**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**

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

**WINTHROP      REALTY TRUST **

| 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)                           |

| Large                accelerated filer   ̈ | Accelerated                filer  x              |
|-----------------------------------------------------|-------------------------------------------------------|
| Non-accelerated                filer   ̈   | Smaller                reporting company   ̈ |

----

|                           |                                                                                                                                                                                 |   | Page   |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Part                  I.       | Financial                  Information                                                                                                                                               |   |   |
|                           |                                                                                                                                                                                 |   |   |
| Item                  1.       | Financial                  Statements (Unaudited):                                                                                                                                   |   |   |
|                           |                                                                                                                                                                                 |   |   |
|                           | Consolidated                  Balance Sheets as of June 30, 2008 and December 31, 2007                                                                                               |   | 3      |
|                           |                                                                                                                                                                                 |   |   |
|                           | Consolidated                  Statements of Operations and Comprehensive Income for the Three                  and Six                  Months Ended June 30, 2008 and June 30, 2007 |   | 4      |
|                           |                                                                                                                                                                                 |   |   |
|                           | Consolidated                  Statement of Shareholders’ Equity for the Six Months Ended June 30,                  2008                                                        |   | 5      |
|                           |                                                                                                                                                                                 |   |   |
|                           | Consolidated                  Statements of Cash Flows for the Six Months Ended June 30, 2008                  and June                  30, 2007                                    |   | 6      |
|                           |                                                                                                                                                                                 |   |   |
|                           | Notes                  to Consolidated Financial Statements                                                                                                                          |   | 8      |
|                           |                                                                                                                                                                                 |   |   |
| Item                  2.       | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations                                                        |   | 25     |
|                           |                                                                                                                                                                                 |   |   |
| Item                  3.       | Quantitative                  and Qualitative Disclosure about Market Risk                                                                                                           |   | 42     |
|                           |                                                                                                                                                                                 |   |   |
| Item                  4.       | Controls                  and Procedures                                                                                                                                             |   | 43     |
|                           |                                                                                                                                                                                 |   |   |
| Part                  II.      | Other                  Information                                                                                                                                                   |   |   |
|                           |                                                                                                                                                                                 |   |   |
| Item                  4.       | Submission                  of Matters to a Vote of Security Holders                                                                                                                 |   | 44     |
|                           |                                                                                                                                                                                 |   |   |
| Item                  6.       | Exhibits                                                                                                                                                                             |   | 44     |
|                           |                                                                                                                                                                                 |   |   |
| Signatures                     |                                                                                                                                                                                 |   | 45     |
|                           |                                                                                                                                                                                 |   |   |
| Exhibit                  Index |                                                                                                                                                                                 |   | 46     |

----

**Item      1. Financial Information**

| **WINTHROP                REALTY TRUST**                                      |
|-------------------------------------------------------------------------------|
| **FORM                10-Q - JUNE 30, 2008**                                  |
|                                                                          |
| **CONSOLIDATED                BALANCE SHEETS**                                |
|                                                                          |
| **(Unaudited)**                                                               |
| (In                thousands, except share and per share                data) |

|                                                                                                                                                                                                                                                                                                                  |   | **June 30, 2008** |     | **December 31, 2007** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|----------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |
| **ASSETS**                                                                                                                                                                                                                                                                                                            |   |                        |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| Investments                in real estate, at cost                                                                                                                                                                                                                                                                    |   |                        |     |                            |   |   |   |
| Land                                                                                                                                                                                                                                                                                                                  |   | $                           | 21,344   |                            | $      | 21,325 |   |
| Buildings                and improvements                                                                                                                                                                                                                                                                             |   |                        | 246,553  |                            |   | 244,965 |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        | 267,897  |                            |   | 266,290 |   |
| Less                - accumulated depreciation                                                                                                                                                                                                                                                                        |   |                        | (22,515  | )                               |   | (19,214 | ) |
| Investments                in real estate, net                                                                                                                                                                                                                                                                        |   |                        | 245,382  |                            |   | 247,076 |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| Cash                and cash equivalents                                                                                                                                                                                                                                                                              |   |                        | 135,320  |                            |   | 36,654 |   |
| Restricted                cash held in escrows                                                                                                                                                                                                                                                                        |   |                        | 5,989    |                            |   | 5,978 |   |
| Mortgage-backed                securities available for sale pledged under repurchase agreements                                                                                                                                                                                                                      |   |                        | -        |                            |   | 78,141 |   |
| Loans                receivable, net of reserve of $1,266 and $1,266,                respectively                                                                                                                                                                                                                     |   |                        | 16,255   |                            |   | 12,496 |   |
| Accounts                receivable, net of reserve of $131 and $163, respectively                                                                                                                                                                                                                                     |   |                        | 10,312   |                            |   | 20,835 |   |
| Available                for sale securities                                                                                                                                                                                                                                                                          |   |                        | 1,065    |                            |   | 51,804 |   |
| Preferred                equity investment                                                                                                                                                                                                                                                                            |   |                        | 56,218   |                            |   | 74,573 |   |
| Equity                investments                                                                                                                                                                                                                                                                                     |   |                        | 164,350  |                            |   | 179,475 |   |
| Lease                intangibles, net                                                                                                                                                                                                                                                                                 |   |                        | 28,954   |                            |   | 31,964 |   |
| Deferred                financing costs, net                                                                                                                                                                                                                                                                          |   |                        | 4,225    |                            |   | 5,309 |   |
| Assets                of discontinued operations                                                                                                                                                                                                                                                                      |   |                        | 1,089    |                            |   | 1,112 |   |
| Other                assets                                                                                                                                                                                                                                                                                           |   |                        | 399      |                            |   | 30 |   |
| TOTAL                ASSETS                                                                                                                                                                                                                                                                                           |   | $                           | 669,558  |                            | $      | 745,447 |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| **LIABILITIES**                                                                                                                                                                                                                                                                                                       |   |                        |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| Mortgage                loans payable                                                                                                                                                                                                                                                                                 |   | $                           | 235,128  |                            | $      | 236,925 |   |
| Repurchase                agreements                                                                                                                                                                                                                                                                                  |   |                        | -        |                            |   | 75,175 |   |
| Series                B-1 Cumulative Convertible Redeemable Preferred Shares of Beneficial                Interest, $25 per share liquidating preference, 3,450,657 and 3,930,657                shares authorized and outstanding at June 30, 2008 and December 31,                2007,                respectively |   |                        | 86,266   |                            |   | 98,266 |   |
| Accounts                payable and accrued liabilities                                                                                                                                                                                                                                                               |   |                        | 8,351    |                            |   | 12,046 |   |
| Dividends                payable                                                                                                                                                                                                                                                                                      |   |                        | 5,091    |                            |   | 16,242 |   |
| Below                market lease intangibles, net                                                                                                                                                                                                                                                                    |   |                        | 4,357    |                            |   | 5,021 |   |
| Deferred                income                                                                                                                                                                                                                                                                                        |   |                        | 824      |                            |   | - |   |
| TOTAL                LIABILITIES                                                                                                                                                                                                                                                                                      |   |                        | 340,017  |                            |   | 443,675 |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| **COMMITMENTS                AND CONTINGENCIES**                                                                                                                                                                                                                                                                      |   |                        |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| **MINORITY                INTEREST**                                                                                                                                                                                                                                                                                  |   |                        | 10,064   |                            |   | 9,978 |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| **SHAREHOLDERS'                EQUITY**                                                                                                                                                                                                                                                                               |   |                        |     |                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| Common                Shares of Beneficial Interest, $1 par, unlimited authorized, 78,330,208                and 66,291,837 outstanding at June 30, 2008 and December 31, 2007,                respectively                                                                                                           |   |                        | 78,330   |                            |   | 66,292 |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| Additional                paid-in capital                                                                                                                                                                                                                                                                             |   |                        | 397,189  |                            |   | 358,145 |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| Accumulated                other comprehensive loss                                                                                                                                                                                                                                                                   |   |                        | (4,236   | )                               |   | (8,090 | ) |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| Accumulated                distributions in excess of net income                                                                                                                                                                                                                                                      |   |                        | (151,806 | )                               |   | (124,553 | ) |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |  |   |
| Total                Shareholders' Equity                                                                                                                                                                                                                                                                             |   |                        | 319,477  |                            |   | 291,794 |   |
|                                                                                                                                                                                                                                                                                                                  |   |                        |     |                            |   |   |   |
| TOTAL                LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                                                                                                                                                                             |   | $                           | 669,558  |                            | $      | 745,447 |   |

----

| **WINTHROP                REALTY TRUST**                     |
|--------------------------------------------------------------|
| **FORM                10-Q - JUNE 30, 2008**                 |
|                                                         |
| **CONSOLIDATED                STATEMENTS OF OPERATIONS AND** |
| **COMPREHENSIVE                INCOME**                      |
| **(Unaudited)**                                              |
|                                                         |
| (In                thousands, except per share data)         |
|                                                              |

|                                                                                                                                   |   | **For the Three Months Ended** |    | **For the Six Months Ended** |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------|---------|--------------------------------------------------|--------|
|                                                                                                                                   |   | **June 30,**                                  |    | **June 30,**                                |   |
|                                                                                                                                   |   | **2008**                                           |    | **2007**                                         |   | **2008** |   | **2007** |   |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |
| **Revenue**                                                                                                                            |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| Rents                and reimbursements                                                                                                |   | $                                                  | 10,987  |                                             | $      | 11,285 |   | $ | 21,651 |   | $ | 20,832 |   |
| Interest                and dividends                                                                                                  |   |                                               | 350     |                                             |   | 3,559 |   |   | 883 |   |   | 7,922 |   |
|                                                                                                                                   |   |                                               | 11,337  |                                             |   | 14,844 |   |   | 22,534 |   |   | 28,754 |   |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| **Expenses**                                                                                                                           |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| Property                operating                                                                                                      |   |                                               | 1,802   |                                             |   | 1,176 |   |   | 3,669 |   |   | 2,339 |   |
| Real                estate taxes                                                                                                       |   |                                               | 675     |                                             |   | 447 |   |   | 1,414 |   |   | 867 |   |
| Depreciation                and amortization                                                                                           |   |                                               | 2,992   |                                             |   | 3,257 |   |   | 6,057 |   |   | 5,875 |   |
| Interest                                                                                                                               |   |                                               | 5,390   |                                             |   | 7,384 |   |   | 11,221 |   |   | 15,031 |   |
| Provision                for loss on loan receivable                                                                                   |   |                                               | -       |                                             |   | 1,266 |   |   | - |   |   | 1,266 |   |
| Impairment                loss on available for sale securities                                                                        |   |                                               | 107     |                                             |   | - |   |   | 207 |   |   | - |   |
| General                and administrative                                                                                              |   |                                               | 1,482   |                                             |   | 2,024 |   |   | 3,553 |   |   | 3,831 |   |
| State                and local taxes                                                                                                   |   |                                               | 98      |                                             |   | 231 |   |   | 222 |   |   | 471 |   |
|                                                                                                                                   |   |                                               | 12,546  |                                             |   | 15,785 |   |   | 26,343 |   |   | 29,680 |   |
| **Other                income**                                                                                                        |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| Earnings                (loss) from preferred equity investments                                                                       |   |                                               | (912    | )                                                |   | 1,247 |   |   | 1,418 |   |   | 7,397 |   |
| Equity                in earnings (loss) of equity investments                                                                         |   |                                               | (22,333 | )                                                |   | 2,171 |   |   | (18,521 | ) |   | 3,763 |   |
| Gain                on sale of available for sale securities                                                                           |   |                                               | -       |                                             |   | 9,739 |   |   | 2,029 |   |   | 9,982 |   |
| Gain                on sale of mortgage-backed securities available for sale                                                           |   |                                               | -       |                                             |   | - |   |   | 454 |   |   | - |   |
| Loss                on early extinguishment of debt                                                                                    |   |                                               | -       |                                             |   | (320 | ) |   | - |   |   | (320 | ) |
| Interest                income                                                                                                         |   |                                               | 436     |                                             |   | 763 |   |   | 664 |   |   | 2,026 |   |
|                                                                                                                                   |   |                                               | (22,809 | )                                                |   | 13,600 |   |   | (13,956 | ) |   | 22,848 |   |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| **Income                  (loss) from continuing operations before** **minority                  interest**                       |   |                                               | (24,018 | )                                                |   | 12,659 |   |   | (17,765 | ) |   | 21,922 |   |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| Minority                interest                                                                                                       |   |                                               | 86      |                                             |   | (71 | ) |   | 86 |   |   | 542 |   |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| **Income                (loss) from continuing operations**                                                                            |   |                                               | (24,104 | )                                                |   | 12,730 |   |   | (17,851 | ) |   | 21,380 |   |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| **Discontinued                operations**                                                                                             |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations                                                                                     |   |                                               | 47      |                                             |   | 46 |   |   | 106 |   |   | 97 |   |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| **Net                income (loss)**                                                                                                   |   | $                                                  | (24,057 | )                                                | $      | 12,776 |   | $ | (17,745 | ) | $ | 21,477 |   |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| **Comprehensive                income**                                                                                                |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                                                                                       |   | $                                                  | (24,057 | )                                                | $      | 12,776 |   | $ | (17,745 | ) | $ | 21,477 |   |
| Change                in unrealized gain on available for sale securities arising during                the                period      |   |                                               | 89      |                                             |   | 2,540 |   |   | 2,112 |   |   | 139 |   |
| Change                  in unrealized gain on mortgage-backed securities available for                  sale arising during the period |   |                                               | -       |                                             |   | 62 |   |   | 190 |   |   | 665 |   |
| Change                in unrealized gain (loss) on interest rate derivatives arising during                the                period   |   |                                               | 401     |                                             |   | 157 |   |   | (250 | ) |   | (243 | ) |
| Change                in unrealized gain (loss) from equity investments                                                                |   |                                               | 13,920  |                                             |   | 1,070 |   |   | 4,285 |   |   | 1,070 |   |
| Less                reclassification adjustment from gains                                                                             |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| included                in net income                                                                                                  |   |                                               | -       |                                             |   | (9,739 | ) |   | (2,483 | ) |   | (9,982 | ) |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| Comprehensive                income (loss)                                                                                             |   | $                                                  | (9,647  | )                                                | $      | 6,866 |   | $ | (13,891 | ) | $ | 13,126 |   |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| **Per                Common Share data - Basic**                                                                                       |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations                                                                                |   | $                                                  | (0.33   | )                                                | $      | 0.16 |   | $ | (0.25 | ) | $ | 0.28 |   |
| Income                from discontinued operations                                                                                     |   |                                               | -       |                                             |   | - |   |   | - |   |   | - |   |
| Net                income (loss)                                                                                                       |   | $                                                  | (0.33   | )                                                | $      | 0.16 |   | $ | (0.25 | ) | $ | 0.28 |   |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| **Per                Common Share data - Diluted**                                                                                     |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations                                                                                |   | $                                                  | (0.33   | )                                                | $      | 0.16 |   | $ | (0.25 | ) | $ | 0.28 |   |
| Income                from discontinued operations                                                                                     |   |                                               | -       |                                             |   | - |   |   | - |   |   | - |   |
| Net                income (loss)                                                                                                       |   | $                                                  | (0.33   | )                                                | $      | 0.16 |   | $ | (0.25 | ) | $ | 0.28 |   |
|                                                                                                                                   |   |                                               |    |                                             |   |   |   |   |   |   |   |   |   |
| **Basic                Weighted-Average Common Shares**                                                                                |   |                                               | 72,819  |                                             |   | 65,661 |   |   | 69,950 |   |   | 65,590 |   |
| **Diluted                Weighted-Average Common Shares**                                                                              |   |                                               | 72,819  |                                             |   | 65,727 |   |   | 69,950 |   |   | 65,656 |   |

----

| **WINTHROP                REALTY TRUST**                          |
|-------------------------------------------------------------------|
| **FORM                10-Q - JUNE 30, 2008**                      |
|                                                              |
| **CONSOLIDATED                STATEMENT OF SHAREHOLDERS' EQUITY** |
| **(Unaudited)**                                                   |
|                                                              |
| (In                thousands)                                     |

|                                                                                                                                                                                                     |   |                             |   |          |   | Accumulated            |   | Accumulated     |    |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|---------------|--------|------------------------|--------|-----------------|---------|--------|--------|
|                                                                                                                                                                                                     |   | Common Shares               |   | Additional    |   | Distributions          |   | Other      |    |   |   |
|                                                                                                                                                                                                     |   | of Beneficial Interest |   | Paid-In  |   | In Excess of |   | Comprehensive   |    |   |   |
|                                                                                                                                                                                                     |   | Shares                           |   | Amount        |   | Capital                |   | Net Income |    | Income |   | Total |   |
|                                                                                                                                                                                                     |   |                             |   |          |   |                   |   |            |    |   |   |   |   |
| Balance,                December 31, 2007                                                                                                                                                                |   |                             | 66,292 |          | $      | 66,292                 |   | $               | 358,145 |   | $      | (124,553 | ) | $ | (8,090 | ) | $ | 291,794 |   |
|                                                                                                                                                                                                     |   |                             |   |          |   |                   |   |            |    |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                                                                                                                                                                  |   |                             | -      |          |   | -                      |   |            | -       |   |   | (17,745 | ) |   | - |   |   | (17,745 | ) |
| Dividends                paid or accrued on common shares of beneficial interest ($0.13 per                share)                                                                                        |   |                             | -      |          |   | -                      |   |            | -       |   |   | (9,508 | ) |   | - |   |   | (9,508 | ) |
| Change                in unrealized gain on available for sale securities, net of                reclassification adjustment for amounts included in net                income                           |   |                             | -      |          |   | -                      |   |            | -       |   |   | - |   |   | 83 |   |   | 83 |   |
| Change                in unrealized gain on mortgage-backed securities held for sale, net                of                reclassification adjustment for amounts included in net                income |   |                             | -      |          |   | -                      |   |            | -       |   |   | - |   |   | (264 | ) |   | (264 | ) |
| Change                in unrealized loss on interest rate derivatives                                                                                                                                    |   |                             | -      |          |   | -                      |   |            | -       |   |   | - |   |   | (250 | ) |   | (250 | ) |
| Change                in unrealized loss from equity investments                                                                                                                                         |   |                             | -      |          |   | -                      |   |            | -       |   |   | - |   |   | 4,285 |   |   | 4,285 |   |
| Stock                issued pursuant to dividend reinvestment plan                                                                                                                                       |   |                             | 526    |          |   | 526                    |   |            | 1,951   |   |   | - |   |   | - |   |   | 2,477 |   |
| Conversion                of Series B-1 preferred shares to common shares                                                                                                                                |   |                             | 2,667  |          |   | 2,667                  |   |            | 8,936   |   |   | - |   |   | - |   |   | 11,603 |   |
| Issuance                of common shares through rights offering                                                                                                                                         |   |                             | 8,845  |          |   | 8,845                  |   |            | 28,157  |   |   | - |   |   | - |   |   | 37,002 |   |
|                                                                                                                                                                                                     |   |                             |   |          |   |                   |   |            |    |   |   |   |   |   |   |   |   |   |   |
| Balance,                June 30, 2008                                                                                                                                                                    |   |                             | 78,330 |          | $      | 78,330                 |   | $               | 397,189 |   | $      | (151,806 | ) | $ | (4,236 | ) | $ | 319,477 |   |

----

| **WINTHROP                REALTY TRUST**                 |
|----------------------------------------------------------|
| **FORM                10-Q - JUNE 30, 2008**             |
|                                                     |
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS** |
| **(Unaudited)**                                          |
| (In                thousands)                            |

|                                                                                                                       |   | **For the Six Months Ended** |    |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                                                                       |   | **June 30**                                 |    |
|                                                                                                                       |   | **2008**                                         |    | **2007** |   |
| **Cash flows                from operating activities**                                                               |   |                                             |    |   |   |   |   |
| Net                income (loss)                                                                                           |   | $                                                | (17,745 | ) | $ | 21,477 |   |
| Adjustments                to reconcile net income (loss) to net cash provided by operating                activities |   |                                             |    |   |   |   |   |
| Depreciation                and amortization (including amortization of deferred financing                costs)           |   |                                             | 4,025   |   |   | 3,997 |   |
| Amortization                of lease intangibles                                                                           |   |                                             | 2,829   |   |   | 2,802 |   |
| Straight-lining                of rental income                                                                            |   |                                             | 372     |   |   | 317 |   |
| Earnings                of preferred equity investments less than distributions                                            |   |                                             | 2,099   |   |   | 75 |   |
| Earnings                of equity investments less than (in excess of)                distributions                        |   |                                             | 24,497  |   |   | (3,763 | ) |
| Restricted                cash held in escrows                                                                             |   |                                             | (65     | ) |   | (851 | ) |
| Minority                interest                                                                                           |   |                                             | 86      |   |   | 542 |   |
| Gain                on sale of mortgage-backed securities available for sale                                               |   |                                             | (454    | ) |   | - |   |
| Gain                on sale of available for sale securities                                                               |   |                                             | (2,029  | ) |   | (9,982 | ) |
| Loss                from early extinguishment of debt                                                                      |   |                                             | -       |   |   | 320 |   |
| Impairment                loss                                                                                             |   |                                             | 207     |   |   | - |   |
| Provision                for loss on loan receivable                                                                       |   |                                             | -       |   |   | 1,266 |   |
| Bad                debt recovery                                                                                           |   |                                             | (32     | ) |   | (1 | ) |
| Interest                receivable on loans                                                                                |   |                                             | (60     | ) |   | 302 |   |
| Net                change in accounts receivable                                                                           |   |                                             | 10,183  |   |   | 2,266 |   |
| Net                change in accounts payable and accrued liabilities                                                      |   |                                             | (3,394  | ) |   | (1,187 | ) |
| Net                change in other assets                                                                                  |   |                                             | (399    | ) |   | 352 |   |
|                                                                                                                       |   |                                             |    |   |   |   |   |
| Net                cash provided by operating activities                                                                   |   |                                             | 20,120  |   |   | 17,932 |   |
|                                                                                                                       |   |                                             |    |   |   |   |   |
| **Cash                flows from investing activities**                                                                    |   |                                             |    |   |   |   |   |
| Investments                in real estate                                                                                  |   |                                             | (1,764  | ) |   | (8,318 | ) |
| Proceeds                from repayments of mortgage-backed securities available for                sale                    |   |                                             | 78,318  |   |   | 20,277 |   |
| Return                of equity on equity investments                                                                      |   |                                             | -       |   |   | 10,000 |   |
| Investment                in equity investments                                                                            |   |                                             | (5,087  | ) |   | (53,226 | ) |
| Investment                in preferred equity investment                                                                   |   |                                             | (3,923  | ) |   | (17,669 | ) |
| Proceeds                from preferred equity investments                                                                  |   |                                             | 20,179  |   |   | 10,155 |   |
| Purchase                of available for sale securities                                                                   |   |                                             | (5,055  | ) |   | (3,171 | ) |
| Proceeds                from sale of available for sale securities                                                         |   |                                             | 57,699  |   |   | 21,169 |   |
| Increase                in restricted cash held in escrows                                                                 |   |                                             | (6      | ) |   | (1,248 | ) |
| Issuance                and acquisition of loans receivable                                                                |   |                                             | (4,846  | ) |   | (2,986 | ) |
| Collection                of loans receivable                                                                              |   |                                             | 1,147   |   |   | 64,242 |   |
|                                                                                                                       |   |                                             |    |   |   |   |   |
| Net                cash provided by investing activities                                                                   |   |                                             | 136,662 |   |   | 39,225 |   |

----

| **WINTHROP                REALTY TRUST**                 |
|----------------------------------------------------------|
| **FORM                10-Q - JUNE 30, 2008**             |
|                                                     |
| **CONSOLIDATED                STATEMENTS OF CASH FLOWS** |
| **(Unaudited)**                                          |
| (In                thousands)                            |
| (Continued                from previous page)            |

|                                                                                                     |   | **For the Six Months Ended** |    |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                                                     |   | **June 30, **                          |    |
|                                                                                                     |   |   **2008**                             |    |   **2007** |   |
|                                                                                                     |   |                                             |    |   |   |
| **Cash                flows from financing activities**                                                  |   |                                             |    |   |   |   |   |
| Repayment                of borrowings under repurchase agreements                                       |   | $                                                | (75,175 | ) | $ | (19,869 | ) |
| Proceeds                from mortgage loans payable                                                      |   |                                             | 463     |   |   | 51,646 |   |
| Restricted                cash held in escrows                                                           |   |                                             | 60      |   |   | (175 | ) |
| Principal                payments of mortgage loans payable                                              |   |                                             | (2,260  | ) |   | (45,182 | ) |
| Payments                of loans payable                                                                 |   |                                             | -       |   |   | (30,004 | ) |
| Deferred                financing costs                                                                  |   |                                             | (24     | ) |   | (887 | ) |
| Contribution                by minority interests                                                        |   |                                             | -       |   |   | 879 |   |
| Distribution                to minority interests                                                        |   |                                             | -       |   |   | (21,321 | ) |
| Dividends                paid on Common Shares                                                           |   |                                             | (20,659 | ) |   | (11,777 | ) |
| Issuance                of Common Shares through dividend reinvestment plan                              |   |                                             | 2,477   |   |   | 2,085 |   |
| Issuance                of Common Shares through rights offering                                         |   |                                             | 37,002  |   |   | - |   |
|                                                                                                     |   |                                             |    |   |   |   |   |
| Net                cash used in financing activities                                                     |   |                                             | (58,116 | ) |   | (74,605 | ) |
|                                                                                                     |   |                                             |    |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                      |   |                                             | 98,666  |   |   | (17,448 | ) |
| Cash                and cash equivalents at beginning of period                                          |   |                                             | 36,654  |   |   | 89,463 |   |
| Cash                and cash equivalents at end of period                                                |   | $                                                | 135,320 |   | $ | 72,015 |   |
|                                                                                                     |   |                                             |    |   |   |   |   |
| **Supplemental                Disclosure of Cash Flow Information**                                      |   |                                             |    |   |   |   |   |
|                                                                                                     |   |                                             |    |   |   |   |   |
| Interest                paid                                                                             |   | $                                                | 14,324  |   | $ | 14,881 |   |
|                                                                                                     |   |                                             |    |   |   |   |   |
| Taxes                paid                                                                                |   | $                                                | 94      |   | $ | 280 |   |
|                                                                                                     |   |                                             |    |   |   |   |   |
| **Supplemental                Disclosure of Non-Cash Investing and Financing                Activities** |   |                                             |    |   |   |   |   |
|                                                                                                     |   |                                             |    |   |   |   |   |
| Dividends                accrued on Common Shares                                                        |   | $                                                | 5,091   |   | $ | 3,941 |   |
|                                                                                                     |   |                                             |    |   |   |   |   |
| Capital                expenditures accrued                                                              |   | $                                                | 423     |   | $ | 236 |   |
|                                                                                                     |   |                                             |    |   |   |   |   |
| Conversion                of Series B-1 Preferred Shares into Common Shares                              |   | $                                                | 11,603  |   | $ | - |   |

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

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

*Consolidation      of Variable Interest Entities”*

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Earnings      Per Share*
* *
* *
*Participating      Securities and the Two Class Method Under FASB Statement No. 128 Earnings Per      Share*

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

|                                                                                                        |   | Three Months EndedJune 30, |    | Six Months Ended June 30,  |   |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|---------|-----------------------------------------------------|--------|
|                                                                                                        |   |  2008                           |    | 2007                                                |   | 2008 |   | 2007 |   |
| Basic                                                                                                       |   |                                      |    |                                                |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations                                                     |   | $                                         | (24,104 | )                                                   | $      | 12,730 |   | $ | (17,851 | ) | $ | 21,380 |   |
| Allocation                of undistributed earnings to Series B-1                                           |   |                                      |    |                                                |   |   |   |   |  |   |   |   |   |
| Preferred                Shares                                                                             |   |                                      | -       |                                                |   | (2,012 | ) |   | - |   |   | (3,001 | ) |
| Income                from discontinued operations                                                          |   |                                      | 47      |                                                |   | 46 |   |   | 106 |   |   | 97 |   |
| Net                income (loss) applicable to Common Shares for                earnings per share purposes |   | $                                         | (24,057 | )                                                   | $      | 10,764 |   | $ | (17,745 | ) | $ | 18,476 |   |
|                                                                                                        |   |                                      |    |                                                |   |   |   |   |   |   |   |   |   |
| Basic                weighted-average Common Shares                                                         |   |                                      | 72,819  |                                                |   | 65,661 |   |   | 69,950 |   |   | 65,590 |   |
|                                                                                                        |   |                                      |    |                                                |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations                                                     |   | $                                         | (0.33   | )                                                   | $      | 0.16 |   | $ | (0.25 | ) | $ | 0.28 |   |
| Income                from discontinued operations                                                          |   |                                      | -       |                                                |   | - |   |   | - |   |   | - |   |
| Net                income (loss) per Common Share                                                           |   | $                                         | (0.33   | )                                                   | $      | 0.16 |   | $ | (0.25 | ) | $ | 0.28 |   |
|  Diluted                                                                                               |   |                                      |    |                                                |   |   |   |   |   |   |   |   |   |
|  Diluted                                                                                               |   |                                      |    |                                                |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations                                                     |   | $                                         | (24,104 | )                                                   | $      | 12,730 |   | $ | (17,851 | ) | $ | 21,380 |   |
| Allocation                of undistributed earnings to Series B-1 Preferred Shares                          |   |                                      | -       |                                                |   | (2,012 | ) |   | - |   |   | (3,001 | ) |
| Income                from discontinued operations                                                          |   |                                      | 47      |                                                |   | 46 |   |   | 106 |   |   | 97 |   |
| Net                income (loss) applicable to Common Shares                                                |   |                                      |    |                                                |   |   |   |   |   |   |   |   |   |
| for                earnings per share purposes                                                              |   | $                                         | (24,057 | )                                                   | $      | 10,764 |   | $ | (17,745 | ) | $ | 18,476 |   |
|                                                                                                        |   |                                      |    |                                                |   |   |   |   |   |   |   |   |   |
| Basic                weighted-average Common Shares                                                         |   |                                      | 72,819  |                                                |   | 65,661 |   |   | 69,950 |   |   | 65,590 |   |
| Convertible                Preferred Shares (1)                                                             |   |                                      | -       |                                                |   | - |   |   | - |   |   | - |   |
| Stock                options (2)                                                                            |   |                                      | -       |                                                |   | 66 |   |   | - |   |   | 66 |   |
| Diluted                weighted-average Common Shares                                                       |   |                                      | 72,819  |                                                |   | 65,727 |   |   | 69,950 |   |   | 65,656 |   |
|                                                                                                        |   |                                      |    |                                                |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations                                                     |   | $                                         | (0.33   | )                                                   | $      | 0.16 |   | $ | (0.25 | ) | $ | 0.28 |   |
| Income                from discontinued operations                                                          |   |                                      | -       |                                                |   | - |   |   | - |   |   | - |   |
| Net                income (loss) per Common Share                                                           |   | $                                         | (0.33   | )                                                   | $      | 0.16 |   | $ | (0.25 | ) | $ | 0.28 |   |

|   | (1) | The                Trust’s Series B-1 Preferred Shares were anti-dilutive for the three and                six months ended June 30, 2008 and 2007 and are not included in the                weighted average shares outstanding for the calculation of diluted                earnings per share. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The                Trust’s stock options were anti-dilutive for the three and six months                ended June 30, 2008 and are not included in the weighted average                shares                outstanding for the calculation of diluted earnings per                share. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Business      Combinations*

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

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

*Noncontrolling      Interests in Consolidated Financial Statements - an Amendment of ARB No.      51*

*Disclosures      about Derivative Instruments and Hedging Activities*

*Determination        of the Useful Life of Intangible Assets *
*Goodwill        and Other Intangible Assets*
*Business        Combinations, *

*Accounting        for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion        (Including Partial *
*Accounting        for Convertible Debt and Debt Issued with Stock Purchase        Warrants*

*Determining        Whether Instruments Granted in Share-Based Payment Transactions Are        Participating Securities *

| **3.** | **Fair                Value Measurement** |
|--------|-------------------------------------------|

*Fair      Value Measurements” *

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **3.** | **Fair                Value Measurement                (Continued)** |
|--------|----------------------------------------------------------------------|

*Cash      Equivalents*

*Available      for Sale Securities*

*Derivative      Financial Instruments*

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **3.** | **Fair                    Value Measurement                    (Continued)** |
|--------|------------------------------------------------------------------------------|

*Derivative      Financial Instruments (Continued)*

|                                            |   | Quoted Prices in Active Markets forIdentical Assets andLiabilities (Level 1) |    | Significant OtherObservable Inputs (Level 2) |   | Significant Unobservable Inputs (Level 3) |   |
|-------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|---------|------------------------------------------------------------------|--------|---------------------------------------------------------------|--------|
|                                            |   |                                                                                                                      |    |                                                             |   |                                                          |   |
| **Assets**                                      |   |                                                                                                                      |    |                                                             |   |                                                          |   |   |   |   |
| Cash                equivalents                 |   | $                                                                                                                         | 128,321 |                                                             | $      | -                                                             |   | $ | - |   |
| Available                for sale securities    |   | $                                                                                                                         | 1,065   |                                                             | $      | -                                                             |   | $ | - |   |
|                                            |   |                                                                                                                      |    |                                                             |   |                                                          |   |   |   |   |
| **Liabilities**                                 |   |                                                                                                                      |    |                                                             |   |                                                          |   |   |   |   |
| Derivative                financial instruments |   | $                                                                                                                         | -       |                                                             | $      | 348                                                           |   | $ | - |   |

| **4.** | **Acquisitions,                Loan Originations, Dispositions and Financings** |
|--------|---------------------------------------------------------------------------------|

| **5.** | **Preferred                Equity Investments**  |
|--------|-------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **5.** | **Preferred                Equity Investments** **(Continued)** |
|--------|----------------------------------------------------------------------|

|                                                      |   | As of         |    | As of                  |   |
|-----------------------------------------------------------|--------|-------------------------|---------|-----------------------------|--------|
|                                                      |   | June 30, 2008 |    | December 31, 2007 |   |
|                                                      |   |                    |    |                        |   |
| Condensed                Balance Sheet                    |   |                    |    |                        |   |   |   |
| Investment                in real estate, net             |   | $                       | 157,987 |                        | $      | 168,755 |   |
| Prepaid                expenses and deposits in escrow    |   |                    | 9,485   |                        |   | 8,446 |   |
| Cash                and cash equivalents                  |   |                    | 1,666   |                        |   | 3,290 |   |
| Receivables                and other assets               |   |                    | 29,245  |                        |   | 32,469 |   |
|                                                      |   |                    |    |                        |   |   |   |
| Total                Assets                               |   | $                       | 198,383 |                        | $      | 212,960 |   |
|                                                      |   |                    |    |                        |   |   |   |
| Nonrecourse                mortgage debt                  |   |                    | 272,870 |                        | $      | 278,868 |   |
| Other                liabilities                          |   |                    | 24,859  |                        |   | 28,159 |   |
|                                                      |   |                    |    |                        |   |   |   |
| Total                Liabilities                          |   |                    | 297,729 |                        |   | 307,027 |   |
|                                                      |   |                    |    |                        |   |   |   |
| Partners'                Deficit                          |   |                    | (99,346 | )                           |   | (94,067 | ) |
|                                                      |   |                    |    |                        |   |   |   |
| Total                Liabilities and Partners' Deficit    |   | $                       | 198,383 |                        | $      | 212,960 |   |
|                                                      |   |                    |    |                        |   |   |   |
| On                the Trust's Consolidated Balance Sheet: |   |                    |    |                        |   |   |   |
| Preferred                Equity Investment (1)            |   | $                       | 56,218  |                        | $      | 74,573 |   |

|  | (1) | Includes                capitalized acquisition cost of $774 and $812 at June 30, 2008 and                December 31, 2007,                respectively. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **5.** | **Preferred                Equity Investments (Continued)**  |
|--------|-------------------------------------------------------------------|

|                                                      |   | For the Three Months Ended |   | For the Six Months Ended |   |
|-----------------------------------------------------------|--------|------------------------------------------------|--------|----------------------------------------------|--------|
|                                                      |   | June 30,                                  |   | June 30,                           |   | June 30, |   | June 30, |   |
|                                                      |   | 2008                                           |   | 2007                                         |   | 2008 |   | 2007 |   |
|                                                      |   |                                           |   |                                         |   |   |   |   |   |
| Condensed                Statements of Operations         |   |                                           |   |                                         |   |   |   |   |   |   |   |   |   |
| Revenue                                                   |   | $                                              | 15,771 |                                         | $      | 13,569 |   | $ | 31,268 |   | $ | 27,452 |   |
| Operating                expenses                         |   |                                           | (7,276 | )                                            |   | (8,230 | ) |   | (15,395 | ) |   | (14,903 | ) |
| Interest                expense                           |   |                                           | (4,530 | )                                            |   | (3,321 | ) |   | (8,721 | ) |   | (7,051 | ) |
| Real                estate taxes                          |   |                                           | (2,569 | )                                            |   | (2,562 | ) |   | (5,138 | ) |   | (5,056 | ) |
| Depreciation                and amortization              |   |                                           | (3,056 | )                                            |   | (2,272 | ) |   | (6,164 | ) |   | (5,283 | ) |
| Other                expenses, net                        |   |                                           | (687   | )                                            |   | (641 | ) |   | (1,317 | ) |   | (1,251 | ) |
| Loss                from continuing operations            |   |                                           | (2,347 | )                                            |   | (3,457 | ) |   | (5,467 | ) |   | (6,092 | ) |
|                                                      |   |                                           |   |                                         |   |   |   |   |   |   |   |   |   |
| Discontinued                operations                    |   |                                           |   |                                         |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued operations |   |                                           | 457    |                                         |   | (1,498 | ) |   | (590 | ) |   | (1,948 | ) |
| Gain                on sale of property                   |   |                                           | 9,389  |                                         |   | - |   |   | 12,733 |   |   | 26,628 |   |
| Income                (loss) from discontinued operations |   |                                           | 9,846  |                                         |   | (1,498 | ) |   | 12,143 |   |   | 24,680 |   |
|                                                      |   |                                           |   |                                         |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                          |   | $                                              | 7,499  |                                         | $      | (4,955 | ) | $ | 6,676 |   | $ | 18,588 |   |
|                                                      |   |                                           |   |                                         |   |   |   |   |   |   |   |   |   |
| On                the Trust's Consolidated                |   |                                           |   |                                         |   |   |   |   |   |   |   |   |   |
| Statement                of Operations and                |   |                                           |   |                                         |   |   |   |   |   |   |   |   |   |
| Comprehensive                Income:                      |   |                                           |   |                                         |   |   |   |   |   |   |   |   |   |
| Equity                in earnings (loss) of Preferred     |   |                                           |   |                                         |   |   |   |   |   |   |   |   |   |
| Equity                Investment                          |   | $                                              | (912   | )                                            | $      | 1,247 |   | $ | 1,418 |   | $ | 7,397 |   |

| **6.** | **Equity                Investments**  |
|--------|---------------------------------------------|

|                                                   |   | Concord Debt Holdings, LLC |    | Sealy Northwest Atlanta, LP |   | Sealy Airpark \Nashville LP |   | Lex-WinAcquisition LLC |   | Total  |   |
|--------------------------------------------------------|--------|-------------------------------------------|---------|--------------------------------------------|--------|--------------------------------------------|--------|-----------------------------|--------|--------|--------|
|                                                   |   |                                      |    |                                       |   |                                       |   |                        |   |   |   |
| Equity                investments at December 31, 2007 |   | $                                         | 155,461 |                                       | $      | 4,755                                      |   | $                           | 8,372  |   | $      | 10,887 |   | $ | 179,475 |   |
| Contributions                                          |   |                                      | 5,087   |                                       |   | -                                          |   |                        | -      |   |   | - |   |   | 5,087 |   |
| Distributions/return                of capital         |   |                                      | (4,600  | )                                          |   | (343                                       | )      |                        | (359   | )      |   | (674 | ) |   | (5,976 | ) |
| Equity                in other comprehensive loss      |   |                                      | 4,285   |                                       |   | -                                          |   |                        | -      |   |   | - |   |   | 4,285 |   |
| Equity                in loss                          |   |                                      | (16,857 | )                                          |   | (236                                       | )      |                        | (550   | )      |   | (878 | ) |   | (18,521 | ) |
|                                                   |   |                                      |    |                                       |   |                                            |   |                        |   |   |   |   |   |   |   |   |
| Equity                investments, June 30, 2008       |   | $                                         | 143,376 |                                       | $      | 4,176                                      |   | $                           | 7,463  |   | $      | 9,335 |   | $ | 164,350 |   |

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **6.** | **Equity                Investments (Continued)**  |
|--------|---------------------------------------------------------|

*Concord      Debt Holdings, LLC*

*Accounting      for Certain Investments in Debt and Equity Securities,” *

|                                                       |   | As of         |      | As of                  |   |
|------------------------------------------------------------|--------|-------------------------|-----------|-----------------------------|--------|
|                                                       |   | June 30, 2008 |      | December 31, 2007 |   |
|                                                       |   |                    |      |                        |   |
| Condensed                Balance Sheets                    |   |                    |      |                        |   |   |   |
| Cash                and restricted cash                    |   | $                       | 30,366    |                        | $      | 19,094 |   |
| Real                estate debt investments                |   |                    | 909,176   |                        |   | 952,035 |   |
| Available                for sale securities, net          |   |                    | 136,312   |                        |   | 188,073 |   |
| Other                assets                                |   |                    | 12,916    |                        |   | 12,770 |   |
|                                                       |   |                    |      |                        |   |   |   |
| Total                assets                                |   | $                       | 1,088,770 |                        | $      | 1,171,972 |   |
|                                                       |   |                    |      |                        |   |   |   |
| Repurchase                agreements                       |   |                    | 427,858   |                        |   | 472,324 |   |
| Collateralized                debt obligations             |   |                    | 362,450   |                        |   | 376,650 |   |
| Accounts                payable and other liabilities      |   |                    | 11,652    |                        |   | 11,974 |   |
| Minority                interest                           |   |                    | 102       |                        |   | 102 |   |
| Accumulated                other comprehensive loss        |   |                    | (8,210    | )                           |   | (16,780 | ) |
| Members'                capital                            |   |                    | 294,918   |                        |   | 327,702 |   |
|                                                       |   |                    |      |                        |   |   |   |
| Total                liabilities and members' capital      |   | $                       | 1,088,770 |                        | $      | 1,171,972 |   |
|                                                       |   |                    |      |                        |   |   |   |
| On                the Trust's Consolidated Balance Sheets: |   |                    |      |                        |   |   |   |
| Equity                investment in venture                |   | $                       | 143,376   |                        | $      | 155,461 |   |

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **6.** | **Equity                Investments (Continued)**  |
|--------|---------------------------------------------------------|

*Concord      Debt Holdings, LLC (Continued)*

|                                                             |   | For the Three Months Ended |    | For the Six Months Ended |   |
|------------------------------------------------------------------|--------|------------------------------------------------|---------|----------------------------------------------|--------|
|                                                             |   | June 30,                                  |    | June 30,                                |   | June 30, |   | June 30,  |   |
|                                                             |   | 2008                                           |    | 2007                                         |   | 2008 |   | 2007 |   |
|                                                             |   |                                           |    |                                         |   |   |   |   |   |
| Condensed                Statements of Operations                |   |                                           |    |                                         |   |   |   |   |   |   |   |   |   |
| Interest                and other income                         |   | $                                              | 17,170  |                                         | $      | 17,050 |   | $ | 37,209 |   | $ | 28,204 |   |
| Interest                expense                                  |   |                                           | (7,958  | )                                            |   | (9,940 | ) |   | (18,811 | ) |   | (16,609 | ) |
| Impairment                loss on available for sale securities  |   |                                           | (50,438 | )                                            |   | - |   |   | (55,816 | ) |   | - |   |
| Provision                for loan loss                           |   |                                           | (2,200  | )                                            |   | - |   |   | (2,200 | ) |   | - |   |
| Gain                on extinguishment of debt                    |   |                                           | 2,552   |                                         |   | - |   |   | 7,702 |   |   | - |   |
| General                and administrative                        |   |                                           | (983    | )                                            |   | (1,460 | ) |   | (1,791 | ) |   | (2,430 | ) |
|                                                             |   |                                           |    |                                         |   |   |   |   |   |   |   |   |   |
| Net                income (loss) before minority interest        |   |                                           | (41,857 | )                                            |   | 5,650 |   |   | (33,707 | ) |   | 9,165 |   |
|                                                             |   |                                           |    |                                         |   |   |   |   |   |   |   |   |   |
| Minority                interest                                 |   |                                           | (6      | )                                            |   | - |   |   | (6 | ) |   | - |   |
|                                                             |   |                                           |    |                                         |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                 |   | $                                              | (41,863 | )                                            | $      | 5,650 |   | $ | (33,713 | ) | $ | 9,165 |   |
|                                                             |   |                                           |    |                                         |   |   |   |   |   |   |   |   |   |
| On                the Trust's Consolidated                       |   |                                           |    |                                         |   |   |   |   |   |   |   |   |   |
| Statement                of Operations and Comprehensive Income: |   |                                           |    |                                         |   |   |   |   |   |   |   |   |   |
| Equity                in earnings (loss) of equity investment    |   | $                                              | (20,933 | )                                            | $      | 2,825 |   | $ | (16,857 | ) | $ | 4,582 |   |

----

**WINTHROP        REALTY TRUST **

**FORM        10-Q JUNE 30, 2008**

**NOTES        TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **6.** | **Equity                Investments (Continued)**  |
|--------|---------------------------------------------------------|

*Concord      Debt Holdings, LLC (Continued)*

|                                                                                                                                                                                                                                                                                                                                                                |   |   |    | June 30, 2008 |   | December 31, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|-------------------------|--------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                |   | Line   |    | Debt Carrying      |   | Collateral                  |   | Debt Carrying |   | Collateral |   |
|                                                                                                                                                                                                                                                                                                                                                                |   | Amount |    | Value                   |   | Carrying Value         |   | Value |   | Carrying Value |   |
|                                                                                                                                                                                                                                                                                                                                                                |   |   |    |                    |   |                        |   |   |   |   |   |
| Repurchase                  agreement with Column Financial, Inc. as counter-party, expiration                  March                  30, 2009, renewable monthly, interest is variable based on one                  month LIBOR                  plus 85 to 135 basis points, weighted average of 3.52% and 5.84%,                  respectively. (2) (4) (5)    |   | $      | 350,000 |                    | $      | 265,296                     |   | $ | 369,923 |   | $ | 308,508 |   | $ | 412,561 |   |
|                                                                                                                                                                                                                                                                                                                                                                |   |   |    |                    |   |                        |   |   |   |   |   |   |   |   |   |   |
| Repurchase                  agreement with Bear Stearns Funding, Inc. as counter-party, expiration                  November 15, 2008, renewable monthly, interest is variable based                  on one                  month LIBOR plus 85 to 115 basis points, weighted average of 3.28%                  and                  5.49%, respectively. (2) (4) |   |   | 150,000 |                    |   | 28,952                      |   |   | 36,271 |   |   | 48,710 |   |   | 68,671 |   |
|                                                                                                                                                                                                                                                                                                                                                                |   |   |    |                    |   |                        |   |   |   |   |   |   |   |   |   |   |
| Repurchase                  agreement with Greenwich Capital Financial Properties, matures                  on December                  30, 2012, interest is variable based on 1-month LIBOR rate plus                  1%,                  weighted average of 3.47% and 5.85%, respectively. (1)                                                               |   |   | -       |                    |   | 59,613                      |   |   | 70,764 |   |   | 59,613 |   |   | 70,146 |   |
|                                                                                                                                                                                                                                                                                                                                                                |   |   |    |                    |   |                        |   |   |   |   |   |   |   |   |   |   |
| Repurchase                  agreement with Greenwich Capital Financial Properties, matures                  on December                  15, 2008, interest is based on 1-month LIBOR rate plus 1%, weighted                  average of 3.48% and 5.90%, respectively. (1)                                                                                         |   |   | -       |                    |   | 36,016                      |   |   | 51,452 |   |   | 39,079 |   |   | 55,827 |   |
|                                                                                                                                                                                                                                                                                                                                                                |   |   |    |                    |   |                        |   |   |   |   |   |   |   |   |   |   |
| Repurchase                  agreement with Column Financial Inc., matures on March 9, 2009,                  interest                  is variable based on 1-month LIBOR rate plus 1%, weighted average                  of 3.48%                  and 5.95%, respectively. (1) (3)                                                                                |   |   | -       |                    |   | 15,981                      |   |   | 25,565 |   |   | 16,414 |   |   | 25,270 |   |
|                                                                                                                                                                                                                                                                                                                                                                |   |   |    |                    |   |                        |   |   |   |   |   |   |   |   |   |   |
| Revolving                  credit facility with KeyBank National Association, matures on March                  7,                  2010, interest is variable based on 1-month LIBOR rate plus 175                  to 225                  basis points, weighted average of 4.66% at June 30, 2008                                                               |   |   | 100,000 |                    |   | 22,000                      |   |   | 30,456 |   |   | - |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                |   |   |    |                    |   |                        |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                |   | $      | 600,000 |                    | $      | 427,858                     |   | $ | 584,431 |   | $ | 472,324 |   | $ | 632,475 |   |

|  | (1) | Repurchase                facilities cover specific loan assets and may not be used for any                other                loan assets. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | Repurchase                facilities may be used for multiple loan assets and loan securities                subject to the repurchase counterparty’s consent. Repurchase                counterparties have advised that no additional advances will be made                except, if at all, in connection with loan assets or debt securities                acquired from the repurchase                counterparty. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | Concord                may extend for up to three one-year                extensions. |
|--|-----|---------------------------------------------------------------------------------------|

|  | (4) | Interest                rate is based on type of loan asset or loan security for which financing                is provided. Weighted average interest rate at June 30, 2008 on the                Column                repurchase facility was 3.52% and on the Bear Stearns repurchase                facility                was 3.28%. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (5) | Concord                may extend for two additional years so long as the outstanding balance                is                reduced to $200 million and 55% leverage by March 30,                2009. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **6.** | **Equity                Investments (Continued)**  |
|--------|---------------------------------------------------------|

*Concord      Debt Holdings, LLC (Continued)*

*Collateralized      Debt Obligations*

|                                                                                                                                                                                                                                                                                                                                                     |   | June 30, 2008 |    | December 31, 2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|---------|-----------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                     |   | Debt                    |    | Collateral                  |   | Debt |   | Collateral |   |
|                                                                                                                                                                                                                                                                                                                                                     |   | Carrying Value     |    | Par Value              |   | Carrying Value |   | Par Value |   |
| CDO-1                Issued seven investment grade tranches December 21,                2006. Reinvestment period through December 21, 2011. Matures on December                21, 2016. Interest rate variable based on one-month LIBOR; the weighted                average note rate was 2.98% and 5.37%, respectively |   | $                       | 362,450 |                        | $      | 464,893 |   | $ | 376,650 |   | $ | 464,601 |   |

*Lex-Win      Acquisition, LLC*

| **7.** | **Debt** |
|--------|----------|

|                                        |   |     |                    | Spread Over |   | Interest Rate as of |   | Balance as of |   | Balance as of     |   |
|---------------------------------------------|--------|----------|-------------------------|------------------|--------|------------------------------------|--------|-------------------------|--------|-----------------------------|--------|
|                                        |   | Maturity |                    | LIBOR/Prime      |   | June 30, 2008            |   | June 30, 2008 |   | December 31, 2007 |   |
| Mortgage Loans                Payable  |   |     |                    |             |   |                               |   |                    |   |                        |   |   |   |   |   |   |
| Fixed                Interest Rate:         |   |     |                    |             |   |                               |   |                    |   |                        |   |   |   |   |   |   |
|                                        |   |     |                    |             |   |                               |   |                    |   |                        |   |   |   |   |   |   |
| Amherst,                NY                  |   |     | October 2013       |             |   | —                            |   |                    | 5.65   | %                           | $      | 17,097 |   | $ | 17,276 |   |
| Indianapolis, IN                       |   |     | April 2015         |             |   | —                            |   |                    | 5.82   | %                           |   | 4,416  |   |   | 4,447  |   |
| Houston, TX                            |   |     | April 2016         |             |   | —                            |   |                    | 6.49   | %                           |   | 68,452  |   |   | 69,801  |   |
| Andover, MA                            |   |     | February 2011      |             |   | —                            |   |                    | 6.60   | %                           |   | 6,447  |   |   | 6,503  |   |
| S. Burlington, VT                 |   |     | February 2011      |             |   | —                            |   |                    | 6.60   | %                           |   | 2,763  |   |   | 2,787  |   |
| Chicago, IL                            |   |     | March 2016         |             |   | —                            |   |                    | 5.75   | %                           |   | 21,516  |   |   | 21,600  |   |
| Lisle, IL                              |   |     | June 2016          |             |   | —                            |   |                    | 6.26   | %                           |   | 24,577  |   |   | 24,600  |   |
| Lisle, IL                              |   |     | March 2017         |             |   | —                            |   |                    | 5.55   | %                           |   | 5,600  |   |   | 5,600  |   |
| Kansas City, KS                   |   |     | June 2012          |             |   | —                            |   |                    | 7.04   | %                           |   | 6,356  |   |   | 5,893  |   |
| Orlando, FL                            |   |     | July 2017          |             |   | —                            |   |                    | 6.40   | %                           |   | 39,826  |   |   | 40,034  |   |
|                                        |   |     |                    |             |   |                               |   |                    |   |                        |   |   |   |   |   |   |
| Variable Interest Rate:           |   |     |                    |             |   |                               |   |                    |   |                        |   |   |   |   |   |   |
|                                        |   |     |                    |             |   |                               |   |                    |   |                        |   |   |   |   |   |   |
| Various                                     |   |     | June 2009 (2) |             |   | LIBOR + 1.75             | %      |                    | (1     | )                           |   | 28,578  |   |   | 28,884  |   |
| Chicago, IL                            |   |     | March 2009         |             |   | Prime + 0.50             | %      |                    | 5.50   | %                           |   | 9,500  |   |   | 9,500  |   |
|                                        |   |     |                    |             |   |                               |   |                    |   |                        |   |   |   |   |   |   |
| Total Mortgage Loans Payable |   |     |                    |             |   |                               |   |                    |   |                        | $      | 235,128 |   | $ | 236,925 |   |

|  | (1) | As                a result of the Trust entering into an interest rate swap agreement                in the                notional amount of $26,000, the Trust has effectively                converted the floating interest rate to a fixed rate of 5.80% through                December, 2009. The remaining principal amount of $2,578 remains                variable                at LIBOR plus 1.75% (which equated to 4.50% at June 30,                2008). |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (2) | The                Trust has two one-year extension options which would extend the maturity                date to June 30, 2011. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **8.** | **Revolving                Line of Credit** |
|--------|---------------------------------------------|

| **9.** | **Hedge                Instruments**  |
|--------|--------------------------------------------|

| Maturity                     |   | Swap Rate |   | Notional Amount of Hedge |   | Cost of Hedge  |   | Estimated Fair Value/Carrying Value |   | Change in Unrealized Loss on Settled Swap |   | Gross UnrealizedIncome For the Three Months Ended June 30, 2008 |   | Gross Unrealized Loss for the SixMonths EndedJune 30, 2008 |   |
|------------------------------|--------|----------------|--------|-----------------------------------------|--------|--------------------------|--------|----------------------------------------------------|--------|-------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------|--------|
|                         |   |           |   |                                    |   |                     |   |                                               |   |                                                                    |   |                                                                                                         |   |                                                                                               |   |
| December                2009 |   |           | 4.05   | %                                       | $      | 26,000                (1 | )      | $                                                  | -      |                                                                    | $      | (348                                                                                                         | )      | $                                                                                                  | (75    | ) | $ | 401 |   | $ | (220 | ) |

|   | (1) | represents                a swap agreement related to the KeyBank loan collateralized by the                Finova                portfolio. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

| **10.** | **Common                Shares of Beneficial                Interest** |
|---------|------------------------------------------------------------------------|

| Date of Issuance |   | Number of Shares Issued |      | Price per Share |   | Type of Offering |   |
|----------------------------|--------|----------------------------------------|-----------|---------------------------|--------|----------------------------|--------|
|                       |   |                                   |      |                      |   |                       |   |
| 1/15/08                    |   |                                   | 321,539   |                      | $      | 5.07                       |   |   | DRIP(1 | ) |
| 4/15/08                    |   |                                   | 205,132   |                      | $      | 4.13                       |   |   | DRIP |   |
| 5/15/08                    |   |                                   | 8,845,036 |                      | $      | 4.27                       |   |   | Rights                Offering(2 | ) |

|  | (1) | The                Trust’s Dividend Reinvestment and Stock Purchase                Plan |
|--|-----|-----------------------------------------------------------------------------------------------|

|   | (2) | Rights                offering pursuant to which each holder of Common Shares and Series                B-1                Preferred Shares received one basic subscription right for every                ten                Common Shares owned, or in the case of Series B-1 Preferred Shares,                one                basic subscription right for every ten Common Shares issuable upon                conversion of such Series B-1 Preferred                Shares. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **11.** | **Related-Party                Transactions**  |
|---------|-----------------------------------------------------|

|                                   |   | Three Months Ended June 30, |   | Six Months Ended June 30, |   |
|----------------------------------------|--------|-------------------------------------------------|--------|-----------------------------------------------|--------|
|                                   |   | 2008                                            |   | 2007                                          |   | 2008 |   | 2007 |   |
|                                   |   |                                            |   |                                          |   |   |   |   |   |
| Asset                Management (1)    |   | $                                               | 1,388  |                                          | $      | 1,311 |   | $ | 2,711 |   | $ | 2,477 |   |
| Property                Management (2) |   |                                            | 65     |                                          |   | 68 |   |   | 126 |   |   | 130 |   |

|   | (1) | Payable                to FUR Advisors. Amounts reflect fees before application of creditsdescribed                below. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

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

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **11.** | **Related-Party                Transactions (Continued)**  |
|---------|-----------------------------------------------------------------|

| **12.** | **Business                Segments**  |
|---------|--------------------------------------------|

|                                           |   | June 30, |    | December 31, |   |
|------------------------------------------------|--------|---------------|---------|-------------------|--------|
|                                           |   | 2008          |    | 2007              |   |
| **Identifiable                Assets**         |   |          |    |              |   |
| Operating                Properties            |   | $             | 287,065 |              | $      | 293,241 |   |
| Loan                Assets and Loan Securities |   |          | 215,850 |              |   | 320,671 |   |
| REIT                Equity Interests           |   |          | 10,399  |              |   | 71,353 |   |
| Other                (1)                       |   |          | 156,244 |              |   | 60,182 |   |
| **Total                Assets**                |   | $             | 669,558 |              | $      | 745,447 |   |

|  | (1) | Includes                  cash and cash equivalents. |
|--|-----|------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **12.** | **Business                Segments (Continued)** |
|---------|--------------------------------------------------|

**Business      Segments (in thousands)**

|                                                                                            |   |  For the Three Months Ended |    | For the Six Months Ended |   |
|-------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|---------|----------------------------------------------|--------|
|                                                                                            |   |  June 30,                                  |    |  June 30,                          |   |  June 30,  |   |  June 30,  |   |
|                                                                                            |   |  2008                                           |    |  2007                                   |   |  2008 |   |  2007 |   |
| **Operating                Properties**                                                         |   |                                            |    |                                    |   |    |   |    |   |
| Rents                and reimbursements                                                         |   | $                                                    | 10,987  |                                         | $      | 11,285 |   | $ | 21,651 |   | $ | 20,832 |   |
| Operating                expenses                                                               |   |                                                 | (1,802  | )                                            |   | (1,176 | ) |   | (3,669 | ) |   | (2,339 | ) |
| Real                estate taxes                                                                |   |                                                 | (675    | )                                            |   | (447 | ) |   | (1,414 | ) |   | (867 | ) |
| Loss                on extinguishment of debt                                                   |   |                                                 | -       |                                         |   | (320 | ) |   | - |   |   | (320 | ) |
| Equity                in loss of Sealy Northwest Atlanta, L.P.                                  |   |                                                 | (98     | )                                            |   | (98 | ) |   | (236 | ) |   | (263 | ) |
| Equity                in loss of Sealy Airpark Nashville L.P.                                   |   |                                                 | (267    | )                                            |   | (382 | ) |   | (550 | ) |   | (382 | ) |
| Net                operating income                                                             |   |                                                 | 8,145   |                                         |   | 8,862 |   |   | 15,782 |   |   | 16,661 |   |
|                                                                                            |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| **Loan                Assets and Loan Securities**                                              |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| Interest                                                                                        |   |                                                 | 322     |                                         |   | 2,445 |   |   | 828 |   |   | 5,496 |   |
| Equity                in earnings (loss) of preferred equity investment                         |   |                                                 | (912    | )                                            |   | 1,247 |   |   | 1,418 |   |   | 7,397 |   |
| Equity                in earnings (loss) of Concord Debt Holdings, LLC                          |   |                                                 | (20,933 | )                                            |   | 2,825 |   |   | (16,857 | ) |   | 4,582 |   |
| Gain                on sale of mortgage-backed securities                                       |   |                                                 | -       |                                         |   | - |   |   | 454 |   |   | - |   |
| Provision                for loss on loan receivable                                            |   |                                                 | -       |                                         |   | (1,266 | ) |   | - |   |   | (1,266 | ) |
| Net                operating income (loss)                                                      |   |                                                 | (21,523 | )                                            |   | 5,251 |   |   | (14,157 | ) |   | 16,209 |   |
|                                                                                            |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| **REIT                Equity Interests**                                                        |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| Dividends                                                                                       |   |                                                 | 28      |                                         |   | 1,114 |   |   | 55 |   |   | 2,426 |   |
| Gain                on sale of real estate securities                                           |   |                                                 | -       |                                         |   | 9,739 |   |   | 2,029 |   |   | 9,982 |   |
| Equity                in loss of Lex-Win Acquisition, LLC                                       |   |                                                 | (1,035  | )                                            |   | (174 | ) |   | (878 | ) |   | (174 | ) |
| Impairment                loss on available for sale securities                                 |   |                                                 | (107    | )                                            |   | - |   |   | (207 | ) |   | - |   |
| Net                operating income (loss)                                                      |   |                                                 | (1,114  | )                                            |   | 10,679 |   |   | 999 |   |   | 12,234 |   |
|                                                                                            |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| **Net                Operating Income (loss)**                                                  |   |                                                 | (14,492 | )                                            |   | 24,792 |   |   | 2,624 |   |   | 45,104 |   |
|                                                                                            |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| **Less                - Depreciation and Amortization**                                         |   |                                                 | 2,992   |                                         |   | 3,257 |   |   | 6,057 |   |   | 5,875 |   |
|                                                                                            |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| **Less                - Interest Expense**                                                      |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| Operating                Properties                                                             |   |                                                 | 3,660   |                                         |   | 3,656 |   |   | 7,443 |   |   | 7,190 |   |
| Loan                assets and loan securities                                                  |   |                                                 | -       |                                         |   | 1,786 |   |   | 206 |   |   | 3,958 |   |
|                                                                                            |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| **Corporate                Income (Expense)**                                                   |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| Interest                income                                                                  |   |                                                 | 436     |                                         |   | 763 |   |   | 664 |   |   | 2,026 |   |
| Interest                expense                                                                 |   |                                                 | (1,730  | )                                            |   | (1,942 | ) |   | (3,572 | ) |   | (3,883 | ) |
| General                and administrative (1)                                                   |   |                                                 | (1,482  | )                                            |   | (2,024 | ) |   | (3,553 | ) |   | (3,831 | ) |
| State                and local taxes                                                            |   |                                                 | (98     | )                                            |   | (231 | ) |   | (222 | ) |   | (471 | ) |
|                                                                                            |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| Income                (loss) from continuing operations before minority                interest |   |                                                 | (24,018 | )                                            |   | 12,659 |   |   | (17,765 | ) |   | 21,922 |   |
| Minority                interest                                                                |   |                                                 | (86     | )                                            |   | 71 |   |   | (86 | ) |   | (542 | ) |
| Income                (loss) from continuing operations                                         |   |                                                 | (24,104 | )                                            |   | 12,730 |   |   | (17,851 | ) |   | 21,380 |   |
|                                                                                            |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| Income                from discontinued operations                                              |   |                                                 | 47      |                                         |   | 46 |   |   | 106 |   |   | 97 |   |
|                                                                                            |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| **Net                Income (loss)**                                                            |   | $                                                    | (24,057 | )                                            | $      | 12,776 |   | $ | (17,745 | ) | $ | 21,477 |   |
| **Capital                Expenditures**                                                         |   |                                                 |    |                                         |   |   |   |   |   |   |   |   |   |
| Operating                properties                                                             |   | $                                                    | 778     |                                         | $      | 417 |   | $ | 1,607 |   | $ | 676 |   |

|  | (1) | After                credits - See Note 11. |
|--|-----|---------------------------------------------|

| **13.** | **Subsequent                Events** |
|---------|--------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

| **13.** | **Subsequent                Events (Continued)** |
|---------|--------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**ITEM 2.     **MANAGEMENT’S    DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF    OPERATIONS****

**Overview**

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**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

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**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

|                                                            |   | For the Three Months Ended |        | For the Six Months Ended |   |
|-----------------------------------------------------------------|--------|------------------------------------------------|-------------|----------------------------------------------|--------|
|                                                            |   | June 30,2008                              |        | June 30,2007                            |   | June 30,2008 |   | June 30,2007 |   |
|                                                            |   |                                           |        |                                         |   |   |   |   |   |
| Net                  income (loss)                              |   | $                                              | (24,057,000 | )                                            | $      | 12,776,000 |   | $ | (17,745,000 | ) | $ | 21,477,000 |   |
|                                                            |   |                                           |        |                                         |   |   |   |   |   |   |   |   |   |
| Net                  income (loss) per Common Share, basic      |   | $                                              | (0.33       | )                                            | $      | 0.16 |   | $ | (0.25 | ) | $ | 0.28 |   |
|                                                            |   |                                           |        |                                         |   |   |   |   |   |   |   |   |   |
| Net                  income (loss) per Common Share, diluted    |   | $                                              | (0.33       | )                                            | $      | 0.16 |   | $ | (0.25 | ) | $ | 0.28 |   |
|                                                            |   |                                           |        |                                         |   |   |   |   |   |   |   |   |   |
| Net                  cash flow provided by operating activities |   |                                           |             |                                         |   |  |   | $ | 20,120,000 |   | $ | 17,932,000 |   |

|                                            |   | June 30, 2008 |                        | December 31, 2007 |   |
|-------------------------------------------------|--------|-------------------------|-----------------------------|-----------------------------|--------|
|                                            |   |                    |                        |                        |   |
| Total                assets                     |   | $                       | 669,558                ,000 |                        | $      | 745,447,000 |   |
|                                            |   |                    |                        |                        |   |   |   |
| Total                shareholders’ equity |   | $                       | 319,477,000                 |                        | $      | 291,794,000 |   |

|   | · | Received                a $4,600,000 distribution from Concord on April 2,                2008. |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | We                made on April 14, 2008 an additional $3,923,000 mezzanine loan in                our Marc                Realty portfolio to the entity that holds the 180 N. Michigan Property.                The mezzanine loan has similar terms as the other Marc Realty mezzanine                loans except interest on the loan is paid monthly at 8.5%. We continue                to                hold an equity interest in the borrower which entitles us to share in                capital proceeds and, unlike our equity interests in the other Marc                Realty                portfolio borrowers, cash flow. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | One                of the properties in the Marc Realty portfolio, 600 West Jackson,                Chicago,                Illinois, in which we held a 7.65% convertible mezzanine loan and                a                preferred interest, was sold on June 12, 2008 to an unaffiliated                third                party. We received $2,530,000, exclusive of interest, on our original                investment of $1,736,000. Further to this transaction, the selling                entity,                of which we own 60%, made a $1,500,000 second mortgage loan to the                buyer.                The loan bears interest at 6.50%, matures on June 30, 2009, and requires                monthly payments of interest only. In connection with the sale of                the                property, we have received additional equity income totaling $795,000                which has been deferred and will be recognized in earnings upon repayment                of the second mortgage loan made to the                borrower. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**Critical      Accounting Policies and Estimates**

**Recently      Issued Accounting Standards **

**Results      of Operations **

**Results      of Operations - Six Months Ended June 30, 2008 Versus June 30, 2007**

*Net      Earnings (loss)*

*Operating      Properties *

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**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

*Loan      Assets and Loan Securities*

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

*REIT      Equity Interests*

*Corporate      Activities*

*State      Income Taxes*

**Results      of Operations – Three Months Ended June 30, 2008 Versus June 30, 2007**

*Net      Earnings *

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**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

*Operating      Properties *

*Loan      Assets and Loan Securities*

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**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

*REIT      Equity Interests*

*Corporate      Activities*

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**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

*State      Income Taxes*

**Liquidity      and Capital Resources**

*General*

|  | · | cash                and cash equivalents; |
|--|--------|-------------------------------------------|

|  | · | cash                flow from our operating properties; |
|--|--------|---------------------------------------------------------|

|  | · | payments                received from our loan assets and loan                securities; |
|--|--------|-------------------------------------------------------------------------------------------|

|  | · | equity                and debt issuances; |
|--|--------|-------------------------------------------|

|  | · | dividends                received from our ownership of REIT equity                interests; |
|--|--------|-----------------------------------------------------------------------------------------------|

|  | · | distributions                from ventures; and |
|--|--------|-------------------------------------------------|

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

*Cash      Flows*

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

*Equity      Investment in Joint Venture*

*Dividends      *

**Off-Balance      Sheet Investments**

**Concord      Debt Holdings**

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

| Total                Assets              |   | $      | 1,088,770 |   |
|------------------------------------------|--------|--------|-----------|--------|
| Total                Liabilities         |   |   | 802,000   |   |
| Cash                and restricted cash  |   |   | 30,366    |   |
| Interest                and Other Income |   |   | 37,209    |   |
| Interest                Expense          |   |   | 18,811    |   |
| Net                (Loss)                |   |   | (33,713   | )      |

|   | · | acquired                loan assets and loan securities with a stated principal balance of                $5.98                million for $5.94 million with a weighted yield to maturity of 14.3%                and                in July 2008 acquired a loan asset with a stated principal balance                of                $1.49 million for $1.27 million with a weighted yield to maturity                of                13.4%; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | acquired                two classes of securities issued by CDO-1 with a face value of $14.2                million for $6,498,000 resulting in a gain on extinguishment of debt                of                $7.7 million; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | borrowed                an aggregate of $22.0 million which is secured by certain of its                loan                assets; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------|

|   | · | made                $66.5 million in principal payments on its credit                facilities; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | made                aggregate distributions from earnings to its members of $9.2 million,                $4.6                million of which is distributed to us. In addition, in July 2008,                Concord                made a $20.0 distribution of retained earnings, $10.0 million of                which was                paid to us. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

| CDO Loan Assets and Loan Securities June 30, 2008 |   | CDO NotesJune 30, 2008              |    |
|-------------------------------------------------------------------------------------------|--------|----------------------------------------------------|---------|
|                                                                                      |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |
|   DateClosed                                                                    |   |  Par Value ofCDOCollateral (3) |    | WeightedAverageInterestRate |   | WeightedAverageLife (years) |   |   OutstandingCDO Notes (1) |   | WeightedAverageInterestRate |   |   StatedMaturity |   |   EquityValue (2) |   |
|                                                                                      |   |                                               |    |   |   |   |   |   |   |   |   |   |   |   |   |
| 12/21/06                                                                                  |   | $                                                  | 464,893 |   |   | 5.41 | % |   | 4.10 |   | $ | 362,450 |   |   | 2.98 | % |   | 12/2016 |   | $ | 102,444 |   |

|  | (1) | Includes                only notes held by third parties. |
|--|-----|-----------------------------------------------------------|

|  | (2) | Concord’s                potential loss is limited to the equity value of its investment in                CDO-1                of which we would bear 50% of such loss. |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (3) | Consists                of loan assets with a par value of $337,915 and loan securities with                a par                value of $126,978. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| Industry                 |   | %                of Par Value |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   |                          |   |
| Hospitality              |   |                          | 30.59  | % |
| Office                   |   |                          | 44.15  | % |
| Mixed                Use |   |                          | 5.10   | % |
| Retail                   |   |                          | 4.43   | % |
| Industrial               |   |                          | 7.09   | % |
| Multi-family             |   |                          | 8.64   | % |
|                     |   |                          | 100.00 | % |

|                                                                              |   |  Carrying                Value(1) |    |   Par                Value |   | Allocation                by Investment Type |   | Fixed                Rate: Average Yield |   | Floating                Rate: Average Spread over LIBOR |   |
|-----------------------------------------------------------------------------------|--------|----------------------------------------|---------|--------------------------------------|--------|----------------------------------------------|--------|------------------------------------------|--------|---------------------------------------------------------|--------|
|                                                                              |   |                                   |    |                                 |   |                                         |   |                                     |   |                                                    |   |
| Whole                loans, floating rate                                         |   | $                                      | 20,000  |                                 | $      | 20,000                                       |   |                                     | 4.30   | %                                                       |   | - |   |   | 195                bps |   |
| Whole                loans, fixed rate                                            |   |                                   | 44,796  |                                 |   | 44,900                                       |   |                                     | 9.66   | %                                                       |   | 6.45 | % |   | - |   |
| Subordinate                interests in whole loans,                floating rate |   |                                   | 108,805 |                                 |   | 108,864                                      |   |                                     | 23.42  | %                                                       |   | - |   |   | 292                bps |   |
| Subordinate                interests in whole loans,                fixed rate    |   |                                   | 24,813  |                                 |   | 27,536                                       |   |                                     | 5.92   | %                                                       |   | 7.47 | % |   | - |   |
| Mezzanine                loans, floating rate                                     |   |                                   | 81,410  |                                 |   | 81,410                                       |   |                                     | 17.51  | %                                                       |   | - |   |   | 218                bps |   |
|                                                                              |   |                                   |    |                                 |   |                                         |   |                                     |   |                                                    |   |   |   |   |   |   |
| Mezzanine                loans, fixed rate                                        |   |                                   | 53,172  |                                 |   | 55,205                                       |   |                                     | 11.87  | %                                                       |   | 7.46 | % |   | - |   |
|                                                                              |   |                                   |    |                                 |   |                                         |   |                                     |   |                                                    |   |   |   |   |   |   |
| Loan                securities, floating rate                                     |   |                                   | 78,989  |                                 |   | 104,544                                      |   |                                     | 22.49  | %                                                       |   | - |   |   | 196                bps |   |
| Loan                securities, fixed rate                                        |   |                                   | 12,662  |                                 |   | 22,434                                       |   |                                     | 4.83   | %                                                       |   | 5.97 | % |   | - |   |
|                                                                              |   |                                   |    |                                 |   |                                         |   |                                     |   |                                                    |   |   |   |   |   |   |
| Total/Average                                                                     |   | $                                      | 424,647 |                                 | $      | 464,893                                      |   |                                     | 100.00 | %                                                       |   | 6.96 | % |   | 228                bps |   |

|  | (1) | Net                of unamortized fees and discounts of $6,982 and impairment charges                of                $33,264. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

|  Year                of Maturity (1) |   | Number                of Loan Assets Maturing |   | Carrying                Value (in thousands) |   |  %                of Total |   |
|-------------------------------------------|--------|-----------------------------------------------|--------|----------------------------------------------|--------|---------------------------------|--------|
|                                      |   |                                          |   |                                         |   |                            |   |
| 2008                                      |   |                                          | 6      |                                         | $      | 120,209                         |   |   | 36.10 | % |
| 2009                                      |   |                                          | 3      |                                         |   | 54,589                          |   |   | 16.39 | % |
| 2010                                      |   |                                          | 4      |                                         |   | 46,669                          |   |   | 14.01 | % |
| 2011                                      |   |                                          | 1      |                                         |   | 20,900                          |   |   | 6.28 | % |
| 2012                                      |   |                                          | 1      |                                         |   | 5,031                           |   |   | 1.51 | % |
| Thereafter                                |   |                                          | 7      |                                         |   | 85,599                          |   |   | 25.71 | % |
|                                      |   |                                          |   |                                         |   |                            |   |   |   |   |
| Total                                     |   |                                          | 22     |                                         | $      | 332,997                         |   |   | 100.00 | % |

|   | (1) | The                calculation of weighted average maturity is based upon the remaining                initial term and does not take into account any maturity extension                periods                or the ability to prepay the investment after a negotiated lock-out                period, which may be available to the borrower. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  Year                of Maturity (1) |   | Number                of Loan Assets Maturing |   | Carrying                Value (in thousands) |   |  %                of Total |   |
|-------------------------------------------|--------|-----------------------------------------------|--------|----------------------------------------------|--------|---------------------------------|--------|
|                                      |   |                                          |   |                                         |   |                            |   |
| 2008                                      |   |                                          | -      |                                         | $      | -                               |   |   | - |   |
| 2009                                      |   |                                          | -      |                                         |   | -                               |   |   | - |   |
| 2010                                      |   |                                          | 1      |                                         |   | 11,251                          |   |   | 3.38 | % |
| 2011                                      |   |                                          | 11     |                                         |   | 207,527                         |   |   | 62.32 | % |
| 2012                                      |   |                                          | 3      |                                         |   | 28,620                          |   |   | 8.59 | % |
| Thereafter                                |   |                                          | 7      |                                         |   | 85,599                          |   |   | 25.71 | % |
|                                      |   |                                          |   |                                         |   |                            |   |   |   |   |
| Total                                     |   |                                          | 22     |                                         | $      | 332,997                         |   |   | 100.00 | % |

|   | (1) | The                calculation of weighted average maturity is based upon the remaining                term,                assuming the exercise of all extension options available to the                borrower. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   Description      |   | Par                Value |    | Amortized                Cost |   | Gross                Unrealized Gain (Loss) |   | Impairment                Loss |   | Carrying                Value |   |
|------------------------------|--------|--------------------------|---------|-------------------------------|--------|---------------------------------------------|--------|--------------------------------|--------|-------------------------------|--------|
|                         |   |                     |    |                          |   |                                        |   |                           |   |                          |   |
| Floating                rate |   | $                        | 104,544 |                          | $      | 104,492                                     |   | $                              | -      |                          | $      | (25,504 | ) | $ | 78,989 |   |
| Fixed                rate    |   |                     | 22,434  |                          |   | 20,422                                      |   |                           | -      |                          |   | (7,760 | ) |   | 12,662 |   |
| Total                        |   | $                        | 126,978 |                          | $      | 124,914                                     |   | $                              | -      |                          | $      | (33,264 | ) | $ | 91,651 |   |

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

| Rating |   | Par                Value      |    | Percentage |   |
|--------|--------|-------------------------------|---------|------------|--------|
|   |   | (in                thousands) |    |       |   |
|   |   |                          |    |       |   |
| BBB+   |   | $                             | 9,000   |       |   | 7.09 | % |
| BBB    |   |                          | 25,585  |       |   | 20.15 | % |
| BBB-   |   |                          | 49,500  |       |   | 38.98 | % |
| BB+    |   |                          | 21,000  |       |   | 16.54 | % |
| BB     |   |                          | 14,893  |       |   | 11.73 | % |
| B+     |   |                          | 7,000   |       |   | 5.51 | % |
| Total  |   | $                             | 126,978 |       |   | 100.00 | % |

|                                                                              |   | Carrying                Value (1) |    | Par                Value      |   | Allocation                by Investment Type |   | Fixed                Rate: Average Yield |   | Floating                Rate: Average Spread over                LIBOR |   |
|-----------------------------------------------------------------------------------|--------|-----------------------------------|---------|-------------------------------|--------|----------------------------------------------|--------|-----------------------------------------------|--------|------------------------------------------------------------------------|--------|
|                                                                              |   | (in                thousands)     |    | (in                thousands) |   |                                         |   |                                          |   |                                                                   |   |
|                                                                              |   |                              |    |
|                                                                              |   |                              |    |                          |   |                                         |   |                                          |   |                                                                   |   |
| Whole                loans, floating rate                                         |   | $                                 | 116,994 |                          | $      | 116,994                                      |   |                                          | 17.56  | %                                                                      |   | - |   |   | 190                bps |   |
| Whole                loans, fixed rate                                            |   |                              | 23,300  |                          |   | 25,300                                       |   |                                          | 3.8    | %                                                                      |   | 10.61 | % |   | - |   |
| Subordinate                interests in whole loans,                floating rate |   |                              | 160,478 |                          |   | 161,300                                      |   |                                          | 24.21  | %                                                                      |   | - |   |   | 214                bps |   |
| Subordinate                interests in whole loans,                fixed rate    |   |                              | 14,241  |                          |   | 15,750                                       |   |                                          | 2.36   | %                                                                      |   | 8.63 | % |   | - |   |
| Mezzanine                loans, floating rate                                     |   |                              | 186,966 |                          |   | 190,717                                      |   |                                          | 28.62  | %                                                                      |   | - |   |   | 215                bps |   |
|                                                                              |   |                              |    |                          |   |                                         |   |                                          |   |                                                                   |   |   |   |   |   |   |
| Mezzanine                loans, fixed rate                                        |   |                              | 74,201  |                          |   | 77,695                                       |   |                                          | 11.66  | %                                                                      |   | 6.76 | % |   | - |   |
|                                                                              |   |                              |    |                          |   |                                         |   |                                          |   |                                                                   |   |   |   |   |   |   |
| Loan                securities, floating rate                                     |   |                              | 44,661  |                          |   | 78,533                                       |   |                                          | 11.79  | %                                                                      |   | - |   |   | 141                bps |   |
|                                                                              |   |                              |    |                          |   |                                         |   |                                          |   |                                                                   |   |   |   |   |   |   |
| Total/Average                                                                     |   | $                                 | 620,841 |                          | $      | 666,289                                      |   |                                          | 100.00 | %                                                                      |   | 7.83 | % |   | 194                bps |   |

|  | (1) | Net                of unamortized fees and discounts of $9,667, unfunded commitments                of                $18,800, $2,200 of loan loss reserves and impairment charges of                $33,580. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

| Year                of Maturity (1) |   | Number                of LoanAssets                Maturing |   | Carrying                Value(in                thousands) |   |  %                of Total |   |
|-------------------------------------|--------|-------------------------------------------------------------|--------|------------------------------------------------------------|--------|---------------------------------|--------|
|                                |   |                                                        |   |                                                       |   |                            |   |
| 2008                                |   |                                                        | 6      |                                                       | $      | 129,555                         |   |   | 22.49 | % |
| 2009                                |   |                                                        | 14     |                                                       |   | 226,301                         |   |   | 39.28 | % |
| 2010                                |   |                                                        | 3      |                                                       |   | 84,293                          |   |   | 14.63 | % |
| 2011                                |   |                                                        | 1      |                                                       |   | 6,300                           |   |   | 1.09 | % |
| 2012                                |   |                                                        | 3      |                                                       |   | 73,021                          |   |   | 12.67 | % |
| Thereafter                          |   |                                                        | 7      |                                                       |   | 56,710                          |   |   | 9.84 | % |
|                                |   |                                                        |   |                                                       |   |                            |   |   |   |   |
| Total                               |   |                                                        | 34     |                                                       | $      | 576,180                         |   |   | 100.00 | % |

|  | (1) | The                calculation of weighted average maturity is based upon the remaining                initial term and does not take into account any maturity extension                periods                or the ability to prepay the investment after a negotiated lock-out                period, which may be available to the borrower. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Year                of Maturity (1) |   | Number                of LoanAssets                Maturing |   | Carrying                Value(in                thousands) |   |  %                of Total |   |
|-------------------------------------|--------|-------------------------------------------------------------|--------|------------------------------------------------------------|--------|---------------------------------|--------|
|                                |   |                                                        |   |                                                       |   |                            |   |
| 2008                                |   |                                                        | 1      |                                                       | $      | 19,000                          |   |   | 3.30 | % |
| 2009                                |   |                                                        | 2      |                                                       |   | 29,226                          |   |   | 5.07 | % |
| 2010                                |   |                                                        | 1      |                                                       |   | 7,285                           |   |   | 1.26 | % |
| 2011                                |   |                                                        | 11     |                                                       |   | 170,053                         |   |   | 29.51 | % |
| 2012                                |   |                                                        | 12     |                                                       |   | 293,906                         |   |   | 51.02 | % |
| Thereafter                          |   |                                                        | 7      |                                                       |   | 56,710                          |   |   | 9.84 | % |
|                                |   |                                                        |   |                                                       |   |                            |   |   |   |   |
| Total                               |   |                                                        | 34     |                                                       | $      | 576,180                         |   |   | 100.00 | % |

|   | (1) | The                calculation of weighted average maturity is based upon the remaining                term,                assuming the exercise of all extension options available to the                borrower. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Industry                 |   | %                of Par Value |   |
|--------------------------|--------|-------------------------------|--------|
|                     |   |                          |   |
| Hospitality              |   |                          | 44.48  | % |
| Office                   |   |                          | 42.48  | % |
| Mixed                Use |   |                          | 5.70   | % |
| Retail                   |   |                          | -      |   |
| Industrial               |   |                          | 0.26   | % |
| Multi-family             |   |                          | 7.08   | % |
|                     |   |                          | 100.00 | % |

----

**WINTHROP        REALTY TRUST **

**FORM        10-Q JUNE 30, 2008**

| Description                  |   |  Par Value |   |  AmortizedCost |   |  GrossUnrealizedGain (Loss) |   |  RealizedLoss |   |  CarryingValue |   |
|------------------------------|--------|----------------------|--------|---------------------|--------|---------------------------------------|--------|--------------------|--------|---------------------|--------|
|                         |   |            |   |           |   |                             |   |          |   |           |   |
| Floating                rate |   | $                    | 78,533 |                | $      | 78,241                                |   | $                  | -      |                | $      | (33,580 | ) | $ | 44,661 |   |
| Total                        |   | $                    | 78,533 |                | $      | 78,241                                |   | $                  | -      |                | $      | (33,580 | ) | $ | 44,661 |   |

| Rating |   | Par                Value |   | Percentage |   |
|--------|--------|--------------------------|--------|------------|--------|
|   |   |                     |   |       |   |
| AA-    |   | $                        | 1,381  |       |   | 1.76 | % |
| A-     |   |                     | 3,242  |       |   | 4.13 | % |
| BBB+   |   |                     | 25,094 |       |   | 31.95 | % |
| BBB    |   |                     | 8,513  |       |   | 10.84 | % |
| BBB-   |   |                     | 22,611 |       |   | 28.79 | % |
| BB+    |   |                     | 15,085 |       |   | 19.21 | % |
| B      |   |                     | 1,133  |       |   | 1.44 | % |
| B-     |   |                     | 1,474  |       |   | 1.88 | % |
| Total  |   | $                        | 78,533 |       |   | 100.00 | % |

**Marc      Realty **

----

**WINTHROP        REALTY TRUST **

**FORM        10-Q JUNE 30, 2008**

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

|                                                                                                              |   | Change                in LIBOR |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|--------|
|                                                                                                              |   | -3%                            |   | -2% |   | -1% |   | 1% |   | 2% |   | 3% |   |
|                                                                                                              |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Change                in consolidated interest expense                                                            |   |                           | (362   | ) |   | (242 | ) |   | (121 | ) |   | 121 |   |   | 242 |   |   | 362 |   |
| Pro                rata share of change in interest expense of debt on non-consolidated                entity (1) |   |                           | (8,806 | ) |   | (5,870 | ) |   | (2,935 | ) |   | 2,935 |   |   | 5,870 |   |   | 8,806 |   |
| Minority                partners share                                                                            |   |                           | 114    |   |   | 76 |   |   | 38 |   |   | (38 | ) |   | (76 | ) |   | (114 | ) |
| Proforma                (increase) decrease in net income                                                         |   | $                              | (9,054 | ) | $ | (6,036 | ) | $ | (3,018 | ) | $ | 3,018 |   | $ | 6,036 |   | $ | 9,054 |   |

|  | (1) | Represents                our pro rata share of a change in interest expense in our investment                -                Concord |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------|

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**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

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

**Other      Matters**

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**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

**PART      II. OTHER INFORMATION**

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

|   | · | Electing                seven trustees to the Board of Trustees to serve for a term of one                year. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | Ratifying                PricewaterhouseCoopers LLP as the Trust’s independent registered public                accounting firm for 2008. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| Trustee                             |   | Shares Voted For |       | Shares Voted Against |   |
|-------------------------------------|--------|----------------------------|------------|--------------------------------|--------|
|                                |   |                       |       |                           |   |
| Michael                L. Ashner    |   |                       | 57,933,336 |                           |   | 2,639,293 |   |
| Arthur                Blasberg, Jr. |   |                       | 58,042,594 |                           |   | 2,530,035 |   |
| Peter                Braverman      |   |                       | 58,221,848 |                           |   | 2,350,781 |   |
| Talton                Embry         |   |                       | 58,057,323 |                           |   | 2,515,306 |   |
| Howard                Goldberg      |   |                       | 58,053,883 |                           |   | 2,518,746 |   |
| Thomas                F. McWilliams |   |                       | 58,217,758 |                           |   | 2,354,871 |   |
| Steven                Zalkind       |   |                       | 58,059,256 |                           |   | 2,513,373 |   |

| Shares                Voted For |   | Shares                Voted Against |   | Shares                Abstaining |
|---------------------------------|--------|-------------------------------------|--------|----------------------------------|
|                            |   |                                |   |                             |
| 60,140,049                      |   | 383,879                             |   | 48,702                           |

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

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**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

|                                 | Winthrop                Realty Trust |
|--------------------------------------|--------------------------------------|
|                                 |                                 |   |
| Date:                August 11, 2008 | By:                                  | /s/                Michael L. Ashner |
|                                 |                                 | Michael                L. Ashner |
|                                 |                                 | Chief                Executive Officer |
|                                 |                                 |   |
| Date:                August 11, 2008 | By:                                  | /s/                Thomas C. Staples |
|                                 |                                 | Thomas                C. Staples |
|                                 |                                 | Chief                Financial Officer |

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**WINTHROP      REALTY TRUST **

**FORM      10-Q JUNE 30, 2008**

| Exhibit |   | Description                                                                                                                                                                                                                                                                                                                                                |   | PageNumber |
|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 3.1     |   | Amended                and Restated Declaration of Trust as of December 15, 2005 - Incorporated                by reference to Exhibit 3.2 to the Trust’s Annual Report on Form 10-K for                the year ended December 31, 2005                                                                                                             |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 3.2     |   | Bylaws                of the Trust as restated on November 8, 2005 - Incorporated by reference                to Exhibit 3.1 to the Trust’s Form 8-K filed November 10,                2005.                                                                                                                                                         |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 3.3     |   | Amendment                to Bylaws adopted January 10, 2007 - Incorporated by reference to                Exhibit                3.1 to the Trust’s Form 8-K filed January 16, 2007                                                                                                                                                                  |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 3.4     |   | Amendment                to Bylaws adopted February 27, 2007 - Incorporated by reference to                Exhibit                3.1 to the Trust’s Form 8-K filed March 2, 2007                                                                                                                                                                    |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 4.1     |   | Form                of certificate for Shares of Beneficial Interest - Incorporated by                reference to the Trust’s Registration Statement on Form S-3 No.                33-2818.                                                                                                                                                        |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 4.2     |   | Warrant                to purchase 500,000 shares of Beneficial Interest of Trust - Incorporated                by reference to Exhibit 4(l) to the Trust’s Annual Report on Form 10-K for                the year ended December 31, 1998.                                                                                                          |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 4.3     |   | Agreement                of Limited Partnership of WRT Realty L.P., dated as of January 1,                2005 -                Incorporated by reference to Exhibit 4.1 to the Trust’s Form 8-K filed                January 4, 2005.                                                                                                               |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 4.4     |   | Amended                and Restated Certificate of Designations for Series B-1 Cumulative                Convertible Redeemable Preferred Shares of Beneficial Interest (“Series                B-1 Certificate of Designations”) - Incorporated by reference to Exhibit                4.1 to the Trust’s Form 8-K filed June 21, 2005. |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 4.5     |   | Amendment                No. 1 to Series B-1 Certificate of Designations - Incorporated by                reference to Exhibit 4.1 to the Trust’s Form 8-K filed November 13,                2007.                                                                                                                                                   |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 10.1    |   | Indemnification                Agreement with Neil Koenig, dated as of April 29, 2002 - Incorporated                by                reference to Exhibit 10.Q to the Trust’s Annual Report on Form 10-K for                the year ended December 31, 2002.                                                                                       |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 10.2    |   | Stock                Purchase Agreement between the Trust and FUR Investors, LLC, dated                as of                November 26, 2003, including Annex A thereto, being the list of Conditions                to the Offer - Incorporated by reference to Exhibit 10.1 to the Trust’s                Form 8-K filed December 1, 2003.        |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 10.3    |   | Amended                and Restated Advisory Agreement dated November 7, 2005, between the                Trust                and FUR Advisors LLC - Incorporated by reference to Exhibit 10.6                to the                Trust’s Form 8-K filed November 10, 2005.                                                                       |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 10.4    |   | Amendment                No. 1 to Amended and Restated Advisory Agreement dated May 17, 2006,                between the Trust and FUR Advisors - Incorporated by reference to                Exhibit                10.6 to the Trust’s Quarterly report on Form 10-Q for the period ended                June 30, 2006.                            |   | -          |
|    |   |                                                                                                                                                                                                                                                                                                                                                       |   |       |
| 10.5    |   | Exclusivity                Services Agreement between the Trust and Michael L. Ashner - Incorporated                by reference to Exhibit 10.4 to the Trust’s Form 8-K filed December 1,                2003.                                                                                                                                      |   | -          |

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**WINTHROP        REALTY TRUST **

**FORM        10-Q JUNE 30, 2008**

| 10.6   |   | Amendment                No. 1 to Exclusivity Agreement, dated November 7, 2005 - Incorporated                by                reference to Exhibit 10.7 to the Trust’s Form 8-K filed November 10,                2005.                                                                                                                                                                                                                                                                                                                      |   | -      |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.7   |   | Covenant                Agreement between the Trust and FUR Investors, LLC - Incorporated                by                reference to Exhibit 10.5 to the Trust’s Form 8-K filed December 1,                2003.                                                                                                                                                                                                                                                                                                                            |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.8   |   | 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 - Incorporated by reference                to                Exhibit 10.1 to the Trust’s Form 8-K filed November 23,                2004.                                           |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.9   |   | 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 - Incorporated by reference                to                Exhibit 10.11 to the Trust’s Quarterly report on Form 10-Q for the period                ended June 30, 2006. |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.10  |   | Form                of Mortgage, dated November 18, 2004, in favor of Keybank National                Association - Incorporated by reference to Exhibit 10.2 to the Trust’s                Form 8-K filed November 23, 2004.                                                                                                                                                                                                                                                                                                                  |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.11  |   | Ownership                Interest Pledge Agreement, dated November 18, 2004, from FT-Fin                Acquisition LLC to Keybank National Association - Incorporated by                reference to Exhibit 10.3 to the Trust’s Form 8-K filed November 23,                2004.                                                                                                                                                                                                                                                             |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.12  |   | 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 - Incorporated by reference to Exhibit 10.4 to the Trust’s Form 8-K                filed November 23, 2004.                                                                                                                                                                                              |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.13  |   | 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 - Incorporated by reference to                Exhibit                10.5 to the Trust’s Form 8-K filed November 23, 2004.                                                                                                                                                               |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.14  |   | Amended                and Restated Omnibus Agreement, dated March 16, 2005, among Gerald                Nudo,                Laurence Weiner and First Union REIT L.P. - Incorporated by reference                to                Exhibit 10.1 to the Trust’s Form 8-K filed March 18, 2005                                                                                                                                                                                                                                                 |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.15  |   | Securities                Purchase Agreement, dated February 16, 2005, between First Union                Real                Estate Equity and Mortgage Investments and Kimco Realty Corporation                -                Incorporated by reference to Exhibit 10 to the Trust’s Form 8-K filed                February 18, 2005.                                                                                                                                                                                                      |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.16  |   | 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 - Incorporated by reference                to Exhibit 10.1 to the Trust’s Form 8-K filed March 3,                2005.                                                                                                                                                        |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 10.17  |   | 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 - Incorporated by reference                to                Exhibit 10.1 to the Trust’s Form 8-K filed June 21, 2005.                                                                                                                                                            |   | -      |

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**WINTHROP        REALTY TRUST **

**FORM        10-Q JUNE 30, 2008**

| 10.18  |   | Amended                and Restated Registration Rights Agreement, dated June 20, 2005,                between                First Union Real Estate Equity and Mortgage Investments and the Investors                named therein - Incorporated by reference to Exhibit 10.2 to the                Trust’s                Form 8-K filed June 21, 2005.                                       |   | -      |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.19  |   | Amended                and Restated Investor Rights Agreement, dated June 20, 2005, between                First                Union Real Estate Equity and Mortgage Investments and the Investors                named                therein - Incorporated by reference to Exhibit 10.3 to the Trust’s Form                8-K filed June 21, 2005.                                           |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.20  |   | Securities                Purchase Agreement, dated November 7, 2005, between the Trust and                Vornado                Investments L.L.C. (“Vornado”) - Incorporated by reference to Exhibit 10.1                to the Trust’s Form 8-K filed November 10, 2005.                                                                                                          |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.21  |   | Registration                Rights Agreement, dated November 7, 2005, between the Trust and Vornado                -                Incorporated by reference to Exhibit 10.2 to the Trust’s Form 8-K filed                November 10, 2005.                                                                                                                                                     |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.22  |   | Securities                Purchase Agreement, dated November 7, 2005, between Newkirk Realty                Trust,                Inc. and the Trust - Incorporated by reference to Exhibit 10.3 to                the                Trust’s Form 8-K filed November 10, 2005.                                                                                                                   |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.23  |   | Acquisition                Agreement, dated November 7, 2005, between Newkirk Realty Trust,                Inc. and                the Trust - Incorporated by reference to Exhibit 10.4 to the Trust’s Form                8-K filed November 10, 2005.                                                                                                                                          |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.24  |   | Registration                Rights Agreement, dated November 7, 2005, between Newkirk Realty                Trust,                Inc. and the Trust - Incorporated by reference to Exhibit 10.5 to                the                Trust’s Form 8-K filed November 10, 2005.                                                                                                                   |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.25  |   | 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 - Incorporated by reference                to                Exhibit 10.10 to the Trust’s Form 8-K filed November 10,                2005. |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.26  |   | Loan                Agreement, dated as of December 16, 2005, between WRT Realty L.P.                and                KeyBank, National Association - Incorporated by reference to Exhibit                10.1                to the Trust’s Form 8-K filed December 21, 2005.                                                                                                                  |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.27  |   | Guaranty                from Winthrop Realty Trust in favor of KeyBank, National Association-                Incorporated by reference to Exhibit 10.2 to the Trust’s Form 8-K filed                December 21, 2005.                                                                                                                                                                            |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.28  |   | Agreement                between Michael L. Ashner and Winthrop Realty Trust dated July 23,                2006 -                Incorporated by reference to Exhibit 10.2 to the Trust’s Form 8-K filed                July 25, 2006.                                                                                                                                                            |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.29  |   | Winthrop                Realty Trust 2007 Long Term Stock Incentive Plan - Incorporated by                reference to the Trust’s Definitive Proxy Statement on Schedule 14A filed                with the Securities and Exchange Commission on March 30,                2007.                                                                                                                  |   | -      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |
| 10.30  |   | Second                Amended and Restated Limited Liability Company Agreement of Concord                Debt                Holdings LLC, dated August 2, 2008, between Lex-Win Concord LLC and                Inland                American (Concord) Sub LLC - Incorporated by reference to Exhibit                10.1 to                the Trust’s Form 8-K filed August 4, 2008           |   | -      |

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**WINTHROP        REALTY TRUST **

**FORM        10-Q JUNE 30, 2008**

| 10.30  |   | Limited                Liability Company Agreement of Lex-Win Concord LLC, dated August                2, 2008,                among WRT Realty L.P., The Lexington Master Limited Partnership and                WRP                Sub-management LLC - Incorporated by reference to Exhibit 10.2 to                the                Trust’s Form 8-K filed August 4, 2008 |   | -      |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 23.1   |   | Consent                of Independent Accounting Firm - PricewaterhouseCoopers                LLP                                                                                                                                                                                                                                                                                    |   | *      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 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.                                                                                                                                                                                                                                                                                              |   | *      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                 |   |   |
| 99.1   |   | Text                of Item 1.01 to the Trust’s Form 8-K filed August 4, 2008                                                                                                                                                                                                                                                                                                  |   | *      |

----