Winthrop Realty Trust Announces Results for Fourth Quarter 2014
05 Marzo 2015 - 2:00PM
Winthrop Realty Trust (NYSE:FUR) (the "Company" or "Winthrop"),
which is liquidating and winding down pursuant to a plan of
liquidation, announced today its financial and operating results
for the fourth quarter ended December 31, 2014.
Financial Results
Liquidation Basis of Accounting
As a result of the shareholder approval of the plan of
liquidation on August 5, 2014, effective August 1, 2014, in
accordance with Generally Accepted Accounting Principles ("GAAP"),
the Company began reporting its financial results on the
liquidation basis of accounting. The liquidation basis of
accounting requires, among other things, that management estimate
sales proceeds on an undiscounted basis as well as include in the
Company's assets and liabilities the undiscounted estimate of
future revenues and expenses of the Company. The estimated net
assets in liquidation at December 31, 2014 would result in
liquidating distributions of approximately $16.33 per common share.
This estimate of future liquidating distributions includes
projections of costs and expenses to be incurred during the period
required to complete the plan of liquidation. There is inherent
uncertainty with these projections and, accordingly, these
projections could change materially based on a number of factors
both within and outside of Winthrop's control including the timing
of the sales, the performance of the underlying assets and any
changes in the underlying assumptions of projected cash flows.
After giving effect to the $2.25 per common share distribution
which was paid on January 15, 2015 and accrued at December 31,
2014, this estimate represents an increase in liquidating
distributions of $0.23 per common share over the Company's estimate
at September 30, 2014. The increase is primarily the result of
increased liquidation values for our investments in Concord Debt
Holdings and CDH CDO offset by decreases in liquidation values of
our investments in Vintage Housing Holdings and our Edens-Norridge
loan receivable due to shorter than anticipated holding periods. No
change has been made to the valuation of the Company's investment
in 701 Times Square.
Michael L. Ashner, Chairman and CEO stated, "We continue to be
pleased at both the speed with which the plan of liquidation is
proceeding and the pricing levels which we are encountering. We see
no reason for these trends to change in the near term."
2014 Fourth Quarter Activity and Subsequent
Events
Assets Sold
- 1515 Market Street – Philadelphia, Pennsylvania – sold its
office property located at 1515 Market Street, Philadelphia,
Pennsylvania and received net proceeds from the sale of
approximately $40.3 million.
- San Pedro Luxury Apartments - the venture in which Winthrop
holds an approximately 84% interest sold its San Pedro apartment
building in San Pedro, California. The entire net proceeds of $23.1
million were used to pay down the $150.0 million loan made by
KeyBank National Association to the venture in accordance with the
terms of the loan agreement.
- Waterford Place Apartments – sold its Waterford Place apartment
building in Memphis, Tennessee and received net proceeds from the
sale of approximately $15.3 million.
- 5400 Westheimer – sold its interest in the venture that owns
the property located at 5400 Westheimer Court, Houston, Texas and
received net proceeds from the sale, together with the satisfaction
of a note payable due to Winthrop from the venture, of
approximately $10.7 million.
- Sealy Northwest Atlanta – sold to its venture partner its
interest in Sealy Northwest Atlanta and received net proceeds from
the sale of approximately $5.6 million.
- Pinnacle II B-Note – sold the B-Note with an outstanding
principal balance of $5.0 million for net proceeds of approximately
$5.0 million.
- Burlington, Vermont – sold its office property located in South
Burlington, Vermont and received net proceeds from the sale of
approximately $2.5 million.
- Kroger - Louisville, Kentucky – sold its property in
Louisville, Kentucky that is net leased to Kroger Foods and
received net proceeds from the sale of approximately $2.3
million.
- Kroger - Greensboro, North Carolina – sold its property in
Greensboro, North Carolina that is net leased to Kroger Foods and
received net proceeds from the sale of approximately $1.7
million.
- Kroger - Atlanta, Georgia – sold its property in Atlanta,
Georgia that is net leased to Kroger Foods and received net
proceeds from the sale of approximately $1.5 million.
Loans Repaid
- Playa Vista – received approximately $34.0 million from the
payment in full on the mezzanine loan secured by the office complex
in Playa Vista, California and the equity participation interest in
the underlying collateral.
- Edens Center-Norridge Commons – received a principal payment of
$15.3 million in connection with the sale of the Norridge Commons
property leaving an outstanding principal balance of $220,000.
Assets Under Contract for Sale
- Vintage Housing Holdings – entered into an agreement to sell
its interest. The sale, which is subject to customary
conditions, including obtaining certain third party consents, is
expected to close, if at all, in the second quarter of
2015. Winthrop estimates that the net proceeds from the sale
will be approximately $85.6 million.
- 44 Monroe – the venture in which Winthrop holds an
approximately 84% interest entered into an agreement to sell its 44
Monroe apartment building in Phoenix, Arizona for approximately
$50.7 million. In accordance with the terms of the loan
agreement, the entire net proceeds will be used to further pay down
the $150.0 million loan made by KeyBank National Association which
has a current outstanding balance of $126.9 million.
Common Shares
- On January 15, 2015 paid a liquidating distribution of $2.25
per common share to shareholders of record on January 5, 2015.
Conference Call Information
The Company will host a conference call to discuss its fourth
quarter 2014 activities today, Thursday, March 5, 2015 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 April 6, 2015 by dialing (877)
660-6853; conference ID 13599663.
About Winthrop Realty Trust
Winthrop, headquartered in Boston, Massachusetts, is a
NYSE-listed real estate investment trust (REIT). Winthrop's
shareholders recently adopted a plan of liquidation pursuant to
which Winthrop is liquidating and winding down and, in connection
therewith, is seeking to sell its assets in an orderly fashion to
maximize shareholder value. For more information, please visit
our website 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.
CONSOLIDATED STATEMENT OF
NET ASSETS |
(Liquidation
Basis) |
(unaudited, in
thousands) |
|
|
|
December 31, |
|
2014 |
ASSETS |
|
Investments in real estate |
$ 557,325 |
Equity investments |
389,921 |
Cash and cash equivalents |
127,583 |
Restricted cash held in escrows |
5,831 |
Loans receivable |
24,005 |
Secured financing receivable |
29,210 |
Accounts receivable |
1,468 |
Loan securities |
918 |
TOTAL ASSETS |
1,136,261 |
|
|
LIABILITIES |
|
Mortgage loans payable |
296,954 |
Senior notes payable |
71,265 |
Liability for non-controlling interests |
46,564 |
Liability for estimated costs in excess of
estimated receipts during liquidation |
31,253 |
Dividends payable |
82,353 |
Accounts payable, accrued liabilities and
other liabilities |
10,794 |
Related party fees payable |
2,374 |
TOTAL LIABILITIES |
541,557 |
|
|
COMMITMENTS AND
CONTINGENCIES |
|
Net assets in liquidation |
$ 594,704 |
|
|
Further details regarding the Company's results of operations,
properties, joint ventures and tenants are available in the
Company's Form 10-K for the year ended December 31, 2014 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
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