Winthrop Realty Trust Announces Impairments and Loan Reserves Taken by Lex-Win Concord...

Wed Feb 25, 2009 7:35am EST

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Winthrop Realty Trust Announces Impairments and Loan Reserves Taken by Lex-Win
Concord LLC for Quarter and Full Year Ended December 31, 2008

BOSTON, Feb. 25 /PRNewswire-FirstCall/ -- Winthrop Realty Trust (NYSE: FUR)
announced today that Lex-Win Concord LLC ("Concord"), its debt platform
venture with Lexington Realty Trust has recognized with respect to its loan
receivables and bonds for the quarter and year ended December 31, 2008 (1)
other than temporary impairments of $16,811,000 and $73,832,000, respectively,
and (2) loan reserves of $22,853,000 and $31,053,000, respectively. As a
result of the charges Concord reported a loss for the quarter ended and year
ended December 31, 2008 of $32,509,000 and $60,414,000, respectively. Winthrop
accounts for its investment using the equity method of accounting.
Accordingly, Winthrop recognizes its proportional share, which is equal to 50%
of this loss and will recognize a loss from its investment in Concord of
approximately $16,254,000 or $1.03 per common share on a fully diluted basis
for the quarter ended December 31, 2008 and approximately $30,207,000 or $2.03
per common share on a fully diluted basis for the year ended December 31,
2008. In addition to its recognition of its allocable share of loss from
Concord, and the corresponding reduction in Winthrop's carrying balance of its
equity investment in Concord, Winthrop is also required to assess whether its
equity interest in Concord as reported on its balance sheet is further
impaired and whether such impairment is other than temporary. The reduction of
Winthrop's carrying balance of its equity investment in Concord resulting from
Winthrop's allocable share of loss from Concord does not reflect the
additional impairment that Winthrop will recognize for the quarter and year
ended December 31, 2008 as the result of its assessment relating to other than
temporary impairment of its joint venture equity interest in Concord. Winthrop
is also assessing the appropriateness of continuing to account for its
investment in Concord using the equity method.

With respect to this additional impairment that Winthrop will recognize,
Michael L. Ashner, Chairman of Winthrop stated, "in view of the market pricing
of specialty mortgage finance companies comparable to Concord as well as the
macroeconomic uncertainties impacting debt markets in general, we believe it
is incumbent upon us to further reduce the value of our investment in Concord
in a manner which reflects these realities. We are in the process of
finalizing our opinion of value which will be provided in our upcoming
earnings release."

Winthrop Realty Trust is scheduled to release its fourth quarter and year end
2008 results on the morning of Thursday, March 5, 2009 and management's
conference call presentation with respect to such results is scheduled for
2:00 p.m. eastern time later that day.

Winthrop Realty Trust is a NYSE-listed real estate investment trust (REIT)
headquartered in Boston, Massachusetts.  Additional information on Winthrop
Realty Trust is available on its Web site at www.winthropreit.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995. The statements in this release state the company's and management's
hopes, intentions, beliefs, expectations or projections of the future and are
forward-looking statements for which the company claims the protections of the
safe harbor for forward-looking statements under the Private Securities
Litigation Reform Act of 1995. It is important to note that future events and
the company's actual results could differ materially from those described in
or contemplated by such forward-looking statements. Factors that could cause
actual results to differ materially from current expectations include, but are
not limited to, (i) general economic conditions, (ii) the inability of major
tenants to continue paying their rent obligations due to bankruptcy,
insolvency or general downturn in their business, (iii) local real estate
conditions, (iv) increases in interest rates, (v) increases in operating costs
and real estate taxes, (vi) changes in accessibility of debt and equity
capital markets and (vii) defaults by borrowers on loans. Additional
information concerning factors that could cause actual results to differ
materially from those forward-looking statements is contained from time to
time in the company's SEC filings, including but not limited to the company's
report on Form 10-K/A for the year ended December 31, 2007. Copies of each
filing may be obtained from the company or the Securities & Exchange
Commission. The company refers you to the documents filed by the company from
time to time with the Securities and Exchange Commission, specifically the
section titled "Risk Factors" in the company's Annual Report on Form 10-K/A
for the year ended December 31, 2007, as may be updated or supplemented in the
company's Form 10-Q filings, which discuss these and other factors that could
adversely affect the company's results


SOURCE  Winthrop Realty Trust

Beverly Bergman of Winthrop Realty Trust, +1-617-570-4614,
bbergman@firstwinthrop.com
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