Back to Main

Winthrop Realty Sells Assets - Analyst Blog

Posted: 6/13/2013 11:10:00 AM
Referenced Stocks: CUBE;CWH;DCT;FUR

Mass.-based real estate investment trust (REIT), Winthrop Realty Trust ( FUR ), disclosed the disposition of its medical office building property in Deer Valley, Ariz. The move has helped the company rope in $20.0 million as net proceeds.

The sell off clearly depicts a gain as the property was acquired as part of a foreclosure by Winthrop on a loan receivable purchased in Jun 2010 for an original purchase price of around $10.6 million.

Winthrop Realty engages in the ownership and management of real estate and real estate-related financial instruments such as CMBS, bonds, REIT preferred and common stock. The company reported a FFO (funds from operations) of 48 cents a share in the first quarter of 2013, substantially beating the Zacks Consensus Estimate of 21 cents. Notably, this REIT stock has beaten the Zacks Consensus Estimate in 2 of the last 4 quarters with an average surprise of 22.9%.

As a matter of fact, Winthrop is focused on riding the growth trajectory by capitalizing on opportunistic investments. The company, which had cash and cash equivalents worth $131.4 million at the end of the first quarter 2013, is improving its liquidity level through dispositions in order to capitalize on the favorable investment opportunities the market is currently offering.

Winthrop Realty carries a short-term Zacks Rank #2 (Buy). A number of other REITs that are also performing well and deserve look include CommonWealth REIT ( CWH ), which carries a Zacks Rank #1 (Strong Buy), while DCT Industrial Trust Inc. ( DCT ) and CubeSmart ( CUBE ) have a Zacks Rank #2.

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

CUBESMART (CUBE): Free Stock Analysis Report

COMMONWEALTH RE (CWH): Free Stock Analysis Report

DCT INDUSTRIAL (DCT): Free Stock Analysis Report

WINTHROP REALTY (FUR): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research