Winthrop Realty Trust Announces Results for the Quarter Ended June 30, 2007 and Invites You to Join Its Second Quarter Earnings Conference Call

BOSTON, Aug. 7 /PRNewswire-FirstCall/ -- Winthrop Realty Trust (NYSE:FUR), a real estate investment trust, announced today the financial resultsfor the second quarter ended June 30, 2007. Second Quarter Financial Highlights -- Reported net income for the quarter ended June 30, 2007 of $12,776,000, $0.16 per common share, diluted(1), compared to a net income of $3,441,000 or $0.08 per common share, diluted for the same period in 2006. -- Reported net income for the six months ended June 30, 2007 of $21,477,000 or $0.28 per common share, diluted, compared to a net income of $13,604,000 or $0.26 per common share (diluted) for the six months ended June 30, 2006. -- Reported net income for the quarter ended June 30, 2007, excluding the gain of $9,739,000 on the sale of the American First Apartment Investors ("APRO") shares and the $1,266,000 impairment of the Vision Loan, was $4,303,000 compared to net income of $3,441,000 for the same period in 2006. -- Excluding the gain on sale of available for sale securities and the impairment loss from both periods, reported net income for the six months ended June 30, 2007 of $12,761,000 compared to $6,098,000 for the same period in 2006. -- Funds from Operations ("FFO")(2) for the three months ended June 30, 2007 was $17,664,000 or $0.20 per common share, diluted, compared to $7,926,000 or $0.12 per common share, diluted for the same period in 2006. -- FFO for the six months ended June 30, 2007 of $30,416,000 or $0.35 per common share, diluted, compared to $22,589,000 or $0.35 per common share, diluted, for the six months ended June 30, 2006. -- Total market capitalization at June 30, 2007 of approximately $938,315,000 (based on the New York Stock Exchange closing price of the Company's common shares on June 29, 2007) assuming the conversion of the Company's Series B-1 Preferred Shares and including the principal balance of the total debt outstanding at June 30, 2007). At June 30, 2007, the Company had approximately $331,274,000 of debt outstanding, equating to a debt to market capitalization ratio of 35%. -- Declared a regular quarterly dividend of $0.06 per common share which was paid on July 16, 2007 to common shareholders of record on June 30, 2007 (1) See Additional Information and Supplemental Data for calculation (2) See last page of this press release for a reconciliation of FAAP Net Income to Company FFO Second Quarter Transactions and Recent Events Acquisitions -- On April 17, 2007, the Trust acquired, through a joint venture with Sealy & Company Inc., ("Sealy") 13 light distribution and service center properties in Nashville, Tennessee. The purchase price for the properties was $87,200,000 which was financed through $65,383,000 of net proceeds net of a first mortgage loan from a third party and a $3,600,000 bridge loan from Sealy. Each of the Trust and Sealy contributed $9,307,000 for a 50% ownership in the joint venture. The Trust accounts for this investment using the equity method of accounting. -- On May 25, 2007, Lex-Win Acquisition LLC ("Lex-Win"), an entity in which the Trust holds a 28% ownership interest, commenced a tender offer to acquire up to 45,000,000 shares of common stock in Wells Real Estate Investment Trust, Inc. ("Wells") at a price per share of $9.30. The tender offer expired on July 20, 2007 at which time Lex-Win had received tenders for approximately 4,800,000 shares representing approximately 1% of the outstanding shares in Wells. The Trust accounts for this investment using the equity method of accounting. -- On June 20, 2007, the Trust made a $17,669,000 first mortgage bridge loan collateralized by a newly acquired property in the Marc Realty portfolio located at 180 North Michigan Avenue, Chicago, Illinois. The loan bears interest at 7.32% per annum, requires monthly payments of interest only and matures on June 20, 2008. The Trust accounts for this investment as a preferred equity investment. Loan Satisfaction/Dispositions -- On May 16, 2007, the Toy Building loan, an asset held in a venture in which the Trust owned a one-third interest was repaid in full. After satisfying the venture's loan obligation which was collateralized by the venture's interest in the Toy Building and which bore interest at a variable rate, the Trust received a return of its initial invested capital of $9,800,000 together with $562,000 on account of its priority interest. -- On June 26, 2007, the Trust sold in market transactions 793,956 common shares of APRO, constituting substantially all shares held by the Trust in APRO, for a per share price of $25.02 resulting in net proceeds of approximately $19,817,000. The sale generated a gain of approximately $9,739,000 exclusive of dividends on such shares. Financings -- On May 24, 2007, WRT-Vision Creekwood, LLC, a venture in which the Trust holds a 90% interest, obtained a $5,846,000 loan from an unaffiliated third party lender. The lender has also committed to increase the loan to $7,000,000 to fund future capital improvements. The loan is collateralized by WRT-Vision Creekwood's property located in Kansas City, Kansas and bears interest at 7.042%. The loan requires monthly payments of interest only and is scheduled to mature on June 1, 2012. -- On June 18, 2007, four properties which are part of the Marc Realty portfolio obtained first mortgage loans aggregating $56,798,000 with a weighted average interest rate of 6.34%. Approximately $4,800,000 of the loan proceeds were used to satisfy a portion of the Trust's 7.65% convertible mezzanine loans reducing the mezzanine loans held by the Trust with respect to these properties to $5,300,000. The Trust holds a 50% participating interest in the residual interest in each of these properties. -- On June 26, 2007, a property included in the Trust's net lease properties commonly referred to as the Finova portfolio obtained a $40,200,000 loan from an unaffiliated third party lender. The loan is collateralized by the Trust's property located in Orlando, Florida and bears interest at 6.4%. The loan requires monthly payments of principal and interest and is scheduled to mature on July 1, 2017, at which time the outstanding principal balance is expected to be approximately $34,064,000. Approximately $40,000,000 of the loan proceeds were used to reduce the Finova portfolio's outstanding mortgage loan balance, which carried a higher interest rate and reduced the Trust's exposure to floating interest rates. Dividend Increase -- On August 1, 2007, the Board of Trustees voted to increase the quarterly dividend payable on the Trust's Common Shares by 8.3% from $0.06 to $0.065 per share beginning with the 3rd quarter 2007 dividend 2nd QUARTER 2007 CONFERENCE CALL On Thursday, August 9, 2007, at 2:00 p.m. Eastern Time, Winthrop willhost its first conference call to discuss its results for the quarter endedJune 30, 2007. Winthrop's remarks will be followed by a question and answerperiod. Interested parties may participate in this conference call bydialing (877) 407-9205 or (201) 689-8054. A taped replay of the call willbe available through September 10, 2007 at (877) 660-6853, account #286,confirmation #248213. A live web cast (listen-only mode) of the conference call will beavailable at http://www.winthropreit.com within the Investor Relations section. Anonline replay will also be available through September 30, 2007. Additional Information and Supplemental Data Winthrop Realty Trust is a real estate investment trust engaged in theownership and management of, and lending to, real estate and relatedinvestments. Winthrop Realty Trust is listed on the New York Stock Exchangeand trades under the symbol "FUR." It has executive offices in Boston,Massachusetts and Jericho, New York. Financial results from the three and six months ended June 30, 2007 and2006 as follows: (in thousands, except per-share data) For the Three For the Six Months Months Ended Ended June 30, June 30, (unaudited) (unaudited) 2007 2006 2007 2006 Revenues $14,844 $13,223 $28,913 $25,021 Income from continuing operations $12,730 $3,409 21,380 $13,548 Income from discontinued operations 46 32 97 56 Net income applicable to Common Shares of Beneficial Interest $12,776 $3,441 $21,477 $13,604 Basic weighted-average Common Shares 65,661 43,858 65,590 41,173 Convertible Preferred Shares - - - 23,169 Stock options 66 61 67 60 Diluted weighted-average Common Shares 65,727 43,919 65,657 64,402 Per Share - Diluted: Income from continuing operations $0.16 $0.08 $0.28 $0.26 Income from discontinued operations 0.00 0.00 0.00 0.00 Net income applicable to Common Shares of Beneficial Interest dilutive $0.16 $0.08 $0.28 $0.26 Company Funds from Operations For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, 2007 2006 2007 2006 Net income $12,776 $3,441 $21,477 $13,604 Real estate depreciation 1,565 1,369 3,070 2,869 Amortization of capitalized leasing costs 1,628 1,234 2,683 2,374 Real estate depreciation and amortization of unconsolidated interests 662 981 1,028 1,951 Less: Minority interest share of depreciation and amortization (798) (721) (1,504) (1,453) Interest expense on Series B-1 Preferred Shares 1,831 1,622 3,662 3,244 Funds from operations applicable to Common Shares plus assumed conversions of Convertible Preferred Shares $17,664 $7,926 $30,416 $ 22,589 Basic weighted-average Common Shares 65,661 43,858 65,590 41,173 Convertible Preferred Shares (1) 22,167 22,167 22,167 23,169 Stock options 66 61 66 60 Diluted weighted-average Common Shares 87,894 66,086 87,823 64,402 Funds from operations per share - diluted $0.20 $0.12 $0.35 $0.35 (1) Most industry analysts and equity REITs, including the Trust, generally consider funds from operations ("FFO") to be an appropriate supplemental measure of the performance of an equity REIT. The Trust has adopted the revised definition of FFO adopted by the Board of Governors of the National Association of Real Estate Investment Trusts which defines FFO as net income applicable to common shares before depreciation and amortization, extraordinary items, cumulative effect of accounting changes, gains on sales of operating real estate, plus the pro-rata amount of depreciation and amortization of unconsolidated joint ventures, net of minority interests, determined on a consistent basis. Given the nature of the Trust's business as a real estate owner and operator, the Trust believes that to further understand our performance, FFO should be considered in conjunction with our reported net income and considered in addition to cash flows in accordance with generally accepted accounting principles, as presented in our consolidated financial statements. FFO does not represent cash generated from operating activities in accordance with generally accepted accounting principles and therefore should not be considered an alternative for net income as a measure of liquidity. In addition, the comparability of the Company's FFO with the FFO reported by other REITs may be affected by the differences that exist regarding certain accounting policies relating to expenditures for repairs and other recurring items. Other Selected Financial Data: (in thousands) June 30, 2007 December 31, (unaudited) 2006 Total Assets(1) $790,456 $851,620 Total liabilities $447,466 $497,983 Minority interest 10,151 30,051 Total shareholders' equity 332,839 323,586 Total liabilities and shareholders' equity $790,456 $851,620 (1) The decrease in total assets relates primarily to the satisfaction of the Toy Loan receivable and corresponding satisfaction of the Toy Loan payable and distribution to the minority interest. Further details regarding the Company's results of operations,properties, and tenants are available in the Company's Quarterly Reportfiled on Form 10-Q for the quarter ended June 30, 2007 which will be filedwith the Securities and Exchange Commission and will be available fordownload at the Company's website http://www.winthropreit.com or at the Securitiesand Exchange Commission website http://www.sec.gov. "Safe Harbor" Statement under the Private Securities Litigation ReformAct of 1995. With the exception of the historical information contained inthis news release, the matters described herein contain "forward-looking"statements that involve risk and uncertainties that may individually orcollectively impact the matters herein described. These are detailed fromtime to time in the "Risk Factors" section of the Company's SEC reportsincluding the annual report on Form 10-K for the year ended December 31,2006. Further information relating to the Company's financial position,results of operations, and investor information is contained in our annualand quarterly reports filed with the SEC and available for download at ourwebsite http://www.winthropreit.com or at the SEC website http://www.sec.gov.