Key measure falls at Winthrop Realty

Winthrop Realty Trust, a real estate investment trust, today said its first-quarter funds from operations dropped 15 percent, which the Boston company attributed to its investment strategy and market weakness.

Funds from operations, or FFO, fell to $12.5 million, or 14 cents per share, from $14.7 million, or 23 cents per share, in the prior year.

FFO, which adds items such as amortization and depreciation back to net income, is considered a key measure of REIT strength.

Revenue grew 26 percent to $15.2 million.

Quarterly net income rose to $10.6 million, or 14 cents per share, from $10.2 million, or 19 cents per share, in the prior year.

The earnings results reflect a change in accounting principle during the first quarter of 2007 that resulted in the recognition of $1.9 million in income and the receipt of $4.8 million from the sale of a Chicago property. During the first quarter of 2006, Winthrop realized a $7.3 million gain from the sale of shares in Sizeler Property Investors.

Excluding those gains, adjusted net income grew to $3.9 million, from $2.8 million.

Winthrop said the decline in net income per share reflects an increase in the number of common shares outstanding.
(AP)