Winthrop Realty Trust Announces Impairments and Loan Reserves Taken by Lex-Win Concord LLC for Quarter and Full Year Ended Decem
25 Februar 2009 - 1:35PM
PR Newswire (US)
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 http://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 DATASOURCE:
Winthrop Realty Trust CONTACT: Beverly Bergman of Winthrop Realty
Trust, +1-617-570-4614, Web Site: http://www.winthropreit.com/
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