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Winthrop Realty Sells Amherst Property

Zacks Equity Research

Boston, MA-based equity real estate investment trust (:REIT) Winthrop Realty Trust (FUR) sold its office building at Amherst, NY to an unaffiliated third party at a gross sales price of $24.5 million. Winthrop Realty intends to utilize the proceeds for general and corporate purposes.

The sold property, previously leased to Ingram Micro, will fetch Winthrop Realty adjusted net proceeds of around $23.7 million. This lies in the company’s estimated net asset value range of $23,252,000 to $24,027,000, as of Mar 31, 2014.

Winthrop Realty is primarily engaged in acquiring, owning, operating and investing in real estate property as well as real estate collateralized debt. It reported first-quarter 2014 funds from operations (:FFO) of 30 cents per share, 34.8% lower than the first-quarter 2013 figure.

The current divestiture is in line with the usual company strategy of repositioning its portfolio. During the first quarter, Winthrop Realty’s divestitures included Meriden, CT-based Newbury Apartments property for $27.5 million, its interests in the Marc Realty ventures for $6.0 million and interests in secured loans for $42.9 million.

Winthrop Realty currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked equity REITs include The GEO Group, Inc. (GEO), Terreno Realty Corp. (TRNO) and Aviv REIT, Inc. (AVIV). All these stocks sport a Zacks Rank #1 (Strong Buy).

Note: FFO, a widely used metric to gauge the performance of REITs, are obtained after adding depreciation, amortization and other non-cash expenses to net income.

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