Winthrop Realty Trust reports loss

Winthrop Realty Trust said today that it swung to a loss in the second quarter but did increase the cash it has available for investment.

The real estate investment trust reported a loss of $24.1 million, or 33 cents per share, compared with net income of $12.8 million, or 16 cents per share, in last year's second quarter.

The company attributed most of the loss to $50.4 million impairment charge recognized by Concord Debt Holdings LLC, a venture between Winthrop Realty Trust and Lexington Realty Trust, relating to its bond portfolio.

The company said Aug. 1 that it took the charge due to concerns with bond market conditions and "its view of the absence of any near or midterm recovery in that market, as well as a review of the performance and quality of the underlying loan collateral."

Winthrop did report an increase in cash from $141.3 million on June 30 to $225 million on Wednesday. That includes a $70 million draw on a line of credit in July and $37 million from a rights offering in May.

The company also said that Lex-Win Acquisition LLC, of which Winthrop holds 28 percent interest, sold its shares in Piedmont Office Realty for $32.3 million, or $8.31 per share.

"With our increased cash position and the other transactions we have undertaken thus far this year, we continue to believe we are well positioned in this very challenging environment to capitalize on future investment opportunities," said Chief Executive Michael L. Ashner.

Shares slid 20 cents, or 4.7 percent, to $4.07 in midday trading. (AP)