Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 01, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FUR | |
Entity Registrant Name | Winthrop Realty Trust | |
Entity Central Index Key | 37,008 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 36,425,084 |
Consolidated Statement of Net A
Consolidated Statement of Net Assets Liquidation Basis - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
LIABILITIES | ||
Senior notes payable | $ 71,255,000 | |
Net assets in liquidation | 554,892,000 | $ 594,704,000 |
Liquidation Value [Member] | ||
ASSETS | ||
Investments in real estate | 516,367,000 | 557,325,000 |
Equity investments | 285,569,000 | 389,921,000 |
Cash and cash equivalents | 115,549,000 | 127,583,000 |
Restricted cash held in escrows | 7,514,000 | 5,831,000 |
Loans receivable | 8,395,000 | 24,005,000 |
Secured financing receivable | 29,164,000 | 29,210,000 |
Accounts receivable | 1,322,000 | 1,468,000 |
Loan securities | 918,000 | |
TOTAL ASSETS | 963,880,000 | 1,136,261,000 |
LIABILITIES | ||
Mortgage loans payable | 246,641,000 | 296,954,000 |
Senior notes payable | 71,255,000 | 71,265,000 |
Liability for non-controlling interests | 46,706,000 | 46,564,000 |
Liability for estimated costs in excess of estimated receipts during liquidation | 32,781,000 | 31,253,000 |
Dividends payable | 1,549,000 | 82,353,000 |
Accounts payable, accrued liabilities and other liabilities | 8,011,000 | 10,794,000 |
Related party fees payable | 2,045,000 | 2,374,000 |
TOTAL LIABILITIES | $ 408,988,000 | $ 541,557,000 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ||
Net assets in liquidation | $ 554,892,000 | $ 594,704,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | |||
Net assets in liquidation, beginning of period | $ 594,704 | ||
Changes in net assets in liquidation | |||
Change in liquidation value of investments in real estate | 9,692 | ||
Change in liquidation value of loan securities | (918) | ||
Change in liquidation value of equity investments | 155 | ||
Remeasurement of assets and liabilities | (2,620) | ||
Remeasurement of non-controlling interests | (590) | ||
Net increase in liquidation value | 5,719 | ||
Liquidating distributions to holders of Common Shares | (45,531) | ||
Changes in net assets in liquidation | (39,812) | ||
Net assets in liquidation, end of period | 554,892 | ||
Revenue | |||
Rents and reimbursements | $ 20,165 | $ 39,228 | |
Interest and discount accretion | 2,752 | 8,249 | |
Total Revenue | 22,917 | 47,477 | |
Expenses | |||
Property operating | 7,150 | 14,581 | |
Real estate taxes | 2,420 | 4,615 | |
Depreciation and amortization | 6,652 | 13,883 | |
Interest | 5,830 | 11,524 | |
Impairment loss on investments in real estate | 9,200 | ||
General and administrative | 2,144 | 3,786 | |
Related party fees | 2,399 | 4,774 | |
Transaction costs | 319 | 569 | |
State and local taxes | 93 | 105 | |
Total expenses | 27,007 | 63,037 | |
Other income (loss) | |||
Equity in income of equity investments | 4,178 | 10,372 | |
Earnings from preferred equity investments | 564 | 571 | |
Loss on extinguishment of debt | (564) | (564) | |
Realized gain (loss) on sale of securities carried at fair value | 2 | ||
Interest and other income | 122 | 207 | |
Total other income (loss) | 4,300 | 10,588 | |
Income (loss) from continuing operations | 210 | (4,972) | |
Discontinued operations | |||
Income from discontinued operations | 6,772 | 11,151 | |
Net income | 6,982 | 6,179 | |
Net loss attributable to non-controlling interests | 1,980 | 3,423 | 3,423 |
Net income attributable to Winthrop Realty Trust | 8,962 | 9,602 | 9,602 |
Preferred dividend of Series D Preferred Shares | (2,786) | (5,573) | |
Amount allocated to Restricted Common Shares | (97) | (192) | (192) |
Net income attributable to Common Shares | $ 6,079 | $ 3,837 | |
Per Common Share data - Basic | |||
Loss from continuing operations | $ (0.02) | $ (0.20) | |
Income from discontinued operations | 0.19 | 0.31 | |
Net income attributable to Common Shares | 0.17 | 0.11 | |
Per Common Share data - Diluted | |||
Loss from continuing operations | (0.02) | (0.20) | |
Income from discontinued operations | 0.19 | 0.31 | |
Net income attributable to Common Shares | $ 0.17 | $ 0.11 | |
Basic Weighted-Average Common Shares | 35,824 | 35,820 | |
Diluted Weighted-Average Common Shares | 35,824 | 35,820 | |
Comprehensive income | |||
Net income | $ 6,982 | $ 6,179 | |
Change in unrealized loss on interest rate derivative | (493) | (638) | (638) |
Consolidated comprehensive income | 6,489 | 5,541 | |
Net loss attributable to non-controlling interests | 1,980 | $ 3,423 | 3,423 |
Comprehensive loss attributable to non-controlling interests | 1,980 | 3,423 | |
Comprehensive income attributable to Winthrop Realty Trust | $ 8,469 | $ 8,964 |
Consolidated Statement of Equit
Consolidated Statement of Equity - 6 months ended Jun. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Series D Preferred Shares of Beneficial Interest [Member] | Series D Preferred Shares of Beneficial Interest [Member] | Common Shares of Beneficial Interest [Member] | Additional Paid-In Capital [Member] | Accumulated Distributions in Excess of Net Income [Member] | Accumulated Distributions in Excess of Net Income [Member]Series D Preferred Shares of Beneficial Interest [Member] | Accumulated Other Comprehensive Income (loss) [Member] | Non-Controlling Interests [Member] |
Beginning balance at Dec. 31, 2014 | $ 509,663 | $ 120,500 | $ 35,809 | $ 647,121 | $ (322,432) | $ (124) | $ 28,789 | ||
Beginning balance, shares at Dec. 31, 2014 | 4,820 | 36,401 | |||||||
Net income attributable to Winthrop Realty Trust | 9,602 | 9,602 | |||||||
Net loss attributable to non-controlling interests | (3,423) | (3,423) | |||||||
Distributions to non-controlling interests | (529) | (529) | |||||||
Contributions from non-controlling interests | 451 | 451 | |||||||
Increase in non-controlling interest due to consolidation of property | 16,391 | 16,391 | |||||||
Decrease in non-controlling interest due to property sale | (3,764) | (3,764) | |||||||
Dividends declared on Common Shares of Beneficial Interest ($0.325 per share) | (11,642) | (11,642) | |||||||
Dividends declared on Series D Preferred Shares ($1.15625 per share) | $ (5,573) | $ (5,573) | |||||||
Dividends declared on Restricted Shares | (192) | (192) | |||||||
Change in unrealized loss on interest rate derivatives | (638) | (638) | |||||||
Stock issued pursuant to Dividend Reinvestment Plan | 178 | $ 16 | 162 | ||||||
Stock issued pursuant to Dividend Reinvestment Plan, shares | 16 | ||||||||
Amortization of Restricted Shares | 1,331 | 1,331 | |||||||
Ending balance at Jun. 30, 2015 | $ 511,855 | $ 120,500 | $ 35,825 | $ 648,614 | $ (330,237) | $ (762) | $ 37,915 | ||
Ending balance, shares at Jun. 30, 2015 | 4,820 | 36,417 |
Consolidated Statement of Equi5
Consolidated Statement of Equity (Parenthetical) - Accumulated Distributions in Excess of Net Income [Member] | 6 Months Ended |
Jun. 30, 2015$ / shares | |
Dividends declared on Common Shares of Beneficial Interest | $ 0.325 |
Series D Preferred Shares of Beneficial Interest [Member] | |
Dividends declared on Series D Preferred Shares | $ 1.15625 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 6 Months Ended |
Jun. 30, 2014 | |
Cash flows from operating activities | |
Net income | $ 6,179,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |
Depreciation and amortization (including amortization of deferred financing costs and fair value of debt) | 9,993,000 |
Amortization of lease intangibles | 5,776,000 |
Straight-line rental income | 1,075,000 |
Loan discount accretion | (1,591,000) |
Discount accretion received in cash | 5,865,000 |
Earnings of preferred equity investments | (571,000) |
Distributions of income from preferred equity investments | 1,208,000 |
Income of equity investments | (10,372,000) |
Distributions of income from equity investments | 7,755,000 |
Restricted cash held in escrows | (881,000) |
Gain on sale of securities carried at fair value | (2,000) |
Gain on sale of real estate investments | (11,002,000) |
Impairment loss on investments in real estate | 9,287,000 |
Tenant leasing costs | (936,000) |
Equity compensation expenses | 1,331,000 |
Bad debt recovery | (265,000) |
Changes in assets and liabilities: | |
Interest receivable | 113,000 |
Accounts receivable and other assets | 1,119,000 |
Accounts payable, accrued liabilities and other liabilities | (6,268,000) |
Net cash provided by operating activities | 17,813,000 |
Cash flows from investing activities | |
Issuance of loans receivable | (17,492,000) |
Investments in real estate | (5,429,000) |
Investment in equity investments | (45,709,000) |
Proceeds from sale of investments in real estate | 56,423,000 |
Proceeds from sale of equity investments | 200,000 |
Return of capital distribution from equity investments | 673,000 |
Purchase of securities carried at fair value | (73,000) |
Proceeds from sale of securities carried at fair value | 75,000 |
Restricted cash held in escrows | 2,692,000 |
Collection of loans receivable | 7,765,000 |
Proceeds from sale of loans receivable | 37,052,000 |
Cash from consolidation of properties | 332,000 |
Net cash provided by investing activities | 36,509,000 |
Cash flows from financing activities | |
Principal payments of mortgage loans payable | (4,757,000) |
Repurchase of senior notes payable | (11,178,000) |
Restricted cash held in escrows | (168,000) |
Contribution from non-controlling interest | 451,000 |
Distribution to non-controlling interest | (529,000) |
Proceeds from issuance of Common Shares under Dividend Reinvestment Plan | 178,000 |
Dividend paid on Common Shares | (11,639,000) |
Dividend paid on Series D Preferred Shares | (5,573,000) |
Dividend paid on Restricted Shares | (43,000) |
Net cash used in financing activities | (33,258,000) |
Net increase in cash and cash equivalents | 21,064,000 |
Cash and cash equivalents at beginning of period | 112,512,000 |
Cash and cash equivalents at end of period | 133,576,000 |
Supplemental Disclosure of Cash Flow Information | |
Interest paid | 13,181,000 |
Capitalized interest | 2,053,000 |
Taxes paid | 70,000 |
Supplemental Disclosure on Non-Cash Investing and Financing Activities | |
Dividends accrued on Common Shares and Restricted Shares | 6,251,000 |
Capital expenditures accrued | 1,834,000 |
Conveyance of secured financing in settlement of loans receivable | (29,150,000) |
Forgiveness of loan receivable | 190,000 |
Seller financing receivable | 4,500,000 |
Fair value of assets acquired | 69,140,000 |
Fair value of liabilities assumed | 52,687,000 |
Vintage Housing Holdings, LLC [Member] | |
Supplemental Disclosure on Non-Cash Investing and Financing Activities | |
Contribution to Vintage Housing Holdings LLC | $ 450,000 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Winthrop Realty Trust (“Winthrop”), a real estate investment trust (“REIT”) under Sections 856-860 of the Internal Revenue Code, is an unincorporated association in the form of a business trust organized in Ohio under a Declaration of Trust dated August 1, 1961, as amended and restated on May 21, 2009, which has as its stated principal business activity the ownership and management of, and lending to, real estate and related investments. Winthrop conducts its business through WRT Realty L.P., a Delaware limited partnership (the “Operating Partnership”). Winthrop is the sole general partner of, and owns directly and indirectly, 100% of the limited partnership interest in the Operating Partnership. All references to the “Trust” refer to Winthrop and its consolidated subsidiaries, including the Operating Partnership. On April 28, 2014 the Trust’s Board of Trustees (the “Board”) adopted a plan of liquidation which was subject to approval by the holders of a majority of the Trust’s common shares of beneficial interest (“Common Shares”). The plan was approved at a special meeting of shareholders on August 5, 2014 and the Trust adopted the liquidation basis of accounting as of August 1, 2014. Prior to the plan of liquidation, the Trust was engaged in the business of owning real property and real estate related assets which it categorized into three segments: (i) ownership of investment properties including wholly owned properties and investments in joint ventures which own investment properties (“operating properties”); (ii) origination and acquisition of loans collateralized directly or indirectly by commercial and multi-family real property, (collectively “loan assets”); and (iii) equity and debt interests in other real estate investment trusts (“REIT securities”). Subsequent to the adoption of the plan of liquidation discussed below, the Trust no longer makes operating decisions or assesses performance in separate segments. Accordingly, the Trust has only one reporting and operating segment subsequent to July 31, 2014. |
Plan of Liquidation
Plan of Liquidation | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Plan of Liquidation | 2. Plan of Liquidation The plan of liquidation provides for an orderly sale of the Trust’s assets, payment of the Trust’s liabilities and other obligations and the winding up of operations and dissolution of the Trust. The Trust is not permitted to make any new investments other than protective acquisitions or advances with respect to the Trust’s existing assets. The Trust is permitted to satisfy any existing contractual obligations including any capital call requirements and acquisitions or dispositions pursuant to buy-sell provisions under existing joint venture documentation, pay for required tenant improvements and capital expenditures at its real estate properties, and repurchase its existing Common Shares and its 7.75% Senior Notes (the “Senior Notes”). The Trust is also permitted to invest its cash reserves in short-term U.S. Treasuries or other short-term obligations. The plan of liquidation enables the Trust to sell any and all of its assets without further approval of the shareholders and provides that liquidating distributions be made to the shareholders as determined by the Board. Pursuant to applicable REIT rules, in order to be able to deduct liquidating distributions as dividends, the Trust must complete the disposition of its assets by August 5, 2016, two years after the date the plan of liquidation was adopted by shareholders. To the extent that all of the Trust’s assets are not sold by such date, the Trust intends to satisfy this requirement by distributing its unsold assets into a liquidating trust at the end of such two-year period, and the holders of interests in the Trust at such time will be beneficiaries of such liquidating trust. Interests in the liquidating trust will not be registered and will not be freely transferable. The dissolution process and the amount and timing of distributions to shareholders involves risks and uncertainties. Accordingly, it is not possible to predict the timing or aggregate amount which will ultimately be distributed to shareholders and no assurance can be given that the distributions will equal or exceed the estimate of net assets presented in the Consolidated Statements of Net Assets. The Trust expects to continue to qualify as a REIT throughout the liquidation until such time as any remaining assets, if any, are transferred into a liquidating trust. The Board shall use commercially reasonable efforts to continue to cause the Trust to maintain its REIT status, provided however, the Board may elect to terminate the Trust’s status as a REIT if it determines that such termination would be in the best interest of the shareholders. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies Basis of Presentation Pre Plan of Liquidation The accompanying unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements, although management believes that the disclosures presented herein are adequate to make the accompanying unaudited consolidated interim financial statements not misleading. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated annual financial statements and the notes thereto included in Winthrop’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC. In the opinion of management, all adjustments considered necessary for fair statements have been included, and all such adjustments were of a normal recurring nature. The results of operations for the interim periods were not necessarily indicative of the operating results for the full year. The accompanying unaudited consolidated interim financial statements represent the consolidated results of Winthrop, its wholly-owned taxable REIT subsidiary, WRT-TRS Management Corp., the Operating Partnership and all majority-owned subsidiaries and affiliates over which the Trust has financial and operating control and variable interest entities (“VIE”s) in which the Trust has determined it is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. Prior to the adoption of the plan of liquidation, the Trust accounted for all other unconsolidated joint ventures using the equity method of accounting. Accordingly, the Trust’s share of the earnings of these joint ventures and companies was included in consolidated net income. The consolidated financial statements for the periods ended June 30, 2014 were prepared on the going concern basis of accounting, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Post Plan of Liquidation Liquidation Basis of Accounting As a result of the approval of the plan of liquidation by the shareholders, the Trust has adopted the liquidation basis of accounting as of August 1, 2014 and for the periods subsequent to August 1, 2014 in accordance with GAAP. Accordingly, on August 1, 2014 assets were adjusted to their estimated net realizable value, or liquidation value, which represents the estimated amount of cash that the Trust will collect on disposal of assets as it carries out its plan of liquidation. The liquidation value of the Trust’s operating properties and loan assets are presented on an undiscounted basis. Estimated costs to dispose of assets have been presented separately from the related assets. Liabilities are carried at their contractual amounts due or estimated settlement amounts. The Trust accrues costs and income that it expects to incur and earn through the end of liquidation to the extent it has a reasonable basis for estimation. These amounts are classified as a liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statements of Net Assets. Actual costs and income may differ from amounts reflected in the financial statements because of inherent uncertainty in estimating future events. These differences may be material. See Note 4 for further discussion. Actual costs incurred but unpaid as of June 30, 2015 are included in accounts payable, accrued liabilities and other liabilities on the Consolidated Statements of Net Assets. In liquidation, the presentation for joint ventures historically consolidated under going concern accounting is determined based on the Trust’s planned exit strategy. Those ventures where the Trust intends to sell the property are presented on a gross basis with a payable to the non-controlling interest holder. Those ventures where the Trust intends to sell its interest in the venture, rather than the property, are presented on a net basis and are included in equity investments on the Consolidated Statements of Net Assets. Amounts due to non-controlling interests in connection with the disposition of consolidated joint ventures have been accrued and are recorded as liability for non-controlling interests. Net assets in liquidation represents the estimated liquidation value available to holders of Common Shares upon liquidation. Due to the uncertainty in the timing of the anticipated sale dates and the estimated cash flows, actual operating results and sale proceeds may differ materially from the amounts estimated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in determining the values of assets and liabilities, disclose contingent assets and liabilities at the date of the consolidated financial statements and the amounts of revenue and expenses during the reporting period. Under going concern accounting, the estimates that were particularly susceptible to management’s judgment include, but are not limited to, the impairment of real estate, loans and investments in ventures and real estate securities carried at fair value. In addition, estimates are used in accounting for the allowance for doubtful accounts. Under liquidation accounting, the Trust is required to estimate all costs and income that it expects to incur and earn through the end of liquidation including the estimated amount of cash it will collect on disposal of its assets and estimated costs incurred to dispose of assets. All of the estimates and evaluations are susceptible to change and actual results could differ materially from the estimates and evaluations. Earnings Per Share Prior to the adoption of the plan of liquidation, the Trust determined basic earnings per share on the weighted average number of Common Shares outstanding during the period and reflected the impact of participating securities. The Trust computed diluted earnings per share based on the weighted average number of Common Shares outstanding combined with the incremental weighted average effect from all outstanding potentially dilutive instruments. The Trust calculated earnings per share in accordance with relevant accounting guidance for participating securities and the two class method. The reconciliation of earnings attributable to Common Shares outstanding for the basic and diluted earnings per share calculation is as follows (in thousands, except per share data): Three Months Ended Six Months Ended Basic Income (loss) from continuing operations $ 210 $ (4,972 ) Loss attributable to non-controlling interest 1,980 3,369 Preferred dividend of Series D Preferred Shares (2,786 ) (5,573 ) Amount allocated to Restricted Common Shares (97 ) (192 ) Loss from continuing operations applicable to Common Shares (693 ) (7,368 ) Income from discontinued operations 6,772 11,151 Loss attributable to non-controlling interest from discontinued operations — 54 Net income applicable to Common Shares for earnings per share purposes $ 6,079 $ 3,837 Basic weighted-average Common Shares 35,824 35,820 Loss from continuing operations $ (0.02 ) $ (0.20 ) Income from discontinued operations 0.19 0.31 Net income per Common Share - Basic $ 0.17 $ 0.11 Diluted Income (loss) from continuing operations $ 210 $ (4,972 ) Loss attributable to non-controlling interest 1,980 3,369 Preferred dividend of Series D Preferred Shares (2,786 ) (5,573 ) Amount allocated to Restricted Common Shares (97 ) (192 ) Loss from continuing operations applicable to Common Shares (693 ) (7,368 ) Income from discontinued operations 6,772 11,151 Loss attributable to non-controlling interest from discontinued operations — 54 Net income applicable to Common Shares for earnings per share purposes $ 6,079 $ 3,837 Basic weighted-average Common Shares 35,824 35,820 Restricted Common Shares (1) — — Diluted weighted-average Common Shares 35,824 35,820 Loss from continuing operations $ (0.02 ) $ (0.20 ) Income from discontinued operations 0.19 0.31 Net income per Common Share - Diluted $ 0.17 $ 0.11 (1) The Trust’s Restricted Common Shares were anti-dilutive for the three and six months ended June 30, 2014 and are not included in the weighted-average shares outstanding for the calculation of diluted earnings per Common Share. The amendments to the Restricted Common Shares discussed in Note 14 had no impact on the calculation of earnings per share for the period presented. For the quarter ended June 30, 2014, the Trust paid a regular quarterly dividend of $0.1625 per Common Share and a regular quarterly dividend of $0.578125 per Series D Cumulative Redeemable Preferred Share (the “Series D Preferred Shares”). A liquidating distribution of $2.25 per Common Share was paid on January 15, 2015 to common shareholders of record on January 5, 2015. A liquidating distribution of $1.25 per Common Share was paid on June 16, 2015 to common shareholders of record on June 9, 2015. |
Liability for Estimated Costs i
Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation | 4. Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation The liquidation basis of accounting requires the Trust to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the plan of liquidation. The Trust currently estimates that it will have costs in excess of estimated receipts during the liquidation. These amounts can vary significantly due to, among other things, the timing and estimates for executing and renewing leases, estimates of tenant improvement costs, the timing of property sales, direct costs incurred to complete the sales, the timing and amounts associated with discharging known and contingent liabilities and the costs associated with the winding up of operations. These costs are estimated and are anticipated to be paid out over the liquidation period. The change in the liability for estimated costs in excess of estimated receipts during liquidation as of June 30, 2015 is as follows (in thousands): December 31, 2014 Cash Payments Remeasurement June 30, 2015 Assets: Estimated net inflows from investments in real estate, loans receivable and secured financing receivable $ 25,169 $ (7,428 ) $ (865 ) $ 16,876 Liabilities: Sales costs (11,840 ) 578 (34 ) (11,296 ) Corporate expenditures (44,582 ) 7,942 (1,721 ) (38,361 ) (56,422 ) 8,520 (1,755 ) (49,657 ) Total liability for estimated costs in excess of estimated receipts during liquidation $ (31,253 ) $ 1,092 $ (2,620 ) $ (32,781 ) |
Net Assets in Liquidation
Net Assets in Liquidation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Net Assets in Liquidation | 5. Net Assets in Liquidation Net assets in liquidation decreased by $39,812,000 during the six months ended June 30, 2015. The primary reason for the decrease in net assets was due to liquidating distributions to holders of Common Shares of $45,531,000, a $1,721,000 increase in estimated corporate expenditures resulting primarily from increases in estimated fees payable to the advisor as a result of increases in liquidation values of certain investments, a $918,000 decrease in the value of the Trust’s loan securities resulting from a new appraisal of the collateral underlying the security and a $590,000 increase in the liability for non-controlling interests. These decreases were offset by a $9,692,000 increase in investments in real estate and a $155,000 net increase in the liquidation value of equity investments. The net assets in liquidation at June 30, 2015 would result in liquidating distributions of approximately $15.23 per Common Share. This estimate of liquidating distributions includes projections of costs and expenses to be incurred during the period required to complete the plan of liquidation. There is inherent uncertainty with these projections, and they could change materially based on the timing of sales, the performance of underlying assets and any changes in the underlying assumptions of the projected cash flows. |
Property Dispositions
Property Dispositions | 6 Months Ended |
Jun. 30, 2015 | |
Text Block [Abstract] | |
Property Dispositions | 6. Property Dispositions 44 Monroe, Phoenix, Arizona – property sale Cerritos, California – contract for sale - Highgrove, Stamford, Connecticut – contract for sale – |
Loans Receivable
Loans Receivable | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans Receivable | 7. Loans Receivable The Trust’s loans receivable at June 30, 2015 and December 31, 2014 are as follows (in thousands): Carrying Amount (1) Description Loan Position Stated June 30, December 31, Contractual Rockwell Mezzanine 12.0% $ — $ — 05/01/16 Churchill Whole Loan LIBOR + 3.75% — — 08/01/16 Popiu Shopping Village B-Note 6.62% 2,786 2,804 01/06/17 Edens Center and Norridge Commons (2) Mezzanine LIBOR + 12% (3) 3,098 18,690 03/09/17 Mentor Building Whole Loan 10.0% 2,511 2,511 09/10/17 $ 8,395 $ 24,005 (1) The carrying amount represents the estimated amount expected to be collected on disposition of the loan plus contractual interest receivable. (2) Carrying amount includes the par amount plus the estimated amount to be collected on the participation interest of $3,000 and accrued interest of $1. (3) LIBOR floor of 0.5%. Edens Center and Norridge Commons The carrying amount of loans receivable at June 30, 2015 and December 31, 2014 includes accrued interest of $27,000 and $218,000, respectively. The weighted average coupon as calculated on the par value of the Trust’s loans receivable was 8.04% and 10.55% at June 30, 2015 and December 31, 2014, respectively and the weighted average yield to maturity as calculated on the carrying value of the Trust’s loan receivable was 13.73% and 12.78% at June 30, 2015 and December 31, 2014, respectively. Loan Receivable Activity Activity related to loans receivable is as follows (in thousands): Six Months Ended Six Months Ended Balance at beginning of period $ 24,005 $ 101,100 Purchase and advances — 21,992 Interest received, net (191 ) (44 ) Repayments/sale proceeds/forgiveness (15,419 ) (74,157 ) Loan discount accretion — 1,591 Discount accretion received in cash — (5,865 ) Balance at end of period $ 8,395 $ 44,617 The following table summarizes the Trust’s interest and discount accretion income for the three and six months ended June 30, 2014 (in thousands): Three Months Ended Six Months Ended Interest on loan assets $ 2,366 $ 4,871 Exit fee/prepayment penalty — 1,787 Accretion of loan discount 386 1,591 Total interest and discount accretion $ 2,752 $ 8,249 Non-Performing Loans Prior to adopting the liquidation basis of accounting, the Trust considered a loan to be non-performing and placed loans on non-accrual status at such time as management determined it was probable that it would be unable to collect all amounts due according to the contractual terms of the loan. While on non-accrual status, based on the Trust’s judgment as to collectability of principal, loans were either accounted for on a cash basis, where interest income was recognized only upon actual receipt of cash, or on a cost-recovery basis, where all cash receipts reduced a loan’s carrying value. As of June 30, 2014, there was one non-performing loan with past due payments. The Trust did not record any provision for loan loss for the three and six months ended June 30, 2014. Secured Financing Receivable In August 2013 the Trust closed on an agreement to acquire its venture partner’s (“Elad”) 50% interest in the mezzanine lender with respect to the One South State Street, Chicago, Illinois property (“Lender LP”) for $30,000,000. In connection with the transaction, the Trust entered into an option agreement with Elad granting Elad the right, but not obligation, to repurchase the interest in the venture. The option agreement provides Elad, as the transferor, the option to unilaterally cause the return of the asset at the earlier of two years from August 21, 2013 or an event of default on Lender LP’s mezzanine debt. As such, Elad is able to retain control of its interest in Lender LP for financial reporting purposes as the exercise of the option is unconditional other than for the passage of time. As a result, for financial reporting purposes, the transfer of the financial asset is accounted for as a secured financing rather than an acquisition. The $30,000,000 acquisition price is recorded as a secured financing receivable. Under the going concern basis of accounting, the Trust recognized interest income on the secured financing receivable on an accrual basis in accordance with GAAP, at an annual interest rate of 15%. The Trust recorded $951,000 and $1,892,000 of interest income during the three and six months ended June 30, 2014, respectively. |
Equity Investments
Equity Investments | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | 8. Equity Investments Under liquidation accounting, equity investments are carried at net realizable value. The Trust’s nominal ownership percentages in its equity investments consist of the following at June 30, 2015 and December 31, 2014: Venture Partner Equity Investment Nominal % Ownership Nominal % Ownership Elad Canada Ltd WRT One South State Lender LP 50.0 % 50.0 % Elad Canada Ltd WRT-Elad One South State Equity LP 50.0 % 50.0 % Atrium Holding RE CDO Management LLC 50.0 % 50.0 % Freed Mentor Retail LLC 49.9 % 49.9 % Inland Concord Debt Holdings LLC 66.6 % 66.6 % Inland CDH CDO LLC 49.6 % 49.6 % Marc Realty Atrium Mall LLC 50.0 % 50.0 % New Valley/Witkoff 701 Seventh WRT Investor LLC 81.0 % 81.0 % RS Summit Pointe (1) RS Summit Pointe Apartments LLC 80.0 % 80.0 % Freed Edens Plaza Associates LLC <1 % <1 % Freed (1) Irving-Harlem Venture Limited <1 % <1 % Gancar Trust (2) Vintage Housing Holdings LLC n/a 75.0 % (1) Investment was previously consolidated under going concern accounting. See Note 3 “Liquidation Basis of Accounting” for further discussion. (2) The Trust’s investment was sold during the six months ended June 30, 2015. Vintage Housing Holdings – Concord Debt Holdings – 701 Seventh Avenue – CDH CDO LLC |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Mortgage Loans Payable Mortgage loans payable are carried at their contractual amounts due under liquidation accounting. The Trust had outstanding mortgage loans payable of $246,641,000 and $296,954,000 at June 30, 2015 and December 31, 2014, respectively. The mortgage loan payments of principal and interest are generally due monthly, quarterly or semi-annually and are collateralized by applicable real estate of the Trust. The Trust’s mortgage loans payable at June 30, 2015 and December 31, 2014 are summarized as follows (in thousands): Location of Collateral Maturity Spread Over LIBOR Interest Rate at June 30, December 31, Lisle, IL Oct 2015 Libor + 2.5% 2.69 % $ 5,541 $ 5,713 Chicago, IL Mar 2016 — 5.75 % 19,296 19,491 New York, NY May 2016 Libor + 2.5% (2) 3.50 % 50,750 51,034 Greensboro, NC Aug 2016 — 6.22 % 13,600 13,600 Stamford, CT (4)(5) Oct 2016 Libor + 2.0% (3) 2.69 % 33,448 44,923 Houston, TX (4)(5) Oct 2016 Libor + 2.0% (3) 2.69 % 44,319 59,524 Cerritos, CA Jan 2017 — 5.07 % 23,000 23,000 Lisle, IL Mar 2017 — 5.55 % 5,350 5,392 Orlando, FL Jul 2017 — 6.40 % 36,009 36,347 Plantation, FL Apr 2018 — 6.48 % 10,478 10,550 Churchill, PA Aug 2024 — 3.50 % 4,850 4,918 Phoenix, AZ (4)(5) n/a — n/a — 22,462 $ 246,641 $ 296,954 (1) The one-month LIBOR rate at June 30, 2015 was 0.1865%. The one-month LIBOR rate at December 31, 2014 was 0.17125%. (2) The loan has a LIBOR floor of 1%. (3) The loan has an interest rate swap which effectively fixes LIBOR at 0.69%. (4) These properties are cross-collateralized. Proceeds from property sales go 100% to repay the mortgage loan. (5) A portion of the loan was satisfied during 2015 in connection with the sale of a property. Notes Payable In conjunction with the loan modification on the property located in Cerritos, California the Trust assumed a $14,500,000 B Note that bears interest at 6.6996% per annum and requires monthly interest payments of approximately $12,000 with the balance of the interest accruing. The loan modification agreement provides for a participation feature whereby the B Note can be fully satisfied with proceeds from the sale of the property after the Trust receives a 9.0% priority return on its capital, during a specified time period as defined in the loan modification document. As a result of the loan modification, the B Note does not have a contractually specified settlement amount. As such, the B Note is recorded at the estimated settlement amount based on the estimated sale of the property as discussed in Note 6 – Property Dispositions. The liquidation value of the B Note was $272,000 at June 30, 2015 and $0 at December 31, 2014. The liquidation value of the B Note is included in liability for estimated costs in excess of estimated receipts on the Consolidated Statements of Net Assets. |
Senior Notes Payable
Senior Notes Payable | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Senior Notes Payable | 10. Senior Notes Payable In August 2012 the Trust issued a total $86,250,000 of its Senior Notes at an issue price of 100% of par value. Pursuant to its securities repurchase plan, as of June 30, 2015 the Trust had acquired $14,995,000 of its outstanding Senior Notes in open market transactions for an aggregate price of $15,707,000. As of June 30, 2015, there were $71,255,000 Senior Notes outstanding not held by the Trust. The Senior Notes mature on August 15, 2022 and bear interest at the rate of 7.75% per year, payable quarterly in arrears. The Trust has the right to redeem the Senior Notes, in whole or in part, at any time, or from time to time, on or after August 15, 2015 at a redemption price in cash equal to 100% of the principal amount redeemed plus accrued and unpaid interest. The Trust has notified the trustee of the Senior Notes that it will redeem the Senior Notes in full effective August 15, 2015. |
Non-controlling Interests
Non-controlling Interests | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | 11. Non-controlling Interests Under going concern accounting, consolidated joint ventures are recorded on a gross basis with an allocation of equity to non-controlling interest holders. Under liquidation accounting, the presentation for joint ventures historically consolidated under going concern accounting is determined based on the Trust’s planned exit strategy. Those ventures in which the Trust intends to sell the underlying property are presented on a gross basis with a payable to the non-controlling interest holder. Those ventures in which the Trust intends to sell its interest in the venture, rather than the property, are accounted for as an equity investment and are presented on a net basis without a non-controlling interest component. In this regard, the Trust’s investments in the Norridge, Illinois property and Summit Pointe Apartments, which were consolidated under going concern accounting, are accounted for as equity investments under liquidation accounting. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies In addition to the initial purchase price of certain loans and operating properties, the Trust has future funding commitments attributable to its 701 Seventh Avenue investment which total approximately $16,175,000 at June 30, 2015. The Trust’s venture which owns the property located at 450 W 14 th The Trust is involved from time to time in litigation on various matters, including disputes with tenants and disputes arising out of agreements to purchase or sell properties. Given the nature of the Trust’s business activities, these lawsuits are considered routine to the conduct of its business. The result of any particular lawsuit cannot be predicted because of the very nature of litigation, the litigation process and its adversarial nature, and the jury system. The Trust does not expect that the liabilities, if any, that may ultimately result from such legal actions will have a material adverse effect on its financial condition or results of operations. Churchill, Pennsylvania - |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 13. Related-Party Transactions FUR Advisors - The following table sets forth the fees and reimbursements paid by the Trust for the three and six months ended June 30, 2015 and 2014 to FUR Advisors and Winthrop Management LP (“Winthrop Management”) (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, Base Asset Management Fee (1) $ 1,635 $ 2,399 $ 3,319 $ 4,774 Property Management Fee 261 338 545 657 Construction Management Fee 66 110 97 189 $ 1,962 $ 2,847 $ 3,961 $ 5,620 (1) Includes fees on third party contributions of $7 and $23 for the three months ended June 30, 2015 and 2014, respectively, and of $14 and $48 for the six months ended June 30, 2015 and 2014, respectively. Base Asset Management Fee – In connection with the adoption of the plan of liquidation, the Trust accrues costs it expects to incur through the end of the liquidation. In this regard, at June 30, 2015 the Trust has accrued, based on its estimates of the timing and amounts of liquidating distributions to be paid to Common Shareholders, base management fees of $8,768,000, exclusive of the $1,635,000 included in related party fees payable, termination fees of $9,496,000 and incentive fees of $15,806,000. These amounts are included in liabilities for estimated costs in excess of estimated receipts during liquidation. Actual fees incurred may differ significantly from these estimates due to inherent uncertainty in estimating future events. Incentive Fee / Termination Fee - With respect to the termination fee, it is only payable if there is (i) a termination of the Advisory Agreement for any reason other than for cause (as defined) by the Trust or with cause by the Trust’s Advisor, (ii) a disposition of all or substantially all of the Trust’s assets, or (iii) an election by the Trust to orderly liquidate the Trust’s assets. The termination fee, if payable, is equal to the lesser of (i) the base management fee paid to the Trust’s Advisor for the prior twelve month period or (ii) either (x) in the case of a termination of the Advisory Agreement, 20% of the positive difference, if any between (A) the appraised net asset value of the Trust’s assets at the date of termination and (B) the threshold amount less $104,980,000, or (y) in the case of a disposition or liquidation, 20% of any dividends paid on account of the Trust’s Common Shares at such time as the threshold amount is reduced to $104,980,000, which will be achieved at such time as aggregate distributions of approximately $9.76 per Common Share in excess of the Growth Factor have been paid. For example, if the Trust had been liquidated at June 30, 2015, the termination fee would only have been payable if total dividends of approximately $9.76 per Common Share had been paid, and then only until the total termination fee paid would have equaled $9,496,000 (the base management fee for the twelve months prior to the approved plan of liquidation), which amount would be achieved when total dividends paid per Common Share equaled approximately $11.08. At June 30, 2015 it is estimated that the Advisor will be entitled to a termination fee of $9,496,000 in connection with the liquidation. This amount has been accrued and is included in liabilities for estimated costs in excess of estimated receipts during liquidation. Property Management and Construction Management - At June 30, 2015 $1,635,000 payable to FUR Advisors and $410,000 payable to Winthrop Management were included in related party fees payable. |
Restricted Share Grants
Restricted Share Grants | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Share Grants | 14. Restricted Share Grants On February 1, 2013 the Board approved the issuance of 600,000 shares of Restricted Common Shares (“Restricted Shares”) to the Trust’s Advisor, 500,000 of which were subject to the approval of the shareholders to the increase in the number of shares issuable under the Trust’s 2007 Stock Option Plan (the “2007 Plan”). The initial 100,000 Restricted Shares were issued on February 28, 2013. At the May 21, 2013 annual shareholders meeting the increase in shares issuable under the 2007 Plan from 100,000 to 1,000,000 was approved by the requisite number of shareholders and the remaining 500,000 shares were issued on May 28, 2013. The Restricted Shares are subject to forfeiture through May 5, 2016 (the “Forfeiture Period”). Except in limited circumstances, if the holder of the Restricted Shares does not remain in continuous employment with FUR Advisors or its affiliate through the Forfeiture Period, all of their rights to the Restricted Shares and the associated dividends held in escrow will be forfeited. Dividends will be paid on the issued Restricted Shares in conjunction with dividends on Common Shares not issued under the 2007 Plan. However, the recipients of the Restricted Shares will only receive dividends as if the shares vested quarterly over the Forfeiture Period, with the remaining dividends to be placed into escrow and paid to the holders at the expiration of the Forfeiture Period. Under going concern accounting, until the awards were no longer subject to forfeiture, the Trust measured stock-based compensation expense at each reporting date for any changes in fair value and recognized the expense prorated for the portion of the requisite service period completed. Accordingly, the Trust recognized $917,000 and $1,331,000 in non-cash compensation expense for the three and six months ended June 30, 2014. Under liquidation accounting, compensation expense is no longer recorded as the vesting of the Restricted Shares does not result in cash outflow for the Trust. In connection with the adoption of the plan of liquidation, the Trust’s compensation committee authorized amendments to the grant agreements to provide for an early expiration of the Forfeiture Period which now expires on May 5, 2016 and the reissuance of forfeited shares. In this regard, 10,000 Restricted Shares, which had previously been forfeited, were issued on September 5, 2014. Additionally, the Trust’s compensation committee agreed to fully vest 8,750 Restricted Shares held by non-executive officers whose employment was terminated in connection with the plan of liquidation. As a result, there were 591,250 Restricted Shares issued and outstanding at June 30, 2015. |
Reportable Segments
Reportable Segments | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Reportable Segments | 15. Reportable Segments The FASB guidance on segment reporting establishes standards for the way that public business enterprises report information about operating segments in financial statements and requires that those enterprises report selected financial information about reportable segments in interim financial reports issued to shareholders. Prior to the approval of the plan of liquidation, based on the Trust’s method of internal reporting, management determined that it had three reportable segments: (i) the ownership of operating properties; (ii) the origination and acquisition of loans and debt securities secured directly or indirectly by commercial and multi-family real property – collectively, loan assets; and (iii) the ownership of equity and debt securities in other REITs – REIT securities. Subsequent to the adoption of the plan of liquidation, the Trust no longer makes operating decisions or assesses performance in separate segments. Accordingly, the Trust has only one reporting and operating segment subsequent to July 31, 2014. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 16. Variable Interest Entities Consolidated Variable Interest Entities Under going concern accounting, consolidated variable interest entities are those where the Trust is the primary beneficiary of a variable interest entity. The primary beneficiary is the party that has a controlling financial interest in the VIE, which is defined by the entity having both of the following characteristics: 1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance, and 2) the obligation to absorb losses and right to receive the returns from the VIE that could be significant to the VIE. At June 30, 2014, the Trust had identified two consolidated variable interest entities; its Cerritos, California office property and 1515 Market Street, its office property located in Philadelphia, Pennsylvania. The 1515 Market Street property was sold on December 2, 2014. The Trust has no future funding obligations to the Cerritos, California property and the Trust’s maximum exposure to loss is limited to its invested capital. Variable Interest Entities Not Consolidated Equity Method and Preferred Equity Investments Loans Receivable and Loan Securities – Certain loans receivable and loan securities which had been determined to be VIEs were performing assets, meeting their debt service requirements. In those cases the borrower held legal title to the real estate collateral and had the power to direct the activities that most significantly impacted the economic performance of the VIE, including management and leasing activities. In the event of default under those loans, the Trust only had protective rights and its obligation to absorb losses was limited to the extent of its loan investment. The borrower was determined to be the primary beneficiary for those performing assets. The Trust determined that it did not have the power to direct the activities of the properties collateralizing any of its loans receivable and loan securities. For this reason, management believed that it did not control, nor was it the primary beneficiary of these properties. Accordingly, the Trust accounted for these investments under the guidance for loans receivable and real estate debt investments. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. Subsequent Events The Trust has performed an evaluation of subsequent events through the date of issuance of the consolidated financial statements and noted no items requiring adjustment of the consolidated financial statements or additional disclosures. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Pre Plan of Liquidation The accompanying unaudited consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial statements and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements, although management believes that the disclosures presented herein are adequate to make the accompanying unaudited consolidated interim financial statements not misleading. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated annual financial statements and the notes thereto included in Winthrop’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC. In the opinion of management, all adjustments considered necessary for fair statements have been included, and all such adjustments were of a normal recurring nature. The results of operations for the interim periods were not necessarily indicative of the operating results for the full year. The accompanying unaudited consolidated interim financial statements represent the consolidated results of Winthrop, its wholly-owned taxable REIT subsidiary, WRT-TRS Management Corp., the Operating Partnership and all majority-owned subsidiaries and affiliates over which the Trust has financial and operating control and variable interest entities (“VIE”s) in which the Trust has determined it is the primary beneficiary. All significant intercompany balances and transactions have been eliminated in consolidation. Prior to the adoption of the plan of liquidation, the Trust accounted for all other unconsolidated joint ventures using the equity method of accounting. Accordingly, the Trust’s share of the earnings of these joint ventures and companies was included in consolidated net income. The consolidated financial statements for the periods ended June 30, 2014 were prepared on the going concern basis of accounting, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Post Plan of Liquidation |
Liquidation Basis of Accounting | Liquidation Basis of Accounting As a result of the approval of the plan of liquidation by the shareholders, the Trust has adopted the liquidation basis of accounting as of August 1, 2014 and for the periods subsequent to August 1, 2014 in accordance with GAAP. Accordingly, on August 1, 2014 assets were adjusted to their estimated net realizable value, or liquidation value, which represents the estimated amount of cash that the Trust will collect on disposal of assets as it carries out its plan of liquidation. The liquidation value of the Trust’s operating properties and loan assets are presented on an undiscounted basis. Estimated costs to dispose of assets have been presented separately from the related assets. Liabilities are carried at their contractual amounts due or estimated settlement amounts. The Trust accrues costs and income that it expects to incur and earn through the end of liquidation to the extent it has a reasonable basis for estimation. These amounts are classified as a liability for estimated costs in excess of estimated receipts during liquidation on the Consolidated Statements of Net Assets. Actual costs and income may differ from amounts reflected in the financial statements because of inherent uncertainty in estimating future events. These differences may be material. See Note 4 for further discussion. Actual costs incurred but unpaid as of June 30, 2015 are included in accounts payable, accrued liabilities and other liabilities on the Consolidated Statements of Net Assets. In liquidation, the presentation for joint ventures historically consolidated under going concern accounting is determined based on the Trust’s planned exit strategy. Those ventures where the Trust intends to sell the property are presented on a gross basis with a payable to the non-controlling interest holder. Those ventures where the Trust intends to sell its interest in the venture, rather than the property, are presented on a net basis and are included in equity investments on the Consolidated Statements of Net Assets. Amounts due to non-controlling interests in connection with the disposition of consolidated joint ventures have been accrued and are recorded as liability for non-controlling interests. Net assets in liquidation represents the estimated liquidation value available to holders of Common Shares upon liquidation. Due to the uncertainty in the timing of the anticipated sale dates and the estimated cash flows, actual operating results and sale proceeds may differ materially from the amounts estimated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions in determining the values of assets and liabilities, disclose contingent assets and liabilities at the date of the consolidated financial statements and the amounts of revenue and expenses during the reporting period. Under going concern accounting, the estimates that were particularly susceptible to management’s judgment include, but are not limited to, the impairment of real estate, loans and investments in ventures and real estate securities carried at fair value. In addition, estimates are used in accounting for the allowance for doubtful accounts. Under liquidation accounting, the Trust is required to estimate all costs and income that it expects to incur and earn through the end of liquidation including the estimated amount of cash it will collect on disposal of its assets and estimated costs incurred to dispose of assets. All of the estimates and evaluations are susceptible to change and actual results could differ materially from the estimates and evaluations. |
Earnings Per Share | Earnings Per Share Prior to the adoption of the plan of liquidation, the Trust determined basic earnings per share on the weighted average number of Common Shares outstanding during the period and reflected the impact of participating securities. The Trust computed diluted earnings per share based on the weighted average number of Common Shares outstanding combined with the incremental weighted average effect from all outstanding potentially dilutive instruments. The Trust calculated earnings per share in accordance with relevant accounting guidance for participating securities and the two class method. The reconciliation of earnings attributable to Common Shares outstanding for the basic and diluted earnings per share calculation is as follows (in thousands, except per share data): Three Months Ended Six Months Ended Basic Income (loss) from continuing operations $ 210 $ (4,972 ) Loss attributable to non-controlling interest 1,980 3,369 Preferred dividend of Series D Preferred Shares (2,786 ) (5,573 ) Amount allocated to Restricted Common Shares (97 ) (192 ) Loss from continuing operations applicable to Common Shares (693 ) (7,368 ) Income from discontinued operations 6,772 11,151 Loss attributable to non-controlling interest from discontinued operations — 54 Net income applicable to Common Shares for earnings per share purposes $ 6,079 $ 3,837 Basic weighted-average Common Shares 35,824 35,820 Loss from continuing operations $ (0.02 ) $ (0.20 ) Income from discontinued operations 0.19 0.31 Net income per Common Share - Basic $ 0.17 $ 0.11 Diluted Income (loss) from continuing operations $ 210 $ (4,972 ) Loss attributable to non-controlling interest 1,980 3,369 Preferred dividend of Series D Preferred Shares (2,786 ) (5,573 ) Amount allocated to Restricted Common Shares (97 ) (192 ) Loss from continuing operations applicable to Common Shares (693 ) (7,368 ) Income from discontinued operations 6,772 11,151 Loss attributable to non-controlling interest from discontinued operations — 54 Net income applicable to Common Shares for earnings per share purposes $ 6,079 $ 3,837 Basic weighted-average Common Shares 35,824 35,820 Restricted Common Shares (1) — — Diluted weighted-average Common Shares 35,824 35,820 Loss from continuing operations $ (0.02 ) $ (0.20 ) Income from discontinued operations 0.19 0.31 Net income per Common Share - Diluted $ 0.17 $ 0.11 (1) The Trust’s Restricted Common Shares were anti-dilutive for the three and six months ended June 30, 2014 and are not included in the weighted-average shares outstanding for the calculation of diluted earnings per Common Share. The amendments to the Restricted Common Shares discussed in Note 14 had no impact on the calculation of earnings per share for the period presented. For the quarter ended June 30, 2014, the Trust paid a regular quarterly dividend of $0.1625 per Common Share and a regular quarterly dividend of $0.578125 per Series D Cumulative Redeemable Preferred Share (the “Series D Preferred Shares”). A liquidating distribution of $2.25 per Common Share was paid on January 15, 2015 to common shareholders of record on January 5, 2015. A liquidating distribution of $1.25 per Common Share was paid on June 16, 2015 to common shareholders of record on June 9, 2015. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Reconciliation of Earnings Attributable to Common Shares Outstanding for the Basic and Diluted EPS | The reconciliation of earnings attributable to Common Shares outstanding for the basic and diluted earnings per share calculation is as follows (in thousands, except per share data): Three Months Ended Six Months Ended Basic Income (loss) from continuing operations $ 210 $ (4,972 ) Loss attributable to non-controlling interest 1,980 3,369 Preferred dividend of Series D Preferred Shares (2,786 ) (5,573 ) Amount allocated to Restricted Common Shares (97 ) (192 ) Loss from continuing operations applicable to Common Shares (693 ) (7,368 ) Income from discontinued operations 6,772 11,151 Loss attributable to non-controlling interest from discontinued operations — 54 Net income applicable to Common Shares for earnings per share purposes $ 6,079 $ 3,837 Basic weighted-average Common Shares 35,824 35,820 Loss from continuing operations $ (0.02 ) $ (0.20 ) Income from discontinued operations 0.19 0.31 Net income per Common Share - Basic $ 0.17 $ 0.11 Diluted Income (loss) from continuing operations $ 210 $ (4,972 ) Loss attributable to non-controlling interest 1,980 3,369 Preferred dividend of Series D Preferred Shares (2,786 ) (5,573 ) Amount allocated to Restricted Common Shares (97 ) (192 ) Loss from continuing operations applicable to Common Shares (693 ) (7,368 ) Income from discontinued operations 6,772 11,151 Loss attributable to non-controlling interest from discontinued operations — 54 Net income applicable to Common Shares for earnings per share purposes $ 6,079 $ 3,837 Basic weighted-average Common Shares 35,824 35,820 Restricted Common Shares (1) — — Diluted weighted-average Common Shares 35,824 35,820 Loss from continuing operations $ (0.02 ) $ (0.20 ) Income from discontinued operations 0.19 0.31 Net income per Common Share - Diluted $ 0.17 $ 0.11 (1) The Trust’s Restricted Common Shares were anti-dilutive for the three and six months ended June 30, 2014 and are not included in the weighted-average shares outstanding for the calculation of diluted earnings per Common Share. The amendments to the Restricted Common Shares discussed in Note 14 had no impact on the calculation of earnings per share for the period presented. |
Liability for Estimated Costs26
Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Changes in Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation | The change in the liability for estimated costs in excess of estimated receipts during liquidation as of June 30, 2015 is as follows (in thousands): December 31, 2014 Cash Payments Remeasurement June 30, 2015 Assets: Estimated net inflows from investments in real estate, loans receivable and secured financing receivable $ 25,169 $ (7,428 ) $ (865 ) $ 16,876 Liabilities: Sales costs (11,840 ) 578 (34 ) (11,296 ) Corporate expenditures (44,582 ) 7,942 (1,721 ) (38,361 ) (56,422 ) 8,520 (1,755 ) (49,657 ) Total liability for estimated costs in excess of estimated receipts during liquidation $ (31,253 ) $ 1,092 $ (2,620 ) $ (32,781 ) |
Loans Receivable (Tables)
Loans Receivable (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Summary of Trust's Loans Receivable | The Trust’s loans receivable at June 30, 2015 and December 31, 2014 are as follows (in thousands): Carrying Amount (1) Description Loan Position Stated June 30, December 31, Contractual Rockwell Mezzanine 12.0% $ — $ — 05/01/16 Churchill Whole Loan LIBOR + 3.75% — — 08/01/16 Popiu Shopping Village B-Note 6.62% 2,786 2,804 01/06/17 Edens Center and Norridge Commons (2) Mezzanine LIBOR + 12% (3) 3,098 18,690 03/09/17 Mentor Building Whole Loan 10.0% 2,511 2,511 09/10/17 $ 8,395 $ 24,005 (1) The carrying amount represents the estimated amount expected to be collected on disposition of the loan plus contractual interest receivable. (2) Carrying amount includes the par amount plus the estimated amount to be collected on the participation interest of $3,000 and accrued interest of $1. (3) LIBOR floor of 0.5%. |
Activity Related to Loans Receivable | Activity related to loans receivable is as follows (in thousands): Six Months Ended Six Months Ended Balance at beginning of period $ 24,005 $ 101,100 Purchase and advances — 21,992 Interest received, net (191 ) (44 ) Repayments/sale proceeds/forgiveness (15,419 ) (74,157 ) Loan discount accretion — 1,591 Discount accretion received in cash — (5,865 ) Balance at end of period $ 8,395 $ 44,617 |
Interest and Discount Accretion Income | The following table summarizes the Trust’s interest and discount accretion income for the three and six months ended June 30, 2014 (in thousands): Three Months Ended Six Months Ended Interest on loan assets $ 2,366 $ 4,871 Exit fee/prepayment penalty — 1,787 Accretion of loan discount 386 1,591 Total interest and discount accretion $ 2,752 $ 8,249 |
Equity Investments (Tables)
Equity Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Trust's Nominal Ownership Percentages in its Equity Investments | The Trust’s nominal ownership percentages in its equity investments consist of the following at June 30, 2015 and December 31, 2014: Venture Partner Equity Investment Nominal % Ownership Nominal % Ownership Elad Canada Ltd WRT One South State Lender LP 50.0 % 50.0 % Elad Canada Ltd WRT-Elad One South State Equity LP 50.0 % 50.0 % Atrium Holding RE CDO Management LLC 50.0 % 50.0 % Freed Mentor Retail LLC 49.9 % 49.9 % Inland Concord Debt Holdings LLC 66.6 % 66.6 % Inland CDH CDO LLC 49.6 % 49.6 % Marc Realty Atrium Mall LLC 50.0 % 50.0 % New Valley/Witkoff 701 Seventh WRT Investor LLC 81.0 % 81.0 % RS Summit Pointe (1) RS Summit Pointe Apartments LLC 80.0 % 80.0 % Freed Edens Plaza Associates LLC <1 % <1 % Freed (1) Irving-Harlem Venture Limited <1 % <1 % Gancar Trust (2) Vintage Housing Holdings LLC n/a 75.0 % (1) Investment was previously consolidated under going concern accounting. See Note 3 “Liquidation Basis of Accounting” for further discussion. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Mortgage Loans Payable | The Trust’s mortgage loans payable at June 30, 2015 and December 31, 2014 are summarized as follows (in thousands): Location of Collateral Maturity Spread Over LIBOR Interest Rate at June 30, December 31, Lisle, IL Oct 2015 Libor + 2.5% 2.69 % $ 5,541 $ 5,713 Chicago, IL Mar 2016 — 5.75 % 19,296 19,491 New York, NY May 2016 Libor + 2.5% (2) 3.50 % 50,750 51,034 Greensboro, NC Aug 2016 — 6.22 % 13,600 13,600 Stamford, CT (4)(5) Oct 2016 Libor + 2.0% (3) 2.69 % 33,448 44,923 Houston, TX (4)(5) Oct 2016 Libor + 2.0% (3) 2.69 % 44,319 59,524 Cerritos, CA Jan 2017 — 5.07 % 23,000 23,000 Lisle, IL Mar 2017 — 5.55 % 5,350 5,392 Orlando, FL Jul 2017 — 6.40 % 36,009 36,347 Plantation, FL Apr 2018 — 6.48 % 10,478 10,550 Churchill, PA Aug 2024 — 3.50 % 4,850 4,918 Phoenix, AZ (4)(5) n/a — n/a — 22,462 $ 246,641 $ 296,954 (1) The one-month LIBOR rate at June 30, 2015 was 0.1865%. The one-month LIBOR rate at December 31, 2014 was 0.17125%. (2) The loan has a LIBOR floor of 1%. (3) The loan has an interest rate swap which effectively fixes LIBOR at 0.69%. (4) These properties are cross-collateralized. Proceeds from property sales go 100% to repay the mortgage loan. (5) A portion of the loan was satisfied during 2015 in connection with the sale of a property. |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Fees and Reimbursements Paid by the Trust | The following table sets forth the fees and reimbursements paid by the Trust for the three and six months ended June 30, 2015 and 2014 to FUR Advisors and Winthrop Management LP (“Winthrop Management”) (in thousands): For the Three Months Ended For the Six Months Ended June 30, June 30, June 30, June 30, Base Asset Management Fee (1) $ 1,635 $ 2,399 $ 3,319 $ 4,774 Property Management Fee 261 338 545 657 Construction Management Fee 66 110 97 189 $ 1,962 $ 2,847 $ 3,961 $ 5,620 (1) Includes fees on third party contributions of $7 and $23 for the three months ended June 30, 2015 and 2014, respectively, and of $14 and $48 for the six months ended June 30, 2015 and 2014, respectively. |
Organization - Additional Infor
Organization - Additional Information (Detail) - Segment | 6 Months Ended | 7 Months Ended | 11 Months Ended |
Jun. 30, 2015 | Jul. 31, 2014 | Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Percentage of limited partnership interest in Operating Partnership | 100.00% | ||
Number of operating segments | 3 | 1 | |
Number of reportable segments | 3 | 1 |
Plan of Liquidation - Additiona
Plan of Liquidation - Additional Information (Detail) - Jun. 30, 2015 | Total |
Business Acquisition [Line Items] | |
Senior notes interest rate | 7.75% |
Liquidation date on which disposition of assets completes | Jun. 30, 2015 |
Liquidation Value [Member] | |
Business Acquisition [Line Items] | |
Liquidation date on which disposition of assets completes | Aug. 5, 2016 |
Liquidation Value [Member] | Senior Notes [Member] | |
Business Acquisition [Line Items] | |
Senior notes interest rate | 7.75% |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Reconciliation of Earnings Attributable to Common Shares Outstanding for the Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Per Common Share data - Basic | |||
Income (loss) from continuing operations | $ 210 | $ (4,972) | |
Loss attributable to non-controlling interest | 1,980 | 3,369 | |
Preferred dividend of Series D Preferred Shares | (2,786) | (5,573) | |
Amount allocated to Restricted Common Shares | (97) | $ (192) | (192) |
Loss from continuing operations applicable to Common Shares | (693) | (7,368) | |
Income from discontinued operations | 6,772 | 11,151 | |
Loss attributable to non-controlling interest from discontinued operations | 54 | ||
Net income attributable to Common Shares | $ 6,079 | $ 3,837 | |
Basic Weighted-Average Common Shares | 35,824 | 35,820 | |
Loss from continuing operations | $ (0.02) | $ (0.20) | |
Income from discontinued operations | 0.19 | 0.31 | |
Net income per Common Share - Basic | $ 0.17 | $ 0.11 | |
Diluted | |||
Income (loss) from continuing operations | $ 210 | $ (4,972) | |
Loss attributable to non-controlling interest | 1,980 | 3,369 | |
Preferred dividend of Series D Preferred Shares | (2,786) | (5,573) | |
Amount allocated to Restricted Common Shares | (97) | $ (192) | (192) |
Loss from continuing operations applicable to Common Shares | (693) | (7,368) | |
Income from discontinued operations | 6,772 | 11,151 | |
Loss attributable to non-controlling interest from discontinued operations | 54 | ||
Net income attributable to Common Shares | $ 6,079 | $ 3,837 | |
Basic weighted-average Common Shares | 35,824 | 35,820 | |
Diluted weighted-average Common Shares | 35,824 | 35,820 | |
Loss from continuing operations | $ (0.02) | $ (0.20) | |
Income from discontinued operations | 0.19 | 0.31 | |
Net income per Common Share - Diluted | $ 0.17 | $ 0.11 | |
Restricted Shares [Member] | |||
Per Common Share data - Basic | |||
Amount allocated to Restricted Common Shares | $ (97) | $ (192) | |
Diluted | |||
Amount allocated to Restricted Common Shares | $ (97) | $ (192) | |
Restricted Common Shares | 0 | 0 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Additional Information (Detail) - $ / shares | Jun. 16, 2015 | Jan. 15, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Quarterly dividend paid per Common Share | $ 0.1625 | |||
Liquidation distribution per share | $ 1.25 | $ 2.25 | $ 15.23 | |
Series D Preferred Shares of Beneficial Interest [Member] | ||||
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Quarterly dividend paid per Series D Preferred Share | $ 0.578125 |
Liability for Estimated Costs35
Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation - Schedule of Changes in Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation (Detail) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Business Acquisition [Line Items] | |
Total liability for estimated costs in excess of estimated receipts during liquidation, beginning balance | $ (31,253,000) |
Cash Payments (Receipts) | (1,092,000) |
Remeasurement of Assets and Liabilities | 2,620,000 |
Total liability for estimated costs in excess of estimated receipts during liquidation, ending balance | (32,781,000) |
Corporate Expenditures [Member] | |
Business Acquisition [Line Items] | |
Remeasurement of Assets and Liabilities | 1,721,000 |
Assets [Member] | |
Business Acquisition [Line Items] | |
Estimated net inflows from investments in real estate, loans receivable and secured financing receivable, beginning balance | 25,169,000 |
Cash Payments (Receipts) | 7,428,000 |
Remeasurement of Assets and Liabilities | 865,000 |
Estimated net inflows from investments in real estate, loans receivable and secured financing receivable, ending balance | 16,876,000 |
Liability [Member] | |
Business Acquisition [Line Items] | |
Total liability for estimated costs, beginning balance | (56,422,000) |
Cash Payments (Receipts) | 8,520,000 |
Remeasurement of Assets and Liabilities | (1,755,000) |
Total liability for estimated costs, ending balance | (49,657,000) |
Liability [Member] | Sales Costs [Member] | |
Business Acquisition [Line Items] | |
Total liability for estimated costs, beginning balance | (11,840,000) |
Cash Payments (Receipts) | 578,000 |
Remeasurement of Assets and Liabilities | (34,000) |
Total liability for estimated costs, ending balance | (11,296,000) |
Liability [Member] | Corporate Expenditures [Member] | |
Business Acquisition [Line Items] | |
Total liability for estimated costs, beginning balance | (44,582,000) |
Cash Payments (Receipts) | 7,942,000 |
Remeasurement of Assets and Liabilities | (1,721,000) |
Total liability for estimated costs, ending balance | $ (38,361,000) |
Net Assets in Liquidation - Add
Net Assets in Liquidation - Additional Information (Detail) - USD ($) | Jun. 16, 2015 | Jan. 15, 2015 | Jun. 30, 2015 |
Business Acquisition [Line Items] | |||
Decreased in net assets on liquidation | $ (39,812,000) | ||
Liquidating distributions to holders of Common Shares | 45,531,000 | ||
Remeasurement of non-controlling interests | 590,000 | ||
Change in liquidation value of investments in real estate | 9,692,000 | ||
Change in liquidation value of equity investments | 155,000 | ||
Remeasurement of Assets and Liabilities | $ 2,620,000 | ||
Liquidation distribution per share | $ 1.25 | $ 2.25 | $ 15.23 |
Liquidation date, expected completion | Jun. 30, 2015 | ||
Corporate Expenditures [Member] | |||
Business Acquisition [Line Items] | |||
Remeasurement of Assets and Liabilities | $ 1,721,000 |
Property Dispositions - Additio
Property Dispositions - Additional Information (Detail) - USD ($) | Jun. 26, 2015 | Jun. 15, 2015 | Apr. 14, 2015 | Jul. 16, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Phoenix Az [Member] | 44 Monroe [Member] | ||||||
Property Dispositions (Line Items) | ||||||
Ownership percentage in real estate investment | 83.70% | |||||
Proceeds from sale of real estate, gross | $ 50,650,000 | |||||
Proceeds from sale of real estate, net | $ 49,143,000 | |||||
Liquidation value of property | $ 50,650,000 | |||||
California [Member] | Cerritos [Member] | ||||||
Property Dispositions (Line Items) | ||||||
Proceeds from sale of real estate, gross | $ 30,500,000 | |||||
Liquidation value of property | $ 30,500,000 | 29,916,000 | ||||
California [Member] | Cerritos [Member] | Subsequent Event [Member] | ||||||
Property Dispositions (Line Items) | ||||||
Buyer's deposit under the purchase contract | $ 850,000 | |||||
Stamford, CT [Member] | Highgrove [Member] | ||||||
Property Dispositions (Line Items) | ||||||
Ownership percentage in real estate investment | 83.70% | |||||
Proceeds from sale of real estate, gross | $ 90,000,000 | |||||
Liquidation value of property | 90,000,000 | $ 84,867,000 | ||||
Buyer's deposit under the purchase contract | $ 2,000,000 |
Loans Receivable - Summary of T
Loans Receivable - Summary of Trust's Loans Receivable (Detail) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, net | $ 8,395 | $ 24,005 | $ 44,617 | $ 101,100 |
Rockwell [Member] | Mezzanine [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage Loans, Stated Interest Rate, Variable Rate Basis | 12 | |||
Interest rate on mortgage loans | 12.00% | |||
Contractual Maturity Date | May 1, 2016 | |||
Churchill [Member] | Whole Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage Loans, Stated Interest Rate, Variable Rate Basis | LIBOR + 3.75% | |||
Interest rate on mortgage loans | 3.75% | |||
Contractual Maturity Date | Aug. 1, 2016 | |||
Popiu Shopping Village [Member] | B Note [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage Loans, Stated Interest Rate, Variable Rate Basis | 6.62 | |||
Interest rate on mortgage loans | 6.62% | |||
Loans receivable, net | $ 2,786 | 2,804 | ||
Contractual Maturity Date | Jan. 6, 2017 | |||
Edens Center and Norridge Commons [Member] | Mezzanine [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage Loans, Stated Interest Rate, Variable Rate Basis | LIBOR + 12% | |||
Interest rate on mortgage loans | 12.00% | |||
Loans receivable, net | $ 3,098 | 18,690 | ||
Contractual Maturity Date | Mar. 9, 2017 | |||
Mentor Building [Member] | Whole Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Mortgage Loans, Stated Interest Rate, Variable Rate Basis | 10 | |||
Interest rate on mortgage loans | 10.00% | |||
Loans receivable, net | $ 2,511 | $ 2,511 | ||
Contractual Maturity Date | Sep. 10, 2017 |
Loans Receivable - Summary of39
Loans Receivable - Summary of Trust's Loans Receivable (Parenthetical) (Detail) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, accrued interest | $ 27,000 | $ 218,000 |
Edens Center and Norridge Commons [Member] | Mezzanine [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount to be collected on participating interest of loans | 3,000,000 | 3,000,000 |
Loans receivable, accrued interest | $ 1,000 | $ 1,000 |
LIBOR floor, percentage | 0.50% |
Loans Receivable - Additional I
Loans Receivable - Additional Information (Detail) | Feb. 05, 2015USD ($) | Aug. 31, 2013USD ($) | Jun. 30, 2014USD ($)Loans | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($)Loans | Dec. 31, 2014USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans receivable, accrued interest | $ 27,000 | $ 218,000 | ||||
Weighted average coupon rate on loans receivable | 8.04% | 10.55% | ||||
Weighted average yield to maturity | 13.73% | 12.78% | ||||
Provision for loan loss | $ 0 | $ 0 | ||||
Number of non-performing loans with past due payments | Loans | 1 | 1 | ||||
Period for the return of assets | 2 years | |||||
Annual interest rate | 15.00% | |||||
Edens Center and Norridge Commons [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Principal payment of loans | $ 15,275,000 | |||||
Outstanding principal balance on loan receivable | $ 97,000 | |||||
Loan participation interest IRR percentage | 14.50% | |||||
Loan participation interest IRR percentage after initial term | 15.50% | |||||
Loan participation interest percentage | 30.00% | |||||
Loan participation interest percentage after initial term | 40.00% | |||||
Minimum value of properties for entitlement to loan participation interest | $ 115,000,000 | |||||
Description of Trust's participation interest in loan | Upon satisfaction of the loan, the Trust is entitled to a participation interest equal to the greater of (i) a 14.5% internal rate of return ("IRR") (increasing to a 15.5% IRR after March 9, 2017) and (ii) 30% (increasing to 40% after March 9, 2017 and 50% after March 9, 2018) of the value of both of the properties which collateralized the loan in excess of $115,000,000. | |||||
Loan participation interest percentage after initial term | 50.00% | |||||
Lender LP [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Secured financing receivable | $ 30,000,000 | |||||
Elad Canada Ltd [Member] | Lender LP [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Rate of interest for acquisition | 50.00% | |||||
Secured Financing Receivable [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Interest income | $ 951,000 | $ 1,892,000 |
Loans Receivable - Activity Rel
Loans Receivable - Activity Related to Loans Receivable (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Receivables [Abstract] | |||
Balance at beginning of period | $ 24,005 | $ 101,100 | |
Purchase and advances | 21,992 | ||
Interest received, net | (191) | (44) | |
Repayments/Sale proceeds/forgiveness | (15,419) | (74,157) | |
Loan discount accretion | $ 386 | 1,591 | |
Discount accretion received in cash | (5,865) | ||
Balance at end of period | $ 44,617 | $ 8,395 | $ 44,617 |
Loans Receivable - Interest and
Loans Receivable - Interest and Discount Accretion Income (Detail) - Jun. 30, 2014 - USD ($) $ in Thousands | Total | Total |
Receivables [Abstract] | ||
Interest on loan assets | $ 2,366 | $ 4,871 |
Exit fee/prepayment penalty | 1,787 | |
Accretion of loan discount | 386 | 1,591 |
Total interest and discount accretion | $ 2,752 | $ 8,249 |
Equity Investments - Trust's No
Equity Investments - Trust's Nominal Ownership Percentages in its Equity Investments (Detail) | Jun. 30, 2015 | Dec. 31, 2014 |
WRT One South State Lender LP [Member] | Elad Canada Ltd [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 50.00% | 50.00% |
WRT-Elad One South State Equity LP [Member] | Elad Canada Ltd [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 50.00% | 50.00% |
RE CDO Management LLC [Member] | Atrium Holding [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 50.00% | 50.00% |
Mentor Retail LLC [Member] | Freed [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 49.90% | 49.90% |
Concord Debt Holdings LLC [Member] | Inland [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 66.60% | 66.60% |
CDH CDO LLC [Member] | Inland [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 49.60% | 49.60% |
Atrium Mall LLC [Member] | Marc Realty [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 50.00% | 50.00% |
701 Seventh WRT Investor LLC [Member] | New Valley/Witkoff [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 81.00% | 81.00% |
RS Summit Pointe [Member] | RS Summit Pointe Apartments LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 80.00% | 80.00% |
Edens Plaza Associates LLC [Member] | Freed [Member] | Maximum [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 1.00% | 1.00% |
Irving-Harlem Venture Limited [Member] | Freed [Member] | Maximum [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 1.00% | 1.00% |
Vintage Housing Holdings, LLC [Member] | Gancar Trust [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Nominal % Ownership | 75.00% |
Equity Investments - Additional
Equity Investments - Additional Information (Detail) | Jul. 01, 2015USD ($) | Jun. 25, 2015USD ($)AssetsSecurityLoan | Jun. 01, 2015USD ($) | Jan. 02, 2015USD ($) | May. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Proceeds from sale of interest in joint venture | $ 82,471,000 | $ 200,000 | ||||||||
Distributions received | $ 4,959,000 | $ 673,000 | ||||||||
Vintage Housing Holdings [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Additional contribution in equity investments | $ 5,645,000 | |||||||||
Liquidation value of investment | $ 82,928,000 | |||||||||
Concord Debt Holdings LLC [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Distributions received | $ 20,173,000 | |||||||||
701 Seventh WRT Investor LLC [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Additional capital contributions | $ 673,000 | $ 1,529,000 | ||||||||
Capital contributions | 108,825,000 | |||||||||
Aggregate committed capital investment amount | $ 125,000,000 | |||||||||
CDH CDO LLC [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Proceeds from sale of interest in joint venture | $ 54,122,000 | |||||||||
Number of bond assets sold | Assets | 4 | |||||||||
Number of loan asset sold | SecurityLoan | 1 | |||||||||
CDH CDO LLC [Member] | Subsequent Event [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Amount received from the venture | $ 6,200,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Mortgage loans payable | $ 246,641,000 | $ 296,954,000 |
B Note [Member] | Cerritos, CA [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate of B Note | 6.6996% | |
Percentage on return on capital | 9.00% | |
B Note [Member] | Cerritos, CA [Member] | Six Point Six Nine Nine Six Percent Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Note issued | $ 14,500,000 | |
Amount payable on notes for interest accruing | 12,000 | |
Liquidation value of loan | $ 272,000 | $ 0 |
Debt - Mortgage Loans Payable (
Debt - Mortgage Loans Payable (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Mortgage loans payable | $ 246,641 | $ 296,954 |
Mortgage Loans Payable [Member] | Phoenix Az [Member] | ||
Debt Instrument [Line Items] | ||
Loan bears interest, description of variable rate basis | - | |
Mortgage loans payable | 22,462 | |
Mortgage Loans Payable [Member] | 3.50% Loan Due in May 2016 [Member] | New York, NY [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | May 2,016 | |
Loan bears interest, description of variable rate basis | Libor + 2.5% | |
Interest Rate | 3.50% | |
Mortgage loans payable | $ 50,750 | 51,034 |
Mortgage Loans Payable [Member] | 2.69% Loan Due in Oct 2016 [Member] | Stamford, CT [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | Oct 2,016 | |
Loan bears interest, description of variable rate basis | Libor + 2.0% | |
Interest Rate | 2.69% | |
Mortgage loans payable | $ 33,448 | 44,923 |
Mortgage Loans Payable [Member] | 2.69% Loan Due in Oct 2016 [Member] | Houston, TX [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | Oct 2,016 | |
Loan bears interest, description of variable rate basis | Libor + 2.0% | |
Interest Rate | 2.69% | |
Mortgage loans payable | $ 44,319 | 59,524 |
Mortgage Loans Payable [Member] | 2.69% Loan Due in Oct 2015 [Member] | Lisle, IL [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | Oct 2,015 | |
Loan bears interest, description of variable rate basis | Libor + 2.5 | |
Interest Rate | 2.69% | |
Mortgage loans payable | $ 5,541 | 5,713 |
Mortgage Loans Payable [Member] | 5.75% Loan Due in Mar 2016 [Member] | Chicago, IL [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | Mar 2,016 | |
Loan bears interest, description of variable rate basis | - | |
Interest Rate | 5.75% | |
Mortgage loans payable | $ 19,296 | 19,491 |
Mortgage Loans Payable [Member] | 6.22% Loan Due in Aug 2016 [Member] | Greensboro, North Carolina Sale [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | Aug 2,016 | |
Loan bears interest, description of variable rate basis | - | |
Interest Rate | 6.22% | |
Mortgage loans payable | $ 13,600 | 13,600 |
Mortgage Loans Payable [Member] | 5.07% Loan Due in Jan 2017 [Member] | Cerritos, CA [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | Jan 2,017 | |
Loan bears interest, description of variable rate basis | - | |
Interest Rate | 5.07% | |
Mortgage loans payable | $ 23,000 | 23,000 |
Mortgage Loans Payable [Member] | 5.55% Loan Due in Mar 2017 [Member] | Lisle, IL [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | Mar 2,017 | |
Loan bears interest, description of variable rate basis | - | |
Interest Rate | 5.55% | |
Mortgage loans payable | $ 5,350 | 5,392 |
Mortgage Loans Payable [Member] | 6.40% Loan Due in Jul 2017 [Member] | Orlando, FL [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | Jul 2,017 | |
Loan bears interest, description of variable rate basis | - | |
Interest Rate | 6.40% | |
Mortgage loans payable | $ 36,009 | 36,347 |
Mortgage Loans Payable [Member] | 6.48% Loan Due in Apr 2018 [Member] | Plantation, FL [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | Apr 2,018 | |
Loan bears interest, description of variable rate basis | - | |
Interest Rate | 6.48% | |
Mortgage loans payable | $ 10,478 | 10,550 |
Mortgage Loans Payable [Member] | 3.50% Loan Due in Aug 2024 [Member] | Churchill [Member] | ||
Debt Instrument [Line Items] | ||
Maturity | Aug 2,024 | |
Loan bears interest, description of variable rate basis | - | |
Interest Rate | 3.50% | |
Mortgage loans payable | $ 4,850 | $ 4,918 |
Debt - Mortgage Loans Payable47
Debt - Mortgage Loans Payable (Parenthetical) (Detail) - Mortgage Loans Payable [Member] | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
LIBOR rate | 0.1865% | 0.17125% |
Phoenix Az [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of proceeds from sale of property used to repay mortgage | 100.00% | |
3.50% Loan Due in May 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument basis spread on floor rate | 1.00% | |
2.69% Loan Due in Oct 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Mortgage loan, LIBOR rate | 0.69% |
Senior Notes Payable - Addition
Senior Notes Payable - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Aug. 31, 2012 | |
Debt Instrument [Line Items] | ||
Senior notes payable | $ 71,255,000 | $ 86,250,000 |
Senior notes issue price | 100.00% | |
Senior notes interest rate | 7.75% | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Maturity period of the assumed debt | Aug. 15, 2022 | |
Redemption price of notes | 100.00% | |
Redemption description | The Trust has the right to redeem the Senior Notes, in whole or in part, at any time, or from time to time, on or after August 15, 2015 at a redemption price in cash equal to 100% of the principal amount redeemed plus accrued and unpaid interest. The Trust has notified the trustee of the Senior Notes that it will redeem the Senior Notes in full effective August 15, 2015. | |
Redemption date of notes in full effective | Aug. 15, 2015 | |
Securities Repurchase Plan [Member] | ||
Debt Instrument [Line Items] | ||
Senior notes payable | $ 14,995,000 | |
Aggregate price of outstanding notes | $ 15,707,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Jun. 30, 2015 - USD ($) | Total |
Property, Plant and Equipment [Line Items] | |
Future funding commitments | $ 16,175,000 |
Ground Lease [Member] | |
Property, Plant and Equipment [Line Items] | |
Ground lease commitments, 2015 | 749,000 |
Ground lease commitments, 2016 | 1,592,000 |
Ground lease commitments, 2017 | 1,656,000 |
Ground lease commitments, 2018 | 1,791,000 |
Ground lease commitments, 2019 | 1,844,000 |
Ground lease commitments, Thereafter | $ 105,784,000 |
Expiration date | Jun. 1, 2053 |
Related-Party Transactions - Fe
Related-Party Transactions - Fees and Reimbursements Paid by the Trust (Detail) - Winthrop Management [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Related Party Transaction [Line Items] | ||||
Fees and reimbursements paid by the Trust | $ 1,962 | $ 2,847 | $ 3,961 | $ 5,620 |
Base Asset Management Fee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Fees and reimbursements paid by the Trust | 1,635 | 2,399 | 3,319 | 4,774 |
Property Management Fee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Fees and reimbursements paid by the Trust | 261 | 338 | 545 | 657 |
Construction Management Fee [Member] | ||||
Related Party Transaction [Line Items] | ||||
Fees and reimbursements paid by the Trust | $ 66 | $ 110 | $ 97 | $ 189 |
Related-Party Transactions - 51
Related-Party Transactions - Fees and Reimbursements Paid by the Trust (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
FUR Advisors [Member] | ||||
Related Party Transaction [Line Items] | ||||
Management fee paid | $ 7 | $ 23 | $ 14 | $ 48 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - Jun. 30, 2015 - USD ($) | Total | Total |
Related Party Transaction [Line Items] | ||
Management fees | $ 8,768,000 | |
Termination fees | 9,496,000 | |
Incentive fees | $ 15,806,000 | |
FUR Advisors [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage of equity contributions | 1.50% | |
Percentage of equity contributions by unaffiliated third parties | 0.25% | |
Termination fees | $ 9,496,000 | |
Incentive fees | $ 15,806,000 | |
Percentage of amount available for distribution in excess of threshold amount | 20.00% | |
Threshold amount | $ 569,963,000 | $ 569,963,000 |
Percentage of growth rate on incentive fee | 4.00% | |
Yield plus percentage | 2.50% | |
Threshold amount required to be distributed before incentive fee | $ 454,517,000 | $ 454,517,000 |
Per share Threshold amount required to be distributed | $ 12.69 | $ 12.69 |
Equated annual rate of return | 4.00% | |
Percentage of positive difference between appraised net asset value and threshold amount on termination | 20.00% | |
Reduced threshold amount | $ 104,980,000 | |
Percentage of dividends paid on disposition | 20.00% | |
Aggregate distributions paid per Common Share | $ 9.76 | |
Base asset management fee | $ 9,496,000 | |
Aggregate dividend paid | $ 11.08 | |
Supplemental fee payment terms, description | payable if there is (i) a termination of the Advisory Agreement for any reason other than for cause (as defined) by the Trust or with cause by the Trust’s Advisor, (ii) a disposition of all or substantially all of the Trust’s assets, or (iii) an election by the Trust to orderly liquidate the Trust’s assets. The termination fee, if payable, is equal to the lesser of (i) the base management fee paid to the Trust’s Advisor for the prior twelve month period or (ii) either (x) in the case of a termination of the Advisory Agreement, 20% of the positive difference, if any between (A) the appraised net asset value of the Trust’s assets at the date of termination and (B) the threshold amount less $104,980,000, or (y) in the case of a disposition or liquidation, 20% of any dividends paid on account of the Trust’s Common Shares at such time as the threshold amount is reduced to $104,980,000, which will be achieved at such time as aggregate distributions of approximately $9.76 per Common Share in excess of the Growth Factor have been paid. | |
Payable to related parties included in related party fees payable | $ 1,635,000 | $ 1,635,000 |
FUR Advisors [Member] | US Treasury Bill Securities [Member] | ||
Related Party Transaction [Line Items] | ||
Period for growth factor on incentive | 5 years | |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Management fees | $ 1,635,000 | |
Winthrop Management LP [Member] | ||
Related Party Transaction [Line Items] | ||
Payable to related parties included in related party fees payable | $ 410,000 | $ 410,000 |
Restricted Share Grants - Addit
Restricted Share Grants - Additional Information (Detail) - USD ($) | Sep. 05, 2014 | May. 28, 2013 | Feb. 28, 2013 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | May. 21, 2013 | Feb. 01, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Non-cash compensation expense | $ 1,331,000 | |||||||
Restricted Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Non-cash compensation expense | $ 917,000 | $ 1,331,000 | ||||||
Shares issued | 10,000 | 591,250 | ||||||
Shares outstanding | 591,250 | |||||||
Shares vested | 8,750 | |||||||
Long Term Incentive 2007 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Initial restricted shares issued | 500,000 | 100,000 | ||||||
Long Term Incentive 2007 Plan [Member] | Restricted Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized for issuance | 1,000,000 | 600,000 | ||||||
Increase in shares issuable by shareholders | 500,000 |
Reportable Segments - Additiona
Reportable Segments - Additional Information (Detail) - Segment | 7 Months Ended | 11 Months Ended |
Jul. 31, 2014 | Jun. 30, 2015 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 3 | 1 |
Number of operating segments | 3 | 1 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - Jun. 30, 2014 | AssetsInvestmentVIEEntity |
Variable Interest Entity or Potential VIE, Information Unavailability, Disclosures [Abstract] | |
Number of identified consolidated variable interest entities | VIE | 2 |
Identified investments | 6 |
Investments with no equity at risk | 2 |
Number of additional entities | Entity | 4 |
Number of assets identified as variable interests in variable interest entities | Assets | 2 |
Investments lacking the right to receive returns | 1 |