~Reports FFO of $0.51 Per Common Share
~ ~Reports Earnings of $0.27 Per Common
Share~ Declares Fourth Quarter 2013
Dividends
Winthrop Realty Trust (NYSE:FUR), a leading real estate value
investor, today announced financial and operating results for the
third quarter ended September 30, 2013. All per share amounts are
on a diluted basis.
Financial Results
Three Months Ended September 30, 2013
Net income applicable to common shares for the quarter ended
September 30, 2013 was $8.8 million or $0.27 per common share as
compared with net income of $12.3 million or $0.37 per common share
for the quarter ended September 30, 2012.
For the quarter ended September 30, 2013, Winthrop reported
Funds from Operations ("FFO") applicable to common shares of $17.1
million or $0.51 per common share as compared with FFO of $19.3
million or $0.58 per common share for the third quarter of
2012.
Nine Months Ended September 30, 2013
Net income applicable to common shares for the nine months ended
September 30, 2013 was $25.3 million or $0.76 per common share as
compared with net income of $20.2 million or $0.61 per common share
for the same period ended September 30, 2012.
FFO for the nine months ended September 30, 2013 was $37.5
million or $1.13 per common share as compared with FFO of $41.5
million, or $1.25 per common share for the nine months ended
September 30, 2012.
Net Asset Value as of September 30, 2013 and Performance
Table
Winthrop's estimated range of net asset value per common share
("NAV") at September 30, 2013 was $12.98 to $14.29 as compared to
$13.02 to $15.37 at June 30, 2013. The decline in NAV reflects the
additional common shares issued in September 2013. Winthrop's
quarterly supplemental report contains an investment performance
table that presents the internal rate of return for each investment
made and sold or otherwise liquidated since January 1, 2008. The
pooled weighted internal rate of return on these investments is
31%. Details regarding the methodology used to calculate the
internal rate of return and the net asset value as well as
financial results, properties and tenants can be accessed in the
quarterly supplemental report at www.winthropreit.com in the
Investor Relations section.
2013 Third Quarter Activity and Subsequent
Events
Third Quarter
- Agreed to increase its financial commitment to the 701 Seventh
Avenue, New York Times Square venture from $68.0 million up to
$120.0 million and to participate in the future hotel development.
In connection with this increased commitment, Winthrop contributed
an additional $22.1 million to the venture. To date, Winthrop has
contributed $52.8 million to the venture, reducing Winthrop's
future funding commitment to $67.2 million.
- Acquired the 50% interest in the mezzanine loan indirectly
secured by the property located at One South State Street, Chicago,
Illinois that was held by Winthrop's venture partner for $30.0
million. Winthrop now holds 100% of the mezzanine loan that
has an outstanding balance of principal and accrued interest of
approximately $56.2 million and bears interest at 15% per
annum. Both Winthrop and its partner, through a joint venture,
continue to each hold an approximately 35% equity interest in the
venture that holds the property ("Sullivan JV").
- Received payments of approximately $5.6 million on its
Queensridge Tower loan from the sale of several of the Queensridge
condominium units.
- Sold the One Riverwalk property located in San Antonio, Texas
owned by Winthrop's CDH CDO venture. After satisfying the
existing third party debt, Winthrop received net proceeds of
approximately $4.4 million.
- Sold its Seabrook, Texas property to an independent third party
for gross sale proceeds of $3.3 million, resulting in net proceeds
of approximately $3.2 million, an amount in excess of Winthrop's
most recent net asset value range for the property of $2.556
million to $2.875 million.
- Sold its Denton, Texas property to an independent third party
for a gross sales price of $1.85 million, resulting in net proceeds
of approximately $1.7 million. Winthrop's most recent net
asset value range for this property was $1.725 million to $1.913
million.
- Concord CDO satisfied its leverage ratio tests and, as a
result, again began making distributions to Concord CDO's junior
tranches of bonds and its equity holder, CDH CDO LLC, a venture in
which Winthrop holds a 49% interest.
- Extended the triple net lease with Ingram Micro, the tenant
occupying all 200,000 square feet of office space at Winthrop's
Amherst, New York property, through October 31, 2023 and repaid the
$15.0 million debt collateralized by the property.
- Received proceeds of $13.3 million on an investment of $10.8
million from the payoff at par of the loan held in its 33.3% owned
Metrotech venture, resulting in a 38% IRR.
- Closed a public offering of 2.75 million common shares at a
price of $11.45 per common share, before underwriter's
discounts. Winthrop received net proceeds of approximately
$30.0 million after underwriter's discounts and offering
expenses.
Subsequent Events
- Acquired four recently constructed Class A luxury high rise
apartment buildings containing an aggregate of 761 units for a
purchase price of $246.0 million (the "Portfolio
Acquisition"). The properties are located in Phoenix,
Arizona; San Pedro, California; Stamford, Connecticut; and Houston,
Texas. All of the properties were designed and constructed to
condominium standards.
- Subsequent to closing, a subsidiary of New Valley, LLC
contributed approximately $16.4 million to the entity that acquired
the properties in exchange for an approximately 16.3% interest in
such entity. Winthrop retained the remaining 83.7% interest.
- Obtained in connection with the Portfolio Acquisition a $150.0
million loan that bears interest at a rate of LIBOR plus 200 basis
points (subject to adjustment), requires payments of interest only
and has an initial term of three years with two, one-year
extensions.
- Refinanced the existing $110.6 million mortgage loan made to
the Sullivan JV which was secured by the 942,000 square foot office
and retail property located at One South State Street, in downtown
Chicago, Illinois that bore interest at 11% per annum. The new
$113.5 million loan bears interest at a rate of 3.95% per annum,
requires payments of interest only and matures November 2018.
- Acquired through an 80% owned venture, a 184-unit garden
apartment complex originally built in 1984 known as Summit Pointe
Apartments located in Oklahoma City, Oklahoma. Winthrop
contributed approximately $4.9 million to the
venture. Pursuant to the terms of the venture agreement,
Winthrop will hold a preferred equity interest which entitles
Winthrop to an 8% preferred return from cash flow and, upon
disposition of the property, a minimum preferred return equal to a
12% IRR.
- Received a partial repayment of $6.3 million on its $6.5
million preferred equity investment in the venture that acquired a
62,150 square foot office building in Sorrento Mesa (San Diego),
California. Winthrop retains the balance of its preferred
investment along with a 50% equity interest in the property.
Fourth Quarter 2013 Dividend Declarations
The Company's Board of Trustees is declaring a regular quarterly
cash dividend for the fourth quarter of 2013 of $0.1625 per common
share payable on January 15, 2014 to common shareholders of record
on December 31, 2013.
The Company's Board of Trustees is also declaring a regular
quarterly cash dividend for the fourth quarter of 2013 of $0.578125
per Series D preferred share payable on December 31, 2013 to Series
D preferred shareholders of record on December 13, 2013.
Conference Call Information
The Company will host a conference call to discuss its third
quarter 2013 results today, Thursday, November 7, 2013 at 12:00 pm
Eastern Time. Interested parties may access the live call by
dialing (877) 407-9205 or (201) 689-8054, or via the Internet at
www.winthropreit.com within the News and Events section. An online
replay will be available for one year. A replay of the call
will be available through December 6, 2013 by dialing (877)
660-6853; account #286, confirmation #420064.
About Winthrop Realty Trust
Winthrop Realty Trust, headquartered in Boston, Massachusetts,
is a NYSE-listed real estate investment trust (REIT) focused on
acquiring, owning, operating and investing in real property as well
as real estate collateralized debt, REIT preferred and common
stock. For more information, please visit our web-site at
www.winthropreit.com.
Forward-Looking Statements
"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 filings with the Securities and Exchange Commission,
copies of which may be obtained from the Company or the Securities
and 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 most recent Annual Report on Form
10-K, 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.
Financial Results
Financial results for the three and nine months ended September
30, 2013 and 2012 are as follows (in thousands except per share
amounts):
| |
For the Three
Months Ended September 30, |
For the Nine
Months Ended September 30, |
| |
2013 |
2012 |
2013 |
2012 |
| |
(Unaudited) |
(Unaudited) |
| Revenue |
|
|
|
|
| Rents and reimbursements |
$ 15,099 |
$ 12,224 |
$ 45,026 |
$ 35,022 |
| Interest, dividends and discount
accretion |
3,917 |
3,722 |
13,545 |
15,018 |
| |
19,016 |
15,946 |
58,571 |
50,040 |
| Expenses |
|
|
|
|
| Property operating |
5,272 |
3,335 |
14,697 |
10,643 |
| Real estate taxes |
1,705 |
1,160 |
4,184 |
3,116 |
| Depreciation and amortization |
4,923 |
4,416 |
14,703 |
11,623 |
| Interest |
5,435 |
4,416 |
18,175 |
11,560 |
| General and administrative |
1,113 |
782 |
3,058 |
2,447 |
| Related party fees |
2,309 |
2,316 |
6,866 |
6,641 |
| Transaction costs |
106 |
30 |
158 |
335 |
| State and local taxes |
85 |
64 |
227 |
211 |
| |
20,948 |
16,519 |
62,068 |
46,576 |
| Other income (loss) |
|
|
|
|
| |
|
|
|
|
| Equity in income of equity
investments |
13,856 |
12,809 |
26,249 |
14,051 |
| Earnings from preferred equity
investments |
189 |
-- |
576 |
-- |
| Realized gain (loss) on sale of
securities carried at fair value |
(31) |
-- |
(133) |
41 |
| Unrealized gain (loss) on securities
carried at fair value |
-- |
3,113 |
(142) |
7,254 |
| Unrealized gain on loan securities
carried at fair value |
-- |
371 |
215 |
447 |
| Settlement expense |
(16) |
-- |
(150) |
-- |
| Interest income |
101 |
242 |
286 |
433 |
| |
14,099 |
16,535 |
26,901 |
22,226 |
| |
|
|
|
|
| Income from continuing operations |
12,167 |
15,962 |
23,404 |
25,690 |
| |
|
|
|
|
| Discontinued operations |
|
|
|
|
| (Loss) income from discontinued
operations |
(1,434) |
85 |
8,025 |
594 |
| Net income |
10,733 |
16,047 |
31,429 |
26,284 |
| Net loss (income) attributable to
non-controlling interests |
995 |
(939) |
2,419 |
435 |
| Net income attributable to Winthrop
Realty Trust |
11,728 |
15,108 |
33,848 |
26,719 |
| Preferred dividends on Series D Preferred
Shares |
(2,787) |
(2,786) |
(8,360) |
(6,498) |
| Amount allocated to restricted
shares |
(106) |
-- |
(235) |
-- |
| Net income attributable to Common
Shares |
$ 8,835 |
$ 12,322 |
$ 25,253 |
$ 20,221 |
| |
|
|
|
|
| Per Common Share Data –
Basic |
|
|
|
|
| Income from continuing operations |
$ 0.31 |
$ 0.37 |
$ 0.52 |
$ 0.59 |
| Income (loss) from discontinued
operations |
(0.04) |
-- |
0.24 |
0.02 |
| Net income attributable to Winthrop Realty
Trust |
$ 0.27 |
$ 0.37 |
$ 0.76 |
$ 0.61 |
| |
|
|
|
|
| Per Common Share Data –
Diluted |
|
|
|
|
| Income from continuing operations |
$ 0.31 |
$ 0.37 |
$ 0.52 |
$ 0.59 |
| Income (loss) from discontinued
operations |
(0.04) |
-- |
0.24 |
0.02 |
| Net income attributable to Winthrop Realty
Trust |
$ 0.27 |
$ 0.37 |
$ 0.76 |
$ 0.61 |
| |
|
|
|
|
| Basic Weighted-Average Common
Shares |
33,076 |
33,075 |
33,047 |
33,064 |
| Diluted Weighted-Average Common
Shares |
33,148 |
33,076 |
33,089 |
33,064 |
| |
|
|
|
|
| Comprehensive income |
|
|
|
|
| Net income |
$ 10,733 |
$ 16,047 |
$ 31,429 |
$ 26,284 |
| Change in unrealized loss on interest
rate derivative |
(150) |
(16) |
(20) |
(73) |
| Consolidated comprehensive income |
10,583 |
16,031 |
31,409 |
26,211 |
| Net loss (income) attributable to
non-controlling interest |
995 |
(939) |
2,419 |
435 |
| Other comprehensive income attributable
to non-controlling interest |
-- |
-- |
-- |
-- |
| Comprehensive loss (income) attributable to
non-controlling interest |
995 |
(939) |
2,419 |
435 |
| Comprehensive income attributable to
Winthrop Realty Trust |
$ 11,578 |
$ 15,092 |
$ 33,828 |
$ 26,646 |
| Dividend declared per Common
Share |
$ 0.1625 |
$ 0.1625 |
$ 0.4875 |
$ 0.4875 |
Funds From Operations:
The following presents a reconciliation of net income to funds
from operations ("FFO") for the three and nine months ended
September 30, 2013 and 2012 (in thousands, except per share
amounts):
| |
For the Three Months
Ended September 30, |
For the Nine Months
Ended September 30, |
| |
2013 |
2012 |
2013 |
2012 |
| |
(Unaudited) |
(Unaudited) |
| Net income attributable to Winthrop Realty
Trust |
$ 11,728 |
$ 15,108 |
$ 33,848 |
$ 26,719 |
| Real estate depreciation |
3,153 |
2,903 |
9,665 |
8,165 |
| Amortization of capitalized leasing
costs |
1,791 |
2,169 |
5,626 |
5,106 |
| Trust's share of real estate depreciation and
amortization of unconsolidated interests |
2,762 |
2,976 |
7,471 |
10,630 |
| Impairment loss on investments in real
estate |
2,750 |
698 |
2,904 |
698 |
| Gain on sale of real estate |
(1,421) |
(945) |
(10,948) |
(945) |
| (Gain) loss on sale of equity
investments |
-- |
(165) |
110 |
(271) |
| Trust's share of loss on sale of real estate
of unconsolidated interests |
722 |
-- |
722 |
-- |
| Less: Non-controlling interest share of real
estate depreciation and amortization |
(1,504) |
(699) |
(3,242) |
(2,144) |
| |
|
|
|
|
| Funds from operations attributable to the
Trust |
19,981 |
22,045 |
46,156 |
47,958 |
| Preferred dividends on Series D Preferred
Shares |
(2,787) |
(2,786) |
(8,360) |
(6,498) |
| Amount allocated to restricted shares |
(129) |
-- |
(269) |
-- |
| FFO applicable to Common
Shares-Basic |
$ 17,065 |
$ 19,259 |
$ 37,527 |
$ 41,460 |
| |
|
|
|
|
| Weighted-average Common
Shares |
33,076 |
33,075 |
33,047 |
33,064 |
| |
|
|
|
|
| FFO Per Common
Share-Basic |
$ 0.52 |
$ 0.58 |
$ 1.14 |
$ 1.25 |
| |
|
|
|
|
| Diluted |
|
|
|
|
| Funds from operations attributable to the
Trust |
$ 19,981 |
$ 22,045 |
$ 46,156 |
$ 47,958 |
| Preferred dividends on Series D Preferred
Shares |
(2,787) |
(2,786) |
(8,360) |
(6,498) |
| Amount allocated to restricted shares |
(129) |
-- |
(269) |
-- |
| FFO applicable to Common
Shares |
$ 17,065 |
$ 19,259 |
$ 37,527 |
$ 41,460 |
| |
|
|
|
|
| Weighted-average Common Shares |
33,076 |
33,075 |
33,047 |
33,064 |
| Stock options |
2 |
1 |
2 |
-- |
| Restricted shares |
70 |
-- |
40 |
-- |
| Diluted weighted-average Common
Shares |
33,148 |
33,076 |
33,089 |
33,064 |
| FFO Per Common Share -
Diluted |
$ 0.51 |
$ 0.58 |
$ 1.13 |
$ 1.25 |
FFO is computed in accordance with the definition adopted by the
Board of Governors of the National Association of Real Estate
Investment Trusts ("NAREIT"). Winthrop calculates FFO by adjusting
net income (loss) (computed in accordance with accounting
principles generally accepted in the United States ("GAAP"),
including non-recurring items), for gains (or losses) from sales of
properties, impairments, real estate related depreciation and
amortization, and adjustment for unconsolidated partnerships and
ventures. FFO and FFO per diluted share are used by
management, investors and industry analysts as supplemental
measures of operating performance of equity REITs. FFO and FFO per
diluted share should be evaluated along with GAAP net income and
income per diluted share (the most directly comparable GAAP
measures), as well as cash flow from operating activities,
investing activities and financing activities, in evaluating the
operating performance of equity REITs. FFO and FFO per
diluted share exclude the effect of depreciation, amortization and
gains or losses from sales of real estate, all of which are based
on historical costs which implicitly assumes that the value of real
estate diminishes predictably over time. Since real estate
values instead have historically risen or fallen with market
conditions, these non-GAAP measures can facilitate comparisons of
operating performance between periods and among other equity REITs.
FFO does not represent cash generated from operating activities in
accordance with GAAP and is not necessarily indicative of cash
available to fund cash needs as disclosed in the Company's
Consolidated Statements of Cash Flows. FFO should not be
considered as an alternative to net income as an indicator of the
Company's operating performance or as an alternative to cash flows
as a measure of liquidity.
Consolidated Balance Sheets: (in
thousands, except share data)
| |
September 30, |
December 31, |
| |
2013 |
2012 |
| |
(Unaudited) |
(Unaudited) |
| ASSETS |
|
|
| Investments in real estate, at cost |
|
|
| Land |
$ 56,894 |
$ 43,252 |
| Buildings and improvements |
380,240 |
378,737 |
| |
437,134 |
421,989 |
| Less: accumulated depreciation |
(55,195) |
(51,553) |
| Investments in real estate, net |
381,939 |
370,436 |
| |
|
|
| Cash and cash equivalents |
165,762 |
97,682 |
| Restricted cash held in escrows |
19,084 |
13,250 |
| Loans receivable, net |
108,163 |
211,250 |
| Secured financing receivable |
30,395 |
-- |
| Accounts receivable, net of allowances of
$478 and $374, respectively |
997 |
1,418 |
| Accrued rental income |
19,205 |
17,241 |
| Securities carried at fair value |
7,074 |
19,694 |
| Loan securities carried at fair
value |
226 |
11 |
| Preferred equity investments |
12,703 |
12,250 |
| Equity investments |
139,061 |
134,859 |
| Lease intangibles, net |
48,774 |
37,744 |
| Deferred financing costs, net |
4,546 |
4,864 |
| Other Assets |
28,135 |
2,464 |
| Assets held for sale |
2,421 |
-- |
| TOTAL ASSETS |
$ 968,485 |
$ 923,163 |
| |
|
|
| LIABILITIES |
|
|
| Mortgage loans payable |
308,049 |
280,576 |
| Senior notes payable |
86,250 |
86,250 |
| Secured financings |
29,150 |
52,920 |
| Notes payable |
1,664 |
1,676 |
| Accounts payable, accrued liabilities and
other liabilities |
21,522 |
21,056 |
| Related party fees payable |
2,693 |
2,664 |
| Dividends payable |
8,804 |
5,366 |
| Deferred income |
995 |
1,136 |
| Below market lease intangibles, net |
2,280 |
2,255 |
| TOTAL LIABILITIES |
461,407 |
453,899 |
| |
|
|
| COMMITMENTS AND
CONTINGENCIES |
|
|
| |
|
|
| 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 both issued and outstanding at
September 30, 2013 and December 31, 2012 |
120,500 |
120,500 |
| Common Shares, $1 par, unlimited shares
authorized; 36,397,949 and 33,018,711 both issued and outstanding
at September 30, 2013 and December 31, 2012, respectively |
35,798 |
33,019 |
| Additional paid-in capital |
646,620 |
618,426 |
| Accumulated distributions in excess of
net income |
(308,661) |
(317,385) |
| Accumulated other comprehensive loss |
(70) |
(50) |
| Total Winthrop Realty Trust Shareholders'
Equity |
494,187 |
454,510 |
| Non-controlling interests |
12,891 |
14,754 |
| Total Equity |
507,078 |
469,264 |
| TOTAL LIABILITIES AND
EQUITY |
$ 968,485 |
$ 923,163 |
Further details regarding the Company's results of operations,
properties, joint ventures and tenants are available in the
Company's Form 10-Q for the quarter ended September 30, 2013 which
will be filed with the Securities and Exchange Commission and will
be available for download at the Company's website
www.winthropreit.com or at the Securities and Exchange Commission
website www.sec.gov.
CONTACT: AT THE COMPANY
John Garilli
Chief Financial Officer
(617) 570-4614
Grafico Azioni Winthrop (NYSE:FUR)
Storico
Da Lug 2024 a Ago 2024
Grafico Azioni Winthrop (NYSE:FUR)
Storico
Da Ago 2023 a Ago 2024
