012 | ||||
Concord Debt Holdings - Winthrop's share of net income from equity investment | 379 | ||||
WRT-SoCal Lender - Winthrop's share of net income from equity Investment | (638 | ) | |||
Stamford / Mack-Cali - Winthrop's share of net income from equity investment | 316 | ||||
10 Metrotech- Winthrop's share of net income from equity investment | (19 | ) | |||
Equity in loss of equity investments | $ | 1,010 |
(1) This amount represents the aggregate difference between the Trust’s historical cost basis and the basis reflected at the equity investment level, which is typically amortized over the life of the related assets and liabilities. The basis differentials are the result of other-than-temporary impairments at the investment level and a reallocation of equity at the venture level as a result of the restructuring.
(2) See definition of Net Operating Income on page 35 of the supplemental package.
(3) Operating results reflect results for the period December 1, 2011 to May 31, 2012.
29
WINTHROP REALTY TRUST
CONSOLIDATED DEBT SUMMARY
(In thousands, Unaudited)
Description
|
Principal
Outstanding
June 30, 2012
|
Coupon
|
Remaining
2012
Repayment
|
Maturity
Date
|
Amount
Due at
Maturity
|
Weighted
Average
Maturity
(in years)
|
||||||||||||||||||
Fixed rate debt
|
||||||||||||||||||||||||
Mortgage loans payable
|
||||||||||||||||||||||||
Amherst, NY
|
$ | 15,457 | 5.650 | % | $ | 232 | 10/2013 | $ | 14,822 | |||||||||||||||
Chicago, IL / River City
|
8,700 | 5.500 | % | - | 04/2015 | 8,331 | ||||||||||||||||||
Indianapolis, IN / Circle Tower
|
4,129 | 5.820 | % | 40 | 04/2015 | 3,888 | ||||||||||||||||||
Chicago, IL / Ontario
|
20,360 | 5.750 | % | 160 | 03/2016 | 19,073 | ||||||||||||||||||
Houston, TX - Note 1
|
25,000 | 5.220 | % | - | 04/2016 | 25,000 | ||||||||||||||||||
Houston, TX - Note 2
|
8,800 | 6.000 | % | - | 04/2016 | 8,800 | ||||||||||||||||||
Houston, TX - Note 3
|
20,501 | 7.500 | % | 2,249 | 04/2016 | - | ||||||||||||||||||
Lisle, IL / 1050 Corporetum
|
5,577 | 5.550 | % | 33 | 03/2017 | 5,189 | ||||||||||||||||||
Orlando, FL
|
37,861 | 6.400 | % | 282 | 07/2017 | 34,567 | ||||||||||||||||||
Plantation, FL
|
10,870 | 6.483 | % | 59 | 04/2018 | 10,046 | ||||||||||||||||||
Total mortgage loans payable /Wtd Avg
|
157,255 | 6.087 | % | 3,055 | 129,716 | 3.89 | ||||||||||||||||||
Non-recourse secured financing
|
||||||||||||||||||||||||
San Marbeya A Participation
|
15,150 | 4.850 | % | - | 01/2015 | 15,150 | ||||||||||||||||||
Total Fixed Rate Debt/ Wtd Avg
|
172,405 | 5.978 | % | 3,055 | 144,866 | 3.77 | ||||||||||||||||||
Floating rate debt
|
||||||||||||||||||||||||
Mortgage loans payable
|
||||||||||||||||||||||||
New York, NY (450 W 14th St) (LIBOR + 2.5%, 1% LIBOR Floor)
|
51,636 | 3.500 | % | - | 05/2016 | 51,636 | ||||||||||||||||||
Meriden, CT / Newbury (LIBOR + 2.5%, 1% LIBOR Cap)
|
13,590 | 2.770 | % | - | 10/2014 | 13,590 | ||||||||||||||||||
Lisle, IL / 550-560 Corporetum (LIBOR + 2.5%, 1% LIBOR Cap)
|
5,753 | 2.770 | % | - | 10/2014 | 5,753 | ||||||||||||||||||
Lisle, IL / 701 Arboretum (LIBOR + 2.5%, 1% LIBOR Cap)
|
1,657 | 2.770 | % | - | 10/2014 | 1,657 | ||||||||||||||||||
72,636 | 3.288 | % | - | 72,636 | 3.39 | |||||||||||||||||||
Non-recourse secured financing
|
||||||||||||||||||||||||
Hotel Wales A Note Payable - (LIBOR + 1.25, 3% Libor Floor)
|
14,000 | 4.250 | % | - | 10/2013 | 14,000 | ||||||||||||||||||
Total Floating Rate Debt/ Wtd Avg
|
86,636 | 3.443 | % | - | 86,636 | 3.04 | ||||||||||||||||||
Total Consolidated Debt/Wtd Avg
|
$ | 259,041 | 5.130 | % | $ | 3,055 | $ | 231,502 | 3.53 |
30
WINTHROP REALTY TRUST
EQUITY INVESTMENTS - DEBT SUMMARY
(In thousands, Unaudited)
Description
|
Gross
PrincipalOutstanding
June 30, 2012
|
WRT Share
PrincipalOutstanding
June 30, 2012
|
Coupon
|
WRT Share
Remaining2012
Repayment
|
Maturity
Date
|
WRT Share
Amount
Due at
Maturity
|
Weighted
Average
Maturity
(in years)
|
|||||||||||||||||||
Fixed rate debt
|
||||||||||||||||||||||||||
Sealy - Airpark, Nashville, TN
|
74,000 | 37,000 | 5.77 | % | - |
05/01/12
|
(7 | ) | 37,000 | |||||||||||||||||
Sealy - Newmarket, Atlanta, GA
|
37,000 | 25,160 | 6.12 | % | - |
11/01/16
|
25,160 | |||||||||||||||||||
Marc Realty - 223 West Jackson, Chicago, IL
|
7,126 | 3,563 | 6.92 | % | 3,563 |
06/01/12
|
(8 | ) | 3,563 | |||||||||||||||||
Marc Realty - 180 North Michigan, Chicago, IL (1)
|
17,347 | 12,143 | 4.55 | % | 323 |
03/28/13
|
11,884 | |||||||||||||||||||
Marc Realty - 4415 West Harrision, Hillside, IL
|
4,471 | 2,236 | 5.62 | % | 24 |
12/01/15
|
1,615 | |||||||||||||||||||
Marc Realty - 1701 East Woodfield, Shaumburg, IL (2)
|
5,569 | 2,785 | 4.78 | % | 33 |
09/01/15
|
2,564 | |||||||||||||||||||
Mentor Retail - 39 South Street, Chicago, IL
|
2,497 | 1,249 | 10.00 | % | - |
09/10/17
|
1,249 | |||||||||||||||||||
WRT-Elad - One South State Street
|
100,292 | 50,146 | 11.00 | % | - |
02/01/15
|
50,146 | |||||||||||||||||||
VHH - Agave Associates
|
2,500 | 1,125 | 3.50 | % | - |
12/15/36
|
1,125 | |||||||||||||||||||
VHH - Bouquet Canyon Seniors
|
11,221 | 8,416 | 6.38 | % | 119 |
07/01/28
|
1,781 | |||||||||||||||||||
VHH - Vintage at Chehalis (3)
|
8,190 | 6,143 | 4.62 | % | 77 |
06/15/40
|
1,607 | |||||||||||||||||||
VHH - Elk Creek Apartments
|
7,377 | 5,533 | 6.46 | % | 19 |
11/01/39
|
2,948 | |||||||||||||||||||
VHH - Falls Creek Apartments
|
8,360 | 6,270 | 6.24 | % | 23 |
12/01/40
|
3,207 | |||||||||||||||||||
VHH - Hamilton Place Seniors
|
134 | 101 | 5.88 | % | 22 |
07/01/14
|
- | |||||||||||||||||||
VHH - Heritage Place Apartments
|
1,796 | 1,347 | 8.37 | % | 16 |
07/19/15
|
1,239 | |||||||||||||||||||
VHH - Heritage Place Apartments
|
515 | 386 | 1.00 | % | 7 |
05/01/39
|
- | |||||||||||||||||||
VHH - Larkin Place Apartments
|
6 | 5 | 5.92 | % | 5 |
06/01/12
|
(8 | ) | 5 | |||||||||||||||||
VHH - Vintage at Mt. Vernon (4)
|
7,500 | 5,625 | 5.11 | % | - |
01/15/37
|
2,258 | |||||||||||||||||||
VHH - Vintage at Mt. Vernon (5)
|
1,145 | 859 | 5.86 | % | - |
01/15/37
|
- | |||||||||||||||||||
VHH - Vintage at Napa
|
6,113 | 4,585 | 6.16 | % | 65 |
06/01/34
|
- | |||||||||||||||||||
VHH - Vintage at Silverdale (6)
|
14,880 | 11,160 | 5.62 | % | 155 |
09/15/39
|
753 | |||||||||||||||||||
VHH - The Bluffs Apartments
|
8 | 1 | 3.00 | % | 1 |
12/15/36
|
- | |||||||||||||||||||
VHH - Twin Ponds Apartments
|
1,352 | 1,014 | 6.20 | % | 42 |
01/01/38
|
- | |||||||||||||||||||
VHH - Vintage at Vancouver
|
697 | 523 | 8.12 | % | 38 |
01/01/35
|
- | |||||||||||||||||||
VHH - Vista Sonoma Seniors Apts
|
10,179 | 7,634 | 6.56 | % | 97 |
01/01/32
|
57 | |||||||||||||||||||
Total Fixed Rate Debt/ Wtd Avg
|
$ | 330,275 | $ | 195,009 | 7.18 | % | $ | 4,629 | $ | 148,161 |
8.7
|
Notes to Fixed Rate Debt Schedule:
|
|||||||||||||
(1) An interest rate swap agreement with a notional amount of $17,553 effectively converts the interest rate to a fixed rate of 4.55%.
|
|||||||||||||
(2) An interest rate swap agreement with a notional amount of $5,600 effectively converts the interest rate to a fixed rate of 4.78%.
|
|||||||||||||
(3) An interest rate swap agreement with a notional amount of $8,190 effectively converts the interest rate to a fixed rate of 4.62%.
|
|||||||||||||
(4) An interest rate swap agreement with a notional amount of $7,500 effectively converts the interest rate to a fixed rate of 5.106%.
|
|||||||||||||
(5) An interest rate swap agreement with a notional amount of $1,116 effectively converts the interest rate to a fixed rate of 5.857%.
|
|||||||||||||
(6) An interest rate swap agreement with a notional amount of $14,602 effectively converts the interest rate to a fixed rate of 5.615%.
|
|||||||||||||
(7) Currently negotiating restructure of loan with special servicer.
|
|||||||||||||
(8) Loan paid off subsequent to quarter ended June 30, 2012.
|
(Continued on next page)
31
WINTHROP REALTY TRUST
EQUITY INVESTMENTS - DEBT SUMMARY (Continued)
(In thousands, Unaudited)
Description
|
Interest
Rate (1), (2)
|
Gross Principal
PrincipalOutstanding
June 30, 2012
|
WRT Share
PrincipalOutstanding
June 30, 2012
|
Coupon
|
WRT Share
Remaining2012
Repayment
|
Maturity
Date
|
WRT Share
AmountDue at
Maturity
|
Weighted
Average
Maturity
(in years)
|
||||||||||||||||
Floating rate debt
|
||||||||||||||||||||||||
Sealy - Northwest Atlanta, Atlanta, GA
|
LIBOR + 5.35%
|
13,880 | 8,328 | 5.59 | % | 67 |
09/01/15
|
7,927 | ||||||||||||||||
Marc Realty - 2205-55 Enterprise, Westchester, IL (3)
|
LIBOR + 2.75%
|
9,146 | 4,573 | 4.25 | % | 60 |
02/20/13
|
4,501 | ||||||||||||||||
VHH - Agave Associates
|
SIFMA + 1.47%
|
11,323 | 5,095 | 1.65 | % | 68 |
10/15/36
|
- | ||||||||||||||||
VHH - Vintage at Bend
|
SIFMA + 1.24%
|
5,600 | 4,200 | 1.42 | % | 56 |
12/15/36
|
343 | ||||||||||||||||
VHH - Vintage at Bremerton
|
SIFMA + 1.66%
|
6,200 | 4,650 | 1.84 | % | 98 |
03/15/33
|
- | ||||||||||||||||
VHH - Vintage at Burien
|
SIFMA + 1.35%
|
6,885 | 5,164 | 1.53 | % | 87 |
01/15/38
|
- | ||||||||||||||||
VHH - Vintage at Everett
|
SIFMA + 1.32%
|
16,600 | 12,450 | 1.50 | % | 110 |
01/15/38
|
984 | ||||||||||||||||
VHH - Forest Creek Apartments
|
SIFMA + 1.50%
|
13,680 | 10,260 | 1.68 | % | 106 |
06/15/40
|
- | ||||||||||||||||
VHH - Hamilton Place Seniors
|
SIFMA + 1.43%
|
3,590 | 2,693 | 1.61 | % | - |
07/01/33
|
734 | ||||||||||||||||
VHH - Holly Village Apartments
|
SIFMA + 1.44%
|
7,115 | 5,336 | 1.76 | % | 62 |
07/31/32
|
- | ||||||||||||||||
VHH - Larkin Place Apartments
|
SIFMA + 1.58%
|
4,825 | 3,619 | 1.59 | % | 29 |
07/01/33
|
956 | ||||||||||||||||
VHH - Vintage at Richland
|
SIFMA + 1.63%
|
7,535 | 5,651 | 1.81 | % | 77 |
01/15/38
|
505 | ||||||||||||||||
VHH - Rosecreek Senior Living
|
SIFMA + 0.33%
|
3,355 | 2,516 | 0.51 | % | 22 |
12/31/37
|
1,683 | ||||||||||||||||
VHH - Vintage at Sequim
|
SIFMA + 2.22%
|
6,343 | 4,757 | 2.40 | % | 28 |
03/01/38
|
1,100 | ||||||||||||||||
VHH - Silver Creek Apartments
|
SIFMA + 1.53%
|
13,095 | 9,821 | 1.71 | % | 139 |
01/01/18
|
2,837 | ||||||||||||||||
VHH - Vintage at Spokane
|
SIFMA + 1.32%
|
16,295 | 12,221 | 1.50 | % | 105 |
08/15/40
|
3,782 | ||||||||||||||||
VHH - Seven Hills/ St Rose
|
SIFMA + 1.35%
|
14,770 | 7,385 | 1.53 | % | 115 |
10/15/35
|
232 | ||||||||||||||||
VHH - The Bluffs Apartments
|
SIFMA + 1.41%
|
15,080 | 4,524 | 1.59 | % | 62 |
09/15/34
|
- | ||||||||||||||||
VHH - Twin Ponds Apartments
|
SIFMA + 1.38%
|
5,515 | 4,136 | 1.56 | % | - |
01/01/38
|
4,136 | ||||||||||||||||
VHH - Vintage at Vancouver
|
SIFMA + 2.24%
|
7,725 | 5,794 | 2.42 | % | - |
01/01/35
|
2,415 | ||||||||||||||||
Total Floating Rate Debt/ Wtd Avg
|
188,557 | 123,173 | 2.02 | % | 1,291 | 32,135 |
22.4
|
|||||||||||||||||
Total Joint Venture Debt/Wtd Avg
|
$ | 518,832 | $ | 318,182 | 5.18 | % | $ | 5,920 | $ | 180,296 |
14.0
|
Notes to Floating Rate Debt Schedule:
(1)
|
LIBOR rate used to determine coupon on floating rate debt at June 30, 2012 was 0.24475%
|
(2)
|
SIFMA = Securities Industry and Financial Markets Association Municipal Swap Index. SIFMA rate used to determine coupon on floating rate debt at May 31, 2012 on the Vintage debt was 0.18%. Each of the Vintage floating rate debt instruments is subject to an interest rate cap ranging from 5.50% and 8.25%.
|
(3)
|
This loans provides for an interest rate floor of 4.25%.
|
32
WINTHROP REALTY TRUST
CONSOLIDATED PROPERTIES LEASE EXPIRATIONS SUMMARY
(Unaudited)
Year of Lease Expirations
|
Net Rentable Square Feet Subject to Expiring Leases
|
Percentage of Leased Square Footage Represented by Expiring Leases (%)
|
Annual
Contractual
Rent Under
Expiring
Leases ($)
|
Annual Rent Per Leased Square Foot of Expiring
Leases ($)
|
||||||||||||
Consolidated Multi Tenant Operating Properties:
|
||||||||||||||||
2012
|
42,100 | 4.7 | % | $ | 717,000 | $ | 17.03 | |||||||||
2013
|
134,600 | 15.0 | % | 1,808,000 | 13.43 | |||||||||||
2014
|
112,900 | 12.6 | % | 1,939,000 | 17.17 | |||||||||||
2015
|
78,900 | 8.8 | % | 1,438,000 | 18.23 | |||||||||||
2016
|
87,500 | 9.7 | % | 1,342,000 | 15.34 | |||||||||||
Thereafter
|
442,400 | 49.2 | % | 9,844,000 | 22.25 | |||||||||||
Consolidated Single Tenant Operating Properties:
|
||||||||||||||||
2012
|
- | - | $ | - | $ | - | ||||||||||
2013
|
252,000 | 11.1 | % | 2,516,000 | 9.98 | |||||||||||
2014
|
54,000 | 2.4 | % | 820,000 | 15.19 | |||||||||||
2015
|
696,000 | 30.6 | % | 1,405,000 | 2.02 | |||||||||||
2016
|
61,000 | 2.7 | % | 259,000 | 4.25 | |||||||||||
Thereafter
|
1,211,000 | 53.3 | % | 15,004,000 | 12.39 | |||||||||||
Annual contractual rent under expiring leases represents base rent charges for the period and does not reflect any straight-line rent adjustments or expense reimbursements.
|
33
WINTHROP REALTY TRUST
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES OF INCOME TO
NET INCOME ATTRIBUTABLE TO COMMON SHARES
(In thousands)
Three Months Ended
|
Three Months Ended
|
Three Months Ended
|
Three Months Ended
|
Three Months Ended
|
||||||||||||||||
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
||||||||||||||||
2012
|
2012
|
2011
|
2011
|
2011
|
||||||||||||||||
NOI from consolidated properties (1), (4)
|
$ | 8,461 | $ | 6,734 | $ | 6,726 | $ | 6,197 | $ | 6,160 | ||||||||||
Less:
|
||||||||||||||||||||
Interest expense
|
(3,512 | ) | (3,789 | ) | (3,899 | ) | (3,546 | ) | (3,963 | ) | ||||||||||
Depreciation and amortization
|
(4,479 | ) | (3,719 | ) | (3,561 | ) | (3,185 | ) | (3,312 | ) | ||||||||||
(Income) loss attributable to non-controlling interest
|
473 | 901 | 37 | (318 | ) | (329 | ) | |||||||||||||
WRT share of income (loss) from consolidated properties (2),
(4)
|
943 | 127 | (697 | ) | (852 | ) | (1,444 | ) | ||||||||||||
Equity in income (loss) of equity investments (3)
|
586 | 424 | (17,259 | ) | 2,820 | 2,875 | ||||||||||||||
Add:
|
||||||||||||||||||||
Earnings from preferred equity investments
|
- | - | - | 257 | 158 | |||||||||||||||
Interest, dividends and discount accretion
|
5,778 | 5,518 | 5,189 | 5,503 | 5,094 | |||||||||||||||
Settlement income
|
- | - | 5,868 | - | - | |||||||||||||||
Gain on consolidation of property
|
- | - | 818 | - | - | |||||||||||||||
Gain on Extinguishment of debt
|
- | - | 744 | 8,514 | - | |||||||||||||||
Unrealized gain (loss) on loan securities carried at fair value
|
(88 | ) | 164 | - | - | 34 | ||||||||||||||
Unrealized gain (loss) on securities carried at fair value
|
(791 | ) | 4,932 | 3,586 | - | - | ||||||||||||||
Gain on loan securities carried at fair value
|
15 | 26 | - | - | 7 | |||||||||||||||
Gain on sale of equity investment
|
232 | - | - | 207 | - | |||||||||||||||
Interest and other income
|
90 | 102 | 171 | 472 | 443 | |||||||||||||||
Income from discontinued operations
|
- | - | 425 | - | 90 | |||||||||||||||
Less:
|
||||||||||||||||||||
Loss from preferred equity investments
|
- | - | (160 | ) | - | - | ||||||||||||||
Series B-1 Preferred interest expense
|
- | - | (409 | ) | (59 | ) | (58 | ) | ||||||||||||
Income attributable to Series D preferred shares
|
(2,787 | ) | (925 | ) | (339 | ) | - | - | ||||||||||||
General and administrative
|
(3,264 | ) | (3,031 | ) | (3,592 | ) | (2,893 | ) | (2,758 | ) | ||||||||||
State and local tax expense
|
(143 | ) | (6 | ) | (290 | ) | (12 | ) | (48 | ) | ||||||||||
Unrealized loss on securities carried at fair value
|
- | - | - | (961 | ) | (723 | ) | |||||||||||||
Loss on sale of securities carried at fair value
|
- | - | - | - | - | |||||||||||||||
Impairment loss on investment in real estate
|
- | - | (4,600 | ) | (3,000 | ) | - | |||||||||||||
Unrealized loss on loan securities carried at fair value
|
- | - | (34 | ) | (75 | ) | - | |||||||||||||
Realized loss on sale of securities carried at fair value
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- | - | (8 | ) | - | - | ||||||||||||||
Loss on discontinued operations
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- | (3 | ) | - | (134 | ) | - | |||||||||||||
Net income attributable to Common Shares
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$ | 571 | $ | 7,328 | $ | (10,587 | ) | $ | 9,787 | $ | 3,670 |
(1) See additional NOI detail on Page 22 of the supplemental package.
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(2) See detail for the Six months ended June 30, 2012 on Page 28 of the supplemental package.
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(3) See detail for the Six months ended June 30, 2012 on Page 29 of the supplemental package.
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(4) See definitions for non-GAAP measures on page 35 of the supplemental package.
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34
WINTHROP REALTY TRUST
SUPPLEMENTAL DEFINITIONS
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Funds From Operations - We have adopted the revised definition of Funds from Operations (“FFO”), adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). Management considers FFO to be an appropriate measure of performance of a REIT. We calculate FFO by adjusting net income (loss) (computed in accordance with GAAP, including non-recurring items), for gains (or losses) from sales of properties, real estate related depreciation and amortization, and adjustment for unconsolidated partnerships and ventures. Management believes that in order to facilitate a clear understanding of our historical operating results, FFO should be considered in conjunction with net income as presented in the consolidated financial statements included elsewhere herein. Management considers FFO to be a useful measure for reviewing our comparative operating and financial performance because, by excluding gains and losses related to sales of previously depreciated operating real estate assets and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies.
Our calculation of FFO may not be directly comparable to FFO reported by other REITs or similar real estate companies that have not adopted the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO is not a GAAP financial measure and should not be considered as an alternative to net income (loss), the most directly comparable financial measure of our performance calculated and presented in accordance with GAAP, as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance; FFO should be compared with our reported net income and considered in addition to cash flows in accordance with GAAP, as presented in our consolidated financial statements.
Net Operating Income (NOI) - Net operating income is a non-GAAP measure equal to revenues from all rental property less operating expenses and real estate taxes, exclusive of depreciation, amortization and capital expenditures. We believe NOI is a useful measure for evaluating operating performance of our real estate assets as well as those held by our unconsolidated equity investments. We believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of our liquidity or ability to make distributions.
Net Income / (Loss) from Consolidated Properties: Net Income / (Loss) from Consolidated Properties is a non-GAAP measure equal to NOI less interest, depreciation, impairments and other corporate general administrative expenses related to consolidated properties less income attributable to non-controlling interests. We believe Net Income / (Loss) from Consolidated Properties is a useful measure for evaluating operating performance of our consolidated operating properties. Net Income / (Loss) from Consolidated Properties presented by us may not be comparable to Net Income / (Loss) from Consolidated Properties reported by other REITs that define it differently. We believe that in order to facilitate a clear understanding of our operating results, Net Income / (Loss) from Consolidated Properties should be examined in conjunction with net income as presented in our consolidated financial statements. Net Income / (Loss) from Consolidated Properties should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of our liquidity or ability to make distributions.
Whole Loan – An investment in an original mortgage loan instead of a loan comprised of one or more lenders.
Mezzanine Loan – A loan secured by an ownership interest of the entity which owns the property and which is subordinate to a first mortgage loan.
B-Note - A structured junior participation that is part of a first mortgage loan.
Rake Bond – A junior interest in a securitized mortgage loan which has been structured in one or more classes of Collateralized Mortgage Backed Securities (“CMBS”). Rake bonds are classes of CMBS issued in a transaction that solely relate to one particular mortgage loan.
Accretion of Discount - The increase in the value of an instrument such as a loan which was acquired for an amount less than face value.
SIFMA - Securities Industry and Financial Markets Association Municipal Swap Index
35
WINTHROP REALTY TRUST
INVESTOR INFORMATION
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TRANSFER AGENT
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INVESTOR RELATIONS
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Computershare
Written Requests:
P.O. Box 43078
Providence, RI 02940
phone: 800.622.6757 (U.S., Canada and Puerto Rico)
phone: 781.575.4735 (outside U.S.)
Overnight Delivery:
250 Royall Street
Canton, MA 02021
Internet Inquiries :
Investor Centre™ website at www.computershare.com/investor
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Beverly Bergman , VP of Investor Relations
Winthrop Realty Trust
Beverly Bergman
P.O. Box 9507
7 Bulfinch Place, Suite 500
Boston, MA 02114-9507
phone: 617.570.4614
fax: 617.570.4746
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ANALYST COVERAGE |
Analyst
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Firm
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Contact Information
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Joshua A. Barber
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Stifel Nicolaus
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(443) 224-1347
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jabarber@stifel.com
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Ross L. Smotrich
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Barclays Capital
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(212) 526-2306
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ross.smotrich@barcap.com
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Ryan Bennett
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Barclays Capital
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(212) 526-5309
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ryan.bennett@barclayscapital.com
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Jordan Sadler
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KeyBanc
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(917) 368-2280
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jsadler@keybanccm.com
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Craig Mailman
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KeyBanc
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(917) 368-2316
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cmailman@keybanccm.com
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Winthrop Realty Trust is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding Winthrop Realty Trust's performance made by the analyst is theirs alone and does not represent opinions forecasts or predictions of Winthrop Realty Trust or its management. Winthrop Realty Trust does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.
36