UNITED
        STATES SECURITIES
        AND EXCHANGE COMMISSION
        Washington, D.C. 20549

FORM
        10-Q

x
        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934

For the
        Quarterly Period Ended: June 30, 2007
        Or

o
        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
        ACT OF 1934For the transition period from ____to ____

Commission File
        Number 1-6249

WINTHROP
        REALTY TRUST(Exact name of Registrant as specified in its certificate of
    incorporation)

|                                                                                       |                                                             
|-------------------------------------------------------------------------------------- | ------------------------------------------------------------
|Ohio                                                                                   | 34-6513657                                                  
|                                                                                       |                                                             
|(State or other
                        jurisdiction of incorporation or organization) | (IRS Employer
                        Identification Number)
|                                                                                       |                                                             
|                                                                                       |                                                             
|7 Bulfinch Place, Suite
                        500, Boston, Massachusetts             | 02114                                                       
|                                                                                       |                                                             
|(Address of principal
                        executive offices)                       | (Zip Code)                                                  
|                                                                                       |                                                             
|                                                                                       |                                                             
|(617) 570-4614                                                                        
|                                                                                      
|(Registrants
                        telephone number, including area code)          
|                                                                                       |                                                             

Indicate by check
        mark whether the registrant: (1) has filed all reports required to be filed by Section 13
        or 15(d) of the Securities and Exchange Act of 1934 during the preceding 12 months (or for
        such shorter period that the registrant was required to file such reports), and (2) has
        been subject to such filing requirements for at least the past 90 days. Yes
        ý No
        o

Indicate by check
        mark whether the registrant is a large accelerated filer, an accelerated filer, or a
        non-accelerated filer (as defined in Exchange Act Rule 12b-2).

Large Accelerated
        Filer
        o
        Accelerated filer
        ý Non-accelerated filer
        o

Indicate by check
        mark whether the registrant is a shell company (as defined in Exchange Act Rule12b-2). Yes
        o
        No
        ý

As of August 1,
        2007 there were 65,810,569 Common Shares of Beneficial Interest
        outstanding.



---

|                              | INDEX                                                                                                                                                             |     
|----------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----
|                              |                                                                                                                                                                   |     
|                              |                                                                                                                                                                   |     
|Part I.                       | Financial
                Information                                                                                                                             | Page
|                              |                                                                                                                                                                   |     
|Item 1.                       | Financial Statements
                (Unaudited):                                                                                                                 |     
|                              |                                                                                                                                                                   |     
|                              | Consolidated
                Balance Sheets as of June 30, 2007 and Consolidated Balance Sheets as of December
                31, 2006                           | 3   
|                              |                                                                                                                                                                   |     
|                              | Consolidated
                Statements of Operations and Comprehensive Income for the Three and Six Months
                Ended June 30, 2007 and June 30, 2006 | 4   
|                              |                                                                                                                                                                   |     
|                              | Consolidated
                Statement of Shareholders Equity for the Six Months Ended June 30,
                2007                                             | 5   
|                              |                                                                                                                                                                   |     
|                              | Consolidated
                Statements of Cash Flows for the Six Months Ended June 30, 2007 and June 30,
                2006                                    | 6   
|                              |                                                                                                                                                                   |     
|                              | Notes to
                Consolidated Financial Statements                                                                                                        | 8   
|                              |                                                                                                                                                                   |     
|Item 2.                       | Managements
                Discussion and Analysis of Financial Condition and Results of
                Operations                                             | 27  
|                              |                                                                                                                                                                   |     
|Item 3.                       | Quantitative
                and Qualitative Disclosure about Market Risk                                                                                         | 36  
|                              |                                                                                                                                                                   |     
|Item 4.                       | Controls and
                Procedures                                                                                                                           | 37  
|                              |                                                                                                                                                                   |     
|Part
                II.      | Other
                Information                                                                                                                                 |     
|                              |                                                                                                                                                                   |     
|Item 4.                       | Submission
                of Matters to a Vote of Security Holder                                                                                                | 38  
|                              |                                                                                                                                                                   |     
|Item 6.                       | Exhibits                                                                                                                                                          | 38  
|                              |                                                                                                                                                                   |     
|Signatures                    |                                                                                                                                                                   | 39  
|                              |                                                                                                                                                                   |     
|Exhibit
                Index |                                                                                                                                                                   | 40  

2



---

Item 1.
        Financial Information

WINTHROP
        REALTY TRUST
        FORM 10-Q - JUNE 30, 2007

CONSOLIDATED
        BALANCE SHEETS

(In thousands,
        except share and per share data)

|                                                                                    |                                       | 
|----------------------------------------------------------------------------------- | ------------------------------------- | 
|June 30, 2007
                    (Unaudited)                                       | December 31,
                    2006
|ASSETS                                                                              |                                       | 
|                                                                                    |                                       | 
|Investments in real
                estate, at cost                                 |                                       | 
|Land                                                                                |                                       | 
|Buildings
                and improvements                                          |                                       | 
|                                                                                    |                                       | 
|                                                                                    |                                       | 
|Less -
                Accumulated depreciation                                     |                                       | 
|                                                                                    |                                       | 
|Investments in real
                estate, net                                     |                                       | 
|                                                                                    |                                       | 
|Cash and cash
                equivalents                                           |                                       | 
|Restricted cash
                held in escrows                                     |                                       | 
|Mortgage-backed
                securities available for sale pledged               |                                       | 
|under
                repurchase agreements                                         |                                       | 
|Loans receivable,
                net of reserve of $1,266 and $0, respectively     |                                       | 
|Accounts
                receivable, net of reserve                                 |                                       | 
|of
                $0 and $1, respectively                                          |                                       | 
|Available for sale
                securities                                       |                                       | 
|Preferred equity
                investment                                         |                                       | 
|Equity
                investments                                                  |                                       | 
|Lease intangibles,
                net                                              |                                       | 
|Deferred financing
                costs, net                                       |                                       | 
|Assets of
                discontinued operations                                   |                                       | 
|Other
                assets                                                        |                                       | 
|                                                                                    |                                       | 
|TOTAL
                ASSETS                                                        |                                       | 
|                                                                                    |                                       | 
|LIABILITIES                                                                         |                                       | 
|                                                                                    |                                       | 
|Mortgage loans
                payable                                              |                                       | 
|Repurchase
                agreements                                               |                                       | 
|Series B-1
                Cumulative Convertible Redeemable Preferred Shares of    |                                       | 
|Beneficial
                Interest, $25 per share liquidating preference,          |                                       | 
|3,990,000
                shares authorized and outstanding at June 30, 2007        |                                       | 
|and
                December 31, 2006                                               |                                       | 
|Loans
                payable                                                       |                                       | 
|Accounts payable
                and accrued liabilities                            |                                       | 
|Dividends
                payable                                                   |                                       | 
|Below market lease
                intangibles, net                                 |                                       | 
|Liabilities of
                discontinued operations                              |                                       | 
|                                                                                    |                                       | 
|TOTAL
                LIABILITIES                                                   |                                       | 
|                                                                                    |                                       | 
|COMMITMENTS
                AND CONTINGENCIES                                       |                                       | 
|                                                                                    |                                       | 
|MINORITY
                INTEREST                                                   |                                       | 
|                                                                                    |                                       | 
|SHAREHOLDERS
                EQUITY                                                |                                       | 
|                                                                                    |                                       | 
|Common Shares of
                Beneficial Interest, $1 par, unlimited authorized, |                                       | 
|65,682,993
                and 65,369,734 outstanding at June 30, 2007 and          |                                       | 
|December
                31, 2006, respectively                                     |                                       | 
|Additional paid-in
                capital                                          |                                       | 
|Accumulated other
                comprehensive income                              |                                       | 
|Accumulated
                distributions in excess of net income                   |                                       | 
|                                                                                    |                                       | 
|Total
                Shareholders Equity                                          |                                       | 
|                                                                                    |                                       | 
|TOTAL
                LIABILITIES, MINORITY INTEREST AND                            |                                       | 
|SHAREHOLDERS
                EQUITY                                                |                                       | 
|                                                                                    |                                       | 

See Notes to
        Consolidated Financial Statements.

3



---

WINTHROP
        REALTY TRUST
        FORM 10-Q - JUNE 30, 2007

CONSOLIDATED
        STATEMENTS OF OPERATIONS AND
        COMPREHENSIVE INCOME
        (Unaudited)

(In thousands,
        except per share data)

|                                                                        |  |  | For the Three
                        Months Ended
                        June 30, |        | For the Six
                        Months Ended
                        June 30, |  
|----------------------------------------------------------------------- |  |  | ----------------------------------------------------------------------------------- | ------ | --------------------------------------------------------------------------------- | -
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|                                                                        |  |  | 2007                                                                                |        | 2006                                                                              |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Revenue                                                                 |  |  |                                                                                     |        |                                                                                   |  
|Rents and
                reimbursements                                |  |  | $                                                                                   | 11,285 |                                                                                   | $
|Interest and
                dividends                                  |  |  |                                                                                     | 3,559  |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|                                                                        |  |  |                                                                                     | 14,844 |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Expenses                                                                |  | 
|Property
                operating                                      |  |  |                                                                                     | 1,176  |                                                                                   |  
|Real estate
                taxes                                       |  |  |                                                                                     | 447    |                                                                                   |  
|Depreciation
                and amortization                           |  |  |                                                                                     | 3,257  |                                                                                   |  
|Interest                                                                |  |  |                                                                                     | 7,384  |                                                                                   |  
|Provision for
                loss on loan receivable                   |  |  |                                                                                     | 1,266  |                                                                                   |  
|General and
                administrative                              |  |  |                                                                                     | 2,024  |                                                                                   |  
|State and
                local taxes                                   |  |  |                                                                                     | 231    |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|                                                                        |  |  |                                                                                     | 15,785 |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Other
                income and expense                                |  | 
|Assignment of
                exclusivity agreement - net lease assets  |  |  |                                                                                     |       |                                                                                   |  
|Earnings from
                preferred equity investment               |  |  |                                                                                     | 1,247  |                                                                                   |  
|Equity in
                earnings of equity investments                |  |  |                                                                                     | 2,171  |                                                                                   |  
|Gain on sale
                of available for sale securities           |  |  |                                                                                     | 9,739  |                                                                                   |  
|Loss on early
                extinguishment of debt                    |  |  |                                                                                     | (320   | )                                                                                 |  
|Interest
                income                                         |  |  |                                                                                     | 763    |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|                                                                        |  |  |                                                                                     | 13,600 |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Income from
                continuing operations before                |  | 
|minority
                interest                                       |  |  |                                                                                     | 12,659 |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Minority
                interest                                       |  |  |                                                                                     | (71    | )                                                                                 |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Income from
                continuing operations                       |  |  |                                                                                     | 12,730 |                                                                                   |  
|                                                                        |  | 
|Discontinued
                operations                                 |  | 
|Income from
                discontinued operations                     |  |  |                                                                                     | 46     |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Net
                income                                              |  |  | $                                                                                   | 12,776 |                                                                                   | $
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Comprehensive
                income                                    |  | 
|Net
                income                                              |  |  | $                                                                                   | 12,776 |                                                                                   | $
|Change in
                unrealized gain (loss) on available for sale  |  | 
|securities
                arising during the period                    |  |  |                                                                                     | 2,540  |                                                                                   |  
|Change in
                unrealized loss on mortgage-backed securities |  | 
|available for
                sale arising during the period            |  |  |                                                                                     | 62     |                                                                                   |  
|Change in
                unrealized gain on interest rate derivatives  |  | 
|arising
                during the period                               |  |  |                                                                                     | 157    |                                                                                   |  
|Change in
                unrealized gain from equity investments       |  |  |                                                                                     | 1,070  |                                                                                   |  
|Less
                reclassification adjustment from gains             |  | 
|included in
                net income                                  |  |  |                                                                                     | (9,739 | )                                                                                 |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Comprehensive
                income                                    |  |  | $                                                                                   | 6,866  |                                                                                   | $
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Per Common
                Share data - Basic(1)                        |  | 
|Income from
                continuing operations                       |  |  | $                                                                                   | 0.16   |                                                                                   | $
|Income from
                discontinued operations                     |  |  |                                                                                     | 0.00   |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Net
                income                                              |  |  | $                                                                                   | 0.16   |                                                                                   | $
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Per Common
                Share data - Diluted                         |  | 
|Income from
                continuing operations                       |  |  | $                                                                                   | 0.16   |                                                                                   | $
|Income from
                discontinued operations                     |  |  |                                                                                     | 0.00   |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Net
                income                                              |  |  | $                                                                                   | 0.16   |                                                                                   | $
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Basic
                Weighted-Average Common Shares                    |  |  |                                                                                     | 65,661 |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  
|Diluted
                Weighted-Average Common Shares                  |  |  |                                                                                     | 87,894 |                                                                                   |  
|                                                                        |  |  |                                                                                     |        |                                                                                   |  

_______________________(1) As restated for the six months ended June 30, 2006. See Note 17.

See Notes to
        Consolidated Financial Statements.

4



---

WINTHROP
        REALTY TRUST
        FORM 10-Q - JUNE 30, 2007

CONSOLIDATED
        STATEMENT OF SHAREHOLDERS EQUITY
        (Unaudited)

(In
        thousands)

|                                                                |  |  | Common
                        Shares of Beneficial Interest |        | Additional
                        Paid-In
                        Capital |   | Accumulated
                    Other
                    Comprehensive
                    Income |  | Accumulated
                    Distributions
                    in Excess of
                    Net Income |         | Total |  
|--------------------------------------------------------------- |  |  | ------------------------------------------------------------ | ------ | -------------------------------------------------------------------------- | - | -------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------- | ------- | ----- | -
|                                                                |  |  | Shares                                                       |        | Amount                                                                     |   |                                                                                                    |  |                                                                                                              
|                                                                |  |  |                                                              |        |                                                                            |   |                                                                                                    |  |                                                                                                               |         |       |  
|
|                                                                |  |  |                                                              |        |                                                                            |   |                                                                                                    |  |                                                                                                               |         |       |  
|Balance, December 31,
                2006                      |  |  |                                                              | 65,370 |                                                                            | $ | 65,370                                                                                             |  | $                                                                                                             | 353,719 |       | $
|                                                                |  |  |                                                              |        |                                                                            |   |                                                                                                    |  |                                                                                                               |         |       |  
|Net
                income                                      |  |  |                                                              |       |                                                                            |   |                                                                                                   |  |                                                                                                               |        |       |  
|Dividends
                paid or accrued on Common Shares of   |  | 
|Beneficial
                Interest ($0.12 per share)           |  |  |                                                              |       |                                                                            |   |                                                                                                   |  |                                                                                                               |        |       |  
|Change
                in unrealized gain on available for sale |  | 
|securities,
                net of reclassification adjustment  |  | 
|for
                amounts included in net income              |  |  |                                                              |       |                                                                            |   |                                                                                                   |  |                                                                                                               |        |       |  
|Change
                in unrealized loss on mortgage-backed    |  | 
|securities
                held for sale                        |  |  |                                                              |       |                                                                            |   |                                                                                                   |  |                                                                                                               |        |       |  
|Change
                in unrealized gain on interest rate      |  | 
|derivatives                                                     |  |  |                                                              |       |                                                                            |   |                                                                                                   |  |                                                                                                               |        |       |  
|Change
                in unrealized gain from                  |  | 
|equity
                investments                              |  |  |                                                              |       |                                                                            |   |                                                                                                   |  |                                                                                                               |        |       |  
|Stock
                issued pursuant to dividend reinvestment  |  | 
|plan                                                            |  |  |                                                              | 313    |                                                                            |   | 313                                                                                                |  |                                                                                                               | 1,772   |       |  
|Cumulative
                effect of a change in accounting     |  | 
|principle                                                       |  |  |                                                              |       |                                                                            |   |                                                                                                   |  |                                                                                                               |        |       |  
|                                                                |  |  |                                                              |        |                                                                            |   |                                                                                                    |  |                                                                                                               |         |       |  
|Balance, June
                30, 2007                          |  |  |                                                              | 65,683 |                                                                            | $ | 65,683                                                                                             |  | $                                                                                                             | 355,491 |       | $
|                                                                |  |  |                                                              |        |                                                                            |   |                                                                                                    |  |                                                                                                               |         |       |  

See Notes to
        Consolidated Financial Statements.

5



---

WINTHROP
        REALTY TRUST
        FORM 10-Q - JUNE 30, 2007

CONSOLIDATED
        STATEMENTS OF CASH FLOWS
        (Unaudited)(In thousands)

|                                                                                          |  |  | For the Six
                        Months Ended
                        June 30, |        
|----------------------------------------------------------------------------------------- |  |  | --------------------------------------------------------------------------------- | -------
|                                                                                          |  |  |                                                                                   |        
|                                                                                          |  |  | 2007                                                                              |        
|                                                                                          |  |  |                                                                                   |        
|Cash flows from operating
                activities                                      |  |  |                                                                                   |        
|Net
                income                                                                |  |  | $                                                                                 | 21,477 
|Adjustments
                to reconcile net income to net cash provided by               |  | 
|operating
                activities                                                      |  | 
|Depreciation
                and amortization (including amortization of deferred         |  | 
|financing
                costs)                                                          |  |  |                                                                                   | 3,997  
|Amortization
                of lease intangibles                                         |  |  |                                                                                   | 2,802  
|Straight-lining
                of rental income                                          |  |  |                                                                                   | 317    
|Earnings
                of preferred equity investment less than                         |  | 
|(in
                excess of) distributions                                              |  |  |                                                                                   | 75     
|Earnings
                in excess of distributions of equity investments                 |  |  |                                                                                   | (3,763 
|Restricted
                cash held in escrows                                           |  |  |                                                                                   | (851   
|Minority
                interest                                                         |  |  |                                                                                   | 542    
|Gain
                on sale of available for sale securities                             |  |  |                                                                                   | (9,982 
|Loss
                from early extinguishment of debt                                    |  |  |                                                                                   | 320    
|Provision
                for loss on loan receivable                                     |  |  |                                                                                   | 1,266  
|Decrease
                in deferred income                                               |  |  |                                                                                   |       
|Bad
                debt recovery                                                         |  |  |                                                                                   | (1     
|Interest
                receivable on loans                                              |  |  |                                                                                   | 302    
|Net
                changes in other operating assets and liabilities                     |  |  |                                                                                   | 1,431  
|                                                                                          |  |  |                                                                                   |        
|Net
                cash provided by operating activities                                 |  |  |                                                                                   | 17,932 
|                                                                                          |  |  |                                                                                   |        
|Cash flows
                from investing activities                                      |  | 
|Investments
                in real estate                                                |  |  |                                                                                   | (8,318 
|Proceeds
                from repayments of mortgage-backed securities available for sale |  |  |                                                                                   | 20,277 
|Investment
                in equity investments                                          |  |  |                                                                                   | (9,568 
|Investment
                in preferred equity investment                                 |  |  |                                                                                   | (17,669
|Return
                of equity on equity investments                                    |  |  |                                                                                   | 10,000 
|Investment
                in limited liability company                                   |  |  |                                                                                   | (43,658
|Proceeds
                from preferred equity investment                                 |  |  |                                                                                   | 10,155 
|Purchase
                of available for sale securities                                 |  |  |                                                                                   | (3,171 
|Proceeds
                from sale of available for sale securities                       |  |  |                                                                                   | 21,169 
|Increase
                in restricted cash held in escrows                               |  |  |                                                                                   | (1,248 
|Issuance
                and acquisition of loans receivable                              |  |  |                                                                                   | (2,986 
|Collection
                of loans receivable                                            |  |  |                                                                                   | 64,242 
|                                                                                          |  |  |                                                                                   |        
|Net
                cash provided by (used in) investing activities                       |  |  |                                                                                   | 39,225 
|                                                                                          |  |  |                                                                                   |        

(Continued on
        next page)

See Notes to
        Consolidated Financial Statements.

6



---

WINTHROP
        REALTY TRUST
        FORM 10-Q - JUNE 30, 2007

CONSOLIDATED
        STATEMENTS OF CASH FLOWS
        (Unaudited)(In thousands)
        (Continued from previous page)

|                                                                                       |  |  | For the Six
                        Months Ended
                        June 30, |        
|-------------------------------------------------------------------------------------- |  |  | --------------------------------------------------------------------------------- | -------
|                                                                                       |  |  |                                                                                   |        
|                                                                                       |  |  | 2007                                                                              |        
|                                                                                       |  |  |                                                                                   |        
|Cash flows from financing
                activities                                   |  |  |                                                                                   |        
|Repayment
                of borrowings under repurchase agreements                    |  |  | $                                                                                 | (19,869
|Proceeds
                from mortgage loans payable                                   |  |  |                                                                                   | 51,646 
|Restricted
                cash held in escrows                                        |  |  |                                                                                   | (175   
|Principal
                payments of mortgage loans payable                           |  |  |                                                                                   | (45,182
|Payments
                of loans payable                                              |  |  |                                                                                   | (30,004
|Proceeds
                from revolving line of credit                                 |  |  |                                                                                   |       
|Payment
                of revolving line of credit                                    |  |  |                                                                                   |       
|Deferred
                financing costs                                               |  |  |                                                                                   | (887   
|Contribution
                by minority interests                                     |  |  |                                                                                   | 879    
|Distribution
                to minority interests                                     |  |  |                                                                                   | (21,321
|Issuance
                of Common Shares                                              |  |  |                                                                                   |       
|Dividends
                paid on Series A Preferred Shares                            |  |  |                                                                                   |       
|Dividends
                paid on Common Shares                                        |  |  |                                                                                   | (11,777
|Dividends
                paid on Common Shares                                        |  |  |                                                                                   |       
|Reinvestment
                of dividend proceeds                                      |  |  |                                                                                   | 2,085  
|                                                                                       |  |  |                                                                                   |        
|Net
                cash (used in) provided by financing activities                    |  |  |                                                                                   | (74,605
|                                                                                       |  |  |                                                                                   |        
|Net
                (decrease) increase in cash and cash equivalents                   |  |  |                                                                                   | (17,448
|Cash
                and cash equivalents at beginning of period                       |  |  |                                                                                   | 89,463 
|                                                                                       |  |  |                                                                                   |        
|Cash
                and cash equivalents at end of period                             |  |  | $                                                                                 | 72,015 
|                                                                                       |  |  |                                                                                   |        
|Supplemental Disclosure of Cash Flow Information                                       |  | 
|                                                                                       |  |  |                                                                                   |        
|Interest
                paid                                                          |  |  | $                                                                                 | 14,867 
|                                                                                       |  |  |                                                                                   |        
|Taxes
                paid                                                             |  |  | $                                                                                 | 280    
|                                                                                       |  |  |                                                                                   |        
|Supplemental Disclosure of Non-Cash Investing and Financing
                Activities |  | 
|                                                                                       |  |  |                                                                                   |        
|Dividends
                accrued on Common Shares                                     |  |  | $                                                                                 | 3,941  
|                                                                                       |  |  |                                                                                   |        
|Capital
                expenditures accrued                                           |  |  | $                                                                                 | 236    
|                                                                                       |  |  |                                                                                   |        

See Notes to
        Consolidated Financial Statements.

7



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|1. | Organization
|-- | ------------

| | Winthrop Realty Trust
                    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 December 15, 2005 (the Declaration of Trust). The
                    Trusts principal business activity is the direct and indirect ownership
                    and management of, and lending to, real estate and related investments. The
                    Trust is a real estate investment trust (REIT) under sections 856
                    through 860 of the Internal Revenue Code of 1986, as amended. The Trust
                    conducts its business through WRT Realty L.P., a Delaware limited partnership
                    (the Operating Partnership). The Trust is the sole general
                    partner of, and owns directly and indirectly, 100% of the limited partnership
                    interests in the Operating Partnership. All references to the
                    Trust refer to Winthrop Realty Trust and its consolidated
                    subsidiaries, including the Operating Partnership.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2. | Summary of Significant
                Accounting Policies
|-- | ----------------------------------------------------------

| | Basis of
                    Presentation
| | -----------------------------------------

| | 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. 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 presented not misleading. The
                    accompanying unaudited consolidated interim financial statements should be read
                    in conjunction with the audited consolidated annual financial statements, the
                    notes thereto and the related Managements Discussion and Analysis of
                    Financial Condition and Results of Operations included in the Trusts
                    Annual Report on Form 10-K for the year ended December 31, 2006 filed with the
                    Securities and Exchange Commission (the SEC). In the opinion of
                    management, all adjustments (which include normal recurring adjustments)
                    considered necessary for a fair presentation have been included. The results of
                    operations for the six months ended June 30, 2007 are not necessarily
                    indicative of the operating results for the full year.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    accompanying unaudited consolidated financial statements represent the
                    consolidated results of Winthrop Realty Trust, its wholly-owned taxable REIT
                    subsidiary WRT TRS Management Corp., the Operating Partnership, wholly-owned
                    subsidiaries and certain partially-owned entities in which the Operating
                    Partnership owns either (i) a controlling interest or (ii) is the primary
                    beneficiary. All significant intercompany amounts have been eliminated. The
                    Trust accounts for its investments in companies in which it has the ability to
                    significantly influence, but does not have a controlling interest, by using the
                    equity method of accounting.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Cash and Cash
                    Equivalents
| | ---------------------------------------------

| | Cash
                    and cash equivalents include all highly liquid investments purchased with
                    maturities of three months or less. Previously the Trust reported interest
                    income earned on cash and cash equivalents as revenue. This presentation has
                    been changed in this filing to include interest earned on cash and cash
                    equivalents as other income.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Reclassifications
| | -----------------

| | In
                    Accordance with Statement of Financial Accounting Standards
                    (SFAS) No. 144, due to the reporting of discontinued operations
                    for assets classified as held for sale, certain prior year balances have been
                    reclassified in order to conform to the current year presentation.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 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 and disclosure of contingent assets and liabilities at the date of
                    the consolidated interim financial statements and the amounts of revenue and
                    expenses during the reporting period. The estimates that are particulary
                    susceptible to change relate to managements estimate of the impairment
                    of real estate, loans and investments in joint ventures and whether there have
                    been other-than-temporary impairments to the value of the Trusts real
                    estate securities for sale and mortgage-backed securities available for sale.
                    In addition, estimates are used when accounting for the allowance for doubtful
                    accounts. All of the estimates and evaluations are susceptible to change and
                    actual results could differ from the estimates and
                    evaluations.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|2. | Summary of
                Significant Accounting Policies (Continued)
|-- | ----------------------------------------------------------------------

| | Loan Loss
                    Provision
| | ---------------------------------------

| | The
                    Trust evaluates its loans for possible impairment on a quarterly basis. In
                    accordance with SFAS No. 114, Accounting by Creditors for Impairment of
                    a Loan, impairment occurs when it is deemed probable the Trust will not
                    be able to collect all amounts due according to the contractual terms of the
                    loan. Impairment is then measured based on the present value of expected future
                    cash flows or the fair value of the collateral, if the loan is collateral
                    dependent. When a loan is considered to be impaired, the Trust will establish a
                    reserve for loan losses and a corresponding charge to earnings through the
                    provision for loan losses. Significant judgments are required in determining
                    impairment, which includes making assumptions regarding the value of the loan,
                    the value of the real estate or partnership interests that secure the loan and
                    any other applicable provisions. The Trust does not record interest income on
                    impaird loans. Any cash receipts on impaired loans are recorded as a recovery.
                    As of June 30, 2007, the Trust recorded a $1,266,000 provision for loan
                    loss related to one of its loans.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Earnings Per
                    Share
| | --------------------------------------

| | The
                    Trust has calculated earnings per share in accordance with SFAS No.128,
                    Earnings Per Share. SFAS No.128 requires that common share equivalents be
                    excluded from the weighted-average shares outstanding for the calculation of
                    basic earnings per share. The reconciliation of shares outstanding for the
                    basic and diluted earnings per share calculation is as follows (in thousands,
                    except per share data):
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                        |  |  |                                                    |       
|------------------------------------------------------- |  |  | -------------------------------------------------- | ------
|                                                        |  |  | Three Months
                        EndedJune 30, |       
|                                                        |  |  | 2007                                               |       
|Basic                                                   |  |  |                                                    |       
|Income from
                continuing operations       |  |  | $                                                  | 12,730
|Income from
                discontinued operations     |  |  |                                                    | 46    
|Allocation of
                undistributed earnings to |  | 
|Series B-1
                Preferred Shares             |  |  |                                                    | (2,012
|                                                        |  |  |                                                    |       
|Net income
                applicable to Common Shares  |  |  | $                                                  | 10,764
|                                                        |  |  |                                                    |       
|Basic
                weighted-average Common Shares    |  |  |                                                    | 65,661
|                                                        |  |  |                                                    |       
|                                                        |  |  |                                                    |       
|Income from
                continuing operations       |  |  | $                                                  | 0.16  
|Income from
                discontinued operations     |  |  |                                                    | 0.00  
|                                                        |  |  |                                                    |       
|Net income per
                Common Share - Basic     |  |  | $                                                  | 0.16  
|                                                        |  |  |                                                    |       

9



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|2. | Summary of Significant
                Accounting Policies (Continued)
|-- | ----------------------------------------------------------------------

| | Earnings Per Share
                    (Continued)
| | --------------------------------------------------

|                                                        |  |  | Three Months
                        EndedJune 30, |        | Six Months
                        EndedJune 30, |  
|------------------------------------------------------- |  |  | -------------------------------------------------- | ------ | ------------------------------------------------ | -
|                                                        |  |  | 2007                                               |        | 2006                                             |  
|Diluted                                                 |  |  |                                                    |        |                                                  |  
|Income from
                continuing operations       |  |  | $                                                  | 12,730 |                                                  | $
|Allocation of
                undistributed earnings to |  | 
|Series B-1
                Preferred Shares             |  |  |                                                    | (2,012 | )                                                |  
|Interest
                expense - Series B-1 Preferred |  | 
|Shares                                                  |  |  |                                                    |       |                                                  |  
|                                                        |  |  |                                                    |        |                                                  |  
|Income from
                continuing operations       |  |  |                                                    | 10,718 |                                                  |  
|Income from
                discontinued operations     |  |  |                                                    | 46     |                                                  |  
|                                                        |  |  |                                                    |        |                                                  |  
|Net income
                applicable to Common Shares  |  |  | $                                                  | 10,764 |                                                  | $
|                                                        |  |  |                                                    |        |                                                  |  
|Basic
                weighted-average Common Shares    |  |  |                                                    | 65,661 |                                                  |  
|Convertible
                Preferred Shares (1)        |  |  |                                                    |       |                                                  |  
|Stock
                options                           |  |  |                                                    | 66     |                                                  |  
|                                                        |  |  |                                                    |        |                                                  |  
|Diluted
                weighted-average Common Shares  |  |  |                                                    | 65,727 |                                                  |  
|                                                        |  |  |                                                    |        |                                                  |  
|Income from
                continuing operations       |  |  | $                                                  | 0.16   |                                                  | $
|Income from
                discontinued operations     |  |  |                                                    | 0.00   |                                                  |  
|                                                        |  |  |                                                    |        |                                                  |  
|Net income per
                Common Share - Diluted   |  |  | $                                                  | 0.16   |                                                  | $
|                                                        |  |  |                                                    |        |                                                  |  

| | (1) | The
                Trusts Series A Cumulative Convertible Redeemable Preferred Shares of
                Beneficial Interest (Series A Shares), which were redeemed for the
                Trusts Common Shares of Beneficial Interest (Common Shares) on
                February 7, 2006, were dilutive for the six months ended June 30, 2006 and the
                Series B-1 Cumulative Convertible Redeemable Preferred Shares of Beneficial
                Interest (Series B-1 Shares) were dilutive for the six months ended
                June 30, 2006. The Series B-1 Shares were anti-dilutive for the other periods
                presented.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    holders of the Series B-1 Shares are entitled to receive cumulative
                    preferential dividends equal to the greater of (i) 6.5% of the liquidation
                    preference or (ii) cash dividends paid on the Common Shares.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    Trust had previously reported net income per Common Share - basic of $0.33 for
                    the six months ended June 30, 2006. This computation has been corrected in this
                    filing to apply the provisions of EITF 03-06, Participating Securities
                    and the Two Class Method under FASB Statement No. 128 Earnings Per
                    Share. Application of these provisions had no impact on reported net
                    income per Common Share - basic for the three months ended June 30, 2006.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Variable Interest
                    Entities
| | ----------------------------------------------

| | Financial Accounting
                    Standards Board (FASB) Interpretation No. 46 (Revised) -
                    Consolidation of Variable Interest Entities (FIN 46R)
                    requires a variable interest entity (VIE) to be consolidated by
                    its primary beneficiary. The primary beneficiary is the party that incurs a
                    majority of the VIEs anticipated losses and/or a majority of the
                    expected returns. As of June 30, 2007, the Trust has identified each of (i) the
                    loan acquired by WRT Marc RC LLC (the River City Loan) (see Note
                    5), (ii) its interest in WRT-Vision Holding LLC (WRT-Vision
                    Holding), (iii) its joint venture with Sealy & Company, Inc.
                    (Sealy) in Nashville, Tennessee and (iv) 4 convertible mezzanine
                    loans related to its preferred equity investment to be variable interests in a
                    VIE.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    Trust has determined that it is not the primary beneficiary of the underlying
                    borrowing entity of the River City Loan and the 4 mezzanine loans and therefore
                    accounts for these investments as a loan receivable and preferred equity
                    investments, respectively.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|2. | Summary of Significant
                Accounting Policies (Continued)
|-- | ----------------------------------------------------------------------

| | Variable Interest
                    Entities (Continued)
| | ----------------------------------------------------------

| | The
                    Trust has determined that it is the primary beneficiary of WRT-Vision Holding
                    and, therefore, consolidates this investment.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    Trust has determined that it is not the primary beneficiary in the Sealy Joint
                    Venture and, therefore, utilized equity accounting for this investment.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Recently Issued
                    Accounting Standards
| | --------------------------------------------------------

| | In
                    June 2006, the FASB issued Interpretation No. 48, Accounting for Uncertainty
                    in Income Taxes--an interpretation of FASB Statement No. 109. This
                    Interpretation clarifies the accounting for uncertainty in income taxes
                    recognized in an enterprises financial statements in accordance with
                    FASB Statement No. 109, Accounting for Income Taxes. This Interpretation
                    prescribes a recognition threshold and measurement attribute for the financial
                    statement recognition and measurement of a tax position taken or expected to be
                    taken in a tax return. It also provides guidance on derecognition,
                    classification, interest and penalties, accounting in interim periods,
                    disclosure and transition. This Interpretation, effective for fiscal years
                    beginning after December 15, 2006, was adopted by the Trust January 1, 2007,
                    and it resulted in a $1,916,000 increase to shareholders equity which
                    has been classified as a cumulative effect of a change in accounting principle.
                    Such adjustment resulted from managements assessment that a liability
                    previously established for an uncertain tax position pursuant to FAS 5
                    Accounting for Contingencies was no longer required. In
                    accordance with the provision of FIN 48, the Trust deemed it more likely than
                    not that the relevant tax position would be sustained. As of June 30, 2007, the
                    Trust has not established any liability for uncertain tax positions.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
                    September 2006, the FASB issued SFAS No.157, Fair Value Measurements.
                    This Statement applies under other accounting pronouncements that require or
                    permit fair value measurements and is effective for financial statements issued
                    for fiscal years beginning after November 15, 2007, and interim periods within
                    those fiscal years. This Statement does not require any new fair value
                    measurements, but for some entities, the application of this Statement will
                    change current practice. For example, market participant assumptions are to
                    include assumptions about the risk inherent in a particular valuation technique
                    used to measure fair value (such as a pricing model) and/or risk inherent in
                    the inputs to the valuation technique. Market participant assumptions are also
                    to include assumptions about the effect of a restriction on the sale or use of
                    an asset, and a fair value measurement for a liability is to reflect its
                    nonperformance risk. The Trust is currently evaluating what impact the adoption
                    of SFAS No.157 will have on the Trusts consolidated financial
                    statements.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
                    February 2007, the FASB issued SFAS No.159, The Fair Value Option Financial
                    Assets and Financial Liabilities. This Statement provides a Fair
                    Value Option under which a company may irrevocably elect fair value as
                    the initial and subsequent measurement attribute for certain financial assets
                    and liabilities. This Fair Value Option will be available on a contract by
                    contract basis with changes in fair value recognized in earnings as those
                    changes occur. The effective date of this Statement is the beginning of the
                    first fiscal year end that begins after November 15, 2007. The Trust is
                    currently evaluating what impact the adoption of SFAS No.159 will have on its
                    consolidated financial statements.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
                    June 19, 2007 the Accounting Standards Executive Committee
                    (AcSEC) issued Statement of Position 07-1, Clarification
                    of the Scope of the Audit and Accounting Guide Investment Companies and
                    Accounting by Parent Companies and Equity Method Investors for Investments in
                    Investment Companies (SOP 07-1). SOP 07-1 provides
                    guidance for determining whether an entity is within the scope of the AICPA
                    Audit and Accounting Guide Investment Companies (the Guide). For those
                    entities that are investment companies under SOP 07-1, it also addresses
                    whether the specialized industry accounting principles of the Guide (referred
                    to as investment company accounting) should be retained by a parent company in
                    consolidation or by an investor that has the ability to exercise significant
                    influence over the investment company and applies the equity method of
                    accounting to its investment in the entity (referred to as an equity method
                    investor). In addition, this SOP includes certain disclosure requirements
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

11



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|2. | Summary of Significant
                Accounting Policies (Continued)
|-- | ----------------------------------------------------------------------

| | Recently Issued
                    Accounting Standards (Continued)
| | --------------------------------------------------------------------

| | for
                    parent companies and equity method investors in investment companies that
                    retain Investment Company accounting in the parent companys consolidated
                    financial statements or the financial statements of an equity method investor.
                    The SOP is effective for fiscal years beginning on or after December 15, 2007.
                    The Trust is currently evaluating what impact the adoption of this new standard
                    will have on the consolidated financial statements.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. | Acquisitions, Loan
                Originations, Dispositions and Financings
|-- | ----------------------------------------------------------------------------

| | Acquisitions, Loan
                    Originations
| | ---------------------------------------------------

| | On
                    April 17, 2007, the Trust acquired, through a joint venture with Sealy, 13
                    light distribution and service center properties in Nashville, Tennessee. The
                    purchase price for the properties was $87,200,000 which was financed through
                    $65,383,000 of proceeds net of escrows and closing costs from a $74,000,000
                    first mortgage loan and a $3,600,000 bridge loan from Sealy. Each of the Trust
                    and Sealy contributed $9,307,000 for a 50% ownership in the joint venture. The
                    Trust accounts for this investment using the equity method of accounting.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
                    May 25, 2007, Lex-Win Acquisition LLC (Lex-Win), an entity in
                    which the Trust holds a 28% ownership interest, commenced a tender offer to
                    acquire up to 45,000,000 shares of common stock in Wells Real Estate Investment
                    Trust, Inc. (Wells) at a price per share of $9.30. The tender
                    offer expired on July 20, 2007 at which time Lex-Win had received tenders for
                    approximately 4,800,000 shares representing approximately 1% of the outstanding
                    shares in Wells. The Trust accounts for this investment using the equity method
                    of accounting.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
                    June 20, 2007, the Trust made a $17,669,000 first mortgage bridge loan
                    collateralized by a newly acquired property in the Marc Realty portfolio
                    located at 180 North Michigan Avenue, Chicago, Illinois. The loan bears
                    interest at 7.32% per annum, requires monthly payments of interest only and
                    matures on June 20, 2008. The Trust accounts for this investment as a preferred
                    equity investment.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Loan
                    Satisfaction/Dispositions
| | --------------------------------------------------

| | On
                    May 16, 2007, the Toy Building loan which was held in a venture in which the
                    Trust held a one-third interest was satisfied. After satisfying the
                    ventures loan obligation which was collateralized by the ventures
                    interest in the Toy Building and which bore interest at a variable rate, the
                    Trust received a return of its initial invested capital of $9,959,000 together
                    with $562,000 on account of its priority interest.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
                    June 26, 2007, the Trust sold in market transactions 793,956 common shares of
                    America First Apartment Investors, Inc. (APRO), constituting
                    substantially all shares held by the Trust in APRO, for a per share price of
                    $25.02 resulting in net proceeds of approximately $19,817,000. The sale
                    generated a gain of approximately $9,739,000 exclusive of dividends on such
                    shares.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Financings
| | ----------

| | On
                    May 24, 2007, WRT-Vision Creekwood, LLC, a venture in which the Trust holds a
                    90% interest, obtained a $5,846,000 loan from an unaffiliated third party
                    lender. The lender has also committed to increase the loan to $7,000,000 to
                    fund future capital improvements. The loan is collateralized by WRT-Vision
                    Creekwoods property located in Kansas City, Kansas and bears interest at
                    7.042%. The loan requires monthly payments of interest only and is scheduled to
                    mature on June 1, 2012.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
                    June 18, 2007, four properties which are part of the Marc Realty portfolio
                    obtained first mortgage loans aggregating $56,798,000 with a weighted average
                    interest rate of 6.34%. Approximately $4,800,000 of the loan proceeds was used
                    to satisfy a portion of the Trusts 7.65% convertible mezzanine loans
                    reducing the mezzanine
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

12



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|3. | Acquisitions, Loan
                Originations, Dispositions and Financings (Continued)
|-- | ----------------------------------------------------------------------------------------

| | Financings
                    (Continued)
| | ------------------------------------------

| | loans
                    held by the Trust with respect to these properties to $5,300,000. The Trust
                    holds a 50% participating interest in each of these properties.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | On
                    June 26, 2007, a property included in the Trusts net lease properties
                    commonly referred to as the Finova portfolio obtained a $40,200,000 loan from
                    an unaffiliated third party lender. The loan is collateralized by the
                    Trusts property located in Orlando, Florida and bears interest at 6.4%.
                    The loan requires monthly payments of principal and interest and is scheduled
                    to mature on July 1, 2017, at which time the outstanding principal balance is
                    expected to be approximately $34,064,000. Approximately $40,000,000 of the loan
                    proceeds were used to reduce the Finova portfolios outstanding mortgage
                    loan balance which carried a higher interest rate and the financing reduced the
                    Trusts exposure to floating interest rates.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. | Mortgage-Backed
                Securities Pledged Under Repurchase Agreements
|-- | ------------------------------------------------------------------------------

| | At
                    June 30, 2007 and December 31, 2006, all of the Trusts mortgage-backed
                    securities, consisting of Federal National Mortgage Association (Fannie
                    Mae) and Federal Home Loan Mortgage Corporation (Freddie
                    Mac) whole pool certificates, were classified as available-for-sale and,
                    as such, were carried at their estimated fair value based on prices obtained
                    from a third party.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    following table presents the amortized cost and fair value of the Trusts
                    mortgage-backed securities at June 30, 2007 and December 31, 2006 (in
                    thousands):
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                    | 
|--------------------------------------------------- | 
|                                                    | 
|
|Cost                                                | 
|Unrealized
                loss                     | 
|Interest
                payment receivable         | 
|Unamortized
                premium                 | 
|                                                    | 
|Carrying
                value/estimated fair value | 
|                                                    | 

| | The
                    unrealized losses are a result of changes in interest rates of the securities.
                    All the securities are performing according to their terms. Although not rated,
                    whole pool agency mortgage-backed securities carry an implied AAA rating and
                    are guaranteed as to principal and interest by Fannie Mae or Freddie Mac.
                    Furthermore, the Trust intends to hold these securities until maturity.
                    Although interest rates are difficult to predict, the Trust believes that it
                    will recover its cost in such securities on or before maturity. Accordingly,
                    although the period of continuous unrealized loss position is more than twelve
                    months, the Trust has determined that these impairments are temporary.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    mortgage-backed securities bear interest at a weighted average interest rate of
                    4.911% based on balances outstanding at June 30, 2007. The mortgage-backed
                    securities have a weighted average life of 30.46 years. See Note 9 - Repurchase
                    Agreements for information pertaining to the borrowings collateralized by these
                    investments.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. | Loans
                Receivable
|-- | --------------------------------

| | On
                    March 29, 2006, the Trust, through two ventures in which the Trust holds a 60%
                    interest and Marc Realty owns the remaining 40% interest, acquired (i) a loan
                    with a principal balance of $11,750,000 which is collateralized by a first
                    leasehold mortgage on approximately 241,000 square feet of commercial space and
                    an indoor parking garage with 133 spaces located at 800 South Wells, Chicago,
                    Illinois and commonly referred to as River City (the Commercial
                    Loan), and (ii) a loan with a principal balance of $5,915,000 which is
                    collateralized by a first priority mortgage on both the land underlying the
                    River City property and the unsold residential condominium units at the
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|5. | Loans
                Receivable (Continued)
|-- | --------------------------------------------

| | River
                    City property (the Land Loan). The Commercial Loan was in default
                    at the time of acquisition and WRT-Marc RC, the entity that acquired the
                    Commercial Loan, commenced foreclosure proceedings on the Commercial Loan. The
                    holder of the junior loan on the property securing the Commercial Loan filed in
                    the name of the debtor for protection under Chapter 11 of the United States
                    Bankruptcy Act. The bankruptcy proceeding has been dismissed, and on July 24,
                    2007 the venture foreclosed on the Commercial Loan and pending the confirmation
                    hearing to be held in August 2007 will likely acquire title to the property.
                    The Trust consolidates both the Commercial Loan and Land Loan ventures in its
                    financial statements.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    following table summarizes the Trusts loans receivable at June 30, 2007
                    and December 31, 2006 (in thousands):
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------

|                                            |  |  |                                       |   |        |  |                                   |            |               |  | Carrying Amount
                    (1) |  
|------------------------------------------- |  |  | ------------------------------------- | - | ------ |  | --------------------------------- | ---------- | ------------- |  | --------------------------------------- | -
|Property/Collateral                         |  |  | Location                              |   |        |  | Interest
                    Rate | Maturity   |               |  | June 30,
                    2007       |  
|                                            |  |  |                                       |   |        |  |                                   |            |               |  |                                         |  
|Toy Building (2)                            |  |  | New York, NY                          |   |        |  | LIBOR plus 5.6%                   | April 2008 |               |  | $                                       | 
|River City -
                Commercial (3) |  |  | Chicago,
                IL           |   |        |  | 9.75                              | %          | February 2006 |  |                                         |  
|River City -
                Land (3)       |  |  | Chicago,
                IL           |   |        |  | 10                                | %          | December 2007 |  |                                         |  
|Various (4)
                (5)             |  |  | Chicago,
                IL           |   |        |  | 8.5                               | %          | (5)           |  |                                         |  
|Vision
                Property Services    |  |  | Partnership
                Interests |   |        |  | 15                                | %          | December 2011 |  |                                         |  
|Vision Line of
                Credit       |  |  | Partnership
                Interests |   |        |  | 12                                | %          | December 2011 |  |                                         |  
|                                            |  |  |                                       |   |        |  |                                  
|                                            |  |  |                                       | $ | 18,552 |  | $                                 | 81,415     |              
|                                            |  |  |                                       |   |        |  |                                  

| | (1) | The
                carrying amount includes accrued interest of $477,000 and $834,000 at June 30, 2007
                and December 31, 2006, respectively.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | This loan
                was satisfied May 16, 2007.
| | --- | -----------------------------------------------------

| | (3) | Collateralized by a first
                mortgage. The River City-Land loan was satisfied in July 2007 and the River City
                -Commercial loan was foreclosed upon in July 2007.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | Tenant
                improvement and capital expenditure loans with respect to certain of the properties
                in the Marc Realty portfolio which mature from July 2012 to November
                2013.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (5) | Collateralized by a
                subordinate mortgage or the ownership interests in the property
                owner.
| | --- | --------------------------------------------------------------------------------------------------------------------------

| | All
                    the loans, except River City - Commercial which was in default at the time of
                    acquisition and Vision Property Services, are performing according to their
                    terms. The Trust believes that the full amount of the non-performing River City
                    - Commercial loan is recoverable and accordingly, no impairment has been
                    recorded.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Due
                    to the high level of uncertainty as to the collectibility of the Vision
                    Property Services Loan, the Trust has recorded a provision for loan loss of $1,266,000
                    representing the total loan receivable balance including accrued interest of
                    $16,000 at June 30, 2007 (see Note 18).
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

14





---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|5. | Loans
                Receivable (Continued)
|-- | --------------------------------------------

| | Activity related to
                    mortgage loans receivable is as follows (in thousands):
| | -----------------------------------------------------------------------------------------------

|                                                 |  |  |   | 2007    |  
|------------------------------------------------ |  |  | - | ------- | -
|Balance at January
                1             |  |  | $ | 81,415  |  
|Purchases and advances
                made      |  |  |   | 2,986   |  
|Interest (received) accrued,
                net |  |  |   | (341    | )
|Repayments                                       |  |  |   | (64,242 | )
|Reserve                                          |  |  |   | (1,266  | )
|                                                 |  | 
|Balance at June
                30               |  |  | $ | 18,552  |  
|                                                 |  | 

|6. | Available for Sale
                Securities
|-- | ---------------------------------------------

| | The
                    following is a summary of Available for Sale Securities at June 30, 2007 (in
                    thousands):
| | ------------------------------------------------------------------------------------------------------------------------------------

|Name                                                    |  |  | Date
                    Acquired |  | Cost at June 30,
                    2007 |        | Unrealized Gain
                    (Loss) at June 30, 2007 |   | Balance at June
                    30, 2007 |       
|------------------------------------------------------- |  |  | --------------------------------- |  | ----------------------------------------- | ------ | ----------------------------------------------------------- | - | -------------------------------------------- | ------
|                                                        |  |  |                                   |  |                                           |        |                                                             |   |                                             
|America First
                Apartment Investors, Inc. |  |  | Various                           |  | $                                         | 14     |                                                             | $ | 11                                           |       
|Lexington Realty
                Trust                  |  |  | 12/31/06                          |  |                                           | 78,024 |                                                             |   | (5,224                                       | )     
|Other real estate
                securities            |  |  | 12/6/06                           |  |                                           | 4,292  |                                                             |   | (275                                         | )     
|                                                        |  |  |                                   |  |                                           |        |                                                            
|                                                        |  |  |                                   |  |                                           | $      | 82,330                                                      |   | $                                            | (5,488
|                                                        |  |  |                                   |  |                                           |        |                                                            

| | The
                    unrealized loss on the Lexington Realty Trust securities is the result of a
                    decrease in the trading price of the stock since the acquisition of the
                    securities. The Trusts present intention is to hold these securities and
                    believes that it will recover its investment. Accordingly, the Trust has
                    determined that this impairment is temporary.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|7. | Preferred Equity
                Investment
|-- | -------------------------------------------

| | At
                    June 30, 2007, the Trusts Marc Realty portfolio consisted of one first
                    mortgage bridge loan, two participating second mortgage loans and 20
                    convertible mezzanine loans, together with an equity investment in each
                    mezzanine borrower, in the aggregate amount of approximately $79,159,000. Each
                    loan is collateralized by the applicable borrowers ownership interest in
                    a limited liability company (each a Property Owner) that in turn
                    owns an office building or complex primarily in the Chicago business district
                    or suburban area. Each borrower holds a 100% interest in the applicable
                    Property Owner other than with respect to one property, in which the borrower
                    holds a 75% interest in the Property Owner. Each loan, other than the first
                    mortgage bridge loan, bears interest at 7.65%, matures on April 18, 2012 and
                    requires monthly payments of interest only. The first mortgage bridge loan, in
                    the amount of $17,669,000 7.32%, requires monthly payments of interest only and
                    matures on June 20, 2008.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    second mortgage and mezzanine loan agreements contain conversion rights. The
                    Trust has the right after the first anniversary of the loan advance date to
                    cause the loan to be converted into an ownership interest. Marc Realty has the
                    right after the third anniversary of the loan advance date to convert the
                    Trusts loan into an ownership interest.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

15



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|7. | Preferred Equity
                Investment (Continued)
|-- | -------------------------------------------------------

| | In
                    connection with the equity interest acquired in each of the borrowers, the
                    Trust is entitled to participate in capital proceeds derived from the sale or
                    refinancing of the applicable property to the extent such proceeds generate
                    amounts in excess of that required to fully satisfy all of the debt encumbering
                    that property, including the respective loan and a return to the borrower of
                    its deemed equity (the agreed value of the applicable property at inception of
                    the loans less all debt encumbering that property including the loan made by
                    the Trust) plus a 7.65% return thereon.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | At inception of each such participatin investment, management determined whether it should be accounted
                        for as a loan, as a real estate venture using the equity method, or as a direct investment in real estate.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    Trust has agreed to advance approximately $8,540,000 to cover the costs of
                    tenant improvements and capital expenditures at the remaining 22 properties.
                    The Trust had advanced $7,256,000 and $4,116,000 at June 30, 2007 and December
                    31, 2006, respectively.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Summary financial
                    information for the Property Owner entities on a combined basis is as follows
                    (in thousands):
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                           |  |  | As of June 30,
                    2007 |         | As of December 31,
                    2006 |  
|---------------------------------------------------------- |  |  | --------------------------------------- | ------- | ------------------------------------------- | -
|                                                           |  |  |                                         |        
|Condensed
                Balance Sheet                    |  |  |                                         |         |                                             |  
|Investment
                in real estate, net             |  |  | $                                       | 166,968 |                                             | $
|Prepaid
                expenses and deposits in escrow    |  |  |                                         | 6,238   |                                             |  
|Cash and
                cash equivalents                  |  |  |                                         | 808     |                                             |  
|Receivables and other
                assets               |  |  |                                         | 20,970  |                                             |  
|                                                           |  |  |                                         |        
|Total
                Assets                               |  |  | $                                       | 194,984 |                                             | $
|                                                           |  |  |                                         |        
|Nonrecourse mortgage
                debt                  |  |  | $                                       | 258,362 |                                             | $
|Other
                liabilities                          |  |  |                                         | 21,290  |                                             |  
|                                                           |  |  |                                         |        
|Total
                Liabilities                          |  |  |                                         | 279,651 |                                             |  
|Members
                Capital Deficit                   |  |  |                                         | (84,667 | )                                           |  
|                                                           |  |  |                                         |        
|Total
                Liabilities and Members             |  | 
|Capital
                Deficit                            |  |  | $                                       | 194,984 |                                             | $
|                                                           |  |  |                                         |        
|On the
                Trusts Consolidated Balance Sheet: |  | 
|Preferred
                equity investment (1)            |  |  | $                                       | 80,581  |                                             | $
|                                                           |  |  |                                         |        

| | (1) | Includes
                capitalized acquisition costs of $963 and $1,073 at June 30, 2007 and December 31,
                2006.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------

16



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|                                                   |  |  | For the Three
                        Months Ended |        | For the Six
                        Months Ended |  
|-------------------------------------------------- |  |  | -------------------------------------------------- | ------ | ------------------------------------------------ | -
|                                                   |  |  | June 30,
                        2007              |        | June 30,
                        2006            |  
|                                                   |  |  |                                                    |        |                                                  |  
|Condensed
                Statements of Operations |  |  |                                                    |        |                                                  |  
|Revenue                                            |  |  | $                                                  | 15,280 |                                                  | $
|Operating
                expenses                 |  |  |                                                    | (9,760 | )                                                |  
|Interest
                expense                   |  |  |                                                    | (3,856 | )                                                |  
|Real
                estate taxes                  |  |  |                                                    | (2,888 | )                                                |  
|Depreciation and
                amortization      |  |  |                                                    | (3,076 | )                                                |  
|Other
                expenses                     |  |  |                                                    | (655   | )                                                |  
|Gain on
                sale of property           |  |  |                                                    |       |                                                  |  
|                                                   |  |  |                                                    |        |                                                  |  
|Net income
                (loss)                  |  |  | $                                                  | (4,955 | )                                                | $
|                                                   |  |  |                                                    |        |                                                  |  
|On the
                Trusts Consolidated        |  | 
|Statement
                of Operations and        |  | 
|Comprehensive
                Income:              |  | 
|Earnings
                from preferred equity     |  | 
|investment                                         |  |  | $                                                  | 1,247  |                                                  | $
|                                                   |  |  |                                                    |        |                                                  |  

|8. | Equity
                Investments
|-- | ----------------------------------

| | The
                    Trusts equity investments at June 30, 2007 are summarized as follows (in
                    thousands):
| | ---------------------------------------------------------------------------------------------------------------------------------

|                                                     |  |  | Concord Debt
                    Holdings, LLC |         | Sealy Northwest
                    Atlanta, LP |   | Sealy Airpark
                    Nashville L.P. |   | Lex-Win
                    Acquisition LLC |       | Total |  
|---------------------------------------------------- |  |  | ---------------------------------------------- | ------- | ----------------------------------------------- | - | ------------------------------------------------ | - | ------------------------------------------- | ----- | ----- | -
|                                                     |  |  |                                                |         |                                                 |   |                                                  |   |                                             |      
|Equity
                investments at                |  |  |                                                |         |                                                 |   |                                                  |   |                                             |       |       |  
|December
                31, 2006                    |  |  |                                                | 92,682  |                                                 |   | 5,419                                            |   |                                             |      |       |  
|Investments                                          |  |  |                                                | 43,658  |                                                 |   |                                                 |   |                                             | 9,308 |       |  
|Return of capital
                on                 |  | 
|equity
                investments                   |  |  |                                                | (10,000 | )                                               |   |                                                 |   |                                             |      |       |  
|Equity in other
                comprehensive income |  | 
|                                                     |  |  |                                                | 1,070   |                                                 |   |                                                 |   |                                             |      |       |  
|Equity in earnings
                (loss)            |  |  |                                                | 4,582   |                                                 |   | (263                                             | ) |                                             | (382  | )     |  
|                                                     |  |  |                                                |         |                                                 |   |                                                  |   |                                             |      
|Equity
                investments,                  |  | 
|June 30,
                2007                        |  |  | $                                              | 131,992 |                                                 | $ | 5,156                                            |   | $                                           | 8,926 |       | $
|                                                     |  |  |                                                |         |                                                 |   |                                                  |   |                                             |      

| | Concord Debt
                    Holdings, LLC
| | ----------------------------------------------

| | On
                    March 31, 2006, the Trust entered into a joint venture with The Newkirk Master
                    Limited Partnership (the MLP) to acquire and originate loans
                    collateralized, directly and indirectly, by real estate assets through Concord
                    Debt Holdings LLC (f/k/a 111 Debt Holdings LLC) (Concord). The
                    joint venture is owned equally by the MLP, which is now an operating
                    partnership of Lexington Realty Trust, an entity in which the Trusts
                    Chairman and Chief Executive Officer is the Executive Chairman, and the Trust.
                    The Trust and the MLP have each funded $125,000,000 to the joint venture. In
                    addition, Concord has entered into repurchase agreements with various financial
                    institutions pursuant to which the joint venture leverages the assets held in
                    the joint venture.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

17



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|8. | Equity
                Investments (Continued)
|-- | ----------------------------------------------

| | Concord Debt
                    Holdings, LLC (Continued)
| | ----------------------------------------------------------

| | Summary financial
                    information of Concord is as follows (in thousands):
| | ------------------------------------------------------------------------------------------

|                                                           |  |  | As of June 30,
                    2007 |           | As of December 31,
                    2006 |  
|---------------------------------------------------------- |  |  | --------------------------------------- | --------- | ------------------------------------------- | -
|                                                           |  |  |                                         |          
|Condensed
                Balance Sheet                    |  |  |                                         |           |                                             |  
|Cash and
                restricted cash                   |  |  | $                                       | 16,827    |                                             | $
|Investment
                in debt securities              |  |  |                                         | 1,030,190 |                                             |  
|Other
                assets                               |  |  |                                         | 11,250    |                                             |  
|                                                           |  |  |                                         |          
|Total
                assets                               |  |  | $                                       | 1,058,267 |                                             | $
|                                                           |  |  |                                         |          
|Accounts
                payable and other liabilities     |  |  |                                         | 2,284     |                                             |  
|Secured
                debt obligations                   |  |  |                                         | 376,650   |                                             |  
|Repurchase
                agreements                      |  |  |                                         | 415,132   |                                             |  
|Members
                equity                            |  |  |                                         | 264,201   |                                             |  
|                                                           |  |  |                                         |          
|Total
                liabilities and members equity      |  |  | $                                       | 1,058,267 |                                             | $
|                                                           |  |  |                                         |          
|On the
                Trusts Consolidated Balance Sheet: |  | 
|Equity
                investment in joint venture         |  |  | $                                       | 131,992   |                                             | $
|                                                           |  |  |                                         |          



|                                                                        |  |  | For the Three
                        Months Ended June 30, 2007 |        | For the Three
                        Months Ended June 30, 2006 (1) |   | For the Six
                        Months Ended June 30, 2007 |   | For the Six
                        Months Ended June 30, 2006 (1) |        
|----------------------------------------------------------------------- |  |  | ---------------------------------------------------------------- | ------ | -------------------------------------------------------------------- | - | -------------------------------------------------------------- | - | ------------------------------------------------------------------ | -------
|                                                                        |  |  |                                                                  |        |                                                                      |   |                                                                |  
|Condensed
                Statement of Operations                       |  |  |                                                                  |        |                                                                      |   |                                                                |   |                                                                    |        
|Interest and
                other income                               |  |  | $                                                                | 17,050 |                                                                      | $ | 2,441                                                          |   | $                                                                  | 28,204 
|Interest
                expense                                        |  |  |                                                                  | (9,940 | )                                                                    |   | (624                                                           | ) |                                                                    | (16,609
|General and
                administrative                              |  |  |                                                                  | (1.460 | )                                                                    |   | (318                                                           | ) |                                                                    | (2,430 
|                                                                        |  |  |                                                                  |        |                                                                      |   |                                                                |  
|Net
                income                                              |  |  | $                                                                | 5,650  |                                                                      | $ | 1,499                                                          |   | $                                                                  | 9,165  
|                                                                        |  |  |                                                                  |        |                                                                      |   |                                                                |  
|On the Trusts
                Consolidated Statement of Operations and |  | 
|Comprehensive
                Income:                                   |  | 
|Equity in earnings of equity
                investment                 |  |  | $                                                                | 2,825  |                                                                      | $ | 749                                                            |   | $                                                                  | 4,582  
|                                                                        |  |  |                                                                  |        |                                                                      |   |                                                                |  

| | (1) | Commenced
                operations March 31, 2006.
| | --- | ----------------------------------------------------

18



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|9. | Repurchase
                    Agreements
|-- | -----------------------------------------

| | Information
                    pertaining to the repurchase agreements as of June 30, 2007 and December 31,
                    2006 is as follows (dollars in thousands):
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                        |  |  | June 30,
                    2007       |        | December 31,
                    2006         |  
|--------------------------------------------------------------------------------------- |  |  | --------------------------------------- | ------ | --------------------------------------------- | -
|                                                                                        |  |  |                                         |       
|                                                                                        |  |  | Debt Carrying
                    Value |        | Collateral
                    Carrying Value |  
|                                                                                        |  |  |                                         |        |                                               |  
|Repurchase
                agreement with Bear Stearns & Co., Inc. as counter-party,    |  |  |                                         |        |                                               |  
|expiration July 25, 2007,
                renewable monthly, interest is variable based |  | 
|on one-month LIBOR minus 3
                basis points                                 |  |  | $                                       | 60,838 |                                               | $
|                                                                                        |  | 
|Repurchase agreement with
                Bear Stearns & Co., Inc. as counter-party,    |  | 
|expiration July 25, 2007,
                renewable monthly, interest is variable based |  | 
|on one-month LIBOR minus 3
                basis points                                 |  |  |                                         | 10,930 |                                               |  
|                                                                                        |  | 
|Repurchase agreement with
                Bear Stearns & Co., Inc. as counter-party,    |  | 
|expiration July 25, 2007,
                renewable monthly, interest is variable based |  | 
|on one-month LIBOR minus 3
                basis points                                 |  |  |                                         | 20,274 |                                               |  
|                                                                                        |  |  |                                         |        |                                               |  
|                                                                                        |  |  | $                                       | 92,042 |                                               | $
|                                                                                        |  |  |                                         |        |                                               |  

| | As of
                    June 30, 2007 and December 31, 2006, the borrowing rate on the Trusts
                    repurchase agreements was 5.30% and 5.33%, respectively, and is renewable
                    monthly. Subsequent to June 30, 2007, each repurchase agreement was renewed
                    through August 25, 2007.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Cumulatively through
                    June 30, 2007, the Trust paid down $2,625,000 on its repurchase agreements in
                    connection with margin calls.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

19



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|10. | Debt
|--- | ----

| | The
                    Trusts debt is summarized as follows (in thousands):
| | -----------------------------------------------------------------------------

|                                                          |  |  | Maturity      |  | Spread Over
                    LIBOR/
                    Prime |  | Interest Rate as
                    of June 30, 2007 |  | Balance as of June
                    30, 2007 |       | Balance as of
                    December 31, 2006 |  
|--------------------------------------------------------- |  |  | ------------- |  | ---------------------------------------------------------------- |  | ----------------------------------------------------- |  | ----------------------------------------------- | ----- | --------------------------------------------------- | -
|                                                          |  |  |               |  |                                                                  |  |                                                       |  |                                                 |      
|                                                          |  |  |               |  |                                                                  |  |                                                       |  |                                                 |       |                                                     |  
|Mortgage
                Loans Payable                    |  |  |               |  |                                                                  |  |                                                       |  |                                                 |       |                                                     |  
|Fixed Interest
                Rate:                      |  |  |               |  |                                                                  |  |                                                       |  |                                                 |       |                                                     |  
|Amherst, NY                                               |  |  | October 2013  |  |                                                                  |  |                                                      |  |                                                 | 5.65% |                                                     |  
|Indianapolis, IN                                          |  |  | April 2015    |  |                                                                  |  |                                                      |  |                                                 | 5.82% |                                                     |  
|Houston, TX                                               |  |  | April 2016    |  |                                                                  |  |                                                      |  |                                                 | 6.66% |                                                     |  
|Andover, MA                                               |  |  | February 2011 |  |                                                                  |  |                                                      |  |                                                 | 6.60% |                                                     |  
|S. Burlington,
                VT                         |  |  | February 2011 |  |                                                                  |  |                                                      |  |                                                 | 6.60% |                                                     |  
|Chicago, IL                                               |  |  | March 2016    |  |                                                                  |  |                                                      |  |                                                 | 5.75% |                                                     |  
|Lisle, IL                                                 |  |  | June 2016     |  |                                                                  |  |                                                      |  |                                                 | 6.26% |                                                     |  
|Lisle, IL                                                 |  |  | March 2017    |  |                                                                  |  |                                                      |  |                                                 | 5.55% |                                                     |  
|Kansas City, KS                                           |  |  | June 2012     |  |                                                                  |  |                                                      |  |                                                 | 8.50% |                                                     |  
|Orlando, FL                                               |  |  | July 2017     |  |                                                                  |  |                                                      |  |                                                 | 6.40% |                                                     |  
|                                                          |  |  |               |  |                                                                  |  |                                                       |  |                                                 |       |                                                     |  
|Variable
                Interest Rate:                   |  |  |               |  |                                                                  |  |                                                       |  |                                                 |       |                                                     |  
|Various                                                   |  |  | June 2009     |  |                                                                  |  | LIBOR + 1.75%                                         |  |                                                 | (1)   |                                                     |  
|Chicago, IL                                               |  |  | March 2008    |  |                                                                  |  | Prime + 0.50%                                         |  |                                                 | 8.75% |                                                     |  
|Chicago, IL                                               |  |  | March 2008    |  |                                                                  |  | Prime + 0.50%                                         |  |                                                 | 8.75% |                                                     |  
|                                                          |  |  |               |  |                                                                  |  |                                                      
|Total Mortgage
                Debt                       |  |  |               |  |                                                                  |  |                                                       |  |                                                 |       |                                                     | $
|                                                          |  |  |               |  |                                                                  |  |                                                      
|Loans
                Payable:                            |  | 
|Collateralized by
                venture                 |  | 
|participation in the Toy
                Building Loan(2) |  |  | April 2008    |  |                                                                  |  | LIBOR + 3.00%                                         |  |                                                 | 8.33% |                                                     | $
|Miscellaneous                                             |  |  | February 2007 |  |                                                                  |  |                                                      |  |                                                 | 7.50% |                                                     |  
|                                                          |  |  |               |  |                                                                  |  |                                                      
|                                                          |  |  |               |  |                                                                  |  |                                                       |  |                                                 |       |                                                     | $
|                                                          |  |  |               |  |                                                                  |  |                                                      
|Revolving Line of
                Credit:                 |  | 
|$70 Million Revolving Line
                of Credit      |  |  | December 2008 |  |                                                                  |  | LIBOR + 2.25%                                         |  |                                                 |      |                                                     | $
|                                                          |  |  |               |  |                                                                  |  |                                                      

| | (1) | As a
                result of the Trust entering into an interest rate swap agreement in the notional
                amount of $26,000,000, the Trust has effectively converted the interest rate from a
                floating rate to a fixed rate of 5.80% through December, 2009. The remaining
                principal amount of $3,495,000 remains variable at LIBOR plus 1.75% (which equated
                to 7.125% at June 30, 2007).
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Loan was
                satisfied May 16, 2007.
| | --- | ------------------------------------------------

|11. | Revolving Line of
                Credit
|--- | ----------------------------------------

| | The
                    Trust has a line of credit with KeyBank National Association
                    (KeyBank) pursuant to which the Trust can borrow on a revolving
                    basis up to $70,000,000, subject to increase to $100,000,000. The revolving
                    credit line matures December 16, 2008 with the option by the Trust to extend
                    the term for an additional year. Amounts borrowed under the revolving credit
                    line bear interest at rates based on the Trusts leverage ratio and range
                    from LIBOR plus 1.5% to LIBOR plus 2.25%. In addition, to the extent the Trust
                    maintains cash balances at KeyBank in excess of a certain threshold, the
                    interest rate is reduced to LIBOR plus 1.35%. The Trust is required to pay a 15
                    or 25 basis point fee on the unused portion of the line, depending upon the
                    outstanding balance borrowed. The Trust paid fees of $44,000 and $88,000 on the
                    unused portion of the line for the three and six months ended June 30,
                    2007.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | At
                    June 30, 2007 and December 31, 2006, there were no amounts outstanding under
                    the credit line.
| | ----------------------------------------------------------------------------------------------------------------------------------------

20



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|12. | Hedge
                Instruments
|--- | ---------------------------------

| | The
                    table below presents information about the Trusts interest rate swaps at
                    June 30, 2007 (dollars in thousands):
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|Active Period
                    Through |  |  | Swap
                    Rate |  | Notional Amount of
                    Hedge |        | Cost of
                    Hedge |   | Estimated Fair
                    Value/ Carrying Value |  | Unrealized Gain on
                    Sale of Swap |     | Gross Unrealized
                    Gain(Loss) For the Three Months Ended June 30, 2007 |   | Gross Unrealized
                    Gain(Loss) For the Six Months Ended June 30, 2007 | 
|----------------------------------------- |  |  | ----------------------------- |  | -------------------------------------------- | ------ | --------------------------------- | - | -------------------------------------------------------- |  | --------------------------------------------------- | --- | ---------------------------------------------------------------------------------------- | - | -------------------------------------------------------------------------------------- | 
|                                          |  |  |                               |  |                                              |        |                                   |   |                                                          |  |                                                     |     |                                                                                          |   |                                                                                        | 
|December
                2009             |  |  | 4.05%                         |  | $                                            | 26,000 |                                   | $ |                                                         |  | $                                                   | 695 |                                                                                          | $ | 365                                                                                    | 
|January 2008                              |  |  | 4.045%                        |  | $                                            | 60,838 |                                   | $ |                                                         |  | $                                                   | 366 |                                                                                          | $ |                                                                                       | 
|                                          |  |  |                               |  |                                              |        |                                   |   |                                                         
|                                          |  |  |                               |  |                                              |        |                                  
|                                          |  |  |                               |  |                                              |        |                                   |   |                                                          |  |                                                     |     |                                                                                          |   |                                                                                        | 
|                                          |  |  |                               |  |                                              |        |                                   |   |                                                         

| | As
                    discussed in Note 3, the Trust made a $40,000,000 prepayment on its floating
                    rate debt during the second quarter of 2007. As a result, the Trust sold a
                    portion of its existing interest rate swap with a notional amount of
                    $14,000,000 for $366,000 resulting in an unrealized gain which will be
                    amortized to income over the remaining life of the swap.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | No
                    hedge ineffectiveness as defined by FAS No. 133 on cash flow hedges was
                    recognized for the six months ended June 30, 2007.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------

|13. | Common
                Shares of Beneficial Interest
|--- | ----------------------------------------------------

| | The
                    Trust issued (i) approximately 178,000 Common Shares on January 16, 2007 for a
                    gross sales price of $1,200,000 (approximately $6.73 per share) pursuant to its
                    Dividend Reinvestment Plan and (ii) approximately 135,000 common shares on
                    April 16, 2007 for a gross sales price of $885,000 (approximately $6.56 per
                    share) pursuant to its Dividend Reinvestment Plan.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|14. | Discontinued
                Operations
|--- | ---------------------------------------

| | At
                    June 30, 2007 and December 31, 2006, assets of discontinued operations consist
                    of the Trusts St. Louis, Missouri property.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    City of St. Louis has commenced a condemnation proceeding with respect to the
                    Trusts property in St. Louis, Missouri. The City is seeking to take the
                    property as part of an area-wide redevelopment program. The property, which is
                    currently vacant, is leased to The Kroger Company pursuant to a net lease with
                    a term scheduled to expire October 31, 2010 and annual rent of $233,000.
                    Pursuant to the terms of the lease, the tenant is required to make a revocable
                    offer to purchase the property at a scheduled price at such time, if at all, as
                    a condemnation occurs. The scheduled price, which decreases over time, is in
                    excess of the existing principal balance due on the loan collateralized by the
                    property. A trial has been scheduled for October 2007 when it is expected that
                    the property value will be determined, after which the condemnation will
                    occur.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    Trust classifies as discontinued operations in its Consolidated Statement of
                    Operations and Comprehensive Income the income and expenses for the St. Louis,
                    Missouri property. In addition, the Trust classifies the assets and liabilities
                    related to such property as Assets of Discontinued Operations and Liabilities
                    of Discontinued Operations on its Consolidated Balance Sheets. Liabilities of
                    discontinued operations at June 30, 2007 and December 31, 2006 consist of
                    $828,000 of accounts payable and accrued expenses.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

21



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|14. | Discontinued
                Operations (Continued)
|--- | ---------------------------------------------------

| | The
                    combined results related to discontinued operations for the three and six
                    months ended June 30, 2007 and June 30, 2006 are as follows (in thousands):
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                    |  |  | For the Three
                    Months Ended June 30, |    | For the Six Months
                    Ended June 30, |  
|--------------------------------------------------- |  |  | ------------------------------------------------------- | -- | ----------------------------------------------------- | -
|                                                    |  |  |                                                         |   
|                                                    |  |  | 2007                                                    |    | 2006                                                  |  
|                                                    |  |  |                                                         |    |                                                       |  
|Total revenue                                       |  |  | $                                                       | 55 |                                                       | $
|Total expenses                                      |  |  |                                                         | (9 | )                                                     |  
|                                                    |  |  |                                                         |    |                                                       |  
|Income from discontinued
                operations |  |  | $                                                       | 46 |                                                       | $
|                                                    |  |  |                                                         |    |                                                       |  

|15. | Related-Party
                Transactions
|--- | ------------------------------------------

| | The
                    activities of the Trust and its subsidiaries are administered by FUR Advisors
                    LLC (FUR Advisors) pursuant to the terms of the Advisory
                    Agreement between the Trust and FUR Advisors, which agreement was entered into
                    in connection with the acquisition by FUR Investors LLC of its interest in the
                    Trust and the other transactions entered into in connection therewith. FUR
                    Advisors is controlled by and partially owned by the executive officers of the
                    Trust. Pursuant to the terms of the Advisory Agreement, FUR Advisors is
                    responsible for providing asset management services to the Trust and
                    coordinating with the Trusts shareholder transfer agent and property
                    managers. FUR Advisors is entitled to receive a base management fee and an
                    incentive fee. In addition, FUR Advisors or its affiliate is also entitled to
                    receive property and construction management fees at commercially reasonable
                    rates as determined by the indep of the Trust.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    following table sets forth the fees and reimbursements paid by the Trust for
                    the three and six months ended June 30, 2007 and 2006 to FUR Advisors and
                    Winthrop Management L.P. (in thousands):
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                        |  |  | Three Months
                    Ended |       | Six
                    Months Ended |  
|--------------------------------------- |  |  | -------------------------------------- | ----- | ------------------------------------ | -
|                                        |  |  | 2007                                   |       | 2006                                 |  
|                                        |  |  |                                        |       |                                      |  
|Asset Management
                (1)    |  |  | $                                      | 1,311 | (3)                                  | $
|Property Management
                (2) |  |  |                                        | 68    |                                      |  

| | (1) | Payable
                to FUR Advisors.
| | --- | ----------------------------------------

| | (2) | Payable
                to Winthrop Management L.P.
| | --- | ---------------------------------------------------

| | (3) | Before
                credit of $93,000 discussed below.
| | --- | ---------------------------------------------------------

| | (4) | Before
                credit of $151,000 discussed below.
| | --- | ----------------------------------------------------------

| | In
                    connection with the Newkirk/Lexington merger, the Trust received a $4,400,000
                    credit to be utilized on a go forward basis in offsetting the quarterly
                    advisory fees payable under the Advisory Agreement or in cash if the credit is
                    not fully utilized after eight fiscal quarters. The Trust utilized $1,217,000
                    of this amount to offset the base management fee payable for the quarter ended
                    June 30, 2007. As of June 30, 2007, the Trust has a credit remaining of
                    $1,007,000 to offset future base management fees.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | During the three and
                    six months ended June 30, 2007, WRP Sub-Management LLC (WRP
                    Sub-Management), an affiliate of FUR Advisors and the entity retained to
                    provide accounting, collateral management and loan brokerage services to
                    Concord and its subsidiaries, including Concord Real Estate CDO 2006-1, Ltd.,
                    received fees totaling $750,000 and $1,487,000, respectively, in accordance
                    with the terms of the agreement with WRP Sub-Management. Of these amounts,
                    $135,000 and $251,000 were paid to Winthrop Realty Partners, L.P. to reimburse
                    it for costs associated with providing accounting and other
                    back-office services for the benefit of Concord (the
                    Affiliate Amount). Because the Trust pays an advisory fee to FUR
                    Advisors, the Trust is entitled to receive a credit against the base management
                    fee payable to FUR Advisors equal to 50% of the Affiliate Amount. For the three
                    and six months ended June 30, 2007, the Trust received and utilized a credit of
                    $93,000 and $151,000, respectively, against the base management fee.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

22



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|16. | Business
                Segments
|--- | ---------------------------------

| | SFAS
                    No. 131 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
                    operating segments in interim financial reports issued to shareholders.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    Trust has determined that it has three reportable operating segments: Operating
                    Properties, Loans, and Real Estate Securities. The reportable segments were
                    determined based on the Trusts method of internal reporting.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    Operating Properties segment includes all of the Trusts wholly and
                    partially owned operating properties.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    Loans segment includes all of the Trusts activities related to senior
                    and mezzanine real estate debt.
| | --------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    Real Estate Securities segment includes all of the Trusts activities
                    related to the ownership of securities in other publicly traded real estate
                    companies.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    accounting policies of the segments are the same as those described in Note
                    2.
| | --------------------------------------------------------------------------------------------------------------------------

23



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|16. | Business Segments
                (Continued)
|--- | ---------------------------------------------

| | The
                    following tables present a summary of revenues from Operating Properties, Loans
                    and Real Estate Securities and expenses incurred by each segment for the three
                    and six months ended June 30, 2007 and June 30, 2006. The Trust defines net
                    operating income for each segment presented as the segments revenue and
                    other income less operating expenses. Corporate Income (Expense) includes
                    interest on cash reserves, general and administrative expenses and other
                    non-segment specific income and expense items.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Business
        Segments (in thousands)

|                                                                       |  |  | For the Three
                        Months Ended |        | For the Six
                        Months Ended |  
|---------------------------------------------------------------------- |  |  | -------------------------------------------------- | ------ | ------------------------------------------------ | -
|                                                                       |  |  | June 30,
                        2007              |        | June 30,
                        2006            |  
|                                                                       |  |  |                                                    |        |                                                  |  
|Operating
                Properties                                   |  |  |                                                    |        |                                                  |  
|Rents and
                reimbursements                               |  |  | $                                                  | 11,285 |                                                  | $
|Loss
                on extinguishment of debt                         |  |  |                                                    | (320   | )                                                |  
|Less
                - operating expenses                              |  |  |                                                    | (1,176 | )                                                |  
|Less
                - real estate taxes                               |  |  |                                                    | (447   | )                                                |  
|Equity in loss of
                Sealy Northwest Atlanta, L.P.        |  |  |                                                    | (98    | )                                                |  
|Equity in loss of
                Sealy Nashville                      |  |  |                                                    | (382   | )                                                |  
|                                                                       |  |  |                                                    |        |                                                  |  
|Net
                operating income                                   |  |  |                                                    | 8,862  |                                                  |  
|                                                                       |  |  |                                                    |        |                                                  |  
|Loans                                                                  |  | 
|Interest                                                               |  |  |                                                    | 2,445  |                                                  |  
|Equity earnings in
                preferred equity investment         |  |  |                                                    | 1,247  |                                                  |  
|Equity in earnings of
                Concord Debt Holdings, LLC       |  |  |                                                    | 2,825  |                                                  |  
|Provision for loss on
                loan receivable                  |  |  |                                                    | (1,266 | )                                                |  
|                                                                       |  |  |                                                    |        |                                                  |  
|Net
                operating income                                   |  |  |                                                    | 5,251  |                                                  |  
|                                                                       |  |  |                                                    |        |                                                  |  
|Real Estate
                Securities                                 |  | 
|Dividends                                                              |  |  |                                                    | 1,114  |                                                  |  
|Gain
                on sale of real estate securities                 |  |  |                                                    | 9,739  |                                                  |  
|Assignment of
                exclusivity agreement - net lease assets |  |  |                                                    |       |                                                  |  
|Equity in earnings of
                Newkirk Realty Trust             |  |  |                                                    |       |                                                  |  
|Equity in loss of
                Lex-Win Acquisition                  |  |  |                                                    | (174   | )                                                |  
|                                                                       |  |  |                                                    |        |                                                  |  
|Net
                operating income                                   |  |  |                                                    | 10,679 |                                                  |  
|                                                                       |  |  |                                                    |        |                                                  |  
|Net Operating
                Income                                   |  |  |                                                    | 24,792 |                                                  |  
|                                                                       |  |  |                                                    |        |                                                  |  
|Less - Depreciation and
                Amortization                   |  |  |                                                    | 3,257  |                                                  |  
|                                                                       |  | 
|Less - Interest
                Expense                                |  | 
|Operating
                Properties                                   |  |  |                                                    | 3,656  |                                                  |  
|Loans                                                                  |  |  |                                                    | 1,786  |                                                  |  
|                                                                       |  | 
|Corporate Income
                (Expense)                             |  | 
|Interest
                income                                        |  |  |                                                    | 763    |                                                  |  
|Interest
                expense                                       |  |  |                                                    | (1,942 | )                                                |  
|General and
                administrative (1)                         |  |  |                                                    | (2,024 | )                                                |  
|State and local
                taxes                                  |  |  |                                                    | (231   | )                                                |  
|                                                                       |  |  |                                                    |        |                                                  |  
|Income from continuing
                operations before               |  | 
|minority
                interest                                      |  |  |                                                    | 12,659 |                                                  |  
|Minority
                interest                                      |  |  |                                                    | 71     |                                                  |  
|                                                                       |  |  |                                                    |        |                                                  |  
|Income from continuing
                operations                      |  |  |                                                    | 12,730 |                                                  |  
|Income from discontinued
                operations                    |  |  |                                                    | 46     |                                                  |  
|                                                                       |  |  |                                                    |        |                                                  |  
|Net
                Income                                             |  |  | $                                                  | 12,776 |                                                  | $
|                                                                       |  |  |                                                    |        |                                                  |  
|Capital
                Expenditures                                   |  | 
|Operating
                properties                                   |  |  | $                                                  | 417    |                                                  | $
|                                                                       |  |  |                                                    |        |                                                  |  

| | (1)
                    After credits - See Note 15.
| | ----------------------------------------------------

24



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|16. | Business Segments
                (Continued)
|--- | ---------------------------------------------

|                                          |  |  | June 30,
                    2007 |         | December 31,
                    2006 |  
|----------------------------------------- |  |  | --------------------------------- | ------- | ------------------------------------- | -
|                                          |  |  |                                   |        
|Identifiable
                Assets       |  |  |                                   |         |                                       |  
|Operating
                Properties      |  |  | $                                 | 288,417 |                                       | $
|Loans                                     |  |  |                                   | 327,206 |                                       |  
|Real Estate
                Securities    |  |  |                                   | 78,240  |                                       |  
|Cash and Cash
                Equivalents |  |  |                                   | 72,015  |                                       |  
|Other                                     |  |  |                                   | 24,578  |                                       |  
|                                          |  |  |                                   |        
|Total
                Assets              |  |  | $                                 | 790,456 |                                       | $
|                                          |  |  |                                   |        



|                                       |  |  | For the Three
                        Months Ended |        | For the Six
                        Months Ended |  
|-------------------------------------- |  |  | -------------------------------------------------- | ------ | ------------------------------------------------ | -
|                                       |  |  | June 30,
                        2007              |        | June 30,
                        2006            |  
|                                       |  |  |                                                    |        |                                                  |  
|Revenues                               |  |  |                                                    |        |                                                  |  
|Operating
                Properties   |  |  | $                                                  | 11,285 |                                                  | $
|Loans                                  |  |  |                                                    | 2,445  |                                                  |  
|Real Estate
                Securities |  |  |                                                    | 1,114  |                                                  |  
|                                       |  |  |                                                    |        |                                                  |  
|Total
                Revenue          |  |  | $                                                  | 14,844 |                                                  | $
|                                       |  |  |                                                    |        |                                                  |  



|17. | Restatement
|--- | -----------

| | On August 7, 2007,  management  of the Trust,  in  consultation  with the Audit  Committee of the Trusts  Board of
Trustees  concluded  that it needed to correct  the  Trusts  previously  reported  net income per Common  Share of
Beneficial  Interest  basic  for the years  ended  December  31,  2006 and 2005 and for certain interim periods within those years.
The Trust determined that its prior calculations of basic net income per common share had not appropriately considered the provisions of EITF 03-06 with respect to the dividend participation rights of the Series B-1 preferred shares, and that net income per Common Share of Beneficial Interest  basic, should have been determined using the two-class method described in that pronouncement.  The error in the  calculation  of net income
per Common Share of Beneficial  Interest basic  has no impact on the
Trusts  consolidated  net income or  comprehensive  income,  net income per Common Share of  Beneficial  Interest-
diluted,  consolidated balance sheet,  consolidated  statements of shareholders equity and consolidated statements
of cash flows, nor does it impact cash available for distribution or its debt covenants under its loan facility.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

25



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

NOTES TO
        UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

|17. | Restatement
                (Continued)
|--- | ---------------------------------------

| | With respect to the six months ended June 30, 2006, previously reported and revised earnings per Common Share-basic, are shown below. There was no effect on earnings per Common Share-basic for the three months ended June 30, 2006.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                |  | Net Income |  |  | Earnings per Common Share- basic |  | 
|------------------------------- |  | ---------- |  |  | -------------------------------- |  | 
|Six Months Ended June 30, 2006  |  |            |  |  |                                  |  | 
|As reported                     |  | $13,604    |  |  | $0.33                            |  | 
|After Application of EITF 03-06 |  | $13,604    |  |  | $0.27                            |  | 

| | The Trust will file a Form 10-K/A for the year ended December 31, 2006 to correct the net income per Common Share of Beneficial Interest basic in its financial statements for the years ended December 31, 2006 and 2005 and will provide corrected quarterly net income per Common Share of Beneficial Interest basic amounts for both 2005 and 2006 in the unaudited quarterly results of operations footnote appearing in those financial statements.  The Form 10K/A is expected to be filed shortly.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|18. | Subsequent
                Event
|--- | --------------------------------

| | On
                    July 23, 2007, the Trust entered into agreements with Vision Property Services,
                    LLC (Vision), the borrower under the Vision Loan and Vision line
                    of credit (the Vision Loans), pursuant to which (i) Vision
                    transferred to WRT-Vision Holding (an entity owned by the Trust and Vision) its
                    ownership interests in three entities (the Transferred Entities)
                    that own an interest in multi-family apartment buildings located in Littleton,
                    Colorado, Overland Park, Kansas and Kansas City, Kansas, (ii) WRT-Vision
                    Holding assumed the obligations under the Vision Loans, (iii) the interest rate
                    on the Vision Loans was reduced to 12% per annum, and (iv) the operating
                    agreement of WRT-Vision Holding was modified to provide that the Trust is now
                    effectively the managing member of WRT-Vision Holding and that all
                    distributions by WRT-Vision Holding after satisfaction of the Vision Loans,
                    plus any additi onal advances made by the Trust on account of the Transferred
                    Entities plus interest on such advances at 15% per annum (theAdditional
                    Advances), are to be made 50% to the Trust and 50% to Vision, except for
                    proceeds from the Creekwood investment which are allocated 96% to the Trust and
                    4% to Vision. In addition, Vision has the right to acquire from WRT-Vision
                    Holding its interest in the Transferred Entities at any time prior to July 23,
                    2008 for a purchase price equal to the then outstanding balance of the Vision
                    Loans plus the Additional Advances.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Due to the high level of uncertainty as to the collectibility of the Vision Property Services Loan,
the Trust has recorded a provision for loan loss of $1,266,000 representing the total loan receivable balance including accrued interest of $16,000 at June 30, 2007.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

26



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

|ITEM 2. | MANAGEMENTS
                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
                OPERATIONS
|------- | ---------------------------------------------------------------------------------------------------------------------

| | Certain statements
                    contained herein constitute forward-looking statements as such term is defined
                    in Section 27A of the Securities Act of 1933, as amended, and Section 21E of
                    the Securities Exchange Act of 1934, as amended. Forward-looking statements are
                    not guarantees of performance. They involve risks, uncertainties and
                    assumptions. Our future results, financial condition and business may differ
                    materially from those expressed in these forward-looking statements. You can
                    find many of these statements by looking for words such as
                    approximates, believes, expects,
                    anticipates, intends, plans,
                    would, may or similar expressions in this quarterly
                    report on Form 10-Q. These forward-looking statements are subject to numerous
                    assumptions, risks and uncertainties. Many of the factors that will determine
                    these items are beyond our ability to control or predict. Factors that may
                    cause actual results to differ materially from those contemplated by the
                    forward-looking statements include, but are not limited to, those set forth in
                    our Annual Report on Form 10-K for the year ended December 31, 2006 under
                    Forward Looking Statements and Item 1A. Risk
                    Factors. For these statements, we claim the protection of the safe
                    harbor for forward-looking statements contained in the Private Securities
                    Litigation Reform Act of 1995. We expressly disclaim any responsibility to
                    update forward-looking statements, whether as a result of new information,
                    future events or otherwise. Accordingly, investors should use caution in
                    relying on forward-looking statements, which are based on information,
                    judgments and estimates at the time they are made, to anticipate future results
                    or trends.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Managements
                    Discussion and Analysis of Financial Condition and Results of Operations
                    includes a discussion of our consolidated financial statements for the three
                    and six months ended June 30, 2007 as compared to the three and six months
                    ended June 30, 2006. The preparation of financial statements in conformity with
                    accounting principles generally accepted in the United States of America
                    requires management to make estimates and assumptions that affect the reported
                    amounts of assets and liabilities and disclosure of contingent assets and
                    liabilities at the date of the financial statements and the reported amounts of
                    revenues and expenses during the reporting periods. Actual results could differ
                    from those estimates.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | This
                    item should be read in conjunction with the financial statements, footnotes
                    thereto and other items contained elsewhere in the report.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Overview
| | --------

| | We
                    are a real estate investment trust (REIT) engaged in the business
                    of owning real property and real estate related assets. With certain
                    self-imposed limitations, we will seek opportunities to invest in or acquire
                    most types of real estate assets or securities. We operate in three strategic
                    business segments: (i) Operating Properties, (ii) Loans and (iii) Real Estate
                    Securities. We may make investments in each of these segments through direct
                    ownership and joint ventures as well as through entering into specific
                    strategic alliances with regional or specialized real estate professionals with
                    extensive experience in a particular market or asset type and seek to enter
                    into strategic co-investment joint ventures managed by us with institutional
                    and high net worth investors to enhance our total return through acquisition,
                    asset management and other fees and a promoted economic interest.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
                    view of the foregoing, our near-term investment strategy will be to identify
                    and invest in discrete real estate investments including investments through
                    joint ventures. As market conditions dictate, we will focus our investment
                    activity in one or more of our business segments and aggressively pursue such
                    opportunities.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We
                    intend to fund these investments through one or more of cash, borrowings under
                    our credit facility, property loans, issuance of debt and equity, and joint
                    ventures with third parties. For the long-term, as investments mature in value
                    to the point where we are unlikely to achieve better than a market return on
                    their then enhanced value, it is likely we will exit the investment and seek to
                    redeploy the capital to higher yielding opportunities. Therefore, these items
                    are an important part of our overall earnings and may result in uneven earnings
                    that may vary greatly from quarter to quarter.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Our
                    business objective is to maximize long-term shareholder value through a total
                    return value approach to real estate investing. We measure our success in
                    meeting this objective by a number of factors, including increases in diluted
                    per share net income, cash returns generated by our investments, increases in
                    shareholder equity, net operating income and total return to our
                    shareholders.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

27



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

During the six
        months ended June 30, 2007 and 2006 our operating results were as
        follows:

|                                                     |  |  | For the Three
                        Months Ended |            | For the Six
                        Months Ended |  
|---------------------------------------------------- |  |  | -------------------------------------------------- | ---------- | ------------------------------------------------ | -
|                                                     |  |  | June 30,
                        2007              |            | June 30,
                        2006            |  
|                                                     |  |  |                                                    |            |                                                  |  
|Net
                income                           |  |  | $                                                  | 12,776,000 |                                                  | $
|                                                     |  |  |                                                    |            |                                                  |  
|Net income per Common Share,
                basic   |  |  | $                                                  | 0.16       |                                                  | $
|                                                     |  |  |                                                    |            |                                                  |  
|Net income per Common Share,
                diluted |  |  | $                                                  | 0.16       |                                                  | $
|                                                     |  |  |                                                    |            |                                                  |  
|Net cash flow provided by
                operating  |  | 
|activities                                           |  |  |                                                    |            |                                                  |  
|                                                     |  |  |                                                    |            |                                                  |  

At June 30, 2007
        and December 31, 2006, total assets and total shareholders equity were as
        follows:

|                                           |  |  | June 30,
                    2007 |             | December 31,
                    2006 |  
|------------------------------------------ |  |  | --------------------------------- | ----------- | ------------------------------------- | -
|                                           |  |  |                                   |            
|Total
                assets               |  |  | $                                 | 790,456,000 | (1)                                   | $
|                                           |  |  |                                   |            
|Total shareholders
                equity |  |  | $                                 | 332,839,000 |                                       | $
|                                           |  |  |                                   |            

| | (1) | The
                decrease in total assets relates primarily to the satisfaction of the Toy Loan
                receivable and corresponding satisfaction of the Toy Loan payable and distribution
                to the minority interest.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Our activities
        are administered by FUR Advisors LLC (FUR Advisors), an entity controlled by
        and partially owned by our executive officers, pursuant to the terms of an advisory
        agreement under which FUR Advisors is entitled to receive a base management fee and an
        incentive fee. In addition, FUR Advisors or its affiliate is also entitled to receive
        property and construction management fees at commercially reasonable rates as determined by
        our independent trustees. The incentive fee is only payable to the extent that holders of
        our Common Shares receive aggregate distributions above a threshold amount. At June 30,
        2007, the threshold amount was $347,800,000. If we were to liquidate or sell all or a
        substantial portion of our assets at June 30, 2007, based upon a per share price equal to
        the closing price on the last day of the quarter ($6.91 per share at June 30, 2007), the
        amount payable to FUR Advisors as incentive fee compensation would be approximately
        $51,662,000. Although the foregoing calculation of the incentive fee is based on the
        closing price of our Common Shares on the last day of the quarter, if the advisory
        agreement were terminated, the actual incentive fee payable would be based on an appraised
        valuation or the liquidation proceeds received for our assets.

Since April 1,
        2007, we have entered into the following transactions:

| |  | On April
                17, 2007, we acquired, through a joint venture with Sealy & Company Inc.
                (Sealy), 13 light distribution and service center properties in
                Nashville, Tennessee. The purchase price for the properties was $87,200,000 which
                was financed through $65,383,000 of proceeds net of escrows and closing costs from
                a $74,000,000 first mortgage loan and a $3,600,000 bridge loan from Sealy. Both
                Sealy and us contributed $9,307,000 for a 50% ownership in the joint
                venture.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | On May
                16, 2007, the Toy Building loan which was held in a venture in which we held a
                one-third interest was satisfied. After satisfying the loan which bore a variable
                rate of interest, collateralized by the ventures interest in the Toy
                Building loan, we received a return of its initial invested capital of $9,959,000
                together with $562,000 on account of its priority interest.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | On May
                24, 2007, WRT-Vision Creekwood, LLC, a venture in which the Trust holds a 90%
                interest, obtained a $5,846,000 loan from an unaffiliated third party lender. The
                lender has also committed to increase the loan to $7,000,000 to fund future capital
                improvements. The loan is collateralized by WRT-Vision Creekwoods property
                located in Kansas City, Kansas and bears interest at 7.042%. The loan requires
                monthly payments of interest only and is scheduled to mature on June 1,
                2012.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

28



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

| |  | On May
                25, 2007, Lex-Win Acquisition LLC (Lex-Win), an entity in which we
                hold a 28% ownership interest, commenced a tender offer to acquire up to 45,000,000
                shares of common stock in Wells Real Estate Investment Trust, Inc.
                (Wells) at a price per share of $9.30. The tender offer expired on
                July 20, 2007 at which time Lex-Win had received tenders for approximately
                4,800,000 shares representing approximately 1% of the outstanding shares in
                Wells.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | On June
                18, 2007, four properties which are part of the Marc Realty portfolio obtained
                first mortgage loans aggregating $56,798,000 with a weighted average interest rate
                of 6.34%. Approximately $4,800,000 of the loan proceeds was used to satisfy a
                portion of the Trusts 7.65% convertible mezzanine loans reducing the
                mezzanine loans held by the Trust with respect to these properties to $5,300,000.
                The Trust holds a 50% participating interest in each of these
                properties.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | On June
                20, 2007, we made a $17,669,000 first mortgage bridge loan collateralized by a
                newly acquired property in the Marc Realty portfolio located at 180 North Michigan
                Avenue, Chicago, Illinois. The loan bears interest at 7.32% per annum, requires
                monthly payments of interest only and matures on June 20, 2008.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | On June
                26, 2007, a property included in our net lease properties commonly referred to as
                the Finova portfolio, obtained a $40,200,000 loan from an unaffiliated third party
                lender. The loan is collateralized by our property located in Orlando, Florida and
                bears interest at 6.4%. The loan requires monthly payments of principal and
                interest and is scheduled to mature on July 1, 2017, at which time the outstanding
                principal balance is expected to be approximately $34,064,000. Approximately
                $40,000,000 of the loan proceeds were used to reduce the Finova portfolios
                existing outstanding mortgage loan balance which carried a higher interest rate and
                the financing reduced our exposure to floating interest rates.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | On June
                26, 2007, we sold in market transactions 793,956 common shares of America First
                Apartment Investors, Inc. (APRO), substantially all shares held by us
                in APRO, for a per share price of $25.02 resulting in net proceeds of approximately
                $19,817,000. The sale generated a gain of approximately $9,739,000 exclusive of
                dividends on such shares.
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | On July
                23, 2007, we entered into agreements with Vision Property Services, LLC
                (Vision), the borrower under the Vision Loan and Vision line of
                credit (the Vision Loans), pursuant to which (i) Vision transferred
                to WRT-Vision Holding (an entity owned by us and Vision) its ownership interests in
                three entities (the Transferred Entities) that own an interest in
                multi-family apartment buildings located in Littleton, Colorado, Overland Park,
                Kansas and Kansas City, Kansas, (ii) our existing joint venture with Vision assumed
                the obligations under the Vision Loans, (iii) the interest rate on the Vision Loans
                was reduced to 12% per annum, and (iv) the operating agreement of our existing
                joint venture with Vision was modified to provide that we are now effectively the
                managing member and that all distributions by such venture after satisfaction of
                the Vision Loans, plus any additional advances made by us Entities plus interest on
                such advances at 15% per annum (theAdditional Advances), are to be
                made 50% to us and 50% to Vision, except for proceeds from the Creekwood investment
                which are allocated 96% to us and 4% to Vision. In addition, Vision has the right
                to acquire from the interest in the Transferred Entities at any time prior to July
                23, 2008 for a purchase price equal to the then outstanding balance of the Vision
                Loans plus the Additional Advances. Due to the high level of uncertainty as to the collectibility of the
Vision Property Services Loan, we have recorded a provision for loan loss of $1,266,000 representing the total loan receivable balance including accrued interest of $16,000 at June 30, 2007.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Since April 1,
        2007, Concord Debt Holdings LLC (Concord), a joint venture in which we hold a
        50% interest, acquired $11,800,000 of a first mortgage loan, $160,708,000 of B-Notes,
        $67,400,000 of bonds and $191,147,000 of mezzanine loans. As of June 30, 2007, we had
        contributed a total of $125,000,000 to Concord.

29



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

Critical
        Accounting Policies and Estimates

A summary of our
        critical accounting policies is included in our Annual Report on Form 10-K for the year
        ended December 31, 2006. There have been no significant changes to those policies during
        2007.

Recently
        Issued Accounting Standards

See Note 2 to the
        Consolidated Financial Statements.

Results of
        Operations

As discussed
        earlier, one of the factors used to measure managements performance is net operating
        income. We report our operations by each of our three strategic business segments to
        provide a measure of our performance in these segments. We define net operating income for
        each segment as that segments revenue and other income less operating expenses. In
        addition to our three business segments, we include in Corporate Activities interest on
        cash reserves, general and administrative expenses and other non-segment specific income
        and expense items. (See Business Segments - Note 16 to the financial statements in Item
        1.)

Net
        Earnings

Net income
        increased by $7,873,000 to $21,477,000 for the six months ended June 30, 2007 from
        $13,604,000 for the six months ended June 30, 2006. As described in greater detail below,
        the increase was due primarily to an increase in other income of $6,117,000, an increase in
        revenue of $3,892,000 and a decrease in minority interest expense of $809,000. These were
        partially offset by an increase in expenses of $2,986,000.

Results of
        Operations - Six Months Ended June 30, 2007 Versus June 30, 2006

Operating
        Properties

Net operating
        income from our Operating Properties increased by $1,045,000 to $16,661,000 for the six
        months ended June 30, 2007 as compared to $15,616,000 for the six months ended June 30,
        2006. The changes in net operating income from our Operating Properties were the result of
        the following:

| |  | rental
                income increased by $2,690,000 to $20,832,000 due to:
| | - | ----------------------------------------------------------------------------

| | - | a
                $1,337,000 increase at our Chicago, Illinois (Ontario) property resulting from a
                $1,123,000 tenant lease buyout in June 2007
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | a
                $885,000 increase at our Lisle, Illinois properties, which were acquired during the
                first quarter of 2006
| | - | -------------------------------------------------------------------------------------------------------------------------------------------

| | - | a
                $490,000 increase at our Jacksonville, Florida property
| | - | -------------------------------------------------------------------------

| | - | the
                receipt of $301,000 of rental revenue from Creekwood Apartments
                (Creekwood), which was acquired at the end of the first quarter of
                2007
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | a
                $353,000 decrease at our Orlando, Florida property due to a lease modification
                effective January 1, 2007
| | - | ------------------------------------------------------------------------------------------------------------------------------------------

| |  | operating
                expenses increased by $517,000 to $2,339,000 due to:
| | - | ------------------------------------------------------------------------------

| | - | a
                $298,000 increase in expenses at our Lisle, Illinois properties
| | - | ---------------------------------------------------------------------------------

| | - | a
                $105,000 increase in expenses at our Chicago, Illinois (Ontario)
                property
| | - | -----------------------------------------------------------------------------------------------------------

| | - | a $27,000
                increase in expenses at our Circle Tower property
| | - | ---------------------------------------------------------------------------

| | - | a
                $112,000 increase in expenses at our Creekwood property
| | - | -------------------------------------------------------------------------

| | - | a $16,000
                decrease in expenses at our Jacksonville, Florida property
| | - | ------------------------------------------------------------------------------------

| |  | real
                estate tax expense increased by $288,000 due to:
| | - | ---------------------------------------------------------------------

| | - | a
                $163,000 increase in expenses at our Lisle, Illinois properties
| | - | ---------------------------------------------------------------------------------

| | - | a
                $104,000 increase in expenses at our Chicago, Illinois (Ontario)
                property
| | - | -----------------------------------------------------------------------------------------------------------

| | - | a $20,000
                increase in expenses at our Creekwood property
| | - | ------------------------------------------------------------------------

| |  | interest
                expense related to our operating properties increased by $65,000 to $7,190,000 for
                the six months ended June 30, 2007 compared to $7,125,000 for the six months ended
                June 30, 2006;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

30



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

| |  | loss on
                extinguishment of debt was $320,000 for the six months ended June 30, 2007 compared
                to $125,000 for the same period in 2006. The loss in 2007 was due to a $40,000,000
                paydown on our Finova debt, and the loss in 2006 was due to the refinancing of
                certain first mortgage debt on more favorable terms;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | depreciation and
                amortization expense relating to our operating properties increased by $473,000 to
                $5,875,000 for the six months ended June 30, 2007 compared to $5,402,000 for the
                six months ended June 30, 2006 as a result of property acquisitions during 2006 and
                2007; and
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | equity in
                loss on our investment in Sealy Northwest Atlanta, L.P., acquired in December 2006,
                and Sealy Airpark Nashville, acquired in April 2007, was $645,000 for the six
                months ended June 30, 2007 as a result of depreciation and amortization exceeding
                net operating income for these properties.
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Loans

Revenue from our
        loans increased by $6,182,000 to $16,368,000 for the six months ended June 30, 2007 from
        $10,186,000 for the six months ended June 30, 2006. The changes in our loan revenues were
        the result of the following:

| |  | equity
                investment in Concord (entered into on March 31, 2006) generated $4,582,000 of
                equity income during the six months ended June 30, 2007 as compared to $749,000 for
                the six months ended June 30, 2006;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | earnings
                from preferred equity investment increased by $4,428,000 to $7,397,000 for the six
                months ended June 30, 2007. The increase was due to the sale in February 2007 of
                one of the properties in the Marc Realty portfolio which generated participation
                income of approximately $4,833,000. This increase was partially offset by a
                decrease in earnings as a result of having a lower investment balance in
                2007;
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | interest
                income of $96,000 from our Vision Property Services loan which was originated in
                December 2006;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------

| |  | provision
                for loss on loan receivable of $1,266,000 recorded on our Vision Property Services
                loan at June 30, 2007;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------

| |  | interest
                income on the Toy Building loan, which was fully satisfied in May 2007, decreased
                by $683,000 during the six months ended June 30, 2007;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | interest
                income decreased by $250,000 on our River City loans which were acquired during the
                first quarter of 2006; and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | interest
                income decreased by $36,000 related to the Ridgebrook loan and $127,000 related to
                the Wingate Inn loan, both of which were fully satisfied during
                2006.
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Interest expense
        related to our loan investments was $3,958,000 for the six months ended June 30, 2007
        compared to $4,036,000 for the six months ended June 30, 2006. The decrease was due
        primarily to a decrease in interest expense of $244,000 related to the borrowings
        collateralized by our Toy Building loan and a decrease in interest of $72,000 on our
        repurchase agreements. This was partially offset by higher interest expense of $238,000
        related to our borrowings collateralized by our River City loans.

Real Estate
        Securities

Income from our
        investments in real estate securities decreased by $652,000 to $12,234,000 for the six
        months ended June 30, 2007 from $12,886,000 for the six months ended June 30, 2006. This
        was due primarily to a decrease in equity in earnings from our investment in Newkirk Realty
        Trust, Inc. (Newkirk) of $3,302,000. During 2006, our investment in Newkirk
        was accounted for using the equity method. However, as a result of Newkirks merger
        with Lexington Realty Trust (Lexington) on December 31, 2006, the shares held
        by us in Newkirk which were subject to forfeiture became fully vested, and we began
        accounting for our investment in Lexington as an available for sale real estate security.
        This resulted in a reduction in income of $1,667,000 for the six months ended June 30,
        2007. These decreases were partially offset by an increase in dividend income of $2,015,000
        primarily due to $2,179,000 of dividend incom e recognized on our investment in Lexington
        and an increase in gain on sale of real estate securities of $2,476,000. The gain on sale
        of real estate securities consists primarily of $9,739,000 from the APRO sale in 2007 and
        $7,219,000 from the sale of Sizeler stock in 2006.

31



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

Corporate
        Activities

Interest income
        earned on our cash and cash equivalents during the six months ended June 30, 2007 was
        $1,867,000 compared to $504,000 for the same period during 2006. The increase was due
        primarily to greater cash and cash equivalents during the six months ended June 30,
        2007.

Interest expense
        decreased by $407,000 to $3,883,000 for the six months ended June 30, 2007 from $4,290,000
        for the six months ended June 30, 2006. The decrease was primarily related to a decrease of
        $404,000 in interest expense incurred on our revolving line of credit because there were no
        outstanding borrowings during the first six months of 2007.

General and
        administrative expenses increased by $611,000 to $3,831,000 for the six months ended June
        30, 2007 from $3,220,000 for the six months ended June 30, 2006. This was primarily due to
        increases in the base management fee of $699,000 as a result of the increase in our
        outstanding equity, partially offset by a decrease in professional fees of $121,000. All
        other general and administrative items remained relatively constant.

State Income
        Taxes

State income
        taxes of $471,000 for the six months ended June 30, 2007 resulted from our anticipated
        taxable income for state purposes after the dividends paid deduction and utilization of net
        operating loss carryforwards where applicable.

Results of
        Operations - Three Months Ended June 30, 2007 Versus June 30,
        2006

Operating
        Properties

Net operating
        income from our operating properties increased by $839,000 to $8,862,000 for the three
        months ended June 30, 2007 as compared to $8,023,000 for the three months ended June 30,
        2006. The changes in net operating income from our operating properties were the result of
        the following:

| |  | rental
                income increased by $1,697,000 to $11,285,000 due to:
| | - | ----------------------------------------------------------------------------

| | - | a
                $1,303,000 increase at our Chicago (Ontario) property resulting from a $1,123,000
                tenant lease buying in June 2007
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------

| | - | a
                $165,000 increase at our Lisle, Illinois properties, which were acquired during the
                first quarter of 2006
| | - | -------------------------------------------------------------------------------------------------------------------------------------------

| | - | a
                $186,000 increase at our Jacksonville, Florida property
| | - | -------------------------------------------------------------------------

| | - | the
                receipt of $296,000 of rental revenue from Creekwood
| | - | ------------------------------------------------------------------------

| | - | a
                $176,000 decrease at our Orlando, Florida property due to a lease modification
                effective January 1, 2007
| | - | ------------------------------------------------------------------------------------------------------------------------------------------

| |  | operating
                expenses increased by $188,000 to $1,176,000 due to:
| | - | ------------------------------------------------------------------------------

| | - | a $42,000
                increase in expenses at our Chicago, Illinois (Ontario) property
| | - | ------------------------------------------------------------------------------------------

| | - | a $35,000
                increase in expenses at our Circle Tower property
| | - | ---------------------------------------------------------------------------

| | - | a
                $112,000 increase in expenses at our Creekwood property
| | - | -------------------------------------------------------------------------

| |  | real
                estate tax expense increased by $146,000 due to:
| | - | ---------------------------------------------------------------------

| | - | a $63,000
                increase in expenses at our Lisle, Illinois properties
| | - | --------------------------------------------------------------------------------

| | - | a $67,000
                increase in expenses at our Chicago, Illinois (Ontario) property
| | - | ------------------------------------------------------------------------------------------

| | - | a $20,000
                increase in expenses at our Creekwood property
| | - | ------------------------------------------------------------------------

| |  | interest
                expense related to our operating properties decreased by $73,000 to $3,656,000 for
                the three months ended June 30, 2007 compared to $3,729,000 for the three months
                ended June 30, 2006;
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | loss on
                extinguishment of debt was $320,000 for the three months ended June 30, 2007
                compared to $276,000 for the same period in 2006. The loss in 2007 was due to a
                $40,000,000 paydown on our Finova debt, and the loss in 2006 was due to the
                refinancing of certain first mortgage debt on more favorable
                terms;
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | depreciation and
                amortization expense relating to our operating properties increased by $392,000 to
                $3,257,000 for the three months ended June 30, 2007 compared to $2,865,000 for the
                three months ended June 30, 2006 as a result of property acquisitions subsequent to
                the first quarter of 2006; and
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

32



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

| |  | equity in
                loss on our investment in Sealy Northwest Atlanta, L.P., acquired in December 2006,
                and Sealy Airpark Nashville, acquired in April 2007, was $480,000 for the three
                months ended June 30, 2007 as a result of depreciation and amortization exceeding
                net operating income for these properties.
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Loans

Revenue from our
        loans decreased by $400,000 to $5,251,000 for the three months ended June 30, 2007 from
        $5,651,000 for the three months ended June 30, 2006. The changes in our loan revenues were
        the result of the following:

| |  | provision
                for loss on loan receivable of $1,266,000 recorded on our Vision Property Services
                loan at June 30, 2007;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------

| |  | interest
                income on the Toy Building loan, which was fully satisfied in May 2007, decreased
                by $786,000 during the three months ended June 30, 2007;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | interest
                income decreased by $338,000 on our River City loans which were acquired during the
                first quarter of 2006;
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------

| |  | earnings
                from preferred equity investment decreased by $243,000 to $1,247,000 for the three
                months ended June 30, 2007; and
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | interest
                income decreased by $59,000 related to the Wingate Inn loan which was fully
                satisfied during 2006.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------

| |  | equity
                investment in Concord (entered into on March 31, 2006) generated $2,825,000 of
                equity income during the three months ended June 30, 2007 as compared to $749,000
                for the three months ended June 30, 2006;
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | interest
                income of $48,000 from our Vision loan which was originated in December
                2006;
| | - | ----------------------------------------------------------------------------------------------------------------------

Interest expense
        related to our loan investments was $1,786,000 for the three months ended June 30, 2007
        compared to $2,134,000 for the three months ended June 30, 2006. The decrease was due
        primarily to a decrease in interest expense of $296,000 related to the borrowings
        collateralized by our Toy Building loan, a decrease of $30,000 on our repurchase agreements
        and a decrease of $21,000 related to our borrowings collateralized by our River City
        loan.

Real Estate
        Securities

Income from our
        investments in real estate securities increased by $7,735,000 to $10,679,000 for the three
        months ended June 30, 2007 from $2,944,000 for the three months ended June 30, 2006. This
        was due primarily to an increase in gain on sale of real estate securities of $9,552,000
        and an increase in dividend income of $891,000 primarily due to $1,089,000 of dividend
        income recognized on our investment in Lexington. These increases were partially offset by
        a decrease in equity in earnings from our investment in Newkirk Realty Trust, Inc.
        (Newkirk) of $1,700,000. During 2006, our investment in Newkirk was accounted
        for using the equity method. However, as a result of Newkirks merger with Lexington
        Realty Trust (Lexington) on December 31, 2006, the shares held by us in
        Newkirk which were subject to forfeiture became fully vested and we began accounting for
        our investment in Lexington as an available for s ale real estate security. This resulted
        in a reduction in income of $834,000 for the three months ended June 30,
        2007.

Corporate
        Activities

Interest income
        earned on our cash and cash equivalents during the three months ended June 30, 2007 was
        $763,000 compared to $275,000 for the same period during 2006. The increase was due
        primarily to greater cash and cash equivalents during the three months ended June 30,
        2007.

Interest expense
        decreased by $178,000 to $1,942,000 for the three months ended June 30, 2007 from
        $2,120,000 for the three months ended June 30, 2006. The decrease was primarily related to
        a decrease of $177,000 in interest expense incurred on our revolving line of credit because
        there were no outstanding borrowings during the three months ended June 30,
        2007.

General and
        administrative expenses increased by $323,000 to $2,024,000 for the three months ended June
        30, 2007 from $1,701,000 for the three months ended June 30, 2006. This was primarily due
        to increases in the base management fee of $366,000 as a result of the increase in our
        outstanding equity, partially offset by a decrease in professional fees of $72,000. All
        other general and administrative items remained relatively constant.

33



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

State Income
        Taxes

State income
        taxes of $231,000 for the three months ended June 30, 2007 resulted from our anticipating
        taxable income for state purposes after the dividends paid deduction and utilization of net
        operating loss carryforwards where applicable.

Liquidity and
        Capital Resources

General

Liquidity is a
        measurement of our ability to meet potential cash requirements, including ongoing
        commitments to repay borrowings, fund and maintain investments and other general business
        needs. We believe that cash flow from operations will continue to provide adequate capital
        to fund our operating and administrative expenses, regular debt service obligations in both
        the short-term and long-term. Additionally, to maintain our status as a REIT under the
        Internal Revenue Code, we must distribute annually at least 90% of our REIT taxable income.
        We anticipate that cash on hand, borrowings under our credit facility and issuance of
        equity and debt, as well as other alternatives, will provide the necessary capital required
        for our investment activities and dividend requirements.

Our primary
        sources of funds for liquidity consist of:

| |  | cash and
                cash equivalents;
| | - | ------------------------------------------

| |  | operating
                cash flow derived primarily from rental income received from our Operating
                Properties;
| | - | --------------------------------------------------------------------------------------------------------------------------------

| |  | debt
                service received from Loans held;
| | - | ------------------------------------------------------

| |  | dividends
                received from our ownership of Real Estate Securities; and
| | - | ------------------------------------------------------------------------------------

| |  | borrowings under our
                credit facility.
| | - | -----------------------------------------------------

We had cash and
        cash equivalents of $72,015,000 at June 30, 2007. In addition, we had $70,000,000 available
        under our revolving line of credit with KeyBank with the ability to increase the line to
        $100,000,000. In the future, we may raise additional funds through other debt financings
        and equity offerings. In January 2007 and April 2007, we issued a total of approximately
        313,000 Common Shares for a gross sales price of approximately $2,085,000 pursuant to our
        Dividend Reinvestment and Stock Purchase Plan.

At June 30, 2007,
        there was an effective registration statement under which we can offer an aggregate of
        approximately $ 228,983,000 of additional equity or debt securities. In addition, our
        UPREIT structure enables us to acquire properties by issuing to sellers, as a form of
        consideration, limited partnership interests in our operating partnership. Although to date
        we have not issued limited partnership interests in a transaction, we believe that this
        structure may facilitate our ability to acquire individual properties and portfolios of
        properties by enabling us to structure transactions which will defer taxes payable by a
        seller while preserving our available cash for other purposes, including investments and
        the possible payment of dividends and distributions.

The recent events
        in the subprime mortgage market may have an impact on Concords ability to consummate
        additional CDOs and/or the pricing of the CDOs. Although Concord does not
        invest in subprime or residential mortgages, conditions in the financial capital markets
        may make issuances of future CDOs less attractive to investors. If Concord is unable
        to issue future CDOs to finance its assets, Concord may be required to seek other
        forms of potentially less attractive financing, and we may be required to make a larger
        equity investment than previously anticipated.

Cash
        Flows

Our level of
        liquidity based upon cash and cash equivalents decreased by approximately $17,448,000
        during the six months ended June 30, 2007. The decrease resulted from $74,605,000 of cash
        used in our financing activities which was partially offset by $17,932,000 of cash provided
        by operating activities and $39,225,000 of cash provided by our investing
        activities.

34



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

Cash provided by
        operating activities of $17,932,000 was comprised of (i) net income of $21,477,000; (ii)
        net decrease due to adjustments for non-cash items of $4,976,000 and (iii) a net increase
        due to changes in other operating assets and liabilities of $1,431,000. See our discussion
        of our Results of Operations above for additional details on our
        operations.

Cash provided by
        investing activities consisted primarily of $64,242,000 of collections of loans receivable,
        $10,000,000 return of capital distribution, $20,277,000 of proceeds received from
        prepayment on our whole pool mortgage-backed securities available for sale and $21,169,000
        of proceeds from the sale of real estate securities. The balance of the increase in cash
        from investing activities related to proceeds from preferred equity investments of
        $10,155,000.

The significant
        components of the cash we used for investing activities during the six months ended June
        30, 2007 were as follows: (i) $43,658,000 for investment in our joint venture, Concord Debt
        Holdings; (ii) $17,669,000 for investment in our preferred equity investment; (iii)
        $8,318,000 for building acquisitions and capital improvements to our existing operating
        properties; (iv) $1,248,000 of an increase in restricted cash held in escrow; (v)
        $9,568,000 invested in equity investments; (vi) $2,986,000 of issuance of new loans
        receivable; and (vii) $3,171,000 of newly purchased securities available for
        sale.

During the six
        months ended June 30, 2007, we used cash primarily for financing activities as follows: (i)
        $11,777,000 for dividend payments on our Common Shares; (ii) $19,869,000 for repayment of
        borrowings under repurchase agreements; (iii) $45,182,000 for mortgage loan repayments;
        (iv) $887,000 of deferred costs; (v) $21,321,000 for distributions to minority interests;
        and (vi) $30,004,000 of repayment of loans.

Cash provided by
        financing activities was the result of $51,646,000 of mortgage loan proceeds, $2,085,000 of
        proceeds from our Dividend Reinvestment Plan and contributions from minority partners of
        $879,000.

Equity
        Investment in Joint Venture

As of June 30,
        2007, we had contributed $125,000,000 to Concord Debt Holdings, $43,658,000 of which was
        contributed during the six months ended June 30, 2007. We also received a return of capital
        distribution of $10,000,000 from the joint venture during the six months ended June 30,
        2007.

Dividends

The following
        table sets forth information for dividends paid per share during the six months ended June
        30, 2007 and 2006:

|Class
                of Security                   |  |  | Quarter Ended
                    March 31, 2007 |         | Quarter Ended June
                    30, 2007 |   | Quarter Ended
                    March 31, 2006 |  | Quarter Ended June
                    30, 2006 |        
|--------------------------------------------------- |  |  | ------------------------------------------------ | ------- | ----------------------------------------------- | - | ------------------------------------------------ |  | ----------------------------------------------- | -------
|                                                    |  |  |                                                  |         |                                                 |   |                                                  |  |                                                 |        
|Common Shares
                (1)                   |  |  | $                                                | 0.12    |                                                 | $ | 0.06                                             |  | $                                               | 0.11   
|Series A Preferred Shares
                (2)       |  |  | $                                                |        |                                                 | $ |                                                 |  | $                                               | 0.525  
|Series B-1 Preferred Shares
                (3) (4) |  |  | $                                                | 0.44792 |                                                 | $ | 0.40625                                          |  | $                                               | 0.40625
|                                                    |  |  |                                                  |         |                                                 |   |                                                  |  |                                                 |        

| | (1) | Dividends
                during the period ended March 31, 2007 consist of regular $.06 quarterly dividend
                and a $.06 special dividend. The dividend for the period ended March 31, 2006
                consists of an $.11 special dividend.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2) | Series A
                Preferred Shares were redeemed in February 2006.
| | --- | -------------------------------------------------------------------------

| | (3) | Dividends
                during the period ended March 31, 2007 consist of regular $.40625 dividend and a
                $.04167 special dividend. The dividend for the period ended March 31, 2006 consists
                of regular $.40625 dividend.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4) | For
                financial statement purposes, the Series B-1 Preferred Shares are classified as
                debt and the dividends are recorded as interest expense.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------

35



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

|ITEM 3. | QUANTITATIVE AND
                QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|------- | --------------------------------------------------------------------------

| | Interest Rate
                    Risk
| | --------------------------------------

| | We
                    have exposure to fluctuations in market interest rates. Market interest rates
                    are highly sensitive to many factors beyond our control. Various financial
                    vehicles exist which would allow management to mitigate the impact of interest
                    rate fluctuations on our cash flow and earnings. Among our liabilities are both
                    fixed and variable rate debt. In an attempt to mitigate the effects of
                    fluctuations in interest rates on the variable rate portion of this debt, we
                    entered into the following agreements: (i) an interest rate swap with a
                    $26,000,000 notional amount that effectively converted the interest rate on
                    that portion of principal of our note payable to KeyBank, with an outstanding
                    balance at June 30, 2007 of $29,495,000, from a floating rate equal to LIBOR
                    plus 1.75% to a fixed rate of 5.80% and (ii) an interest rate swap on our
                    Repurchase Agreements, which bear interest at LIBOR minus 0.003%, effectively
                    fixing our rate at 4.045% on these financings. The notional amount of the swap
                    was $60,838,000 at June 30, 2007.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
                    fair value of our fixed rate debt approximates its carrying value at June 30,
                    2007.
| | -------------------------------------------------------------------------------------------------------------------------------

| | The
                    following table shows what the annual effect a change in the LIBOR rate would
                    have on interest expense based upon the unhedged balances in variable rate
                    loans at June 30, 2007 (in thousands).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                     |  |  | Change in
                    LIBOR |        
|---------------------------------------------------- |  |  | ----------------------------------- | -------
|                                                     |  | 
|                                                     |  |  | -3%                                 |        
|                                                     |  |  |                                     |        
|Change in
                consolidated interest      |  |  |                                     |        
|expense                                              |  |  |                                     | (1,327 
|Pro-rata share of change in
                interest |  | 
|expense of
                debt on non-consolidated  |  | 
|entities                                             |  |  |                                     | (9,699 
|Minority partners
                share              |  |  |                                     | 114    
|                                                     |  |  |                                     |        
|Proforma (increase) decrease
                in net  |  | 
|income                                               |  |  | $                                   | (10,912
|                                                     |  |  |                                     |        

| | We
                    believe that, due to our significant investment in non-consolidated entities,
                    the presentation of our pro-rata share of a change in interest expense from
                    non-consolidated entities (a non-GAAP financial measure) is important to fully
                    understand our exposure to fluctuations in interest rates.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | We
                    may utilize various financial instruments to mitigate the impact of interest
                    rate fluctuations on our cash flows and earnings, including hedging strategies,
                    depending on our analysis of the interest rate environment and the costs and
                    risks of such strategies. In addition, our share of notes and mortgage loans
                    receivable aggregating $424,089,000 as of June 30, 2007, which are based on
                    variable rates partially mitigate our exposure to change in interest rates.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Market Value
                    Risk
| | -------------------------------------

| | Our
                    whole pool agency mortgage-backed securities are carried at their estimated
                    fair value of $96,081,000 at June 30, 2007 with unrealized gains and losses
                    excluded from earnings and reported in Other Comprehensive Income pursuant to
                    SFAS No. 115 Accounting for Certain Investments in Debt and Equity
                    Securities. The estimated fair value of these securities fluctuates
                    primarily due to changes in interest rates and other factors; however, given
                    that these securities are guaranteed as to principal and/or interest by an
                    agency of the U.S. Government, such fluctuations are generally not based on the
                    creditworthiness of the mortgages securing these securities. Generally, in a
                    rising interest rate environment, the estimated fair value of these securities
                    would be expected to decrease; conversely, in a decreasing interest rate
                    environment, the estimated fair value of these securities would be expected to
                    increase.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

36



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

| | Prepayment
                    Risk
| | -----------------------------------

| | As we
                    receive prepayments of principal on the whole pool agency mortgage-backed
                    securities, premiums paid on such securities are amortized against interest
                    income using the effective yield method through the expected maturity dates of
                    the securities. In general, an increase in prepayment rates will accelerate the
                    amortization of purchase premiums, thereby reducing the interest income earned
                    on the securities. The amount subject to prepayment risk at June 30, 2007 was
                    the unamortized premium of $491,000.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|ITEM 4. | CONTROLS AND
                PROCEDURES
|------- | ---------------------------------------

| | We
                    maintain disclosure controls and procedures that are designed to ensure that
                    information required to be disclosed in our reports filed with the Securities
                    and Exchange Commission (SEC) is recorded, processed, summarized and reported
                    within the time periods specified in the SECs rules and forms, and that
                    such information is accumulated and communicated to our management, including
                    its Chief Executive Officer (CEO) and Chief Financial Officer (CFO), as
                    appropriate, to allow timely decisions regarding required disclosure.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | As of
                    June 30, 2007, an evaluation was performed under the supervision and with the
                    participation of our management, including the CEO and CFO, of the
                    effectiveness of the design and operation of our disclosure controls and
                    procedures (as defined in Rules 13a-15(e) under the U.S. Securities Exchange
                    Act of 1934). Based on that evaluation, our management, including the CEO and
                    CFO, concluded that our disclosure controls and procedures were effective as of
                    June 30, 2007.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Other
                    Matters
| | ---------------------------------

| | There
                    have been no changes in our internal controls over financial reporting during
                    the most recent quarter that have materially affected, or are reasonably likely
                    to materially affect, our internal control over financial reporting.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

37



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

PART II.
        OTHER INFORMATION

|ITEM 4. | SUBMISSION OF MATTERS
                TO A VOTE OF SECURITY HOLDERS
|------- | -------------------------------------------------------------------

| | On
                    March 30, 2007, the Trust solicited the vote in connection with its Annual
                    Meeting from its holders of its Common Shares for, among other things, the
                    adoption of the Winthrop Realty Trust 2007 Long Term Stock Incentive Plan (the
                    Plan). The meeting to vote on this matter was held on May 2, 2007
                    at which time the Plan was adopted by the requisite percentage of shareholders.
                    The votes for, against and
                    abstentions were 40,700,405, 2,177,307 and 50,746, respectively
                    .
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|ITEM 6. | EXHIBITS
|------- | --------

| | Exhibits required by
                    Item 601 of Regulation S-K are filed herewith or incorporated herein by
                    reference and are listed in the attached Exhibit Index.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

38



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

SIGNATURES

Pursuant to the
        requirements of the Securities Exchange Act of 1934, the Trust has duly caused this report
        to be signed on its behalf by the undersigned thereunto duly authorized.

|                                     | Winthrop Realty
                Trust |                                        
|------------------------------------ | ------------------------------------- | ---------------------------------------
|                                     |                                       |                                        
|Date: August
                9, 2007 | By:                                   | /s/ Michael L.
                Ashner  
|                                     |                                       |                                        
|                                     |                                       | Michael L.
                Ashner      
|                                     |                                       | Chief Executive
                Officer
|                                     |                                       |                                        
|                                     |                                       |                                        
|Date: August 9,
                2007 | By:                                   | /s/ Thomas C.
                Staples  
|                                     |                                       |                                        
|                                     |                                       | Thomas C.
                Staples      
|                                     |                                       | Chief Financial
                Officer



39



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

EXHIBIT
        INDEX

|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|------- |  | ----------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---
|Exhibit |  | Description |  | Page
                Number                                                                                                                                                                                                                                                                                                               
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|1.1     |  |             |  | Underwriting Agreement,
                dated October 30, 2006 among the Trust, WRT Realty, L.P., FUR Advisors LLC and
                Bear, Stearns & Co., Inc., as Representative of the several Underwriters named
                in Schedule I attached thereto                                                                       |  | (u)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|3.1     |  |             |  | Amended and Restated
                Declaration of Trust as of December 15, 2005.                                                                                                                                                                                                                                                         |  | (n)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|3.2     |  |             |  | Bylaws of the Trust as
                restated on November 8, 2005.                                                                                                                                                                                                                                                                       |  | (l)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|3.3     |  |             |  | Amendment to Bylaws adopted
                January 19, 2007                                                                                                                                                                                                                                                                               |  | (s)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|3.4     |  |             |  | Amendment to Bylaws adopted
                February 27, 2007                                                                                                                                                                                                                                                                              |  | (t)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|4.1     |  |             |  | Form of certificate for
                Shares of Beneficial Interest.                                                                                                                                                                                                                                                                     |  | (b)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|4.2     |  |             |  | Warrant to purchase 500,000
                shares of Beneficial Interest of Trust.                                                                                                                                                                                                                                                        |  | (a)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|4.3     |  |             |  | Agreement of Limited
                Partnership of First Union REIT L.P., dated as of January 1, 2005.                                                                                                                                                                                                                                    |  | (g)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|4.4     |  |             |  | Amended and Restated
                Certificate of Designations for Series B-1 Cumulative Convertible Redeemable
                Preferred Shares of Beneficial Interest.                                                                                                                                                                 |  | (k)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|10.1    |  |             |  | 1999 Trustee Share Option
                Plan.                                                                                                                                                                                                                                                                                            |  | (c)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|10.2    |  |             |  | 1999 Long Term Incentive
                Performance Plan.                                                                                                                                                                                                                                                                                 |  | (c)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|10.3    |  |             |  | Indemnification Agreement
                with Neil Koenig, dated as of April 29, 2002.                                                                                                                                                                                                                                                    |  | (d)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|10.4    |  |             |  | Stock Purchase Agreement
                between the Trust and FUR Investors, LLC, dated as of November 26, 2003
                (Stock Purchase Agreement), including Annex A thereto, being the list
                of Conditions to the Offer.                                                                                       |  | (e)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|10.5    |  |             |  | Amended and Restated
                Advisory Agreement dated November 7, 2005, between the Trust and FUR Advisors
                LLC.                                                                                                                                                                                                    |  | (l)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|10.6    |  |             |  | Amendment No. 1 to Amended
                and Restated Advisory Agreement dated May 17, 2006, between the Trust and FUR
                Advisors.                                                                                                                                                                                         |  | (r)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|10.7    |  |             |  | Exclusivity Services
                Agreement between the Trust and Michael L. Ashner.                                                                                                                                                                                                                                                    |  | (e)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|10.8    |  |             |  | Amendment No. 1 to
                Exclusivity Agreement, dated November 7, 2005.                                                                                                                                                                                                                                                          |  | (l)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|10.9    |  |             |  | Covenant Agreement between
                the Trust and FUR Investors, LLC.                                                                                                                                                                                                                                                               |  | (e)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|10.10   |  |             |  | Loan Agreement, dated
                November 18, 2004, among FT-Fin Acquisition LLC, Keybank National Association,
                Newstar CP Funding LLC, Keybank National Association, as agent for itself and such
                other lending institutions, and Keybanc Capital Markets, as the
                Arranger.          |  | (f)
|        |  |             |  |                                                                                                                                                                                                                                                                                                                                            |  |    
|10.11   |  |             |  | Loan Modification Agreement,
                dated June 30, 2006, among FT-Fin Acquisition LLC, Keybank National Association,
                Newstar CP Funding LLC, Keybank National Association, as agent for itself and such
                other lending institutions, and Keybank Capital Markets, as the
                Arranger. |  | (r)

40



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|----- |  |  |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---
|10.12 |  |  |  | Form of Mortgage, dated
                November 18, 2004, in favor of Keybank National Association.                                                                                                                                              |  | (f)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.13 |  |  |  | Ownership Interest Pledge
                Agreement, dated November 18, 2004, from FT-Fin Acquisition LLC to Keybank National
                Association.                                                                                        |  | (f)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.14 |  |  |  | Guaranty, dated as of
                November 18, 2004, by First Union Real Estate Equity and Mortgage Investments in
                favor of Keybank National Association, as the agent.                                                       |  | (f)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.15 |  |  |  | Indemnity Regarding
                Hazardous Materials, dated as of November 18, 2004, by First Union Real Estate
                Equity and Mortgage Investments in favor of Keybank National Association, as the
                agent.        |  | (f)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.16 |  |  |  | Amended and Restated Omnibus
                Agreement, dated March 16, 2005, among Gerald Nudo, Laurence Weiner and First Union
                REIT L.P.                                                                                        |  | (h)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.17 |  |  |  | Securities Purchase
                Agreement, dated February 16, 2005, between First Union Real Estate Equity and
                Mortgage Investments and Kimco Realty Corporation.                                                             |  | (i)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.18 |  |  |  | Securities Purchase
                Agreement, dated February 25, 2005, between First Union Real Estate Equity and
                Mortgage Investments, Perrin Holden & Davenport Capital Corp. and the Investors
                named therein. |  | (j)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.19 |  |  |  | Securities Purchase
                Agreement, dated June 15, 2005, between First Union Real Estate Equity and Mortgage
                Investments, Perrin Holden & Davenport Capital Corp. and the Investors named
                therein.     |  | (k)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.20 |  |  |  | Amended and Restated
                Registration Rights Agreement, dated June 20, 2005, between First Union Real Estate
                Equity and Mortgage Investments and the Investors named therein.                                         |  | (k)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.21 |  |  |  | Amended and Restated
                Investor Rights Agreement, dated June 20, 2005, between First Union Real Estate
                Equity and Mortgage Investments and the Investors named therein.                                             |  | (k)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.22 |  |  |  | Securities Purchase
                Agreement, dated November 7, 2005, between the Trust and Vornado Investments L.L.C.
                (Vornado).                                                                                              |  | (l)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.23 |  |  |  | Registration Rights
                Agreement, dated November 7, 2005, between the Trust and Vornado.                                                                                                                                             |  | (l)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.24 |  |  |  | Securities Purchase
                Agreement, dated November 7, 2005, between Newkirk Realty Trust, Inc. and the
                Trust.                                                                                                          |  | (l)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.25 |  |  |  | Acquisition Agreement, dated
                November 7, 2005, between Newkirk Realty Trust, Inc. and the Trust.                                                                                                                                  |  | (l)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.26 |  |  |  | Registration Rights
                Agreement, dated November 7, 2005, between Newkirk Realty Trust,                                                                                                                                              |  | (l)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.27 |  |  |  | Joinder Agreement with
                respect to the Securities Purchase Agreement, dated November 7, 2005, by and among
                the Trust, Newkirk Realty Trust, Inc. and The Newkirk Master Limited
                Partnership.       |  | (l)
|      |  |  |  |                                                                                                                                                                                                                                                   |  |    
|10.28 |  |  |  | Undertaking, dated November
                7, 2005, by FUR Holdings LLC and FUR Advisors for the benefit of the
                Trust.                                                                                                           |  | (l)

41



---

WINTHROP
        REALTY TRUST
        FORM 10-Q JUNE 30, 2007

|      |  |  |  |                                                                                                                                                                                                          |  |    
|----- |  |  |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---
|10.29 |  |  |  | Loan Agreement, dated as of
                December 16, 2005, between WRT Realty L.P. and KeyBank, National
                Association.                                                                |  | (m)
|      |  |  |  |                                                                                                                                                                                                          |  |    
|10.30 |  |  |  | Guaranty from Winthrop
                Realty Trust in favor of KeyBank, National Association.                                                                                                           |  | (m)
|      |  |  |  |                                                                                                                                                                                                          |  |    
|10.31 |  |  |  | Limited Liability Company
                Agreement of 111 Debt Holdings LLC, dated March 31, 2006, among The Newkirk Master
                Limited Partnership, WRT Realty, L.P. and FUR Holdings LLC. |  | (o)
|      |  |  |  |                                                                                                                                                                                                          |  |    
|10.32 |  |  |  | Master Repurchase Agreement,
                dated March 30, 2006, among Column Financial Inc., 111 Debt Acquisition LLC, 111
                Debt Acquisition Mezz LLC and Newkirk Realty Trust, Inc.   |  | (o)
|      |  |  |  |                                                                                                                                                                                                          |  |    
|10.33 |  |  |  | Master Repurchase Agreement,
                dated May 24, 2006, between Bear, Stearns International Limited and 111 Debt
                Acquisition-Two LLC.                                           |  | (p)
|      |  |  |  |                                                                                                                                                                                                          |  |    
|10.34 |  |  |  | Agreement between Michael L.
                Ashner and Winthrop Realty Trust dated July 23, 2006.                                                                                                       |  | (q)
|      |  |  |  |                                                                                                                                                                                                          |  |    
|10.35 |  |  |  | Winthrop Realty Trust 2007
                Long Term Stock Incentive Plan.                                                                                                                               |  | (v)
|      |  |  |  |                                                                                                                                                                                                          |  |    
|31    |  |  |  | Certifications Pursuant to
                Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                |  | *  
|      |  |  |  |                                                                                                                                                                                                          |  |    
|32    |  |  |  | Certification Pursuant to
                Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                 |  | *  

* filed herewith

|(a) | Incorporated by reference
                to the Trusts 1998 Form 10-K
|--- | -----------------------------------------------------------------------

|(b) | Incorporated by reference
                to the Trusts Registration Statement on Form S-3 No.
                33-2818
|--- | -----------------------------------------------------------------------------------------------------------------------

|(c) | Incorporated by reference
                to the Trusts 1999 Proxy Statement for Special Meeting held May 17, 1999 in
                lieu of Annual Meeting
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Incorporated by reference
                to the Trusts 2002 Form 10-K
|--- | -----------------------------------------------------------------------

|(e) | Incorporated by reference
                to the Trusts Form 8-K dated November 26, 2003
|--- | -----------------------------------------------------------------------------------------

|(f) | Incorporated by reference
                to the Trusts Form 8-K dated November 18, 2004
|--- | -----------------------------------------------------------------------------------------

|(g) | Incorporated by reference
                to the Trusts Form 8-K dated January 1, 2004
|--- | ---------------------------------------------------------------------------------------

|(h) | Incorporated by reference
                to the Trusts Form 8-K dated March 18, 2005
|--- | --------------------------------------------------------------------------------------

|(i) | Incorporated by reference
                to the Trusts Form 8-K dated February 17, 2005
|--- | -----------------------------------------------------------------------------------------

|(j) | Incorporated by reference
                to the Trusts Form 8-K dated March 2, 2005
|--- | -------------------------------------------------------------------------------------

|(k) | Incorporated by reference
                to the Trusts Form 8-K dated June 21, 2005
|--- | -------------------------------------------------------------------------------------

|(l) | Incorporated by reference
                to the Trusts Form 8-K dated November 10, 2005
|--- | -----------------------------------------------------------------------------------------

|(m) | Incorporated by reference
                to the Trusts Form 8-K dated December 21, 2005
|--- | -----------------------------------------------------------------------------------------

|(n) | Incorporated by reference
                to the Trusts 2005 Form 10-K
|--- | -----------------------------------------------------------------------

|(o) | Incorporated by reference
                to the Trusts Form 8-K dated April 4, 2006
|--- | -------------------------------------------------------------------------------------

|(p) | Incorporated by reference
                to the Trusts Form 8-K dated May 30, 2006
|--- | ------------------------------------------------------------------------------------

|(q) | Incorporated by reference
                to the Trusts Form 8-K dated July 25, 2006
|--- | -------------------------------------------------------------------------------------

|(r) | Incorporated by reference
                to the Trusts Quarterly report on Form 10-Q for the period ended June 30,
                2006
|--- | -----------------------------------------------------------------------------------------------------------------------------------------

|(s) | Incorporated by reference
                to the Trusts Form 8-K dated January 16, 2007
|--- | ----------------------------------------------------------------------------------------

|(t) | Incorporated by reference
                to the Trusts Form 8-K dated March 2, 2007
|--- | -------------------------------------------------------------------------------------

|(u) | Incorporated by reference
                to the Trusts Form 8-K dated November 2, 2006
|--- | ----------------------------------------------------------------------------------------

|(v) | Incorporated by reference
                to the Trusts Definitive Proxy Statement on Schedule 14A filed with the
                Securities and Exchange Commission on March 30, 2007
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

42